Industry 4.0 Glossary

What Is Smart Manufacturing?

Smart manufacturing is the process of utilizing technology-driven approaches that leverage internet-connected equipment to monitor and optimize production processes.

It is the utilization of real-time data and connected technologies when, where, and in forms cognizable to both man and machine. The primary objective of smart manufacturing is identifying potential avenues for automating operations powered by data analytics and human intervention in emerging technologies to enhance manufacturing performance.

What Is A Smart Factory?

The term smart factory refers to a highly digitalized and closely connected environment where equipment and systems consistently improve process performances through automation. The self-optimization benefits of smart factories are not just limited to production but also conceivably extend to functions like production planning, supply chain, and even product development.

Benefits Of Smart Manufacturing

The benefits of smart manufacturing are diverse. It stretches across the entire spectrum of the production process and further extends to phases that even precede the process like planning and forecasting. Let us take a look at a few benefits of smart manufacturing.


Smart manufacturing employs the use of advanced embedded sensor technology combined with the power of IoT and data analytics. This helps automatically identify fluctuations in demand relative to supply. Further, this information can help equip the supply chain with the ability to respond to changing times with better agility.


Smart factories comprise environments capable of self-optimization and automatic course correction. The principles behind smart manufacturing can also be utilized to predict and identify aberrations or deviations from prescribed specifications early in the process. Besides just detecting these anomalies, it can also help identify the root cause for effective analysis and appropriate remedy. This will consequently lower the scrap rates and related wastage.

Productivity and Profitability

Valuable insights drawn from data analytics help manufacturers make better decisions, improve quality, and enhance throughput. Smart manufacturing not only ensures less maintenance and downtime but also helps reduce material waste. It fortifies the work environment with improved worker safety standards. This can also indirectly reduce insurance and medical costs.

Smart Manufacturing – The Road To Industry 4.0 And Beyond

Smart Manufacturing does not just stop with automation. It also is not limited to implementation of IIoT. Smart manufacturing brings together automation, connectivity, and intelligence together to deliver the most efficient manufacturing environment. Combining data and technology with human intuition ensures maximum value addition in the manufacturing process.