Industry 4.0

What is Industry 4.0?

The world of manufacturing is changing. In order for our businesses to survive and prosper, we must be ready to invest in Industry 4.0 (Digitalization).

Industry 4.0 (Digitalization) logically follows on from the previous three industrial revolutions and signifies the rapid digital transformation of processes within the processing andproduction (and other related) industries.

The transformation is based on the intelligent networking of machines (and other devices) using advanced information and communication technologies, with the aim of enabling
autonomous communication between devices, analysing and collecting large amounts of data, autonomous decision-making, real-time monitoring of assets and processes, and the creation of added values.

The basis is the integration of information technologies with operational activities, which
leads to a stronger production organization.

The transformation of business models as part of Industry 4.0 (Digitalization) results in improvements that lead to increased profits, reduced costs, improved customer experiences,
innovation, etc.

Digitization isn’t just about investing in new technology and tools to improve production efficiency – it’s about revolutionizing the way your entire business operates and grows.

Industry evolution from 1.0 to 4.0

Before we delve into the reasons; the what, why, and how of Industry 4.0, it’s helpful to first understand exactly how manufacturing has evolved since the 1800s. There are four different industrial revolutions that the world has experienced or is still experiencing today.

First industrial revolution

The first industrial revolution occurred between the late 1700s and early 1800s. During this period, manufacturing evolved from a focus on manual labour performed by humans with the help of working animals to an optimized form of labour performed by humans using water and steam powered engines and other types of machine tools.

Second industrial revolution

At the beginning of the 20th century, the world entered the second industrial revolution with the introduction of steel and the use of electricity in factories. The introduction of electricity allowed manufacturers to increase efficiency and helped make factory machinery more mobile. During this phase, mass production concepts like the conveyor belt were introduced as a way to increase productivity.

Third industrial revolution

Beginning in the late 1950s, the third industrial revolution slowly began to emerge, as manufacturers began to incorporate more electronic and eventually computer technology into their factories. During this period, manufacturers began to experience a shift that placed less emphasis on analogue and mechanical technology and more on digital technology and
automation software.

Fourth industrial revolution – Digitization

In the last few decades, the fourth industrial revolution, known as Industry 4.0 or Digitization, has appeared. Digitization is taking the emphasis on digital technology from the last decades to a whole new level with the help of Internet of Things (IoT) interconnection, real-time data access and the introduction of cyber-physical systems. Digitization offers a more comprehensive, interconnected approach to production. It connects the physical with the digital and enables better collaboration and access between departments, partners, suppliers, products and people. Digitization allows business owners to better control and understand every aspect of their business and creates the prerequisites for them to use
current data to increase productivity, improve processes and drive growth.

The biggest task of Industry 4.0 and Digitization is to eliminate human error wherever possible. The point is that communication and data transfer is done directly between computers, and not to be overwritten and thus the possibility of error appears.
With our system, the production process – measurement begins in the computer and with digital technology, CAD/CAM software, and CNC machines, it remains inside the computer until the assembly of the finished product. In this way, the possibility of error is reduced to a
minimum.

IIoT Basic Concepts and Glossary

• Enterprise Resource Planning (ERP): Business process management tools that can be used to manage information throughout an organization.
• IoT: IoT stands for Internet of Things, a concept that refers to connections between physical objects such as sensors or machines and the Internet.
• IIoT: IIoT stands for Industrial Internet of Things, a concept that refers to the connections between people, data and machines related to manufacturing.
• Big data: In translation, “big data” refers to large sets of structured or unstructured data that can be compiled, stored, organized and analysed to reveal patterns, trends, connections and opportunities.
• Artificial Intelligence (AI): Artificial intelligence is a concept that refers to the ability of computers to perform tasks and make decisions that would historically require some level of human intelligence.
• M2M: This stands for machine-to-machine, and refers to communication that takes place between two separate computers via wireless or wired networks.
• Digitization: Digitization refers to the process of collecting and converting various types of information into a digital format.
• Smart factory: A smart factory is one that invests in and uses technology, solutions and Digitalization approaches.
• Machine Learning: Machine learning refers to the ability of computers to learn and improve themselves through artificial intelligence, without being explicitly told or programmed to do so.
• Cloud Computing: Cloud computing refers to the practice of using interconnected remote servers located on the Internet to store, manage, and process information.
• Real-time data processing: Real-time data processing refers to the capabilities of computer systems and machines to continuously and automatically process data and provide results and insights in real or near real time.
• Ecosystem: An ecosystem, in terms of manufacturing, refers to the potential connection of your entire operation – inventory and planning, finance, customer relations, supply chain management and manufacturing execution.
• Cyber-Physical Systems (CPS): Cyber-Physical Systems, also sometimes known as cyber manufacturing, refers to a Digitization-enabled manufacturing environment that offers real-time data collection, analysis and transparency into all aspects of a manufacturing operation.

Now that we have a better understanding of the fundamental concepts associated with digitization, we are ready to explore more deeply how smart manufacturing can revolutionize
the way we run and grow our business.