Flevy Management Insights Q&A

What impact does the increasing use of IoT devices have on the Measure phase of DMAIC in manufacturing industries?

     Joseph Robinson    |    DMAIC


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: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Enhanced Data Collection Accuracy mean?
What does Real-Time Monitoring mean?
What does Predictive Analytics mean?
What does Strategic Decision Making mean?


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.

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.

E-commerce Customer Experience Enhancement Initiative

Scenario: The organization in question operates within the e-commerce sector and is grappling with issues of customer retention and satisfaction.

Read Full Case Study

Performance Enhancement in Specialty Chemicals

Scenario: The organization is a specialty chemicals producer facing challenges in its Design Measure Analyze Design Validate (DMADV) processes.

Read Full Case Study

Operational Excellence Initiative in Aerospace Manufacturing Sector

Scenario: The organization, a key player in the aerospace industry, is grappling with escalating production costs and diminishing product quality, which are impeding its competitive edge.

Read Full Case Study

Operational Excellence Program for Metals Corporation in Competitive Market

Scenario: A metals corporation in a highly competitive market is facing challenges in its operational processes.

Read Full Case Study

Operational Excellence Initiative in Life Sciences Vertical

Scenario: A biotech firm in North America is struggling to navigate the complexities of its Design Measure Analyze Improve Control (DMAIC) processes.

Read Full Case Study

Live Event Digital Strategy for Entertainment Firm in Tech-Savvy Market

Scenario: The organization operates within the live events sector, catering to a technologically advanced demographic.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How is the rise of AI and machine learning technologies influencing the Analyze phase of the DMAIC process?
AI and ML technologies are revolutionizing the Analyze phase of the DMAIC process by enhancing data analysis efficiency, predictive accuracy, and fostering a culture of Continuous Improvement and Innovation in Operational Excellence. [Read full explanation]
How does the integration of blockchain technology into the DMAIC process enhance transparency and accountability in supply chain management?
Integrating blockchain into DMAIC revolutionizes Supply Chain Management by ensuring product authenticity, improving traceability, and increasing supplier accountability through immutable records and smart contracts. [Read full explanation]
How is the increasing emphasis on sustainability and ESG (Environmental, Social, and Governance) criteria influencing the Design and Validate phases of the DMA-DV cycle?
The increasing emphasis on sustainability and ESG criteria is significantly transforming the Design and Validate phases of the DMA-DV cycle by embedding these principles into core business strategies, necessitating holistic design approaches that consider environmental and social impacts, and enhancing validation processes with comprehensive ESG performance evaluations, third-party certifications, and advanced technologies for real-time tracking and verification. [Read full explanation]
What are the key considerations for incorporating cybersecurity measures in the Design phase of DMA-DV in today's digital landscape?
Incorporating cybersecurity in the DMA-DV design phase involves Strategic Planning, ongoing Risk Assessment, technical best practices like encryption, and adherence to Compliance and regulatory standards. [Read full explanation]
What role does sustainability play in the DMAIC process in light of increasing environmental concerns?
Integrating sustainability into the DMAIC process enhances Operational Efficiency, aligns with Environmental Goals, and is crucial for Long-Term Business Success, involving SMART goals, advanced analytics, and a focus on Circular Economy principles. [Read full explanation]
What are the critical factors for ensuring the scalability of improvements made through the DMAIC process in multinational organizations?
Scaling DMAIC improvements in multinational organizations hinges on Leadership Commitment, Process Standardization, and Effective Communication to achieve Operational Excellence and sustainable growth globally. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "What impact does the increasing use of IoT devices have on the Measure phase of DMAIC in manufacturing industries?," Flevy Management Insights, Joseph Robinson, 2025




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

 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

– Roberto Pelliccia, Senior Executive in International Hospitality
 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC



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.