What is Industry 4.0?
How is Industry 4.0 defined?
From the first industrial revolution, the development of new technology has driven changes in manufacturing processes. While the third industrial revolution saw the introduction of the computer age, Industry 4.0 is defined by the adoption of complete digital transformation.
This doesn't just mean introducing digital technology into assembly lines, but using advanced technologies to transform entire business models. From developing a smart factory that can perform and action real-time data analysis to implementing communication technologies that connect the entire supply chain. The fourth industrial revolution focuses on bringing real value and benefits to manufacturing businesses.
What is the main goal of the Industry 4.0 initiative for manufacturers?
Unlike previous industrial revolutions, where the entire focus was on improving manufacturing efficiency, Industry 4.0 brings a wider range of advantages to businesses. Although integrating advanced technologies to increase the output of production processes is one benefit, the main goal of Industry 4.0 is to help manufacturers become more sustainable, resilient and productive.
By doing this, manufacturers that adopt Industry 4.0 technologies and approaches can put their businesses in the best possible position to overcome the challenges of modern industry. Plus, those manufacturers in advanced stages of Industry 4.0 adoption can predict and prepare for these challenges, as well as identify potential opportunities, giving their businesses a huge competitive advantage.
What Fourth industrial revolution technologies are manufacturers using?
Considered a top priority for 68% of manufacturers surveyed by McKinsey back in 2019, many industrial companies have since adopted Industry 4.0 technologies into their businesses and manufacturers have looked to create a smart factory for their business.
As they move into the next stage of this industrial revolution, these are the key component technologies driving the changes.
Smart manufacturing processes
The machinery and capabilities of the production line look very different in the fourth industrial revolution. There's no single key technology which is transforming the production line. Instead, there is a range of smart manufacturing technologies which are at the base of any new business model.
These new technologies include:
• Automation: at the centre of Industry 4.0 manufacturing processes is an increased level of automation. Robots, software, and advanced machinery are taking care of increasingly complex tasks on the production line.
• Artificial intelligence (AI): these are algorithms which give machines 'human-like' skills. Data analysis, learning and decision-making are all capabilities that AI equips machines with.
• Machine learning: adding AI into assembly line machines means they're able to conduct and implement their own data analysis. With no human intervention, smart machines can make decisions, perform tasks more efficiently and even make improvements in other parts of the manufacturing process.
• Virtual and augmented reality: from smart glasses equipped with machine data to the metaverse. Enhancing or creating new realities can improve the efficiency of tasks, increase workers' capabilities and open up new opportunities.
• Industrial Internet of Things (IIoT): equipped with sensors, AI and data analysis, IIoT is a system of connected devices and sits at the base of all smart factories. IIoT technology enables greater capabilities such as remote monitoring, real-time data reviews and predictive maintenance.
• Additive manufacturing: a process often used for prototyping or product creation, this is otherwise known as 3D printing and involves the layer-by-layer construction of a CAD model.
Data exchange
Since the beginning of Industry 4.0, the value of data has always been clear. As well as gathering and analysing information, manufacturers are now starting to realise the value real-time data can bring.
Known as Big Data, a wealth of data collection through machinery and processes is now possible thanks to increased storage via cloud computing.
This also means software and business systems can be integrated together, including:
• Enterprise asset management: machinery, robotics and any other business assets can all be tracked and controlled under one system.
• Enterprise resource planning: by collecting large amounts of data, manufacturing businesses can start to analyse where their resources are required and assign them more easily during business-as-usual activities.
• Supply chain management: to make the supply chain as smooth as possible, increased transparency and communication between all stages of the supply chain is the aim of Industry 4.0.
Increased data sharing enables manufacturers to create a full horizontal and vertical integration of internal operations. This creates a base on which they can grow and sustain their business.
However, this extra data does raise questions about cyber security, one of the main challenges manufacturers face with Industry 4.0.
Cyber-physical systems
Smart and autonomous systems are useful, but as businesses start to take their Industry 4.0 operations to the next level, cyber-physical production systems are becoming more prevalent and essential. These systems bring the skills and capabilities of human workers and machines closer together.
Cyber-physical systems hold great opportunities for manufacturing businesses, which is why it's one of the fastest-growing sectors of the computer market. It's also been noted as one of the key technologies of the next industrial revolution, Industry 5.0.
What are the Industry 4.0 challenges for manufacturers?
Although Industry 4.0 holds huge opportunities for manufacturing businesses, it's also bringing about great changes in processes and systems. As the World Economic Forum notes in its latest survey, there are specific challenges manufacturers face when harnessing the full value of Industry 4.0.
Scaling digital transformation
Many manufacturers have already adopted Industry 4.0 technologies and are feeling some of the benefits these bring. Yet what marks top performers apart is their ability to scale this approach across their business.
To scale their Industry 4.0 transformation effectively, so-called 'lighthouse' businesses ensure they have a strategy that sets realistic goals and timelines while also planning for contingencies. As such, 88% of lighthouse manufacturers are on or ahead of schedule in their Industry 4.0 strategy compared to 60% of non-lighthouse businesses.
Alongside a strong strategy, ensuring leadership engagement and the right level of investment are noted by lighthouse businesses as key components to scaling Industry 4.0.
Workforce engagement
Getting and keeping teams on board with the Industry 4.0 strategy is a crucial step to scaling this new approach. A so-called 'smart follower strategy' gives employees a clear direction, invests in their training and provides the right resources, driving leading businesses towards success.
Connecting colleagues, providing upskilling training and linking together man and machine with digital tools is the best way to engage the workforce. Implementing smart workforce planning and optimisation has also brought about huge benefits for Industry 4.0 leading businesses.
Establishing new governance
To capture real value from implementing Industry 4.0 into their businesses, leading manufacturers have had to set new standards in terms of governance and value assurance. With the new capabilities brought about by Industry 4.0 technologies and approaches, the levels of product quality, production safety and best practices will rise.
As such, leading businesses have had to adjust their governance to reach these new standards. By combining new governance with strong leadership and strategy, lighthouse manufacturers have been able to realise the full potential of their Industry 4.0 investment.
What are Industry 4.0's benefits for manufacturers?
Integrating Industry 4.0 strategies presents challenges and high levels of investment. However, manufacturers adopting the technologies are gaining real benefits and competitive advantages.
Increased sustainability
Reducing carbon emissions, waste and water consumption and improving energy efficiency have all been noted by lighthouse businesses as sustainable benefits they've gained. This has been made possible by technologies such as advanced data-based optimisation and sustainable digital twins.
For businesses that want to meet strict legislative standards, fulfil corporate environmental commitments or set themselves apart from competitors, integrating an Industry 4.0 strategy is invaluable.
Resilient business models
Industry 4.0 helps to future-proof businesses. From forecasting customer demand to booking in predictive maintenance for machinery, these technologies can help businesses be more agile, manage risk and overcome challenging circumstances.
Integrating Industry 4.0 has helped lighthouse businesses become more resilient by:
• Monitoring and controlling end-to-end supply chains to minimise disruption.
• Enabling them to speed up delivery times and streamline inventories.
• More accurate resource and asset planning and performance monitoring, helping to enhance efficiency.
• Enabling the identification of opportunities and informing decision-making through advanced analytics.
• Gaining greater visibility over all aspects of a business, including critical infrastructure and global operations. This makes identifying problems and growth opportunities easier.
Enhanced productivity
Integrating Industry 4.0 processes and systems enable manufacturers to reduce production costs and increase efficiency. This includes increasing the output from production lines and reducing product, operational and quality costs.
Technologies such as AI-powered glasses, data integration platforms and advanced problem-solving capabilities all help to improve productivity. This helps businesses keep up with customer and market demands, including balancing mass production with product customisation.
What does an Industry 4.0 factory look like?
There are four main factors that separate Industry 4.0 factories apart from others. These factors are:
• Interoperability – how machines, devices and people connect and communicate with one another during production.
• Information transparency – how production systems create virtual copies of the physical world through sensor data.
• Automated decision-making – how systems make simple decisions to create a production process that’s as autonomous as possible.
• Technical assistance – how you establish systems that support humans in making decisions, solving problems and assisting with tasks.
By focusing on these four aims, manufacturing businesses can look to adapt their systems and processes, building a strategy that will keep them ahead of the curve.
What is Industry 4.0's future in manufacturing?
At present, many manufacturers are working to gain the greatest possible value from Industry 4.0. While most have now started to integrate new technologies and approaches into their business, the second step to the fourth industrial revolution involves getting the greatest number of benefits from these investments.
To do this, businesses can't just invest in digital technology but need to implement a strong strategy and engage with their workforce, particularly their leaders. So while there are no specific technological trends in the future of Industry 4.0, a value-based approach will mark the transition to the next revolution - Industry 5.0.
Rather than focusing on integrating digital transformation purely for business benefits, Industry 5.0 will encourage manufacturers to prioritise a human-centric, sustainable, and resilience-focused approach. This will require the development of smart factories, the implementation of cyber-physical systems and the integration of complex data platforms.
So, although there won't be a huge digital revolution in the future of Industry 4.0, there will be a significant shift in the strategic focus of the manufacturing industry.
How is Essentra Components working in Industry 4.0?
Essentra Components is constantly investing in Industry 4.0 processes and systems to help deliver hassle-free customer service. With a long-term strategy to replace legacy machinery, develop software systems and integrate these with customer data, the components manufacturer has already implemented Industry 4.0 strategies and technology which positively contribute towards its sustainability, resilience, and productivity.
By harnessing Industry 4.0 technologies, Essentra Components aims to improve its offering to customers. This includes creating the highest quality components and a straightforward distribution service that’s truly hassle-free.