Explain Blockchain's Role In Factory Automation

By Author: alicia adley
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Blockchain, which is most frequently associated with cryptocurrencies like as Bitcoin, is swiftly capturing the attention of manufacturers in the context of mass customisation to increase supply chain visibility or promote supplier cooperation. Blockchain specialists see far less potential for blockchain to supplement current technologies that combine internal production and automation systems in this case. As a result, these external-focused applications seem to have the greatest potential for blockchain degree.

Blockchain technology, also known as distributed ledger technology, records transactions between many parties in a way that is transparent, verifiable, and immutable. Given the number of transactional interactions involved in manufacturing, blockchain experts say blockchain degree has the potential to be a more efficient and dependable mechanism for extended supplier networks to securely store and communicate data.

The capacity of a blockchain developer ...
... to store data in immutable blocks, combined with peer-to-peer, secure record-keeping capabilities, results in an audit trail that is significantly more successful than conventional strategies based on email, siloed systems, and manual record-keeping. At the same time, blockchain degrees promise to be substantially less resistant to fraud, which is becoming an increasing concern for manufacturers.

Several critical themes will determine the future of manufacturing, including inventive applications of automation to address the ongoing skills shortage, globalisation, a trend toward mass customisation, and the rise of networked factories as part of Industry 4.0. Many of the difficulties raised by such developments may be addressed using blockchain.

Blockchain, for example, may give a thorough and real-time picture of a worldwide supply chain while also recording the product chain of custody to assure regulatory compliance and speed up troubleshooting in the case of component failures or product recalls. Blockchain may aid in the development of a framework for organising predictive and proactive maintenance approaches in a larger Industrial Internet of Things (IIoT) strategy.

Blockchain applications in their early stages

Manufacturers are cautiously experimenting with early blockchain use cases. According to an Aberdeen survey of 100 manufacturing companies, 37% have blockchain-enabled business and production processes in place, while another 29% are actively studying the technology to enhance current operations. Traceability is the most anticipated blockchain use in manufacturing (55 percent), followed by records management (53 percent), supply chain automation (51 percent), and cryptocurrency payment (51 percent) (51 percent).

Track and trace is one of the most anticipated blockchain applications, since it will assist manufacturers in fostering enhanced visibility and trust throughout their extended, global supply chains. In addition to the capacity to construct and manage intelligent contracts, blockchain offers an immutable record of the chain of custody of products.

All quality-related transactions, handoffs, and product chain of custody using a blockchain technique are entered into the blockchain and approved by all stakeholders, resulting in tamper-proof records.

Oracle has released a collection of business-ready blockchain apps to help manufacturers get started with the finest blockchain certification. End-to-end traceability of goods and transactions throughout a supply chain to reduce delays and automate record-keeping; lot lineage and provenance for regulatory compliance, counterfeiting, and targeted recalls; intelligent cold chain for tracking and ensuring quality for refrigerated products in the pharmaceutical and food and beverage industries; and warranty and usage tracking for high-value assets to eliminate paper-based processes.

As part of its Blockchain Co-Innovation Program, SAP interacts with over 60 customers and partners to drive blockchain development in areas such as distributed manufacturing, asset intelligence, and track and trace. Its improved approach and route for the pharmaceutical business, for example, assist members in complying with regulations meant to combat drug counterfeiting. Its farm-to-consumer approach brings together food growers and retailers to enhance compliance and boost customer trust in food safety.

Blockchain does not replace current technologies; rather, it supplements them in order to provide a higher degree of trust and confidence. It's ideal for highly regulated industrial firms and processes. It does not replace business processes, but it does serve as a fabric or connecting tissue for everyone, alerting them to delays, integration issues, and unconnected systems.

Although blockchain is not an interconnection layer that continually transmits data between systems, it may be used to integrate essential data from enterprise-level systems such as enterprise resource planning (ERP) or manufacturing execution systems (MES) with a blockchain developer for a particular use case. Consider a new product that cannot be manufactured unless the right product ID is created. Instead of manually pulling information from the ERP system or MES, manufacturers may develop a system that automatically gathers the appropriate data, generates an ID, uploads it to the blockchain, and applies it to a component at the point of conception. Although customers may create these functionalities using a toolkit approach, SAP will release native blockchain versions of its major corporate platforms this spring, enabling for rapid integration.

Conclusion

As a result, blockchain experts anticipate that blockchain developers will ultimately play a role in day-to-day manufacturing processes such as asset management and factory downtime reduction. To start the ball rolling, manufacturers should build the greatest blockchain certification of excellence and initiate proof-of-concept initiatives, according to blockchain experts. Because the technology involves a significant amount of change management, it is also advantageous to join consortia that cater to the appropriate industry sector and assure top-level executive sponsorship.