# Smart Manufacturing Application in Precision Manufacturing
## 5 Conclusions  
The main contribution of this paper is the real-world practical implementation of smart manufacturing in a precision manufacturing SME using a systematic approach based on the six-gear smart factory roadmap, supported by the technical architecture of the implementation and the business benefits realized in terms of operational performance, economic benefits, and environmental sustainability.  
This was achieved by applying the connectivity, integration, and analytics stages of the conceptual six-gear smart factory roadmap in practice to build a smart production management ecosystem using off-the-shelf technologies. The connectivity stage focused on the CNC machines' connectivity for real-time visibility of the machines and machining process. The integration stage focused on the vertical integration of IT and OT systems for production data to be exchanged in relative real time across different functions at the office and on the factory floor. The analytics stage focused on digitizing and automating the data collection, analysis, and reporting capabilities to improve the enterprise's business intelligence.  
The business benefits and value created from this implementation were demonstrated using actual data related to productivity improvements and machines' utilization, reductions in downtime waste, cost savings, return on financial investments, and reduction om emissions from the operations over a three-year period, with data compared between before and after smart manufacturing application implementation. Over the three-year period from 2020 to 2022, the operational performance impacts were realized by improvements made to productivity through the machines' utilization rate (improved by 47%) and the reduction in the total factory downtime (reduced by 53%). The cost savings were realized as a result of the lost productivity recovered (GBP 420 K), which was potentially saved by the business. The economic performance impact was realized through the returns on financial investments through implementing the smart manufacturing application, which was returned within a year as a result of the direct savings due to improvements in productivity and downtime cost reductions. The IRR of 40% showed a good profitable investment opportunity in smart manufacturing, achieved by reducing the operational cost overtime. The environmental sustainability impact was realized by the reduction in the total emissions (reduced by 47%), mostly related to the reduction in Scope 2 emissions (reduced by 50%), as a result of energy consumption reductions, which were achieved by changing behaviors and better management of the power consumption of the factory. A significant milestone towards the net zero carbon goal was achieved through smart manufacturing.  
The significance of this work is that it bridges the gap between theory and practice by practically applying the six-gear smart factory roadmap as a rapid tool that can be used as a strategic framework for implementing smart manufacturing applications in industry. The technical architecture discussed in this paper can serve as a technical guide for the practical implementation of smart manufacturing applications, which can help to reduce the complexity of development. Another significant aspect of this work is that it bridges the gap between academia and industry by showcasing the real-world actual business benefits realized from smart manufacturing, as well as the practical implementations, limitations, and opportunities of smart manufacturing applications in the precision manufacturing industry.  
The value created and the impact realized in gaining a competitive advantage and driving environmental sustainability from smart manufacturing discussed in this paper can serve as a case study for academia and industry to help reduce the barriers to adoption and to accelerate the application of smart manufacturing, digital transformation initiatives, and industry 4.0 adoption, especially for SMEs, the backbone of the manufacturing industry.