Definition of Smart Factory
Smart Factory standardizes various data generated from various facilities at the production site, and
informs the real-time operation status collected automatically or manually by people, real-time or
periodically, and it is also a factory equipped with an intelligent integrated control system that evolves
by itself, to reflect ongoing improvements for the optimal manufacturing environment to the field,
through the analysis of the accumulated data and the intellectualization process transforming the
individual's tacit knowledge into the Explicit knowledge of the company.
The Smart Factory can be summarized as a virtuous cycle system plant of people and facilities for
value innovation. The Smart Factory means a factory which implements, using ICT, process
automation based on facilities and logistics automation, factory automation, factory energy
management, product development, supply chain management (SCM) as a collaborative information
management system, and enterprise resource management (ERP). It is the appearance of the future
plant that the machine judges itself and communicates with other machines.
The Internet of Things (IoT) has made this possible. IoT that connects objects embedded with sensors
and communication functions to the Internet is at the heart of the Smart Factory. In other words,
the Smart Factory is a factory that can produce customized products at the lowest cost and within
shortest time, by integrating into IT all processes such as product planning, design, manufacturing,
process, distribution, and sales, and by automating and informationalizing all the processes from
product planning to manufacturing and sales. The Smart Factory can also create quality jobs
by improving the work environment and finding out new fusion products.