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Table of Contents

INTRODUCTION 4
I. Leveraging Data in Manufacturing 6
IS DATA BEING USED PRODUCTIVELY IN THE MANUFACTURING INDUSTRY? 6

DATA-DRIVEN DECISION MAKING IN MANUFACTURING - THE WAY FORWARD 6

THE HINDERING CHALLENGES 7

II. Key Strategies for Data-driven Manufacturing -


The Digital Roadmap 8
TYPES OF DATA ANALYTICS 8

THE MANUFACTURING DIGITAL ROADMAP 10

III. Lead & Develop Manufacturing with Data 19


INTRODUCING FACTORY COCKPIT 19

STARTING YOUR MANUFACTURING DIGITALIZATION JOURNEY? 20


INTRODUCTION
Digitalization has become an indispensable necessity in the
manufacturing industry, transforming traditional processes into
innovative and streamlined operations. With rapid advancements
in technology, manufacturers are recognizing the crucial role
of digitalization in enhancing productivity, efficiency, and
competitiveness. From leveraging data analytics and automation
to embracing the Industrial Internet of Things (IIoT) and artificial
intelligence, digitalization empowers manufacturers to optimize
their operations to quickly adapt to the demands of their customers.

In this guide, we’ll provide a fundamental understanding of the


digital roadmap in manufacturing, while also walking you through
the steps of such a process.

YOU WILL FIND THE ANSWERS TO THE QUESTIONS DISPLAYED ON THE


NEXT PAGE
WHAT ARE THE RESOURCES?

CONNECTIVITY What resources are currently available in the manufac-


turing industry? How to start utilizing such existing po-
tential of one’s equipment and information?

WHAT IS HAPPENING?

VISIBILITY How can manufacturers start their digitalization


journey? What are the most relevant steps?

WHY IS IT HAPPENING?
TRANSPARENCY
What is the digitalization roadmap for manufacturing? What
are the challenges in adopting data analytic practices?

WHAT IS GOING TO HAPPEN?


PREDICTIVE
CAPACITY What are the relevant types of data analytics?
What are the tools that could be used?

HOW TO SELF-OPTIMIZE?

ADAPTABILITY How to meet the challenges of the future and the constantly
changing operating environment?
I. Leveraging Data in Manufacturing
As industries become increasingly interconnected and technologically advanced,
the ability to effectively leverage data holds the key to enhanced operational
efficiency, informed decision-making, and overall competitiveness. Leveraging
data in manufacturing allows businesses to uncover valuable insights, optimize
processes, identify potential bottlenecks, and innovate in ways that were previously
seemingly impossible. It goes without saying that the potential is there, clearly, for
manufacturers to start taking advantage of their current materials. Nevertheless,
the question has to be asked: how effectively is the data being used? What data to
analyze, how to bring them together, and, ultimately, how to leverage the data in
manufacturing?

IS DATA BEING USED PRODUCTIVELY DATA-DRIVEN DECISION MAKING


IN THE MANUFACTURING INDUSTRY? IN MANUFACTURING - THE WAY
FORWARD
The current landscape of the manufacturing
industry suggests that manufacturers do have One of the key benefits of leveraging data in
data available, even a lot of data: from ma- manufacturing is the ability to make informed
chines themselves, from IT systems such as decisions based on real-time insights. With
ERPs, APS, MES, and more. However, despite sensors, connected devices, and machinery
the huge amount of data generated, most of embedded with data collection capabilities,
it tends to go to waste, simply because there manufacturers can gather a wealth of informa-
is no proper collection and processing proce- tion about their production processes, equip-
dure for it. Due to the nature of the industry, ment performance, and overall operational
most processes are quantifiable at almost ev- metrics such as utilization rate, overall equip-
ery level, and with the proper process for han- ment effectiveness, availability, etc.
dling data, the potential for development and
growth for manufacturers is abundant. Not mentioning data analytics yet, having the
transparency and visualization to the data
According to a study in 2021 by World Econom- can already give manufacturers the compet-
ic Forum and Boston Consulting Group (BCG), itive edge of visibility and transparency, being
72% of manufacturing executives considered able to see and understand what is happening
advanced data analytics are more important in the shop floor, the ability to detect bottle-
now than they were three years ago, but only necks as well as improvement ideas from the
39% had successfully scaled data-driven use existing workflows. Only then, this data can
cases beyond the production process of a sin- be analyzed to identify patterns, trends, and
gle product. These numbers show that manu- potential bottlenecks, enabling manufacturers
facturers are becoming increasingly aware of to make proactive decisions and take correc-
the need for utilizing data for their production, tive actions promptly. By having access to re-
yet probably lacking means for it. al-time data, manufacturers can optimize their
production schedules, adjust resource alloca-
tion, and mitigate risks, resulting in improved
productivity and reduced downtime.
72% of manufacturing executives con-
sidered advanced data analytics are
more important now than they were
three years ago, but only 39% had suc-
cessfully scaled data-driven use cas-
es beyond the production process of a
single product.

THE HINDERING CHALLENGES and incomplete data sets from all the different
data sources. This could result in poor data
I NS U F F I C I EN C Y entry and processing, leading to unreliable in-
sights. Decisions made using such false infor-
As mentioned earlier in this guide, one com- mation may do even more harm to the manu-
mon challenge to effective data management facturer’s production than usual.
is the lack of suitable/ appropriate tools. Many
manufacturers may not have the sufficien- UNW ILLINGNESS
thardware, software, or network capabilities to
collect and store data effectively. Data is avail- It is indeed not an easy task to start imple-
able but are also scattered and siloed. With- menting data integration and analytics tools to
out integrations between different systems one’s production. Effective data management
and technologies, it becomes challenging to requires investments in technology infrastruc-
consolidate and derive meaningful insights ture, skilled personnel, and ongoing mainte-
from the existing database. nance, which pose resistance due to financial
resources. In addition, employees in the man-
I NS EC U R I T Y ufacturing industry may resist new technolo-
gies due to lack of understanding and unfa-
Manufacturers dealing with sensitive data, in- miliarity, as well as fear of job replacements/
cluding intellectual property and customer in- displacements. This would result in further in-
formation, face security risks. Concerns about vestments in time and resources for employee
data breaches, cyberattacks, and unautho- training and new management strategies for
rized access can hinder data collection and better employee engagement. All of this cre-
management efforts. ates unwillingness to start the digitalization
process of manufacturers, leading to them
UN R EL I A B I L IT Y sticking to old methods of working.

Meaningful data-driven decision-making must


be based on accurate and quality data. How-
ever, manufacturers may encounter issues
such as data inconsistencies, inaccuracies,

7
II. Key Strategies for Data-driven Manufacturing
- The Digital Roadmap
Understanding the general landscape of data in manufacturing, the current chal-
lenges, and most importantly the importance of leveraging data, manufacturers now
need to familiarize themselves with the journey of digitalizing their production and
start embracing the first steps on this manufacturing digitalization road. With this
guide, we aim to give you the fundamental ideas on how to start building the
strategies for data-driven manufacturing.

TYPES OF DATA ANALYTICS

DE SC R I P T I VE A N A LY T IC S DIAGNOSTIC ANALYTICS

This is the most basic, fundamental type of This is the next branch of analytics and goes
data analytics that focuses on understanding beyond descriptive analytics in a way that fo-
and summarizing historical data to gain in- cuses more on examining data and on digging
sights into events and trends that happened, deeper into causes and reasons behind spe-
helping businesses gain insights into their op- cific outcomes or events. Diagnostic analytics
erations and overall performance. Descriptive allow for answering the “why” and “how” ques-
analytics functionalities include data visualiza- tions related to the data patterns and trends
tion, summary statistics, and exploratory data seen from the collected data.
analysis.
PR ED I C T I VE A N A LY T IC S PRESCRIPTIVE ANALYTICS

Starting from this step of analytics, historical Going a step forward from predictive analyt-
data, statistical algorithms, and machine learn- ics, prescriptive analytics not only forecasts
ing techniques are utilized to, as the name future outcomes, but also suggests the best
suggests, make predictions about unknown or course of action to achieve the desired objec-
future events. The primary objective of predic- tives. Prescriptive analytics utilizes advanced
tive analytics is to go beyond understanding algorithms and mathematical models to ana-
past and current data to forecast what is likely lyze large datasets and simulate different sce-
to happen, using statistical models and algo- narios to recommend the most optimal actions
rithms to analyze data and identify patterns. for the users.

9
THE MANUFACTURING
DIGITAL ROADMAP
VALUE

TIME
CONNECTIVITY VISIBILITY TRANSPARENCY PREDICTABILITY ADAPTABILITY

Despite the challenges posed above, it is still undeniable that manufacturers should start build-
ing more agile factories with digital manufacturing, so as to not waste the potential they already
have with all the existing data foundation, to refine their operations and prepare for future im-
provements. In order to do so, it is important to understand the steps as well as the fundamental
components that fulfill each step of the process. In this guide, we go through this process from
the perspective of manufacturing.

11
1. CONNECTED - SETTING UP THE
DATA COLLECTION PROCESS
DATA FOUNDATION - DEFINE D ATA
AND SOURCES

With the enormous data amount that manu-


facturers might possess, it is important for
them to define and determine the specific data
points that are relevant to their manufacturing
operations and objectives. This could include
information such as production metrics, equip-
ment/ resource performance, quality control
measurements, inventory levels, and mainte-
nance data.

In addition, you as manufacturers need to


define the potential sources from which you
can collect the desired data. Depending on
what system one might have already in place,
sources of data may vary among different
manufacturers. However, the common data
sources in manufacturing include:

Operational systems: such as Man-


ufacturing Execution Systems (MES),
Enterprise Resource Planning (ERP)
systems, Advanced Planning and Sched-
uling (APS), and other software applica-
tions used for planning and managing
production.

Machine connectivity: The machines


themselves provide vital information
such as operational data, including ma-
chine uptime, downtime, cycle times,
etc., how frequently the machines are
used and whether they are being fully
utilized. Data related to the specific man-
ufacturing process that the machines ex-
ecute is also recorded.

Manual Data Entry: Data collected man-


ually by operators or technicians through
forms, checklists, or logbooks.

Historical Databases: Existing databas-


es or data repositories where historical
data may already be stored, such as past
production records or maintenance logs.
Another important step when determining maintenance managers, and factory directors
data and data sources is to inspect data avail- or business managers. That way, the factory
ability and accessibility. Factors such as ease would be supported from the very foundation-
of access, data format, and data compatibility al level of shop floor operations to the deci-
with one’s data collection method and infra- sion-making level of directors and business
structure should be taken into consideration, leaders, everyone from every step of the pro-
so that you can decide whether any sources cess is aware of the information and can col-
would require additional integration or more laborate to solve problems as well as develop
efforts for extraction. Ensuring these elements the production. All are made possible with the
work seamlessly should make the next steps collected data.
for setting up the equipment and connections
easier and smoother. EXAM PLE USE CASES FOR DATA
VISUALIZATION IN THE SHOP
FAC TO RY M ON ITO R IN G – GE T FLOOR
CO N N EC T ED
There could be an endless list of use cases
Once the data is in place, you can start setting for data visualizations in manufacturing due
up the connection between the data sources to the possibilities of how to combine and in-
and the data integration/ acquisition system. terpret data in ways that help improve manu-
In this phase, the necessary network infra- facturing. And as mentioned above, different
structure is required to ensure connectivity users might use the data differently based on
among the tools, and the network should be their job description, however with a common,
configured to allow for seamless and secure holistic goal of optimizing their manufacturing
data transmission. process.

What is the next step after data is collected Shop floor operations
and transferred? Where should you store the
information? How to make use of such data Good data visualization could allow for more
and turn them into something meaningful and effective everyday operation in the shop floor.
beneficial? These questions tend to come, not For example, operators can proactively pre-
actually at this phase but at the very beginning pare setups, materials, and tools for their up-
of the digitalization journey. At this point, you coming jobs based on daily goals and targets
should already have decided on the storage shown on the monitoring tool. With the infor-
and analytics solution for the collected data. mation of machine status and activities, ma-
This could involve setting up a local database chine stops can be minimized as resources
or leveraging cloud-based platforms that pro- are prepared and machine tool issues can be
vide storage, analytics, and visualization ca- attended in a timely manner.
pabilities. Whatever the solution is, you must
ensure that the chosen solution aligns with Production & Business Management
your monitoring objectives and offers the scal-
ability and functionality required. Planning and scheduling data can be present-
ed together with real-time, actual progress of
DATA VI S U A L IZ AT IO N – S E E the production, so that production planning
WH AT ’ S H A P P E N IN G and goal setting could also be more accu-
rate. Reports and analysis KPIs such as lead
The monitoring system should provide re- times, process times, and cycle time help you
al-time visualization of the collected data. For improve resource utilization, production flow,
manufacturers, it is important that dashboards and delivery accuracy. In addition, production
and reports present key metrics and insights efficiency metrics such as OEE, TEEP, MTBF,
in a user-friendly and actionable format so and MTBR allow you to monitor your produc-
that it is easy for anyone to use: from opera- tion, machine time and shift performance and
tors in the shop floor, to production managers, the impact of your development activities.

13
2. PREDICTIVE - ANALYZING AND chine learning and AI technologies are, and
INTERPRETING DATA FOR INSIGHTS: will revolutionize the manufacturing industry
in a lot of ways.
WHAT CAN BE SEEN FROM THE DATA
GATHERED By analyzing real-time and historical data
from sensors, equipment, and maintenance
AD VA N C E D AN A LY T IC S – records, machine learning algorithms can de-
UN D ER S TA N DIN G C A U S E S A N D tect patterns and identify potential equipment
I M PA C T S failures before they occur. This enables manu-
facturers to schedule maintenance proactive-
With advanced analytics, root causes of ly, reduce unplanned downtime and optimize
breakdowns can be identified more easily with maintenance resources. Another aspect or
statistical modeling or causal analysis tech- application of machine learning in manufac-
niques to determine the factors contributing turing lies within the quality control sector,
to breakdown events. Users can also analyze where machine learning models can identify
the relationships between equipment perfor- patterns and correlations that indicate poten-
mance, production parameters maintenance tial quality issues. Manufacturers can use this
activities, and other relevant variables. information to implement real-time monitoring,
detect anomalies, and take corrective actions
Understanding the root causes of breakdowns to ensure consistent product quality.
in manufacturing is like diagnosing an illness.
Just as a doctor needs to identify the underly- For AI technologies such as computer vision
ing causes of a patient’s symptoms to provide and robotics, manufacturers can use them to
effective treatment, manufacturers must un- eliminate manual inspection and reduce hu-
derstand the root causes of equipment break- man error. For example, computer vision sys-
downs to implement appropriate solutions. tems can analyze visual data from cameras
Imagine a patient experiencing recurring and sensors to perform tasks such as qual-
headaches. Without understanding the un- ity inspection, defect detection, or assembly
derlying cause, simply taking painkillers may verification. In addition, AI could also be used
provide temporary relief, but the problem per- for production flow simulations and scenario
sists. However, with a thorough understand- tools. This can result in improved accuracy,
ing of the root cause, such as a sinus infection productivity, and consistency.
or a nutritional deficiency, targeted treatments
can be administered, addressing the source Continuing with the doctor – patient analogy
of the problem and providing long-term relief. from above, similarly to how doctors analyze
Similarly, in manufacturing, comprehending symptoms, medical history, and diagnostic
the root causes of breakdowns allows man- tests to identify the underlying causes of dis-
ufacturers to implement precise solutions eases and come up with the appropriate med-
that not only repair the current malfunctions, ication/ treatment, machine learning models
but also prevent future disruptions, optimize analyze vast amounts of data in manufac-
equipment performance, and enhance overall turing to uncover patterns, correlations, and
operational efficiency. anomalies. Manufacturers then also play the
doctors’ role by deciding on what “treatment”
M AC H I N E L EA R N IN G , A I MOD E LS – to take for their “patients” – machines, equip-
PR ED I C T I N G WH AT WIL L H A P P EN ment, and resources.
With the ability to analyze vast amounts of
data, identify patterns, and make intelligent
decisions, it is not exaggerated to say ma-
Understanding the root causes of
breakdowns in manufacturing is like
diagnosing an illness. Just as a doctor
needs to identify the underlying caus-
es of a patient’s symptoms to provide
effective treatment, manufacturers
must understand the root causes of
equipment breakdowns to implement
appropriate solutions.

15
3. PRESCRIPTIVE - IMPLEMENTING tive analytics in manufacturing, where phys-
DATA-DRIVEN IMPROVEMENTS ical products are enhanced with embedded
sensors, advanced data analytics capabilities,
and connectivity. These smart products can
This is the highest level of data analytics, and
collect real-time data from their surroundings,
it can prepare manufacturers for challenges
analyze it on the device or through cloud-
ahead and anticipate problems even before
based systems, and respond intelligently to
they arise. Prescriptive analytics employs
the insights they derive. Even though the re-
data from sources such as statistics, machine
al-time data-driven responses capability of
learning, and data mining, to anticipate poten-
such products are leveraged in different lev-
tial future outcomes and recommend the most
els of analytics in manufacturing, they help
optimal course of action. It goes beyond pro-
create a foundation for preparing the data for
viding raw data and offers actionable insights;
prescriptive analysis. On the other hand, the
if predictive analytics tell its users what could
prescriptive analytics system can also provide
happen, prescriptive analytics go a step fur-
the recommended actions and insights back
ther and tell manufacturers what should hap-
to the connected products in real-time. These
pen.
products then can respond instantly to the rec-
ommendations, triggering actions, or sending
With such capabilities, it is not too difficult to
alerts and notifications to operators or mainte-
imagine how prescriptive analytics can inno-
nance teams.
vate decision-making, not only in manufactur-
ing processes but also in other parts of the
A few technical considerations for leveraging
business. It’s like being a prophet, allowing
real-time data-driven responses for prescrip-
manufacturers to see what outcomes or ef-
tive analytics include:
fects could possibly be achieved with what
decisions. However, as powerful as it is, pre-
Algorithm optimization: it goes without
scriptive analytics can be very difficult to man-
saying that the machine learning algo-
age and maintain properly, since it requires
rithms used for prescriptive analytics
suitable data infrastructure, as well as many
must be optimizaed regularly for real
other variables and tools to be executed cor-
time execution to ensure quick response
rectly.
times.
CO G N I T I V E & IN T E L L IGE N T
Scalability: The data infrastructure
CO N N EC T ED P R OD U C T S – R E A L-
must be scalable to handle the massive
TI M E D ATA D R IV E N R E S P ON S E
amounts of real-time data generated by
numerous connected products in a man-
Cognitive and intelligent connected products
ufacturing environment.
play an important role in preparing for prescrip-
DI G I TA L F EE D B A C K L OOP creates new revenue streams through
AU TO M AT I O N – N E W S E RV IC E S premium or subscription-based services.
AN D B U SI N E S S MO D E L S
Product Lifecycle Management: Con-
Another possibility enabled by prescriptive tinuous monitoring of products through-
analytics the continuous monitoring and feed- out their lifecycle provides manufacturers
back loop, where the analytics tools contin- with valuable feedback on product per-
uously monitor the outcomes of the recom- formance, reliability, and customer usage
mended actions as well as gather feedback patterns. This information informs prod-
from the connected products and manufactur- uct design improvements, helps iden-
ing processes. This feedback can be used to tify opportunities for feature enhance-
validate the effectiveness of the recommen- ments, and supports future product
dations and refine the prescriptive analytics iterations or new product development.
model.
Above are only a few among many ways
In addition, continuous monitoring and feed- manufacturers can utilize prescriptive ana-
back loops can also contribute to the develop- lytics for improving/ developing new services
ment of new services and business models, and business models for their manufactur-
based on the following: ing production business. The ability to adapt
and innovate based on continuous feedback
Market understanding: the monitoring and data-driven decision-making would allow
of customer behavior, preferences, and manufacturers to remain competitive and suc-
usage patterns provides manufacturers cessful in the dynamic and rapidly evolving
with real-time data on market trends and manufacturing landscape.
demands. This data allows companies to
identify emerging needs and opportuni-
ties, leading to the development of new
services that align with customer expec-
tations.

Personalization: By analyzing real-time


data from connected products, manufac-
turers can use predictive analytics to an-
ticipate customer requirements and tailor
services to individual preferences. This
personalization enhances the customer
experience, fosters brand loyalty, and

17
Like a conductor guiding the symphony,
data-driven decision-making leads
manufacturing to excellence. Being able to
utilize and analyze real-time data, manu-
facturers can make proactive adjustments,
better forecasting, and an orchestra of
insights to optimize their production per-
formance.
III. Lead & Develop Manufacturing with Data
INTRODUCING FACTORY COCKPIT

As can be seen from the information above, data connectivity, collection, and ana-
lytics are neither easy nor straightforward tasks. While the challenges might have
been realized and acted upon with different approaches, tools for data manage-
ment in manufacturing are not yet familiar to manufacturers. Even when different
data systems are in place, information could be scattered and siloed without ef-
fective communication among each other. Therefore, we have developed Factory
Cockpit, a solution that integrates and analyzes data from shop floor devices and
manufacturing IT systems, bringing transparency and situational awareness to its
users. With 40 year of expertise in factory automation, we believe this solution is the
next step for manufacturing, pioneering the digitalization journey for manufacturers.

Built exactly on such an idea of bringing Within manufacturing, it is always import-


data from shop floor devices and IT sys- ant to utilize and optimize the existing
tems together under one comprehensive equipment, be it the systems, machines
platform, Factory Cockpit provides re- themselves, or the information they carry.
al-time situational awareness, visualiz- However, an “optimized” process does not
es and analyzes the data, allowing you mean there is no extra space for improve-
to make well-informed decisions on your ment. It is important to remember that
production. As a result, the production pro- there is always a higher level of efficiency
cess becomes more transparent across to strive for. Factory Cockpit could be the
the factory and supply chain partners, pro- platform that, together with its users, con-
viding tools for continuous learning, da- tinuously scale and develop the status of
ta-informed production development and your production as new goals are created
decision-making within the manufacturing for maximizing your manufacturing.
context of the solution’s users.

19
INTERESTED IN STARTING YOUR
MANUFACTURING DIGITALIZATION
JOURNEY?

CONTACT US: WWW.FASTEMS.COM/FACTORY-COCKPIT/BOOK-A-DEMO

Topi Judén Jussi Pekkala


Head of Business, Sales Manager
Digital Manufacturing Digital Manufacturing

tel: +358505927750 tel: +358504473307


email: topi.juden@fastems.com email: jussi.pekkala@fastems.com

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