This document discusses Industrie 4.0, the fourth industrial revolution bringing connectivity and intelligence to manufacturing through technologies like the Internet of Things. Key concepts are connecting physical devices to networks and machines interacting with each other to enable mass customization. This transformation integrates horizontal and vertical networking in factories. Six design principles are outlined: interoperability, virtualization, decentralization, real-time capability, service orientation, and modularity. Diagrams show examples of smart factories and supply chains enabled by Industrie 4.0.

1. Industrie 4.0
Marc-André Léger

2. Industrie 4.0: Fourth Industrial Revolution
SOURCE: SIEMENS AG

3. Key concepts of Industry 4.0
 Industry 4.0 is the paradigm of connecting different kinds of physical devices
enriched with embedded electronics to a network or internet, so they
interact, man to machine of machine to machine, facilitating IT-enabled mass
customization in manufacturing.
 Transformation of manufacturing processes with the help of IoT platforms into
cyber-physical systems that are increasingly adaptable, digitalised,
interconnected and demand-driven, process to allow for customized,
personalized and high-quality products.
 For Industry 4.0 production, it is essential to implement both the horizontal
and vertical integration of the value network and the production inside the
factory.
Adolph, Lars, et al., 2016

4. Industrie 4.0

5. https://www.slideshare.net/TheBostonConsultingGroup/sprinting-to-value-in-industry-40

7. Industrie 4.0
six design
principles

8. Interoperability
 Interoperability: the ability of CPS, humans and Smart Factories to connect
and communicate with each other via the Internet of Things and the Internet
of Services
 Connection of CPS, people and manufacturing systems
 Collaboration
 IT and OT convergence
 IoT and People
 Standards, protocols and connected data

9. Virtualization
 Virtualization: a virtual copy of the Smart Factory which is created by linking
sensor data with virtual plant models and simulation models
 Virtual representations and copies
 Sensor data and contextual data
 Context-aware information
 Digital manufacturing and plant models
 Simulation models and digital twins

10. Decentralization
 Decentralization: the ability of CPS within Smart Factories to make decisions
on their own
 Autonomous and semi-autonomous decisions
 Intelligence towards the edge
 The cyber-physical system as a decision maker
 Human/machine element in planning and deciding
 Ubiquitous decentralization from manufacturing to warehousing and logistics

11. Real-Time Capability
 Real-Time Capability: the capability to collect and analyze data and provide
the insights immediately
 Real-time data for real-time economy
 Immediate collection and analysis to obtain desired insights
 Fast data for flexibility
 Focus on decisions
 Preventive/predictive maintenance

12. Service Orientation
 Service Orientation: offering of services (of CPS, humans and Smart
Factories) via the Internet of Services
 Cyber-physical systems supporting people
 As-a-service-economy
 Personalization and value-added with focus on customer
 Internet of services
 New service models

13. Modularity
 Modularity: flexible adaptation of Smart Factories for changing requirements
of individual modules
 Replacement or expansion of individual models as response to changing needs
 Customer-centricity
 Flexibility and agility
 Planning for the unpredictable
 Dynamic environment: capabilities for swift changes

14. Industrie 4.0 Smart Factory
SOURCE: CAPGEMINI
CPPS = CYBER-PHYSICAL PRODUCTION SYSTEM
M2M = MACHINE-TO-MACHINE

15. Industrie 4.0 Smart Factory
SOURCE: ROLAND BERGER STRATEGY CONSULTANTS

17. Industrie 4.0 Supply Chain
SOURCE: CAPGEMINI
RAW MATERIAL
SUPPLIER
LOGISTICS LOGISTICS
MANUFACTURER
CUSTOMER
END USER
LOGISTICS
SUPPLY CHAIN:

18. Some Industrie 4.0 Technologies
Digital
workflows and
platforms
End-to-end
(E2E) process
management
Smart,
autonomous
assets
Human
interaction
Logistics systems across the networked industry
Big
data
3D printing &
virtualization
New digital
business
models
SOURCE: PROF. DR. ANDRÉ LUDWIG

19. Soon Everything Will Be Smart
SOURCE: PROF. DR. ANDRÉ LUDWIG

20. Connected Devices Projection
2003 2010 2015 2020
500 Million 12.5 Billion 50 Billion25 Billion
Connected
Devices
Connected
Devices Per
Person 0.08 1.84 6.583.47
World
Population 6.3 Billion 6.8 Billion 7.6 Billion7.2 Billion
More connected
devices than people
(Conservative)
2008
SOURCE: CISCO

21. Information is changing the world

22. Smart Buildings
InternetAC power sub-meters
Outdoor temperature
Temp, Hum., Light, CO2
sensors
Relay nodes
Routers
Gas/Water sub-meters
Dashboards
SOURCE: CISCO

23. Smart Manufacturing
Supply Chain
Distribution Center
Customer
Business
Systems, ERP
Smart Grid
Smart Factory
• Dynamic plant configuration, readiness
• Dynamic product configuration
• Dynamic inventory minimization
SOURCE: ROBERT GRAYBILL