The Internet of Things (IoT) is now to involve in manufacturing unit to deliver and enhance the productivity of companies through smart factory concept. It gives full business insights of manufacturing process and deliver data on their devices. View more at - http://www.softwebsolutions.com/iot-manufacturing-solutions.html

1. Leverage the Internet of Things to Set Up a
Smart Factory

2. Content02
1. Executive Summary
2. IoT in a Nut-Shell
3. The Value Proposition
3.1 Increased Product Revenue
3.2 Differentiated Products and Service offerings
3.3 Optimized Business Processes
4. Business case of IoT in Manufacturing
4.1 Sensors
4.11 Temperature Sensors (Manufacturing Process):
4.12 Carbon Emission Sensors (Manufacturing Process & Environmental Emission):
4.13 Humidity Sensors (Storage/Warehouse conditions):
4.14 Noise Sensors (Worker conditions, compliance):
4.2 Cloud
4.3 Web & Mobile Application
5. Implementation Strategy
6. Conclusion
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3. Executive Summary03
Leverage the Internet of Things to Set Up a Smart Factory
Manufacturing units today are under tremendous pressure from management and customers to deliver high
quality products and services at lower costs in a minimum amount of time. Any company that invests time
and money in IoT will expect a favorable return on their investment. Today’s market leaders rightly believe
that ROI is multidimensional and hence, they focus on customer satisfaction, collection of accurate data,
converting it to the right information, brand differentiation, all of which can lead them to increased revenue
The IoT (Internet of Things) is creating new opportunities for
companies to enhance their services, gain business insights
from accurate and timely data, improve business processes
and differentiate their offerings. In fact, connecting machines is
bringing companies closer to their customers while delivering
real ROI and payback.
This white paper from Softweb Solutions describes IoT value
propositions for manufacturing units and defines an ROI model
for building a business case and tracking results related to IoT
initiatives.

4. IoT in a Nut-Shell
The Value Proposition
04
Leverage the Internet of Things to Set Up a Smart Factory
IoT embraces the fact that all products, devices, facilities, systems, equipment, delivered goods, processes,
workflows, and people will coexist in a connected world, interacting and being inter-dependent. IoT systems
will act like social networks, collating connected product data to foster unparalleled knowledge and
collaboration.
The value proposition of IoT falls into several buckets of capabilities that differentiate your products,
including remote monitoring, remote service, usage analysis, ERP/CRM integration, and value-added
services.
Smart, connected products enable remote monitoring and remote service that drive both a reduction in the
costs of services and an improvement in the level of service. Analysis of connected product data can
improve business decisions, product design, and manufacturing processes.
Core business processes like billing, field service, product registration, compliance, consumable
management, recalls, and warranty management can all be improved with connected product data. And
finally, the selling and marketing of connected products, which include new applications for end users, can
deliver a competitive advantage and drive revenue growth.

5. The Value Proposition05
Leverage the Internet of Things to Set Up a Smart Factory
STEP 1:
Determine the value of connected product
services for each product unit assuming the
average selling price of a connected
application is $50 per year per user, and the
average number of users per connected
product is 20.
Example:
$50 x 20 users per product = $1,000 per
product.
STEP 2:
Estimate the total product revenue increase.
Assuming a 25 percent attach rate on a total
product unit volume of 100,000, the increase
in product revenue for the new connected
application would be 100,000 units x 25% x
$1,000 = $25,000,000
1 INCREASED PRODUCT REVENUE
IoT enablement bears fruits through direct as well as in-direct revenue streams as described below with
examples. Based on value-added services that can be enabled by IoT, company ABC estimates that a
connected product line could generate an additional revenue stream. Assuming customers will subscribe
to these services within the first year of product ownership, here is a sample calculation of increased
revenue:

6. The Value Proposition06
Leverage the Internet of Things to Set Up a Smart Factory
Saving on Labor Cost
Example: ABC Company estimated that each field service technician deployed in the field has a capacity of
ten on-site customer visits per week. The expected results for implementing remote service would be a
reduction in total on-site visits by 30 percent. The burden rate for a field service technician is $100 per hour.
STEP 1:
Determine the number of visits per week, assuming
that an average field-service visit at a customer
location is four hours long.
Example: 40 hours per week/4 hours per visit = 10 calls
on average per field service technician per week
STEP 2:
Determine the man-hours saved by using IoT to
remotely diagnose and repair 30 percent fewer
issues without an on-site visit.
Example: 10 calls x 30% x 4 hours = 12 man-hours
saved per week
STEP 3:
Develop a quantifiable metric; subtract the amount of
time required per workweek times the burden rate for
a field service technician to determine labor cost
savings.
Example: 12 hours per week x $100 per hour = $1,200
in savings per workweek.
STEP 4:
Determine the impact across the entire field service
organization
Example: Assuming 100 technicians x 50 workweeks
x $1,200 per workweek = $6,000,000 annual
savings

7. The Value Proposition07
Leverage the Internet of Things to Set Up a Smart Factory
2 DIFFERENTIATED PRODUCTS AND SERVICE OFFERINGS
Improved product design:
The understanding gained from real end-user behavior and usage patterns also allows product managers
and engineers to design better products and prioritize new features, as well as drive an increased market
share by offering a superior product design. The company can utilize this usage data to define
next-generation product requirements and ensure that companies design a product that takes into
consideration real-world customer feedback.
Identification of quality issues:
By looking at the trends across multiple systems, you can reduce costs by identifying any quality issues or
design flaws in parts supplied by third parties or within your own manufacturing processes, allowing you to
understand what is causing downtime for customers. Understanding the relationships between problems
and specific batches or production runs can identify a bad batch early and streamline the recall process. It
is also possible that the problems are more serious and are still part of the current manufacturing process.
In this case, usage data may trigger the need to change the current manufacturing process.
Predictive maintenance (schedule maintenance only when required):
Accurately predict the maintenance cycle of your devices, machines and their discreet components by
analyzing historical data. Analysis of connected product data, including sensor data, will uncover patterns
in connected product data readings that are early indicators of failures.

8. The Value Proposition08
Leverage the Internet of Things to Set Up a Smart Factory
Rather than performing preventive maintenance on a calendar basis when it may not be needed,
companies can track exactly how much a device has been used and if it’s time for service; thereby
eliminating unnecessary preventive maintenance calls and premature repairs or component replacement.
Servicereps can also perform preventive maintenance during scheduled calls, reducing unplanned and
planned downtime and customer interruption. This predictive maintenance knowledge can then feed
increased revenues by providing increased uptime with premium SLA pricing.
3 OPTIMIZED BUSINESS PROCESSES :
The Value of Smart, Connected Product Data Integration and Business Process Efficiency:
Organizations, and particularly manufacturing units, who have now connected things/assets/entities over
the internet, are taking the best advantage by pulling real time, accurate data into enterprise systems like
CRM, ERP or data warehouses.
IoT data from connected assets, in collaboration with other enterprise systems, can provide visible
automation across the organization. Additionally, integration with quality assurance (QA) or, product
lifecycle management (PLM) can help enhance product features based on real-world data that shows usage
patterns or equipment issues—helping to improve customer satisfaction and streamlining beta programs.
Measuring critical data points in a device allows for notification to the service team if there is a risk of failure,
and, simultaneously, the finance department can be informed when warranty guidelines are not being
upheld.

9. The Value Proposition09
Leverage the Internet of Things to Set Up a Smart Factory
It optimizes critical business processes, reduces service call times, warranty claims etc. The real value
delivered with this coherent unit is described in the table below.
Key Benefits of Smart, Connected Entities’ data integrated into Business Systems (CRM, ERP etc.)
Business Process
Customer Service
Field Service
Warranty Management
---
Recall Management
Consumable Management
Compliance
Configuration Management
Measure
Length & Frequency of support calls
Time to Resolution
Number of warranty services,
warranty costs
Support cases of recalled products
Consumable Revenue
Cost of compliance
Cost of configuration management
Benefits
Effective troubleshooting and CRM efficiency increased
Reduction in warranty claims and warranty service costs
More efficient recalls with accurate data of which
machine/product needs to be recalled
Increase in sale of consumables
More efficient auditing of interactions with machines,
humans and decreased compliance cost
Accurate data about installed equipment and configuration
Proactive creation of field service request with
accurate data and health status

10. Business case of IoT in Manufacturing
CloudSensors Web & Mobile
Application
10
Leverage the Internet of Things to Set Up a Smart Factory
Every manufacturing company operates on various production lines that consist of many critical processes.
Here we identify few common processes to present our case of an IoT enabled manufacturing unit.
Manufacturing controls require continuous measurement of environment variables like temperature and
pressure. Compliance regulations also make it necessary for the company to provide safe working
conditions for its employees such as noise level of the workshop, hygiene of the water etc. In this case we
are describing all the components, processes and the final outcome of the IoT implementation involved in
this manufacturing unit.

11. Business case of IoT in Manufacturing11
Leverage the Internet of Things to Set Up a Smart Factory
1 SENSORS
Sensors are integral components of the IoT ecosystem in manufacturing. Sensors monitor critical processes,
environmental variables throughout the production unit, parameters that affect product quality and working
conditions of the workers. It also consolidates the real time and accurate data with ability to integrate with
direct database systems, legacy ERP Systems or data warehouses.
Temperature Sensors (Manufacturing Process):
Many production processes in manufacturing plants essentially require temperature control with zero
degree tolerance. Production workers do not get sufficient time to take the right decision when this
production rule is compromised.
What if you could pre-program all your decisions in this unwanted situation? That is the core offering of IoT
systems where you can in fact shut off the machine, process and; alert the user at that very second, when
the trigger is hit with the set value. It is imperative to not undermine the data it collects even when
everything is running fine. IoT tools on their own mine this data for you to derive highly useful set of
information which helps you make the right moves from your product design to after sales support.
Besides this use case, the same sensors can be utilized in non-production areas such as offices, to maintain
your HVAC systems to ensure that they do not consume more energy. E.g. AC units can now intelligently tell
what the peak time for their use is and when it sits idle.

12. Business case of IoT in Manufacturing12
Leverage the Internet of Things to Set Up a Smart Factory
Carbon Emission Sensors (Manufacturing Process & Environmental Emission):
Nowadays, your carbon credit is directly proportional to your environmental and social credibility. How
would you make sure that your inevitable carbon emissions during production are not exceeding the
threshold? Various gas & environmental sensors are the answer to it. They are capable of measuring
particular gas emissions like CO2 and other toxic gases. The data is fed into the system at every second and
this historical data also helps you devise new processes to lessen the environmental burden from the
trends it derives.

13. Business case of IoT in Manufacturing13
Leverage the Internet of Things to Set Up a Smart Factory
Humidity Sensors (Storage/Warehouse conditions):
When products go from the manufacturing unit to the warehouse, environmental
conditions need to be maintained to keep their quality intact. In our case, let’s
assume luminosity of the warehouse is the factor. With the help of luminosity
sensors of high range, we can constantly monitor the warehouse conditions and
ensure that the product quality is not compromised.
Noise Sensors (Worker conditions, compliance):
Labor law and compliance bodies require you to follow the set standards
surrounding worker conditions. Noise is a very important parameter for
manufacturing units.
What if your up-to-the-minute data proves that your company has always
met the regulatory standards? With noise sensors you can do exactly this
since they will keep accurate data on noise levels. It will be an essential
addition to your production floor.

14. Business case of IoT in Manufacturing14
Leverage the Internet of Things to Set Up a Smart Factory
The picture below describes the location/process of each sensor in manufacturing unit:

15. Business case of IoT in Manufacturing15
Leverage the Internet of Things to Set Up a Smart Factory
2 CLOUD
For you to understand simply, cloud is where the storage and computation is happening on gathered data
by sensors. It is a core part of the whole IoT eco-system in any setup. It is capable of storing virtually any
amount, any type of data at any velocity it comes in.
Gathered data is analyzed in real time against your business
rules and set values. The cloud consists of some intelligent
analytics and machine learning tools that convert data into
easily understandable, accurate information and can help you
make the right decision over it in a timely fashion.
Machine learning tools can also command back to the
device/process/sensor to take decisions on behalf of actual
human decision makers. This is all pre-programed by you,
strictly following your business rules.

16. Business case of IoT in Manufacturing16
Leverage the Internet of Things to Set Up a Smart Factory
3 WEB & MOBILE APPLICATION
This is the part of the system which is directly visible to you. It is an intelligent dashboard that makes
information very handy for you. Mobile apps give you quick, real time updates by means of alerts and
notifications. With smart sensors you can send commands back to the devices to remotely operate them.
This makes it extremely easy for you to maintain your policies and compliance standards. Analytics will be
plotted on graphs and the historical data presented will be very intuitive.

17. Business case of IoT in Manufacturing17
Leverage the Internet of Things to Set Up a Smart Factory
3 WEB & MOBILE APPLICATION
Few screenshots here will help you visualize how great it is going to be.

18. Business case of IoT in Manufacturing18
Leverage the Internet of Things to Set Up a Smart Factory
3 WEB & MOBILE APPLICATION
Few screenshots here will help you visualize how great it is going to be.

19. Business case of IoT in Manufacturing19
Leverage the Internet of Things to Set Up a Smart Factory

20. Implementation Strategy20
Leverage the Internet of Things to Set Up a Smart Factory
Softweb Solution Inc., understands very well that becoming an IoT enabled company is not an easy decision
to make. Hence we have laid down a very systematic and gradual implementation plan to help you realize
your IoT dreams.
To jumpstart, an exclusive workshop has been designed. It’s joint brainstorming exercise for us to
- Understand your business vision, core processes
- Understand critical junctures and transitions within the organization
- Learn your existing infrastructure and setup
- Identify and locate critical parameters, its permissible values, implications in overall systems on violations
- Understand your Business Rules, Policies, Standards to comply with
- Know about existing legacy systems (ERP, CRM etc.) and how data flows between various departments
Now our experts will churn every detail in the IoT spectrum that will bring
- Identification of entities, processes that can be improved & automated through IoT
- How to control the critical parameters in permissible range and at the same time giving control through hand held
(i.e. Mobile, Tablets etc.)
- How Rules, Policies and compliance standards can be improved
- What infrastructure changes to be brought in to keep overall cost down and minimal
- How legacy systems can be more efficient and seamless by directly passing data from sensors to systems

21. Workshop Agenda21
Leverage the Internet of Things to Set Up a Smart Factory
Time : 9:00 – 9:30
Topic : Introduction to IoT & verticals it serves
Participants : All
Outcome : Awareness of IoT among your staff members and general benefits for any vertical
Time : 9:30 – 10:00
Topic : IoT in specific vertical (i.e. Manufacturing)
Participants : All
Outcome : Understanding of IoT ecosystem in any manufacturing system with its advantages
Time : 10:00 – 11:00
Topic : Understanding Sensors, Cloud, Big Data and Analytics
Participants : Architects, IT Team
Outcome : Understand the components & infrastructure of IoT
Time : 11:00 – 12:00
Topic : Evaluating your business needs processes. Understand existing setup with legacy systems in place
Participants : All
Outcome : Identification of processes, critical parameters and scope of IoT implementation in existing setup
Time : 12:00 – 1:00
Topic : Lunch/Open discussion

22. Workshop Agenda22
Leverage the Internet of Things to Set Up a Smart Factory
Time : 1:00 – 3:00
Topic : Listing of MVP (POC) phase scope
Participants : All
Outcome : Identification of Number of users, sensors along with features/functionality of minimum viable
product as POC for the company along with web and mobile offering
Time : 3:00 – 4:00
Topic : Solution assessment and architecture review
Participants : Architects, IT Team
Outcome : Basic architecture of the MVP product, infrastructure requirements and setup environment
Time : 4:00 – 5:00
Topic : Effort and Cost Estimation to implement POC
Participants : Business Team
Outcome : Identifying minimum investment of cost and time to implement MVP in the existing
environment with set of deliverables.

23. Conclusion23
Leverage the Internet of Things to Set Up a Smart Factory
Softweb Solution Inc., your technology partner would like to keep you ahead in the industry revolution with
IoT, which will be mandatory in the very near future. Gone are the days when technology used to be just
supplementary to core business processes, in fact it has become the “The driving force” in running
successful business in every vertical. With advancement in smart sensors and cloud technologies,
companies will enjoy more intelligent services at a cheaper cost. The time is now to make your company
smarter and more efficient than before. To know more, enroll for our IoT workshop.

24. Softweb Solutions, Inc. is a Chicago, IL, based software development company that specializes in Cloud Services, Content Management System (CMS),
Enterprise Mobility, and Mobile Application Management (MAM). Softweb Solutions has been providing high-quality and exceptionally flexible solutions to Large
Enterprises and SMEs for the last 10 years. The company has an extensive experience in providing the most sophisticated, high-end enterprise grade solutions
to a range of industries including health and life science, construction, manufacturing, automotive, IT, financial services, entertainment and many other sectors.
ABOUT SOFTWEB SOLUTIONS
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