Manufacturing efficiency soars with real-time data and AI-driven simulation

Manufacturing systems face growing pressure from globalization, rapid market changes, increasing product customization, and disruptions such as pandemics or supply chain volatility. Traditional management and operational models often fall short in dealing with these nonlinear and complex dynamics. The study identifies these challenges as catalysts driving the need for digital transformation.


CO-EDP, VisionRICO-EDP, VisionRI | Updated: 31-05-2025 09:23 IST | Created: 31-05-2025 09:23 IST
Manufacturing efficiency soars with real-time data and AI-driven simulation
Representative Image. Credit: ChatGPT

The fourth industrial revolution has pushed the manufacturing sector into a phase of accelerated transformation, where digital technologies are reshaping traditional operations. At the center of this shift is the adoption of advanced simulation methods to streamline production and enhance resilience. A recent peer-reviewed study titled "The Role of Digital Transformation in Manufacturing: Discrete Event Simulation to Reshape Industrial Landscapes", published in Applied Sciences, outlines a comprehensive framework integrating digital transformation strategies with discrete event simulation (DES) to address the growing complexity and uncertainty in manufacturing systems.

The study, authored by researchers from Italy and Colombia, explores how digitalization and simulation-based tools can optimize decision-making in dynamic industrial environments. It emphasizes that the use of DES is essential for testing manufacturing scenarios in a virtual space, enabling risk-free experimentation and process improvement without disrupting actual operations.

What challenges does digital transformation address in manufacturing?

Manufacturing systems face growing pressure from globalization, rapid market changes, increasing product customization, and disruptions such as pandemics or supply chain volatility. Traditional management and operational models often fall short in dealing with these nonlinear and complex dynamics. The study identifies these challenges as catalysts driving the need for digital transformation.

According to the authors, digital transformation is not merely about automating existing processes but requires a holistic redesign of production ecosystems. Technologies such as the Internet of Things (IoT), cloud computing, cyber-physical systems, and big data analytics provide real-time data collection and analysis capabilities. However, integrating these technologies without a structured simulation-based approach can lead to fragmented implementation and suboptimal outcomes.

The research proposes DES as a tool that supports informed decision-making by allowing stakeholders to visualize, simulate, and assess multiple production configurations. By combining real-time data with simulation models, manufacturers can predict bottlenecks, estimate resource utilization, and test mitigation strategies before real-world implementation.

How does discrete event simulation enhance digital manufacturing?

The study introduces a structured framework that places DES at the core of digital manufacturing transformation. The framework consists of four stages:

  1. System Modeling: Mapping existing production workflows, defining key entities (such as machines, operators, and logistics), and setting performance indicators.
  2. Data Integration: Leveraging digital tools to collect real-time data from shop floor systems, which inform simulation parameters and assumptions.
  3. Scenario Simulation: Running multiple "what-if" scenarios in a virtual environment to test the impact of layout changes, demand fluctuations, or resource constraints.
  4. Decision Support: Using simulation outcomes to guide strategic and operational decisions, such as equipment investment, workforce allocation, or lean production adjustments.

A case study included in the research illustrates the application of this framework in a real manufacturing setting. It demonstrated how DES was used to test the effects of production line redesign on throughput and waiting times. The results showed measurable improvements in efficiency, reinforcing the value of simulation in the planning process.

Unlike static models, DES accounts for temporal changes and stochastic variability, making it ideal for evaluating dynamic systems. It enables stakeholders to identify not just average outcomes but also performance under uncertainty, supporting robust, data-driven decision-making.

What are the broader implications for industry 4.0 and smart manufacturing?

The findings highlight that DES, when embedded in digital transformation strategies, can bridge the gap between operational complexity and strategic clarity. The approach supports key Industry 4.0 objectives such as agility, responsiveness, and efficiency. More importantly, it promotes a cultural shift in how organizations view experimentation - from a risky, expensive endeavor to a low-cost, high-value simulation process.

The study underscores the importance of collaboration between IT and operational teams to ensure effective implementation. A successful transformation requires aligning digital infrastructure, data governance, and workforce training. The authors recommend creating digital twins of manufacturing systems, enabled by DES and IoT data, to support continuous monitoring and adaptive control.

Additionally, the research encourages policymakers and industry leaders to invest in simulation capabilities as part of national and regional innovation strategies. Standardizing methodologies and platforms for DES could help small and medium-sized enterprises (SMEs) overcome entry barriers and achieve competitive parity with larger corporations.

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