The document discusses Industry 4.0 and how manufacturers can implement new technologies to increase efficiency and competitiveness. It begins by noting the decreasing average time companies stay on the Fortune 500 list, showing the need for constant innovation. Industry 4.0 utilizes advanced technologies like IoT, cyber-physical systems, and data analytics to create smart, connected factories. This allows for improvements like predictive maintenance, lean optimization, and quality control. While implementation will take time, starting with automation of material flow provides operational data for continuous improvement. Self-driving vehicles are poised to transform material handling within factories.

1. SAY ‘HELLO’
TO INDUSTRY 4.0

2. If you are not on the list, you want to be on it.
If you are on the list, you want to stay on it.

3. AVERAGE TIME ON THE FORTUNE 500 LIST
1950 2015
Source: Richard Foster, The Creative Edge, Deloitte
60YEARS
12YEARS
SAY H ELLO TO INDUSTRY 4.0

4. SO WHAT DOES THIS TELL US ABOUT
INDUSTRY 4.0?
“There is a clear correlation between innovation and revenue
growth, with the most innovative companies growing 38% faster than
their stagnating counterparts over the last three years.”
- P W C CO N S U LT I N G

5. WHY?
WHAT IS IT?
HOW CAN IT HELP?
HOW DO I GET STARTED?

6. WHY?
DO WE NEED TO ENGAGE IN INDUSTRY 4.0 CAPABILITY…

7. OV E R T H E N E X T D E CA D E
3 . 5 M I L L I O N
U S M A N U FA C T U R I N G J O B S
W I L L B E N E E D E D
W I T H A P P R OX I M AT E LY
2 M I L L I O N
L I K E LY TO G O U N F I L L E D
- D E LO I T T E
LABOR SHORTAGE

8. SAY H ELLO TO INDUSTRY 4.0
T H E N U M B E R O F
D E R I VAT I V E S O F A N E W
CA R I N C R E A S E D 1 0 0 %
F R O M 2 0 0 2 TO 2 0 1 1
INCREASINGLY COMPLEX SUPPLY CHAIN

9. SAY H ELLO TO INDUSTRY 4.0
T H E M A N U FAC T U R I N G S E C TO R
I N T H E U. S . H A S N OT G R O W N
A S FA ST A S T H E R E ST O F T H E
E CO N O M Y A N D, A S A R E S U LT,
I T S S H A R E O F TOTA L O U T P U T
H A S FA L L E N F R O M 2 4 % I N
1 9 7 0 TO 1 2 % C U R R E N T LY.
COST PRESSURES

10. TO DAY ’ S W H Y
I S TO
I N O U R M A R K E T
SAY H ELLO TO INDUSTRY 4.0
O U T PAC E C H A N G E

11. SAY H ELLO TO INDUSTRY 4.0
W H Y N O WI S A N Y D I F F E R E N T ?

12. SAY H ELLO TO INDUSTRY 4.0
T H E 3 R D I N D U S T R I A L R E V O L U T I O N P R O V I D E D F I X E D
A U T O M AT I O N TO C O M P L E T E S P E C I F I C TA S K S .
B U T O U R M A R K E T P L A C E I S C H A N G I N G Q U I C K LY A N D W E
N E E D P R O D U C T S T H AT W I L L A D A P T W I T H O U R B U S I N E S S .

13. A DA P T I N G
SAY H ELLO TO INDUSTRY 4.0
I N T E L L I G E N C E
R E Q U I R E S

14. I N T E L L I G E N C E
SAY H ELLO TO INDUSTRY 4.0
P R O C E S S I N G O F DATA
R E Q U I R E S

15. SAY H ELLO TO INDUSTRY 4.0
N O W I S T H E T I M E F O R I N D U S T R Y 4 . 0 B E C A U S E :
• D ATA S TO R A G E I S I N E X P E N S I V E
• C O M P U TAT I O N A L P O W E R H A S A D VA N C E D T O
A C C O M M O D AT E I N D U S T R I A L N E E D S
• D ATA N E T W O R K I N G E N A B L E S F R E E F LO W O F D ATA

16. SAY H ELLO TO INDUSTRY 4.0
A D VA N C E M E N T S H AV E L E A D TO P O W E R F U L ,
I N T E L L I G E N T S E N S O R S AT A P R I C E P O I N T T H AT
O F F E R H I G H R O I I N T H E I N D U S T R I A L S PA C E .

17. WHAT?
IS THIS INDUSTRY 4.0 THING…

18. I N D U ST R Y 4 . 0
I N T E R CO N N E C T E D I N D U ST R I A L E Q U I P M E N T
T H AT P R OV I D E S
SAY H ELLO TO INDUSTRY 4.0
C E N T R A L I Z E D
O P E R AT I O N A L DATA

19. INDUSTRY 4.0
SMART FACTORY
INTERNET OF THINGS (IOT)
CYBER PHYSICAL SYSTEMS
INTEROPERABILITY
VERTICAL NETWORKS
BIG DATA

20. SAY H ELLO TO INDUSTRY 4.0
T H E P H Y S I C A L W O R L D I S B E C O M I N G A T Y P E O F
I N F O R M AT I O N S Y S T E M — T H R O U G H S E N S O R S A N D
A C T U ATO R S E M B E D D E D I N P H Y S I C A L O B J E C T S A N D
L I N K E D T H R O U G H W I R E D A N D W I R E L E S S N E T W O R K S

21. SAY H ELLO TO INDUSTRY 4.0
“ P R O C E S S A N D D E V I C E
W I L L B E
I N S E P E R A B L E ”
- M C K I N S E Y R E P O RT

22. SAY H ELLO TO INDUSTRY 4.0
ABOUT 25 BILLION OBJECTS WILL BE
INTERCONNECTED BY 2020.
TODAY, THERE ARE 3.8 BILLION SUCH OBJECTS
G A RT N E R ST U DY

23. HOW CAN IT HELP?
THIS INDUSTRY 4.0 THING…

24. T H E M A N U FAC T U R I N G S E C TO R
IN THE U.S. HAS NOT GROWN AS FAST
AS THE REST OF THE ECONOMY …
TOTAL OUTPUT H A S FA L L E N FROM
24% IN 1970 TO 12% CURRENTLY
SAY H ELLO TO INDUSTRY 4.0

25. SAY H ELLO TO INDUSTRY 4.0
INDUSTRY 4.0 CAPABILITIES
ENABLE INFORMATION TO BE
TRANSMITTED INSTANTLY.
I M A G I N E R O B OT I C W O R K C E L L S T H AT
A R E S E R V E D B Y S E L F - D R I V I N G V E H I C L E S

26. SAY H ELLO TO INDUSTRY 4.0
T H E FA C TO R Y O F T H E F U T U R E W I L L :
I N C R E A S E E F F I C I E N CY
R E D U C E CO ST S
A DA P T

27. C E N T R A L I Z E D O P E R AT I O N A L DATA
I N M A N U FAC T U R I N G O F F E R S
1. Lean Process Optimization
2. Predictive Maintenance
3. Elimination of Quality Process
SAY H ELLO TO INDUSTRY 4.0

28. SAY H ELLO TO INDUSTRY 4.0
1. LEAN PROCESS OPTIMIZATION
Systems will become interconnected and know
the exact location of every part at any given
time and build in probabilities to have only the
parts needed delivered to the line.
The system will be able to extend beyond limit
of individual factories and interconnect multiple
facilities to accomplish goal of lean.

29. SAY H ELLO TO INDUSTRY 4.0
• R E D U C E M A I N T E N A N C E C O S T S B Y 1 0 TO 4 0 %
• R E D U C E D O W N T I M E B Y 5 0 %
• LO W E R E Q U I P M E N T A N D C A P I TA L I N V E S T M E N T B Y 3
TO 5 % B Y E X T E N D I N G M A C H I N E L I F E
– M C K I N S E Y ST U DY
T H E P E R C E N TA G E S A N D C O S T, T H E P OT E N T I A L F O R
S AV I N G O P E R AT I O N A L E F F I C I E N C Y A N D U S E O F
R E S O U R C E I S S I G N I F I C A N T.
2. PREVENTATIVE MAINTENANCE

30. SAY H ELLO TO INDUSTRY 4.0
3. ELIMINATION OF QUALITY PROCESS
T R A D I T I O N A L T E C H N O LO GY I S G O O D AT R E V I E W I N G A
D E F I N E D S E T O F P R O B L E M S , B U T M A C H I N E L E A R N I N G
T E C H N I Q U E S C O U L D P O T E N T I A L LY E L I M I N AT E T H E
P R O C E S S O F T E S T I N G A L L T O G E T H E R B Y P R E D I C T I N G
Q U A L I T Y E A R LY I N T H E M A N U FA C T U R I N G P R O C E S S A N D
K N O W I N G W H E N T H E S Y S T E M I S G O I N G T O FA U LT.

31. W H AT I F:
- Systems present and act on
optimization opportunities
- Adapt to changes in real time
- Facilities learn from each other
SAY H ELLO TO INDUSTRY 4.0

32. C L E A R PAT H C O N F I D E N T I A L
Say Hello to Industry 4.0
SOUNDING FAR FETCHED?
M O S T N E V E R T H O U G H T W AT S O N W O U L D B E AT T H E J E O PA R DY
C H A M P I O N O F T H E W O R L D.

33. SAY H ELLO TO INDUSTRY 4.0
“Humans can typically create one or two good models a week;
machine learning can create thousands of models a week.”
T H O M A S H . DAV E N P O RT, A N A LY T I C S T H O U G H T L E A D E R
E X C E R P T F R O M T H E W A L L S T R E E T J O U R N A L

34. HOW CAN I IMPLEMENT?
THIS INDUSTRY 4.0 THING…
SAY H ELLO TO INDUSTRY 4.0

35. ST E P 1 :
R E C O G N I Z E T H E C H A N G E P O T E N T I A L , V A L U E
C R E AT I O N , A N D C O S T R E D U C T I O N S W E C A N A C H I E V E .
ST E P 2 :
M A K E T H E S Y S T E M U S E R - F R I E N D LY S O T H AT E N D
U S E R S C A N I M M E D I AT E LY R E A C T W I T H O U T G E T T I N G
B LO C K E D O N I N T E R D E P E N D E N C I E S .
ST E P 3 :
W O R K W I T H PA R T N E R S W H O D R I V E T H I S V I S I O N
T H R O U G H T H E I R P R O D U C T O F F E R I N G
– M C K I N S E Y R E P O RT
SAY H ELLO TO INDUSTRY 4.0

36. SAY H ELLO TO INDUSTRY 4.0
MATERIAL HANDLING ACCOUNTS FOR:
PRODUCTION COST EMPLOYEE TIME FACTORY SPACE PRODUCTION TIME
75% 25% 55% 87%
– CO N CO R D I A U N I V E R S I TY

37. S M A RT M AT E R I A L T R A N S P O RT = S M A RT FAC TO R Y
SAY H ELLO TO INDUSTRY 4.0

38. SAY H ELLO TO INDUSTRY 4.0
B Y CO N T R O L L I N G M AT E R I A L
T R A N S P O RT YO U H AV E ACC E S S TO
C R I T I CA L O P E R AT I O N A L DATA

39. “ B L AC K B OX ”
M A N U FA C T U R I N G P R O C E S S
O U T
B Y AU TO M AT I N G M AT E R I A L F LO W, W E K N O W:
Part location of all inventory
Cycle time of production cell
Uptime / Downtime
Units produced
Quality Rate
This data provides opportunity to advance change and improvement
I N
SAY H ELLO TO INDUSTRY 4.0

40. SAY H ELLO TO INDUSTRY 4.0
M AT E R I A L F LO W I S C O M P L E X A N D C H A N G E C A N N OT
H A P P E N O V E R N I G H T…
B U T T E C H N O LO GY I S A D VA N C I N G Q U I C K LY A N D B R I N G I N G
U S S T E P S C LO S E R TO O U R V I S I O N O F T H E ‘ S M A R T FA C TO R Y.’

41. Era 1:
Early Industrial Robotics
1955 – 1980
Era 2:
Autonomous Guided Vehicles
1980 – 2015
Era 3:
Self-Driving Vehicles
2015 – 2025
SAY H ELLO TO INDUSTRY 4.0
No Navigation Infrastructure
Safe and Collaborative
Parallel Operation
Adapts to Change
Fixed Infrastructure
Sequential
InflexibleLimited application
Short move transfers

42. SAY H ELLO TO INDUSTRY 4.0
S E L F D R I V I N G V E H I C L E S F O R I N D U ST R Y

43. SAY H ELLO TO INDUSTRY 4.0
CO N F I G U R AT I O N S

45. "I believe that we are at the dawn of an innovation wave that
will soon hit the material handling industry. The convergence of
big data, faster and cheaper computer power, and increasing
demands of customers will likely accelerate the adoption of
innovative products and services."
S COT T S O P H E R
P R I N C I PA L , D E LO I T T E C O N S U LT I N G L L P

46. I N D U ST R Y 4 . 0 I N N O RT H A M E R I CA N E E D S
C H A M P I O N S
A N D T H O U G H T L E A D E R S
E N G A G E I N D U S T R Y 4 . 0 AT:
W W W. OT TO M OTO R S . CO M