WAYS TO INCREASE OPERATIONAL EFFICIENCY

AT MANUFACTURING PLANTS- APPLICATION OF

IOT-A CASE STUDY

MANISH SAXENA,

Joint Advisor,

Telecom Regulatory Authority of India,

Regional Office, Jaipur

PROBLEM: HOW TO INCREASE OPERATIONAL

EFFICIENCY AT MANUFACTURING PLANTS

Customers

Needs to

address

Manufacturing Plants

There are many ways, IoT can help in increasing

operational efficiency in manufacturing plants

e.g. inventory control and supply chain

management. But one of the greatest

advancement may be made possible by the IoT is

energy management .

• How to minimize and optimize energy

consumption

TRADITIONAL SOLUTION

•Energy is often one of the largest expenses for manufacturers.

Traditionally , most of the plants managers obtain energy

consumption data from monthly utility bills or energy

monitoring tools with limited data points.

•Monthly utility bills are delivered after a substantial period

post the end of the billing cycle. Further they often report

energy use for entire manufacturing plants. This information is

of little use for plant managers for identifying waste or enabling

reduction of consumption.

IoT Solution

• Using device connectivity enabled by IoT,

manufacturers can track energy

consumption patterns at the device level. A

sensor /actuator is installed at each of the

machinery part/ energy consuming

component to remotely monitor and

control the energy consumed by that

manufacturing equipment/component .

• Machinery energy consumption data is

also collected through the sensors and

devices send periodic message regarding

energy consumed to the controlling station

may be in the same premises or at remote

location of IoT company. This data is

analyzed to help optimize the energy

consumption in manufacturing process.

IoT SOLUTION AND BENEFITS

Benefits

By tracking each piece of machinery on the floor,

managers and executive get granular visibility into energy

consumption, actionable insight about waste, increased

operational efficiencies, impending equipment failures,

regulatory compliance etc.

Resource Utilization: Real time energy profiles allow

manufacturers to detect off-hours consumption, optimize

manufacturing production schedules and identify

anomalies.

Benchmarking: Manufacturer can benchmark similar piece

of equipment to find out systems that are not functioning

properly to detcet hidden operational inefficiencies and

energy waste.

IOT SOLUTION AND BENEFITS

Predictive Maintenance: Manufacturer gets alerts for

service when service is needed based on recognized

unusal energy usage, thus avoiding the high costs

equipment downtime.

Efficient Production: Same or greater outputs with more

efficient energy use due to optimal manufacturing

processes.

Operational Efficiency and

Profitability: Increased operational

efficiencies made possible by this IoT

solution of device level energy

management immediately affects the

bottom line for manufacturers. For

example using predictive

maintenance manufacturers can

eliminate machinery failure , which is

costly and its associated down time

which may be even more costly.

Moreover with device-level energy

consumption data made possible by

IoT, manufacturer can reduce their

wasteful consumption and hence

their energy spent.

IoT SOLUTION AND BENEFITS

Feature Requirement Comment

Network Area • Wide Extended area of manufacturing plants

and control/monitoring centre at remote

location require significant signal coverage

Spectrum • Dedicated Quality of service of transmission is a

crucial factor

Battery Life • Short/ N/A Device may be charged by factory supply

Connectivity cost • Medium Associated with the type of technology.

Module Cost • Medium/High Price may not be an issue in big

manufacturing plants

Bandwidth • Medium Data needed to monitor energy use in

various components may be moderate.

LPWA 2G 3G

TECHNOLOGIES

MOST LIKELY BUSINESS MODEL

Business Model Revenue of the IoT

company

Device ownership

Costs-saving sharing Recurring IoT company

• The IoT company installs, operate and maintain the monitoring and control

equipments/system with no upfront fees.

• The end user (manufacturing plant) pays for the equipment rental from the energy

savings generated by the IoT solution.

OPERATIONAL ISSUES & POLICY TOPICS

Network coverage

Business Model

Global deployment

& taxation

Legal framework in

Cost-saving

business model

Operational

Considerations Policy areas

Mechanism to

assess savings in

cost

THANKS