Equipment Manufacturers (IEMs) Use IoT to Drive Profitability

Jan 29, 2019 5:00:00 AM

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The Internet of Things for an industrial equipment manufacturing business can prove to be a boon. When appropriately used, connected devices can help discover huge potential advantages at every stage—from new product development to delivery and after-sales maintenance and service. Let us look at the three main areas for IE manufacturers to drive profitability, leveraging IoT.

Design, development, and manufacture of products

In global enterprises, the internet of things could provide a data stream that results in a comprehensive view of the productivity and performance of plants and equipment. Managers can then report on the information by product, country, facility, vendor, and other criteria. Connected devices can enable engineers to review real-time data, adjust test runs or environmental conditions based on observations and use the feedback in production. Connected sensors can also support inventory management, with smart alerts to prompt procurement to act when the level of required materials or components fall below a certain level. They can also ensure the productive utilization of expensive machinery and equipment by initiating production only when a pre-set threshold of demand has been achieved.

One of our customers, a Formula-1 team, and a maker of racing cars produces as much as 40TB of data in every test run. Mining and analysis of the accumulated data has proven to be helpful to the company to improve their processes, design, and bills-of-material, to produce faster, more reliable, and safer cars. The connected sensors on their car components deliver performance data and the real-time health of the components.

Likewise, manufacturers of industrial equipment can make their entire production area IoT enabled. For example, the equipment used in the production process like pumps, compressors, industrial trucks, tractors, cutting and machining equipment, etc., can be connected to generate usage data which can help determine their performance, safety, durability, and other critical values.

In summary, IoT helps close the loop between product design and testing, which in turn contributes to the profitability of an organization.

Tracking and improving products throughout their life cycle

Industry equipment manufacturers can use IoT to study how their products perform in the next stage of their existence—once they are out of the factory and in use by customers. They can immediately spot any potential issues in operation small or big and take actions with faster diagnosis and a preventive plan. It also helps IEMs have a thorough understanding of how customers use their products. Based on the information received they could help customers avoid breakdowns and performance problems, and revise the design of products and components to achieve more durable and higher-performing machinery.

They can draw out usage scenarios and conditions they did not anticipate, and modify their designs to better support the productivity and safety of their customers. For example, if manufacturers make machines that enable customers to produce devices or components, it is beneficial to understand the actual workloads and how they change over time.

 Management and utilization of the assets used in the process

The internet of things helps operation managers ensure the usage and efficiency of their equipment and facilities are at 100 percent or as close to it as possible, minimize downtime, and help identify and address any bottlenecks or under-utilization to maximize throughput and profitability. IoT and plant-floor data can be used to predict and prevent equipment failure, improve reliability and reduce downtime. Data collected would lead to insights which when applied right could upgrade the quality and minimize maintenance costs.

At a strategic level, if you aim to maximize the benefits of  IoT, you need to incorporate it into your planning and business process management (BPM), to gain long-term value for your asset-driven business. To know more about how we can help you maximize your profitability, with better production and asset management, please fill the form below to get in touch with me.

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About Author
Luciano Cunha

Luciano Cunha

Chief Executive Officer (CEO) For Luciano, being responsible for To-Increase’s global sales and marketing means unleashing the company’s insight, innovation, and creativity to tell our story and help customers achieve their goals. On the road much of the time, he travels the world to meet with customers, understand their challenges and ambitions, and find the most effective ways to help them advance. Luciano develops and mentors our marketing and sales team, and creates strategies to help the To-Increase worldwide partner channel thrive and grow.
Making Customer Needs the Main Business Driver Luciano and his team have daily conversations with the To-Increase research and development organization to bring customers’ requirements and concerns into the road maps and design of our solutions. Luciano brings his insight to the marketing group to make sure the company’s communications resonate with customers and speak directly to their experience.
“I’m awed by customers’ innovative spirit in taking business management technology past its limits and by their generosity in letting us participate and empower them. I hope to transform our organization to become even more customer-centric than we are today. That means making more resources available to spend productive time with both our customers and partners, so we can ensure that we place into customer businesses effective solutions that fit the evolutionary stage of their operation and the way their people and processes work.”
Empowering a Global Channel
Because To-Increase only sells through partners, readying the channel to be successful in helping customers is a business-critical effort. Luciano aims to meet partners where their interests are. Partners who consider the relationship with To-Increase strategic can rely on our industry specialists to work with them as they plan their growth and serve customers. If partners prefer a less collaborative relationship, they still receive the rich To-Increase expertise and resources to ensure they win the business, perform a successful deployment, and retain a satisfied customer. In working with partners and their customers, Luciano brings to bear his experience of many years of creating successful, customer-focused business development and marketing strategies in many of the world’s countries and regions.
Enabling Customer Success in Challenging Business Environments
Looking into the near future, Luciano expects that customers will continue to expect To-Increase to help them make business sense of unfolding trends and technologies. For example, the internet of things (IoT) will thoroughly revolutionize manufacturing, engineering, and supply chains. Big data will be meaningful and valuable when decision-makers can use technology solutions to transform it into actionable business intelligence that supports key roles and business processes. Mobility will help companies become digital enterprises and move business processes forward from any location, at any time. Team To-Increase harnesses innovation to help customers translate the promise of these technologies into business results.
Before his current role, Luciano for several years was one of To-Increase’s global industry directors, responsible for our industry solutions. His experience also spans more than 17 years in IT and manufacturing management roles. These positions took him into various areas at IBM Brazil, serving as product manager for several software development companies, and included working in senior management at a manufacturing organization in the U.S.
Luciano is married with two young children. Away from work, he enjoys participating in a soccer class together with his son and daughter as well as taking relaxing walks in natural environments with his family.

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