Industry 4.0

Overview

Industry 4.0 implies the utilization of different technology trends, mainly digital, to offer solutions to future challenges such as higher productivity and efficiency, better and faster decision making, mass personalization of new products, higher transparency and lower cost.

The concept of Industry 4.0 appeared for the first time in an article published in November 2011 by the German government that resulted from an initiative regarding high-tech strategy for 2020.

 

The Fourth Industrial Revolution is still in its nascent state. But with the swift pace of change and disruption to business and society, the time to join in is now”. Gary Coleman, Global Industry and Senior Client Advisor, Deloitte Consulting

Benefits

Increase productivity

The increasing productivity is the core of every industrial revolution.

During the  1st industrial revolution, the industrial output climbed from 22% between 1830 and 1860 to 42% between 1860 and 1880, mainly due to cheap steel.

During the 2nd industrial revolution, between 1880 and 1900, due to mass production, the world industrial output climbed to 67%.

The trend becomes more evident during the 3rd industrial revolution, also called the computer revolution, with the rising of automation.

In the same way, the 4th industrial revolution, mainly thanks to digital technologies, is promising to improve productivity in German Industry from 15 to 35% in the next years.

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Max increase of Productivity expected in Germany due to Industry 4.0 (source: Ruessmann M. et al, BCG 2015)

Mass personalization

If we look at the evolution of production approach, it is possible to identify 4 different phases:

  • low volume customization: it involved the first rudimentary processes to make products from other materials such as wood, clay and metals;
  • low volume standardization: the main reason was the need of interchangeable parts due to the first industrial revolution;
  • high volume standardization: Henry Ford was the catalyst. With electricity and conveyors, mass production became reality; 
  • mass customization: the Toyota Production System made mass customization possible.

Industry 4.0 is promising to level up mass customization to mass personalization. Additive Manufacturing, for example, is the most promising technology in this direction.

Better quality, lower cost

Quality and Cost are key metrics to increase competitiveness in the market.

In simple words, Quality is achieved by reducing the process variability, which means improving process capabilities. Different tools and techniques have been developed in the past years. Industry 4.0 will integrate these techniques, therefore generating perfect synergies.

What about cost? Manufacturing Industries found benefits from Globalization cutting down labor costs moving facilities in low-wage countries. However, there is a more convenient way. The cost of new technologies is reducing year by year, making the use of autonomous robots or 3D printing more competitive than offshoring.

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Max Production Cost reduction expected in Germany due to Industry 4.0 (Schroeder C, THE FRIEDRICH-EBERT-STIFTUNG, 2016)

ATC provides training and consulting to support the transition to the Smart Factory:

 

“an optimized manufacturing facility which can facilitate launching new products depending on market dynamics, is scalable enough to meet demand variation for existing products, is able to produce Finished Goods at least cost, has smart machines, sensors and robots which are seamlessly integrated with information system architecture to enable high level of automation in transaction processing and has real time analytics that helps in minimizing downtime and improving efficiency”. Padhi N, Setting up a Smart Factory (Industry 4.0) – A Practical Approach, Nov, 2018

The key technologies

Robots will eventually interact with one other and work safely side by side with humans and learn from them. These robots will cost less and have a greater range of capabilities than those used in manufacturing today.

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Industrial robot cost decline (1995-2015) (source: Dyer J, 2018)

Augmented Reality-based systems support a variety of services, such as selecting parts in a warehouse and sending repair instructions over mobile devices. These systems are currently in their infancy, but in the future companies will make much broader use of augmented reality to provide workers with real-time information  to improve decision making and work procedures.

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AR glasses shipped by 2022*

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AR Users by 2020*

*Sources: NewGenApps,  Augmented IDC Research, Goldman Sachs

Companies have just begun to adopt additive manufacturing, which they use mostly to prototype and produce individual components. With Industry 4.0 additive methods will be widely used to produce small batches of customized products that offer constructions advantages, such as complex and lightweight design.

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Time saving in Fixturing (source: Stratasys)

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Cost saving in Fixturing (source: Stratasys)

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3D Printing Market by 2021 (source: Barnatt, 2014)

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Market value 2013 - 2021 (source: Barnatt, 2014)

Simulation will be used more extensively in plant operations to leverage real-time data and mirror the physical world in a virtual model, which can include machines,  products and humans. This will allow operators to test and optimize the machine settings for the next product in line in the virtual world before the physical changeover, thereby driving down machine setup time and increasing quality

With simulation models, we can explicitly visualize how an existing operation might perform under varied inputs and how a new or proposed operation might behave under same or different inputs, analyze the material flow and optimize plant lay-out. Today simulation can be used for decision support with supply chain management, workflow and throughput analysis, facility layout design, resource usage and allocation, resource management and process change” (Kokareva V.V. et al, 2015)

Internet of Things (IoT) is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators and connectivity which enables these things to connect, collect and exchange data.

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Impact of IoT opportunity by 2025 (The Economist, 2016)

With Industry 4.0, companies, departments, functions and capabilities will become much more cohesive, as cross-company, universal data-integration networks evolve and enable truly automated value chains.

More production-related undertakings will require increased data sharing across sites and company boundaries. As a result, machine data and functionality will increasingly be deployed to the cloud, enabling more data-driven services for production systems.

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cost over 3 years switching from Microsoft Office to Google App by Telegraph Media Group (source: Barnatt, 2010)

A big amount of data can be collected with digitalization of products and services. This amount of data can be analyzed to predict the market trends, to improve a manufacturing process, to assess supply chain performance. Artificial Intelligence: it is the science of making machines do things that would require intelligence of people to do that. One of the most important objectives of AI systems is to reproduce human decision making but more quickly.

Between the dawn of civilization and 2003, we only created five exabytes; now we’re creating that amount every two days. By 2020, that figure is predicted to sit at 53 zetabytes (53 trillion gigabytes) — an increase of 50 times.” — Hal Varian, Chief Economist at Google.

With the increased connectivity and use of standard communications protocols that come to Industry 4.0, the need to protect critical industrial systems and manufacturing lines from cyber-security threats increases dramatically. As a result, secure, reliable communications as well as sophisticated identity and access management of  machines and users are essential.

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estimated revenues of cyber attack in 2016 (source: World Economic Forum)

Services

ATC offers  an Industry 4.0 Training Program, which is based on years of experience in the implementation of Industry 4.0 solutions. 

Different options are available:

Virtual class

Face to face

For further details, please click here

Industry 4.0 is a new trend which will revolutionize the industrial production for the upcoming years. It is important that companies will stay up to date to increase their competitiveness.

How ATC can help you? Please read here.

The Training Program has been developed to cover following key topics: 

To understand the reasons that lead to the 4th industrial revolution, it is fundamental to understand previous revolutions. The 1st industrial revolution (1760 – 1850) began in Great Britain, and many of the technological innovations were of British origin. The Second Industrial Revolution (1870 – 1914) was a period of rapid industrial development, primarily in Britain, Germany and the United States, but also in France, Italy and Japan. The 3rd industrial revolution began in the 1960s. It is usually called the computer or digital revolution because it was catalyzed by the development of semiconductors, mainframe computing (1960s), personal computing (1970s and ’80s) and the internet (1990s).

What about the 4th industrial revolution?

In this module, a summary of every industrial revolution will be provided, taking into account 4 different aspects:

  • The historical context;
  • Science & Technology;
  • Production Approach;
  • Socio-economic impact.

 


 

  • Lesson 1: The 1st Industrial Revolution (1760 – 1850)
  • Lesson 2: The 2nd Industrial Revolution (1870 – 1914)
  • Lesson 3: The 3rd Industrial Revolution (1950 – 1980)
  • Lesson 4: The 4th Industrial Revolution (2011 – today)

Unlike previous Industrial Revolutions, the 4th Industrial Revolution is not characterized by one or two inventions or technologies, but rather by a set of already known digital technologies that are rising in every area of our society.

This module aims to describe in detail some of the key technologies of Industry 4.0. Since the broad and extensive nature of the topic, it has been chosen to split the description of these technologies in 3 parts.

More specifically, part 1 focuses on the following technologies:

  • Advanced Manufacturing, which includes Autonomous Robots (AGVs and cobots), Human Machine Interface (HMI) and Artificial Intelligence
  • Augmented Reality
  • Virtual Reality

The practitioner will learn in detail the essence of each technology and how to apply them in a real Industrial environment. Indeed, for each technology, several examples are reported.

 


 

  • Lesson 1: Advanced manufacturing: Artificial Intelligence & Machine Learning
  • Lesson 2: Advanced Manufacturing: Human Machine Interface
  • Lesson 3: Advanced Manufacturing: Robots
  • Lesson 4: Augmented Reality
  • Lesson 5: Virtual Reality

This module aims to describe in detail 3 of the key technologies of Industry 4.0. Since the broad and extensive nature of the topic, it has been chosen to split the description of these technologies in 3 parts.

More specifically, part 2 focuses on the following technologies:

  • Additive Manufacturing: after a quick overview of its history, all the additive technologies will be presented;
  • Simulation: the discussion will focus mainly on process applications, like Discrete Event Simulation;
  • Horizontal & Vertical IT systems integration: the section will focus on the benefits as well as the IT system portfolio commonly adopted by mid/large organizations.

The practitioner will learn in detail the essence of each technology and how to apply them in a real Industrial environment. Indeed, for each technology, several examples are reported.

 


 

  • Lesson 1: Additive Manufacturing: overview and history
  • Lesson 2: Additive Manufacturing: materials and processes
  • Lesson 3: Design for Additive Manufacturing
  • Lesson 4: Benefits and Challenges of Additive Manufacturing
  • Lesson 5: Additive Manufacturing Applications
  • Lesson 6: Simulation: from real world to Digital Twin
  • Lesson 7:  Discrete Event & Process Simulation
  • Lesson 8: Horizontal & Vertical Systems Integration

Part 3 focuses on the following technologies:

  • Internet of Things, described as the the network of devices that contain electronics, software, actuators, and connectivity which allows these things to connect, interact and exchange data;
  • Cloud Computing is where software applications, data storage, processing power and even artificial intelligence are accessed over the Internet from any kind of computing device;
  • Cyber-security, the protection of digital devices and their communication channels to keep them stable, dependable and reasonably safe from danger or threat;
  • Big Data Analytics, which refers to method of predictive analyses that are used to extract value from a massive amount of data.

The practitioner will learn in detail the essence of each technologies and how to apply them in a real Industrial environment. Indeed, for each technology, several examples are reported.

 


 

  • Lesson 1: Internet of Things (IoT)
  • Lesson 2: Cloud computing
  • Lesson 3: Cyber-security
  • Lesson 4: Big Data Analytics

The Smart Factory is an optimized and high-flexible manufacturing facility. The goal is to facilitate launching new products depending on market dynamics, is scalable enough to meet demand variation for existing products, is able to produce Finished Goods at least cost, has smart machines, sensors and robots which are seamlessly integrated with information system architecture to enable high level of automation in transaction processing and has real time analytics that helps in minimizing downtime and improving efficiency.

Despite the wide range of technologies exploited in a Smart Factory, its backbone is made of human skills.

It is not wrong to say that a Smart Factory is made by and for workers.

This module aims to present the practitioner the benefits and risks associated to the Smart Factory.

 


 

  • Lesson 1: What is a Smart Factory?
  • Lesson 2: Benefits of a Smart Factory
  • Lesson 3: Technologies within a Smart Factory
  • Lesson 4: Risks associated with a Smart Factory
  • Lesson 5: The Human Factory
  • Lesson 6: The Learning Factory
  • Lesson 7: Case Studies

This module aims to present the practitioner a practical approach to implement a Smart Factory. The module is divided into 3 main parts:

  • The first part focuses on the implementation of the physical world, including infrastructures, reconfigurable production systems and factory layout;
  • The second part focuses on the implementation of the virtual world, including IT infrastructures and main tools like multi-physics simulation;
  • The third part focuses on the implementation of a Digital Twin, which is a digital copy of the real factory based on cyber-physical system.

 


 

  • Lesson 1: from Real World to Digital Twin
  • Lesson 2: Real World
  • Lesson 3: Virtual World
  • Lesson 4: Digital Twin

 

The disruptive wave of the 4th Industrial Revolution will impact in our lives in proportions that are almost impossible to envisage. Nevertheless, it is important to recognize the potential impact that this Revolution will bring in order to face up to future global changes and challenges.

We are living in a fast-paced environment, where digital technologies are changing our approach not only to work, but also to life. Therefore, understanding implications and methods to face up new challenges is not an option anymore.

This module aims to provide the practitioner a broad understanding of impacts of the 4th industrial revolution on our lives. Indeed, Industry 4.0 will impact in every aspect of our everyday life:

  • Economic growth and productivity: will the impact be positive or negative?
  • Business: how our ways of making business?
  • Industry: how new technologies will modify factories?
  • Infrastructure: how our cities will be impacted?
  • Global security: will we be less or more safe?
  • Society: is it going to progress or not?

 


 

  • Lesson 1: Economic Growth & Productivity
  • Lesson 2: Business
  • Lesson 3: Industry
  • Lesson 4: Infrastructure
  • Lesson 5: Global Security
  • Lesson 6: Society

In previous modules, we presented the main reasons and key technologies that lead to a so called 4th industrial revolution. We also discussed and how we will benefit from their utilization. Moreover, the practitioner had also the opportunity to learn what a Smart Factory is and what main impacts on people are.

In this module, the practitioner learns what the main requirements are and what skills an organization needs to be developed to face up the transformation with the right tools.

Companies need to establish 6 digital pillars to support and benefit from the opportunities that come with Industry 4.0 technologies. In this course, the 6 pillars will be described in detail:

  • Develop a high-performance culture;
  • Build relevant Digital Capabilities;
  • Facilitate collaboration;
  • Manage data as valuable asset;
  • Enable agile IT infrastructure and architecture;
  • Ensure cyber-security.

 


 

  • Lesson 1: Develop a high performance culture
  • Lesson 2: Build Relevant Digital Capabilities
  • Lesson 3: Facilitate collaboration
  • Lesson 4: Manage data as strategic asset
  • Lesson 5: Enable rapid and agile IT development and data architecture
  • Lesson 6: Ensure cyber-security
  • Lesson 7: Skills in demand

ATC offers  support following this approach:

The first step is to provide a preliminary overview on what Industry 4.0 means. It includes an explanation of the 9 key technologies, main benefits, impacts and main challenges to face with.      

It implies to visit your shop floor. Depending on the size, the walk through can take from half a day up to 3 days.   

During the walk through, Industry 4.0 opportunities will be identified. By experience, any workshop hides several opportunities where Industry 4.0 technologies can be used without massive investment.       

A final report will be prepared. It includes new potential technologies to implement, cost estimations, benefits and further recommendations.     

Events

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