Top Smart Factory KPIs for your IoT Initiatives
The term “smart factory” may seem like a buzzword to a few stragglers in the manufacturing industry, but the trend to implement an Internet of Things strategy is taking over the sector. According to the IoT Signals Report – Manufacturing Spotlight, published this month by Microsoft and Intel, 72 percent of manufacturers have partially or fully implemented a smart factory strategy today. Also, nearly two-thirds of respondents are in various stages of implementing their IoT strategy.
Where those new to the Internet of Things may get lost is what, exactly, are the best KPIs they should use to measure success of their smart factory initiatives. The report also highlights what were the most popular KPIs among the 500 decision-makers surveyed, which should give you an idea of where to focus your IoT initiatives from the start.
- Increase in OEE – Across all regions and industries, decision-makers surveyed are focused on improving operational performance, including overall equipment effectiveness (OEE), labor efficiency and output. The increase in OEE is KPI is seen as either important or very important by 86 percent of manufacturers.
- Increase supply chain resiliency – The global supply chain issues sparked by pandemic lockdowns and trade wars have made this KPI important or very important for 73 percent of manufacturers surveyed.
- Decrease in reported safety incidents – This KPI is regarded by 67 percent of manufacturers as an important KPI in measuring the success of the smart factory strategy. After all, safer employees are happier and more productive employees, not only during the current environment of labor shortage but also otherwise.
- Reduction of waste – Another 63 percent of manufacturers see the reduction of waste as an integral part of the smart factory transformation.
2W Tech is a technology service provider that specializes in smart manufacturing solutions. Give us a call today and let us show you how the digital transformation can take your business to the next level.