What is Industry 4.0 & How is it Changing Manufacturing?

Amira Yahyaoui (founder and chairperson of AI Bawsala) says that "the fourth revolution should be a revolution of value". With Industry 4.0, the future of manufacturing industry is only marching forward, focusing more on value-driven outcomes. This revolution is a paradigm shift that will reshape the way we live, work, and interact with technology. According to experts, the manufacturing sector will experience more substantial and accelerated growth in the next few years than it has in the previous 40 to 50 years. It directly states how the lines between the physical and digital worlds have started to fade, giving rise to new opportunities for automation, customisation, and real-time decision-making.

Speed and transformation are the new currencies for businesses, and the manufacturing industry is already tightening its grip on Industry 4.0 to encash these features. The business sector is at the vanguard of this transition, which goes beyond technology to transform businesses and industries to be smarter, more efficient, and more sustainable.

Unlike what many people believe, this transition of industry 4.0 is not only limited to manufacturing but also about unlocking the potential of the entire value chain, from design to production to distribution. Digitalisation and Industry 4.0 are two of the most talked-about yet least understood subjects in manufacturing right now. In this blog, we will explore the key concepts, Industry 4.0 technologies and how they are transforming the new era of the manufacturing industry.

Understanding the term "Industry 4.0"

Industry 4.0 is the convergence of digital technology with manufacturing processes. It represents a comprehensive transition from centralised to dispersed manufacturing, necessitating adaptations in processes, workforce skills, business structure, and technology.

The integration of advanced technologies into the manufacturing and production processes is transforming traditional manufacturing processes into smart factories that are able to optimise production, reduce downtime, and create customised products at scale with greater efficiency, productivity, and flexibility, as well as creating new business models and value propositions. 

Synergy of Industry 4.0 & Manufacturing 

The fourth industrial revolution is initiated by the emergence of Industry 4.0. It is a revolutionary concept that has transformed traditional processes into highly efficient, intelligent, and data-driven operations, which are changing the way businesses manufacture and distribute their products. Manufacturers are adopting new technologies into their operations, enabling the development of smart manufacturing industry 4.0.

The synergy of industry 4.0 and manufacturing has given rise to smart factories which offer AI-powered visual insights for higher productivity, better quality control, and real-time visibility of manufacturing assets. This aids in reducing equipment downtime and improving operational intelligence. 

Driving Forces Behind the Fourth Industrial Revolution

Despite the fact that some view Industry 4.0 as nothing more than a marketing gimmick, major transformations are already taking shape within the manufacturing sector. The following are some of the primary drivers that are pushing digital transformation in manufacturing:

1. Cost Reduction: Manufacturers are always looking for ways to reduce the costs of the value chain process, and digitalisation offers many opportunities for the same through increased automation, improved supply chain visibility, and streamlined operations.

2. Competitive Pressure: Competition in the manufacturing industry is intense, and digitalisation offers companies the ability to differentiate themselves by offering better products and services, faster delivery times, and more personalised experiences for customers.

3. Consumer Expectations: Today's consumers expect products to be available quickly, customisable to their needs, and of high quality. Digitalisation enables manufacturers to meet these expectations by offering more flexible and responsive production processes.

4. Regulatory Compliance: Manufacturers are subject to numerous regulations, and digitalisation can help ensure compliance by providing better data tracking and analysis capabilities.

5. Talent Shortages: There is a shortage of skilled workers in the manufacturing industry, and digitalisation can help address this by automating repetitive tasks and freeing up workers for more complex and creative work.

6. Technological Advancements: Rapid advancements in digital technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics, are making it easier and more cost-effective for manufacturers to adopt digitalisation.

Technology innovations navigating the new era of manufacturing and their transformative effects: 

To reach the optimum level of the Manufacturing 4.0 movement, many technologies are merging. Diving a little deeper to understand the full impact:

1. Artificial Intelligence

AI is a powerful technology that can replicate human-like thinking, enabling it to automate dangerous and high-cost tasks. In the manufacturing industry, AI and machine learning help optimise machinery and improve overall efficiency. Autonomous mobile robots (AMRs) equipped with AI-based algorithms and sensors can navigate dynamic environments and complete tasks safely and productively. By collecting data from assets, predictive maintenance can be performed, leading to higher efficiency and uptime. AI and machine learning provide insights for visibility, predictability, and automation of operations and business processes, making them essential for smart factories in Industry 4.0.

2. Industrial Internet of Things

The Industrial Internet of Things (IIoT) is all about leveraging smart technology to make industrial facilities more efficient. By connecting devices and autonomous systems, supply chains become leaner and the production process more efficient. IoT is a key component of smart factories, where machines are equipped with sensors that allow them to connect with other web-enabled devices. This connectivity generates valuable data that can be analysed and exchanged, optimising efficiencies across the manufacturing operation. With the IIoT, interconnectivity and collaboration of data, machines, and people in the world of manufacturing can lead to optimal efficiencies.

3. Big Data Analytics

Big data analytics is revolutionising supply chain management by providing valuable insights for optimising operational efficiency. With data captured through software, smart devices, and sensors, managers gain a holistic view of their operations, allowing them to identify inefficiencies and bottlenecks. By analysing the data, solutions can be identified and implemented to improve the entire manufacturing process. Machine learning and AI technologies are also being utilised to quickly process the vast amount of data generated and provide decision-makers with the information they need to make informed decisions. Big data analytics is changing the game, transforming supply chain management from guesswork to data-driven efficiency.

4. Cloud Computing

Industry 4.0 is all about the interconnectivity of different digital technologies. Cloud computing is a key component of this trend, as it enables manufacturers to store and process vast amounts of data efficiently and cost-effectively. More than half of manufacturing and supply chain leaders have already embraced cloud computing, with 57% confirming its use in their facilities. Cloud storage also allows for remote access and monitoring of data and machine operating systems, providing greater visibility into operations and efficiencies. Edge computing is also crucial for real-time production operations, reducing latency and security risks by processing data at its source.

5. Digital twin

Fourth industrial revolution has given rise to a new concept known as digital twins, which enables manufacturers to create virtual replicas of their production processes, factories, and supply chains. This is made possible through the digital transformation brought about by Industry 4.0, which allows for the collection of data from IoT sensors, devices, and PLCs connected to the internet. These digital twins can then be utilised by manufacturers to enhance productivity, optimise workflows, and develop new products. For instance, by simulating a production process, manufacturers can make changes and test the impact of those changes to minimise downtime and improve efficiency.

A Smart Manufacturing Unit: The Future of Factories  

A smart factory refers to a factory that integrates physical production processes and operations with digital technology. It offers promising effects on production and manufacturing.It is also referred to as the "factory of the future" since it exhibits qualities that have made it the primary option for many businesses to compete in today's cutthroat industrial conditions. Now you ask: what are the benefits of a smart factory? They are:

• Improved decision-making 

The manufacturing industry generates a large amount of data from embedded sensors and interconnected machinery. Data analytics is crucial for manufacturers to investigate historical trends, identify patterns, and make better decisions. Smart factories can use data from different parts of the organisation to gain deeper insights and create a complete digital representation of operations. Ultimately, data analysis allows companies to optimise their decision-making process and improve their overall production process.

• Integration of IT network 

Electronic devices and information technologies (IT) are utilised by both traditional and smart factories. However, smart factories take this a step further by integrating IoT devices with networks to enable communication and data exchanges. This integration provides deeper insights into the data. For instance, embedded sensors provide sensor data analytics, allowing for preventative maintenance. When a machine detects a failure, it sends a signal, which is followed by an automatic repair signal.

• Enhanced Production and customisation 

Smart factories have the ability to efficiently produce custom-made products that fulfil individual customer requirements. In fact, many manufacturers strive to achieve an economical "lot size of one" in various industry sectors. By using advanced simulation software, new materials, and technologies like 3-D printing, manufacturers can easily create small batches of specialised items for specific customers. While the first industrial revolution prioritised mass production, Industry 4.0 focuses on mass customization.

• Simplification of Supply chain 

A strong Industry 4.0 approach requires an efficient and clear supply chain that is integrated with production operations. This is crucial for industrial activities, as it alters the way manufacturers obtain raw materials and distribute their final products. By sharing some production information with suppliers, manufacturers can better manage the delivery schedule. In the event of any disruptions in the assembly line, delivery routes can be reorganised or postponed to reduce wasted time and expenses. To provide transparency in supply chains, blockchain technology is becoming increasingly important.

Manufacturing Landscape Transformed by Industry 4.0

Manufacturers can greatly benefit from adopting Industry 4.0 technologies due to their significant potential and advanced features. The use of these technologies reduces the need for a lot of human involvement in managing them and has impacted the sector in the following ways: 

1. Increased competitiveness: In the past, manufacturers had to outsource to low-wage regions to stay competitive, but technological advancements now allow wealthier countries to compete again. As a result, companies can choose the location based on technical capabilities and proximity to consumer demand instead of primarily focusing on wages. This creates more options for manufacturers and changes the factors considered in decision-making.

2. Increased productivity: With automation, analytics, and machine-learning algorithms, much of the manual work previously done by human operators has been eliminated. As a result, production has become faster and more efficient around the clock, with human operators mainly responsible for monitoring and maintaining the systems.

3. Increased revenue and profitability: In addition to creating a production process that is more efficient and of higher quality, Industry 4.0 also allows for predictive and preventive maintenance and upgrades, leading to reduced downtime and lower capital expenditures in the long run. 

4. Optimised manufacturing process: Increased connectivity, shared data, and improved analytics enable better collaboration throughout the entire supply chain. This could result in greater efficiency, optimisation, and innovation in the manufacturing industry in the future. Integrated systems and machine-to-machine communications will facilitate collaboration among producers, suppliers, and other stakeholders along the value chain.

5. Seamless recordkeeping and traceability: The extensive collection and analysis of data leads to improved recordkeeping and search capabilities, which have wide-ranging impacts, including better compliance with government regulations and increased customer satisfaction. Digital systems enable seamless record keeping, which accelerates traceability and minimises liabilities, warranty costs, and recalls.

Ride the Disruption Wave of Industry 4.0 with Global Lancers

With the advent of new digital technologies, the manufacturing industry is already on the cusp of an exciting and valuable transformation. The Industry 4.0 era presents a unique opportunity for businesses to embrace the future and prepare themselves for what's to come. For those seeking to embark on a digital transformation journey, Global Lancer offers tailor-made solutions that are specifically designed to help manufacturers stay ahead in this digitally-driven era.

As Industry 4.0 continues to unfold, it will bring multiple waves of disruption, and we are currently in the midst of the second wave. Companies that seize the opportunity now will be well-positioned to capitalise on the upcoming disruptions and emerge as leaders in the new era of manufacturing.