Domestic smart factory introduction companies, productivity increases by 30%
The three major mobile carriers are targeting the smart factory market with 5G as their driving force
5G Helps Smart Factories, But Not All Areas


Could 5G Be the Backbone of Smart Factories?

The Ministry of SMEs and Startups announced on January 31 that it would distribute 5,600 smart factories in Korea by the end of this year. The reason the government is focusing on distributing smart factories as a policy is because various figures for companies that have introduced smart factories have improved.

According to the Ministry of SMEs and Startups, by the end of last year, companies that introduced smart factories had a 30% increase in productivity, a 43.5% improvement in quality, a 15.9% decrease in cost, and a 15.5% increase in delivery compliance. Employment per company increased by 3, and industrial accidents decreased by 17.9%.

In a smart factory, the existing physical manufacturing process machinery or production plant is connected to IoT. The big data generated here is collected and analyzed by AI. Then, a cyber-physical system (CPS) is introduced that can automatically and intelligently control everything from actual machinery to the manufacturing process in virtual space.

This creates a flexible production system that allows for the production of customized products as well as a variety of complex products at minimal cost and in minimal time, through a production system where equipment and parts within the factory are connected and communicate with each other. As process changes improve operational efficiency, they can also help optimize and restructure business models.

Capgemini estimated that the economic impact created by the introduction of smart factories would amount to up to USD 1.5 trillion globally over the five years from 2018 to 2022. Considering that the expected increase in global GDP during the same period is approximately USD 18.4 trillion, USD 1.5 trillion accounts for approximately 8%.

The existing automation industry is accelerating the development of related solutions as the advantages of introducing smart factories and the growth potential of the related market are great. The automation industry is not the only industry interested in this market. The communications industry is also paying attention.


Telecommunications companies turn their attention to smart factory business
The three domestic mobile carriers were the first in the world to transmit 5G commercial waves in December 2018. The first targets were SK Telecom’s Myunghwa Industrial, KT’s AI robot ‘Lota’, and LG U+’s LS Mtron. The 5G service was not provided to the main sales target, mobile carrier customers, until April 2019, five months later.

The three mobile carriers plan to expand their business areas by utilizing the ultra-high speed (eMBB), ultra-low latency (URLLC), and hyper-connectivity (mMTC) characteristics of 5G. The industry believes that 5G has great potential for use not only in the existing mobile communications field, but also in autonomous vehicles, realistic content, and smart factories that require massive data transmission.

Last December, KT aired an advertisement titled “KT 5G AI Factory.” The advertisement introduced the following: △Collaborative robots that respond immediately with 5G ultra-low latency technology, △Accurate and fast voice recognition and machine vision technology with 5G large-capacity data transmission, and △AI control system that controls the entire factory 24 hours a day with real-time connection via 5G. KT aired a similar advertisement last January. The advertisement introduced 5G collaborative robots, 5G AR glasses, and 5G connected cars.

However, it is not difficult to see robots in industrial sites. According to the International Federation of Robotics (IFR), there are about 270,000 robots in domestic industrial sites as of 2018. The collaborative robot introduced in the advertisement is also active worldwide, with about 30,000 units since the release of the UR5 by Universal Robots of Denmark in 2009.

The AI control system that controls the entire factory 24 hours a day with real-time connection via 5G is also developing without much relation to 5G. KT announced 'Giga Sound Doctor' last October. This device is an AI solution that predicts defects based on sound and vibration when attached to equipment. If a device defect is expected, it reports it to the control room, and the network used is Wi-Fi.

A variety of wireless networks are already being used in industrial settings, and data transmission speeds and transmission volumes are increasing with continuous technological development. Factories are already evolving into smart factories even with existing technologies. So, is 5G a technology that doesn’t necessarily need to be introduced to smart factories? Is advertising just advertising?


The potential of 5G smart factories
The industrial automation industry is positive about the feasibility of the scenario shown in the KT advertisement. However, we were still wondering where and how to apply 5G in the real world.

Choi Yoo-soon, team leader of the digital enterprise team at Siemens Digital Industries, said of the KT advertisement, “It is a scenario that is actually possible,” but added, “The concept shown in the scenario cannot be viewed as uniform because the need for introduction varies depending on the type of industry or application process.”

He said, “5G will have a greater impact on the digital transformation of the manufacturing industry when linked with IoT platforms rather than on its own,” and explained, “Most manufacturers are using IoT platforms at the service level for predictive maintenance purposes, and the introduction of 5G technology will further enhance that function.”

Regarding the difference between existing wireless protocols and 5G, he said, “It is the difference between paying for a 5G communication network or using existing wireless protocols without a large cost,” and “Industries (large-scale plants) or applications (predictive maintenance, data acquisition) that can gain great benefits by using 5G while bearing the cost will introduce 5G.”

“In the production site, production costs can vary depending on whether there is a real-time response,” said Jo Gwang-hee, head of Advantech. “Advantech is 5“G is developing a related solution after determining that it can be applied to smart factories in terms of large-capacity processing and real-time response,” he said.

A Hillshire official said that 5G could play a role like the scenario in the advertisement, and that “Hillshire plans to provide both private and public 5G network solutions.” He added that “5G will find its place in the industrial field.”


5G-based solutions will emerge when the market needs them
The role that 5G will play in smart factories is still a matter of concern for the industry. What is clear is that the introduction of 5G will bring about improvements in productivity in the manufacturing industry, whether large or small.

In order to use technologies such as big data analysis, cloud, AI, and machine learning, which are essential for implementing smart factories, data collection, analysis, and processing are essential. To do this, a database must be created by gathering information on various equipment and devices currently in use in the field, and a method to connect this to the IT level is needed.

5G’s ultra-high speed, ultra-low latency, and hyper-connectivity characteristics can play an important role in collecting information at the OT level. An industry insider said, “Given the cases where industrial automation solution suppliers quickly prepared 3G and LTE-based solutions, 5G-based solutions will also be developed in a timely manner in line with market trends.”