What Makes a Smart Factory?

A smart cement bag factory is one where machines, sensors, and software work together to optimize production automatically. Instead of operators manually checking machines and recording data, smart systems provide real-time visibility, automated alerts, and data-driven decisions.

Smart Factory Implementation Roadmap Phase 1: Visibility ($2–8K) Phase 2: Monitor ($5–20K) Phase 3: Optimize ($10–40K) Phase 4: Automate ($20–100K) Start small, prove ROI → Basic OEE monitoring pays back in 1 month

IoT Architecture for Bag Factories

Three-Layer Model

Layer 3: Cloud/Application
├── Production dashboards
├── Analytics & reporting
├── ERP integration
└── Remote monitoring

Layer 2: Edge/Gateway
├── Data aggregation
├── Protocol translation
├── Local processing
└── Buffer storage

Layer 1: Machine/Sensor
├── PLC data (speed, counts, alarms)
├── Environmental sensors (temp, humidity)
├── Energy meters
└── Vision/quality sensors

Essential IoT Sensors

Production Monitoring

SensorWhat It MeasuresCostPriority
Production counterBags produced per hour/shift$100–$500Essential
Speed sensor (encoder)Machine speed (RPM, m/min)$50–$200Essential
Proximity sensorMaterial presence, machine position$20–$100Essential
Photo-eyeBag position, counting$50–$200Essential

Machine Health

SensorWhat It MeasuresCostPriority
Vibration sensorBearing/gear condition$100–$500Important
Temperature sensor (PT100)Motor/bearing temperature$20–$100Important
Current transformerMotor power consumption$50–$200Important
Pressure sensorPneumatic/hydraulic system$50–$200Important

Environment & Quality

SensorWhat It MeasuresCostPriority
Temperature/humidityFactory environment$30–$100Optional
Weight scaleBag/material weight$200–$1,000Important
Camera (vision)Visual defects$500–$5,000Optional
Air quality (dust)Particle levels$100–$500Optional

Connectivity Options

TechnologyRangeSpeedCostBest For
Ethernet (wired)Unlimited100 Mbps+$50–$200/nodeMachine PLC connection
Wi-Fi50m50+ Mbps$100–$300/APTablets, mobile devices
Bluetooth LE30m1 Mbps$10–$50/nodeSimple sensors
4G/LTECellular10+ Mbps$20–$50/monthRemote locations
LoRaWAN2–10 kmLow$30–$100/nodeEnvironmental, energy
OPC UAVia EthernetHighFree (protocol)Machine-to-machine

Production Dashboard Design

Key Metrics to Display

MetricUpdate FrequencyVisualization
Real-time output (bags/hr)Every secondLarge number + trend
OEE (current shift)Every minuteGauge (green/yellow/red)
Machine statusReal-timeTraffic light per machine
Waste rateEvery 100 bagsPercentage + trend
Energy per bagEvery hourBar chart
Daily production vs targetEvery minuteProgress bar

Dashboard Placement

  • Main production floor — Large TV screen visible to all operators
  • Manager’s office — PC dashboard with detailed analytics
  • Mobile — Smartphone app for owners and managers
  • Control room — Comprehensive view of all lines

Implementation Roadmap

Phase 1: Visibility (Week 1–4, $2K–$8K)

ActionCostResult
Install production counters$200–$500/machineKnow exact output
Add energy meters$100–$300/machineTrack energy cost
Set up simple dashboard$500–$2,000Visual production data
Create digital shift log$0–$500Replace paper records

Phase 2: Monitoring (Month 2–3, $5K–$20K)

ActionCostResult
Connect PLCs to network$500–$2,000/machineAccess machine data
Install edge gateway$1,000–$3,000Central data collection
Add vibration sensors$200–$500 per pointEarly bearing warning
Deploy cloud platform$50–$200/monthRemote access, analytics

Phase 3: Optimization (Month 4–6, $10K–$40K)

ActionCostResult
AI quality analysis$5,000–$20,000Automated defect detection
Predictive maintenance$3,000–$10,000Prevent breakdowns
Recipe management$2,000–$5,000Faster changeovers
Advanced analytics$2,000–$5,000Root cause analysis

Phase 4: Automation (Month 6–12, $20K–$100K)

ActionCostResult
Auto quality adjustment$10,000–$30,000Self-optimizing machines
Supply chain integration$5,000–$15,000Auto ordering
Full digital twin$20,000–$50,000Virtual factory replica
Robotic integration$40,000–$120,000Automated palletizing

ROI Examples

Example 1: Basic OEE Monitoring ($5,000 investment)

  • Before: OEE unknown, estimated 65%
  • After: OEE tracked, visibility drives improvement to 75%
  • Output increase: 15% more bags/month
  • Revenue gain: ~$5,000/month for a medium factory
  • Payback: 1 month

Example 2: Predictive Maintenance ($15,000 investment)

  • Before: 3 unplanned stops/month, 4 hours average downtime each
  • After: 1 unplanned stop/month, 2 hours average
  • Downtime saved: 10 hours/month
  • Production gained: ~$4,000/month
  • Payback: 4 months

Example 3: AI Vision Quality ($30,000 investment)

  • Before: 2% reject rate, manual inspection
  • After: 0.5% reject rate, automatic inspection
  • Material saved: $2,500/month
  • Customer complaints reduced: 80%
  • Payback: 12 months (plus soft benefits)

Common Pitfalls

PitfallSolution
Over-engineering from day oneStart with Phase 1, prove value, expand
Collecting data without acting on itDefine actions for each alert/metric
Ignoring cybersecuritySeparate IoT network from business network
No change managementTrain staff, explain benefits, get buy-in
Vendor lock-inUse OPC UA and open protocols

Frequently Asked Questions

Do I need reliable internet for IoT? For basic monitoring, no. Edge gateways can store data locally and sync when connected. For real-time cloud dashboards and remote access, you need reliable internet (5+ Mbps). Consider 4G as backup.

Which machines should I connect first? Start with your bottleneck machine — the one that limits overall output. This gives the highest ROI from monitoring and optimization.

Can I retrofit IoT to old machines that don’t have PLCs? Yes. Simple production counters, vibration sensors, and energy meters can be added to any machine regardless of age. For deeper integration (speed control, recipe management), a PLC upgrade may be needed.


Explore IoT-ready machines in the machine directory or read about Industry 4.0 in our Industry 4.0 Guide.