Fourth Industrial Revolution | Industry 4.0
Industry
4.0, also known as the 4th Industrial Revolution, is changing how businesses
operate. This transformation is driving them to compete in new ways and on
different levels.
The
Fourth Industrial Revolution is creating a demand for new skills and new
competencies.
NICKY VERD.
The Fourth Industrial Revolution: Transforming Manufacturing with Smart
Factories
The industrial revolutions have
evolved over time. The first revolution introduced mechanization with water and
steam power. And, The second revolution brought mass production and assembly
lines powered by electricity. Furthermore, The third revolution incorporated
computers and automation. Now, the fourth industrial revolution builds upon
these advancements and enhances them further. Furthermore, It utilizes smart
and autonomous systems driven by data and machine learning. The fourth
industrial revolution is the digital transformation of
manufacturing/production and related industries and value-creation processes.
Industry 4.0, also known as the
4th Industrial Revolution, is changing how businesses operate. This
transformation is driving them to compete in new ways and on different levels.
Organizations must decide where & how to
invest in these new technologies and recognize which ones
might best encounter their needs. Without full knowledge of the changes &
opportunities Industry 4.0 brings, companies may be at risk.
Industry 4.0 manufacturing
brings about a transformative change by enabling data collection and analysis
across machines. This facilitates faster, more systematic, as well as more
flexible processes for manufacturing high-quality products at reduced costs.
The fourth industrial revolution
introduces a new era known as Industrial Revolution 4.0. It combines advanced
production techniques, operational strategies, and also the smart digital
technologies to create a digital venture. The characteristics of this venture
include autonomy, interconnectedness, and the capacity to analyze, communicate,
and utilize data for intelligent actions in the physical realm. It also
involves integrating smart, connected technology into organizations, assets,
and individuals, and is marked by the emergence of novel capabilities.
In 2011, during the Hannover
Messe, the German government introduced an initiative called Industry 4.0,
aiming to digitize manufacturing. Less than a decade later, the adoption of
Industry 4.0 principles has been remarkable, not only in Germany and Europe but
worldwide.
Table of Contents:
·
The Fourth Industrial Revolution: Transforming Manufacturing with
Smart Factories
·
The Fourth Industrial Revolution Cycle
·
Importance Of Fourth Industrial Revolution
·
Technologies Modifying Fourth Industrial revolution
·
Smart Factory Capabilities according to Learn Transformation:
·
5G could Stimulate Approval of Smart Factory Solutions
·
Key Elements of Smart Factory Transformations
·
The “Smart Factory–specific” Themes
·
Realizing the Value of Smart Factory Transformation
The Fourth Industrial Revolution Cycle
The fourth industrial revolution
integrates physical and digital technologies. It includes robotics, analytics,
high-performance computing, additive manufacturing, advanced materials, natural
language processing, artificial intelligence, cognitive technologies, and
augmented reality. So, It consists of 3 steps:
- Physical to Digital: Gather information from the
physical world & develop a digital record from physical data.
- Digital to Digital: Share information & uncover
meaningful insights using artificial intelligence, advanced analytics
& scenario analysis.
- Digital to Physical: Put in algorithms to
interpret digital-world decisions to effective data, to stimulate action
& change in the physical world.
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Importance Of Fourth
Industrial Revolution
The survey revealed that
respondents consider Industry 4.0 manufacturing as a crucial initiative, with
90% expressing the belief that it will have a significant impact in the next
five years. Only 9% downplayed its impact. In addition to this, The primary
objective of Industry 4.0 is to transform manufacturing and related industries,
including logistics, by making them faster, more customer-centric, and highly
efficient. Additionally, Industry 4.0 aims to move beyond automation and
optimization, exploring new business opportunities and models.
Below, we survey some key insights that can enable business leaders to imagine how the 4th Industrial Revolution could affect their worlds.
Leader’s Tip:
Encourage a culture of creativity, ongoing learning, and technological
acculturation in order to fully realise the potential of Industry 4.0 and smart
factories.
1. Fourth Industrial Revolution Affects Each
& Everything in Our Daily Lives-
The Industrial Revolution 4.0 just doesn’t
touch “manufacturers” but it can affect all of us. Industry
4.0 originates from the supply chain and manufacturing sectors, which are
fundamental to our world. The product life cycle includes product composition,
manufacturing locations, production processes, logistics for delivery, and
subsequent repair destinations also. Hence, All these aspects are integral
parts of understanding the journey a product undertakes throughout its
lifecycle.
Industry 4.0 principles will not
only modify the manufacturing process but also have the potential to impact the
movement of goods through distribution and autonomous logistics. Furthermore,
these principles can also influence the way consumers interact with the
products. Industry 4.0 goes beyond production by integrating smart technologies
and digitalization. It brings significant advancements that revolutionize
supply chain management, and delivery systems, and enhance the overall consumer
experience.
2. Fourth Industrial Revolution Improves
Productivity Through Optimization & Automation-
The goals of fourth industrial
revolution projects encompass several objectives: increasing profitability,
cost savings, error and delay prevention through automation, waste reduction,
real-time production acceleration, digitizing paper-based processes, and rapid
intervention in case of production issues. Industry 4.0 offers a range of
solutions to optimize various aspects, including asset utilization, production
processes, logistics, and inventory management, during lean transformation.
3. Real-time Data for a Real-time Supply Chain
in a Real-time Economy-
Fourth industrial revolution is about the
complete life cycle of products & manufacturing doesn’t stand on its own.
The complete value chain and ecosystem of manufacturing operations involve
numerous stakeholders. These are all customers. And customers also want to
improve productivity, regardless of where they fit in the supply chain.
The heightened expectations of
end customers, which encompass factors like product quality, timely delivery,
and exceptional customer experience, profoundly influence the entire supply
chain transformation. Certainly, This influence extends throughout the value
chain, encompassing manufacturing and extending beyond it.
4. Better Quality Products: IoT-enabled
Quality Improvement, Real-time Monitoring, and Cobots-
In the interconnected
environment where software, sensors, IoT technologies, systems of insight, and
customer interactions are pivotal, there is a substantial opportunity to
enhance product quality. Further, Automation, along with cyber-physical systems
and the Internet of Things, enables real-time monitoring of quality aspects and
reduces errors through the utilization of robots. Hence, This integration of
technology and data enables enhanced quality control throughout the
manufacturing and production processes.
Enough companies have increased the usage of
robots and at the same time hired more. The reason we mention it in the context
of quality is that this is certainly one area where you see cobots popping up
(cobots is a term for advanced collaborative robots or say more simply: robots
that fit cooperation between man and machine).
5. Higher Business Continuity through Advanced
Maintenance & Monitoring Possibilities-
When a central industrial asset,
such as an industrial robot in a car manufacturing plant, breaks down, it’s not
just the robot that is affected. So, The impact extends to the production
process, resulting in financial costs and dissatisfied customers. In some
cases, the breakdown can lead to a complete disruption of production. It’s anyone’s worst dream as business continuity is an
especially high concern.
In addition to fixing work,
resources, and costs, a damaged reputation and canceled orders can result.
Connecting industrial assets and monitoring them through the Internet of Things (IoT), and addressing potential
issues beforehand, offer significant benefits in VUCA environments.
Alerts can be set up, assets can be
proactively maintained, real-time monitoring & diagnosis becomes possible,
engineers can fix issues and the list goes on. A world of new maintenance
services opens up as we’ll see. No wonder asset management & maintenance
are the second largest area of IoT investments in manufacturing.
6. Better Working Conditions and
Sustainability-
Improving working conditions based on
humidity, real-time temperature & other data in the plant, Fast detection
& improved protection in case of incidents, detection of the presence of
radiation, gasses & so on, better communication & collaboration
possibilities, a focus on ergonomics, clean air & clean factory initiatives
the list goes on.
Hand-picked for you- Big Data/Analytics in Digital Supply
Chain Transformation
Technologies Modifying Fourth Industrial revolution
Digital transformation technology is so far
used in manufacturing, but with fourth industrial revolution, now it will
modify production. Additionally, It will drive to prominent efficiencies &
change traditional production relationships among producers, suppliers, and
customers—as well as between humans and machines. Learn
Transformation Experts tells some technology trends which shape the
fourth industrial revolution manufacturing.
1. Big Data Analytics-
In an advanced manufacturing fourth industrial
revolution context, the collection & broad assessment of data from many
different sources—production equipment & systems and consumer-management
systems—will be a format to hold up real-time decision making.
2. Autonomous Robot-
Robots will interact with one another &
work safely alongside humans & learn from them. These robots will have a
wide range of capabilities & also will cost less than those used in
manufacturing today.
3. Industrial IoT-
Industry 4.0 means that more devices sometimes
including unfinished products—will be enhanced with fixing computing. It will
allow field devices to communicate & interact both with one another &
also with more centralized controllers, as necessary. It will also distribute
analytics & decision making, enabling real-time responses.
4. Additive Manufacturing-
Companies have started to embrace additive
manufacturing, such as 3-D printing, which they use mostly to prototype &
generate individual components. Industry 4.0 principles promote
the extensive utilization of additive manufacturing methods to produce
customized products in small quantities. Moreover, These methods offer
construction advantages, including the ability to create compound and
lightweight designs.
5. The Cloud-
More production-related agreements will need
increased data sharing across sites & company boundaries. Further, The performance of cloud technologies will improve, obtaining
response times of some milliseconds. Consequently, machine data and
functionality will gradually transition to the cloud, enabling the development
of data-driven services for production systems.
Smart Factory
The smart factory is a supple system that can
self-optimize performance across a wider network, self-adjust to & learn
from new conditions in real or near-real time, and freely run complete
production processes.
The smart factory, a quintessential term from
Industry 4.0 & smart factory, use an amalgam of connected devices, data
& artificial intelligence to make manufacturing more flexible and
responsive, actually revolving around big data analytics, Industrial IoT,
connected physical equipment, production techniques, & what can be done
with it in a cyber-physical scope.
The strategic importance of smart factories is
unquestionable, as early acceptors have reported operating more efficiently
& driving more to the conclusion. In the US alone, 86 % of manufacturers
believe that smart factories will be the main driver of competition by 2025.
Moreover, 83 % believe that smart factories will modify the way products are
made.
Research on smart Factory:
Research constantly discloses improvement in
quality, cost, safety, throughput, and revenue growth through the
implementation of smart factory technologies that integrate capabilities in the
industrial internet of things (IIoT), robotic process automation (RPA), cloud
and edge computing, machine learning, artificial intelligence (AI) and
augmented and virtual reality systems, among others. Leaders have a wide range
of choices & opportunities concerning smart factory transformations, both
in terms of which technologies to use, and how to deploy them during the
process of business transformation.
What manufacturers genuinely need is a partner
skilled in all 3 features, who has sound knowledge of machines & the
manufacturing process, who can find how and where digitalization can help, and
who can install as well as service the tools needed to get there.
The productivity gains achieved through smart
factory initiatives will help the manufacturing industry to add $2.2 trillion
of value to the global economy by 2023. So far, even if the expected average
added value from smart factories is high at $1.9 trillion & expectations
concerning smart factory benefits are on the hike.
Smart Factory Capabilities according to Learn
Transformation:
- Eases end-to-end
integration with suppliers & customers.
- Provide real-time,
on-demand performance progress reports noticeable across the production
supply chain transformation.
- Filter processes as well as
master production through advanced analytics.
- Give the information &
technologies to enhance physical process control.
- Enables supple, adaptive
& energetic production.
5G could Stimulate Approval of Smart Factory
Solutions
5G could be the prime factor leading the
growth of smart factory solutions. Analysts predict that 5G will be a prime
answer to smart factory adoption since it provides higher bandwidth & speed
as well as low latency. Moreover, It can enable more organizations to adopt
smart factory solutions like autonomous guided vehicles, warehouse automation,
automated assembly lines & condition-based monitoring,
Many companies have started developing
5G enabled smart factory technologies.
Mitsubishi Electric has been experimenting
with 5G networks to strengthen human-machine interfaces for manufacturing. At
its 5g connected plant in Texas, Ericsson has also been working on 5G
infrastructure equipment. The first millimeter-wave Street Macros base stations
were gathered at the factory initially this year. In South Korea, many big
telecommunications operators including KT Corp, SK Telecom & LG Uplus Corp
have evolved 5G enabled smart factory solutions to help SMEs in magnifying
their manufacturing output & reducing costs.
Key Elements of Smart Factory Transformations
“How will you make certain that you can modify
your processes & people when they have been working for so many years, and
give them tools involve them?” In this section, we take envision from some
interviews to expose the key elements of smart factory transformations.
The Familiar Themes:
Change Management in Smart Factory
Transformations-
1. Human-centered Design Based on Real User
Needs-
Successful smart factory transformation
leaders know that it is a need to consider user-oriented perspectives to
achieve business objectives when designing smart factories. So, Take some time to understand how individual roles to work &
what tools they need, involving a “human-centered approach to understand what
[the user’s] trouble points are & making sure we understand how they need
to use information, why they need to inspect it, what they need to look for
& how they need to take action on it“.
By prioritizing the user’s
needs, one can identify and address issues and behaviors that require change.
Subsequently, the focus shifts to leveraging technology to support these
efforts. The key is to consider not just how to make the technology engaging
but also how to make the application relevant and valuable to the user. The
human element is a crucial factor that must be properly understood and
incorporated; failure to do so can result in investment failure for projects.
2. The Top-down, Bottom-up Approach led by
Change Champions-
Change champions play a vital
role in leadership transformation by providing support both at the strategic
level and on the ground. Further, They help eliminate barriers, secure
organizational buy-in, and articulate the business case for implementing smart
factories. Leaders understand the significance of executive-level sponsorship
as these initiatives often require significant investments of resources, such
as time, personnel, finances, and assets. By having strong support from
leadership, organizations can effectively drive the adoption of transformative
initiatives. They also speak regularly about the need for a project sponsor to lead
projects forward.
More than that, support from every side is
important when the rubber meets the road. Senior leaders across
operations, strategy, supply chain, and other functions can strategically
leverage the smart factory transformation to generate value at a network level. Those on the ground— manufacturing operators, plant
managers, technicians, plant engineers & others—can drive change &
results on the shop floor. As one individual noticed, “If any factory wants to
introduce Industry 4.0 or a smart factory. It has to be a top-down, bottom-up
approach. Thus, It must be both sides. That would be the greatest key to
success.”
3. Diverse Teams with a Broad Variety Of Skill
Sets-
Diversity reproduces vision. So,
The required skill sets for the smart factory transformation include IT,
engineering, production, supply chain, user interface designs, master data
management, analytics, finance, digital marketing, and human resources, among
others.
Cross-functional teams play a
crucial role in minimizing the likelihood of overlooking important controls,
processes, and cultural elements during the transformation process. By
involving representatives from different functions, these teams help ensure a
comprehensive approach to the smart factory implementation, enabling the
delivery of value across the organization. Research shows that
cross-functional teaming has resulted in greater organizational innovation
& growth. Hence, This means transformation
leaders should take pains to make sure that the right skills are implemented at
the right time, and that a diverse mindset can inform the complete approach.
4. Ongoing Support & Learning-
In order to successfully
implement the smart factory, organizations must consider how to acquire new
skills and develop existing skills within the company. Skill acquisition and
development pose significant challenges for organizations, as highlighted by a
recent global survey where only 14% of C-level manufacturing leaders strongly
agreed that their organizations currently possess the skills needed for future
requirements in lean transformation. Addressing this skills gap becomes crucial
for organizations to effectively embrace the smart factory concept.
Smart factories require new and
different skills due to advanced technologies, posing challenges for
upskilling. Organizations can sustain smart factory systems through
collaborations with universities, alternative talent models, and leveraging
ecosystem partners for skills.
The “Smart Factory–specific” Themes
1. Connectivity is Critical-
It all starts with connectivity. It would be
fair enough to say the smart factory and its resulting value normally hook on
the ability to connect assets, people, processes & devices. This is not a
small task. According to the Deloitte-MAPI survey, 33% of smart factory leaders
identified a lack of required IT infrastructure as a major obstacle to smart
factory initiatives. The connectivity of applications and processes to the
network is crucial for sharing and accessing information. Without proper
network connectivity, even well-designed applications or processes are bound to
fail.
Yet that connectivity provides multiple
opportunities to reform how value is captured within the smart factory, and
beyond it. Leaders should consider not only the connectivity and data
collection within the factory premises but also the scalability of connectivity
and data sharing across networks and ecosystems. This holistic approach enables
effective leadership transformation and facilitates the seamless flow of data
for informed decision-making and collaborative efforts.
Implementing smart factory
technologies across the network requires a carefully planned strategy with
certified advisors. It involves developing a flexible digital infrastructure to
meet the specific demands of each environment.
2. Managing the Reality Of Diverse Devices-
The diversity of sensors, machinery& other
devices that exist on the shop floor is important to consider. You must be able
to connect it & make it all work together. Smart factory practitioners
interviewed as part of the research:
- Diversity in Purpose: New real-world
applications of devices allow teams to innovate, explore data collection
methods, and discover value opportunities.
- Diversity in Age: Smart factory
deployments encompass both cutting-edge manufacturing technologies and
longstanding ones. As one leader noted, “Connecting
these old machines, from the 1950s & 1960s, was a challenge.” Combining
these age groups can be challenging, yet it can also unlock significant
value by providing leaders with access to data on functions and processes
that were previously inaccessible.
- Diversity In Data Structure
And Format: Data comes from different sensors & devices and takes many
formats. Integration
and interoperability are crucial in a smart factory to ensure seamless
data flow and compatibility between systems and devices. Cleansing & mapping efforts are often critical to
developing visibility into smart factory processes.
3. Bridging the IT/OT Divide-
Developing a seamless
integration between information technology (IT) and operational technology (OT)
is a major challenge for 27% of respondents in the Deloitte-MAPI survey,
impeding the advancement of smart factory initiatives. Some OT leaders & teams may also experience discomfort with
agile sprint methods, which are meant to enable change swiftly. IT
organizations have historically made large investments in qualifying &
securing technology assets. Obtaining balance among competing priorities, and
understanding across different professional cultures can make all the
difference.
Realizing the Value of Smart Factory
Transformation
How can companies shift from lessons learned
from smart factory transformations toward outcomes, and the methods smart
factory capabilities make processes & organizations better? We
explore some of these opportunities.
1. Illuminating the Hidden Factory-
The important thing is connectivity & the
need to connect assets and data across a wide range of platforms, systems &
data structures. Once its assets are connected, they free a flood of
information to be unraveled, translated & acted upon. The addition of new
data enables organizations to see things that were always present, but
previously impossible to observe.
2. Grip Current Systems in New Processes to
Achieve Operational Excellence-
Companies can digitally combine
systems and leverage data to enhance lean manufacturing, workforce management,
and optimize operations, leading to higher productivity and talent leverage in
organizational transformation.
3. Authorize Digital Lean-
Approaches such as lean have been used for
decades to optimize processes &workflows, maximize value, identify &
reduce waste. Companies can digitally combine systems and leverage data to enhance
lean manufacturing, workforce management, and optimize operations, leading to
higher productivity and talent leverage in organizational transformation.
4. Utilize AI
& Other Advanced Tools to get to the Next Level-
It is an amalgam of humans & technology,
including IT and OT, that makes a smart factory smart. Physical
technologies like robotics have transformed smart facilities. IoT, cloud, and
edge computing have facilitated data integration. AI enables various
applications, such as robots with navigation and human-like vision and hearing
for quality sensing and asset health prediction.
It can lead to predictive maintenance;
dynamically route inputs and analyze, sense, and energetically respond to
circumstances. AI can optimize product and process performance through digital
twins and digital threads, enabling observation and improvement. Digital twins allow companies to capture value by detecting
potential issues sooner.
Likewise, AI can be installed in the digital
thread, creating a digital record of the life cycle of products themselves.
Some leaders reported double-digit % improvements in machine utilization,
production processes, and throughput by installing AI-driven capabilities.
5. Scale throughout Networks & Ecosystems-
Scaling smart factory
capabilities and processes throughout the enterprise network maximizes the
recognition of value on a broader scale. For example, a consumer products
manufacturer obtained substantial ROI by leveraging advanced analytics and AI
to optimize input purchasing decisions across its manufacturing network.
In another, a biopharma company predicted a
net value of US$50–75 million year over year in expense reduction. Data and
information influx can drive improved operations across the network and even
have a positive impact on the broader economy.
Leader’s Tip:
By making upskilling investments, encouraging human-machine
collaboration, and cultivating a digital mentality, you can lead the workforce
change.
Final Word
Technology-driven change in almost any
organization appears inevitable. Industry 4.0 technologies permit us to connect
all the stakeholders, including the product, into a resource for feasibility
and future development in the penetrating society.
Key Takeaways:
·
Digital transformation is fueled by Industry 4.0 and smart factories,
which also optimise operations, enable predictive maintenance, and improve
product customization.
·
Successful implementation, strategy alignment, fostering data-driven
decision-making, and resolving workforce difficulties all depend on effective
leadership.
·
Organisations may stay competitive, achieve operational excellence, and
satisfy changing customer demands in the digital age by embracing Industry 4.0
and smart factories.
This blog is originally taken from : https://learntransformation.com/fourth-industrial-revolution-smart-factory/
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