Digital factory - the digital transformation of production
The most important things in a nutshell
Let's start with the basics of the digital factory at a glance. This information will give you a good introduction. If you would like to delve deeper into the topic, please read on.
- Definition: A digital factory is a holistic approach to digitising and optimising the entire production environment.
- Objective: The overarching objective of the digital factory is to make production planning and control more efficient and error-free through automation, flexibility and continuous optimisation of all processes.
- Structure: It consists of three essential components: method, tools and interfaces.
What is a digital factory?
The digital factory refers to a comprehensive network of digital models, methods and tools – including simulations and three-dimensional visualisations – that are linked together by a uniform data management system.
It is therefore a holistic approach to digitising and optimising the entire production environment. All processes and workflows are continuously optimised through the use of modern technologies such as IoT, real-time data analysis and the integration of IT and operational technology (OT).
The digital factory enables a seamless connection between machines, software and data to make both planning and ongoing production more efficient, flexible and automated.
How does a digital factory work?
The digital factory can basically be divided into three main components: methods, tools and interfaces. These three pillars work closely together to ensure seamless planning, simulation and optimisation of production processes – and thus make digital production possible in the first place.
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Methods are the strategies and procedures used to plan and control production processes.
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Tools include specific software solutions and technologies that support the implementation of the methods.
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Interfaces ensure integration and data exchange between the various tools and systems in order to create a consistent database.
Let's take a closer look at each of these pillars:
Methods of the digital factory
Methods are systematic approaches that are used in digital production. They are usually applied throughout the entire product development process and help to plan and control production processes efficiently.
An example of a digital production method would be simultaneous engineering. In this method, several teams work simultaneously on different aspects of a project so that different development phases can run in parallel. This leads to a significant reduction in overall development time and promotes more efficient collaboration between departments.
Digital manufacturing tools
The tools are the technological solutions that make digital manufacturing methods possible. They support the planning, simulation and optimisation of production processes. Here are some of the most important tools:
- CAD software (computer-aided design) is used to create detailed 3D models of plants and machines. These models form the basis for simulations and the planning of production facilities.
- Simulation software:
- Plant Simulation enables the simulation and optimisation of production and logistics processes in a virtual environment.
- Process Simulate supports the simulation of manufacturing processes and the validation of production plans.
- VR/AR technologies:
- Virtual reality (VR) offers the possibility of virtually visiting and analysing production environments before they are implemented in real life.
- Augmented reality (AR)allows digital models to be superimposed onto the real environment.
- PLM software (product lifecycle management) supports the management of the entire product lifecycle from idea to production. This software enables the integration of all data, processes and business procedures.
- ERP systems (enterprise resource planning) plan and control operational resources such as materials, personnel and production. They ensure the smooth integration of data across different departments.
- MES systems (Manufacturing Execution Systems) monitor and control production in real time and ensure that production processes run efficiently and product quality is guaranteed.
- Digital Twin is a digital representation of a physical object or process that collects real-time data and enables analysis to make improvements and simulate future scenarios.
Interfaces in digital production
The interfaces in the digital factory are crucial for integrating tools and systems. They enable end-to-end data management and smooth data exchange, which are coordinated by a central integration platform.
This integration platform creates a uniform database that all departments can access. This avoids the need for cumbersome isolated solutions. In addition, standardised data formats ensure that no information is lost during transmission and that all data remains up to date and consistent.
To summarise:
The digital factory requires end-to-end data management that ensures a consistent and up-to-date database and thus forms the basis for precise decisions.
Digital manufacturing breaks down existing data silos and enables a free flow of data. This enables more precise resource and predictive production planning.
But that is by no means all: the loose coupling of applications in the digital factory also allows flexible adjustments without affecting the flow of information, making it a future-proof platform that can adapt dynamically to new requirements.
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Digital manufacturing: objectives and areas of application
The digital factory has become a standard for virtual planning and operational management of factories and plants. By using the digital methods and tools mentioned above, it enables companies to plan, simulate and continuously improve their factories virtually before implementing them in the real world.
Good to know: The digital factory not only enables planning, but also the continuous optimisation of processes and structures, making it a dynamic tool for the entire service life of a production plant.
To enable this ongoing optimisation, the Digital Factory supports almost all areas of production. Not only do manufacturing, plant and factory planners benefit from its capabilities, but also the factory operators themselves.
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Production planning and control: One of the main areas of application for the digital factory is the planning and control of production processes. Here, processes are simulated, optimised and monitored in order to achieve maximum efficiency. The factory layout and the placement of machines are also planned digitally before being implemented in reality.
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Product development: In development, digital manufacturing enables the simulation of production processes for new goods.
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Virtual commissioning: Another important area of application is the virtual commissioning of machines and systems. Digital simulation allows systems to be tested and optimised before they are physically installed.
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Quality assurance: The digital factory also contributes to quality assurance by enabling precise monitoring and adjustment of production processes through the digital integration of sensors.
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Logistics planning: The digital factory also supports the planning and optimisation of logistics processes. Storage areas, transport routes and supply chains can be virtually modelled and improved.
Advantages of the digital factory
The digital factory is revolutionising the way production processes are planned, implemented and optimised. Thanks to its holistic approach, which integrates modern technologies and digital tools, it enables more efficient processes and offers companies numerous other advantages:
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Error reduction and cost savings: In the digital factory, production steps are simulated virtually so that errors can be detected and corrected at an early stage. This reduces costs for materials, energy and working time.
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Product quality and time savings: Adjustments can be quickly tested in the digital factory and then implemented without interrupting operations. This speeds up production, reduces downtime and ensures perfectly coordinated products, which minimises complaints and increases customer satisfaction.
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Flexibility and market advantages: The digital factory enables companies to respond flexibly to market changes and new technologies by simulating and implementing adjustments immediately. This allows new products to reach the market faster, giving companies a decisive competitive advantage.
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Better collaboration: In the digital factory, different teams – for example, in development, planning and production – can work on a project simultaneously using digital solutions. The shared digital platform enables information and ideas to be exchanged in real time, which significantly improves collaboration.
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Sustainability: Resources such as materials and energy can be used optimally in the digital factory through better tracking. This means less waste and lower energy consumption, which both saves costs and protects the environment.
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Real-time data analysis: Through the integration of IT and OT and standardised interfaces, the digital factory enables real-time evaluation of production data. This allows processes to be optimised immediately, downtime to be reduced and costs to be lowered.
What is the digital factory not?
The digital factory is a central component of modern production concepts, but it is often confused with other terms or lumped together with them, even though it has clearly definable functions and objectives. To avoid misunderstandings, we would like to briefly clarify what a digital factory is not and what role it plays in the digital transformation of production.
Industry 4.0
Industry 4.0 encompasses the intelligent networking of machines, systems and products that communicate with each other and can even make decisions autonomously in some cases. A digital factory, on the other hand, is a comprehensive concept that describes the integration and use of digital technologies and data throughout the entire production and manufacturing environment.
However, digital production is essential for Industry 4.0, as it provides the necessary infrastructure and data for networking and automation. Without it, the implementation of Industry 4.0 would be virtually impossible.
Smart Factory
Smart Factory describes a production environment in which manufacturing equipment and logistics systems organise themselves and can respond to changes in real time.
While the digital factory provides the digital models, simulations and data necessary for planning and optimising production, the smart factory goes one step further. It uses this data and technology to create a fully automated, flexible and highly efficient production facility.
Curious about the smart factory? You will find all the information you need in our guide. Click here for the smart factory guide.
Implementation of digital production
In the following sections, we explain how to successfully get started with digital production, what steps are necessary and what obstacles need to be overcome along the way.
The first steps
The transition to digital production begins simply with inventory data. Existing building, production and machine data is digitally recorded for this purpose. If subsequent changes or upgrades have been made to the factory that are not included in this data, they must of course be updated.
Further development
Once buildings and facilities have been digitally recorded, the next step is to map and organise the processes, structures and data digitally. This is the only way to find, test and implement new solutions. To do this, it is of course necessary to introduce some of the tools and interfaces mentioned above, some of which will need to be implemented first.
Challenges during implementation
The digital factory has been in use by big players for years. However, implementing a digital factory poses a number of challenges, particularly for small and medium-sized enterprises (SMEs):
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ROI: Many companies are hesitant to make this major investment because the added value of digitised production is not yet clear enough to them.
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Fragmented planning process: In many companies, production planning is divided among several people because different departments need to contribute their specific expertise. However, this increases the risk that important information will not be optimally coordinated, which in turn increases the likelihood of errors.
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Missing data: Many SMEs do not have up-to-date factory layouts or data collection systems on their machines. 3D data, which is necessary for precise planning, is also often missing.
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Lack of risk appetite: However, the biggest challenge lies in digitising existing processes and introducing new tools. This process can be risky, as it often requires profound changes to the very skills and processes that have made the company successful in the past.
The transformation to a digital factory therefore entails considerable risks, but it also presents an opportunity to future-proof the company.
FAQs – Frequently asked questions about the digital factory
How secure is data in a digital factory?
Data security in a digital factory depends heavily on data protection awareness and cybersecurity measures within the company. Encryption, regulated access rights and secure interfaces protect sensitive data. It is important that these measures are regularly adapted to meet current threats.
How much does it cost to implement a digital factory?
The costs of implementing a digital factory vary greatly and depend on factors such as company size, existing IT infrastructure and the desired level of digitalisation. It is usually a significant investment, but one that can be amortised in the long term through efficiency gains and cost savings.
How does the digital factory support sustainability in production?
By simulating and optimising production processes, resources can be used more efficiently, waste reduced and energy consumption lowered. This contributes to more sustainable production and helps companies achieve their environmental goals.
Albrecht Lottermoser is a Senior Smart Factory Expert at MaibornWolff. The mechatronics and engineering sciences expert specialises in automation, robotics, human-robot cooperation and intelligent process control. He supports organisations and companies in numerous research and industry projects relating to smart factories, digitalisation and artificial intelligence.