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International Journal of Mechanical and Production

Engineering Research and Development (IJMPERD)


ISSN(P): 2249-6890; ISSN(E): 2249-8001
Vol. 9, Issue 2, Apr 2019, 151-160
© TJPRC Pvt. Ltd.

AN INDUSTRIAL IOT IN ENGINEERING AND MANUFACTURING

INDUSTRIES – BENEFITS AND CHALLENGES

A. SENTHIL KUMAR1 & EASWARAN IYER2


1
Assistant Professor, Department of Commerce, Jain (Deemed-to-be University), Bengaluru, Karnataka, India
2
Dean-Commerce, Jain (Deemed-to-be University), Bengaluru, Karnataka, India
ABSTRACT

Industry 4.0 is the promising area of the industrial revolution and fast-growing network of digitally connected
smart devices, equipment/machines and physical objects. It denotes the use of Industrial Internet of Things (IIoT) in
manufacturing. Industrialists and Manufacturers are already taking part in this transformation by integrating both new
and existing Information and Operational Technologies (IT & OT). IIoT is fairly a new concept for industries, and it is
presenting a huge opportunity in helping enterprises to operate more safely and productively while improving efficiency
and reducing costs. The study was conducted to explore the benefits of IIoT in engineering and manufacturing
industries, to analyse the various challenges on IIoT and to identify the ways to overcome the challenges of IIoT. This
paper analyses how IIoT strategy facilitates to increase customer value, creates different opportunities for competitive

Original Article
advantage, and transform the business process to increase profit in industries. Secondary data was collected from web
sources and journals to identify the benefits and challenges on the implementation of IIoT. Interviews with industry
experts were conducted during October 2018 to obtain their opinion towards employment of IoT and IIoT technology in
the engineering industries. As this paper concentrates only on bringing out the possibilities of implementing IIoT in
engineering and manufacturing industries, this study is basically done as an exploratory research.

KEYWORDS: Benefits, Challenges, Engineering, Internet of Things, Industrial Internet of Things, IoT, IIoT, Industry
Revolution, I4.0, Manufacturing & Technology

Received: Dec 28, 2018; Accepted: Jan 29, 2019; Published: Feb 13, 2019; Paper Id.: IJMPERDAPR201914

INTRODUCTION

Traditional businesses in India are being disrupted with the advent of new digital technologies viz. mobile
device technologies, cyber security, social media, cloud, analytics, machine learning, internet of things and
connecting legacy system through integration platforms. This transformation has given ample opportunities to
redefine the way engineering and manufacturing is run today (Rekha Kodali, 2018). These businesses are expected
to spend 80 per cent of their incremental expenses on technology and it is estimated to grow to almost $4 trillion in
total addressable technology market by 2025 (Nasscom, 2018). Every human being on earth is expected up to six
devices (excluding computer system and mobile phone) will be connected to the internet which links all aspects of
the physical world by 2025. This scenario generates more demand for IoT enabled products and equipments.
Establishing IIoT framework and producing IoT enabled devices to meet out this demand is a big task for many
engineering and manufacturing industries. IIoT (Industrial Internet of Things) is an emerging technology for the
manufacturing industry, which provides an opportunity to operate more safely and productively in an organisation.
Toya Peterson (2016) stated that “the entire maturity cycle from smart sensors and gateways to cloud analytics in

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152 A. Senthil Kumar & Easwaran Iyer

manufacturing space are using its solutions that cater to the diverse needs of customers across the world”. IIoT provides a
number of ways that can extend manufacturing and engineering to bring them fully to make industry for the future.
Manufacturers and industrialists in every sector have a significant opportunity at hand where they can not only monitor, but
also automate many of the complex process involved in manufacturing. IIoT technology provides complex details to the
manufacturers which could not be made available with ease in the legacy systems.

REVIEW OF LITERATURE

A recent executive survey conducted by Forbes Insights found that the biggest challenge in building out IoT
capabilities is the quality of IoT technology. Many companies are facing problems with the adoption of industrial IoT
during identification of automated process for achieving highest effectiveness (Raj Ven, 2018). Adopting IoT technology
in the manufacturing industry is one of the shot ways for getting competitive advantages and it helps to create enterprise
value in the process (Toya Peterson, 2016). Press release of IoT Analytics (2018) said that the 4th industrial
revolution(I4.0) employs a combination of multiple technologies that manufacturers are implementing to realize key use
cases for improving efficiencies, generating revenues and reducing risks. The product and service market of I4.0
is predicted to grow to $310 billion by 2023. As per the survey conducted by the Accenture, Business insider & SAP
(2015) of 1400 owners of business, 60 percent of the global manufacturers will use connected devices to analyse and
optimize processes, 36 per cent of the business leaders understand IIoT, out of this, only seven per cent are able to
implement it. Also it is found that $70 billion would be capitalised by manufacturers in IIoT by 2020 and product
development and assembly costs can be reduced to 50 per cent.

OBJECTIVES

Industry 4.0 is the emerging trend of the industrial revolution and fast-growing network of increasingly smart
connected devices, equipment/machines and physical objects (Paul Daugherty, 2015). It denotes the use of Industrial
Internet of Things (IIoT) in manufacturing. IIoT emphases on the use of cyber-physical systems to monitor the physical
factory processes and make data-based automated decisions. The aim of this article is to provide information to the
company executives in the manufacturing industry about the possible use of Industrial IoT and the way it influences the
process and operation. The study was conducted with the following objectives.

• To study the benefits of IIoT in engineering and manufacturing industries.

• To analyse the various challenges on IIoT

• To identify the ways to overcome the challenges of IIoT

RESEARCH METHODOLOGY

IIoT is in the middle of a massive transformation of engineering and manufacturing industries. Jeffrey Lee (2017)
estimated that the number of connected devices grow to 20 billion in 2020 from 8 billion in 2017. This new model of
connected devices helps to create innovative business models such as automated real-time decision making or
products-as-a-service. At present, manufacturing companies need an IoT strategy to success in the competition market
(https://iot-analytics.com/product/white-paper-iot-strategy-primer/). This paper analyses how IIoT strategy facilitates to
increase customer value, creates different opportunities for competitive advantage, and transform the business process to
increase profit in industries. In order to achieve the objectives of the study, secondary data were collected from web

Impact Factor (JCC): 7.6197 SCOPUS Indexed Journal NAAS Rating: 3.11
An Industrial IOT in Engineering and Manufacturing 153
Industries - Benefits and Challenges

sources and journals to identify the benefits and challenges on implementation of IIoT in the engineering and
manufacturing sectors. Interviews with industry experts were conducted during October 2018 to identify their opinions
towards employment of IoT and IIoT technology in the engineering industries. As this paper concentrates only on bringing
out the possibilities of implementing IIoT in engineering and manufacturing industries, this study is basically done as an
exploratory research.

IoT Vs IIoT

Internet of Things (IoT) is an emerging trend and now it is one of the key elements of Digital Transformation
drive the world in various ways. IoT (Internet of Things) and IIoT (Industrial Internet of Things) are exactly the same thing
(Jeffrey Lee, 2017) but it has a least difference in coverage of its operation. IoT can be used for industrial, manufacturing,
and agricultural applications whereas IIoT emphases on improving connectivity between devices, saving time, efficiency
optimization, and other possible benefits. It plays a significant role in day-to-day impact on businesses and its safety.
The term “IoT” includes all functionalities of IIoT and in addition consumer use-cases such as smart home technologies
and wearables for IoT. The focus of IoT is ‘consumer perspective’. It uses in smart home appliances and house automation
projects. Amazon Alexa, an IoT-enabled device control everything in house from locking doors, changing the temperature,
lights on or off with voice commands etc. Some of the examples for smart home automation projects are Mailbox 2.0, an
IoT enabled mailbox that provides real-time notification for when letters and packages arrive; Holocron Lamp rises up and
gives you light when we wave hand; A Wi-Fi security camera that takes pictures and streams video to a web application;
A Fitbit device for wearable device; Apple’s smartwatch connect internet, communicate to phone and send messages to
other devices; Lobot 2.0 a wearable Headgear for communication with web page; Mango, a wearable device for the
visually impaired for obstacle-detection and GPS navigation; Mimo Baby Monitor: The Mimo Baby Monitor monitors the
baby's respiration and sent the information to the parent's smartphones. IIoT focus workers safety, productivity and
monitors activities and conditions with remote control functions ability such as oil pipelines monitored by drones, chemical
factories, excavators, drilling equipment monitored by sensors, developing smart cities with mix of commercial and IIoT
(Sandeep Raut, 2017).

IIoT is the sub category of IoT. IIoT is the use of IoT technologies in manufacturing and industrial sector.
In manufacturing and production, IIoT incorporates the technologies such as machine learning, big data, sensor data
harnessing, automation and machine-to-machine (M2M) communication. The primary thought behind the IIoT is
that smart machines are better than humans at accurately, consistently capturing and communicating data. Further, these
data can be used for empowering organizations to complete the task in lesser time, solve the problems, save money and
support business intelligence efforts. Sandeep Raut (2017) specified the difference between CIoT and IIoT that if home
appliance refrigerator is connected to the Internet is called as Consumer IoT (CIoT) whereas, the
manufacturing/automobile/factory equipment have sensors connected to the internet is called as Industrial IoT (IIoT).
In manufacturing specifically, IIoT holds great potential for creating eco-system, quality control, sustainable
and green practices, supply chain management and overall efficiency. IIoT facilitates the operational environments of the
industry in two ways: i) it integrates smart connected machines and manufacturing assets with the widespread enterprise
which help to create more efficient and flexible environmentii) improving asset performance through the positioning of
cost effective wireless sensors, easy cloud connectivity and data analytics. Data are gathered from different field and
converted into actionable information in real time resulting in improved business processes.

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154 A. Senthil Kumar & Easwaran Iyer

Companies like Particle offer a fully-integrated


fully IoT platform that provides everything such as necessary hardware,
software and cloud infrastructure to the client need to deploy an IoT product. Particle devices are connected to the Particle
device cloud which provides scalable and reliable gateway between the client’s devices and the web. In October 2018, the
company has introduced the next generation IoT products such as IoT Rules Engine - a drag-and-drop
drag IoT application
builder to accelerate the time to market; Workbench (Developer Preview), a free, all-in-one
all one offering to develop,
develop program,
and debug professional-grade
grade apps for the Particle platform; Mesh SOMs (System on Modules), an enterprise-grade,
enterprise
production-scale
scale version of Particle Mesh (Source: https://www.particle.io/.) This allows consumers to add IIoT like
capabilities to their home automation projects.

Industrial Internet of Things (IIoT) is a rapidly progressing sector accounting for the maximum share in the global
IoT spending (Newgenapps, 2017).. According to International Data Corporation (IDC), USA and Systems Applications
Applica
and Products (SAP) in 2017, sixty per cent of manufacturers at global level will use analytics data tracked using
us connected
devices to examine processes and ascertain optimization possibilities. Figure 1 shows the spending on Internet of Things at
global level in 2015 and 2020.

Figure 1:
1 Spending on IoT at Global Level

BENEFITS OF IIoT IN MANUFACTURING

The usage of IIoT in engineering and manufacturing sector is inevitable in the near future.
future Companies are starting
to use IIoT provides an unprecedented level of visibility throughout the supply chain. IoT embedded devices and software
to manage their vehicle fleets, keep track their vehicles, and correct their paths if it goes to the wrong direction. Using IoT
to track “things” on the field
ld is called as ‘asset tracking’,, where the companies are allowed to track and manage their
inventory. In other words, it can be used to track more vehicles and monitor raw materials or containers in a warehouse.
IIoT helps to ‘predict
predict maintenance and analyse’
anal the situation when equipment is about to fail. Sensors notification will be
sent out to maintenance teams if a problem arises or the equipment reaches its expiry date. This system helps the organiser
to find how often these notification failures happened, create maintenance timelines, service the equipment before it fails.
IIoT enables new sources of customer value. Most of the value stands in powerful analytics and cross-ecosystem
collaboration. It leads to long-term advantage over the competition through several sources viz. unique data sets, superior
algorithms and exclusive partnerships. The following are the benefits of IIoT in engineering and manufacturing industries.

Impact Factor (JCC): 7.6197 SCOPUS Indexed Journal NAAS Rating: 3.11
An Industrial IOT in Engineering and Manufacturing 155
Industries - Benefits and Challenges

• Digitally Connected and Remote Management: IoT enabled tools and machines digitally connect the partners
like user, equipment manufacturers and field engineers that can transmit operational information and commands.
This will help the managers and process heads to identify the key result areas and remotely manage the factory
units to take advantage of process automation and optimization.
• Facility Management: The application of IoT sensors in manufacturing equipment/machines enables condition-
based repair and maintenance alerts. Many critical machine tools in a factory are designed to function within
temperature constraint and vibration ranges. IIoT sensors can monitor these machines and communicate the alert
message when the machine/equipment deviates from its prescribed parameters. Using this alert data,
manufacturers can preserve energy, reduce costs also increase operational efficiency.

• Auto Supervision: IIoT helps to monitor the production flow activities starting from the refining process to the
packaging of final products reach to consumers. This real-time monitoring process provides better management of
operational cost and thus eliminating wastes and unnecessary work in progress inventory. IIoT supports ‘auto-
supervise’ the activities known as ‘process2device’. Workers can transfer the workload to the machine devices
which are embedded with sensors and actuators helps to auto-supervise internal and external processes.

• Real-Time Asset and Inventory Management: IIoT sensors help to locate and monitor key assets, track and
trace the inventory, events across the supply chain and the clients are informed of any significant deviations from
the plans. Digitization has opened up untapped areas to optimize production costs and agility by giving a complete
view of logistics, inventory levels, market demand, etc. (Rekha Kodali, 2018). IIoT applications provides cross-
channel visibility into inventories, so that the realistic estimates of the available material, arrival time of new
material and work in progress can be performed by the managers. This process helps to optimizes supply and
reduces shared costs in the value chain.

• Plant Safety and Security: IoT enables workers to communicate with machines and IoT device apps and
monitors the Key Performance Indicators of health and safety, providing a real-time view of the on-going
activities, property damage or loss during operation time, the number of injuries and illness rates, near-failures,
absences in different terms, vehicle incidents etc. Such communication helps in predicting mishaps and
responding to emergencies in time (Toya Peterson, 2016). IIoT associated big data analysis helps to improve the
overall personnel’s safety, health, and security in the factory.

• Quality Control: IIoT enables the manufacturers to collect aggregate product data relates to raw materials used
and its composition, heat and temperature in the factory field, working environment, waste management, transmit
of products and its impact, customer feeling on using theproduct etc. on the final products. These data can be
utilized for solving various quality related issues and correct them.

• Reduced Downtime: IIoT enables the operation managers to monitory entire real-time manufacturing process,
allowing them to assess the quality and efficiency of each machine and equipment, ultimately reducing downtime.

• Manufacturing Insight and Packaging Optimization: IoT sensors in products/packaging help the
manufacturers can gain insights into the usage patterns, product handling of multiple customers, trace product
deterioration during transit, impact of weather, road and other environment variables on the product. The sensor
data helps the manufacturer to improve their performance in packaging and customer experience. IoT assists

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156 A. Senthil Kumar & Easwaran Iyer

manufacturers to connect machines and control systems together, allowing them to get deep insight into the
manufacturing process (Toya Peterson, 2016).

• Data Analysis: Data are always collected from all the machinery through the IoT sensor device, it can be further
analysed using Big Data for significant and effective decision making.

• Proactive Maintenance: Continuous assessment of machine operation and its devices becomes easy with it.
It helps manufacturers determine the time to repair and take proactive maintenance to ensure seamless production.

• Return on Investment: IoT has great potential to augment the production process and to step the industry to the
next level of success in manufacturing. IoT enables the manufacturer to generate significant business value
through innovation and provide scope for high return on investment (ROI) by connecting an increasing number of
devices, machinery and/or equipment in an intelligent network.

• Logistics and Supply Chain Optimization: IIoT can provide access to real-time supply chain information.
Materials, equipment, and products are easily tracked as they move through the supply chain.
Vehicles, containers, pallets, cases and even different items can be furnished with auto identification tags and tied
to GPS-enabled connections to continuously update location and movement (Sandeep Raut, 2017). All the parties
connected with supply chain can trace interdependencies, material movement and manufacturing cycle time.
This will facilitate on-time delivery report to manufacturer, reducing the potential capital expenditure and cost of
inventory (Marlon Luz, 2014).

• Integrated Operations Dashboard: Different silos of manufacturing, supplier, and logistics operational data can
be grouped using contextualized key performance indicators (KPIs) into unified, real-time dashboards that will
ultimately support companies to make faster and better decisions, identify problems more quickly and improve
performance(RekhaKodali, 2018).

• Scalable IoT Operations Management: Emergence of numerous IoT solutions in the engineering and
manufacturing industry have opened up a requirement for information technology developer teams to provide
special focus in creating a highly scalable system for employing large number of products, big data, and operating
in an heterogeneous environment. It also enables to develop rapid IoT application for getting competitive
advantage in the engineering industry.

• Perform better Data Analytics: An outpouring amount of data is being generated with connected devices,
sensors, and business systems, that helps in manufacturing insights, optimizing business processes and realising
innovative opportunities. IoT Hub is used to manage the two-way communication between the cloud and devices.
Advanced analytics is applied on data collected to disclose new business insights and these are converted into
action through intelligent applications viz. Cortana, machine learning, Power BI etc. Finally the output of
analytics is stored in software like Azure Tables, Azure SQL, Azure Blobs, HD Insight, Azure Data Lake etc.
(Rekha Kodali, 2018). The various uses of IIoT in manufacturing fields are listed in Figure 2.

Impact Factor (JCC): 7.6197 SCOPUS Indexed Journal NAAS Rating: 3.11
An Industrial IOT in Engineering and Manufacturing 157
Industries - Benefits and Challenges

Figure 2: Uses of Industrial IoT

The term Industry 4.0 has become a global term to describe the fourth industrial revolution. Industrialists and
Manufacturers are already taking part in this revolution by integrating both new and existing Information Technology (IT)
and Operational Technologies (OT) and realizing key use cases such as advanced digital product engineering, augmented
operations, data-driven inventory optimization, human-robot collaboration, predictive or proactive maintenance,
everything-as-a-service business models, additive production, data-driven quality control, remote asset testing and remote
service that are improving efficiencies, creating new revenue streams, and reducing risks (IoT Analytics, 2018). One of the
key elements of I4.0 is supporting technologies such as additive manufacturing, drones, augmented and virtual reality,
collaborative robotics and connected machine vision. While implementing these technologies in industries, engineers and
industrialists are facing many challenges and these are described below.

• Security Issues: Security issue is the primary challenge on IIoT technologies. Dr. Irene Petrick, Director of
Industrial Innovation, Intel’s IoT group stated that rapid growth in smart technologies such as connected
machines, globalised computer technologies, robots, smart devices and real-time data analytics in the larger
manufacturing system expected from IIoT need to address potential challenges and the security issues in
implementation. Non-existence of comprehensive cyber security solutions is the main challenge of large scale
engineering industries. The biggest concern as the violations affects individuals as well as company susceptible to
financial and operational risks. As engineering and manufacturing sectors using a variety of IIoT solutions, they
are open to security concerns, cyber risks associated with information technology and operational technology
convergence, and insider threats. Appling IIoT technology will be challenged until it has a concrete security
feature.

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158 A. Senthil Kumar & Easwaran Iyer

• IIoT Integration: Integrating information technology (IT) and operational technology (OT) is another critical
challenge faced by the companies during Industrial IoT implementation. Atmost care should be taken while
integrating these technologies and ensure that the data are communicated without any loss and vulnerability. IIoT
integration require huge amount for implementation and logistically unpractical for several operational businesses.
Normally IoT devices are developed as independent solutions and it is adopted into the engineering and
manufacturing process to become a part of the whole system. However, integration of IT and OT lacks effective
connectivity and synchronization.

• Connectivity and Visibility: Another complicated challenge during implementation of IIoT is the lack of
connectivity between different components and machine management. Frequent troubles are incurred in
synchronizing as a result of internet outages, power loss, manual and technical errors. This will cause in the
removal of connected devices from the digital network, affects the entire production process and require extra cost
in damages. It is necessary to inspect connected machines and equipment in real time and engineers should ensure
that those machines are working with optimum production capacity. Monitoring the life of the machines and
insight into it is also critical in order to find out anomalies and solve the issues before they occur. IIoT will add
additional challenges as you scale it universally.

Overcome the Challenges of Industrial IOT

Engineering and manufacturing companies facing IIoT challenges today may seem overwhelming.
Implementation of quality of IoT technology, investment of huge amount in industry infrastructure and IIoT framework
can be the solution for the challenges of IIoT and thus provide a new opening for business to increase productivity and
growth for those industries. Joseph Zulick (2018) depicts that “Industries that hold a systematic approach of employing
contemporary intelligent data management and analytics systems will get more worth with IIoT. In the revolution of I4.0,
embedding IoT sensors in a new and legacy machines/equipment using in factories connected by an IP address, deliver
alert messages to the decision makers”. At present, engineers and designers are facing a challenge with a new task that how
to identify value and communicate the benefits of IIoT technology adoption for consumers and companies. The following
are the various viewpoints to overcome the challenges of IIoT by the manufacturers.

• Decentralization of Activities: During transformation of traditional system to new IIoT system, many tasks like
service delivery, handling production, fulfilment and maintenance of equipment are the additional work of
machine devices. It will become the task of engineers to spend time for calculating, analyzing, and inspecting how
IoT devices can be integrated to make free time available for other tasks. Decentralisation of management enables
manufacturers to overcome the challenges of IIoT. Activities like developing program scripts for preventing
damages, replacing the machines, creating architectures and user-friendly interfaces can also be concentrated
during decentralisation process.

• Industrial IoT Gateway: Integration of IoT gateway with the existing infrastructure of the company is one of the
solution to meet the challenge of IIoT. It provides a secure connection to any industrial infrastructure and helps to
solve the issues of interoperability and communication with machine-to-machine. For example, Mayuri Patel
(2017) stated that “Industrial IoT gateway can connect the industrial Supervisory Control and Data
Acquisition(SCADA)/Distributed Control Systems (DCS) directly with the Cloud using industrial serial

Impact Factor (JCC): 7.6197 SCOPUS Indexed Journal NAAS Rating: 3.11
An Industrial IOT in Engineering and Manufacturing 159
Industries - Benefits and Challenges

communication protocols such as MODBUS, International Society of Automation (ISA) Wireless Technology,
Open Platform Communication (OPC), Process Field Bus (PROFIBUS) for edge to gateway connectivity and
most promising many-to-many IoT protocol ‘Message Queue Telemetry Transport (MQTT)’ and one-to-one IoT
protocol ‘Constrained Application Protocol (CoAP)’ for gateway to cloud connectivity”

• Edge Computing Market: Edge computing performs the computation function on distributed device nodes
known as smart or edge devices (Rohan Shrama, 2017). It helps to reduce transmission costs, reduce latency,
faster fault response time and increase user experience by transferring data at the edge of networks.
Edge computing helps to transfer the data quickly and performs real-time data analysis. Boosting the ‘edge’
computing market is a modern trend which solves the problem of IIoT challenges through real time reporting.
It transfers relevant data instead of sending bulk data on the cloud. During this computing process, cluster of
gateways is formed through the connection of a number of gateways, which lead to distributed edge computing.

• Implementation of Perception, Terminal and Network Module: Manufacturers can resolve security issues by
implementing ‘Trusted Perception, Network and Terminal Module’. Rohan Shrama, 2017 said that encrypted data
can be transferred by using“data-centric security solutions”viz. web application firewall, secure web gateway and
application delivery controller etc.

• Clustering of IoT Gateway: IoT Gateway clustering helps to solve the problems occurred during the integrations
of IT systems (ERP and CRM) with OT systems (SCADA and MES) and guarantee the continuity of cloud
communication and data storage.

CONCLUSIONS

Automation of engineering and manufacturing industry creates a new evolutionary breakthrough with the service
of Internet of Things. Though IIoT benefits through various ways, the manufacturers are facing many challenges while
implementing it in their industries. This explorative study will be helpful to the manufacturers to understand about the
challenges of IIoT implementation and provide them solutions to overcome it. In order to gain competitive advantage in the
market, manufacturers should take the necessary initiative to differentiate their products in the market and perform
adequate steps to meet price wars. At the same time, producing quality goods using Industrial IoT technology is also
mandatory in the Industry revolution 4.0. This study will provide the scope for further studies in the areas like the
challenges faced by the IIoT service providers, identification of problems faced by the company personnels during the
implementation of Industrial IoT in their industries and the study of efficiency level in production after the implementation
of IIoT.

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Impact Factor (JCC): 7.6197 SCOPUS Indexed Journal NAAS Rating: 3.11

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