We define a Smart Factory as a factory where physical production processes and operations are combined with digital technology, smart computing, and big data to create a more opportunistic system for companies that focus on manufacturing and supply chain management.
The Smart Factory Elements make up a control loop. According to this control loop, production is planned (Planning & Scheduling) based on specifications from different sources and a plan is then implemented (Execution). The data collected is analyzed (Analytics) to make forecasts (Prediction).
Smart factories optimize efficiency and productivity by extending the capabilities of both manufacturing devices and people. By continuously improving the productivity of manufacturing processes, smart factories can lower costs, reduce downtime, and minimize waste.