Smart Factory; a Concept for Expressing the End Goal of Digitization in Manufacturing

Smart factory is a concept used to describe the application of different combinations of modern technologies to create a hyper-flexible, self-adapting manufacturing capability. A smart factory is nothing but a digital version of a manufacturing facility/plant that uses modern technologies and connected machinery, devices, and production systems to continuously collect and share data. This collected data is then used to inform decisions to improve manufacturing processes as well as address any problems that may arise.

Smart factory boosts both the quality and the productivity of the facility/plant, as well as cuts down the operational cost compared to traditional production systems. The term describes a highly digitalized and connected environment where machines and equipment are capable of improving procedures through automation and self-optimization. Benefits of smart factory also extend to the physical production of goods/functions, such as supply chain logistics, planning, and even product development.

Moreover, the concept of smart factory is considered a crucial outcome of the fourth industrial revolution, i.e. Industry 4.0. Industry 4.0 is a current trend of automation and data exchange in manufacturing technologies, including the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), cloud computing, big data, robotics, and cyber-physical systems. The smart factory can run without human intervention. Smart industry is a synonym for Industry 4.0 within which smart manufacturing de facto fits.

Industry 4.0 technology helps you manage and optimize all aspects of manufacturing processes and supply chain. US manufacturers have been one of the most ardent adopters of Industry 4.0. Moreover, several governments are supporting the use of Industry 4.0. For example, the federal government and the private sector in the U.S. are investing in Industry 4.0 IoT technologies, to increase the American industrial base. Furthermore, the outbreak of COVID-19 (pandemic) has forced the manufacturing industries to re-evaluate their traditional production processes.