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Home » Blogs » Think Tank » Driving Efficiency Gains With IIoT and Connected Applications

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Driving Efficiency Gains With IIoT and Connected Applications

A digital rendering of a purple hand extended outwards, with a blue and purple wrench hovering above the hand

Photo: iStock / sankai

March 13, 2025
Louis Columbus, SCB Contributor

Real-time data collection and analysis are at the heart of the industrial internet of things (IIoT). By continuously monitoring equipment and production processes, manufacturers can detect anomalies, predict equipment failures, and take corrective actions before issues escalate.

In today’s dynamic manufacturing landscape, efficiency is the cornerstone of competitiveness. The IIoT and connected applications offer transformative ways to streamline shop floor operations, enhance productivity and achieve significant cost savings. Through the use of real-time data and advanced analytics, manufacturers can optimize processes and make informed decisions that drive operational excellence. 

The IIoT involves connecting physical industrial assets such as machinery and equipment to the internet, making possible real-time data exchange and analytics. According to Gartner, this provides manufacturers with unprecedented visibility into operations, enabling predictive maintenance, quality control, and enhanced operational efficiency specifically tailored to industrial environments.

The Heart of IIoT

Real-time data collection and analysis are at the heart of the IIoT. By continuously monitoring equipment and production processes, manufacturers can detect anomalies, predict equipment failures, and take corrective actions before issues escalate. Gartner reports that real-time data insights can lead to significant improvements in visibility and control across shop floors, reducing downtime and extending machinery life.

As an example, a automotive parts manufacturer implemented an IIoT-based predictive maintenance system. It monitored critical parameters such as vibration, temperature and pressure, enabling the company to predict and address potential failures before they occurred. According to Gartner, the company \reduced unplanned downtime by 30% and extended the operational life of their equipment by 15%.

IIoT enables the automation of multiple manufacturing processes. In optimizing resource uses to promote sustainability, IIoT helps manufacturers reduce waste and operational costs. Additionally, improved visibility across the supply chain enhances coordination and efficiency.

A consumer electronics manufacturer that integrated IIoT to monitor and optimize its production line was able to identify bottlenecks and streamline operations, resulting in a 20% increase in production efficiency and a 10% reduction in material waste according to Gartner’s 2023 Hype Cycle for Advanced Technologies for Manufacturers.

Predictive Maintenance and Asset Management

Traditional maintenance strategies, often based on fixed schedules, can lead to unnecessary downtime or unexpected failures. IIoT facilitates predictive maintenance by continuously monitoring equipment conditions and performance. Sensors detect anomalies such as unusual vibrations or temperature changes.

Gartner cites the case of a large-scale food processing company that utilized IIoT sensors to monitor the condition of its refrigeration units. By analyzing the data, it was able to predict failures and schedule maintenance activities more effectively, resulting in a 25% reduction in maintenance costs and a 35% decrease in unplanned downtime.

Maintaining high product quality is essential for any manufacturer. IIoT provides tools to enhance quality control by integrating real-time monitoring with either manufacturing operations management (MOM) or manufacturing execution systems (MES) and enterprise resource planning applications. This helps track production quality at every stage, identifying defects early in the process and reducing reject rates. For instance, a medical device manufacturer reduced its reject rates from 30% to 2% by implementing a real-time monitoring system integrated with its ERP system, as noted by Gartner in a recent report.

IIoT extends beyond the shop floor to the entire supply chain, providing end-to-end visibility. This helps in tracking raw materials, work-in-progress and finished goods in real time, reducing the need for buffer stock and improving order fulfillment. Combining IIoT with technologies like blockchain can further enhance supply chain transparency, ensuring product authenticity and reducing the risk of counterfeiting.

MOM Versus MES

MOM and MES are pivotal in driving efficiency gains in modern manufacturing. MOM encompasses all activities related to manufacturing, including quality control, maintenance and inventory management, while MES specifically focuses on the execution and real-time monitoring of production processes on the shop floor.

MES provides real-time visibility into production activities, helping manufacturers track work-in-progress, monitor equipment status, and ensure compliance with production schedules. It enables manufacturers to identify and address bottlenecks, optimize production schedules, and improve product quality.

A metal forming company integrated MES into its existing MOM system to enhance shop floor operations. As a result, it was able to track production cycles, identify deviations from standard operating parameters, and take corrective actions promptly, resulting in a 20% increase in throughput, and a 15% reduction in scrap rates.

The integration of MES and MOM systems also facilitates predictive maintenance. By continuously monitoring equipment conditions and performance, manufacturers can predict when maintenance is needed and schedule it accordingly.

Challenges of IIoT Implementation

Implementation of IIoT comes with challenges, such as integration with existing infrastructure, data management, and cybersecurity concerns. Manufacturers should adopt scalable IIoT platforms that support diverse protocols and standards. Edge computing can help manage and analyze data locally, reducing latency and bandwidth usage. Strong cybersecurity measures and technologies, such as authentication and encryption, are critical to protecting sensitive data.

A successful implementation strategy involves starting small with pilot projects and scaling up as the organization gains experience and confidence. Gartner suggests it’s also essential to ensure that all stakeholders are on board and understand the benefits and challenges of IIoT.

Future Trends: AI and Digital Twins

The future of IIoT in manufacturing will be shaped by advances in artificial intelligence and digital twins. The latter, which are virtual replicas of physical assets, enable real-time monitoring, simulation and optimization of manufacturing processes. Through the integration of AI with IIoT, companies can achieve deeper insights and predictive capabilities.

The integration of IIoT and connected applications is revolutionizing the manufacturing industry. By drawing on real-time data, predictive analytics and advanced automation, manufacturers can optimize operations, improve product quality, and enhance supply chain visibility.

The future of manufacturing is connected, intelligent, and remarkably efficient. IIoT is more than a technological advance; it’s a strategic imperative for achieving long-term competitiveness and success.

Louis Columbus is senior industry marketing manager at DELMIA.

Artificial Intelligence Data Management (Big Data/IoT/Blockchain) Supply Chain Planning & Optimization Business Strategy Alignment Quality & Metrics Supply Chain Security & Risk Mgmt

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