Industry 4.0 Technology: Revolutionizing Productivity and Driving Competitive Advantage

Industry 4.0

Industry 4.0 Technology: Revolutionizing Productivity and Driving Competitive Advantage

With the introduction of Industry 4.0, the manufacturing industry faces the challenge of digital transformation, not only improving the difficulties encountered by factories, but also creating new products and services, and even new business models. This article will share the definition, impact, and technologies of Industry 4.0 so that you can understand that not only manufacturing industry is affected, but Industry 4.0 has already been integrated into our lives.

Scroll

What is Industry 4.0?

Industry 4.0 known as the fourth industrial revolution, is a high-tech project proposed by the German government. This plan is not only about creating new industrial technologies but also combining existing related industrial technologies, sales, and product experience to build efficient and adaptable smart factories through artificial intelligence.

The foundation of Industry 4.0 technical is the smart integrated sensor control system and the IoT(Internet of Things). By analyzing the collected data, it can propose solutions according to customers' intractable diseases, and even customization. It can also use computer forecasting to monitor and manage resources in real-time, reduce costs, and achieve supply chain optimization.

The Process of Industrial Revolutions 1.0 to 4.0

The first three industrial revolutions were aimed at accelerating process efficiency, enabling machines to achieve higher performance, and facilitating mass production and sales. However, Industry 4.0 is not considered the fourth industrial revolution but rather a "new generation of industrial transformation," and it has become the current trend in industrial development.

Industrial Revolution 1.0: This was the first industrial revolution, characterized by the replacement of human and animal power with "hydraulic" and "steam" power. It marked the beginning of machine-driven production in factories and the gradual shift towards centralized and organized operational models.

Industrial Revolution 2.0: During this period, "electric power" became predominant and was widely used in mass production. The concept of supply chain relationships emerged, and machines began producing other machines.

Industrial Revolution 3.0: With advancements in technology, "transistors" and "integrated circuits" came into existence. Electronic devices and information technology began to assist humans, reducing human error and increasing precision and automation in machine manufacturing.

Industrial Revolution 4.0: This is the current era of Industry 4.0. It emphasizes communication between machines and, in addition to automation, enables human-machine collaboration. This new paradigm offers capabilities for customization and service-oriented approaches, prioritizing customer needs. Industry 4.0 focuses on providing high flexibility and competitiveness by tailoring responses to different customer requirements.

Influence of Industry 4.0

The spread of Industry 4.0 has made many companies face the challenge of transformation. When competitors' manufacturing costs are reduced, quality is improved, and time to market is shortened, they are more and more able to meet the changing needs of consumers. If companies do not keep up with this pace, how to stand out in the market?

Industry 4.0 uses many technologies and optimizes them. It uses Human-robot collaboration to optimize production processes, improve productivity and quality, and enhance competitiveness and profitability. Sports brands such as NIKE, PUMA, etc., used to provide customized celebrity products to increase brand awareness, and then they promoted a new way that consumers can choose their favorite shoe materials, patterns, or colors through the Internet, creating unique products and sending them to consumers.

For another example, an international truck manufacturer has installed monitors in the engines and parts of the trucks, using machine learning to predict when the truck is likely to malfunction, automatically notify the owner, and even make an appointment with a nearby repair center, the system can automatically send the relevant parts and pass the details to the technician. These cases show that Industry 4.0 has impacted the lives of the public quietly, not only improving user experience but also bringing new revenue sources to many companies.

Three major projects of Industry 4.0

Smart factory: The production equipment is connected via the Internet, and the production system and process are intelligentized through Human-robot collaboration, thereby improving efficiency. The most crucial target is to meet the requirements of high customization. At this time, it is necessary to rely on technologies such as artificial intelligence, data analysis, and sensing systems. The optimization of the process will allow traditional factories to complete digital transformation.

Smart production: Smart manufacturing refers to analyzing the collected data through technologies such as the Internet and sensing, and establishing an automated supply chain from raw materials, product manufacturing, and business operations to packaging and distribution, thereby improving the overall production logistics management. If successfully introduced and implemented, it will enable many small and medium-sized enterprises to become creators and suppliers of industrial production technology, and greatly enhance their competitiveness in the market.

Smart Logistics: This project is based on information technology, which enables the entire logistics process, of transportation, warehousing, packaging, handling, processing, and distribution, to establish a sensing system for analyzing and adjusting in real time after collecting data. It also integrates logistics resources through the technology of the Internet and the Internet of Things, so that resources can be effectively and fully utilized, which not only reduces costs and controls risks, but also enables buyers to get products immediately, and makes automates logistics ultimately.

Technology of Industry 4.0

Industry 4.0 consists of nine science and technologies, including cloud, big data, automation, system integration, Internet of Things, cyber security, additive manufacturing, augmented reality, and simulation. Among them, the Industrial Internet of Things is the bridge that mainly connects all production and technology, and these nine technologies are accompanied by each other and can create a new ecosystem.

Cloud Technology: It is a computing method based on the Internet, which can use this technology to transmit various information, and has services such as storage, database, analysis, intelligence, etc., so that enterprises no longer need to spend a lot of time and money to maintain, many things can be done more efficiently. Therefore, many companies use it for data backup, recovery, virtual desktops, and big data, and then focus on more strategic tasks.

Automation: It refers to the operation of machinery and equipment in the process of production, in a way of no one or a few people. When the technology is widely used in industry, agriculture, commerce, scientific research, transportation, military, medical treatment, etc. This technology can improve production efficiency and shorten the product cycle, which has a very large impact on the manufacturing industry.

System Integration: In the field of information software, data from different systems are combined with other applications, and different functions are integrated into a single system. Through the connection of hardware and software, enterprises can implement each project in a shorter time and analysis more effectively according to the data.

Internet of Things: IoT is an interconnected system of computing devices, machinery, and digital machines that make the real world digitize. To put it simply, it is to let items go online, and through the Internet, information can be read or transmitted, and such technology can be applied in transportation logistics, industrial manufacturing, health care, personal or social fields, etc.

Cyber Security: Cyber security includes the security of network devices, network information, and network software. With the advancement of technology, the issue of network security has gradually been paid attention to. Hackers will steal confidential information through the network, or even intimidate to obtain money, some companies will use this method to attack their opponents, and network security is a measure taken to prevent these problems.

Additive Manufacturing: Additive manufacturing is the foundation of 3D printing. It is an additive process that can present 3D digital models compared to traditional subtractive manufacturing methods. This technology can achieve more flexible and creative designs.

Augmented Reality: AR is short for Augmented Reality. The camera image position, angle actuarial, and image analysis technology make the virtual world and the real-world scene combine and interacted, and the application in the work environment can facilitate communication between employees.

Simulation: This technology allows companies to simulate a product or production line and analyze whether the product or project is feasible, which can greatly reduce R&D costs and speed up the time to market.

How can Industry 4.0 create value?

With the advancement of science and technology, upgrading to Industry 4.0 or digital transformation has become the trend currently, however, it is believed that many enterprises do not really understand these concepts. Although there are many new technologies emerging and progressing, we should focus on the problems encountered by enterprises, and think about how to use these technologies to create more and higher value. Where can Industry 4.0 create higher value?

Supply and demand issues

One of the biggest challenges that many businesses face is supply and demand, what products to produce? How much do you require? When will production start? Sometimes estimating rely on experience or surveys which will need to stand many costs, such as raw materials, and insufficient or excess inventory. Through the accumulation and analysis of big data, digital transformation can conduct comprehensive evaluation through marketing activities, fashion trends, competitor development, and even economic factors in the market. It is easier to know the trend of demand than past to reduce unnecessary costs.

Time to market

How long does it take to go from the idea to the actual production? The production process will inevitably be carried out in different countries due to the location of sales and raw materials. With the advancement of science and technology, the speed of time to market has become a key factor in competitiveness. Some companies even want to shorten the process by cutting corners which results in poor quality. However, with the simulation, automation, and other technologies in Industry 4.0, the time from design to production can be shortened, and take the advantage of the market.

After service

In the past, many companies only focused on the product itself and did not plan for after-sales service. In fact, after-sales service can not only maintain brand loyalty but also bring new sources of revenue. Through predictive maintenance, remote maintenance, product parts tracking, or chatbot assistance, new service processes can bring a better experience to customers.

Labor force

Since the emergence of automated production lines, companies have begun to try to reduce labor costs. The introduction of machines can replace a lot of human waste, and through remote monitoring and management, only a few people can monitor, track results, and even optimize production capacity, and people can focus on work that requires more creativity and brainpower.

International Deployment of Industry 4.0

Germany: For Germany, Industry 4.0 goes beyond production and automation. It involves end-to-end management and services encompassing development, production, sales, and services. Germany aims to integrate enterprises, associations, and research institutions and even introduces the concept of Industry 4.0 in education.

United States: The United States, following the IT revolution it initiated, focused on reforming business models and services. After the financial crisis, the U.S. began implementing policies such as advanced manufacturing and the integration of virtual and real aspects, aiming to bring back manufacturing and create more opportunities and value.

China: China introduced the "Made in China 2025" policy and partnered with Germany to transform the world's factories into "World's Industry 4.0 Factories." China acquired several German companies in 2014 and 2015, particularly those leading in technology and market share.

Japan: Scholars in Japan once proposed that they excel in technology but lag behind in business models. Despite experiencing setbacks, Japan's progress in Industry 4.0 is still limited to individual companies.

United Kingdom: The city of Sheffield, a major industrial hub in the UK, has invested 2 billion NTD to establish the "2050 Factory." This initiative combines industry, academia, and various resources to provide Industry 4.0 solutions for the UK industry. Many companies are seeking collaboration opportunities in this regard.

Conclusion

In fact, not all enterprises are suitable to develop towards Industry 4.0. If they still operate with the old concept, they may spend a lot of money to introduce automation equipment and technology, but they still have no benefits. The most important thing is to think about how to use these technologies to stand out among most enterprises from the starting point of their own advantages.

Main photo by photographer: Life Of Pix, link: Pexels

References: Wikipedia / OOSGA

This article was created by Machsync, please do not distribute, give or sell for commercial use or in any way. Any use such as reprinting, excerpting, copying, and creating images is prohibited without permission. For reprinting, please contact Machsync.