January 29, 2024

Armita Rohani

11th Grade

Williamsville East High School

With a new world of technology dominating everyday lives, ranging from iPads and iPhones to the James Webb telescope, devices such as these have caused a remarkable change to societal life—including manufacturing. A Smart Factory system is an interconnected network of machines, communication mechanisms, and computing power that utilizes A.I. technology for data analysis, system improvement, and to drive automatic processes. By integrating machines into a “digitally connected ecosystem,” (Sap.com), Smart Factories can interpret data–by using artificial intelligence, sensors, gateways, and previous data from a business–regarding production and efficiency, and change workflow to optimize performance.

An integral and highly beneficial aspect of Smart Factory is its ability to collect data and create improvements through AI technology. Sensors can warn the “factory hub” when machines are damaged, dangerous, or in need of repair to improve safety conditions, and data collected regarding the rate of production is studied to determine what “systematic pathways” are most efficient in production. According to Systems, Applications, and Products in Data Processing (SAP), “these data sets that can be compared and analyzed present an infinite possibility of combinations to inform digital factory optimization and supply chain forecasting.” This ability allows Smart Factories to implement new workflow pathways that have not been previously used to optimize product production. 

Nonetheless, Smart Factories can also set priorities on products made, and triage items and raw materials based on delayed shipping, or a higher demand for the product itself, causing an increase in production. By utilizing such methods, Smart Factories reduce the amount of waste created while also increasing productivity: “Companies report up to 12% gains in areas like manufacturing output, factory utilization, and labor productivity after they invested in Smart Factory initiatives. Moreover, manufacturers with Smart Factories will likely surpass traditional factories with a 30% higher net labor productivity by 2030” (Deloitte). 

Through A.I. technologies and data assistance, Smart Factories can meet customer satisfaction to a greater extent than other forms of production. “The ability for rapid customization and response to shifting trends means that products are tightly up to date with customer desires. Advanced analysis of system data quickly spots weaknesses or areas for improvement. This leads to improved competitiveness in the market, better product reviews, and fewer costly returns or recalls” (SAP). Not only do Smart Factories meet customer demands on time and provide a higher quality, but the implementation of automated machinery and devices eliminates three out of the five leading causes of workplace injuries.

With benefits, however, there are also disadvantages to using Smart Factory systems. The most notable one is the cost of operation. Installing the machinery-along with the cost of installation–ranges well over $50,000. Heavy reliance on machine work removes a significant amount of job opportunities, as human labor would primarily focus on machine repair and data organization, rather than product assembly. 

Smart Factory is a fast-growing method of mass production and will continue to grow as demand for good quality products made from green sources of energy continues to rise. According to Forbes magazine, in 2017 just 43% of manufacturers had Smart Factory initiatives underway; by 2019, the number rose to 68%.