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Smart Factory

Turn production activity into data, then use that data to optimise the process.

Overview

Business Overview

A smart factory turns every production activity in manufacturing into data and uses it to build an efficient, flexible production system. Applying IoT, big data, artificial intelligence and robotics, it collects, analyses and manages data in real time with one goal: an optimised production process.

Features

What Defines It

  • 01

    Connectivity

    Every machine and system is connected over IoT, so data can be collected and monitored in real time.

  • 02

    Automation

    Automating work across the plant frees up people and lifts productivity.

  • 03

    Predictive maintenance

    AI and big data predict machine condition so maintenance happens before downtime does.

  • 04

    Flexibility

    Processes and production lines can be changed quickly as customer demand or market conditions shift.

  • 05

    Data integration

    Managing the plant’s systems and data on one platform maximises efficiency.

  • 06

    Cybersecurity

    As connectivity grows, stronger security technology is essential to keep the threat surface small.

  • 07

    Redeploying people

    With repetitive work reduced, people can move to higher-value tasks.

  • 08

    Energy management

    IoT and AI monitor and optimise energy use in real time, cutting cost and supporting greener operations.

Framework

Operating System Framework

Vision & strategyVision & Strategy

Manufacturing competitiveness and market leadership

Goals & KPIsGoal & KPI

Connected, Real-Time, Intelligent, Flexible, Sustainable (P, Q, C, D, S, E)

EnterpriseEnterprise Level
  • PLM
  • ERP
  • SCM
  • FEMS
FactoryFactory Level
  1. Product development
  2. Production planning
  3. Logistics (procurement)

Manufacturing execution

  • Process control
  • Quality control
  • Equipment management

Material management (storage)

Logistics (delivery)

Machine & controlMachine & Control Level
Control
Instrument(sensor, actuator), Controller, Camera, RFID, Barcode
Machine
Machining / Inspection / Assembly / Transfer / Storage
Manufacturing technology
Technology specific to each industry

Level

Smartisation Level Criteria

Smartisation level criteria by category: field automation, factory operations, enterprise resource management, product development and supply chain management
Category Field automation Factory operations Enterprise resource management Product development Supply chain management
Advanced CPS built on IoT1) and IoS2) Business in cyberspace
CPS3) network collaboration
IoT and IoS adoption IoT and IoS modularisation
Big data driven diagnosis and operation		 Big data / virtual simulation for design and development / 3D printing
Intermediate 2 Automated equipment control Real-time factory control Integrated factory operations Automated creation and linking of
master and technical information		 High-mix development collaboration
Intermediate 1 Automatic aggregation of equipment data Real-time decision making Cross-functional integration Master and technical information developed and operated High-mix production collaboration
Basic Automatic performance aggregation Process and logistics management (POP) Management-focused
functions run independently		 Project management using CAD Dependent on a single parent company
No ICT Manual work Manual work Manual work Manual work Collaboration by phone and email

Source: target level criteria, e-Nara Standard Certification KS X 9001-1 (p. 23), overall level diagram
1) IoT: Internet of Things · 2) IoS: Internet of Services · 3) CPS: Cyber Physical System

Effect

Process and Management Improvements

Process improvement

  • Productivity

    29.0%

    up

  • Quality

    42.1%

    up

  • Cost

    35.2%

    down

  • On-time delivery

    18.3%

    up

Management improvement

  • Employmentaverage per company

    2.1people

    up

  • Revenue

    11.3%

    up

  • Industrial accidents

    1.54%

    down

Source: Korea Productivity Center, May 2023