Performance Monitoring and Optimization of Manufacturing Systems Enabled by the IoTs: A Comprehensive Review and Integrated Framework

Abstract

Manufacturing systems increasingly require real-time performance monitoring and data-driven optimization to reduce downtime, stabilize quality, and support flexible production. Although Internet of Things (IoT) and Industrial Internet of Things (IIoT) technologies have been widely discussed in smart manufacturing, existing studies often treat sensing, key performance indicators (KPIs), analytics, and decision support as separate concerns. This paper presents a structured literature review and conceptual synthesis of IoT-enabled performance monitoring and optimization in manufacturing systems, with emphasis on recent work in IIoT architectures, edge and cloud analytics, digital twins, predictive maintenance, and manufacturing KPIs. The main contribution is an integrated five-layer conceptual framework that connects physical sensing and data acquisition, edge computing and connectivity, data management and integration, analytics and intelligence, and application-level decision support. The framework clarifies how shop-floor data can be transformed into KPI-oriented insights and optimization actions while accounting for cybersecurity, interoperability, data governance, scalability, and human-in-the-loop decision-making. An illustrative automotive parts/CNC manufacturing scenario demonstrates the framework's potential application; however, no simulation, pilot deployment, or quantitative validation is claimed. The review concludes by outlining implementation considerations and a validation roadmap for future empirical studies, including digital-twin simulation, pilot testing, baseline KPI comparison after implementation, and cost-benefit assessment.