In the future, IIoT will bring together people, machines and data into a seamless continuum that will enable manufacturers to improve their productivity, efficiency, quality control, customer satisfaction and profitability. Download this white paper to see how you can maximize the effectiveness of IIoT in your factory.

MAXIMIZING THE EFFECTIVENESS OF IIOT USING CENTRALIZED MANUFACTURING MANAGEMENT SOFTWARE TO GATHER AND ANALYZE I IOT DATA +1 714 996 5302 180 N Riverview Drive No. 300 Anaheim, CA 92808, United States TM Maximiz ing the Ef fec t i veness of I IoT2 INTRODUCTION Imagine a scenario in which every stage of the production cycle has the capability to communicate with one another — from engineering to suppliers, through the production floor and out the door to the end user. The MES/MOM applications are running at their maximum efficiency to optimize inventory and production demands. A fully connected factory soon begins to realize quality, competitive, productivity and profitability benefits that could not have been realized without its installation. Bringing together factories, supply chain members, quality control, data management and customer service under one communication umbrella affords the opportunity to spot problems earlier, implement cost savings at all levels, improve customer satisfaction and increase profitability. In short, the ability to connect efficiently affects the ability to compete effectively. “The Industrial Internet is indeed transformative. It will change the basis of competition, redraw industry boundaries and create a new wave of disruptive companies, just as the current Internet has given rise to Amazon, Google and Netflix.”1 -World Economic Forum, 2015 Maximiz ing the Ef fec t i veness of I IoT 3 THE THREE STAGES OF CONNECTED FACTORIES In the future, IIoT will bring together people, machines and data into a seamless continuum that will enable manufacturers to improve their productivity, efficiency, quality control, customer satisfaction and profitability. With an IIoT framework in place, it is hoped that the smart machines that are communicating with each other will be better than their human counterparts at capturing, analyzing and communicating data. Problems and concerns should be identifiable and fixable much earlier in the production cycle, leading to higher levels of customer satisfaction. But many factories have yet to fully implement an IIoT-based system. Instead they find themselves in one of the following three stages: Pre-Software A significant percentage of the industrial community still has no software solution in place to connect departments. All aspects of the factory are in silos, operating autonomously from one another. For example, the quality control department may not talk to suppliers early in the production cycle to try to identify and improve quality issues. This leads to an inefficient flow of information, which could affect the quality of the product delivered to the end user. Semi-Connected Factory Some operations have realized the need for increased connectivity, but they have not yet taken a complete leap into its installation on a system-wide basis. They might be relying on some type of homegrown solution or point solution that connects pieces of the factory, but not all of it, into one unified system. This would be similar to having a digital device that can help increase one element of efficiency, but it is not yet connected to the web to gather information from multiple sources. For example, the company may have implemented a system for quality control to talk to suppliers to work out issues regarding product specifications, but elsewhere in the organization, Operations is not alerting Maintenance to the cause of a persistent downtime issue, which is causing a severe disruption in production. While certainly better than the pre-software stage, this still leaves the factory in a state of lowered connectivity, which affects its ability to operate at the highest rates of efficiency. Connected Factory This is a factory or operation that has a fully functioning MES/ MOM (Manufacturing Execution Systems/Manufacturing Operations Management) in place. These capabilities enable the entity to utilize IIoT to its fullest potential by completely streamlining the value stream and optimizing all processes. IIoT serves the functions of analyzing data, implementing systems and taking action without the need for human intervention at every step of the way. This provides the company with the ability to identify lapses in the supply chain that could lead to production delays, spotlight shipments received that are not up to engineering specifications, and could lower product quality or identify product defects that could endanger the company’s quality reputation. POSSIBLE BARRIERS TO CONNECTIVITY Insufficient Vision and Direction Without a well-crafted plan in place, an IIoT implementation is doomed to failure. A vision must first be supplied from top management, then various stakeholders must come together to agree on the path that needs to be taken. Individual departments will need to break out of their silos so as to mutually gather, share, analyze and act on data for the corporate good. Disparate Systems Among Various Entities While the global economy is rapidly expanding, it also leads to a lack of uniformity among participants — some are at more advanced levels than others. It may be easier to mandate IIoT internally, but it can be difficult to convince suppliers, outsiders or newer members of the system to join in the IIoT system. All members of the production loop need to be brought under one seamless system that takes advantage of the latest in software and hardware to achieve its goals. Lack of Security Controls The unfortunate downside to an increase in connectivity is an accompanying increase in the potential for disruption. The news media has highlighted a recent increase in the number of hacking episodes, which could have significant repercussions in the industrial world’s application of IIoT paradigms. Planning must allow for the incorporation of advanced cyber threat protection solutions into the network. IIoT is a relative newcomer to the industrial world. While early adopters will benefit most with streamlined competitive advantages, several considerations need to be analyzed and resolved on the path to full integration. Need for Powerful Software Platforms Hardware is only as effective as the software behind it. Software provides the ability to turn raw data, numbers and statistics from various sources into information that can be used to make crucial decisions. The best solutions allow for enhanced communication and response mechanisms across the manufacturing life cycle in real-time. With enormous amounts of unsorted data flying around the factory, IIoT-ready manufacturers will need to find a software solution to address this growing problem. After all, power without control is wasted. When thinking forward to a software solution, to match the vast data of IIoT, it must include the following features and functions to properly connect a factory: production planning, scheduling, performance management, workflow and labor management, work-in-progress, inventory management, sustainability and energy management, and material management to name a few. With a unified and integrated software solution managing data, assets, and processes, operators and managers can look to proven continuous improvement methods to further increase the bottom-line. Maximiz ing the Ef fec t i veness of I IoT4 Maximiz ing the Ef fec t i veness of I IoT 5 GET READY FOR THE IIOT REVOLUTION Those in manufacturing who fail to adapt now will miss out on a crucial competitive advantage that is becoming rapidly available. Actions need to be taken at each step of the process, with the ultimate goal of connectivity in mind. Manufacturers can look at current equipment, equipment purchases, supplier contracts and customer service communications with an eye toward unification and openness. In an age of global competition, manufacturers that insist on continuing to follow old tactics and procedures will find themselves losing out to their more connected and agile global competitors. Companies need to take a hard look at where they stand now in the connected world and change their mind-set so that they will be able to take full advantage of all that IIoT has to offer. It can be a bold new step into the future, but it will certainly be one that provides incredible advantages to those willing to take the initial steps out of their comfort zone. Factories of the present need to identify at which point they are in the connectivity cycle and make plans now to get on board with IIoT before it really takes off and they get left behind. References 1 The World Economic Forum in conjunction with Accenture. Industrial Internet of Things: Unleashing the Potential of Connected Products and Services, January 2015. http://www3. About Parsec Parsec is the developer of TrakSYS™, a proven operations management software application and solution platform designed to significantly improve manufacturing processes. Parsec is committed to providing best-in-class products and solutions to our worldwide community of clients to assist them in optimizing their manufacturing operations. There are thousands of TrakSYS™ licenses in use around the globe in a wide variety of Industries. TrakSYS™ helps manufacturers to maximize asset utilization and efficiency, increase capacity with no new capital equipment, reduce production costs, decrease lead time, and improve profitability. For more information about Parsec and TrakSYS™ please visit the corporate website at