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Smart Factory


Association with Government Aid Project

- Overview of Government Support Project

In order to enhance the competitiveness of manufacturing sites, we are supporting small and medium-sized companies to implement various types of smart factories suitable for the domestic circumstances.
· Small and Medium Business Informationization Capacity Enhancement Project (Production Site Digitalization)
· Smart Factory Expansion Project

- Details of Support Project

· Support for building smart factories and smart factory solutions where high technologies like IoT are applied to improve product design and production processes, and for purchasing automation equipments, controllers, sensors, and so on, which are synchronized with these solutions.
· Support for building the field automation and production O&M system, product development support system, supply chain management system, and enterprise support management system
[Source] Smart Factory, Smart Factory Government Aid Project (Government Policy Funding Counseling Center)

- Scope of Government Aid

50% of the total project cost per company but up to 50 million KRW
· The supply scope can be flexible following revised supplementary budget, etc.

- Project Execution Procedure

Business Announcement and Recruitment -> Evaluation and Selection -> Support Agreement -> Project Execution -> Intermediate Check -> Final Inspection and Evaluation / Payment of Project Cost, Settlement -> Performance Analysis

- Reference

Nepes Co., Ltd.

· Main Products : Semiconductors and semiconductor materials
· Main Process : Semiconductor post-processing (Bump & High-tech Packaging)
· Purpose of Implementation : Due to the complexity of small quantity production of multi products, the control level of production sites differs by factory and by product group. In particular, there is a need to solve the inconsistency between production data and real information and the difficulties of work in progress / inventory management
· Effects of Implementation
① Improvement of the quality control system by managing the whole processes in the form of data
② Field service standardization and control system upgrade through data analysis
③ Efficiency in worker's movement route by installing a tablet UI for each facility
④ Resolving the issue of mismatch between real things and control information
⑤ Improved efficiency of production / process control by providing real-time production status

1. Concept and Scope of Smart Factory Support

An intelligent flexible factory which improves the productivity, quality, and customer satisfaction by applying an advanced ICT where digital automation solutions are combined with the entire production process consisting of design, development, manufacturing, distribution, logistics, etc.

Aspects of Smart Factory (example)
Design/Development Simulate the product performance in a virtual space before manufacturing to reduce the production period and develop customized products at the request of a customer
Production Achieve production of various products in a single factory and improve efficiency of energy and facilities using a real-time information exchange between the material system and the control system
Distribution/Logistics Reduce significantly the inventory cost and enable cooperation among all areas including quality management and logistics through the real-time auto placing and receiving of orders suited to the production status

Smart factories can be implemented in various forms according to the level and the field of production, and an implementation should be achieved through stages with consideration to the status of the company The implementation process can be divided into 4 stages, that is, Basic, Intermediate 1, Intermediate 2, and Advanced, according to the level and the capacity of IT technology utilization of particular factories

Varied Implementation Forms by Level of Smart Factory
Stage Automation Factory Operation Business
Advanced IoT-type automation combined with control automation and digital identification Intelligent production with self-diagnosis and control capability using CPS, IoT, and Big Data Real-time customized service linked with the value chain
Intermediate 2 Facility control automation Real-time decision making & direct facility control Real-time decision-making and control actively responding to the market and customer needs
Intermediate 1 Collection of real-time data from facilities Factory operation analysis based on the performance collected from facilities Exchange of real-time information such as factory operation based on information management
Basic Basic logistics information collection using barcodes and RFID Performance control based on process logistics Quality history control based on lot-tracking

Smart factories can be implemented in various forms according to the level and the field of production, and an implementation should be achieved through stages with consideration to the status of the company The implementation process can be divided into 4 stages, that is, Basic, Intermediate 1, Intermediate 2, and Advanced, according to the level and the capacity of IT technology utilization of particular factories

2. Scope of Smart Factory Spread/Expansion Project Aid

Scope of Aid
Support Representative Solution Aid Expected Effects
Field Automation·Factory Operation MES Solutions & synchronized digital automation equipment Improved quality & productivity
Product Development PLM Solutions & synchronized CAD/CAM, etc. Shortened design development lead time
Energy Control FEMS Solutions & synchronized automation control Energy saving
Supply Chain Control SCM Solutions & synchronized barcodes or RFID system Improved on-time delivery rate
Enterprise Resource Control ERP Solutions & synchronized barcodes or RFID system Improved work process

3. ICT-Fused Smart Factory Spread/Expansion Project (Government Aid)

Support Plan
Item Budget
(100 million KRW)
Support Institution Major Aid Details
Model Factory - Korea National Ppuri Industry Center Cost support for the 6 root businesses for building leading smart factories (model factory) that can spread - at least 1 for each of the sectors of casting, molding, plastic processing, welding, surface treatment, and heat treatment.
Promoted in connection with the support project for root business automation/advancement run by the Small and Medium Business Administration (common notification)
Supplementary Budget Project - Smart Factory Promotion Bureau Providing smart factory buildup cost aid, etc. in cooperation with the Creation Economy Innovation Center for small and medium enterprises
Smartification of Business Field - Smart Factory Promotion Bureau Providing IT solution buildup cost aid, etc. for consortium of companies in a same industry (5 or more individual companies)
Electronics, Automotive, Heavy Industries, Industrial Electric/Electronic, Fashion, Telecommunications, Steel, Pharmaceutical, etc.
CEO : Hwang Young-ju
113-86-22003
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