The world’s issues are intricate. The most incredible way to solve any problem is to break it down into smaller, more manageable pieces. Let’s emphasize the manufacturing industry and its complexity for the time being. Let’s focus on the factory of the future in this article.
Manufacturing is accounted for 54% of the world’s energy usage and 20% of its emissions. Rethinking how production, manufacturing, and distribution are done will reduce 45% of world emissions. Therefore, we see enormous advantages in rethinking how factories and manufacturing operations, particularly in light of the current state of unpredictability and supply chain concerns. It’s time to establish the Factory of the Future.
Let’s learn about the “Factory of the Future” and how Blockchain can influence it.
Factory of the Future: Definition
A Factory of the Future is a manufacturing business focused on the future and leverages the most cutting-edge digital technology to develop smart and sustainable operations. It uses creative business strategies and makes the best use of the resources and energy that are readily accessible, that place a strong emphasis on employee empowerment. As a result, its products frequently have a high level of added value and can adapt quickly to changing consumer demands.
Dimensions of Factory of the Future
The idea behind the “factory of the future” is that producers should boost output by making adjustments in three areas: plant structure, plant digitization, and plant processes.
The plant structure of the future will be more adaptable, multidirectional, modular, and use environmentally friendly production methods.
Manufacturers are rapidly using digital technologies. Companies are encouraging efficiency in a variety of ways by enabling better automation.
Utilizing new digital technology, manufacturers are improving lean management and achieving its full potential.
5 Ways Blockchain can help the Factory of the Future create value
- Enhancing the capacity to track and monitor
Businesses can leverage Blockchain to send data more efficiently, accurately, and securely within complex supply chains. For example, it could provide a permanent digital record of the parts, materials, and finished goods, enabling end-to-end visibility and giving everyone access to a single source of truth.
- Safeguarding and monetizing valuable intellectual property
Businesses in the manufacturing sector need IP protection. Along with cost, IP protection is a crucial consideration when selecting whether to make parts internally or purchase them from a supplier. In addition, a company can decide to employ Blockchain technology to demonstrate its IP in the case of a patent dispute.
- Ensuring and streamlining quality control
Expanding customer value is another important objective of the Factory of the Future, which might be achieved by using Blockchain to support quality control. Because of the Blockchain, it is now feasible to provide customers with complete transparency and extensive documentation on the quality of processes and items that require expensive support from centralized parties that control IT platforms.
Blockchain offers immutable records of quality assurance procedures and data on the manufacturing process, as well as helping customers monitor and trace incoming goods across a supply chain. The database uniquely marks each product and promptly records every transaction, update, and quality check made on the Blockchain. This application requires the production setup to have automated quality checks that generate and write measurements directly to the Blockchain.
- Enhancing the value of Machines as a Service (MaaS)
Blockchain is making it possible to employ the novel pay-per-use business model for equipment known as Machines as a Service (MaaS). Under this strategy, a machinery provider bills for the use of manufacturing equipment based on the volume of production it produces as opposed to selling it.
Manufacturers could improve their equipment instead of incurring hefty upfront fees. Moreover, if effectively applied, the MaaS idea will enable manufacturers to increase their production flexibility efficiently.
- Allowing the machine to manage maintenance
Blockchain can facilitate new maintenance methods, including automatic service agreements and shorter maintenance periods. To facilitate outsourced maintenance, users upload service agreements and installation documentation related to each piece of equipment to the Blockchain record, generating a digital twin of the machine. Blockchain technology can then automate the execution and payment of scheduled maintenance.
A machine that requires maintenance can generate a service request, a smart contract, and a new part. Payment is automatically handled when the order has been filled. The Blockchain record is also supported by unchangeable evidence of the maintenance history. These, currently in development apps, improve equipment dependability, simplify monitoring of equipment health and attrition, and offer auditable machinery health evaluations.
Due to Blockchain’s effectiveness in processing transactions, businesses are already looking to technology to address various production-related issues.
The factory of the future will continue to involve a vast network of equipment, components, goods, and value chain partners, such as equipment suppliers and shipping firms. Therefore, the impact of the Blockchain will undoubtedly grow as smart factories link to one another more and more.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.