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How Virtual Reality Technology Is Changing Manufacturing

Manufacturing has begun a new reality as next-generation VR and AR become available.

Danielle Fallon O'Leary
Written by: Danielle Fallon-O’Leary, Senior WriterUpdated Nov 07, 2024
Chad Brooks,Managing Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Virtual technology has existed for more than 50 years. However, augmented reality (AR) and virtual reality (VR) have only recently emerged in manufacturing environments. Early adopters have begun using virtual technology in myriad ways — mainly, to improve worker safety, speed new products to market, reduce training costs and increase productivity.

Here are a few examples of how companies are using AR, VR and other virtual technologies to change their manufacturing and allied processes — and what the future holds for this promising technology.

FYIDid you know
Augmented reality use cases are growing more common in businesses today. For example, companies like Harley-Davidson, Ford, Walmart and Chipotle use this technology to manufacture products and train new employees.

How VR and AR technologies are changing manufacturing

VR and AR technologies have multiple applications in the manufacturing industry, many of which have already been implemented by forward-thinking companies.

Inventory management

Logistics company DHL was among the first to incorporate AR in its inventory management. In collaboration with Ricoh, a DHL customer, and wearable computing solutions expert Ubimax, DHL launched a “vision picking” pilot program. It did so in its warehousing operations using AR smart glasses.

Graphics displayed on the smart glasses guided workers through the warehouse to reduce errors and quicken the picking process. The smart glasses recorded necessary tracking data without the employee needing to stop and enter data into a computer. The pilot program proved that AR offers added value to logistics; it resulted in a 15 percent efficiency increase during the picking process. DHL has since implemented this technology in warehouses around the world.

Product design and assembly

VR has proven particularly helpful in streamlining product design and reducing its associated costs.

“Virtual reality … [allows] teams to visualize, test, and refine concepts quickly and cost-effectively,” explained John Brooks, CEO and founder of Mass Virtual, a software company that develops extended reality (XR) training solutions. “It enables companies to dream big, turning ambitious ideas into tangible, digestible forms, helping them see the feasibility of grand systems in minutes.”

In addition to improved prototyping, VR can also facilitate the physical assembly process. For example, smart goggles with depth sensors, cameras and motion sensors offer a comprehensive view of the working environment. They show engineers and workers how to assemble parts and follow instructions accurately. Boeing technicians use VR smart glasses to access necessary instructions for each wiring repair — cutting work time by 25 percent.

Maintenance and assembly training

AR and VR can improve the onboarding process and boost productivity by offering more immersive on-the-job training. For example, AR smart glasses that project video, graphics and text can visually guide a worker, step by step, through assembly or maintenance tasks. VR can also simulate assembly line configurations and production processes. This allows teams to better identify and address potentially dangerous situations.

“Immersive VR simulations help us to teach the workers the intricacies of assembly process, machine operation and safety procedures,” said Tom Kohm, CEO of Premier Equipment, Inc. “We have found this to be much more effective in training than the traditional method; training time has been reduced, and knowledge retention has improved.”

In addition to increasing employee engagement, VR and XR technologies can help disseminate crucial information across teams efficiently.

“The application of XR within work instructions, safety protocols and process workflows enables companies to deploy critical information across a workforce from a single location,” explained Justin Sirotin, founder of OCTO, a global product development and design company that works with manufacturing clients. “This process can lower training time, reduce mistakes and improve process efficiency.”

Factory floor planning

Virtual technology is also being implemented for factory floor planning, construction and manufacturing trade events. In mass-production manufacturing, factory planning — where to place tools, equipment and personnel — is crucial for productivity and efficiency.

Engineering a new plant or altering an existing one involves detailed design, testing and trials. Any unexpected delays or a production line shutdown, even a temporary one, can be very costly. Virtual technologies can simplify and significantly shorten the process. Virtual plants can be designed to test production flows and how workers and robots perform tasks before making any actual changes.

Even ergonomic workstations can be tested and refined to ensure everything runs efficiently in the new or altered space. Early trials suggest that a virtually planned floor can be completed in a fraction of the time — bringing new products to the line faster. [Read related article: How Virtual Reality Is Changing Construction]

TipBottom line
Virtual reality use cases for businesses are exploding. This helps companies market and promote products, designs, and tourism, expand education and training programs, and much more.

Communication and collaboration

VR can make communication and collaboration significantly easier and more effective, particularly for companies working across multiple locations. For example, team members can join virtual environments and interact with products or designs in real time. This helps them gain a shared understanding and make more informed decisions.

“Engineers, designers and managers can interact with 3D models in real time from anywhere on the planet, thanks to virtual meeting spaces,” Kohm noted. “This has made decision-making easier and cheaper, requiring less travel.”

VR also enables immersive presentations and product demos. This can help clients, stakeholders, and cross-functional teams visualize and contribute more effectively to ongoing projects.

The future of VR in manufacturing

While VR’s impact on the manufacturing industry is noticeable, not all companies have made the leap. This is due, at least in part, to the hardware required. As Sirotin noted, current VR hardware has significant limitations due to battery life, comfort and other physical challenges.

However, Brooks believes this could change in the not-too-distant future. “VR will become as essential in manufacturing as smartphones, thanks to rapid advancements in hardware and AI-powered systems,” Brooks predicted. “These breakthroughs will lead to widespread adoption — unlocking more immersive, efficient and innovative applications throughout the industry.”

One such potential advancement is VR’s integration with AI and the Internet of Things. According to Kohm, these integrated systems can visualize real-time data and perform predictive maintenance in virtual environments.

Kohm also predicts that digital twins — virtual representations of physical objects or systems — will become more widely adopted as VR technology advances. “Physical manufacturing facilities will become virtual and standard, providing complete simulation and optimization of entire production lines prior to implementation,” Kohm explained.

In addition to increased implementation within the factory, Sirotin anticipates VR will take a bigger role in the field.

“The ability to deliver visual cues to field service teams through AR/VR tools allows for more efficient deployment of resources — less training for service techs and a better ability to solve problems in the field,” Sirotin said. “Equipment such as machine tools, coordinate measurement machines, robotics and automation components all require continuous maintenance. XR can speed up that process and deliver more uptime for manufacturers.”

Sean Peek contributed to this article.

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Danielle Fallon O'Leary
Written by: Danielle Fallon-O’Leary, Senior Writer
Danielle Fallon-O'Leary is a longtime marketer with a passion for helping clients strengthen their online brands. She has managed clients' social media accounts, developed marketing campaigns and compiled key data for analytics reports. At business.com, Fallon-O'Leary provides guidance on market research, KPIs, survey data and online reputation management. Over the years, other projects have included newsletter curation, workflow management and search engine optimization. Along with her marketing responsibilities, Fallon-O'Leary has had an up-close look at other aspects of small business operations, including invoicing and accounting, employee recruitment and training.
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