Industry 4.0 (4 IR), or the Fourth Industrial Revolution, conceptualises a rapid change in the fields of technology, industries, and societal patterns and processes characterised by trends such as increased data use and storage, data connectivity, analytics, and human-machine interaction.
Industry 4.0 has reinvented how businesses design, manufacture, and distribute their products through integration of intelligent digital technologies such as industrial Internet of Things (IIoT) networks, artificial intelligence (AI) and machine learning, large-scale machine-to-machine communication (M2M), robotics and smart automation, and cloud connectivity, into manufacturing and industrial processes.
The 4IR involves a systemic change across sectors of economy and ways of functioning of organisations. A technology-driven revolution to achieve higher efficiency, flexibility, and productivity, it changes the way organisations and businesses work and grow as the advanced production facilities, storage systems, and smart machines used can trigger actions, control devices, and exchange information autonomously without any human intervention.
It aids transitions into knowledge economy (an economic system in which production and services are largely based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientific advance) by increasing reliance on intellectual capabilities than on physical inputs or natural resources.
From the First to the Fourth Industrial Revolution
The first Industrial Revolution between the late 1700s and early 1800s came with mechanisation through water and steam power: manufacturing began moving from a focus on manual labour and animal-driven labour to a more optimised form of labour where people used water, steam power, and other types of machine tools.
The second Industrial Revolution (around 1870), with the introduction of steel, promoted mass production concepts like the assembly lines with the use of electricity, oil and gas that enabled manufacturers to increase productivity and efficiency and make the machinery more mobile.
With the third Industrial Revolution starting in the late 1950s, manufacturers were using electronics and computers to promote automated production; field-level computers like Programmable Logic Controller (PLC) and communication technologies began to be used in the production process leading to automated production.
The fourth Industrial Revolution takes what was started in the third revolution-with the adoption of computers and automation-and enhances it with smart and autonomous systems with advanced technologies. It offers a more comprehensive, interlinked, and holistic approach to manufacturing as it takes digital technology to an entirely different level with the help of interconnectivity through the IoT, access to real-time data, the introduction of cyber-physical systems, etc.
Development of Industry 4.0
The advancements in the telecommunication and the Internet industry laid the foundation for the early developments in Industry 4.0 in the 1990s.
The term ‘Industrie 4.0’ was publicly introduced at the Hanover Fair in Germany in 2011 in related to a specific project of high-tech strategy of the German government rather than the promotion of computerisation or automation of manufacturing-which is what the term came to mean later.
On April 8, 2013, the Working Group on Industry 4.0 presented its final report comprising a set of Industry 4.0 implementation recommendations to the German federal government.
The term was popularised by Klaus Schwab, the founder of the World Economic Forum (WEF). In 2016, in his work The Fourth Industrial Revolution, he referred to it as constituting a significant shift in industrial capitalism and poised to generate “a world in which virtual and physical manufacturing systems cooperate with each other in a globally flexible manner”. The term now refers to the current era of emerging advanced digital technology.
The WEF annual meet in Davos, Switzerland, in 2016 had the theme of ‘Mastering the Fourth Industrial Revolution’. In October of the same year, the organisation announced the opening of its Centre for the Fourth Industrial Revolution in San Francisco.
Globally, many countries have introduced Industry 4.0 strategic initiatives, such as, Industrial Internet Consortium, USA; Industria 4.0, Italy; and Produktion 2030, Sweden.
Features
Industry 4.0 processes and technologies are characterised by interconnection-(devices, machines, sensors, and people connecting with each other through the IoT; information transparency that allows access to huge amounts of data to help make decisions and identify areas that can benefit from improvement to increase functionality; the ability of cyber physical systems (CPS) to perform their tasks as autonomously and make decisions; and technical assistance from systems to humans to assist in decision-making, problem-solving, and undertaking difficult or unsafe tasks.
What Industry 4.0 Involves
The digital transformation in Industry 4.0 begins with data collection. IoT devices connect computers and machines (smart factories) to provide a clear picture of the production facility with real-time data. AI and other technologies are then used to make sense of those large quantities of data.
Industry 4.0 operates through the IoT platform, mobile gadgets, human-machine interfaces, authentication and fraud detection, location detection technologies, smart sensors, and data visualisation.
Artificial intelligence Of the digital technologies that make Industry 4.0 possible, AI has a major role even as it is connected to the other technologies that shape the data and knowledge economy.
AI and machine learning allow manufacturing companies to take full advantage of the volume of the data generated not just in the production process but across supply chains and other business units including third-party sources.
It enables automation of operations and business procedures including automated inspections to support manual inspections and technical assistance.
Machine learning allows software to more accurately predict outcomes without explicitly being programmed in areas like production planning, predictive maintenance, machinery inspection, logistics, etc. Manufacturers can detect errors immediately, improve production efficiency, and reduce false positives.
AI-powered manufacturing, with solutions deployed at the edge, may result in up to 30 per cent yield improvements, up to 15 per cent waste reduction, and at least five per cent cut in operating costs.
Digitisation and integration Industry 4.0 is about digitisation of product and services through new methods of data collection and analysis that help companies to generate data on product use to refine products. It allows integration of processes vertically in the organisation including processes in product development, manufacturing, structuring, and service and horizontally, integrating internal operations from suppliers to customers as well as all key value chain partners.
Smart factories The smart factory, or intelligent factory, is a fundamental feature of Industry 4.0. It refers to a production environment in which production facilities and logistics systems are organised without human intervention. New technologies like IIoT, AI, robotics advanced sensors, embedded software, and augmented reality are integrated in the factory production facilities and in all operations.
Smart factories lead to higher productivity and improved quality due to increased automation, better maintenance especially predictive maintenance, optimisation of the various processes, improved efficiency, and customer response. Smart factories can produce customised goods that meet individual customers’ needs more cost-effectively.
Industrial Internet of Things The Industrial Internet of Things (IIoT) is a key component of smart factories.
The IIoT is a subset of the larger IoT and they share common technologies like sensors, cloud platforms, connectivity, and analytics.
The IoT is a general concept that refers to connections between physical objects like sensors or machines and the Internet. It is often used to refer to ubiquitous, consumer-oriented IoT products. But IIoT is a collective term that describes the connection of machines and production plants focusing on the specialised requirements of industrial applications such as manufacturing, oil, gas, and energy management, and utilities.
The IIoT is enabled by various technologies including the following.
- Cyber-physical systems (CPS) integrate the dynamics of the physical process with those of software and communication, providing modelling, design, and analysis techniques and making decentralised decisions.
The systems are used in various industrial processes to analyse, guide, and share intelligent actions, making the devices smarter. They enable virtual visualisation which means industries can be monitored and regulated even from remote locations.
- Cloud computing refers to the practice of using interconnected remote servers hosted on the Internet to store, manage, and process information.
With cloud computing, IT services and resources can be uploaded to and retrieved from the Internet (kept on cloud-based storage systems) as opposed to a direct connection to a server (local storage devices). The cloud is made up of servers in data centres all over the world.
The large amounts of data that fuel Industry 4.0 technologies reside in the cloud. It can be processed efficiently and cost effectively with cloud computing.
Today’s cloud technology provides the foundation for most advanced technologies-from AI and machine learning to IoT integration-and gives businesses the means to innovate.
Moving to the cloud is convenient for accessing and storing data. It can save companies financial costs including reduction in start-up costs for small- and medium-sized manufacturers.
- Edge computing is a distributed computing paradigm that stores computer data nearer to the location where it is needed. Unlike cloud computing, edge computing refers to decentralised data processing at the edge of the network. Data analysis done at the edge or where the data is created reduces latency time between when the data is generated and when a response is required; thus, it minimises security risks.
- Big Data analytics is the process of examining large and varied data sets (Big Data).
Big Data collected from assets, equipment, and IoT-enabled devices and even from outside the factory floor include market trends vis-a-vis R&D and design features, customer reviews, and data from various apps like weather and traffic apps that help ensure smoother logistics. Analytics powered by machine learning are applied to the data in real time for insights that help in decision-making and automation in all aspects of manufacturing and supply chain management.
- Smart sensors are critical in Industry 4.0 because they enable manufacturing processes to be more intelligent.
Sensor data, in the manufacturing environment, is the source of critical information which is then routed to a higher-level decision-making system enabling real-time monitoring to detect and predict a variety of situations.
Industry 4.0: Some Critical Concepts and Technologies
Industry 4.0 makes use of advanced technologies that bridge the physical and digital worlds; its full potential is, however, utilised only when they are used together.
The Fourth Industrial Revolution is powered by smart technologies (its critical ‘pillars’) that include the following.
Horizontal and vertical integration Industry 4.0 relies on horizontal integration where processes are tightly integrated at the ‘field level’—on the production floor, across multiple production facilities, and across the entire supply chain-and vertical integration where all the layers of an organisation are tied together and data flows freely from the shop floor to the top floor and back down again.
Augmented reality (AR) Augmented reality typically overlays digital content on to a real environment. It allows the use of smart glasses or mobile devices to visualise real-time IoT data, digitalised parts, repair or assembly instructions, training content, all while looking at a physical thing like an equipment. AR has major scope in maintenance, service, and quality assurance and technician training and safety.
Additive manufacturing (3D printing) Additive manufacturing, or 3D printing, was earlier used as a prototyping tool but now it has many uses including mass customisation and distributed manufacturing. Parts and products can be stored as design files in virtual inventories and printed when and where needed within minutes, precluding the need for actual production on or off site. 3D printing can now be done for metals, advanced polymers, ceramics, and biomaterials.
Robotics Autonomous robots are programmed to operate with minimal human intervention. With cutting-edge software, AI, sensors, and machine vision, their operations range from inventory scanning and tasks performed by drones to pick and place operations in factories, shipyards, depots, etc. Robots recognise, analyse, and act on information they receive from their surroundings. They can also perform delicate tasks.
Simulation/digital twins A digital twin is a virtual simulation or replica of a real-world machine, product, process, or supply chain based on data from IoT sensors, devices, and other objects connected to the Internet.
A digital twin can be used to identify a specific malfunctioning part, predict potential issues, and improve capacity and uptime for improved performance and maintenance of industrial systems and products.
Cybersecurity By using technologies like AI machine learning models and blockchain, companies can automate threat detection, prevention, and response and minimise the risk of data breaches and production delays across their networks. Cybersecurity helps organisations keep sensitive data safe, ensures users connect to the Internet securely, and detects and prevents potential cyber attacks.
Uses of Industry 4.0
The fourth Industrial Revolution offers opportunities in every area of the economy and society. Its concepts and technologies can be applied across all types of industries including discrete and process manufacturing, oil and gas, and mining.
Some general advantages of Industry 4.0 include improved efficiency and productivity of produced goods, improved data sharing and analysis, better decision-making, reduced production and supply chain costs, sustainability of goods, services and processes, increased flexibility and product customisation, easier regulation compliance, increased revenues for manufacturers, suppliers and governments, high returns of investments, and improved customer experience.
Specific applications of AI and advanced analytics allow collection and analysis of real-time customer insights and feedback from sources like social media, online reviews, and customer support interactions. R&D teams and product designers can identify consumer preferences and emerging trends quickly and include the feedback into the design process.
Manufacturing and smart factories lead to improved productivity and process automation. Companies have more information and options to explore new business models, improve conditions for workers in hazardous environments, develop customised products to meet demand, and fulfil environmental objectives.
It helps in supply chain optimisation, which helps companies gain greater insight, control, and end-to-end visibility across their entire supply chain. With real-time data from suppliers, inventory levels, production schedules, customer demand, and internal teams, it helps optimise logistics, balance supply and demand, improve order fulfilment, and enhance the overall supply chain and manufacturing efficiency.
Predictive maintenance/analytics enable manufacturers to identify maintenance issues in real time by using technology like data analytics and the IoT sensors. It helps in cost-effective maintenance, determining the problem or damage before the machinery fails or gets damaged.
Autonomous equipment and vehicles such as robots help manufacturers in collection of goods on the ground and streaming operations.
Additive manufacturing (3D printing) has progressed from primarily being used for prototyping to actual production.
Industrial Internet of Things (IIoT) characterised by connected devices aids in internal operations. It can be used to track inventory and goods; monitoring their location and movement.
The technology has applications in smart factories, wearable smart devices, smart cities, smart cars, smart homes, and smart appliances like thermostats that adjust the temperature to reduce heating costs.
On the energy front, Industry 4.0 technologies facilitate the collection and analysis of real-time data on energy consumption, transportation emissions, and other factors contributing to a company’s carbon footprint. IoT can be used to create smart grids that help reduce energy consumption and improve energy usage.
Concerns
Industry 4.0 can have a negative impact on certain sectors and arenas of activity.
Economic There is the high cost of setting up industry 4.0 leading to high investments. Business model adaptation also increases cost. The economic benefits from Industry 4.0 are often not clear for manufacturers and users.
Social Industry 4.0 may cause surveillance and distrust issues, privacy concerns, unemployment concerns, fears of potential redundancy of the corporate IT department, and a general reluctance towards change.
Political The concerns relate to absence of clear regulations and forms of certifications, data security issues, and an ambiguity concerning legal issues that may unfold.
Organisational These Concerns are around reliability and stability needed for critical machine-to-machine communication (M2M), maintaining the integrity of production processes, the threat of cyber-hacking with investing in cloud-based technology, protecting industrial know-how, and lack of adequate skill-sets among employees to expedite the transition towards Industry 4.0.
The Future
Industry 4.0 would change the way businesses are organised and conducted and the way business organisations function as a unit, especially vis-a-vis manufacturing processes but also in other aspects.
There are huge opportunities for increased productivity, efficiency, flexibility, sustainability, social inclusion, and prosperity but they are contingent on an enabling industrial ecosystem and a policy regime that supports such an ecosystem.
Importantly, Industry 4.0 is the vital step that leads to Industry 5.0 which goes beyond jobs and growth to achieve the goals of sustainable production, prosperity and well-being, and health of all, especially the industry worker who is at the centre of the production process.
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