Industry 4.0 Definition: Everything You Need to Know

1. Industry 4.0 Definition: Everything You Need to Know ------------------------------------------------------ If you work in the manufacturing industry, you’ve probably heard the term: “Industry 4.0.” But what exactly does it mean? And how does it affect you? Keep reading to learn the definition of industry 4.0, explore examples of industry 4.0 technologies, take a closer look at the impact industry 4.0 is having on the manufacturing industry, and discover the broader impact of the fourth industrial revolution. Industry 4.0 Definition Industry 4.0 is another name for the Fourth Industrial Revolution, also commonly referred to as 4IR. Industry 4.0 refers to the way technological breakthroughs such as automation are transforming manufacturing, with far-reaching consequences affecting the way we work, live, and relate to one another. 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 other breakthrough periods in which advances in technology fundamentally changed our industrial capabilities, and with them, our way of life. The use of coal and steam power to mechanize production for the first time marked the advent of the First Industrial Revolution. The Second Industrial Revolution brought about mass manufacturing by using electricity to extend humans’ production capabilities. The technology, electronics, and telecommunications technology to automate production still further. Third harnessed information

2. Industry 4.0 is different from these previous industrial revolutions because of the speed at which these developments are taking place, as well as their tremendous scale, scope, and complexity. Industry 4.0 is remodeling all facets of human life. Examples of Industry 4.0 Technologies Industry 4.0 technologies are transforming management, and governance, creating ripple effects that are being felt across all avenues of life. Cloud infrastructure and unprecedented processing power, combined with smart sensors, emergent telecommunications technologies, and rapidly advancing artificial intelligence capabilities, are giving rise to an internet of things (IoT) in which intelligent machines talk to one another and harness massive datasets to learn. Technologies like computer-aided design (CAD), additive manufacturing (3D printing), robotics, and advances in materials science are revolutionizing production, while robotic process automation (RPA) is making business workflows more efficient by automating manual tasks. All of these technological advances, each ground-breaking in its own right, are converging to give rise to hyper-connected ecosystems in which we can achieve more, more effectively, in less time than ever before. So what are the technologies of the 4IR? Let’s take a closer look. Big Data, Artificial Intelligence, and Machine Learning An ever-growing number of connected machines and devices generates vast quantities of data. Big data – datasets too large and complex to be managed by traditional data-processing methods – has necessitated new ways of extracting information, giving rise to advanced data analytics and artificial intelligence (AI). AI algorithms enable machines to solve problems and learn by searching massive datasets for patterns and play a vital role in advanced automation. manufacturing, systems

3. The Internet of Things (IoT) The internet of things refers to networked devices that take automation to new heights by “speaking” to each communication facilitates connected supply chains that enable greater visibility, integrity, and flexibility. For instance, if a shipment of materials is delayed, an interconnected system can alert other parts of the IoT to adjust inventory tracking databases, production schedules, or manufacturing priorities. The IoT can also enhance machine learning capabilities by pooling numerous devices, as is the case in training autonomous vehicles. Augmented and Virtual Reality Augmented reality (AR) and virtual reality (VR) are means of presenting information that bridges the digital and physical worlds to create an interactive experience. AR overlays digital content over a camera feed of the real world in real-time, literally augmenting the user’s experience of the real world (think Pokémon Go). VR fully replaces the user’s physical reality with an immersive three-dimensional simulated reality, typically accessed via a specialized headset. AR and VR use cases range from immersive gameplay and training to creating interactive sales experiences that allow customers to get a feel for products, easing purchase anxiety. Additive Manufacturing (3D Printing) Additive manufacturing is an industrial production technique used to create three-dimensional objects by depositing layer upon layer of material, typically using 3D printing technology. Additive manufacturing is facilitated by computer-aided design, frequently used in combination with 3D object scanning. Additive manufacturing reduces material wastage and can be used to create lightweight, complex geometric structures. It also enables the production of solid products that don’t require assembly, which can increase structural integrity. Applications include rapid prototyping, part creation, and mold production, among others. machine-to-machine other. This the “knowledge” gained by

4. Advanced Robots/Cobots & Robotic Process Automation Along with advances in AI, improvements in fields like machine vision and natural language processing are leading to increasingly advanced robotic capabilities. This is giving rise to cobots – robots designed to work in collaboration with humans. Another technology associated with robotics is robotic process automation (RPA), repetitive business processes, improve operational efficiency, and free up humans to focus on more important tasks. Cloud Computing Cloud computing refers to the use of computing services such as data storage, servers, networking, software, analytics without the user needing to manage the systems involved directly. Instead, these resources are accessed on-demand through the cloud and provided by data centers and SaaS companies to launch and scale products more rapidly and with greater flexibility, reducing costs, risk, and maintenance. Industry 4.0 Manufacturing: A Transforming Industry The Fourth Industrial Revolution has upended the manufacturing industry. It’s changed everything, from the way we design products, to the methods we use to manufacture them, to how we market, sell, and distribute them. And that’s not to mention the ways digital transformation has altered the myriad internal processes involved in running any business. Here are some of the ways Industry 4.0 is transforming manufacturing: Streamlined Design & Engineering Technologies like CAD and additive manufacturing have streamlined the design and engineering process. CAD not only saves draughting time but also increases accuracy and reduces errors, allows plans to be rendered and viewed in 3D, makes it easy to share and collaborate on schematics, and integrates with computer-aided manufacturing and enterprise resource which uses software to automate databases, cybersecurity, Cloud services and providers. allow

5. planning software. This makes it easier to do things like generating manufacturing specifications like BOMs, cut lists, and tool paths for CNC machining. Predictive Maintenance Connected machines can monitor operating flaws, triggering alerts and predictive maintenance, reducing equipment breakdowns and costly repairs. In an article about Industry 4.0, McKinsey gives an example of an African gold mine that identified an issue with oxygen levels during leaching using equipment with smart sensors. Resolving the problem led to a 3.7% yield increase, resulting in $20 million in annual savings. Supply Chain Optimization Industry 4.0 technologies enable greater visibility, insight, and control throughout the supply chain. This proactively identify bottlenecks and improve capabilities, bringing products to market more rapidly, affordably, and predictably. Smart sensors, the IoT, and emergent technologies like distributed ledger technologies (blockchain) help optimize asset tracking. Visual Product Configuration, Pricing, and Quoting For engineer-to-order products, visual product configuration, pricing, and quoting (CPQ) solutions can revolutionize the sales process. CPQ solutions enable users – sales reps and buyers alike – to configure complex products to their exact specifications using a user-friendly visual interface. By simply clicking, dragging, and dropping, users can add or remove sections, resize parts, change colors, adjustments, all in 3D. As the user makes changes, the price updates in real-time, and when they’re satisfied automatically generates a quote. Through automation, CPQ improves conversion rates, shortens sales cycles, and delivers an exceptional customer experience. Advanced CPQ solutions their own performance and detect allows supply chain managers to a multitude of other with the product, the software or make

6. like KBMax even allow buyers to interact with products in 3D before purchase through AR and VR simulations, touring structures, or even operating machinery. There’s No Avoiding the Fourth Industrial Revolution Companies worldwide are using Industry 4.0 technologies to become more efficient, more resource-productive, and more profitable. As these practices become mainstream, manufacturers that fail to reap the benefits of the Fourth Industrial Revolution will fall behind the pack. Customer expectations – B2C and B2B alike – are higher than ever before due to the ever-rising customer experience standards set by on-demand services. 4IR technologies enable better customer experiences. They allow you to offer shorter lead times, reduce costs, eliminate order errors, improve product quality, and keep the customer informed at every step of the sales journey. Industry 4.0 offers more than just the ability to digitize and streamline existing processes and systems. Instead, it represents opportunities to make more strategic decisions and create new value propositions that serve as a lasting competitive advantage. The Fourth Industrial Revolution, Industry 4.0, ​4IR – call it what you will, it’s here to stay. The question is, are you?