A booming global economy and demand for customized products has led to a buyers’ market outweighing a sellers’ market in the manufacturing industry. This means that a deeper conversion towards manufacturing structures to handle the increasing production complexity should be studied. With an increased adoption of the Internet of Things (IoT) and Cyber-Physical Systems (CPS), realization of smart factory will become possible. The smart factory can provide a solution for handling the complexity through the establishment of intelligent products and production processes.