{"id":56832,"date":"2020-02-11T23:13:06","date_gmt":"2020-02-11T16:13:06","guid":{"rendered":"https:\/\/bahtera.jp\/iot\/"},"modified":"2025-03-20T12:43:26","modified_gmt":"2025-03-20T05:43:26","slug":"iot","status":"publish","type":"post","link":"https:\/\/bahtera.jp\/en\/iot\/","title":{"rendered":"Operational Management, Trend Management, and Predictive Maintenance through the Introduction of IoT in Manufacturing in Indonesia"},"content":{"rendered":"

In the context of IoT in manufacturing, “connecting things to the internet” refers to collecting data on the actual quantities and times of production goods like products, as well as maintenance information for capital goods such as machinery. However, conducting operational and trend management for predictive maintenance, and using that data to prevent machine downtime or analyze the causes of performance degradation, directly contributes to productivity improvements.
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Production Control System in Indonesia<\/p>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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It\u2019s not limited to Indonesia, but it\u2019s often said that the ultimate goals of the manufacturing industry are twofold: “cost reduction through productivity improvement” and “delivering products on time without delays.” From a management perspective, business plans are crafted to maximize growth based on market supply and demand adjustments. However, even if sales increase due to low pricing, it only reduces gross profit, leading to losses from selling and administrative expenses or non-operating costs. On the other hand, raising unit prices isn\u2019t straightforward due to market price considerations. Therefore, process management based on production plans aimed at reducing costs through … <\/p>\n\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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Paperless Solutions to Minimize Physical Contact Between Personnel<\/h2>\n

At our company, we have long asserted through this blog and regular seminars at industrial parks that paperless solutions should be the first challenge tackled to improve operations for Japanese companies in Indonesia. This is not only for cost savings through reduced paper use but primarily to prevent errors in transcribing performance data onto paper.
\nThe typical customer response at the time was, “We can\u2019t do it right away, but we\u2019d like to tackle it when the next budget is available,” which was positive but not seen as an urgent issue. However, with the spread of COVID-19, paperless solutions have become an urgent matter.<\/p>\n

While paperless initiatives have been discussed for over 20 years, reasons like “operational efficiency” or “paper savings” often led to responses like “no budget, maybe next time.” The COVID-19 crisis, however, provided a stronger push for paperless adoption by highlighting the need to “reduce physical contact opportunities to prevent infection risks.”<\/div>\n

Handing over production instructions or daily reports to personnel requires physically approaching their workstation. If a cluster of infections via droplets or contact occurs in a factory, it could lead to line stoppages or, in the worst case, a temporary suspension of operations. Thus, the priority of measures to minimize physical contact has inevitably increased.
\nCurrently, cluster infections of COVID-19 in Indonesia are most common during group worship at religious facilities like mosques or through hospital-acquired infections. Despite the PSBB (large-scale social restrictions) and the ban on Mudik (homecoming), some contact with relatives or acquaintances is still likely. As a result, concerns about the spread of infection when factories resume operations after the Lebaran holiday have not been fully alleviated.<\/p>\n

IoT Solutions to Minimize Indirect Contact via Objects like Paper or PCs<\/h2>\n

Even if physical contact with others is minimized in a factory, the coronavirus can survive for hours on objects like paper or steel. If the virus lingers on paper or shared PCs touched by others, the risk of indirect contact infection remains. Ultimately, this calls for a system that minimizes physical tasks and machine operations, automating processes instead.
\nSpecifically, collecting production performance data for inventory management in a production management system can be automated by linking information from machine counters through a sequencer. Meanwhile, machine operation management\u2014previously handled outside the production system\u2014can be digitized by attaching IoT gateways and sensors to patlights (andon), capturing uptime and downtime data. These are examples of advancing IoT adoption.
\nHowever, due to reduced production and sales from the COVID-19 impact, IT investment is likely the first area to face budget cuts next year. Even if IoT investment isn\u2019t approved, focusing solely on reducing indirect contact through objects can still be achieved by introducing a system where data input is done via individual Android smartphones, mitigating the risk of indirect contact infection.
\nUnexpectedly, the COVID-19 crisis is likely to accelerate paperless and IoT adoption in Indonesia\u2019s manufacturing sector. Moving forward, integrating and automating the entire production process\u2014from production planning and scheduling to manufacturing, labor management, quality control, and operational management\u2014through Manufacturing Operations Management (MOM) will gain increasing attention. This will be driven not only by productivity improvements but also by the need to reduce virus infection risks.<\/p>\n

Why IoT in Manufacturing Is Necessary in Indonesia<\/h2>\n

When visiting customers in industrial parks for system sales in Indonesia, a common remark from personnel has been, “Our president (or chairman) is eager to invest in machinery but reluctant to invest in systems.”
\nThis is a frequent sentiment among small and medium-sized owner-operated companies that have survived in Indonesia by focusing solely on boosting production capacity. This approach worked in an era of steady, growing orders from specific customer clusters, such as exports to Japan or Japanese firms in Indonesia.<\/p>\n

Today, I\u2019m in Cibitung for a pre-sales pitch on an IoT solution for equipment operation management. Post-COVID, manufacturing sites are increasingly interested in automatically capturing operational status via patlights (signal lights) or PLCs to evaluate OEE (Overall Equipment Effectiveness) while minimizing physical contact. Whether the tagline “check operations from home” resonates depends on the client.
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However, in an era where large, stable orders from major clients are no longer guaranteed, and companies must accumulate smaller orders from multiple clients to maintain performance, efforts to enhance competitiveness through productivity-driven cost reductions\u2014the ultimate goal of manufacturing\u2014become essential.
\nThis also applies to the export competitiveness of Indonesia\u2019s domestic industries. Despite a production capacity of over 3 million vehicles, Indonesia\u2019s automotive production has stagnated at under 1 million due to a lack of export competitiveness.
\nIncreasing national wealth requires boosting export competitiveness, and to achieve this through IT-driven productivity gains, the Indonesian government has promoted Making Indonesia 4.0, its version of Industry 4.0. However, concrete guidelines remain absent.
\nAs of February 2020, the mindset is shifting from “we\u2019ll invest in machines but not systems” to “we need this to compete globally.” The purpose of introducing IoT in manufacturing is to collect data on capital goods (machinery and people) to efficiently manage the flow of production goods like materials, work-in-progress, and finished products.<\/p>\n

What IoT in Manufacturing Entails<\/h2>\n

In manufacturing IoT, “things connected to the internet” refer to “production goods (industry goods)” and “capital goods.” Production goods include materials, work-in-progress, and products, while capital goods include machinery and people.
\nThe information collected about production goods includes inputs, outputs, yield, and defects (“results”), while data on capital goods includes direct time (operation or work hours), indirect time (downtime), and conditions like temperature or RPM (“status”).<\/p>\n

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  1. Results: Performance data on production goods \u21d2 Inputs, outputs, yield, defects<\/li>\n
  2. Results: Quality control data on production goods \u21d2 Defect reasons, defect images<\/li>\n
  3. Status: Maintenance data on machinery \u21d2 Direct time (operation hours), indirect time (downtime), temperature, RPM, stroke count<\/li>\n
  4. Status: Maintenance data on people \u21d2 Direct time (work hours), indirect time (break time)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n

    This is the information collected from production and capital goods in manufacturing IoT. Items 1 and 2 were traditionally managed in ERP systems, while 3 and 4 fall under Manufacturing Execution Systems (MES), with the goal of providing data to improve production efficiency.<\/p>\n

    Equipment Maintenance Management<\/h2>\n

    Maintenance involves daily upkeep to prevent machine breakdowns. The maintenance department\u2019s tasks include “preventive maintenance” (e.g.,\u5b9a\u671f\u7684\u306b\u30b9\u30da\u30a2\u30d1\u30fc\u30c4\u3092\u4ea4\u63db\u3059\u308b based on press shot counts or operation hours) and “predictive maintenance” (forecasting signs of potential issues).<\/p>\n

    When consulted about maintenance or spare parts management, clients often back off once costs are mentioned. While they can invest tens of millions of yen in equipment, the lack of a maintenance budget stems from a strong cost perception. I\u2019ve realized it\u2019s crucial to present specific cost-saving figures.<\/div>\n

    Our company offers an IoT system that converts existing patlights or analog meters into numerical data, performs data analysis for predictive maintenance, and visualizes machine uptime and performance changes to enable operational and trend management.<\/p>\n

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