Management Information Systems presentation on Industry 4.0
-> A Timeline of Industrial Revolutions The Genesis of 4.0
-> Components of Industry 4.0 Why 4.0?
-> Use Cases
-> Smart Logistics and Warehousing Quality Management
-> The Future Ahead: 5.0?
2. Contents
INDUSTRY 4.0
ATimeline of Industrial Revolutions
The Genesis of4.0
Components of Industry 4.0
Why 4.0?
Use Cases
Smart Logistics and Warehousing
Quality Management
The Future Ahead: 5.0?
3. ATimeline of Industrial
Revolutions
I N D U S T RY 1.0
Y1765
Steam engine: Efficient
generation of energy
Emergence of industrial
mechanisation
Period of proto-
industrialisation
High economic growth
I N D U S T RY 2 .0
Y1870
Electricity: Channelizing
and transporting power
Communication methods
revolutionized
Centralizing of capital via
large factories
Taylor and Ford's models
I N D U S T RY 4.0
N O W
Internet: Creating
integration and cohesion
Digitalization enabling
creation of a virtualworld
Connecting humans and
objects for common goal
Reduced human activity
I N D U S T RY 3.0
Y1969
Automation: Establishing
control over processes
Conceptualization of
automation and robotics
Establishing control via
electronics, computers
Miniaturizing technology
4. THE GENESIS
OF 4.0
THE DEUTSCH
DOCUMENT
The German government came up
with a document introducing
"Industrie 4.0"
"...way to deal quickly with the
fusion of the online world and the
world of industrial production."
- German Chancellor Angela Merkel
World Economic Forum
Davos 2013
"Define, design, analyse,
identify"
- purpose of the document
Investment worth €200 by the
German government
CONCEPTUALIZING
4.0
Industry 3.0 achieved automation
of manufacturing technologies
Needs for customization and
flexibility in mass production
propelled the need for 4.0
Advancements in ICT enhanced
man-machine interactions:
Self-optimization
Self-cognition
Self-customization
5. COMPONENTS OF INDUSTRY 4.0
SMART
FACTORIES
Calm systems: Deals
with physical world
and virtual world
Human intensive
manufacturing units to
benefit from "Dark
Factories" - Lights Out
Manufacturing
"Act only when
absolutely
CYBER
PHYSICAL
SYSTEMS
Integrates
computation and
physical processes
Three phases ofCPS
Identification (RFID)
Integration (DCS)
Development (ML)
INTERNET OF
THINGS (IOT)
Enabling direct
communication:
Machine-to-machine
& machine-to-human
Choice between
human intervention
Cooperation includes
resolution of conflict
of machine goals
INTERNET OF
SERVICES (IOS)
Simplificatying human
coordination by
establishing networks
between service
enabled devices
Greater the number of
connected devices,
lesser the importance
of the individual node
6. WHY 4.0?
E D U CA TI O N A N D
R E S E A R C H
OPTIMIZED P R O D U C TI O N
Research shows that excess revenue
generated by optimized productionusing
4.0 systems contributes significantlyto
the company top-line.
“Digitized products and
services generate approximately
€110 billion of additional revenues
per yearfor the
European industry.”
Development of Industry 4.0technologies
will push frontiers of research in tech,
data security, etc thereby increasing
employment and training. An emerging
skilled labour force will find new
employment opportunities in thisdomain.
C U S TO M E R F O C U S
The gap between the manufacturer and
the consumer is greatly reduced by the
degree of flexibility and customization
offered by Industry 4.0techniques.
Communication channels are becoming
more transparent and efficient with the
use of 4.0elements.
7. USE CASE: SMART
WAREHOUSING AND
LOGISTICS
Jefe the robot is a new employee at FedEx
warehouses in the US. T h e logistics and
transportation giant is using disruptive 4.0
elements to simplify the process of moving
their considnments, acting as a "tugger" to
transport the freight all the while navigating
and finding its way through the warehouse
premises.
T h e robot is integrating advancements in
sensor and robotic technology with computing
and automation, thereby doing the work of
humans m o r e effectively, efficiently, and
hopefully with lesser chances of accidents or
errors.
"It is important to
further analyze the 4.0
approach in order to be
a ble to d ra w
conclusions on the
d emogra phics of la bor
in the future. T his w ill
help w orkers of tod a y
prepa re for a not so fa r
future."
8. USE CASE: QUALITY
MANAGEMENT
"The ability to acquire
future skills and evolve
the current L&D talent
pool ca n mea n the
d ifference betw een a
successful d igita l
tra nsforma tion a nd one
tha t ma y not
a d equa tely a d a pt to
cha nging competitive
d ema nd s."
Tracking and maintaining quality of a
manufacturing process throughout the process
chain can be effectively managed by
implementing advanced systems in place.
Particularly in domains such as food
processing and healthcare manufacturing,
integrated systems which facilitate quality
management are reducing requirement for o n-
the-job skill building of human employees.
Any rigorous or repetitive job can be
automated and m o r e importantly modified as
and when required by changing production
requirements.
10. “YOU CANNOT WAITUNTIL A HOUSE
BURNS DOWNTOBUY FIRE
INSURANCE ON IT.
WE CANNOT WAIT UNTIL THERE ARE
MASSIVE DISLOCATIONS IN OUR
SOCIETY TO
PREPARE FOR THE FOURTH
INDUSTRIAL REVOLUTION.”
- PROF. ROBERT J. SHILLER,
YALE UNIVERSITY