Industry 4.0 : Evolution of the Revolution
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A clear understanding of the evolution of the revolution that is Industry 4.0. How industrial revolution started with the 1st mechanical loom to the evolution to today's time of cyber physical systems . The evolution of the completely Digital Factory.
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Industry 4.0 : Evolution of the Revolution
- 1. Ushering the era of Industry 4.0
- 2. Agenda • What is Industry 4.0? • Evolution of the Revolution • Potential Economic Impact • Industrial Implications • Major Sources of Value • Pillars of Industry 4.0 • Enablers and Barriers • Future of Industry 4.0
- 3. What is Industry 4.0? By connecting machines, systems and workforces, we are creating intelligent networks along the entire value chain that can control each other autonomously. Machines Systems Workforce Boston Consulting Group
- 4. Evolution of the Revolution 1ST Mechanical Loom 1784 1ST Production Line 1870 1ST Programmable Logic Controller 1969 Digital Factory Today Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0
- 5. Potential Economic Impact 10-25 % potential improvement in labor efficiency & energy savings Potential $360 billion in equipment maintenance 65- 90 % adoption rate in Advanced economies Potential value of $3.7 Trillion by 2025 McKinsey Global Index , June 2015
- 6. Industrial Implications Manufacturers • Improved Performance • Expansion • Profitability Operations • Improved Efficiency • Better product design • Service approach for equipment sales Distributors • Supplier economics visibility • Better pricing • Efficient Supply chain management
- 7. Major Sources Of Value • Uninterrupted flow goods • Minimum defects. • At Harley-Davidson , ventilation fans automatically adjust to give an exact coat. Operations optimization • Monitor equipment in real time • Capacity utilization • Avoid breakdowns • Air China is using sensors in exhaust systems to reduce maintenance spending by 10 to 40 percent for air carriers Predictive maintenance • Automatic reordering routines to estimate replenishment . • Wurth USA has developed “iBins” that uses intelligent camera technology to monitor the fill level of a supply box to automatically reorder supplies. Inventory optimization Boston Consulting Group
- 8. Pillars of Industry 4.0 Industry 4.0 IoT Analytics Virtual Reality Cyber Physical System Big Data Cyber Security
- 9. Enablers & Barriers 1. No wholesale replacement required 2. Improved Telecom Infrastructure 3. Improved Analytics 4. Training in cyber physical systems 1. Upgradability of current machinery 2. Reliable Networks & Speed 3. Less Decision Making on Data 4. Skilled workforce required
- 10. Future of Industry 4.0 • Leverage Technologies • Adapt Infrastructure • Upgrade Workforce • Promote Advanced Education
- 11. Thank You
Editor's Notes
- Ushering the era of Industry 4.0 Increasingly the theme of discussion among the world thinkers and speakers , when they talk about Industrial revolution or Industries , in general is “Industry 4.0”. Coined by the German government , this term is increasingly being used by the European countries to bring back the manufacturng hubs to them , as In the past. So Industry 4.0 has implications for the whole world.let me walk you through the basic questions that we have – the what , how and why of Industry 4.0
- Agenda
- In the succession of the industrial revolution over the years, Industrie 4.0 is the latest edition… The fundamental meaning that Industrie 4.0 stands for, is that by connecting machines, systems and workforces, we create an intelligent network, along the entire value chain , so that these may control each other autonomously. The term Industrie 4.0 was first used in 2011 at the Hanover Fair.
- How did this evolve? So the 1st industrial revolution was in 1784 when the 1st mechanical loom was invented, followed by Industry 2.0 which saw the invention of the production assembly line. Industry 3.0 came about with the invention of PLCs in 1969.. Consequently reaching to this point where Industry 4.0 is rising with the advent of cyber physical systems.
- Some of the major economic trends that Industry 4.0 fosters are: 10 to 25 percent potential improvement in labor efficiency and energy savings A major source of value-- $360 billion in equipment maintenance. The McKinsey Global Index shows that The adoption rate of IoT in manufacturing in 2025 can reach 65 to 90 percent in advanced economies and 50 to 70 percent in developing economies, giving it the potential to create value of $1.2 trillion to $3.7 trillion per year by 2025.
- For manufacturers, IoT-based Systems would not only improve performance at individual plants, but also help optimize production across varied locations and situations. This in turn will build up scale and improve profitability. For operations, Industry 4.0 would produce improved efficiency, which would enable better product design and strengthen customer relationships , also providing the basis for a more service-like approach to equipment sales. For distributors, retailers, and other downstream players, IoT-enabled production and inventory systems could provide better pricing. They would have better data for their supply-chain management.
- Operations optimization Industry 4.0 can increase productivity by 10 to 25 percent by Optimizing operations. They can make real-time adjustments to maintain an uninterrupted flow of finished goods and avoid defects. In a Harley-Davidson paint shop, ventilation fan speeds are automatically adjusted for varying conditions in order to give a consistent coat. Predictive maintenance With sensors and connectivity, it is possible to monitor equipment in real time, improving both capacity utilization and factory productivity by avoiding breakdowns. IoT can transform the maintenance model from repair and replace to predict and prevent. Air China is using sensors in exhaust systems to reduce maintenance spending by 10 to 40 percent for air carriers Inventory optimization Using detection sensors, it is possible to set up condition-based automatic routines that are far better than current rules-based systems. Wurth USA, an auto parts supplier, has developed an “iBins” system that uses intelligent camera technology to monitor the fill level of a supply box and wirelessly transmits the data to an inventory management system
- The crucial 6 pillars of Industry 4.0 are: IoT-- Industrial Internet of Things makes use of networked sensors and embedded computing and real time responsive systems. Bosch uses a production facility where workstations "know " the manufacturing steps based on the products RFID code Analytics-- Advanced analytics is used for stable decision making based on highly varied data patterns. Infineon uses analytics to improve their production facility Virtual Reality-- Workers might receive instructions to repair a particular part , as they are looking at the actual system itself, using virtual reality glasses Cyber Physical Systems-- Industrial robot supplier ABB is launching a 2-armed robot YuMi that is specifically designed to work alongside humans Big Data-- Exponential amount of data is generated in Industry 4.0 practice that ca be used for better analytics and decision making Cyber Security-- Industry 4.0 practitioners need to ensure cyber security for critical work processes
- Some of the barriers in implementing Industry 4.0 are: Industry 3.0 saw more than 80 % replacement of installed production machinery, which is capital intensive . The second barrier can be a reliable data network with sufficient capacity which is not present in developing economies In today’s scenario , little or no decision making is done on the data available And lastly , highly skilled labour is required to operate the sophisticated systems of digital factory. But there are enablers of Industry 4.0 which turn the table round for progress. Fortunately introducing IoT into the factory, in many cases will not require wholesale replacement of equipment since many machines already in use have sensors . To overcome the issue of reliable network speeds, nations are increasingly building on their telecom infrastructure. There is an increase on the advanced analytics front with new technologies rising to deal with the huge amount of data To overcome the issue of skilled workforce, advanced training In cyber physical systems needs to be undertaken And one would be good –to-go for industry 4.0
- The future of Industry 4.0 would be strong if its based on the pillars of innovative technologies , adequate infrastructure , a skilled and upgraded workforce , facilitated by high quality advanced education. Industry 4.0 is still In its nascent stage , but once it reaches its full fruition, we will reap its benefits in the long term.