Laying the foundation for a smart factory:
A key step towards sustainable production
Authors: Mika Kuhmonen, Lita Nordén
Estimated reading time: 7 minutes
A smart factory is designed to be inherently productive and resource-efficient, playing a crucial role in the sustainable manufacturing of end products. The basis of intelligence is formed by all the equipment and technologies it contains, skilled users, and the digital solutions that connect the two.
A smart factory extends beyond digitalization; it is rooted in physical equipment, with digital solutions enhancing human-machine interaction and operations. Its success relies on high-quality design that considers lifecycle requirements from the outset. Merely improving data usage in a poorly designed or mis-sized factory cannot lead to true efficiency.
One of the key functions of smart systems is to enhance resource efficiency, which is vital for the profitable operation of production facilities. Moreover, resource efficiency contributes to broader goals of promoting sustainable development.
Engineering as the cornerstone
In the design phase of a smart factory, it is important to consider the entire system (see Figure 1), focusing on material and energy balances, production simulations and optimizations and the impact of various technological choices on waste and efficiency. Success requires conducting techno-economic studies and coordinated multidisciplinary planning, with clear goals for resource efficiency and automation levels established early in the process.
Beyond cost savings, the objectives may include enhancing production quality, increasing flexibility, and improving overall performance. It is also important to recognize that a factory is never truly complete.
Establishing factory fundamentals
To operate effectively, a smart factory must be built on a solid foundation of well-designed components. Intelligence alone does not guarantee a competitive advantage, especially if fundamental issues persist within the operating environment. Effective production control is essential for resource efficiency; when deviations in raw materials or production conditions arise, the smart factory’s production control system can gradually correct these anomalies.
Key digital solutions that enhance efficiency include:
- Predictive maintenance platforms minimize downtime and maximize equipment availability.
- Automation and robotics improve both production efficiency and product quality.
- Machine vision and AI analytics enable faster and more accurate detection of visual defects in quality control.
- System integration facilitates efficient resource allocation, allowing the factory to adapt swiftly to fluctuations in demand, production disruptions, and raw material shortages.
Measuring instruments and sensors gather real-time data for automation and IT systems, which is then analyzed by data analytics to provide actionable insights for informed decision-making. While some operations run automatically within defined parameters, others rely on user input, making accurate, real-time data vital for maintaining efficiency.
Intelligence alone does not guarantee a competitive advantage, especially if fundamental issues persist within the operating environment.
Decisions in the implementation phase
Final decisions are made in the implementation phase, where careful planning ensures successful outcomes. This preparation establishes the foundation for acquiring the right technology and support services, with detailed strategies for construction, installation, and commissioning.
In procurement, it is vital to clearly outline resource efficiency targets and the integration of smart technologies. During the bidding process, proposals are evaluated for alignment with these requirements, and the supplier’s capability to deliver effective technology cost-effectively plays a significant role.
As the implementation phase concludes, production operations should be fine-tuned incrementally to achieve peak efficiency. Ultimately, the factory’s success hinges on seamless collaboration between its physical and digital environments.
Efficient operations are based on Lean principles
Efficient operations realize the potential of the design phase. Even in a smart factory, Lean production principles serve as the foundation for material flows and operational activities. The resource efficiency mindset behind Lean provides a framework for developing both the factory and its operational methods. Once the factory’s fundamentals are in place, efficient data utilization helps maintain resource efficiency in a changing business environment.
To fully harness the benefits of technology, a deep understanding of processes and their potential is key. During the design phase, various process modeling and scenario simulations lay the foundation for implementing Lean principles. Simulation helps identify the most efficient, resource-saving solutions while avoiding costly and time-consuming real-world trials.
To fully harness the benefits of technology, a deep understanding of processes and their potential is key.
Watch the video on the key factors for enhancing a factory’s resource efficiency
Collaboration leads to the best results
Developing a resource-efficient smart factory requires expertise in sustainability, Lean principles, production technology, and digital solutions. It is essential for experts in these areas to understand each other’s fields and collaborate during the design phase, as their integration and collective experience significantly contribute to the project’s success.
With the help of artificial intelligence, the factory learns from experiences, continuously improves processes, and recommends the best production solutions to its users. Nevertheless, the design phase is crucial for maximizing the benefits of a smart factory, as this period profoundly influences its lifecycle impact. Although the initial investment in a smart factory may be higher than that for basic solutions, the long-term benefits – reduced operational costs, improved efficiency, as well as enhanced sustainability – justify the investment.
A stepwise approach to project advancement
When starting a new project, a step-by-step advancement plan is essential for guiding the development process. The key question to consider is whether to construct a production facility that immediately meets the criteria of a smart factory or to pursue this goal through planned incremental steps.
Planning phase
During this phase, the lifecycle costs of the factory should be assessed from both environmental and owner perspectives. Key considerations include:
- The replicability and scalability of the production facility in response to increasing production demands
- The selection of materials and components that comply with the regulations of various countries
- The choice of building and production technologies that meet desired production and resource efficiency standards
- Selecting technologies that minimize maintenance requirements and ensure a long lifecycle
- Designing automation and instrumentation for optimal data collection and equipment control
- Simulating and optimizing process flexibility and quality production capacity across various scenarios
- Enhancing the efficiency of production-related commodities and building services
- Improving internal logistics and material flow
- Ensuring the safety of the environment and employees
- Implementing data security and privacy practices to protect sensitive information
- Adopting sustainable construction practices.
Technology selection for smart production facilities
The capabilities of a smart production facility depend on selecting technologies that align with project objectives:
- Instrumentation: Integrating measurement devices and sensors with the automation system
- Electrification: Incorporating an electrical system into the automation framework to secure power supply for critical functions
- Building Automation: Integrating building automation with the overall automation system to optimize operations
- Automation: Choosing a centralized automation system that enables monitoring and control of all processes from a single location, with capabilities for system integration, real-time data analysis, and analytics
- IT Infrastructure: Establishing a segmented infrastructure that includes virtualized servers, access control, cybersecurity measures, and network traffic monitoring.
Advanced level solutions
At the advanced level, value-added solutions that enhance efficiency and operational effectiveness include:
- Integrating and automating equipment and production lines
- Maximizing the use of robotics solutions
- Creating a comprehensive data collection environment across the factory (data lake, big data)
- Employing process- or operation-specific analytics and optimization tools (AI) to boost factory performance
- Utilizing blockchain technology for decentralized, immutable accounting that enhances supply chain transparency and reliability
- Implementing a digital twin perspective for enhanced simulations
- Developing virtual training environments
- Utilizing XR solutions to facilitate operations and maintenance.
Mika Kuhmonen
D.Sc. (Tech)
Mika has extensive global and local experience in production development and factory investments. Currently, Mika works as a Leading Advisor in the Industry Business Area, focusing on the concept and feasibility phases of investments.
mika.kuhmonen@elomatic.com
Lita Nordén
M.Sc. in Chemical Engineering
Lita has a distinguished career in the process industry, with extensive experience in production processes, investment projects, and business and people management. Throughout her career, she has integrated safety, circular economy, and sustainable development into her work. Currently, Lita leads Operational Excellence, focusing on refining internal procedures and driving continuous improvement.
lita.norden@elomatic.com
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