EVERYTHING YOU NEED TO KNOW ABOUT INDUSTRY 4.0
During industrialization revolution
There have been many transitions from hand production to machine which simplified tasks and increased efficiency in production. Then came the digital era where electronics and computers were used to automate industries to improve efficiency and increase the speed of production. Thanks to the fast evolving technology, today we have Industry 4.0. What is Industry 4.0 you ask? It’s not just a futuristic buzz word. It is expected to revolutionize industry production.
Industry 4.0 is the new phase of the industrial revolution involving advanced manufacturing techniques and Internet of Things coming together to create a “smart factory”. Internet of Things (IoT) is a system where computing devices connect to the internet enabling them to transfer data with little human input. Thanks to the growth and popularity of IoT many factories around the world are becoming interconnected as cyber-physical systems communicate and interact with each other and humans in real-time via web.
Smart factory for smart growth
The smart factory is where cyber-physical systems collaborate with each other and monitor physical processes of a factory to make decentralized decisions. Originally introduced in Germany, the smart factory has led to significant reduction of downtime and wastage bringing in quality and efficiency in factory production. Think of it as doing more with less. Industry 4.0 brings in a new era of increased connectivity by the implementing smart factory. With the use of smart and autonomous technology, Industry 4.0 aims to connect computer devices with physical actions to enable advanced manufacturing.
Industry 4.0 combines the use of Internet of Things (IoT) with physical technologies, analytics, robotics, artificial intelligence and cognitive technologies to fully digitize factory operations. Analytics and Internet of Things are the two main technologies driving Industry 4.0. Analytics can identify data patterns, model equipment behavior and predict outcomes in a manufacturing setting.
Embracing the Industry
For a company to adopt Industry 4.0 they must include the following four design principles into their systems:
- Machines, devices, sensors and people to connect and communicate / IoT.
- Information transparency
- Information systems creating a virtual copy of the environment via sensor data that enriches digital plant model.
- Technical assistance
- First the ability of systems to support humans in aggregating and visualizing information thoroughly before making informed decisions and solving problems.
- Second ability of cyber-physical systems to assist humans on tasks that are unsafe or too difficult.
- Decentralized decisions
- Cyber-physical systems to making decisions on their own and performing autonomous tasks.
The risk of cyber crimes in Industry 4.0
As factories, customers, and operations connect the risk of cyber crimes increase. To be safe, factories adopting Industry 4.0 need to integrate cyber security strategies that foster resilience. Apart from cyber security, there may be other issues along the way. As manufacturing companies start to appreciate the benefits of Industry 4.0 there is the risk of workforce reduction. Ensuring factory processes is fully transparent without requiring human input is a challenge. In addition, there is the lack of know-how by the workforce to implement these systems into factory operations.
Onward and upwards
However, the pros of adopting Industry 4.0 in a manufacturing setting outweigh the cons. According to PwC, companies are anticipating a 3.6 % p.a. reduction in costs over the next five years as a result of internal improvements and working closely across all value chains. In addition, companies are expecting to see a 2.9% increase in revenues p.a. because of digitizing operations.
Other reports suggest that emerging economies like India will benefit significantly from adopting Industry 4.0. According to the words of Helmuth Ludwig, CEO at Siemens Industry Sector, “the future of smart factory is today. Previously, industrial value chain including product designs, production planning, production engineering, and production processes was implemented separately. Today new technologies are bringing these worlds together in exciting ways.”(Hessman)
There is no doubt that Industry 4.0 is the future and companies which have already started using this new technology should expect to reap tremendously as the landscape begins to change.