The Maintenance Manager’s Guide to Smart Manufacturing

While the phrase ‘smart manufacturing’ can often seem complex, it’s really just about using information and technology to get the most out of your team and resources. As AI gets more powerful, sensors get smarter, and integrations get more seamless, manufacturers are finding ways to accelerate smart manufacturing across their operations. 

But how do these processes affect maintenance teams? This guide will answer that question. It covers smart manufacturing through a maintenance lens: what it is, which technologies it uses, its benefits, and how you can use it in your facility to reduce downtime, cut maintenance costs, and improve efficiency.

Key Takeaways

• Smart manufacturing is the result of introducing technology that collects, analyzes, and acts on data. 
• Smart manufacturing initiatives can reduce unplanned downtime by up to 50% through real-time monitoring and predictive analytics.
• ROI for smart manufacturing is typically achieved within 12-18 months through reduced maintenance costs and increased production capacity.
• Integration with existing maintenance management systems is critical for successful implementation.
• Successful smart manufacturing requires both technology adoption and workforce development.

What is smart manufacturing?

Manufacturers are generating more data than ever from their assets and workforce, which is saying something for an industry that has always been one of the top producers of data. A smart manufacturing facility takes that data and introduces the right tools to connect, extract, analyze, and act on it in real-time.

In a smart manufacturing environment, everything is connected, from the machines to the  systems and processes, and the people that work with them. Machine data informs operational planning, which informs maintenance strategy, which informs the business’s bottom line. 

Manufacturers in smart settings are working from a completely different playbook than their traditional counterparts. Rather than going off gut feel, institutional knowledge, and reactive problem-solving, decision makers in a smart facility use data from connected equipment, artificial intelligence insights, integrated tools, and real-time data analytics to make informed, condition-based decisions. 

When the right information is gathered at the right time and used in the right way, manufacturers can increase output while decreasing downtime and maintenance costs.

Which key technologies are included in today’s smart manufacturing systems?

A smart manufacturing facility needs to capture relevant data, analyze it, make decisions about it, and make it actionable to the people who affect production. This requires an ecosystem of technologies that interact with and rely on one another to paint a clear operational picture. 

Internet of Things (IoT) sensors 

What they do: When applied to critical equipment, machine sensors provide real-time asset information that enables condition-based asset monitoring and predictive maintenance. 

A manufacturing operation might use the following sensors: 

• Vibration sensors that monitor motors, pumps, and bearings to detect misalignment or wear that may lead to breakdowns or issues.
• Thermal sensors attached to electrical panels or mechanical systems to sense when they begin overheating.
• Ultrasonic sensors that identify when high-frequency sound waves might signal a gas leak or an early-stage bearing failure.

Manufacturers that use IoT sensors can do two important things:

• Know exactly what state critical assets are in, down to the slightest changes that frontline workers may not catch.
• Use ongoing machine data to build predictive models, including which circumstances typically lead to problems, and how to set up controls to predict and prevent them before they occur.

Adoption of IoT sensors continues to rise across shop floors. In our 2025 State of Industrial Maintenance Report, nearly a third of survey respondents reported that they already use sensors to monitor their critical equipment, and 41% were in the testing or consideration stage.

AI and machine learning technologies 

What they do: AI and machine learning technologies help with critical decision-making by collecting data and delivering the right information to the right people at the right time, such as predicting when a machine will fail or helping technicians troubleshoot in the field. 

Once a manufacturing operation has the means to capture data from machines and frontline work, they can apply AI and machine learning to make decisions with that data. For example, a facility could adopt a mobile computerized maintenance management system (CMMS) with an AI assistant that uses machine data to predict when a machine might fail, and automatically generate a work order based on that data. 

Our 2025 State of Industrial Maintenance Report predicted that by the end of 2025, 65% of industrial maintenance organizations were using AI in some capacity. 

Digital twins

What they do: A digital twin is a computerized replica of a physical object or process. It allows manufacturing teams to test asset modelling, process changes, and maintenance scenario planning without impacting production output. 

In manufacturing, systems twins are often used to understand and predict how digital processes will affect physical outcomes. For example, a pet food manufacturer could use a system twin to understand how a new regulatory process could impact overall output. With those results, they could then preemptively adjust their production and maintenance schedules for critical assets to avoid lost production time.

Digital integrations 

What they do: Integrations allow smart manufacturers to connect data across systems so it triggers action where it’s needed. In other words, they help get the right information into the right systems and teams. Common integrations include enterprise resource planning (ERP) software, CMMS technology, manufacturing execution systems (MES), and more.

A manufacturer that already has IoT sensors installed could integrate with a CMMS to build a predictive or condition-based maintenance strategy that’s informed by real-time machine data and frontline maintenance data. 

In this scenario, rather than relying on reactive or preventive efforts, integrating with a CMMS allows the entire maintenance strategy to start with asset condition. This not only extends asset health, it also cuts down on maintenance costs, both in the form of unnecessary work and in downtime. 

How smart manufacturing impacts maintenance operations

Where there’s smart manufacturing, there’s also the opportunity for smart maintenance. 

Maintenance teams can leverage the data and intelligence of a smart manufacturing setting to carry out a predictive maintenance strategy, which, according to McKinsey, reduces machine downtime by 30-50% and increases asset life by 20-40%.

Where there’s less downtime, there are lower maintenance costs. In 2025, IIoT world reported that predictive maintenance can reduce overall maintenance costs by 18-25%.

But beyond bottom line results, smart manufacturing also affects maintenance teams more directly.

It enables predictive maintenance

For true predictive maintenance to be possible, maintenance teams need access to precise, real-time machine data. This requires the right sensors, software, and technological capabilities. 

If a manufacturing facility is using each of the key technologies we described above, it’s well-equipped to carry out predictive maintenance. A team in this scenario is using each aspect of the smart manufacturing ecosystem to gather data that informs their maintenance strategy. Over time, this system will only get better at predicting breakdowns and suggesting corrective actions that can prevent them entirely. 

It makes automation possible

Automation is the holy grail for maintenance teams. We all want to cut manual efforts where they’re not needed and make room for more efficient, less error-prone workflows. But without the right data and systems, maintenance automation is impossible. 

Smart manufacturing provides maintenance teams with the data they need to make maintenance truly automated. Assets are monitored by sensors, which, when integrated with a CMMS that has powerful AI capabilities, creates automated work orders. In this scenario, technicians are dispatched based on real-time asset conditions, not best guesses.

It allows frontline workers to respond immediately

Mobile-first maintenance platforms are essential in a smart manufacturing setting. When frontline workers can access a CMMS with their own devices while they’re on the shop floor, they can respond as quickly as possible the moment an alert goes out or a work order is generated. 

What’s more, mobile access gives frontline workers the ability to input even more data at the point of repair so you can collect deep, contextual, and accurate information to use later. As we know, machine data plus frontline data equals an ideal setup for maintenance strategy. 

It greatly improves parts inventory

Smart manufacturing makes it easier to manage parts inventory. Let’s assume a facility is equipped with every technology mentioned so far: IoT sensors, an integrated CMMS that’s equipped with an AI assistant, and digital twins that can show how certain processes will affect asset wear. 

This facility has everything it needs to carry out as-precise-as-possible demand forecasting and automated reordering. In the best-case scenario, no one ever has to wait for an emergency part to be shipped. 

How can I implement smart manufacturing at my facility?

Smart manufacturing isn’t something you switch on and start doing immediately. Instead, it’s an outcome of setting up the right technologies and systems that use data to improve production and maintenance outcomes. 

Since smart manufacturing isn’t one-size-fits-all, there’s no one way to approach it. But there are some guidelines you can follow to make sure it’s done right for your facility and workforce. 

Start small. Smart manufacturing is an iterative process. You implement a technology, see how it interacts with its surroundings, and add more or make changes to improve it. Start with critical assets and high-impact areas to prove value quickly. Once you have a strong business case for moving forward, you can continue rolling out smart technologies across the facility.

Invest in the right technologies. Technologies are the building blocks of smart manufacturing, so it’s important to ensure that yours are built to last. Choosing a CMMS that’s mobile-first and features its own AI assistant, for example, is much more compatible with smart manufacturing than a legacy on-site system that’s difficult to use.  

Get frontline buy-in first. As with any process change, introducing smart manufacturing technologies might make your workforce nervous. But with machinery and people alike, information is power. 

Keep your frontline informed about what you’re introducing, how it will impact their day-to-day workflow, and how, with their cooperation, it will improve the way they work. If operators and technicians can clearly see what they’ll be working with—and how their job will be an essential part of making it work well—they’ll be far more likely to take ownership.

Lean on expert implementation. The best thing about digital integrations is that they usually come with a team that’s ready and willing to show you how to get the most utility and value out of it. Use that knowledge to set up your systems the right way, collect the right data, and use it to make the right decisions. If you do it right the first time, you won’t have to redo it.

Be realistic about hitting milestones. When management hears words like AI, automation, and smart systems, some of them feel like improvements should be instant. But as with all initiatives, success takes time. Be sure to set realistic timeline expectations with higher-ups. If they have the right idea about when to expect milestones, they won’t cut the cord on anything too early.

Maintenance can lead the charge for smart manufacturing

No matter where you are in your maintenance journey, implementing smart manufacturing technologies will help you increase production capacity, reduce downtime, and cut maintenance costs. 

Get a free demo to learn more about how MaintainX can help you implement a maintenance strategy that integrates seamlessly with smart manufacturing practices. 

Smart manufacturing FAQs

Is smart manufacturing the same as Industry 4.0 for manufacturing facilities?

Not quite. While some people use the terms “Industry 4.0” and “smart manufacturing” interchangeably, they’re not synonymous. Industry 4.0 refers to the fourth industrial revolution, where everything is digitized and connected. Smart manufacturing is the natural outcome of operating within the environment of Industry 4.0. As the Canadian Manufacturers and Exporters blog explains, smart manufacturing is the “result of the Industry 4.0 strategy driven through IoT capable connected devices.”

What is the ROI timeline for smart manufacturing implementations in industrial facilities?

Smart manufacturing achieves two critical outcomes that impact a business’s bottom line: it increases production capacity and decreases maintenance costs. For any smart manufacturing technology you’re taking on, it’s important to show how that investment will affect ROI in both of these ways. Remember, it won’t be instant—most technologies take between 12 and 18 months to break even. 

How does smart manufacturing integration affect existing maintenance management systems?

Smart manufacturing integration allows maintenance teams to take on condition-based and predictive maintenance strategies using real-time machine data, rather than relying on reactive or preventive strategies. 

The smart manufacturing facility uses historical and real-time machine and process data to make informed maintenance calls that allow technicians to address potential problems before they turn into breakdowns. When IoT sensors are set up to trigger alerts when asset condition changes, those alerts can create automated work orders that are instantly pushed to technicians’ mobile devices. 

What smart manufacturing technologies provide the highest impact for maintenance operations?

Smart manufacturing needs good data to produce great results. As such, IoT sensors and a mobile CMMS are two of the highest-impact investments a maintenance team can make. When maintenance strategy is informed by both machine and frontline data, maintenance managers can build a strategy that’s truly predictive, avoiding downtime, high maintenance costs, and wasted labor hours.