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RESEARCH, ANALYSIS & TRENDS

Building a Smart Factory – Part 2: Defining

the 21st-century smart factories

Smart Factories (also known as Connected How would one recognize a smart factory?
Factories) have many definitions. One way to
define them is a group of technology Usually, a Smart Factory will define by its core func-
innovations. When used together, these tions, which include:
innovations support consolidated, connected, • Digital connectivity across shop floor
and flexible manufacturing processes. The
processes run manufacturing, supply chain, and • Intelligent automation and decision making
related back-office operations.
• Cloud-based data management and analytics
Smart Factories enable machines and people to make
intelligent decisions, which result in automated or hu- Digital connectivity: Smart factories use sensors and
man actions. Some definitions include smart factories other devices to collect production equipment data and
reaching "self-optimizing operations." In these cases, send to the Internet of Things (IoT) via specific proto-
the factory continuously adapts to demand and varia- cols for storage and further analysis. The insights ex-
tions in supply and corrects processes that exceed tol- tracted from the data enable monitoring production,
erances. logistics, and product design processes throughout the
shop floor facility and beyond. This sensor-driven capa-
Another reason to build smart factories is that employ- bility increases the awareness of what is happening at
ees responsible for monitoring and controlling produc- several levels of factory operation. For example, tradi-
tion lines can do so remotely with less human attention. tionally vibration sensors provide alarms that indicate
Factories can now adapt to the workflows in real-time when bearings, motors, or machines need to be shut
by machines communicating with other devices and down. Now the deep insights of the data pattern could
humans. enable predictive maintenance actions that avoid larger

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