IOT in Manufacturing- A Complete Guide of Use Cases and Benefits

Have you ever heard about the Internet of Things, also known as IoT? You can find several definitions of IoT, but let’s look at what it means at its core. With IoT, people can connect to digital networks and the Internet using devices like smartphones and computers to share information, have conversations, buy products, and so on. However, Industrial IoT uses the same basic tenants and implements them into machinery to increase efficiency in the manufacturing process.

Before we deep dive into Industrial IoT and its benefits, it may be useful for us to first elaborate on the distinctions between IoT and IIoT.

Internet of Things (IoT)- The Internet of Things is a network of daily devices, appliances, and other objects equipped with computer chips and sensors that can collect and transmit data through the Internet. Most of us use IoT every day.

Industrial Internet of Things (IIoT)- Industrial IoT works in a network of sensors to gather critical production data and uses cloud software to transform this data into valuable insights for the efficacy of manufacturing operations.

The two definitions may look similar, but IIoT is specifically related to the world of manufacturing.  

How Does Industrial IoT Work for the Manufacturing Sector?

IIoT unified equipment gives valuable real-time data, which permits manufacturers and machine operators to make informed decisions. The process looks a little something like this:

  • Sensors collect the data from the machine and send it forward to the cloud

  • The data is passed to the quality monitoring system

  • The analyzed data is sent to the end-user

Industrial IoT in Manufacturing:

Here we will elaborate on the different factors driving the expansion of IIoT in the manufacturing industry. You may notice that these factors work in conjunction with each other, and this is why manufacturers are now more inclined to work with IoT than they were in the past..

  • Reduce Repair Cost: With the Industrial Internet of Things, companies enhance resource use, manage inventory better, decrease machine downtime, capably use energy, reduce overall operational costs, and make new sources of revenue. Smart inventory management solutions can save from 20 to 50% of an organization’s inventory carrying costs.
  • Shorter Time to Market: Faster and more effective manufacturing and supply chain operations allow for a more efficient product cycle time. For example, Harley Davidson leveraged IIoT to reconfigure its York, PA manufacturing facility and managed to reduce the time it takes to produce a motorcycle from 21 days to 6 hours.
  • Automated Facility Management: IIoT-connected sensors can monitor conditions like temperature, moisture, vibrations, and more. With automated facility management solutions, manufacturers can now classify and maintain the conditions for equipment to work at an ideal efficiency.
  • Improved Safety: IIoT helps to make sure a safer workplace. Paired with wearable gadgets, IIoT allows managers to monitor workers’ safety and limit hazardous activities. As well as ensuring worker’s safety, IIoT addresses safety problems in potentially risky environments. For example, in the oil and gas industry, IIoT is applied to monitor gas leakages as it travels through the pipe network and prevent potential injuries.

Use Cases of Industrial IoT in Manufacturing:

Various IoT projects deal with facility and asset management, security and operations, logistics, and customer servicing. Let’s take a plunge into the use cases for manufacturing:

  1. Predictive Maintenance: With the use of sensors, cameras, and data analytics, managers can predict when a piece of equipment will falter. By leveraging streaming data from sensors and devices to rapidly assess current conditions, identify warning signs, deliver alerts, and automatically trigger proper maintenance procedures, IIoT turns maintenance into a quick, automated task.

  2. Asset Tracking: According to a study, 85% of manufacturing companies around the world are aware of asset efficacy practices, however only 15% of those surveyed have executed such measures at a systematic level. The goal of asset tracking is to permit an enterprise to easily detect and monitor key assets, including along the supply chain to enhance logistics, maintain inventory levels, prevent quality issues, and detect robbery.

  3. Connected Operations Intelligence: This use case empowers companies to connect disparate silos of operational data (e.g. manufacturing, supplier, and logistics) into unified, real-time visibility across various systems, people, and assets to make better-informed decisions and improve operational performance.

  4. Operations Management Improvements: This other use case permits companies in the manufacturing sector to swiftly improve how complex processes are monitored, managed, and optimized in order to accelerate smart factory and ‘Industry 4.0’ initiatives. This can be accomplished by extending existing equipment and ERP/MES systems with connectivity, interoperability, mobility, and crowd-sourced intelligence.

Benefits of Industrial IoT in Manufacturing:

The data and use cases already demonstrated probably give you a good idea of the benefits of IIOT in manufacturing, but below are some additional data points on the Industrial IoT benefit dimension:

    • IIOT can give you insights and approvals on reducing energy waste.


    • Sensors can continue to track the machine’s health and notify the managers or operators when maintenance is required.


    • In an IIoT-empowered network, sensors identify the slightest change in the configuration and send alerts to the operators. The staff can temporarily stop production and fix the problem before it’s too late.


    • IIoT can significantly improve the decision-making process in the organization. It unlocks critical data about the performance of different equipment in the network and supplies insights to the appropriate recipients.


Industrial IoT is digital transformation on the grandest scale, and at Dash Technologies, we have the expertise to lead this industrial evolution. With years of experience in IIOT and a wealth of knowledge, Dash proudly stands as the best IoT app development company for your IIOT needs.

If you would like to implement industrial IoT solutions into your operations, please contact us!

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