Closed-loop manufacturing

Let’s look at how a closed-loop manufacturing environment might operate when DTx is embraced, enabling data collection and timely information delivery.

Imagine a ‘smart factory’ where all the layers of manufacturing systems, from ERP to factory floor (also called “Top Floor to Shop Floor”), work seamlessly and in real-time.

The ERP generates production orders, which, when released, automatically find their way to the various systems on the factory floor.When orders are commenced, usually via a human-machine interface (HMI), a message is automatically sent back to the ERP to notify the order has started.

Along the production route, important operations (such as weighing) record actual values and report these consumptions in real-time, back to the ERP, allowing the ERP to adjust stock-on-hand (SoH) and more effectively manage its inventory. If a trigger level is reached, planners can place supplier purchase orders well before production reaches completion, averting stock-out situations while lowering safety-stock inventory levels.

As widgets are made, these can either be sent to the ERP individually (e.g., high-cost medical devices), sent as serialized cartons (F&B), or grouped as entire pallets of goods—all automatic without human intervention. This is closed-loop manufacturing. Any change in production, such as breakdowns or delays, can be assessed and, if needed, communicated with the customer.