To understand what a smart factory is, we first must understand what IoT is. The Internet of things, commonly known as IoT, is the centerpiece of the 4.0 industrial revolution. It is the act of bringing the digital world into the physical world by allowing communication and data collection between objects.
Now, a smart factory is one that uses IoT, automation, and self-optimizin monitoring systems to improve manufacturing outcomes such as yield, throughput, life cycle, product quality, and machine operations in a highly digitalized environment. All Overall, switching to smart technologies saves manufacturers a lot of money, which can then be used to acquire more machinery or be otherwise invested to increase production.