9 Core Trends of Cloud Based Manufacturing Technology- Shaping New Rules Globally

February, 2017

The driving factors for the major transformation happening in the field of manufacturing industry are smart technologies and IT upgradations. Most notably among all is cloud computing as it provides reliability, scalability and gives scope for on-demand provisioning of resources. It helps to create a distributed environment and goes hand in hand with economically attractive pay-as-you-go pricing model and can instantly provision for resources which can easily manage agility.

The manufacturing industry will see an increase in IoT technology and big data creating a big impact on the overall growth of cloud based manufacturing market. Cloud technology will act as the key pinnacle helping manufacturing firms to increase business activities and reduce overall costs. In the coming time manufacturers, will continue to adopt the smart devices in their manufacturing and business functions raising the spending on cloud, IoT and big data technologies.

Infoholic Research, a global market research and consulting firm, states: “Worldwide Cloud based manufacturing Market” is expected to grow at a CAGR of 22.9% during the period 2016–2022 to touch an aggregate of $131.15 billion by 2022.

Core trends and strategy to adopt and implement cloud manufacturing processes:

Trend #1: Managed service environment

Manufacturers are adopting cloud IT infrastructure which minimizes and helps to accelerate deployment via instant access to latest application and further integrates with various manufacturing processes to enable high-quality production. Sap’s HANA enterprise cloud integrates with multiple manufacturing processes and enables efficient, high-quality production across the shop floor.

Trend #2: Cloud enabled automation in real time

Manufacturers are embracing automation process which can store high volumes of data through sensors and other devices. In case of a consumer equipment manufacturing company, which has collaborated with Microsoft to help industries which need cooling systems using a communication module based on windows 10 IOT core which collects fridge data and provides real-time data on temperature and other information. Further the smart sensors and on-board electronics will communicate with manufacturer's cloud-based analytics system to provide predictions regarding faults and breakdowns.

Trend #3: Product maintenance and replacement using additive manufacturing

In case any oil exploration companies must replace components for their ship which are sailing, they have to return to the port for repairs. However with advanced manufacturing techniques they have been able to buy produce parts license on-board from the manufacturer using cloud based service, they create a replica of the product part and change it on the go reducing the cost incurred on the supply chain.

Trend #4: Cloud based manufacturing in two-tier ERP strategies

Companies are concentrating on cloud based manufacturing in two-tier ERP strategies to gain better efficiency in material, supplier and logistics planning. It decreases dependency from a single ERP vendor and gives scope for customization to suddenly scale up or down to meet different operational needs. Some of the cloud based two-tier ERP vendors include cincom, Microsoft MSFT and NetSuite.

Trend #5: Three-dimensional product designing

Manufacturing companies are shifting their entire workflow, machines and designs in real time into one cloud platform which helps in faster prototyping and rapidly increase the manufacturing process. It further helps to connect all the designer’s ideas directly with machines and move all the process into the cloud which saves huge amount of time and resources.

Trend #6: Cloud based manufacturing execution system

Manufacturing execution system is an on-premise cloud based manufacturing system that can track data across the company. Further all data is built with proprietary technology architecture which is encrypted and secure. It combines upfront batch manufacturing with packaging which is useful in the medical devices industry where transparent traceability is extremely important.

Trend #7: Virtual system integration

The virtual cloud based manufacturing platform connects different continents. The application lets engineers access key files from remote location using laptop and mobile device. The platform connects CAD applications to virtual workstations with the same responsiveness as with a desktop.

Citrix cloudbridge technology is helping Dallara, a car manufacturing company to mitigate latency between Italy and Indianapolis units by creating a single repository of proprietary data that can be accessed quickly and easily by workers anywhere in the world.

Trend #8: Cloud for big data analytics

Manufactures are opting for cloud solutions to manage their data storage, increase scale and to perform big data analytics. Cloud based solutions help to keep data secure and more accessible. Invensys’s cloud automation software is helping manufactures in creating an industrial business intelligence system which when paired with Microsoft data center provides highly efficient data driven insights for decision making.

Trend #9: Cloud based manufacturing predictive maintenance

Predictive maintenance solution records equipment usage patterns under multiple operating environment’s cloud based manufacturing platform, uses the recorded data and evaluates it with new set of data which helps to predict and form indications regarding performance and health of the equipment’s and their future performance.

The main purpose of cloud manufacturing is to provide a collaborative work environment for the entire manufacturing ecosystem. It helps to acquire best in the market services and accommodate associated resources to complete the manufacturing tasks. It further helps to combine all the regional manufacturing capabilities into a single umbrella.

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