Industry 4.0 (Fourth industrial revolution)

Industry 4.0, often referred to as the "fourth industrial revolution," is a term used to describe the combination of several major innovations in digital technology that are transforming the energy and manufacturing sectors in the twenty-first century. Industry 4.0 is bringing about major changes in industry and the way things are made. Innovations such as advanced robotics, artificial intelligence, cloud computing, digital fabrication (3D printing), smartphones, and self-driving cars are combining to change the way factories and businesses operate. Industry 4.0 is being spurred by the move toward digitization and the development of smart factories, which will change the way manufacturing is done.

Background

A momentous shift in the way products are manufactured and the way factories operate is known as an industrial revolution. These revolutions are caused by changes in technology and the desire to do a job more efficiently. As its name implies, Industry 4.0, or the fourth industrial revolution, follows three previous industrial revolutions.

The first industrial revolution began in the late eighteenth century and was prompted mainly by water and steam power. The construction of railroads and the invention of the steam engine meant workers in that time had an easier way to transport goods from one place to another. It ushered in an age of mechanical production that also made jobs easier.

The second industrial revolution began in the late 1800s and early 1900s and resulted from the invention of electricity. Electric power changed the way products were made and the speed and efficiency with which they were produced. Mass production also became possible during this time thanks to the invention of the assembly line.

The third industrial revolution began in the 1960s and is usually called the computer or digital revolution because the invention of computers served as a catalyst in changing industry. The development of mainframe computing in the 1960s, personal computing in the 1970s and 1980s, and the internet in the 1990s transformed the way products were manufactured.

Finally, the fourth industrial revolution is a more recent change in industry. In 2011, Henning Kagermann, the head of the German National Academy of Science and Engineering, used the term Industrie 4.0 to describe a proposed government-sponsored industrial initiative. Industry 4.0 has since been adopted to describe this latest industrial revolution, in which the advancement of computers and other technologies is greatly shifting the way products are manufactured.

Overview

In the fourth industrial revolution, or Industry 4.0, computers and automation are coming together in new and innovative ways. Industry 4.0 is greatly affected by a process that became known as the Internet of Things (IoT), which is when computing devices embedded in everyday objects are connected to the internet, allowing them to send and receive data.

In Industry 4.0, robots can connect remotely to computer systems, which can control the robotics with very little input from a human operator. This leads to the development of the smart factory, in which cyber-physical systems monitor the physical processes on a factory floor. The physical systems within a factory are part of the IoT and are able to communicate and cooperate not only with one another but also with humans in real time. For a factory to be considered a smart factory, it must include at least four things: interoperability, information transparency, technical assistance, and decentralized decision making.

Interoperability refers to the ability of machines, devices, sensors, and people to connect and communicate with one another. Information transparency is when systems create a virtual copy of the physical process through sensor data to study the context of that information. Technical assistance refers to the ability of a system not only to support humans in making decisions but also to assist humans with tasks that are too difficult or unsafe for human operators to do. Finally, decentralized decision making refers to the ability of the cyber-physical system to make simple decisions without human input and to become as autonomous as possible.

The fourth industrial revolution is all about advanced computer technologies working with and for humans. With that in mind, digitization is one of the key components of Industry 4.0. Digitization involves converting something, such as a text or an image, so that it can be processed by a computer. Companies that adopt an Industry 4.0 approach keep the following three aspects of digitization in mind: full digitization of operations, redesign of products and services, and closer interaction with customers.

The full digitization of a company's operations involves integrating every function within the company among all levels of the company. Another important component is linking with suppliers, partners, and distributors, and transferring data among them seamlessly. For example, a company that wants to digitize operations could implement an inventory management system, which connects retailers, distribution centers, transporters, manufacturers, and suppliers. Data can be sent about supply levels, and orders can be placed and filled automatically to meet a company's needs.

A company looking to digitize should also complete a redesign of products and services to make them responsive and interactive, in addition to being able to track their own activity and results. When analyzed, data received from the products can then show how well they are functioning. For example, equipment can now detect an impending mechanical breakdown and even prevent it.

Finally, companies looking to digitize and join the fourth industrial revolution should expect to have closer interaction with customers. New processes, products, and services will allow a business to reach end customers more directly and tailor their approach accordingly.

Industry 4.0, or the fourth industrial revolution, is different from previous revolutions because it is about combining technologies and their interactions across physical and digital domains. These technological advances are allowing companies to work more efficiently than ever before.

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