According to announcements, the Ministry of Economy, Entrepreneurship, and Crafts is expected to open a tender during 2020. to encourage investments in 4.0 technology. As there is no detailed information about the tender yet, this article will focus on defining/basic elements of Industry 4.0 and its technology.
Industry 4.0 – Definition
Industry 4.0, seen as a logical continuation of the previous three industrial revolutions, refers to the rapid digital transformation of processes within manufacturing industries (and other related industries).
The transformation is based on intelligent networking of machines (and other devices) using advanced information and communication technologies. The goal is to enable autonomous communication between devices, analyze and collect large amounts of data, make autonomous decisions, monitor assets and processes in real-time, create added value, and achieve vertical and horizontal integration.
The basis is the integration of information technologies with operational activities, leading to a stronger production organization.
The transformation of business models within Industry 4.0 results in the following improvements in the company, leading to increased profits, reduced costs, improved customer experiences, and innovation:
Industrija 4.0 – koje tehnologije ju čine?
Industry 4.0 relies on a range of new and innovative technologies, essentially including:
1. Industrial Internet of Things (IoT)
Characterized by connected devices communicating with each other and a central database (humans) via the internet. Devices typically have embedded sensors, and data received from each device is stored in the cloud for real-time analysis and decision-making.
2. Advanced Robotics
Autonomous Robots: Robots are becoming increasingly autonomous, flexible, and cooperative. They are expected to communicate with each other and exchange information, used for various activities, from picking products in warehouses to preparing products for shipment.
3. Additive Manufacturing (3D Printers)
Currently used for developing prototypes and individual components necessary for specific products.
In the future, widespread use of additive manufacturing is expected for producing small quantities of unique products that meet specific customer needs/desires.
4. Augmented Reality
Systems based on augmented reality can be used for various services, such as selecting parts in a warehouse or sending repair instructions for a device via mobile phones.
5. Simulations
3D product simulations are currently used for displaying products, materials, production processes, but stronger utilization is expected in manufacturing facilities.
6. Cloud Computing
Increased use of cloud-based software related to production (not just general processes within the company) is expected, driven by the implementation of other Industry 4.0 technologies, leading to more extensive data sharing within and beyond the company.
7. Cybersecurity
With increased connectivity, there will be a growing need for adequate protection of industrial systems and production lines.
8. Big Data and Analytics
Collection and analysis of data from various sources: production equipment and production system, the entire company system, customer and supplier systems. Opportunity to recognize certain behavior patterns, which allows for optimization of production quality, energy savings, etc.
9. Horizontal/Vertical System Integration
- Horizontal: Digitalization across the entire value chain through information exchange and connecting information systems (from customers to suppliers).
- Vertical: Integration of IT systems across all levels of hierarchy in the company (production, control, operational level).
*Detailed examples are at the end of the article.
What’s Next?
Although today many companies use the above technology individually in their business, the ultimate goal is to achieve a completely integrated, automated and optimized production, i.e. to develop a “smart” factory.
This will lead to greater efficiency, changes in traditional relationships between suppliers, manufacturers, and customers, as well as between humans and machines, and the development of new business models.
Many SMEs are not ready for the structural changes brought about by Industry 4.0 and are not developing the necessary business strategies to implement 4.0 technology. In comparison, as many as 90% of companies with a developed strategy achieved growth of at least 5% in 2019, while the same growth was achieved by 72% of companies that do not have a strategy and use an ad-hoc approach.
Perhaps it’s time to consider your business strategy? In which 4.0 technology could you invest to potentially leverage the opportunities offered by this tender?
***
Examples of 4.0 technology
***
Sources:
BCG: Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries
Deloitte Insights: The Fourth Industrial Revolution
Deloitte University Press: Industry 4.0 and manufacturing ecosystems
European Parliament briefing: Industry 4.0 Digitalisation for productivity and growth
European Parliament: Industry 4.0
Forbes: What is Industry 4.0? i-SCOOP: Industry 4.0: the fourth industrial revolution – guide to Industrie 4.0
Research Council of the Plattform Industrie 4.0: Key themes of Industrie 4.0
***
