Analyze - Cost Estimation for IoT Implementation in the Heineken Brewery process for monitoring parameters

To make a reliable cost estimate for Heineken, estimates from various sources were used, as quotes had to be requested from companies that sell and implement IoT sensors. For an IoT system focused on monitoring parameters within the brewing process at Heineken, some several components and factors determine the costs. Since this involves a complex and scalable industrial solution, the costs are estimated based on available sources.

 

1.     Hardware: This includes the IoT devices, sensors, and connectivity modules, with costs depending on the type and quality of the hardware components.

The brewing process likely requires sensors to monitor various parameters such as temperature, pressure, pH levels, CO2 levels, and humidity. Each type of sensor has its own costs:

• Temperature and pressure gauges: For industrial sensors suitable for use in a brewery, the costs range from €100 to €500 per sensor.
• pH and CO2 sensors: These specific sensors for monitoring chemical and gas parameters typically cost between €200 and €1000 each, depending on accuracy and type (analog vs digital sensors).
• Liquid level sensors: These sensors generally cost between €150 and €600.

For a brewery like Heineken, where hundreds of sensors are spread across multiple stages of the brewing process (malting, fermentation, filtration, etc.), the hardware costs per brewery location can range from €100,000 to €500,000, depending on the number of parameters to be monitored and the scale of the operation.

 

 

 

2.     Software Development: Developing the software, including custom applications, cloud infrastructure, and data storage, plays a significant role in the overall cost.

Depending on the degree of customization required for the IoT solution, such as specific dashboards for monitoring parameters, alerts for anomalies, and integration with existing management systems, development costs are involved.

• Dashboard and analysis tools: Developing custom software solutions for data visualization can cost between €50,000 and €200,000, depending on the complexity and scale of the system.

For processing, storing, and analyzing the collected data, Heineken will likely need an IoT platform that connects to a cloud environment. Possible platforms include AWS IoT, Microsoft Azure IoT, or Google Cloud IoT.

• Cloud platform subscriptions: The costs of cloud solutions generally depend on the amount of data processed and stored, as well as the number of connected devices. For industrial solutions, monthly costs can range from €1,000 to €10,000 per month, depending on the scale and intensity of data processing.

For a brewery like Heineken, where thousands of sensors continuously generate data, the annual platform costs can range from €20,000 to €100,000.

 

 

 

 

3.     Integration & Connectivity: IoT systems often need to integrate with existing infrastructure, which can be complex and drive up costs. Additionally, ensuring secure and stable connectivity between devices adds to the expenses.

Connectivity and Network Infrastructure: Industrial IoT solutions require a robust and reliable network infrastructure, often based on Wi-Fi, Ethernet, or LPWAN (such as LoRaWAN or NB-IoT) for collecting data from IoT devices.

• Wi-Fi / Ethernet: If existing network infrastructures are in place, costs can be limited to connecting the IoT devices. For a new infrastructure, this can range from €10,000 to €50,000.
• LoRaWAN/NB-IoT: These networks are cheaper in terms of data costs but require investments in gateways. This typically costs between €100 and €300 per gateway, with a total of several thousand euros depending on the scale.
• Integration with ERP or MES systems: Connecting IoT solutions with production management systems or ERPs can cost an additional €50,000 to €150,000, depending on the integration requirements.

Training: For a company like Heineken, training personnel is essential to effectively use the new IoT solutions. Additionally, the costs of initial implementation, installation, and system calibration can vary.

• Implementation: The costs of initial sensor installation, network configuration, and testing can range from €50,000 to €200,000, depending on complexity.
• Training: Depending on the number of employees that need training, the costs can range from €10,000 to €50,000.

 

 

 

4.     Security: IoT systems require robust security features to protect against cyber threats, which can further increase the budget.

IoT solutions require regular maintenance, firmware updates, and security management to ensure data continuity and safety.

• Annual maintenance costs: This includes software updates, sensor calibration, and system management, which can amount to 5-10% of the total project costs per year. For a large implementation, maintenance costs can range from €50,000 to €150,000 per year.
• Security costs: Since data protection is crucial in an industrial environment, additional investments in cybersecurity and monitoring solutions may be necessary, which can cost several thousand to tens of thousands of euros per year.

Summary

Heineken has breweries worldwide, and the costs will vary depending on the scale of implementation. A single location, for example, can cost between €200,000 and €1,000,000, depending on the size and the number of parameters being monitored. 

Total estimate for an IoT solution in a brewery:

For a single Heineken brewery, the total investment for an IoT solution monitoring brewing parameters can range from €300,000 to €1,500,000, including hardware, network infrastructure, software development, cloud platform costs, and implementation. The annual operational costs (maintenance, software licenses, cloud storage) can additionally range between €100,000 and €500,000.