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Are we ready for the Internet of Things?

While everyone has IoT somewhere on their radar screens, its potential remains unfulfilled. Make no mistake, data collected from embedded intelligence is set to transform manufacturing.

Internet of Things
Internet of Things

The Industrial Internet of Things has moved into the pantheon of 21st-century packaging buzzwords alongside RFID and Sustainability. Internet-enabled systems bring a new level of flexibility, performance, and cost advantages to processing and packaging facilities throughout the supply chain.

“There is no doubt that the Internet of Things is becoming a must in current and future manufacturing operations in order to remain efficient and effective in an ever more competitive world. These smart and necessary tools enable us to gather data, analyze that data, and use the data to remain competitive,” says Richard Larsen, Vice President, Facilities & Equipment, Honeyville, Inc.

For the IoT to work, however, equipment needs to interact seamlessly for an effective data exchange. Are packagers and processors ready for this change?

According to a study conducted by research firm The MPI Group, the answer is not yet. Manufacturers have only incorporated smart devices or embedded intelligence in 25% (median) of their production equipment and processes. Despite the benefits, few manufacturers have the network infrastructure to accommodate IoT machine-to-machine (i.e., sensors in one machine trigger actions of another machine) or machine to enterprise communications (i.e., machine sensors send data to corporate business systems).

This type of connectivity comes at a cost. “Cost justification remains a big issue when real operational data and objective results aren’t readily available to justify investment in IoT systems,” says Roy Greengrass, PE, Corporate Engineering, Del Monte Foods, Inc. “Food manufacturers operate with lean staffs and low margins, and they can’t really absorb the inherent risks and potential for downtime that come with IoT investment the way that other capital intensive industries can,” says Roy Greengrass, PE, corporate engineering, Del Monte Foods, Inc. “If the price for IoT goes down considerably, food companies may then be able to justify these systems.”

Change on the way
There is hope for change, however, as the study predicts 76% of manufacturers will increase use in the next two years. The top five objectives for incorporating this technology are to improve product quality, increase the speed of operations, decrease manufacturing costs, improve maintenance/uptime and improve information for business analytics.

One way equipment suppliers and their customers are currently able to use IoT is to remotely monitor equipment to diagnose problems quickly. “Service data shows that 70 to 80 percent of machine problems can be diagnosed and remediated remotely,” says Mark Ruberg, Vice President, Pro Mach Business Process. “But the monitoring side is where we really see the benefits. Data analytics provide real-time information that pinpoint problems before customers experience downtime.”

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