Development of Innovative Strategies for the Korean Manufacturing Industry by Use of the Connected Smart Factory (CSF)

A smart factory refers to a hyper-connected network-based integrated manufacturing system. It acquires all information on manufacturing facilities in real time through the Internet, autonomously changes a manufacturing method, replaces raw materials and ultimately implements an optimized dynamic production system. The realization of top three integrations (integration of production system, integration of product life cycle, integration of inter-company value chain) is a key factor for the success of a hyper-connected smart factory. First, the capability of vertical integration represents the ability to realize the vertical integration of a production system (sensor-control-MES-ERP) and customized production and respond to traditional static production processes. Second, the capability of integrating product life cycle means the optimization of tailored production through complete information exchange after the enterprise integration of product life cycle. Lastly, horizontal integration refers to the capability of providing products and services on time through close inter-company collaboration after integrating inter-company value chain and information network. From this standpoint, this study proposes the success factors which are critical for the successful introduction of hyper-connected smart factory.