We’re in the midst of a significant transformation regarding the way we produce products thanks to the digitization of manufacturing.
This transition is so compelling that it is being called Industry 4.0 to represent the fourth revolution that has occurred in manufacturing. Although the terms “industry 4.0” and “fourth industrial revolution” are often used interchangeably, “industry 4.0” factories have machines which are augmented with wireless connectivity and sensors, connected to a system that can visualize the entire production line and make decisions on its own.
Even though some dismiss Industry 4.0 as merely a marketing buzzword, shifts are happening in manufacturing that deserve our attention.
In essence, industry 4.0 is the trend towards automation and data exchange in manufacturing technologies and processes which include cyber-physical systems (CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud computing, cognitive computing, and artificial intelligence.
There are four design principles in Industry 4.0. These principles support companies in identifying and implementing Industry 4.0 scenarios.[
- 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)
- Information transparency: The transparency afforded by Industry 4.0 technology provides operators with vast amounts of useful information needed to make appropriate decisions. Inter-connectivity 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.
- 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.
- Decentralized decisions: The ability of cyber-physical systems to make decisions on their own and to perform their tasks as autonomously as possible. Only in the case of exceptions, interferences, or conflicting goals, are tasks delegated to a higher level.
Advantages of Industry 4.0
- 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.
- 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.
- 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.
Challenges facing Industry 4.0
- Capital: Such a transformation will require a huge investment in a new technology that doesn’t sound cheap. The decision to make such a transformation will have to be on the 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.
- 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 and will be further analyzed later in this report.
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