Abstract
In order to stay competitive in today's global market, manufacturing companies need to be
flexible. To ensure flexible production, shorten processing times, and reduce time-tomarket,
companies are utilizing the distributed manufacturing system paradigm, wherein
geographically distributed, local resources are used for product development and
production. In this context, the Internet of Things (IoT) has emerged as a concept which uses
existing communication technologies, such as local wireless networks and the Internet to
ensure visibility of anything from anywhere and at any time. In the paper, a case study of
applying the IoT to the manufacturing domain is discussed. A distributed agent-based system
for virtual monitoring and control of 3-axis CNC milling machine tools is designed and
developed. The machines' 3D models and process states are shown through a web interface
in real-time. The potential and challenges of implementing this system and the basic
building blocks for decentralized value creation are discussed.