This document discusses the progression from Industry 1.0 to the emerging Industry 4.0. It summarizes that Industry 4.0 will utilize cyber-physical systems, vertical and horizontal integration, the Internet of Things, autonomous robots, big data and analytics, cloud computing, and augmented reality. It provides examples of early Industry 4.0 implementations in Germany, China, the US, and Finland. The document also discusses opportunities and challenges for Turkey regarding Industry 4.0 and looks beyond to concepts like open innovation, additive manufacturing, and disruptive innovation enabled by emerging technologies.

1. ON THE WAY TO INDUSTRY 4.0 :
DIGITAL ENTERPRISE
Ali Rıza Ersoy
Mar, 2016 v2.0

2. GOOGLE
TRENDS
First assembly line
Cincinnati USA, 1870

3. HISTORY?

4. FIRST
INDUSTRIAL
REVOLUTION
• Mechanical Steam Power
First mechanical loom
Doncaster England, 1784
Photograph Source : http://etc.usf.edu/clipart/79800/79831/79831_powerloom.htm

5. SECOND
INDUSTRIAL
REVOLUTİON
• Electrical Energy
First assembly line
Cincinnati USA, 1870
Photograph Source : http://www.thinglink.com/scene/477884074095017986

6. THIRD
INDUSTRIAL
REVOLUTION
• Electronic and IT Systems
Programmable Logic Controller (PLC)
1969
Photograph Source : http://electrical-engineering-portal.com/when-we-started-to-use-
plcs-after-all

7. WHY
4th?

8. EAST
MANUFACTURING
OVERWHELMING
WEST
• Industrial products sales
Source VDMA
Billion € 2006 2011
EU (27) 550 620
China 170 580
USA 280 280
Germany 190 220
Russia 10 15

9. SHORTEN
TIME TO
MARKET
• Shorter innovation cycles
• More complex products
• Smaller lots

10. INCREASE
FLEXIBILITY
• Individualized production
• Volatile markets
• Max. automation

11. BOOST
EFFICIENCY
• More with less
• Energy efficiency
• Robots for redundant actions
• More flexible and coherent
processes

12. WHEN?

13. INDUSTRIE 4.0
• 2011
Hannover Fair
• 2012
German Federal Goverment
• 2013 April
German Country Strategy
• 2014 February
Siemens Turkey Press Launch
• 2015
Hannover Fair motto
• 2016
Davos WEF motto

14. HOW?

15. CYBER -
PHYSICAL
SYSTEMS
• Digital 3D simulation of factories,
manufacturing lines and human
• Digital 3D simulation of products
• All on PLM-Product Lifecyle
Management systems
• Bits and atoms
Photograph Source : http://www.fabricatingandmetalworking.com/2013/09/standing-
on-the-edge/

16. Animation
16

17. VERTICAL &
HORIZONTAL
INTEGRATION
• Vertical:
Marketing, Sales, Planning,
Production (PLM, ERP,
MES/MOM)
• Horizontal:
Raw Material, Suppliers,
Producers, Logistics,
Distributers, Customers,
Recycling
• No hierarchy, all distributed

18. IOT
INTERNET OF
THINGS
(&SERVICES
&HUMAN
&EVERYTHING)
Connected “things” will double to 28 billion
by 2020, human to 7,7 billion
• Unique ID for every material,
machine, product and human
• End-to-end digital process info
from raw material to recycle
• Communicating, analyzing data,
predict failure, configure trouble
shooting
• Adapt to changes

19. AUTONOMOUS
ROBOTS
• Learning from other robots
and humans
• Multi programmable
• Great capabilities
• H2M, M2H, New:M2M
• Self –testing and repairing

20. © Siemens AG 2015
Page 20 Siegfried Russwurm, Member of the Managing Board of Siemens AGJune 9, 2015

21. Increase of data
from 2010 to 2020
50fold
20202010
Overall data
Big Data And
Analytics
- aaaa
0101001101101001011001010110110101100101011011100111001100
1000000110100101110011001000000110000100100000011001110110
1100011011110110001001100001011011000010000001110000011011
1101110111011001010111001001101000011011110111010101110011
0110010100100000011001100110111101100011011101010111001101
1010010110111001100111001000000110111101101110001000000111
0100011010000110010100100000011000010111001001100101011000
0101110011001000000110111101100110001000000110010101101100
0110010101100011011101000111001001101001011001100110100101
1000110110000101110100011010010110111101101110001011000010
0000011000010111010101110100011011110110110101100001011101
0001101001011011110110111000100000011000010110111001100100
0010000001100100011010010110011101101001011101000110000101
1011000110100101111010011000010111010001101001011011110110
1110001011100010000001001111011011100110010100100000011011
1101100110001000000111010001101000011001010010000001110111
0110111101110010011011000110010010010010011100110010000001
1011000110000101110010011001110110010101110011011101000010
0000011100000111001001101111011001000111010101100011011001
0101110010011100110010000001101111011001100010000001100101
0110111001100101011100100110011101111001001011010110010101
10,000
20,000
30,000
40,000
• Data created only in 2000 was
more than in 25 million years
• Many different sources (robots,
automation software, even
unfinished products)
• Must for real-time decision
making
BIG DATA
AND
ANALYTICS

22. THE CLOUD
• 35 % of data in Cloud by 2020
• Cloud based solutions
• Smart applications

23. AUGMENTED
REALITY
• Manufacturing instructions
• Real-time reports, messages
• Quality checks with camera
• Emergency directives

24. CYBER-
SECURITY
• More comprehensive security
framework
• Increased communication can
cause access problems
• Vulnerable to cyberattacks
• Data privacy is critical

25. WHAT @WORLD?

26. GERMANY:
SIEMENS
AMBERG
FACILITY
• 1000+ product variants
• 1Million products monthly
• Only 25% performed by
humans
• Quality 99.9988 %

27. CHINA
• 20 % of the world's
• Made in China 2025
• Goal :
40% by 2020
70% by 2025

28. • Industrial Internet
• Advanced IT and
communication sector is
advantage
• Advanced Manufacturing
National Program of the US
Department of Commerce
USA

29. FINLAND
• Silicon Valley of:
Industry 4.0
• Internet in manufacturing:
44%
• Employment in high-tech
8%

30. WHAT@TURKEY

31. TODAY
• Between 2.0-3.0
• Ministry of Science, Industry and
Technology meeting on Dec. 09, 2015
• Workshop on Jan. 16-17, 2016
• Science and Technology High
Council’s decision on Feb. 23, 2016
• Government: “Ready for I 4.0” in
Autumn 2016
Photograph Source : http://fotogaleri.egebirlik.org.tr

32. WWW.
ENDUSTRI40
.COM
• Turkey’s Platform for:
• Information
• Discussion
• Library
• Events
• Best Practice
• Know-how exchange
• Come and be a partner

33. TOMORROW
• Industry 4.0 Turkey Platform
• Industry 4.0 Country Strategy
• Eurasia Hub of Manufacturing
• From “technology user“ to
“innovator”
• Middle Income Trap

34. WHAT@NEXT

35. INVESTMENT
• Germany: € 40 B
Europe: € 140 B
p.a till 2020
• 3.3 % of sales
Source : pwc

36. REVENUE
GROWTH
• New complex products
• New customized products
• Growth of 2-3% sales
• Germany : € 30 B
Europe : € 110 B p.a
Source : pwc

37. EMPLOYMENT
• 6% increase
• Highly skilled people needed
• IT and Mechatronics experts
replacing low skilled laborers
Source : BCG

38. GOVERNMENTS
• Establish a Country Platform
• Workout, approve and launch
Country Strategy
• Review school curricula,
university programs
• Incentivize R&D programs,
high-tech manufacturing
• Provide a good technology
infrastructure Photograph Source : https://www.tbmm.gov.tr/develop/owa/tbmm_internet.anasayfa

39. RESEARCHERS
• Work on int’l standards
• Focus on university –
industry collaboration models
• Mentoring students about
cross discipline studies like
mechatronics

40. TECHNOLOGY
SUPPLIERS
• Concentrate on future-tech
• Inform about Industry 4.0
• Collaborate with each other
• Implement new business
models, organizational
structures fit to digital world

41. MANUFACTURERS
• Need to fully understand
customer requirements
• Develop a strategy for
technological improvement
• Implement new business
models, organizational
structures fit to digital world
35

42. WHAT@BEYOND

43. OPEN
• Open Innovation
• Open Design
• Open Software
• Open Hardware
• Open Organization
• Open Production
• Open Capital

44. MAKERS
MOVEMENT
• At home
• Ingeneunity, Sharing, Self
Learning
• Production instead
consuming
• Self proto-typing

45. ADDITIVE
MANUFACTURING
• 3D scanning and 3D printing
• First 3D printer borned in 2015
• Skull and vane already in use
• 10 houses in 3 days
• Siemens TR & Darüşşafaka
Robots Club - 2015 NASA Award

46. DISRUPTIVE
INNOVATION
• Today cars: 5 % at work
Google car: 95 %
• Robots are producing robots

47. LIGHT OUT
FACTORIES
• Highly automated robots
• No need for light, food etc.
• Somewhere in desert
• Controlled remotely

48. LET’S GET
READY
FOR THEM
NOW!

49. THANK YOU...