Optimised production processes thanks to Smart Manufacturing

16.05.2025 by Ümit Günes

Factory hall with robotic arms and production line


 

The Internet of Things (IoT) is increasingly enabling the seamless integration of data analysis into long-established economic cycles. In Smart Manufacturing (in English: “Intelligent Manufacturing”), real-time data and artificial intelligence are also used to make manufacturing processes more efficient, more flexible and more cost-effective. What characterises a so-called “Smart Factory” and what concepts and solutions it can offer to the industry are summarised for you below.  

What is meant by Smart Manufacturing?

Smart Manufacturing is about automating production processes as completely as possible. Machines involved in production are networked via the internet, enabling real-time data exchange. Production lines can therefore be monitored and controlled with minimal human intervention. Essentially, artificial intelligence takes on the task of ensuring optimal networking between the machines in a production chain. Existing technologies are integrated and interlinked so that they can be used as efficiently as possible in manufacturing. Additionally, this digitalisation offers the opportunity to collect data which, when analysed, allows certain predictions to be made. For example, optimisation potential for production or even possible maintenance requirements can be identified at an early stage, allowing manufacturing to be adjusted accordingly.  

Smart Manufacturing is an overarching term that does not refer exclusively to production within a factory, but also includes, for example, market demand, medium-term corporate planning, and the logistics both upstream and downstream of production. 


 

Smart Manufacturing and Smart Production – what is the difference?

As already mentioned, the term Smart Manufacturing refers to the entire manufacturing process, from planning through production to logistics. Smart Production, on the other hand, focuses on the manufacturing processes within a factory. It is about producing the defined product types and quantities as efficiently and cost-effectively as possible. Smart Production offers several advantages:  

  • Thanks to optimal data analysis, manufacturing processes can be optimised and downtimes reduced. Production times are used efficiently, and raw material requirements can be determined more precisely and processed more accurately. 

  • The use of intelligent systems enables a rapid response to potential disruptions and other unforeseen changes in the production process. This improved agility also results in cost reductions and more flexible responses to market conditions. 

  • An important part of a Smart Factory is the use of so-called predictive maintenance systems. Thanks to specialised, interactive sensor technology, disruptions in machinery or in the production process can be identified and rectified more quickly. Potential workarounds can also be determined more rapidly.  

  • Quality control can also be automated in Smart Manufacturing. Machines themselves can check products for defects and, if necessary, remove them from the process in time. Manual quality control is thus rendered unnecessary.  

  • So-called digital twins help with better planning. These are digital representations of production facilities that can be used to simulate potential optimisations or adjustments in the production process. The advantage here is the in-depth evaluation of innovations before they are physically implemented, at significant financial cost. 

What are examples of Smart Manufacturing in Smart Factories?

Smart Factories are increasingly being used in industrial manufacturing. But what is a Smart Factory? Companies such as Mercedes-Benz or Boehringer have been using the opportunities of digitalisation for several years to meet the challenges of the modern market and the general digital transformation.  

  • The Mercedes-Benz Group has equipped its “Factory 56” with WLAN and 5G networks, enabling big data analysis.  

  • In Neckarsulm, the Volkswagen Group has a factory for which innovative design software was developed. This allows employees to produce 3D printing tools independently, even without prior knowledge.  

  • At its Haiger site, the company Rittal produces 8,000 compact enclosures daily using highly automated production control. Manufacturing and shipping are also digitally interlinked, with in-house logistics integrated accordingly. 

  • At the pharmaceutical company Boehringer in Ingelheim, medicines such as tablets are being manufactured automatically for the first time. Based on the insights gained in this Smart Factory, larger production facilities are to be planned and built. This makes it possible to plan large-scale production systems more reliably. 

What do IT systems do in Smart Manufacturing?

What exactly happens in a Smart Factory requires some explanation. We have compiled the most common IT systems for you and briefly explained them. 

Smart Manufacturing: These challenges await you

Despite all its advantages, digital transformation repeatedly presents entrepreneurs with challenges. These are challenges you too will face if you want to optimise your production and take advantage of Smart Manufacturing. But: no change process is easy. It is therefore important that you are aware of potential obstacles in advance so that you can identify and plan for them early on. 

  • The complexity and high costs of a digital transformation process should not be underestimated. Make sure you work with specialised project managers and that your company’s liquidity is not put at risk by such a major project.  

  • Data protection concerns also arise repeatedly when it comes to collecting and analysing big data. You should therefore ensure GDPR-compliant data processing and seek legal advice if necessary.  

  • Smart Manufacturing radically changes the skill profile required of your employees. Open communication and comprehensive training opportunities are therefore absolutely essential and should be factored into resource planning.  

If you overcome these challenges, nothing will stand in the way of smart production and state-of-the-art manufacturing lines for your company. 


 

NB-IoT and LTE-M: Energy-efficient IoT connectivity


NB-IoT and LTE-M: Energy-efficient IoT connectivity

Learn more about the wireless technologies NarrowBand IoT (NB-IoT) and LTE-M. With low energy consumption and long range, they enable reliable connectivity for your IoT applications.

More about NB-IoT & LTE-M

Learn more about the wireless technologies NarrowBand IoT (NB-IoT) and LTE-M. With low energy consumption and long range, they enable reliable connectivity for your IoT applications.

More about NB-IoT & LTE-M

Reliable and energy-efficient networking with NarrowBand IoT & LTE-M
Ümit Günes
Ümit Günes

Marketing Manager IoT

Having been with Telekom since 2008, Ümit possesses a comprehensive understanding of various facets of the Internet of Things. He has a keen interest in the digital transformation of the business world. On this blog, he shares insights into the latest developments and trends in the IoT sector that provide genuine value to customers.