Want FREE Templates on Strategy & Transformation? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.







Flevy Management Insights Q&A
What impact does the increasing use of IoT devices have on the Measure phase of DMAIC in manufacturing industries?


This article provides a detailed response to: What impact does the increasing use of IoT devices have on the Measure phase of DMAIC in manufacturing industries? For a comprehensive understanding of DMAIC, we also include relevant case studies for further reading and links to DMAIC best practice resources.

TLDR The integration of IoT devices in manufacturing revolutionizes the Measure phase of DMAIC by improving data collection accuracy, enabling real-time monitoring, predictive analytics, and supporting informed Strategic Decision Making and Continuous Improvement.

Reading time: 4 minutes


The increasing use of Internet of Things (IoT) devices in the manufacturing industry has significantly impacted the Measure phase of the DMAIC (Define, Measure, Analyze, Improve, Control) process, a core component of Six Sigma methodologies aimed at improving processes by eliminating defects. The Measure phase, critical for establishing current process performance baselines against requirements, has been transformed by IoT through enhanced data collection, analysis capabilities, and real-time monitoring. This transformation not only improves the accuracy and efficiency of measurements but also enables more informed decision-making and strategic planning.

Enhanced Data Collection and Accuracy

The integration of IoT devices in manufacturing processes has revolutionized the way data is collected during the Measure phase. Traditionally, data collection was often manual, time-consuming, and prone to human error, limiting the amount and quality of data that could be collected. IoT devices automate this process, providing continuous, precise, and real-time data collection without the inherent biases or inaccuracies of manual methods. For example, sensors can monitor and record a wide range of parameters such as temperature, pressure, humidity, and vibration at multiple points along the production line. This comprehensive data collection enables organizations to establish more accurate baselines and performance metrics, essential for effective analysis and improvement strategies.

According to a report by McKinsey & Company, IoT's potential to improve manufacturing operations includes reducing operational costs by up to 5% and increasing efficiency by 2.5%. These improvements are partly attributed to the enhanced data collection capabilities of IoT devices, which provide the detailed, accurate data necessary for precise measurement and analysis.

Real-world examples of this include major automotive manufacturers integrating IoT sensors into their assembly lines to monitor equipment performance and product quality in real time. This allows for immediate identification and correction of defects, significantly reducing waste and improving product quality.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Real-Time Monitoring and Predictive Analytics

The ability to monitor processes in real time is another significant benefit of IoT in the Measure phase. Real-time data feeds from IoT devices offer immediate insights into process performance, enabling organizations to detect deviations from expected performance levels as they occur. This capability not only aids in the immediate rectification of issues but also supports the implementation of predictive analytics. By analyzing data trends over time, organizations can predict potential failures or quality issues before they happen, allowing for preemptive corrective actions that can save significant resources and time.

Gartner has highlighted the growing importance of real-time monitoring and predictive analytics in manufacturing, noting that organizations leveraging these capabilities can anticipate equipment failures with a high degree of accuracy, reducing unplanned downtime by up to 25%. This predictive approach, enabled by IoT, transforms the Measure phase from a reactive to a proactive process, enhancing overall efficiency and quality.

An example of this in action is seen in the chemical industry, where IoT sensors monitor critical process parameters. By analyzing this data, companies can predict and prevent equipment failures, process deviations, and ensure product quality consistency, demonstrating the shift towards a more proactive maintenance and quality assurance strategy.

Strategic Decision Making and Continuous Improvement

The wealth of data provided by IoT devices during the Measure phase significantly enhances decision-making processes. With access to detailed, real-time data, management can make informed decisions about process improvements, resource allocation, and strategic planning. This data-driven approach ensures that decisions are based on accurate, up-to-date information, leading to more effective strategies for achieving Operational Excellence and Continuous Improvement.

Accenture's research supports this, showing that organizations incorporating IoT data into their decision-making processes can see up to a 30% improvement in the efficiency of their manufacturing operations. This improvement is largely due to the ability to make informed, strategic decisions that directly address identified inefficiencies and quality issues.

For instance, a global electronics manufacturer used IoT data to optimize its production processes, resulting in a significant reduction in energy consumption and material waste. By analyzing data collected from IoT devices, the organization was able to identify inefficiencies in its production lines and make targeted improvements, demonstrating the critical role of IoT in supporting strategic decisions and fostering a culture of continuous improvement.

In conclusion, the increasing use of IoT devices in the manufacturing industry has profoundly impacted the Measure phase of DMAIC, enhancing data collection accuracy, enabling real-time monitoring and predictive analytics, and supporting strategic decision-making and continuous improvement. These advancements not only improve the efficiency and effectiveness of the Measure phase but also contribute to overall operational excellence and competitive advantage in the industry. As IoT technology continues to evolve, its role in the Measure phase and the broader DMAIC process will undoubtedly expand, offering even greater opportunities for innovation and improvement in manufacturing processes.

Explore related management topics: Operational Excellence Strategic Planning Process Improvement Competitive Advantage Continuous Improvement

Best Practices in DMAIC

Here are best practices relevant to DMAIC from the Flevy Marketplace. View all our DMAIC materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: DMAIC

DMAIC Case Studies

For a practical understanding of DMAIC, take a look at these case studies.

Efficiency Enhancement in Power & Utilities Sector

Scenario: The organization is a mid-size player in the power and utilities industry, struggling with inefficiencies in its Demand-Supply Management, Inventory Control, and Maintenance Operations (DMAIC).

Read Full Case Study

Lean Process Improvement in Specialty Chemicals

Scenario: The organization is a specialty chemicals producer facing challenges in maintaining quality control and reducing waste in its DMAIC processes.

Read Full Case Study

Lean Six Sigma Deployment in Metals Industry Vertical

Scenario: A mid-sized firm in the metals sector is struggling with quality control and efficiency, which has led to increased operational costs and customer dissatisfaction.

Read Full Case Study

Educational Performance Management for K-12 Schools in Competitive Markets

Scenario: The organization, a network of K-12 educational institutions, faces challenges in its Design Measure Analyze Improve Control (DMAIC) processes, which are critical to ensuring high academic performance and operational efficiency.

Read Full Case Study

Process Improvement Project for High-Growth Technology Firm

Scenario: A high-growth technology firm with a global footprint has been facing increasing pressure on its margins despite significant growth in revenues.

Read Full Case Study

Telco Network Efficiency Redesign Using DMADV

Scenario: The organization is a telecommunications provider facing customer dissatisfaction due to inconsistent network quality and high operational costs.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How does the role of digital transformation tools and technologies impact the effectiveness of DMADV projects?
Digital Transformation significantly improves DMADV projects by streamlining processes, enhancing data analysis, and increasing efficiency and accuracy in new product/process design. [Read full explanation]
In what ways can DMADV contribute to sustainability and environmental goals within an organization?
DMADV offers a structured approach for organizations to achieve sustainability goals by identifying, designing, and implementing processes that minimize waste, reduce energy consumption, and promote environmental stewardship. [Read full explanation]
What are the common pitfalls in implementing DMADV in service-oriented sectors compared to manufacturing sectors?
Implementing DMADV in service sectors faces challenges like intangibility and variability, requiring clear definitions, innovative measurement, flexible design, and a culture of continuous improvement for Operational Excellence. [Read full explanation]
What role does DMADV play in enhancing organizational agility to respond to rapid market changes?
DMADV, a Six Sigma methodology, significantly boosts organizational agility by ensuring products and processes exceed customer expectations, align with Strategic Planning, promote Operational Excellence, and drive Innovation, positioning organizations for sustainable growth in dynamic markets. [Read full explanation]
In what ways can the DMA-DV cycle be adapted to fit the unique needs of startups and small businesses, which may have limited resources?
The DMA-DV cycle can be adapted for startups and small businesses by tailoring each phase—Define, Measure, Analyze, Design, and Verify—to fit their limited resources, focusing on strategic planning, cost-effective data collection and analysis, agile development, and continuous improvement to drive operational excellence and innovation despite constraints. [Read full explanation]
How is the proliferation of smart technologies impacting the Measure phase of DMA-DV in terms of data collection and analysis capabilities?
Smart technologies are revolutionizing the Measure phase of DMA-DV by enhancing data collection and analysis through IoT, AI, and ML, enabling unprecedented precision and insight. [Read full explanation]
How does the integration of DMADV with digital twin technology enhance product development and validation processes?
Integrating DMADV with Digital Twin Technology streamlines product development and validation, reducing time-to-market, development costs, and enhancing product quality and reliability. [Read full explanation]
How can the principles of DMAIC be applied to enhance digital customer engagement strategies in a post-pandemic world?
Applying DMAIC to digital customer engagement post-pandemic involves defining objectives, measuring performance, analyzing data for improvement opportunities, implementing strategic enhancements, and controlling outcomes for sustained success and operational efficiency. [Read full explanation]

Source: Executive Q&A: DMAIC Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.