Smart Factory
Business Overview
A smart factory is an advanced facility where all production activities in manufacturing are digitized, enabling the creation of an efficient and flexible production system. By applying cutting-edge technologies such as IoT (Internet of Things), big data, artificial intelligence (AI), and robotics, real-time data collection, analysis, and management optimize the production process.
Business Features
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Connectivity
All equipment and systems are connected via IoT, enabling real-time data collection and monitoring.
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Automation
Various tasks within the factory are automated, improving the efficient use of human resources and enhancing productivity.
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Predictive Maintenance
Using AI and big data, the condition of machinery is predicted to enable maintenance, minimizing downtime.
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Flexibility
Production processes and lines can be quickly adjusted to meet customer demands or respond to market conditions.
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Data Integration
Production processes and lines can be quickly adjusted to meet customer demands or respond to market conditions.
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Cybersecurity
Enhanced cybersecurity technologies are essential to minimize security threats arising from increased data connectivity.
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Workforce Reallocation
The implementation of smart factories reduces repetitive tasks, allowing personnel to be redeployed to higher-value activities.
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Energy Management
IoT and AI are used to monitor and optimize energy usage in real-time, reducing costs and supporting environmentally friendly operations.
Operating System Framework

Smartization Level Criteria
Category | Field Automation | Factory Operations | Enterprise Resource Management | Product Development | Supply Chain Management |
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Advanced Level | CPS based on IoT1) /IoS 2) | Business in cyberspace CPS 3) Network nollaboration |
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IoT/IoS | IoT/IoS Modularization Big Data-based Diagnosis and Operation |
Big Data / Virtual simulation for design and development / 3D Printing | |||
Intermediate Level 2 | Equipment control automation | Real-time factory control | Integrated factory operations | Automation of standard and technical information generation and connection | Multi-variety development collaboration |
Intermediate Level 1 | Automatic aggregation of equipment data | Real-time decision making | Cross-functional integration | Development and operation of standard and technical information | Multi-variety production collaboration |
Basic Level | Automatic performance aggregation | Process and logistics management (POP) | Independently operated functions management-focused approach | Project management using CAD | Dependence on a single parent company |
ICT Not Applied | Manual work | Manual work | Manual work | Manual work | Collaboration via 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
Process and Management Improvement Achievements
Improvement
Achievements
Productivity
29.0%Quality
42.1%Cost
35.2%On-time
Delivery Rate
Improvement
Achievements
Employment Rate
Average employment increase 2.1 people per companySales Revenue
11.3%Industrial
Accidents
Source: Korea Productivity Center (May, 2023)