How Manufacturing Industry can Benefit from Convergence of AI, IoT and Blockchain Technology
It was the Industrial Revolution that transformed and modernized the manufacturing sector. Since then the industry has been in a constant state of evolution, trying to find new ways to increase productivity and low production cost. Technological advances of the Digital Era has well aided in the fulfillment of that goal. So far the manufacturing sector has been very forward in the adoption and implementation of the latest technologies to improve their operational structure.
The entire industry is currently going through a massive transition thanks to the new age technologies like the Internet of Things, Artificial Intelligence and Blockchain technology. The convergence of all the above mentioned three is a sure shot way to provide the industry with a decentralized ecosystem that will surely boost productivity.
In this write-up, we will discuss how each of IoT, AI, and blockchain influence the manufacturing sector and what the convergence means to the overall functioning of any manufacturing unit.
New Age Technology and Manufacturing Industry
IoT, AI and Blockchain technology, each of the three has something unique to bring to the table when it comes to making the operational part of any manufacturing unit seamless. The convergence of three creates a great collaboration that helps in production cost-cutting and increase the overall output of the unit. In this section, we will discuss how the implementation of each is essential to the evolution of the manufacturing sector.
IoT in the Manufacturing Sector
The full-fledged use of IoT in the form of smart devices is already happening in the industry. It is the first step of automation and not at all cost-intensive. The basic concept of IoT is that all the devices are interconnected to one another. This helps him supply chain managers to detect any defect or error in the system very easily. It also makes personnel management and personnel interaction very easy. The best part is that communication can happen between managers in a secure environment thanks to IoT.
AI in Manufacturing Sector
If IoT is the first step towards automation then AI completes it. The benefits that come with such a system is that it reduces time and minimizes the scope of error in the chain of operations. Artificial Intelligence takes it to the next level by streamlining the entire process. AI helps in creating a system that is programmed to think like a human. This helps in the fast detection of an error in the case of product recalls.
Not to mention advanced automation enabled by AI can streamline the supply chain process and make it a hassle-free task for the managers. It’s all because such an advanced system reduces the usual time taken for a certain task due to less human interference.
Blockchain Technology in Manufacturing Sector
Blockchain is fairly new as technology goes, but has already gained momentum across industries. It may have been introduced through cryptocurrency, but the technology has used in all sectors. Blockchain is a decentralized ledger technology or platform that does not require the consent of a central authoritative figure to create, share and transfer information and data. It takes minuscule time to complete a transaction.
The best part is that any information that exists in a blockchain is cryptographically secured and cannot be tampered with. The technology of blockchain reduces the number of middlemen that are required to complete a transaction. It allows the manufacturer and the customer to contact each other directly without any via media. Such a system is bound to boost the productivity of any unit. And since all of the data is stored and guarded by high encryption that cannot be opened without a decryption key, it adds values like security, transparency, and trust between manufacturers, suppliers, and consumers.
Blockchain allows the manufacturer to get connected with both the local and international suppliers very easily. Any kind of transaction, even of the cross border variety happens very fast, without incurring any additional costs. It also makes delivery of products and keeping a track of it hassle-free.
The Convergence of IoT, AI, and Blockchain
IoT, AI and blockchain, all three are the wonder kids of the latest technological generation. Integrated it can do great things for the manufacturing industry. To make it clearer to the readers we have taken up a scenario:
If a manufacturing unit is diligently using all three technologies in its operational structure then this is what will happen.
When the employee enters the premises to work on the machinery, the supervisor gets notified via IoT. The same thing happens when the person is taking a break or leaves the work station. That way the supervisor will be able to keep a track of manual labor on the floor. This also helps one to ensure that sufficient resources are there to pull off the work personnel handling becomes easy. IoT also allows one to connect one with overseas branches if any as well.
Artificial Intelligence can help the employee to use the machine that he/she is working on efficiently. In case there are any defects in certain products it gets notified fast. Since it initiates the automation process, the employee can take care of multiple tasks at one time, while the machine works on its own.
Now coming to the last leg, that is supply, payment, and distribution. Blockchain takes care of that efficiently, helping the manufacturer to easily get in touch and conduct transaction with the suppliers. With this technology, the suppliers can deliver the products to the customers at the right time without causing a delay.
Conclusion
There is no denying that when implemented together IoT, AI and blockchain can do wonders but there are certain mild downsides to the system as well. Implementation of such a system demands the building of new infrastructure from scratch, not to mention the cost of implementation and training the employees. Some might not have that much financial strength to do that. However, that is just a onetime thing. Once the system is at work, it has long term benefits for the manufacturers.
