Industry 4.0, also known as the Fourth Industrial Revolution, is poised to revolutionize the global industrial landscape. While in its most basic concept, enabling the digital representation of industrial processes and allowing to use this information right away to optimize manufacturing, it encompasses a range of technologies such as artificial intelligence, autonomous fabrication, the Internet of Things (IoT), big data analytics, cloud and edge computing, 5G networks, low latency communication, distributed sensors, digital assistance systems and blockchain. This essay will explore the concept of Industry 4.0 and the transformative impact it has on manufacturing processes, supply chains, and business operations from the perspective of ITRIs research partner organisation in Germany, the Fraunhofer Gesellschaft, with its institutes IZM and IPK cooperating with others on this high-impact field.
Industry 4.0, with its concept of digitally monitoring and connecting value streams in the manufacturing industries, represents the fusion of physical and digital systems, where intelligent machines, interconnected devices, and advanced analytics converge to enhance industrial processes. By integrating these cutting-edge technologies, Industry 4.0 aims to create smart factories, efficient supply chains, and secure systems for the digital era.
As the awareness of a status of a production process is key to digitalization, sensors to capture relevant information are either integrated in the process flow or retrofitted to give insight in key parameters which until now have only been monitored statistically in retrospect. This approach, dubbed Industrial Internet of Things (IIot) has emerged as the basis for the platforms underlying the concept of Industry 4.0. This concept does not only apply to tangible assets (equipment, inventory) but also to intangibles, like licenses or IP access rights, which jointly find their way into an industrial data space for subsequent processing.
With IIoT savy communication (i.e. 5G) allowing for seamless connectivity and near real-time data collection from various physical devices, it is enabling efficient communication and coordination. Distributed sensors placed throughout the production process capture data on temperature, pressure, performance, and other parameters. This data, coupled with advanced analytics, enhances decision-making, improves productivity, and enables proactive maintenance as well as real-time influence directly down into the shop floor to optimize productivity in a self organized way.
Supply chains are expected to be transformed through Industry 4.0 technologies. The mentioned real-time data exchange, the increased transparency of all aspects of fabrication, will ensure also a more efficient inventory management, reduce waste, and improve delivery times.
Another key to allow a feedback loop, is to have a secure, low latency communication. With the advent of 5G networks which not only provide faster data transfer speeds and increased capacity, but also low latency down to the ms-range, even real time feedback loops are possible. Such real-time decision-making allows for quick responses in parameter changes in the fabrication of changes in product priorization and thereby improved operational efficiency. As an example, in a machine shop a milling machine´s monitoring sensor indicates a out-of-tolerance wear, calling for maintenance to produce the high precision parts next on the list. However, parts with less stringent tolerance requirement are also still on the production list – and can automatically be pulled upfront, while the maintenance team is informed and getting ready for their work. This kind of a “self organized” production is only possible with the foundations of Industry 4.0 and expected to shape our future fabrication industry.
More recently, also Blockchain entered the arena, a decentralized and secure digital ledger, which is expected to a vital role in Industry 4.0. It enhances trust, transparency, but also adds traceability in supply chains by creating immutable and auditable records of transactions, highly relevant in strictly certified industries and more and more mandated by the regulatory framework. Blockchain technology as part of Industry 4.0 enables secure data sharing, streamlines supply chain processes, adds transparency and protects against fraud. Additionally, using blockchain based smart contracts, priorizations, situation-aware orders and much more can be enacted, giving Industry 4.0 not only a label for productivity improvement, but also shaping the business models of future industries.
Such real-time data exchange, the increased transparency into each and every aspect of the fabrication process and an improved understanding of process steps, finally allow the creation of a “digital twin”, which replicates the physical processes in a digital representation for real-time reaction to challenges – but also allowing simulations for future business situations, enabling management to plan ahead.
Advanced data analytics, powered by this “big data” and machine learning capabilities, generate valuable insights, enabling informed decision-making and continuous improvement, both by identify patterns, anomalies, and optimization opportunities in the running processes as well as giving insight in e.g. measures taken to anticipate a novel business opportunity.
While Industry 4.0 obviously presents immense opportunities, it also brings new challenges. The deep insight in processes and workflows can shift the negotiating power to those companies who have access to the data. As automation and AI replace certain job roles, the workforce needs to acquire new skills that complement technological. As of this, workforce reskilling and upskilling are crucial to address the changing job landscape.
As the promise of Industry 4.0 builds on trustworthy data, cyber-attacs may gain some new leverage, making detection and preventive measures more difficult than ever before. As blockchain is not immune to falsified original data, a blockchain encapsulated data set may intrinsically be regarded trustworthy, albeit the underlying information is supplied with malicious intent. IP and knowhow protection will also become more challenging, with data repositories being a vast source of value for the black hat operators.
Still, with Industry 4.0 still maturing and opportunities and challenges currently developing, it is expected by the success of early adopters that the challenges will be overcome and the opportunities persist, opening modern manufacturing a digital path to optimization, for cost, performance, reliability and eco-efficience.
