Smart factory experience

Smart factory experience What is a smart factory?

What is a smart factory?


A smart factory is a people-oriented high-tech intelligent factory that integrates all production processes from product planning to sales with ICT (Information and Communication) technology to produce customized products at minimum cost and time.

All manufacturing processes become smart
  • Planning and design
    Simulation before
    product production in
    virtual space
    Shortened period,
    customized product
  • Production
    Real-time information
    exchange between
    Mass production of
    various types, enhancement of
    energy facility efficiency
  • Distribution and sales
    Real-time automatic
    orderring according
    to production status
    Reduction of inventory cost,
    cooperation in all fields including
    quality and logistics


Is it a 'smart factory' just because the process of manufacturing products has been changed? The answer is no.
A smart factory relates to all processes related to manufacturing, from product planning and development to mass production, and from order to shipment of finished products. It covers all aspects of factory operation, not only from the application system but also the field automation and control automation areas.


Smart factory seen by stage

The existing smart factories have been classified into ‘Not Introduced – Basic - Medium 1- Medium 2 – Advanced’ depending on the degree of use and capacity of ICT technology. From this year, the Basic level has been divided into two levels consisting of Level 1 - Level 5.

The companies considering the introduction of a smart factory do not have to worry about Level 5 and upgrade from the first stage. As a smart factory can be implemented gradually depending on the company's capacity or situation, it is important to select and concentrate on the appropriate level and capacity according to the circumstances of the company.

At present, many small and medium-sized enterprises (SMEs) are starting a smart factory at the basic levels (Level 1, Level 2), which can be easily started at a relatively low cost, and are satisfied with the performance exceeding expectations.

Even at a basic level, the companies can directly compile and manage the products in real time, and even manage material history (lot-tracking). This must be a big difference before and after the introduction of a smart factory.

Smart factory seen by stage
Standard IOT Object Features Conditions
(Level of construction)
Main tools
Advanced Level5 Autonomous operation Workers, facilities, materials, operating conditions + environment Customized Autonomous progress from monitoring to control and optimization AR/VR,CPS
Medium 2 Level4 Optimization Workers, facilities, materials, operating conditions + environment Optimized Possible to respond in advance through process operation simulation Sensor controller optimization tool
Medium 1 Level3 Control Workers, facilities, materials Analysed Control by analyzing collected information Sensor+ analytical tool
Basic Level2 Monitoring Workers, facilities, materials Measured Monitoring of production information is possible in real time Sensor
Level1 Check environment Identified Partial standardization and data management Barcode RFID

Five Major Requirements

Below are five essential conditions in constructing a smart factory and developing it by level.

  • Digitization of 4M+1E
    The system should be able to recognize each element of 4M+1E(Man, Machinery, Materal, Method, Environment) as the digital values in real time, provide measurable information, and allow communication through telecommunication.
  • Integration
    The system should aim for a horizontal integration that allows an end-to-end information exchange through social networks and value chain and a vertical integration from machinery, which is a lower level, to the corporate business level.
  • Connection with Smart System
    The system should allow for connection with the smart products to be developed in the future based on the communication standads.
  • Intelligence
    The system should provide optimal solutions or predictable solutions using solutions such as algorithms or artificial intelligence.
  • Creation of Engineering Knowledge
    The system should continuously secure and store information to gradually create the manufacturing knowledge for automation based on such information