Industry 4.0, or the fourth industrial revolution, began in Germany in 2006 as part of a high-tech strategy aimed at revolutionizing manufacturing through automation and data exchange. It emphasizes customization, flexibility, and collaboration among technologies, enabling factories to produce personalized goods at mass production costs while enhancing sustainability. However, challenges such as cybersecurity, workforce adaptability, and the need for new skill sets must be addressed for successful implementation.

1. HOW DID INDUSTRIE 4.0
BEGIN
JAYESH C S PAI

3. IMPLEMENTATION OF GERMANY'S HIGH-
TECH STRATEGY IN 2006
• INDUSTRY-SCIENCE RESEARCH ALLIANCE
• ACATECH
• DFKI
• FRAUNHOFER-GESELLSCHAFT
• IT’S OWL
• PLATFORM INDUSTRIE 4.0
• SMARTFACTORYKL

4. WHAT’S THE BUZZ BEHIND INDUSTRY 4.0
• IS INDUSTRY 4.0 JUST ANOTHER BUZZ TERM THAT’S BEING HYPED
UP BY TECHNOLOGY VENDORS WITH THE AIM OF SELLING MORE
PRODUCTS, OR A LEGITIMATE TREND THAT WILL TRANSFORM
SECTORS SUCH AS MANUFACTURING IN THE MONTHS AND YEARS
TO COME?
• THE EVIDENCE POINTS TO THE LATTER.
• INDUSTRY 4.0, ALSO REFERRED TO AS THE FOURTH INDUSTRIAL
REVOLUTION, INCLUDES THE HEAVY USE OF AUTOMATION
TECHNOLOGIES AND A GREATER EXCHANGE OF DATA IN
MANUFACTURING ENVIRONMENTS SUCH AS FACTORIES.

8. Henning Kagermann SAP Robert Bosch GmbH
The characteristics given for the
German government's Industry
4.0 strategy are:
The strong customization of
products under the conditions
of highly flexible (mass)
production.
The required automation
technology is improved by the
introduction of methods of self-
optimization, self-configuration
, self-diagnosis, cognition and
intelligent support of workers in
their increasingly complex work.

9. INDUSTRY 4.0 WORKGROUPS
Co-chair
Henning Kagermann
Co-chair
Siegfried Dais
WG 1 – The Smart Factory:
Manfred Wittenstein
WG 2 – The Real Environment:
Siegfried Russwurm
WG 3 – The Economic Environment:
Stephan Fischer
WG 4 – Human Beings and Work:
Wolfgang Wahlster
WG 5 – The Technology Factor:
Heinz Derenbach
The Industry 4.0 workgroup members are recognized as the founding fathers and driving force behind Industry 4.0.
WITTENSTEIN AG Siemens AG SAP AG
DFKI (German Research Center for Artificial Intelligence)Bosch Software Innovations GmbH

10. Cloud-based Rapid
Elastic
Manufacturing based on
the XaaS and Cloud
model
Resource Conservative Manufacturing
Cluster of Excellence -
Integrative Production
Technology for High-Wage
Countries
Research Union - Business and Science
Accompany the High - Tech strategy

11. Interoperability
Information
transparency
Technical assistance
Decentralized
decisions
Industry 4.0
Design Principles
Internet of Things (IoT)
Internet of People (IoP)
Digital plant models
virtual copy of the physical world
The ability of cyber physical systems
to physically support humans by
conducting a range of tasks.
The ability of cyber physical systems
to make decisions on their own and to
perform their tasks as autonomous as
possible.

13. TODAY’S FACTORY VS. INDUSTRY 4.0

14. COLLABORATIVE TECHNOLOGIES
• WHEREAS TODAY’S MANUFACTURING ENVIRONMENT TYPICALLY CONSISTS OF
PRODUCTION PLANTS WITH AN INCOMPATIBLE MIX OF AUTOMATION
TECHNOLOGIES THAT ARE NOT DESIGNED TO SHARE DATA WITH OTHER
MANUFACTURING SYSTEMS, SMART FACTORIES WILL LEVERAGE IOT CLOUD
PLATFORMS TO GAIN A LAYER OF CYBERNETIC INTELLIGENCE THAT SITS ON
TOP OF A COMPANY’S MANUFACTURING OPERATIONS.
• FACTORIES OF THE FUTURE WILL BE DYNAMIC ORGANISMS THAT CAN BE
SHAPED AND RESHAPED AS NEED BE, AND THEY WILL BE CONNECTED MORE
SO THAN EVER WITH OTHER ENTITIES SUCH AS CUSTOMER SERVICE
CENTERS, COMPANIES THAT SUPPLY RAW MATERIALS, DISTRIBUTION
CHANNELS, ETC.
• THE TECHNOLOGIES DRIVING INDUSTRY 4.0 WILL WORK IN COLLABORATION.
CPS IS POWERED BY CLOUD SERVICES, WHICH ENABLE INTELLIGENT

15. BUILDING THE ECOSYSTEM
• ONE OF THE KEY DRIVERS OF THE SMART FACTORY THAT WILL BE ENABLED
BY IIOT AND INDUSTRY 4.0 TECHNOLOGIES IS THE PUSH TOWARD
PERSONALIZATION IN MANUFACTURING. INSTEAD OF A FACTORY CHURNING
OUT COOKIE-CUTTER VERSIONS OF THE SAME PRODUCTS AT MASS SCALE, IT
WILL BE ABLE TO DELIVER HIGHLY CUSTOMIZED PRODUCTS ON A JUST-IN-TIME
BASIS THE WAY A CUSTOMER WANTS IT.
• THE POTENTIAL OF THIS FUTURE FACTORY IS NOT DERIVED FROM WHAT’S
INSIDE THE ENTERPRISE, BUT OUTSIDE.
• THE PLATFORMS THAT SUPPORT INDUSTRY 4.0 APPLICATIONS NEED TO BE
OPEN SYSTEMS THAT CAN EVOLVE WITH CHANGING DEMANDS.
• MACHINE LEARNING ALGORITHMS WILL BE ABLE TO IDENTIFY PATTERNS AND
EXTRACT INSIGHTS THAT CAN BE USED TO OPTIMIZE PRODUCTION
OPERATIONS. PREDICTIVE ANALYTICS WILL IDENTIFY SIGNS OF SYSTEM
FAILURES IN ONE FACTORY SO THAT PRODUCTION CAN QUICKLY BE

19. ECONOMIC IMPACT
• INDUSTRY 4.0 CREATES HIGHLY FLEXIBLE PRODUCTION
NETWORKS THAT ALLOW FOR REAL-TIME OPTIMIZATION OF THE
PRODUCTION PROCESS.
• THIS NOT ONLY INCREASES PRODUCTIVITY, BUT IT OFFERS THE
POSSIBILITY TO PRODUCE INDIVIDUAL GOODS FOR THE COSTS
OF A MASS PRODUCT.
• IN ADDITION, THE ENERGY AND RESOURCE CONSUMPTION OF
FACTORIES CAN BE REDUCED, WHICH SUPPORTS SUSTAINABLE
GROWTH.

20. SOCIAL IMPACT
• SMART FACTORIES WON'T BE EMPTY.
• WORK CONTENT, WORK PROCESSES AND THE WORKING
ENVIRONMENT WILL CHANGE SIGNIFICANTLY AS A RESULT OF
VIRTUAL WORK PLATFORMS AND INCREASING HUMAN-MACHINE
INTERACTION.
• HOWEVER, THE WORKERS WON'T BE REPLACED BY MACHINES,
BUT THEY WILL HAVE DIFFERENT TASKS.
• THEY WILL BE RELIEVED FROM PERFORMING STANDARDIZED
AND MONOTONOUS TASKS AND INSTEAD GAIN MORE
RESPONSIBILITY AND DECISION-MAKING POWERS.

21. CHALLENGES IN IMPLEMENTATION OF
INDUSTRY 4.0
• IT SECURITY ISSUES, WHICH ARE GREATLY AGGRAVATED BY THE INHERENT
NEED TO OPEN UP THOSE PREVIOUSLY CLOSED PRODUCTION SHOPS
• RELIABILITY AND STABILITY NEEDED FOR CRITICAL MACHINE-TO-MACHINE
COMMUNICATION (M2M), INCLUDING VERY SHORT AND STABLE LATENCY
TIMES
• NEED TO MAINTAIN THE INTEGRITY OF PRODUCTION PROCESSES
• NEED TO AVOID ANY IT SNAGS, AS THOSE WOULD CAUSE EXPENSIVE
PRODUCTION OUTAGES
• NEED TO PROTECT INDUSTRIAL KNOW HOW (CONTAINED ALSO IN THE
CONTROL FILES FOR THE INDUSTRIAL AUTOMATION GEAR)

22. • LACK OF ADEQUATE SKILL-SETS TO EXPEDITE THE MARCH
TOWARDS FOURTH INDUSTRIAL REVOLUTION
• THREAT OF REDUNDANCY OF THE CORPORATE IT DEPARTMENT
• GENERAL RELUCTANCE TO CHANGE BY STAKEHOLDERS
• LOSS OF MANY JOBS TO AUTOMATIC PROCESSES AND IT-
CONTROLLED PROCESSES, ESPECIALLY FOR LOWER EDUCATED
PARTS OF SOCIETY
CHALLENGES IN IMPLEMENTATION OF
INDUSTRY 4.0

24. l'usine du futur
– France

29. MANUFACTURING 4.0
• 1970’S MANUFACTURING 1.0: LEAN MANUFACTURING
• WATER- AND STEAM-POWERED MECHANICAL MANUFACTURING
• 1990’S MANUFACTURING 2.0: OUTSOURCING
• ELECTRIC-POWERED MASS PRODUCTION BASED ON THE DIVISION OF LABOUR
(ASSEMBLY LINE)
• 2000’S MANUFACTURING 3.0: AUTOMATION
• ELECTRONICS AND INFORMATION TECHNOLOGY DRIVES NEW LEVELS OF AUTOMATION
OF COMPLEX TASKS
• TODAY MANUFACTURING 4.0: DIGITISATION
• SENSOR TECHNOLOGY, INTERCONNECTIVITY AND DATA ANALYSIS ALLOW MASS
CUSTOMISATION, INTEGRATION OF VALUE CHAINS AND GREATER EFFICIENCY

36. HUMAN RESOURCES 4.0
SOON EVERYONE CAN HELP WITH FINDING
• THROUGH THE USE OF DIGITAL TECHNOLOGIES, MANY DECISIONS
THAT AFFECT EMPLOYEES ARE BEING SHIFTED FROM THE
CENTRAL HR DEPARTMENT TO INDIVIDUAL DEPARTMENTS, TEAMS
OR THE EMPLOYEES THEMSELVES.
• FOR EXAMPLE, IF INFORMATION ABOUT AN EMPLOYEE’S
STRENGTHS AND WEAKNESSES AS WELL AS EXPERIENCE AND
POTENTIAL ARE STORED IN A DATABASE AND CAN BE EVALUATED IN
A MEANINGFUL WAY WITH ANALYTICS, THEN THAT PERSON CAN
PLAN HER CAREER DIRECTLY WITH HER SUPERVISOR WITHOUT
DETOURING THROUGH THE HR DEPARTMENT.

37. TRAINING BECOMES CUSTOMIZED
• MODERN TECHNOLOGIES ENABLE EMPLOYEES TO STUDY WITH
MOBILE DEVICES WHENEVER AND WHEREVER THEY WANT. THE
RESULT – LEARNING NEW KNOWLEDGE AND SKILLS – ULTIMATELY
COUNTS FOR MORE THAN THEIR PRESENCE IN A SEMINAR ROOM AT
A GIVEN TIME.
• WHAT REMAINS IN HR MAY BECOME MORE PROJECT-ORIENTED AND
AIMED AT IMPROVING ORGANIZATIONAL EFFECTIVENESS – SUCH AS
HELPING TO INTEGRATE A NEW ACQUISITION.
• HR ANALYTICS GROUPS HAVE BEEN ESTABLISHED TO ANALYSE
DATA AND DETERMINE DRIVERS OF WORKFORCE PERFORMANCE.