Embracing Industry 4.0
What is Industry 4.0: Industry 4.0 is a movement to promote the digitalization and integration of smart systems across all points of the manufacturing sector. Industry 4.0 makes production faster, more efficient and more flexible through smart, connected systems along the entire value chain and product life cycle.
Enablers of Industry 4.0: There are two important enablers of Industry 4.0 revolution:
- Cloud Computing: With vast amounts of storage space and the capacity to view and manage data in real-time, the integration of cloud technology is not only a key advantage of embracing Industry 4.0, but it’s also an important component of the future of supply chain management.
- IOT: The internet of things is the concept which uses the cloud to store and automate processes in objects that are synced to the internet, like internet-enabled automobiles.
Industry 4.0 utilizes both cloud computing and the internet of things to take processes that are managed internally by both people and machines and move them into the cloud where they can be managed from anywhere in the world. Industry 4.0 challenges the traditional way that manufacturing and production systems in factories currently function, with centralized and offline systems that are not inter-connected. Some factories have now evolved into “smart factories” with the capability to self-manage issues and internal processes across the value chain.
Competitive Advantages of Embracing Industry 4.0: Industry 4.0 presents opportunities from productivity to customer personalization. Below are some competitive advantages that manufacturing industries can gain while embracing Industry 4.0
- Advanced Analytics: As we know that Industrial IOT and Industry 4.0 essentially have a cause-and-effect relationship.Utilizing data and information collected through IIOT, Industry 4.0 opens advanced analytics possibilities in manufacturing sector. Advanced analytics directly improve demand capacity management by allowing real-time insights. SSI also had an opportunity to partner with Advanced Energy to initiate the process of their Industry 4.0 readiness. We configuring a “local box” which is a single board computer to add Industry 4.0 data aggregation, analytics and predictive maintenance capabilities to the system. This advanced analytics dashboard helps end users of Advanced Energy to lower operating costs and improve efficiency by reducing any downtime due to machine failure.
- Supply chain optimization: With the help of Big Data, Industry 4.0’s ability to provide Supply Chain operations with shareable data on supply levels, inventory readings and transportation simulations not only avoid bottlenecks and troubleshooting but it could also provide Supply Chain planners with the most detailed, up-to-date data on cost effectiveness and other value-added propositions that result in sound and profitable decision-making.
- Increased Productivity: The most obvious advantage is increased productivity and profitability. In a 2016 survey from PWC, companies who are implementing Industry 4.0 solutions expected more than 38% higher productivity over the next five years. Integration of smart materials and equipment that can diagnose and fix itself helps streamline processes, make more versatile production, and hence increase profitability and productivity.Predicative maintenance reduces cost of operations by avoiding machine failure.
- Customer Satisfaction: Customers can benefit hugely from Industry 4.0. In fact, some would agree that customers are the real enablers behind Industry 4.0 revolution. Now made-to order or customizable products can be more easily created for lower cost.
- Improved Communication: Industry 4.0 relies heavily on the coordination and communication of intelligent planning platforms or solutions. It puts more data in the hands of individuals who can work with that data to streamline how a manufacturer operates it planning and production stages.