Evaluating the Impact of Smart Manufacturing on Production Efficiency

The research delves into how advancements in smart manufacturing, underpinned by Industry 4.0 principles, are redefining industrial paradigms. By integrating technologies such as the Internet of Things (IoT), virtual reality simulations, and digital twins, manufacturers achieve unprecedented levels of operational efficiency and agility. This paper evaluates these transformative effects through a review of existing literature and case studies, highlighting both opportunities and challenges faced by industries adopting these innovations.

Running Head: RESEARCH REPORT
Research Report: Diagnosis and Evaluation Method for Strategic Planning and Systematic
Design of a Virtual Factory in Smart Manufacturing Systems
Name of the Student
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Author’s Note

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Executive Summary
This project deals with the diagnosis and Evaluation Method for Strategic Planning and
Systematic Design of a Virtual Factory in Smart Manufacturing Systems. The concept of the
virtual factory has been evaluating in the market to increase production of a company in the
market. There are various concepts of the Virtual factory and smart manufacturing system has
been provided in the research. The smart manufacturing in a virtual factory has provided
enormous aids to the company by minimizing the human effort in the industry. The benefits of
the virtual factory have been provided in the research. The aim and objectives of research have
been provided in the research. The use of the smart manufacturing system has been explained in
the research. The implementation of the strategic planning and system design of the virtual
factory has been shown. The factors that influence the strategic planning has been discussed in
the research. The product and process life cycle have been properly configured in the report that
helps in understanding the whole process of the smart manufacturing in the virtual factory. The
challenges in the implementation of the smart manufacturing system in the organization have
been identified in the research. The theoretical content of the research with an experimental set
up has been provided. The results and outcomes of the study have successfully fulfilled the
research aim and objectives. A proper Work breakdown structure has been provided with a Gantt
chart. The results and outcomes of the research h have been properly managed and explained that
have helped in maintaining research goals.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Literature Review........................................................................................................................3
Concept of Virtual factory...........................................................................................................3
Benefits of Virtual factory...........................................................................................................4
Concept of Smart Manufacturing systems...................................................................................6
Challenges in manufacturing systems.........................................................................................8
3. Research Question, Aim and Objectives.....................................................................................9
4. Theoretical Content.....................................................................................................................9
5. Experimental Set up...................................................................................................................10
6. Results and Outcomes................................................................................................................11
7. Gantt Chart.................................................................................................................................11
8. Conclusion.................................................................................................................................13
References......................................................................................................................................15

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1. Introduction
Technology development has been enhanced all over the word in a large scale. Different
industries and factories have been using various types of technology to increase their production
in the market. The smart manufacturing systems have helped in minimizing the human effort in
manufacturing companies. The artificial intelligence used in the machines have minimized the
human involvement in the production area. The concept of virtual factory has been initiated with
the enhancement of technology in the industries. The factors driving the initiation of the
manufacturing companies have been used from the 1980s (Shamsuzzoha, Ferreira, Azevedo, and
Helo 2017). The technology development and enhancement in working induction of the factories
have helped in increasing the production of companies in the market. The concept of the smart
manufacturing system has been derived with the ability of new machines used in the industries.
A virtual factory is a system that automatically solves, predicts and controls all the problems in
the production tasks in the factory. The virtual factory is a fusion of the IT technology related to
the manufacturing sector (Kibira and Shao 2016).
This research deals with the strategic and systematic planning of a Virtual factory in the
smart manufacturing system. A proper concept of the virtual factory and smart manufacturing
systems have been provided in the research. This research focuses on the implementation of the
strategic and systematic design in the virtual factory. There is recommendation provided in the
research that helps in mitigating the challenges involved in the implementation of strategic
planning and systematic design.
2. Literature Review
Concept of Virtual factory

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The virtual factory concept have enhances the normal procedure of the factories in the
market. It has provided a simulated model that helps in enhancing production of the factories.
The virtual concept of the factories has enabled the ethics and values in the factories that
resemble the production rate of the companies (Kunz et al. 2016). The Global companies are
looking for investing in the virtual factory that resembles factory as a product. The life cycle of
factory currently revolves around the principles and methods to increase the production of the
company in the market.
The factory planning has been always a tough task for the industrialist in the market. The
Virtual Factory, sent by the VFF idea, must be for all time synchronized with the Real Factory
planning to accomplish time and cost reserve funds in the outline, ramp-up, administration,
assessment, and reconfiguration of the Real Production itself (Zeng and Yin 2017).
A standout amongst the most important periods of the Factory Life-Cycle happens amid
the Operation and Maintenance stage. All through this stage, the Virtual Factory Framework is
principal in the change and advancement of processing plant (Hao, Helo and Shamsuzzoha
2016). With a specific end goal to finish this undertaking a Factory Image is fundamental to set
up an association with the physical production line by implies of information accumulation,
considering basic equipment in the control circle circumstances.
Benefits of Virtual factory
The implementation of the virtual factory provides scalable, well-defined and clear
approaches to the real production systems. Therefore, this will help in achieving more
improvement than the previous production.
Product and Process Life-Cycle integration

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With a specific end goal to set up an establishment for factory planning, it is important to
build up the stages that can be institutionalized about production line outline (Gong, Berglund,
Saluäär and Johansson 2017). The expectation is to blend the life cycle of the product and the
processing plant thus meeting makes it conceivable to utilize recreations in the plan of a protest
situated community-oriented item from the perspective of the virtual production line to the
genuine industrial facility.
Re-use of Knowledge and Good Practices
Information is inserted and helped through numerous elements. The advancement of
strategies and procedures to formalize the information is ending up increasingly essential
because an organization can enhance its performance in the event that it is able to do producing,
absorption, catching and sharing scholarly resources, learning and great practices (Neicu and
Savii 2016). This could offer assistance increment profitability, decrease preparing times and re-
work enhance item quality and furthermore improve the misuse of mechanical assets, enhance
the correspondence among various groups and advance advancement inside the organization.
Reduction in global response time
VFF is relied upon to enhance the industrial facilities' adaptability and versatility to the
advertise needs because of higher viability and proficiency in the plan, re-arrangement, and re-
building of the manufacturing plant assets and offices (Jain, Shao and Shin 2016). The system
goes for supporting and empowering organizations to accomplish the capacity to play out a
productive increase administration against the foundation of Time-To-Market, Time-To-Volume
and a strict administration of cost, quality and item multifaceted nature.

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Figure 1: Virtual Factory Framework
(Source: Zeng and Yin 2017, pp. 379)
Cost Savings
The virtual representation of the entire production system of a company can be evaluated
with multi-loop procedures for multi-dimensional target systems. The decision-making system of
the industries has been enriched with enhancement of the technology. The manufacturing cost
has been low due to the use of the smart technologies in the production (Grieves 2017). The
virtual factory has also helped in minimizing the time for manufacturing products in the
company. The use of the virtual factory concept provides different aspects of the production by
enhancing the production process.
Concept of Smart Manufacturing systems

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The smart manufacturing is the concept that resembles strategic manufacturing of the
products without harming the environment and other aspects of nature. The smart manufacturing
uses various technologies that help in maintaining the production of the companies in the market
(Siddiqui 2017). Emerging capabilities in the manufacturing sector have provided various
infrastructure for the companies by enhancing growth of the production. The smart
manufacturing and sophisticated computing have helped in maintaining the proper analysis of the
products in the companies (Hwang, Lee, Park and Chang 2017). The use of proper
manufacturing procedure has helped in providing prior enthusiasm in the employees of the
company; the human involvement has been reduced with the implementation of the smart
manufacturing technology.
The less involvement of human has reduced the rate of errors in the production tasks. The
manufacturing system of the companies has provided various infrastructure to entertain the
growth of the production in the companies. The big companies are moving towards the concept
of the smart manufacturing technology for enhancing the production of the company in the
market (Romero, Jardim-Goncalves and Grilo 2017). The Smart manufacturing has served a key
point for the research to identify the changes in the market after the implementation of the smart
manufacturing services provided by the companies. The security of the goods and services might
have been enhanced after the implementation. The use of the Smart Operation and Smart factory
have rapidly accelerated the production of the companies in the market (Wohlfeld, Weiss and
Becker 2017). The use of the Internet of Things has shifted focus of the traditional
manufacturing system to the smart manufacturing systems.
The goals of the company have changed after implementation of the smart manufacturing
technology in the market. The goal of the companies is focusing on the new level of productivity,

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security, and optimization in the market. This has provided new opportunities to the companies
for the development of the company in the market (Chen and Lin 2017). The industrial operation
has changed the scenario for the next five years for the companies in the market, the companies
are looking for the maximum production with minimum cost with the help of the smart
manufacturing systems (Kuhn and Ahrens 2017).
Challenges in manufacturing systems
There have been many advantages of the smart manufacturing systems. On the other,
there have been some limitation soft h smart manufacturing systems. These limitations are
provided below:
Lack of visibility
The smart manufacturing is unable to combine different business transactional data with
operational data to gain full visibility control.
Lack of flexibility
The system is unable to keep pace with the changing pace of the industry. The use of the
smart manufacturing system has helped in pacing up production rate of the factories (Kuts et al.
2017). Therefore, the input of the factories has not been met by the companies that are causing
challenges for the system.
 Isolated systems and proprietary equipment, automation, robots, PLCs and sensors
 A diverse IT landscape, with systems at different maturity levels and varied equipment
per site
 Old and mission‐critical systems and equipment that cannot be altered

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 Multiple data types, including unstructured transactional and time series
 Root cause analysis provides a correlation in various dimensions that help in maintaining the
sources of data. The mobile devices contains poor interface for the implementing roles require
for other users in order to perform a task
3. Research Question, Aim and Objectives
This research focuses on the Diagnosis and Evaluation Method for Strategic Planning and
Systematic Design of a Virtual Factory in Smart Manufacturing Systems. The main research
question is the challenges faced in proposing the strategic plan and system design for the virtual
factory in the smart manufacturing system (Kusiak 2017). The aim of the research is to
implement a strategic plan and system design for the virtual factory in the smart manufacturing
system. The objectives of the research are provided below:
 To propose a strategic plan and systematic design for virtual factory in the smart
manufacturing system
 To analyze the use of strategic plan and in the virtual factory
 To identify the barriers to implementing strategic plan and system design for the virtual
factory in the smart manufacturing system
 To recommend strategies to mitigate challenges in implementing strategic plan and
system design for the virtual factory in the smart manufacturing system
4. Theoretical Content
Rapid product change and services have caused difficulties in implementing proper
strategies in the company. This has caused different challenges in the companies regarding the
product manual in the market. The Smart manufacturing has served a key point for the research

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to identify the changes in the market after the implementation of the smart manufacturing
services provided by the companies. The diversity in the product quality has created different
interest in the customers regarding the products of a company. The virtual manufacturing plant is
an idea that aides in upgrading execution of the organization (Cao 2017). It gives versatile and
proficient execution of the assembling procedure in the ventures. Distinctive huge organizations
in the market are adjusting the keen assembling frameworks. This has helped in actualizing the
virtual processing plant idea in the savvy producing framework. The validity of the data and
information regarding the equipment used in the smart manufacturing system in the companies
have created problems due to the diversity (Kang et al. 2017). Inheritance structures are not
sufficiently agile to adjust to quickly developing needs. All through this stage, the Virtual
Factory Framework is key in the change and progression of preparing plant. With a particular
true objective to complete this endeavor, a Factory Image is key to set up a relationship with the
physical creation line by suggests of data amassing, considering essential hardware in the control
circle conditions (Park et al. 2017). (Kuhn and Ahrens 2017). The big companies are moving
towards the concept of the smart manufacturing technology for enhancing the production of the
company in the market.
5. Experimental Set up
The data has been collected by organizing experiments. The setup has been selected on
various factories that are willing to set up virtual factory concept. The data and information
collected from various online journals and articles suggested that the use of a concept of the
virtual factory have helped in implementing the smart manufacturing system in the market. A
survey is also conducted in the factory to understand views of the factory workers. Out of which
65% workers are ready for the virtual factory and smart manufacturing system. Remaining

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workers think that their job might be in danger due to implementation of virtual factory. The
productivity of the industry has been enhanced in the market with help of the concept of a virtual
factory. The analysis of the data and information have helped in identifying the challenges in
implementing the strategic plan and systematic design of the virtual factory. The use of the smart
manufacturing capabilities in the research have identified the solution to the barriers in the
implementation. It is recommended to use enhanced quality of machines and equipment in the
factory that helps in minimizing the human effort during production.
6. Results and Outcomes
The ability to survive and thriving in an aggressive situation of consistent and flighty
change by responding rapidly and successfully to evolving markets, driven by client outlined
items and administrations. Customary quality measures reflect how all around completed items
meet plan determinations. This could offer assistance increment profitability, decrease preparing
times and re-work, enhance item quality, and furthermore improve the misuse of mechanical
assets, enhance the correspondence among various groups and advance advancement inside the
organization. This could offer assistance increment profitability, decrease preparing times and re-
work, enhance item quality, and furthermore improve the misuse of mechanical assets, enhance
the correspondence among various groups and advance advancement inside the organization. For
SMS, quality additionally incorporates measures of item development and customization.
Conventional quality measurements incorporate Yield, Customer Rejects/Returns, and Material
Authorizations/Returns.
7. Gantt Chart