Prior to Industry 4.0, it was difficult to study the trends in manufacturing. Industry 4.0 has become a familiar term, but familiarity doesn't mean in-depth understanding, and it's possible to hear it too many times without understanding it in depth and missing out on significant opportunities. Industry 4.0 can represent the current industrial revolution, specification-specific technologies, integrated practices, and the desired state of affairs that manufacturers want to achieve. But what exactly is Industry 4.0?
What is Industry 4.0?
The origin of the term "Industry 4.0" is simple. It was first coined by the German government in 2011 to describe a project to digitize manufacturing. And it quickly evolved into a series of recommendations for how the technology should be implemented. If that were all there was to it, odds are we wouldn't have the opportunity to discuss the term again in 2020. But in 2016, Klaus Schwab, President of the World Economic Forum, explicitly linked the term to his speeches and writings on the Fourth Industrial Revolution. The term went beyond specific recommendations and is now used to denote a major revolution in manufacturing.
Defining Industry 4.0
In this context, Industry 4.0 becomes easier to quantify. Industry 4.0 is at the crossroads of information and operations technology, and in industrial manufacturing Industry 4.0 blends physical and digital systems that were previously in a state of separation. Why is this important? Because by addressing these issues, companies can dramatically improve efficiency, productivity and agility in ways never before possible. To understand the impact of Industry 4.0, we need to look back at the three industrial revolutions that preceded the Fourth Industrial Revolution.
Historical background of the Fourth Industrial Revolution
In the mid-18th century, the First Industrial Revolution replaced manual manufacturing through early mechanization of water and steam power. The Second Revolution introduced electricity, which made possible mass production and assembly lines in the early twentieth century. In the 1970s, computerization and automation triggered the massive Third Industrial Revolution. Decades later, the Fourth Industrial Revolution, also known as Industry 4.0, has arrived, reinventing manufacturing through the deep use of data to automate, predict, control and optimize operations. The advent of Industry 4.0 has enabled the acceleration of subsequent industrial revolutions.
Impact of Industry 4.0 on the value chain
In order to better understand Industry 4.0 and its importance, it is necessary to focus on the entire value chain from the supplier to the end customer. Re-imagined service and business models supported by smart manufacturing now allow companies to streamline production relationships from suppliers, producers and customers across the value chain. It also leverages technology to enable alignment between people, processes and products. Manufacturers and service organizations have access to unprecedented levels of data, making it easier to understand, control and improve all aspects of their operations.
Source of Impact - Industry 4.0 Technologies
Industry 4.0 doesn't just represent specific use cases or technologies. The point is that Industry 4.0 can leverage a range of complementary technologies to rapidly jumpstart digital transformation and enable massive growth. Engineering, manufacturing and service teams are realizing Industry 4.0 practices through the following specific technologies.
Standardized industrial connectivity using data
Making data actionable starts with the ability to unlock data that has never been available in devices, machines, and products in the past. While newer iterations of this approach have enabled native functionality to be interconnected, manufacturers are experimenting with other ways to make their factory floors and product lines interconnected (especially standardized interconnections), and even extending this to legacy devices that were never designed to share data.
Industrial Internet of Things
For manufacturers, Industrial IoT provides incredible insights into their products and operations so that data can be securely accessed, monitored, analyzed, and put to good use in a new way. Organizations can use this information to make smarter, faster business decisions.
Big Data, Analytics and AI to Inform Decisions
Building on the Industrial Internet of Things and interconnectivity, applying analytics and AI to production equipment and systems is becoming standard practice in Industry 4.0 to find previously undiscovered patterns or hidden obstacles, leading to real-time decision-making and, ultimately, improved efficiency.
Cloud computing makes data easier to utilize
Cloud-based systems have access to remote servers hosted on the Internet where companies can store, manage, and process their data and analyze it. From achieving scalability and efficiency to reducing operational costs, cloud computing has made a significant impact on nearly every aspect of modern manufacturing.
Using Automation and Robotics to Increase Productivity
While automation is not a new concept, Industry 4.0 offers smarter assets, equipped with computerized or robotic tools, and capable of complex learning and accurate task completion.
Augmented Reality (AR) Can Enhance Employee Capabilities
AR is able to superimpose digital information or objects onto the physical world to help employees use, maintain, and repair industrial machinery and equipment.AR provides a better way to provide employees with easy-to-use instructions for their work, resulting in increased productivity and safety.
Support your business with the Industry 4.0 model
Industry 4.0 gives organizations unprecedented insight into every aspect of their operations, and this pervades the entire enterprise. Industry 4.0 offers virtually unlimited possibilities to understand and improve every aspect of production.
Asset Optimization Intelligence: Enhanced asset condition monitoring capabilities can predict and prevent downtime in a variety of situations, ensuring higher machine productivity. Machine maintenance schedules can also be developed more intelligently by combining real-time data with algorithms based on past performance.
Digitizing workforce productivity: Augmented reality enables employees to improve their skills and acquire knowledge and skills faster and better. They can also switch between tasks more easily using digital work instructions as a guide. Since machines always operate at a higher standard, more automated processes can be consolidated while avoiding human error.
Reduce operating costs: Real-time visibility of the entire production process allows you to cut manufacturing costs by up to 15%. Reduce scrap and rework through real-time asset monitoring, digital work instructions, and predictive analytics to cut costs by up to 50%.
Scalable production management: As products become more complex, they require flexibility and agility in the production process to reduce downtime and ensure quality. By combining industrial IoT, augmented reality and analytics, companies can bring products to market quickly and scale up or down production seamlessly.
Overcoming obstacles and embracing Industry 4.0
While some companies are wary of Industry 4.0, the industry as a whole is embracing these technologies. Increasingly, embarking on a digital transformation to Industry 4.0 is critical to maintaining a competitive edge. But while most companies have recognized the value and inevitability of the fourth industrial revolution, they still need to grapple with the difficulties they face to achieve efficient adoption.
As stated in the Manufacturing Leader Journal review, PTC experts view the challenges facing manufacturing companies as "navigational purgatory." While companies are using Industry 4.0 to stay competitive, many have yet to realize the full potential of digital transformation. They tend to implement a variety of Industry 4.0 initiatives and strive to expand the scope of their experimentation. Fortunately, there are many ways to avoid the common pitfalls of Pilot Purgatory, and experts can address these issues with practical guidance.
Digital transformation doesn't happen overnight. Each of the technologies we've discussed is unique, so it's important to determine which combination fits your organization's digital transformation strategy and business goals. While full transformation cannot be done immediately, smart planning and the right technology can ensure that Industry 4.0 gets off to a quick start and continues to deliver value as it scales.
Unlocking the potential of the fourth industrial revolution
Perhaps the exciting thing about Industry 4.0 is that it is still evolving. While manufacturers across the globe have already seen the considerable benefits of Industry 4.0 technologies, there is still a huge amount of potential yet to be tapped.
What is clear is that, just like previous industrial revolutions, Industry 4.0 is transforming manufacturing as we know it. The companies that are already taking steps towards digitization now are the very ones that are at the forefront of the transformation and leading the market. If you're interested in Industry 4.0 practices and technologies, visit our Manufacturing, Services and Engineering Sector Solutions to learn how you can achieve your digital transformation.