If you are working in the manufacturing industry, you have probably heard the term: “Industry 4.0.” But what is it exactly? And what effect does it have on you?
Keep reading to learn about industry 4.0, explore the examples of industry 4.0 technologies, a closer look at the impact industry 4.0 is having on the manufacturing industry as a whole, and also discover the elaborate impact of the fourth industrial revolution.
Industry 4.0- Introduction
Industry 4.0 is another name for the Fourth Industrial Revolution, also known as 4IR. Industry 4.0 refers to the way of how technological breakthroughs like automation transform manufacturing, with impactful consequences affecting the ways we work, live, and relate to each other.
First described by Professor Klaus Schwab (founder and executive chairman of the World Economic Forum) in his 2016 book The Fourth Industrial Revolution, Industry 4.0 is a “fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.”
In recent human history, there have been three revolutionary periods when advances in technology essentially changed our industrial capabilities completely, and with them, our way of life as well.
The use of coal and steam power for automating production for the first time marked the arrival of the First Industrial Revolution. The Second Industrial Revolution brought mass manufacturing with the use of electricity to extend the production capabilities of humans. The Third leveraged information technology, electronics, and telecommunications technology for automating further production.
Industry 4.0 differs from the previous industrial revolutions in terms of the speed at which these developments are taking place, and also their tremendous scale, scope, and complexity. Industry 4.0 is remodeling all these facets of human life.
Instances of Industry 4.0 Technologies
Industry 4.0 technologies are now transforming manufacturing, systems management, and governance, creating ripples that are being felt across all walks of life.
Cloud infrastructure and unparalleled processing power, combined with smart sensors, better telecommunication technologies, and also rapidly advancing AI capabilities are giving rise to the Internet of things (IoT) where intelligent machines talk to each other and harness massive datasets for learning.
Technologies like computer-aided design (CAD), additive manufacturing (3D printing), robotics, and the advancements in materials science are transforming production, while robotic process automation (RPA) is creating efficient business workflows by automation of manual tasks.
All these technological advances, each ground-breaking in its own right, are coming together to give rise to extensively connected ecosystems where we can achieve more, with better effectiveness, in reduced time possible before.
What are the technologies in the 4IR? Let’s take a closer look.
Big Data, Artificial Intelligence, and Machine Learning
A growing number of connected machines and devices generates a huge amount of data. Big data – datasets pretty large and complicated to be taken care of by traditional data-processing procedures – has brought about new ways of deriving information, giving rise to advanced data analytics and artificial intelligence (AI). AI algorithms allow machines in solving problems and learn by searching huge datasets for patterns and play a crucial role in advanced automation.
The Internet of Things (IoT)
The Internet of Things is a connection of networked devices that take automation to new heights by “speaking” to each other. This machine-to-machine communication allows a connected supply chain mechanism that brings in greater visibility, integrity, and flexibility.
For example, if a shipment of materials gets delayed, an interconnected system can alert the other parts of the IoT to adjust their inventory tracking databases, production schedules, or even the manufacturing priorities. The IoT also enhances machine learning abilities by pooling the “knowledge” by numerous devices, like in the case of training autonomous vehicles.
Augmented and Virtual Reality
Augmented reality (AR) and virtual reality (VR) are the means of presenting information that bridges both, the digital and physical worlds and creates an interactive experience. AR overlays digital content on a camera feed of the world in real-time, augmenting the user’s experience of the real world (think Pokémon Go). VR replaces the user’s physical reality completely with an immersive three-dimensional simulated reality, that gets typically accessed through a special headset. AR and VR use cases vary from immersive gameplay and training to also creating interactive sales experiences which allow the customers to get a feel for products, easing their purchase anxiety. Additive Manufacturing (3D Printing)
Additive manufacturing is a technique of industrial production that creates three-dimensional objects by depositing layers of material, typically with the use of 3D printing technology. Additive manufacturing is further facilitated by computer-aided design, to be used frequently in combination with 3D object scanning.
Additive manufacturing reduces the generic material wastage, and can be further used to create lightweight geometric structures. It also facilitates the production of solid products that don’t need assembly, which can increase the overall structural integrity. Applications include rapid prototyping, part creation, and even mold production.
Advanced Robots & Robotic Process Automation
With the advances in AI, improvements in areas like machine vision and natural language processing are now leading to highly advanced robotic abilities. This is now giving rise to cobots – robots that work in collaboration with humans. Another technology that’s in line with robotics is robotic process automation (RPA), which uses software for the automation of repetitive business processes, improve operational efficiency, and liberate humans to focus on more important tasks. Cloud Computing
Cloud computing is the use of computing services like data storage, servers, networking, software, databases, cybersecurity, and even analytics without the need of a user needing to manage the systems directly involved. Instead, these resources get accessed on-demand through the cloud and then provided by data centers and various SaaS providers. Cloud services allow the companies to launch and scale their products more swiftly and with greater flexibility, reduced costs, risk, and maintenance.
Industry 4.0 Manufacturing: An Evolving Industry
The Fourth Industrial Revolution has completely transformed the manufacturing industry. It has changed everything, from the way we design products, to even the methods we use to manufacture them, and also how we market, sell and distribute them. And that’s not to mention the ways digital transformation has changed the myriad internal processes that are a part of running any kind of business.
Here are some of the ways Industry 4.0 is transforming manufacturing:
Unified Design & Engineering
Technologies like CAD and additive manufacturing have arranged the design and engineering process. CAD not just saves the draughting time but also increases the accuracy, reduces errors, allows plans to be rendered and then viewed in 3D, making it easy to share and collaborate on the schematics, and then integrate with computer-assisted manufacturing and enterprise resource planning software. This makes it simpler to do things like coming up with manufacturing specifications like BOMs, cut lists, and also the tool paths for CNC machining.
Predictive Maintenance
Connected machines can observe their own performance and also detect operating flaws, pushing alerts and even predictive maintenance, reducing equipment breakdowns and expensive repairs. In an article about Industry 4.0, McKinsey gives the instance of an African gold mine that discovered an issue with oxygen levels during leaching through equipment with smart sensors. Resolving that problem brought a 3.7% yield increase, resulting in $20 million of annual savings.
Optimization of Supply Chain
Industry 4.0 technologies bring greater visibility, insights, and control through the entire supply chain. This allows the supply chain managers to actively identify the bottlenecks and also improve their capabilities, bringing the products to market rapidly, affordably, and very predictably. Smart sensors, the IoT, and other emerging technologies like distributed ledger technologies (Blockchain) help in optimizing the asset tracking.
Visual Product Configuration, Pricing, and Quoting
For engineer-to-order products, visual product configuration, pricing, and quoting (CPQ) solutions can actually revolutionize the sales process. CPQ solutions allow the users – sales reps and buyers alike – to configure the complex products to exact specifications through a user-friendly visual interface.
By just clicking, dragging, and dropping, users can add or remove sections, resize the parts, change their colors, or even make a multitude of other adjustments, all in 3D. As users make changes, the price gets updated in real-time, and when they are satisfied with the product, the software automatically comes up with a quote.
With automation, CPQ boosts the conversion rates, reduces sales cycles, and also delivers an exceptional customer experience. Advanced CPQ solutions like KBMax also allow the buyers to interact with products in 3D before purchasing through different AR and VR simulations, touring structures, and even the operating machinery.
You Can’t Avoid the Fourth Industrial Revolution
Companies all over the world are using Industry 4.0 technologies to become more efficient, resource-productive, and even more profitable. As these practices become routine, manufacturers that fail in reaping the benefits of the Fourth Industrial Revolution will lag behind.
Customer expectations – B2C and B2B alike – are today higher than ever before, thanks to the rising customer experience standards established by on-demand services. 4IR technologies encourage better customer experiences. They offer you shorter lead times, reduce costs, eliminate order errors, improve the product quality, and also keep the customers informed at every step of the sales journey.
Industry 4.0 offers a lot more than the ability to digitize and streamline the existing processes and systems. Instead, it leads to opportunities for making more strategic decisions and also create new value propositions which serve as a lasting competitive advantage.
The Fourth Industrial Revolution, Industry 4.0, 4IR – whatever you call it, it’s here to stay. Are you prepared?
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