Industry 4.0 fosters what has been called a "smart factory". Within modular structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real-time both internally and across organizational services offered and used by participants of the value chain (Industry 4.0, n.d.).
The term "Industry 4.0", shortened to I4.0 or simply I4, originates from a project in the high-tech strategy of the German government, which promotes the computerization of manufacturing (Industry 4.0, n.d.).
The term "Industry 4.0" was revived in 2011 at the Hannover Fair. In October 2012 the Working Group on Industry 4.0 presented a set of Industry 4.0 implementation recommendations to the German federal government. The Industry 4.0 workgroup members are recognized as the founding fathers and driving force behind Industry 4.0 (Industry 4.0, n.d.).
On 8 April 2013 at the Hannover Fair, the final report of the Working Group Industry 4.0 was presented. This working group was headed by Siegfried Dais from Robert Bosch GmbH and Henning Kagermann from German Academy of Science and Engineering (Industry 4.0, n.d.).
From the first industrial revolution (mechanization through water and steam power) to the mass production and assembly lines using electricity in the second, the fourth industrial revolution will take what was started in the third with the adoption of computers and automation and enhance it with smart and autonomous systems fueled by data and machine learning (Bernard Marr, 2018).
1. The First Industrial Revolution
The industrial revolution in Britain came in to introduce machines into production by the end of the 18th century (1760-1840). This included going from manual production to the use of steam-powered engines and water as a source of power. One of the industries that benefited a lot from such changes is the textile industry, and was the first to adopt such methods (Martin, 2017).
2. The Second Industrial Revolution
The second one dates between 1870 and 1914 and introduced pre-existing systems such as telegraphs and railroads into industries. The electrification of factories contributed hugely to production rates. The mass production of steel helped introduce railways into the system, which consequently contributed to mass production (Martin, 2017).
3. The Third Industrial Revolution
The third industrial revolution is dated between 1950 and 1970. It is often referred to as the Digital Revolution, and came about the change from analog and mechanical systems to digital ones. Others call it the Information Age too. The third revolution was, and still is, a direct result of the huge development in computers and information and communication technology (Martin, 2017).
4. The Fourth Industrial Revolution
The fourth industrial revolution takes the automation of manufacturing processes to a new level by introducing customized and flexible mass production technologies. This means that machines will operate independently, or cooperate with humans in creating a customer-oriented production field that constantly works on maintaining itself. The machine becomes an independent entity that is able to collect data, analyze it, and advise upon it. This becomes possible by introducing self-optimization, self-cognition, and self-customization into the industry. The manufacturers will be able to communicate with computers rather than operate them (Martin, 2017).
What Are the Major Countries That Have Advanced to Industry 4.0?
“Industrie 4.0” is a term coined by the German Government’s strategic initiative to transform its secondary industry (manufacturing) as a leader in advanced manufacturing (or cyber physical system) provider as well as for its domestic manufacturing to be more efficient and cost effective. “Industrie 4.0” is a part of the overall High Tech Action Plan 2020 of Germany (Ministry of International Trade and Industry, n.d.).
Different countries are using different terms to describe their national strategy in terms of Industry 4.0. Among other terms used include (Ministry of International Trade and Industry, n.d.):
a) “Smart Manufacturing” in the United States;
b) “Made in China 2025” for China;
c) “Manufacturing Innovation 3.0” (South Korea);
d) “Industrial Value Chain Initiative” Japan; and
e) “Smart Nation Programme” (Singapore)
1. Cyber-Physical Systems
The cyber-physical systems comprise smart machines, storage systems and production facilities capable of autonomously exchanging information, triggering actions and controlling each other independently. This means that computers and networks are able to monitor the physical process of manufacturing at a certain process (Martin, 2017).
This facilitates fundamental improvements to the industrial processes involved in manufacturing, engineering, material usage and supply chain and life cycle management. The development of such a system consists of three phases:
Identification: Unique identification is essential in manufacturing. This is the very basic language by which a machine can communicate. RFID (Radio-frequency identification) is a great example of that. RFID uses an electromagnetic field to identify a certain tag that is often attached to an object (Martin, 2017).
The Integration of Sensors and Actuator: The integration of sensors and actuators simply means that a certain machine’s movement can be controlled and that it can sense changes in the environment (Martin, 2017).
The Development of Sensors and Actuators: Such development allowed machines to store and analyze data. A CPS now is equipped with multiple sensors and actuators that can be networked for the exchange of information (Martin, 2017).
2. The Internet of Things (IoT)
The Internet of Things is what enables objects and machines such as mobile phones and sensors to “communicate” with each other as well as human beings to work out solutions. The integration of such technology allows objects to work and solve problems independently. Of course, human beings are also allowed to intervene (Martin, 2017).
3. The Internet of Services (IoS)
The Internet of Services aims at creating a wrapper that simplifies all connected devices such as smart phones, tablets, laptops, TVs or even watches to make the most out of them by simplifying the process. It is the customer’s gateway to the manufacturer (Martin, 2017).
4. Smart Factory
The Smart Factory can be defined as a factory where CPS communicate over the IoT and assist people and machines in the execution of their tasks. Smart factories are a key feature of Industry 4.0. A smart factory adopts a so called Calm-system. A calm system is a system that is able to deal with both the physical world as well as the virtual. Such systems are called “background systems” and in a way operate behind the scene. A calm system is aware of the surrounding environment and the objects around it. It also can be fed with soft information regarding the object being manufactured such as drawings and models (Martin, 2017).
1. Interconnection
The ability of machines, devices, sensors, and people to connect and communicate with each other via the Internet of Things (IoT) or the Internet of People (IoP) (Industry 4.0, n.d.)
2. Information Transparency
The transparency afforded by Industry 4.0 technology provides operators with vast amounts of useful information needed to make appropriate decisions. Interconnectivity allows operators to collect immense amounts of data and information from all points in the manufacturing process, thus aiding functionality and identifying key areas that can benefit from innovation and improvement (Industry 4.0, n.d.).
3. Technical Assistance
First, the ability of assistance systems to support humans by aggregating and visualizing information comprehensively for making informed decisions and solving urgent problems on short notice. Second, the ability of cyber physical systems to physically support humans by conducting a range of tasks that are unpleasant, too exhausting, or unsafe for their human co-workers (Industry 4.0, n.d.).
4. Decentralized Decisions
CPSs must be able to simulate and create a virtual copy of the real world. CPSs must also be able to monitor objects existing in the surrounding environment. Simply put, there must be a virtual copy of everything (Martin, 2017).
A smart factory needs to be able to collect real time data, store or analyze it, and make decisions according to new findings. This is not only limited to market research but also to internal processes such as the failure of a machine in production line. Smart objects must be able to identify the defect and re-delegate tasks to other operating machines. This also contributes greatly to the flexibility and the optimization of production (Martin, 2017).
7. Service-Orientation
Production must be customer-oriented. People and smart objects/devices must be able to connect efficiently through the Internet of Services to create products based on the customer’s specifications. This is where the Internet of Services becomes essential (Martin, 2017).
8. Modularity
In a dynamic market, a Smart Factory’s ability to adapt to a new market is essential. In a typical case, it would probably take a week for an average company to study the market and change its production accordingly. On the other hand, smart factories must be able to adapt fast and smoothly to seasonal changes and market trends (Martin, 2017).
How Will Machines Communicate?
The idea behind Industry 4.0 is to create a social network where machines can communicate with each other, called the Internet of Things (IoT) and with people, called the Internet of People (IoP). This way, machines can communicate with each other and with the manufacturers to create what we now call a cyber-physical production system (CPPS). All of this helps industries integrate the real world into a virtual one and enable machines to collect live data, analyze them, and even make decisions based upon them (Martin, 2017).
Role of Big Data and Analytics
Modern information and communication technologies like cyber-physical system, big data analytics and cloud computing, will help early detection of defects and production failures, thus enabling their prevention and increasing productivity, quality, and agility benefits that have significant competitive value (Industry 4.0, n.d.).
Big data analytics consists of 6Cs in the integrated Industry 4.0 and cyber physical systems environment. The 6C system comprises (Industry 4.0, n.d.):
1. Connection (sensor and networks)
2. Cloud (computing and data on demand)
3. Cyber (model & memory)
4. Content/context (meaning and correlation)
5. Community (sharing & collaboration)
6. Customization (personalization and value)
In this scenario and in order to provide useful insight to the factory management, data has to be processed with advanced tools (analytics and algorithms) to generate meaningful information (Industry 4.0, n.d.).
Applications of Industry 4.0
1. Identify Opportunities
Since connected machines collect a tremendous volume of data that can inform maintenance, performance and other issues, as well as analyze that data to identify patterns and insights that would be impossible for a human to do in a reasonable timeframe, Industry 4.0 offers the opportunity for manufacturers to optimize their operations quickly and efficiently by knowing what needs attention. By using the data from sensors in its equipment, an African gold mine identified a problem with the oxygen levels during leaching (Bernard Marr, 2018).
2. Optimize Logistics and Supply Chains
A connected supply chain can adjust and accommodate when new information is presented. If a weather delay ties up a shipment, a connected system can proactively adjust to that reality and modify manufacturing priorities (Bernard Marr, 2018).
3. Autonomous Equipment and Vehicles
There are shipping yards that are leveraging autonomous cranes and trucks to streamline operations as they accept shipping containers from the ships (Bernard Marr, 2018).
4. Robots
From picking products at a warehouse to getting them ready to ship, autonomous robots can quickly and safely support manufacturers. For instance, robots move goods around Amazon warehouses and also reduce costs and allow better use of floor space for the online retailer (Bernard Marr, 2018).
Additionally, robots could produce much more reliable and consistent productivity and output. And the results for many businesses could be increased revenues, market share, and profits (Bernard Marr, 2016).
5. Additive manufacturing (3D printing)
This technology has progressed from primarily being used for prototyping to actual production. Advances in the use of metal additive manufacturing have opened up a lot of possibilities for production (Bernard Marr, 2018).
6. Internet of Things and the Cloud
A key component of Industry 4.0 is the Internet of Things that is characterized by connected devices. Not only does this help internal operations, but through the use of the cloud environment where data is stored, equipment and operations can be optimized by leveraging the insights of others using the same equipment or to allow smaller enterprises access to technology they wouldn’t be able to on their own (Bernard Marr, 2018).
1. Optimization
Optimizing production is a key advantage to Industry 4.0. A Smart Factory containing hundreds or even thousands of Smart Devices that are able to self-optimize production will lead to an almost zero down time in production. This is extremely important for industries that use high end expensive manufacturing equipment such as the semi-conductors industry. Being able to utilize production constantly and consistently will profit the company (Martin, 2017).
2. Customization
Creating a flexible market that is customer-oriented will help meet the population’s needs fast and smoothly. It will also destroy the gap between the manufacturer and the customer. Communication will take place between both directly. Manufacturers won’t have to communicate internally (in companies and factories) and externally (to customers). This fastens the production and delivery processes (Martin, 2017).
3. Pushing Research
The adoption of Industry 4.0 technologies will push research in various fields such as IT security and will have its effect on the education in particular. A new industry will require a new set of skills. Consequently, education and training will take a new shape that provides such an industry will the required skilled labor (Martin, 2017).
Challenges Facing Industry 4.0
1. Security
Perhaps the most challenging aspect of implementing Industry 4.0 techniques is the IT security risk. This online integration will give room to security breaches and data leaks. Cyber theft must also be put into consideration. In this case, the problem is not individual, but can, and probably will, cost producers money and might even hurt their reputation. Therefore, research in security is crucial (Martin, 2017).
2. Capital
Such transformation will require a huge investment in a new technology that doesn’t sound cheap. The decision to make such transformation will have to be on CEO level. Even then, the risks must be calculated and taken seriously. In addition, such transformation will require a huge capital, which alienates smaller businesses and might cost them their market share in the future (Martin, 2017).
3. Employment
While it still remains early to speculate on employment conditions with the adoption of Industry 4.0 globally, it is safe to say that workers will need to acquire different or an all-new set of skills. This may help employment rates go up but it will also alienate a big sector workers. The sector of workers whose work is perhaps repetitive will face a challenge in keeping up with the industry. Different forms of education must be introduced, but it still doesn’t solve the problem for the elder portion of workers. This is an issue that might take longer to solve (Martin, 2017).
4. Privacy
This is not only the customer’s concern, but also the producers. In such an interconnected industry, producers need to collect and analyze data. To the customer, this might look like a threat to his privacy. This is not only exclusive to consumers. Small or large companies who haven’t shared their data in the past will have to work their way to a more transparent environment. Bridging the gap between the consumer and the producer will be a huge challenge for both parties (Martin, 2017).
The Future Workforce
The following are some of the important changes that will affect the demographics of employment:
1. Big-Data-Driven Quality Control
In engineering terms, quality control aims at reducing the inevitable variation between products. Quality Control depends to a large extent on statistical methods to show whether a specific feature of a product (such as size or weight) is changing in a way that can be considered a pattern. Such a process depends largely on collecting real-time or historical data regarding the product. However, since Industry 4.0 will rely on big data for that, the need for quality control workers will decrease. On the other side, the demand for big data scientists will increase (Martin, 2017).
2. Robot-Assisted Production
The entire basis of the new industry relies of the smart devices being able to interact with the surrounding environment. This means that workers who assist in production (such as packaging) will be laid off and be replaced with smart devices equipped with cameras, sensors, and actuators that are able to identify the product and then deliver the necessary changes for it. Consequently, the demand for such workers will drop and will be replaced with “robot coordinators” (Martin, 2017).
3. Self-Driving Logistics Vehicles
Engineers use linear programming methods (such as the Transportation Model) to utilize the use of transportation. However, with self-driven vehicles, and with the assistance of big data, so many drivers will be laid off. In addition, having self-driven vehicles allows for restriction-free working hours and higher utility (Martin, 2017).
4. Production Line Simulation
While the need for optimization for transportation declines, the need for industrial engineers (who typically work on optimization and simulation) to simulate productions lines will increase. Having the technology to simulate production lines before establishment will open up jobs for mechanical engineers specializing in the industrial field (Martin, 2017).
5. Predictive Maintenance
Having smart devices will allow manufacturers to predict failures. Smart machines will be able to also independently maintain themselves. Consequently, the number of traditional maintenance technicians will drop, and they’ll be replaced with more technically informed ones (Martin, 2017).
6. Machines as a Service
The new industry will also allow manufactures to sell a machine as a service. This means that instead of selling the entire machine to the client, the machine will be set-up and maintained by the manufacturer while the client takes advantage of the services it provides. This will open up jobs in maintenance and will require an expansion in sales (Martin, 2017).
Industry 4.0 is definitely a revolutionary approach to manufacturing techniques. The concept will push global manufacturers to a new level of optimization and productivity. Not only that, but customers will also enjoy a new level of personally customized products that may have never been available before. The economic rewards are immense. However, there are still many challenges that need to be tackled systematically to ensure a smooth transition. This needs to be the focus of large corporations and governments alike. Pushing research and experimentation in such fields are essential (Martin, 2017).
Edited by: 浪子
Bibliography
Industry 4.0. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Industry_4.0
Bernard Marr. (2018). What is Industry 4.0? Here's A Super Easy Explanation For Anyone. Retrieved from
https://www.forbes.com/sites/bernardmarr/2018/09/02/what-is-industry-4-0-heres-a-super-easy-explanation-for-anyone/#60dac12c9788
Bernard Marr. (2016). What Everyone Must Know About Industry 4.0. Retrieved from
https://www.forbes.com/sites/bernardmarr/2016/06/20/what-everyone-must-know-about-industry-4-0/#70458861795f
Martin. (2017). Industry 4.0: Definition, Design Principles, Challenges, and the Future of Employment. Retrieved from
https://www.cleverism.com/industry-4-0/
Ministry of International Trade and Industry. (n.d.). Industry 4.0. Retrieved from
http://www.miti.gov.my/index.php/pages/view/industry4.0?mid=559
Industry 4.0 - The Fourth Industrial Revolution
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November 11, 2018
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Reviewed by 浪子
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November 11, 2018
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