Industry 4.0 - Revision history

User at 17:25, 7 March 2024

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User: /* Three Horizons of Industry 4.0The Three Horizons of Industry 4.0 Deloitte Insights */

2021-03-30T19:32:35Z

Three Horizons of Industry 4.0The Three Horizons of Industry 4.0 Deloitte Insights

User: /* Industry 4.0 and the Fourth Industrial Revolution (4IR)Industry 4.0 and the Fourth Industrial Revolution (4IR) i-scoop.eu */

2021-03-30T19:15:28Z

Industry 4.0 and the Fourth Industrial Revolution (4IR)Industry 4.0 and the Fourth Industrial Revolution (4IR) i-scoop.eu

User at 19:08, 30 March 2021

2021-03-30T19:08:45Z

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2021-03-30T18:56:26Z

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User at 18:42, 30 March 2021

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 *The second industrial revolution is typically seen as the period where electricity and new manufacturing ‘inventions’ which it enabled, such as the assembly line, led to the area of mass production and to some extent to [[Automation|automation]].
 *The third industrial revolution had everything to do with the rise of [[Computer|computers]], [[Network|computer networks]] ([[Wide Area Network (WAN)|WAN]], [[Local Area Network (LAN)|LAN]], [[Metropolitan Area Network (MAN)|MAN]],…), the rise of robotics in manufacturing, connectivity and obviously the birth of the [[Internet]], that big game changer in the ways information is handled and shared, and the evolutions to e-anything versions of previously brick and mortar environments only, with far more automation.
-*In the fourth industrial revolution we move from ‘just’ the Internet and the [[Client Server Model|client-server model]] to ubiquitous [[Enterprise Mobility|mobility]], the bridging of digital and physical environments (in manufacturing referred to as [[Cyber-Physical Systems (CPS)|Cyber Physical Systems]]), the convergence of [[Information Technology (IT)|IT]] and [[Operational Technology (OT)|OT]], and all the previously mentioned technologies (Internet of Things, Big Data, cloud, etc.) with additional accelerators such as advanced robotics and AI/cognitive which enable Industry 4.0 with automation and optimization in entirely new ways that lead to ample opportunities to innovate and truly fully automate and bring the industry to the next level. Some also like to add the injection of technology and connectivity in the human/digital mind and body convergence to Industry 4.0
+*In the fourth industrial revolution we move from ‘just’ the Internet and the [[Client Server Architecture|client-server architecture]] to ubiquitous [[Enterprise Mobility|mobility]], the bridging of digital and physical environments (in manufacturing referred to as [[Cyber-Physical Systems (CPS)|Cyber Physical Systems]]), the convergence of [[Information Technology (IT)|IT]] and [[Operational Technology (OT)|OT]], and all the previously mentioned technologies (Internet of Things, Big Data, cloud, etc.) with additional accelerators such as advanced robotics and AI/cognitive which enable Industry 4.0 with automation and optimization in entirely new ways that lead to ample opportunities to innovate and truly fully automate and bring the industry to the next level. Some also like to add the injection of technology and connectivity in the human/digital mind and body convergence to Industry 4.0

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 *[[Artificial Intelligence (AI)|AI]] and [[Machine Learning]]: AI and machine learning allow manufacturing companies to take full advantage of the volume of information generated not just on the factory floor, but across their business units, and even from partners and third-party sources. AI and machine learning can create insights providing visibility, predictability and automation of operations and business processes. For instance: Industrial machines are prone to breaking down during the production process. Using data collected from these assets can help businesses perform predictive maintenance based on machine learning algorithms, resulting in more uptime and higher efficiency.
 *[[Edge Computing]]: The demands of real-time production operations mean that some data analysis must be done at the “edge”—that is, where the data is created. This minimizes latency time from when data is produced to when a response is required. For instance, the detection of a safety or quality issue may require near-real-time action with the equipment. The time needed to send data to the enterprise cloud and then back to the factory floor may be too lengthy and depends on the reliability of the network. Using edge computing also means that data stays near its source, reducing security risks.
-*[[Cyber Security|Cybersecurity]]: Manufacturing companies have not always considered the importance of cybersecurity. However, the same connectivity of operational equipment in the factory or field (OT) that enables more efficient manufacturing processes also exposes new entry paths for malicious attacks and malware. When undergoing a digital transformation to Industry 4.0, it is essential to consider a cybersecurity approach that encompasses IT and OT equipment.
+*[[Cyber Security|Cybersecurity]]: Manufacturing companies have not always considered the importance of cybersecurity. However, the same connectivity of operational equipment in the factory or field (OT) that enables more efficient manufacturing processes also exposes new entry paths for malicious attacks and malware. When undergoing a [[Digital Transformation (DX)|digital transformation]] to Industry 4.0, it is essential to consider a cybersecurity approach that encompasses IT and OT equipment.
 *[[Digital Twin]]: The digital transformation offered by Industry 4.0 has allowed manufacturers to create digital twins that are virtual replicas of processes, production lines, factories and supply chains. A digital twin is created by pulling data from IoT sensors, devices, PLCs and other objects connected to the internet. Manufacturers can use digital twins to help increase productivity, improve workflows and design new products. By simulating a production process, for example, manufacturers can test changes to the process to find ways to minimize downtime or improve capacity.

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 == See Also ==
 <div style="column-count:2;-moz-column-count:3;-webkit-column-count:3">
-[[Industry]]<br />
+*[[Industry]]
-[[Industry Analysis]]<br />
 </div>

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-*Process optimization. In this phase, companies look inward to improve current processes. Initiatives in this phase typically target a specific need and have a clearly visible ROI. These types of activities can represent the easiest step for organizations to take, as they represent cost savings, rather than the uncertainty of new processes.3 For example, solutions in this horizon include predictive maintenance4 of machinery and utilization of data5 for production process improvements. This generally requires a basic level of connectivity to enable data collection and analysis; however, it can be limited in scope. Thus, these solutions tend to be easier to implement as they represent a limited number of technologies targeting a specific issue. Further, they generally do not face as many of the organizational challenges or technological barriers that can arise when organizations try to link multiple different legacy systems in larger, cross-functional initiatives.
+*[[Process Optimization]]: In this phase, companies look inward to improve current [[Process|processes]]. Initiatives in this phase typically target a specific need and have a clearly visible [[Return on Investment (ROI)|ROI]]. These types of activities can represent the easiest step for [[Organization|organizations]] to take, as they represent cost savings, rather than the uncertainty of new processes. For example, solutions in this horizon include predictive maintenance of machinery and utilization of [[Data|data]] for [[Production|production]] [[Process Improvement|process improvements]]. This generally requires a basic level of connectivity to enable [[Data Collection|data collection]] and [[Data Analysis|analysis]]; however, it can be limited in scope. Thus, these solutions tend to be easier to implement as they represent a limited number of technologies targeting a specific issue. Further, they generally do not face as many of the organizational challenges or technological barriers that can arise when organizations try to link multiple different [[Legacy Systems|legacy systems]] in larger, cross-functional initiatives.
-*Process flow and quality. Companies working on the second horizon increase their level of connectivity to improve process flow and upgrade quality. In this phase, organizations can seek to evolve their supply chains toward digital supply networks,6 in which information flows throughout all stages of the interconnected value chain, enabling greater responsiveness and more informed decision-making. For instance, sales data can be collected and analyzed, then automatically transferred to sourcing and manufacturing systems; suppliers can more effectively connect to manufacturers’ systems for dynamic responses to shifts in supply and demand. Unlike the first horizon, more technological and organizational shifts are generally required, as well as a more critical imperative for systemwide connectivity. Further, benefits can take longer to realize, and can come with significant upfront investments.
+*[[Process Flow]] and [[Quality]]: Companies working on the second horizon increase their level of connectivity to improve process flow and upgrade quality. In this phase, organizations can seek to evolve their [[Supply Chain|supply chains]] toward digital supply networks, in which information flows throughout all stages of the interconnected [[Value Chain|value chain]], enabling greater responsiveness and more informed [[Decision Making|decision-making]]. For instance, sales data can be collected and analyzed, then automatically transferred to [[IT Sourcing (Information Technology Sourcing)|sourcing]] and manufacturing systems; [[Supplier|suppliers]] can more effectively connect to manufacturers’ systems for dynamic responses to shifts in supply and demand. Unlike the first horizon, more technological and organizational shifts are generally required, as well as a more critical imperative for systemwide connectivity. Further, benefits can take longer to realize, and can come with significant upfront investments.
-*New business models. In the third horizon, new business models are created. This can consist of new products, increased product personalization, or entirely new revenue models. For example, driven by strong demand from clients, many original equipment manufacturers (OEMs) are adding smart equipment into their portfolio, and some are even attempting to use these products to pivot from being a supplier to a service provider.7 While a great deal of companies can agree that truly transformative value lies in this horizon, many still struggle to formulate how to successfully realize an effective model.
+*New [[Business Model|Business Models]]. In the third horizon, new business models are created. This can consist of new [[Product|products]], increased [[Product Personalization|product personalization]], or entirely new revenue models. For example, driven by strong demand from clients, many [[Original Equipment Manufacturer (OEM)|original equipment manufacturers (OEMs)]] are adding smart equipment into their [[Portfolio|portfolio]], and some are even attempting to use these products to pivot from being a supplier to a [[Service Provider|service provider]]. While a great deal of companies can agree that truly transformative value lies in this horizon, many still struggle to formulate how to successfully realize an effective model.
-It is important to note that while these horizons tend to be progressive, they are not mutually exclusive; companies that have progressed to the second horizon can also have activities in the first horizon. Regardless of the mode of the implementation and the horizon in which initiatives fall, Industry 4.0 can have a strong impact, potentially boosting several performance indicators, including lower maintenance costs, decreased downtime, savings in inventory costs, gains in labor productivity, accelerated production time, and savings related to improved ability to predict outcomes. Indeed, one executive interviewed noted that, by adopting sensors and adaptive control technology, his organization was able to reduce cycle times by 30 percent.8 When it comes to implementing Industry 4.0 within these three horizons, manufacturers and suppliers seek the right technologies in which to invest, to obtain these types of benefits. Given their tangible results, initiatives with a clear link to ROI—or the first horizon, process optimization—have typically been easier for manufacturers to adopt. And, in fact, research has shown that operations and processes are the top areas for focus for Industry 4.0 initiatives.9 Indeed, based on Deloitte Israel’s analysis of 80 different Industry 4.0 use cases, approximately 50 percent of the time Industry 4.0 was implemented to optimize processes and reduce costs. Roughly 35 percent of the cases were targeted to improve the process quality and efficiency, and about 15 percent of cases directly improved the top line.
+It is important to note that while these horizons tend to be progressive, they are not mutually exclusive; companies that have progressed to the second horizon can also have activities in the first horizon. Regardless of the mode of the implementation and the horizon in which initiatives fall, Industry 4.0 can have a strong impact, potentially boosting several [[Key Performance Indicator (KPI)|performance indicators]], including lower maintenance costs, decreased downtime, savings in inventory costs, gains in labor productivity, accelerated production time, and savings related to improved ability to predict outcomes. One executive interviewed noted that, by adopting sensors and [[Adaptive Control|adaptive control technology]], his organization was able to reduce cycle times by 30 percent. When it comes to implementing Industry 4.0 within these three horizons, manufacturers and suppliers seek the right technologies in which to invest, to obtain these types of benefits. Given their tangible results, initiatives with a clear link to ROI—or the first horizon, process optimization—have typically been easier for manufacturers to adopt. And, in fact, research has shown that [[Business Operations|operations]] and [[Business Process|processes]] are the top areas for focus for Industry 4.0 initiatives.
 == Design Principles and Primary Drivers of Industry 4.0<ref>Design Principles and Primary Drivers of Industry 4.0 [https://en.wikipedia.org/wiki/Fourth_Industrial_Revolution Wikipedia]</ref> ==

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 The classic view of these four industrial revolutions, as Industry 4.0 became increasingly popular, was:
 *The first industrial revolution, which REALLY was a revolution, and, among others thanks to invention of steam machines, the usage of water and steam power and all sorts of other machines, would lead to the industrial transformation of society with trains, mechanization of manufacturing and loads of smog.
-*The second industrial revolution is typically seen as the period where electricity and new manufacturing ‘inventions’ which it enabled, such as the assembly line, led to the area of mass production and to some extent to automation.
+*The second industrial revolution is typically seen as the period where electricity and new manufacturing ‘inventions’ which it enabled, such as the assembly line, led to the area of mass production and to some extent to [[Automation|automation]].
-*The third industrial revolution had everything to do with the rise of computers, computer networks (WAN, LAN, MAN,…), the rise of robotics in manufacturing, connectivity and obviously the birth of the Internet, that big game changer in the ways information is handled and shared, and the evolutions to e-anything versions of previously brick and mortar environments only, with far more automation.
+*The third industrial revolution had everything to do with the rise of [[Computer|computers]], [[Network|computer networks]] ([[Wide Area Network (WAN)|WAN]], [[Local Area Network (LAN)|LAN]], [[Metropolitan Area Network (MAN)|MAN]],…), the rise of robotics in manufacturing, connectivity and obviously the birth of the [[Internet]], that big game changer in the ways information is handled and shared, and the evolutions to e-anything versions of previously brick and mortar environments only, with far more automation.
-*In the fourth industrial revolution we move from ‘just’ the Internet and the client-server model to ubiquitous mobility, the bridging of digital and physical environments (in manufacturing referred to as Cyber Physical Systems), the convergence of IT and OT, and all the previously mentioned technologies (Internet of Things, Big Data, cloud, etc.) with additional accelerators such as advanced robotics and AI/cognitive which enable Industry 4.0 with automation and optimization in entirely new ways that lead to ample opportunities to innovate and truly fully automate and bring the industry to the next level. Some also like to add the injection of technology and connectivity in the human/digital mind and body convergence to Industry 4.0
+*In the fourth industrial revolution we move from ‘just’ the Internet and the [[Client Server Model|client-server model]] to ubiquitous [[Enterprise Mobility|mobility]], the bridging of digital and physical environments (in manufacturing referred to as [[Cyber-Physical Systems (CPS)|Cyber Physical Systems]]), the convergence of [[Information Technology (IT)|IT]] and [[Operational Technology (OT)|OT]], and all the previously mentioned technologies (Internet of Things, Big Data, cloud, etc.) with additional accelerators such as advanced robotics and AI/cognitive which enable Industry 4.0 with automation and optimization in entirely new ways that lead to ample opportunities to innovate and truly fully automate and bring the industry to the next level. Some also like to add the injection of technology and connectivity in the human/digital mind and body convergence to Industry 4.0
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 [[File:The Four Industrial Revolutions.png|500px|The Four Industrial Revolutions]]<br />
 source: [https://www.spectralengines.com/articles/industry-4-0-and-how-smart-sensors-make-the-difference Spectral Engines]
 == Characteristics of Industry 4.0<ref>Four Main Characteristics of Industry 4.0 [https://www.infopulse.com/blog/the-main-benefits-and-challenges-of-industry-4-0-adoption-in-manufacturing/ Infopulse]</ref> ==

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 *[[Cyber Security|Cybersecurity]]: Manufacturing companies have not always considered the importance of cybersecurity. However, the same connectivity of operational equipment in the factory or field (OT) that enables more efficient manufacturing processes also exposes new entry paths for malicious attacks and malware. When undergoing a digital transformation to Industry 4.0, it is essential to consider a cybersecurity approach that encompasses IT and OT equipment.
 *[[Digital Twin]]: The digital transformation offered by Industry 4.0 has allowed manufacturers to create digital twins that are virtual replicas of processes, production lines, factories and supply chains. A digital twin is created by pulling data from IoT sensors, devices, PLCs and other objects connected to the internet. Manufacturers can use digital twins to help increase productivity, improve workflows and design new products. By simulating a production process, for example, manufacturers can test changes to the process to find ways to minimize downtime or improve capacity.
@@ Line 185: / Line 189: @@
 [[Machine Learning]]<br />
 [[Machine-to-Machine (M2M)]]<br />
-[[Nanotechnology]<br />
+[[Nanotechnology]]<br />
 [[Robotic Process Automation (RPA)]]<br />
 [[Human-Centered Design (HCD)]]<br />

← Older revision		Revision as of 18:53, 30 March 2021
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	'''Industry 4.0''' is signaling a change in the traditional [[Manufacturing\|manufacturing]] landscape. Also known as the Fourth Industrial Revolution, Industry 4.0 encompasses three technological trends driving this transformation: connectivity, intelligence and flexible automation. Industry 4.0 converges [[Information Technology (IT)\|IT (Information Technology)]] and [[Operational Technology (OT)\|OT (Operational Technology)]], to create a cyber-physical environment. This convergence has been made possible thanks to the emergence of digital solutions and advanced technologies, which are often associated with Industry 4.0.<ref>Defining Industry 4.0 [https://amfg.ai/2019/03/28/industry-4-0-7-real-world-examples-of-digital-manufacturing-in-action/ AMFG]</ref>		'''Industry 4.0''' is signaling a change in the traditional [[Manufacturing\|manufacturing]] landscape. Also known as the Fourth Industrial Revolution, Industry 4.0 encompasses three technological trends driving this transformation: connectivity, intelligence and flexible automation. Industry 4.0 converges [[Information Technology (IT)\|IT (Information Technology)]] and [[Operational Technology (OT)\|OT (Operational Technology)]], to create a cyber-physical environment. This convergence has been made possible thanks to the emergence of digital solutions and advanced technologies, which are often associated with Industry 4.0.<ref>Defining Industry 4.0 [https://amfg.ai/2019/03/28/industry-4-0-7-real-world-examples-of-digital-manufacturing-in-action/ AMFG]</ref>
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← Older revision		Revision as of 18:50, 30 March 2021
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	Whatever the cost, the value of Industry 4.0 comes from improving productivity and removing inefficiency at all levels, making it one of the most valuable ideas of our time.		Whatever the cost, the value of Industry 4.0 comes from improving productivity and removing inefficiency at all levels, making it one of the most valuable ideas of our time.
		+
		+
		+	== Industry 4.0 Equals Value Creation<ref>Industry 4.0 = Value Creation [https://www.bdo.com/insights/industries/manufacturing-distribution/the-middle-market-manufacturer-s-roadmap-to-in-(1)/the-middle-market-manufacturer-s-roadmap-to-indust BDO]</ref> ==
		+	You don’t need to be a tech whiz to turn the Industry 4.0 phenomenon to your advantage. The opportunity boils down to three areas of potential value creation: bottom-line impact, top-line growth and risk mitigation.
		+
		+	While value is created in different ways depending on where you are on the maturity continuum, incremental value is available to every manufacturer—but it must be rooted in incremental improvements to your current capabilities. It can start with a single improvement initiative in a single functional area. Even small, functional change has ripple effects throughout the entire enterprise. These single, incremental improvements should ultimately be performed against the backdrop of your overarching Industry 4.0 vision, strategy and roadmap to drive tangible ROI enterprise-wide.
		+	The key is to flip your thinking. Instead of focusing on specific technology features or tools, let your goals for value creation lead the way. The real goal for your business isn’t, for example, to have predictive maintenance capabilities; it’s for that predictive maintenance investment to reduce your mean time between failures, optimize return on invested capital and ultimately preserve or enhance asset value. Start with your high-level objective—whether it’s higher levels of performance agility, better inventory turnover or a reduction in production errors— and work backwards from there, asking the question, “How will information transparency, availability and automation unlock business value to this capability?”
		+
		+
		+	[[File:Industry 4.0 Value Creation.png\|400px\|Industry 4.0 Value Creation]]<br />
		+	[[File:Value Chain Integration.png\|400px\|Value Chain Integration]]<br />
		+	source: BDO
		+
		+
		+	Keep in mind that value creation opportunities will also evolve as you progress in Industry 4.0 maturity. Digitization can fundamentally change the nature of your relationships with suppliers and customers, fostering collaboration and breaking down traditional barriers. The linear supply chain will morph into an integrated value chain of mutually beneficial relationships where suppliers and customers collaborate to achieve efficiencies and lower costs by exchanging information and securely integrating systems and processes.
		+
		+	The integrated value chain is predicated on a new level of transparency and information sharing, including constant, bidirectional communication and inter-company visibility into everything from inventory condition, supply status and shipping delays to future-focused factors predicting shifts in demand. This flow of information and aggregated business intelligence across the supply network is often referred to as the digital thread, the lifeblood of Industry 4.0.
		+
		+	The real value of the digital thread comes from enabling faster speed to market and speed to decision, empowered by access to more relevant and timely information, enabling better business intelligence and greater intimacy with supplier performance and customer behavior. This sets you up for synergistic co-creation of value, where savings and opportunities are generated and shared between business partner organizations, resulting in “win/win/win” relationships.

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 [[Industrial Internet of Things (IIoT)]]<br />
 [[Manufacturing]]<br />
 [[Business]]<br />
 [[Organization]]<br />
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 [[Machine Learning]]<br />
 [[Machine-to-Machine (M2M)]]<br />
 [[Human-Centered Design (HCD)]]<br />
 [[Human Computer Interaction (HCI)]]<br />
 </div>
 == References ==
 <references/>