Improving operational efficiency with IoT and AI within ... · Underutilized assets and costly...
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Improving operational efficiency with IoT and AI within industrial sectorsOrkun Gündüz
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IoT expenditures are increasing
82%of manufacturers
already have or plan to develop
a digital transformation
strategy3
63% of manufacturers
believe that applying IoT to products will
increase profitability over the next
five years4$267B
manufacturerswill invest in IIoT by 20205
50%Of IoT spending
will be driven by discrete manufacturing, transportation and logistics, and utilities6
Sources: 1- Zinnov Zones 2018, 2- MDC Research, December 2018 3 - Oracle for Industry Week 2018, 4 - The MPI Group 2016, 5 - BI Intelligence 2015, 6 - BCG 2017
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3Copyright 2018 – ARRIS Enterprises, LLC. All rights reserved
Skills gap & labor costs: Another key driver for IoT adoption
Source: 1 - 2019 industrial manufacturing industry outlook, Deloitte 2019, 2 - 2019 National Manufacturing Outlook and Insights Leading Edge Alliance 2019
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4Copyright 2018 – ARRIS Enterprises, LLC. All rights reserved
Inefficient operations
Source: 1 - 2019 industrial manufacturing industry outlook, Deloitte 2019, 2 - 2019 National Manufacturing Outlook and Insights Leading Edge Alliance 2019
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Underutilized assets and costly downtimes ~$100,000
costs a single hour of downtime1
75%average
manufacturing capacity utilization in the US2
Source: 1- OEE Benchmark Study, SageClarity 2018, 2 - ITIC 2016
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How does IoT change that?
Sources: 1 - The Road to Digital Transformation. A Progress Report for Manufacturers, Oracle for Industry Week 2018, 2 - The Internet Of Things: Mapping The Value Beyond The Hype, McKinsey Global Institute 2015
“The greatest potential for creating value will be in operations optimization—making the various processes within the factory more efficient.”2
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Labor Time Analytics
Source: 1
10-25%Of
potential improvement in labor efficiency
would arise from the IoT1
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Tools and equipment management
Source: 1 - IoT and Smart Manufacturing, ITIF 2016
20-50%Of
an enterprise inventory carrying costs
in manufacturing will be saved
by IoT1
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Job Order and Material Flow Tracking
20% higher product count
from the same production line1
40%reduction in cycle time
with smart manufacturing
technologies2
85+%increase in forecasting
accuracy with smart manufacturing technologies2
Source: 1 - IBM 2016, 2 - Itif 2018
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Equipment Utilization and Smarter Maintenance
40%reduction of factory
equipment maintenance costs by
predictive maintenance1
Source: 1 - Deloitte 2017, 2 - Itif 2018, 3 - Roland Berger 2016
30-50%reduction of total
machine downtime2
machine parks reduced by
30 ppwith Industry 4.03