Manufacturing is driving the Industrial Internet, with most of the research- and applications – being focused on this sector. At the heart of this transformation is the Industrial Internet of Things (IIoT).
It’s a core component of Industry 4.0 (the fourth Industrial Revolution) and it’s already being increasingly used in manufacturing a wide variety of products right now.
Across all industrial sectors, nearly 31 percent of production processes and equipment, and 30 percent of non-production processes and equipment (across all manufacturing industries), have some kind of smart device embedded in them, according to SAP.
While the apparel industry has traditionally been reluctant to adopt new technology, the pressure to be faster and cheaper is forcing factory owners to look to technology for solutions. However, the industry is not alone in lagging to implement IoT.
However, IIoT might not be the answer, in the near future.
Cisco has predicted the IoT would be a $19 trillion opportunity by 2019. Now McKinsey & Co. are saying that we might reach $1 trillion by 2026.
The vision of being able to collect data across an entire manufacturing operation and analyze it in real time becomes less attractive when the cost of implementation is revealed.
Too Big To Get Started
The biggest challenge to most manufacturers, especially those who are cash strapped, is that “initiatives with big promise usually come with big price tags and long implementation cycles,” according to Oracle.
While many consultants had bold predictions for the implementation of IIoT, most failed to factor in the enormous changes in mindset required before projects could get needed investment and therefore reach scale, said Oracle. Realizing the benefits of IoT requires a huge capital investment, a hard ask as manufacturers see slowdowns and global uncertainty.
The challenge in implementing IIoT is that most manufacturers still have a lot of legacy equipment that can’t be integrated with new smart equipment. New factories can be built with IIoT in place. For existing manufacturers it can mean completely disrupting decades of systems that are functioning fairly well. Timelines for return on investment can extend to 10 years – something that has little appeal from most CFOs, said Oracle.
Not everyone agrees. According to Ax Control, a supplier of industrial automation, there are multiple avenues available to integrate IIoT connectivity with legacy systems, including the use of parallel gateway systems, video cameras, and edge devices.
Still, unlike traditional manufacturing, IIoT requires connectivity amongst IoT apps, IoT software and IoT endpoints. The system only works if all of these components are in place.
While most companies want to get to ‘optimal’, in reality many have to settle for ‘good enough’.
The Learning Curve
Another hurdle is where managers understand the theoretical value in incorporating smart technologies, but can’t determine exactly how or where to use them in their processes.
Having real-time process data could boost their manufacturing efficiencies, and help improve processes where error or inefficiencies erode profits or reduce speed. If senior managers know how to use it, real-time data can help improve decision making and operations planning.
The key is not only investing in the technology. It’s training management in how to use the information it provides in order for the technology to be useful.
We’re Already Using This – a Little
Millions of garments around the world carry an RFID tag, effectively making them part of the IoT.
Digital threads or fibers are already being embedded in some products for authentication purposes, as well as for theft protection.
Both technologies could be adapted for greater use in the apparel production process. The key is figuring out how to engineer it into processes that need improvement – and the answer will be different for each manufacturer.
