How IoT helps APAC OEMs optimised OEE and supply chain

We are on the cusp of a major industrial revolution as the Internet of Things (IoT) promises unprecedented disruption in manufacturing, bringing about productivity gains and cost savings. IoT solutions are being deployed to streamline various aspects of manufacturing, from improving production effectiveness, tracking and optimising supply chain efficiency, monitoring facilities for improving maintenance and air quality, and much more.

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How IoT helps APAC OEMs optimised OEE and supply chain

By 2025, the total number of installed IoT-connected devices worldwide is expected to reach 30.9 billion units1. These devices, together with high-speed internet connectivity provide a foundation for numerous applications that will benefit original equipment manufacturers (OEM). In fact, PwC research in 2020 showed that 90% of manufacturers saw long-term benefits in digitising the production process2.

With IoT, we can expect even more benefits around faster decision making and productivity boosts in manufacturing, by using sensor data and machine learning. In fact, we’re already seeing an uptick in the adoption of IoT among manufacturers. The global IoT in manufacturing market size is expected to grow at a whopping annual rate of 11.9% to USD 87.9 billion by 2026, according to Markets and Markets.3

There are several ways in which manufacturers can put IoT to use in their work. Almost all of these are based on the ability to use sensors and connected devices to capture data in real-time, which when analysed offer insights for improving the production process.

Improving Overall Equipment Effectiveness (OEE)

In the manufacturing sector, it is crucial to accurately monitor bottlenecks and maintain and improve efficiency in production. To track this, the metric OEE is often used. OEE is measured as the percentage of the total operating time during which a machine runs at its full capacity, producing the optimal yield. IoT-based tools allow manufacturers to accurately track OEE by using sensors to detect downtimes, track levels of raw materials, reduce in speeds, equipment defects, and more.

Optimising supply chain efficiency

Another important use case for IoT is in logistics and monitoring supply chains. Installing IoT devices and sensors at various points along the supply chain, manufacturers can collect data on changes in temperature, humidity, and conditions of products, check for compliance, and track their items until last-mile delivery. With instant access to insights on bottlenecks along the supply chain, manufacturers can take quick action and maximise efficiency.  

Maintaining and improving facilities

IoT solutions can also be useful in getting real-time data on occupancy across spaces and meeting rooms to ensure that they are in good condition. For example, sensors can be used to track the frequency of usage of rooms and to collect feedback on their cleanliness, which will allow for targeted maintenance and cleaning to those areas which most need them. Sensors can also help facility managers gain visibility into CO2 levels, humidity, and energy usage of air conditioning systems to allow for optimisation of power usage, air quality, and maintenance costs at the same time.

Predictive maintenance for pre-emptively addressing equipment failure

The benefits of IoT go well beyond merely tracking various metrics related to machine performance for monitoring. Today, with the aid of machine learning algorithms and artificial intelligence, it is possible for manufacturers to predict potential issues in the future. The algorithms take in historical and real-time data from the sensors and use models to predict everything from future breakdown of machinery or downtime, wear and tear and accordingly plan servicing schedules.

This can result in major cost savings for manufacturers as they can take preventative action instead of reacting to failures in equipment. According to research from the Wall Street Journal, 47% of all unplanned outages4 are due to equipment failure, with the cost of repairing a failed asset being 50% greater than handling the problem before the failure.

When deploying IoT solutions for any of these use cases in manufacturing, it is essential to ensure reliable mobile connectivity for the devices. This is what will help manufacturers simplify logistics across regions and centralise operations and distribution. Adopting a multi-domestic solution can also be crucial in navigating regional differences in regulations and for streamlining operations while a single embedded SIM (eSIM) can help OEMs deliver connectivity services over an access point name (APN), resulting in lower costs associated with logistics, inventory, subscription, and roaming.

OEMs looking to take full advantage of the benefits of IoT will therefore need to ensure they have the right partner to meet their connectivity requirements. Singtel is a leader in helping OEMs with their network connectivity needs, with our extensive, power-efficient, and flexible networks. Our multi-domestic connectivity solutions, single eSIM, a unified platform for managing, reporting, and billing, and our local experts can help you tap into the growing IoT-powered manufacturing sector in APAC.

Want to learn how we can help you harness the power of IoT-enabled connected ecosystems? Contact us today.

 

1 Statista, Internet of Things (IoT) and non-IoT active device connections worldwide from 2010 to 2025, 2021.

2 PricewaterhouseCoopers, Digital Factories 2020: Shaping the future of manufacturing, 2020.  

3 Markets and Markets, IoT in Manufacturing Market - Global Forecast to 2026, 2021.

4 Wall Street Journal Custom Content, Emerson, Data is Not a Four-Letter Word, 2020

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