In today’s competitive global markets, it’s not going to be enough for manufacturers to simply maintain the status quo. Lean and tech- enabled manufacturing process is more important than ever. Sharing information between the manufacturing floor and business systems can enable manufacturers to achieve new levels of efficiency. With the industrial Internet of Things (IoT) revolutionizing manufacturing by leveraging intelligent, connected devices in factories, there are even more opportunities to fine-tune operations with better data and process integration.
In a recent survey by Accenture of more than 1,400 global business leaders, 84% confidently asserted that they could create new income streams from implementing IoT solutions. BI Intelligence expects the installed base of manufacturing IoT devices to swell from 237 million in 2015 to 923 million in 2020. By that year, manufacturers will spend approximately $267 billion on the IoT.
Indeed, the anticipated efficiency returns from digitization over the next five years across all major industrial sectors are substantial: nearly 3% in additional revenue and 3.6% in reduced costs per year, according to a recent PwC survey. By proactively leading the digitization effort, industrial manufacturers can earn a growing portion of these gains.
Enterprise resource planning (ERP) solutions like Oracle Technology based Lighthouse ERP are developing solutions that are Industry 4.0 ready. By integrating ERP and manufacturing data for more accurate demand forecasts, companies can reduce inventories by avoiding overproduction.
Since enterprise resource planning (ERP) systems contain information regarding inventory and customer requirements, and manufacturing control & embedded systems (IoT) control operations, integrating the two paradigms could help increase operational efficiency and enable organizations to become more flexible and responsive to customized and changing demands. In addition, real-time information exchange between the business layer and the production layer could help increase overall equipment efficiency (OEE), reduce cycle times, and provide management with greater visibility for improved decision-making.
Areas where integration of Lighthouse ERP and IoT is working wonders are: Accurate Demand Forecast, Seamless Change Orders, Real-time Production Adjustments, Just-in-Time Delivery etc.