IoT Technology, Automation, and the MRO Process in Manufacturing
In manufacturing, sensors and smart equipment are revolutionizing maintenance processes by allowing for more proactive and efficient planning. MRO procurement leaders can use automation and Internet-of-Things (IoT) technology to monitor assets in real-time, identify maintenance trends, and automate the order of parts and services based on analytics.
According to a Deloitte study cited by Forbes, more than 86% of manufacturers in the study "believe smart factory initiatives will be the main driver of manufacturing competitiveness in the next five years." However, only 51% were making or had made investments in IoT at the time of the study.
Here, we'll explore how this wave of technology can help MRO procurement leaders improve their maintenance processes and encourage operational resilience.
The Benefits of Automation and IoT in Manufacturing MRO
By integrating sensors, software, and other digital tools into the maintenance process, manufacturers can now predict when machines will require service and prevent costly downtime. Automated systems can detect and diagnose issues before they become severe, minimizing the need for manual intervention.
Additionally, these technologies are improving safety conditions for workers, as they reduce the risk of human error and allow for remote monitoring of equipment.
On the procurement side, these technologies have the potential to reduce unnecessary orders of parts and other inventory. They could also reduce manual procurement processes.
For example, IoT sensors and their relevant software could be integrated with the company's procurement and ERP systems. When sensors measure that an asset, such as a machine, will need to be repaired soon, the system can auto-generate an order for the necessary parts and services. At the very least, it could signal to procurement teams that a new order of parts will be required soon.
This could significantly reduce errors and downtime, and it could reduce costs by helping procurement avoid overspending on parts and maintenance.
Tools Needed to Utilize Automation in the MRO Process
To realize these benefits, companies need to have the right tools and technologies in place.
IoT technology is still relatively new, but it is becoming much more streamlined. Procurement departments will need to identify technology vendors that can provide them with the requisite physical assets and software to successfully monitor their assets.
This could prove more challenging in some industries, as they may rely on specialized equipment. IoT sensors are already widely used in assets like freezers and refrigerated vehicles, but they may not be as widely available for robotic systems, for example.
Companies may also need to work with a technology partner to help them synchronize and integrate all their systems. IoT sensors deployed on a factory floor may need to be able to relay data to a system in another location, perhaps even in another country entirely. That data must also be analyzed so that users can act on it and develop long-term insights.
Manufacturers who intend to leverage this technology for MRO optimization must take steps now to ensure they have the tools and partnerships in place to succeed.
Best Practices for Implementing Automation and IoT in Manufacturing MRO
Approaching this strategy will be a step-by-step process. Here are a few best practices for leveraging IoT and automation for manufacturing MRO:
- Identify areas where automation and IoT can be most beneficial, then prioritize those projects.
- Choose the right technology partners and vendors to help you integrate and manage your sensors, systems, and data.
- Develop a plan for testing and piloting these technologies.
- Ensure that all stakeholders are on board with the project before rolling it out across the organization.
- Create a system for tracking results and reporting success metrics back to stakeholders.
By following these best practices, manufacturing companies can reap the rewards of increased efficiency, reduced costs, and improved overall productivity.
Learn More About Optimizing Your MRO Process
We’ve presented only a few examples of how IoT technology and automation can be used to optimize the MRO process in manufacturing. Future applications of these technologies will depend on specific business contexts, but there are plenty of ways manufacturers can innovate with them to deliver cost savings, efficiencies, and reduced risk to the company.
If you’d like to learn more about how you can leverage IoT technology and automation in your operation, don’t miss ProcueCon MRO 2023. The event is scheduled for October 23rd through 24th at the Grand Hyatt Atlanta Buckhead.
Download the agenda and register for the event today.