TECHNICAL WRITE-UP

TITLE : INDUSTRIAL REVOLUTION 4.0

DATE : 16 APRIL 2019

NAME : NOR HAFIZA BINTI ALI

TABLE OF CONTENTS
1. INTRODUCTION.........................................................................................................................2
1.1 Industrial Revolution 4.0.......................................................................................................3
2. STAGES OF INDUSTRIAL REVOLUTION 4.0.........................................................................4
2.1 First Industrial Revolution.....................................................................................................4
2.2 Second Industrial Revolution.................................................................................................5
2.3 Third Industrial Revolution....................................................................................................5
2.4 Fourth Industrial Revolution..................................................................................................6
3. CHARACTERISTICS OF INDUSTRIAL REVOLUTION 4.0....................................................7
3.1 Information Transparency......................................................................................................7
3.2 Interoperability......................................................................................................................7
3.3 Technical Assistance..............................................................................................................8
3.4 Decentralized Decisions........................................................................................................8
4. CHALLENGES OF INDUSTRIAL REVOLUTION 4.0..............................................................9
4.1 Security..................................................................................................................................9
4.2 Capital...................................................................................................................................9
4.3 Employment.........................................................................................................................10
4.4 Privacy.................................................................................................................................10
5. ADVANTAGES OF INDUSTRIAL REVOLUTION 4.0...........................................................11
5.1 Better Workplace.................................................................................................................12
5.2 Reduced Costs.....................................................................................................................12
5.3 Higher Productivity.............................................................................................................12
5.4 Rapid Innovation.................................................................................................................12
5.5 Customer Satisfaction..........................................................................................................13
6. SMART FACTORY INDUSTRIAL REVOLUTION 4.0...........................................................14
6.1 Characteristics of Smart Factory..........................................................................................15
6.2 Benefits of Smart Factory....................................................................................................17
7. CONCLUSION...........................................................................................................................19

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1. INTRODUCTION

The impact of technology’s influence, new devices and new forms of

communication, has not only affected the private scenery, it is also revolutionising
industry with each passing day. No one can escape the Industrial Revolution 4.0
concept, a term that references the application of digital technologies in the industrial
production chain. And that is because nowadays, industrial processes demand a high
connectivity between all of their processes.

Industrial Revolution 4.0 appears as a new breakthrough of industrial

development, making an extensive use of the Internet and other technologies. Each
day we are witnesses to a constant evolution, which we could sum up in a single
concept, “The Fourth Industrial Revolution”.

In short, it involves the generalisation of certain technological resources in the

industry which enable the interaction between two worlds, the physical and the digital
ones. Specifically, it can be defined as the link between the physical and the virtual
worlds in order to turn industry into a smart industry.

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1.1 Industrial Revolution 4.0

The Fourth Industrial Revolution is expected to change how we live, work,

and communicate and it is also likely to change the things we value and the way
we value them in the future. Presently, we can already see changing business
models and employment trends.

According to The World Economic Forum, an estimated 65% of kids

enrolling in primary education today will end up working in jobs that haven’t been
created yet.

It is marked by emerging technology breakthroughs in a number of fields,

including robotics, artificial intelligence, nanotechnology, quantum computing,
biotechnology, the Internet of Things, the Industrial Internet of Things (IIoT),
decentralized consensus, fifth-generation wireless technologies (5G), additive
manufacturing/3D printing and fully autonomous vehicles.

Automation and artificial intelligence are change agents in Industrial

Revolution 4.0 that will make certain groups of employees redundant, replacing
them with new workers with the needed skills or with machines that do the job
cheaper. Gone are the days where students go to college or university to study for
a degree that will set them up with a job for life.

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2. STAGES OF INDUSTRIAL REVOLUTION 4.0

2.1 First Industrial Revolution

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 The First Industrial Revolution took place from the 18th to 19th
centuries in Europe and North America. It was a period when mostly
agrarian, rural societies became industrial and urban. The iron and textile
industries, along with the development of the water wheel and then the steam
engine, played central roles in the Industrial Revolution.

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2.2 Second Industrial Revolution

The Second Industrial Revolution took place between 1870 and 1914,
just before World War I. It was a period of growth for pre-existing industries
and expansion of new ones, such as steel, oil and electricity, and used electric
power to create mass production. Major technological advances during this
period included the telephone, light bulb, phonograph and the internal
combustion engine.

2.3 Third Industrial Revolution

The Third Industrial Revolution, or the Digital Revolution, refers to the

advancement of technology from analog electronic and mechanical devices to
the digital technology available today. The era started during the 1980s.
Advancements during the Third Industrial Revolution include the personal
computer, the internet, and information and communications technology
(ICT).

The Third Industrial Revolution, How Lateral Power is Transforming

Energy, the Economy, and the World is a book by Jeremy Rifkin published in
2011. The premise of the book is that fundamental economic change occurs
when three types of technological advances occur which are the way we move
goods or human, the way we communicate and manage information and the
way we power our economies. The third industrial revolution has the potential
to be transformative with automated driving, 5G networks and the internet of
things, renewable energy.

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2.4 Fourth Industrial Revolution

The Fourth Industrial Revolution builds on the Digital Revolution,

representing new ways in which technology becomes embedded within
societies and even the human body. The Fourth Industrial Revolution is
marked by emerging technology breakthroughs in a number of fields,
including robotics, artificial intelligence, nanotechnology, quantum
computing, biotechnology, The Internet of Things (IoT), decentralized
consensus, 3D printing and autonomous vehicles. The biggest impact of the
Fourth Industrial Revolution is to improve the quality of life, reduce inequality
of the world's population and raise income level.

The Fourth Industrial Revolution, this fourth revolution is

fundamentally different from the previous three, which were characterized
mainly by advances in technology. The underlying basis for Industrial
Revolution 4.0 lies in advances in communication and connectivity rather than
technology. These technologies have great potential to continue to connect
billions of more people to the web, drastically improve the efficiency of
business and organizations and help regenerate the natural environment
through better asset management.

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3. CHARACTERISTICS OF INDUSTRIAL REVOLUTION 4.0

Industrial Revolution 4.0 involves the heavy use of automation and data exchange
in manufacturing environments, including areas such as cyber-physical systems, the
Internet of Things (IoT) and cloud computing. With Industrial Revolution 4.0,
manufacturers will be able to operate "smarter" factories in which they can more
easily tailor products to specific customers.

There are four design principles in Industrial Revolution 4.0. These principles
support companies in identifying and implementing Industrial Revolution 4.0
scenarios.

3.1 Information Transparency

The ability of information systems to create a virtual copy of the

physical world by enriching digital plant models with sensor data. This
requires the aggregation of raw sensor data to higher-value context
information.

3.2 Interoperability

The ability of machines, devices, sensors, and people to connect and

communicate with each other via the Internet of Things (IoT) or the Internet of
People (IoP). Adding IoT will further automate the process to a significant
extent.

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3.3 Technical Assistance

The ability of assistance systems to support humans by aggregating

and visualizing information comprehensibly for making informed decisions
and solving urgent problems on short notice. Plus, the ability of cyber physical
systems to physically support humans by conducting a range of tasks that are
unpleasant, too exhausting, or unsafe for their human co-workers.

3.4 Decentralized Decisions

The ability of cyber physical systems to make decisions on their own

and to perform their tasks as autonomously as possible. Only in the case of
exceptions, interferences, or conflicting goals, are tasks delegated to a higher
level.

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4. CHALLENGES OF INDUSTRIAL REVOLUTION 4.0

The opportunities that will be available to enterprises when the Fourth

Industrial Revolution begins to take shape, like improved customer service, stronger
access to data, and massive improvements in enterprise, are vast. Here, we discuss the
challenges that may affect organisations attempting to implement these digital
technologies into their structure.

4.1 Security

Perhaps the most challenging aspect of implementing Industrial

Revolution 4.0 techniques is the IT security risk. This online integration will
give room to security breaches and data leaks. Cyber theft must also be put
into consideration. In this case, the problem is not individual, but can, and
probably will, cost produce money and might even hurt their reputation.
Therefore, research in security is crucial.

4.2 Capital

Such transformation will require a huge investment in a new

technology that doesn’t sound cheap. The decision to make such
transformation will have to be on CEO level. Even then, the risks must be
calculated and taken seriously. In addition, such transformation will require a
huge capital, which alienates smaller businesses and might cost them their
market share in the future.

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4.3 Employment

While it still remains early to speculate on employment conditions with

the adoption of Industry 4.0 globally, it is safe to say that workers will need to
acquire different or an all-new set of skills. This may help employment rates
go-up but it will also alienate a big sector workers.

The sector of workers whose work is perhaps repetitive will face a

challenge in keeping up with the industry. Different forms of education must
be introduced, but it still doesn’t solve the problem for the elder portion of
workers. This is an issue that might take longer to solve and will be further
analyzed later in this report.

4.4 Privacy

This not only the customer’s concern, but also the producers. In such
an interconnected industry, producers need to collect and analyse data. To the
customer, this might look like a threat to his privacy.

This is not only exclusive to consumers. Small or huge companies who

haven’t shared their data in the past will have to work their way to a more
transparent environment. Bridging the gap between the consumer and the
producer will be a huge challenge for both parties.

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5. ADVANTAGES OF INDUSTRIAL REVOLUTION 4.0

As physical and digital worlds merge, manufacturing processes will change

dramatically in the future. That’s for sure. The German Academy of Science and
Technology says it will be and coined the term “Fourth Industrial Revolution”. It
states that today’s emerging technologies will have a similar effect on our society as
water power and steam engines had at the end of the 19th century (and the succeeding
technology waves that enabled mass production and automation in the 20th century).

Why Industrial Revolution 4.0? It is extremely relevant and increasingly

important in manufacturing for a multitude of reasons.

The reasons why Industrial Revolution 4.0 is important are the benefits. It
helps manufacturers with current challenges by becoming more flexible and making
reacting to changes in the market easier. It can increase the speed of innovation and is
very consumer centered, leading to faster design processes.

Workers can become coordinators at the center of production, possibly

improving the work-life balance of employees. Industrial Revolution 4.0 is
sustainable long-term, assisting in finding solutions for any challenge that arises.

So, why Industrial Revolution 4.0? Because we can help you incorporate it,
and all of these benefits, into your current manufacturing, leading you into a
sustainable and profitable future.

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5.1 Better Workplace

Staff are valued and supported by the addition of technology to

their functional operations. Ergonomic workstations, improved training and
collaboration make for safer and more fulfilling roles that allow for
development within the company.

5.2 Reduced Costs

High levels of automation in Industrial Revolution 4.0 require fewer

people and result in less wasted materials and more efficient operation, with
the effect of a direct lowering of operating costs.

5.3 Higher Productivity

The ability to manufacture different products, at higher speeds and

quality, with improved supply chain and distribution facilities, as well as faster
decision making throughout, allows the Smart Factory to run at much greater
efficiency.

5.4 Rapid Innovation

Experiments and prototyping can be performed quickly and even

virtually using 3D design capabilities. Involving customers, suppliers and
employees in the entire design and production process leads to better decision
outcomes.

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5.5 Customer Satisfaction

Providing the customer with perfect quality at low cost and great
availability, Industrial Revolution 4.0 operation can't help but makes
customers happy. Quick resolution of issues and excellent service ensures that
they won't ever go anywhere else.

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6. SMART FACTORY INDUSTRIAL REVOLUTION 4.0

Smart factory is fully-integrated, collaborative manufacturing systems that

respond in real time to meet changing demands and conditions in the factory, in the
supply network and in customer needs.

The smart factory represents a leap forward from more traditional automation
to a fully connected and flexible system, one that can use a constant stream of data
from connected operations and production systems to learn and adapt to new
demands.

A true smart factory can integrate data from system-wide physical,

operational, and human assets to drive manufacturing, maintenance, inventory
tracking, digitization of operations through the digital twin, and other types of
activities across the entire manufacturing network.

The result can be a more efficient and agile system, less production downtime,
and a greater ability to predict and adjust to changes in the facility or broader network,
possibly leading to better positioning in the competitive marketplace.

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6.1 Characteristics of Smart Factory

Perhaps the most important feature of the smart factory, its connected
nature, is also one of its most crucial sources of value. Smart factories require
the underlying processes and materials to be connected to generate the data
necessary to make real-time decisions. In a truly smart factory, assets are fitted
with smart sensors so systems can continuously pull data sets from both new
and traditional sources, ensuring data are constantly updated and reflect
current conditions. Integration of data from operations and business systems,
as well as from suppliers and customers, enables a holistic view of upstream
and downstream supply chain processes, driving greater overall supply
network efficiency.

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 An optimized smart factory allows operations to be executed
with minimal manual intervention and high reliability. The automated
workflows, synchronization of assets, improved tracking and scheduling, and
optimized energy consumption inherent in the smart factory can increase
yield, uptime, and quality, as well as reduce costs and waste.

In the smart factory, the data captured are transparent which is real-
time data visualizations can transform data captured from processes and
fielded or still-in-production products and convert them into actionable
insights, either for humans or autonomous decision making. A transparent
network can enable greater visibility across the facility and ensure that the
organization can make more accurate decisions by providing tools such as
role-based views, real-time alerts and notifications, and real-time tracking and
monitoring.

In a proactive system, employees and systems can anticipate and act

before issues or challenges arise, rather than simply reacting to them after they
occur. This feature can include identifying anomalies, restocking and
replenishing inventory, identifying and predictively addressing quality issues,
and monitoring safety and maintenance concerns. The ability of the smart
factory to predict future outcomes based on historical and real-time data can
improve uptime, yield, and quality, and prevent safety issues. Within the smart
factory, manufacturers can enact processes such as the digital twin, enabling
them to digitize an operation and move beyond automation and integration
into predictive capabilities.

Agile flexibility allows the smart factory to adapt to schedule and

product changes with minimal intervention. Advanced smart factories can also
self-configure the equipment and material flows depending on the product
being built and schedule changes, and then see the impact of those changes in
real time. Additionally, agility can increase factory uptime and yield by

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 minimizing changeovers due to scheduling or product changes and
enable flexible scheduling.

6.2 Benefits of Smart Factory

The decision on how to embark on or expand a smart factory initiative

should align with the specific needs of an organization. The reasons that
companies embark or expand on the smart factory journey are often varied and
cannot be easily generalized. However, undertaking a smart factory journey
generally addresses such broad categories as asset efficiency, quality, costs,
safety, and sustainability.

6.2.1 Asset Efficiency

Every aspect of the smart factory generates reams of

data that, through continuous analysis, reveal asset performance
issues that can require some kind of corrective optimization.
Indeed, such self-correction is what distinguishes the smart
factory from traditional automation, which can yield greater
overall asset efficiency, one of the most salient benefits of a
smart factory. Asset efficiency should translate into lower asset
downtime, optimized capacity, and reduced changeover time,
among other potential benefits.

6.2.2 Quality

The self-optimization that is characteristic of the smart

factory can predict and detect quality defect trends sooner and
can help to identify discrete human, machine, or environmental
causes of poor quality. This could lower scrap rates and lead
times and increase fill rates and yield. A more optimized

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 quality process could lead to a better-quality product with
fewer defects and recalls.

6.2.3 Lower Cost

Optimized processes traditionally lead to more cost-

efficient processes those with more predictable inventory
requirements, more effective hiring and staffing decisions, as
well as reduced process and operations variability. A better-
quality process could also mean an integrated view of the
supply network with rapid, no-latency responses to sourcing
needs thus lowering costs further. And because a better-quality
process also may mean a better-quality product, it could also
mean lowered warranty and maintenance costs.

6.2.4 Safety and Sustainability

The smart factory can also impart real benefits around

labor wellness and environmental sustainability. The types of
operational efficiencies that a smart factory can provide may
result in a smaller environmental footprint than a conventional
manufacturing process, with greater environmental
sustainability overall. Greater process autonomy may provide
for less potential for human error, including industrial accidents
that cause injury. The smart factory’s relative self-sufficiency
will likely replace certain roles that require repetitive and
fatiguing activities. However, the role of the human worker in a
smart factory environment may take on greater levels of
judgment and on-the-spot discretion, which can lead to greater
job satisfaction and a reduction in turnover.

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7. CONCLUSION

Industrial Revolution 4.0 is definitely a revolutionary approach to

manufacturing techniques. The concept will push global manufacturers to a new level
of optimization and productivity. Not only that, but customers will also enjoy a new
level of personally customized products that may have never been available before.
As mentioned above, the economic rewards are immense.

However, there are still many challenges that need to be tackled systematically
to ensure a smooth transition. This needs to be the focus of large corporations and
governments alike. Pushing research and experimentation in such fields are essential.

While speculations regarding privacy, security, and employment need more

study, the overall picture is promising. Such approach to manufacturing industries is
truly revolutionary.

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