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The better the question. The better the answer.
The better the world works.
INDUSTRY 4.0Why it matters?
Page 2
Agenda
► Industrial Evolution
► 4th Industrial Revolution
► Building Blocks of Industry 4.0
► Potential Industrial Products Implications
► Potential Consumer Products Implications
► Impact of Industry 4.0
Page 3
What is this?
Page 4
What is this?
Page 5
What is this?
Page 6
What is this?
Page 7
Industrial Evolution
4. Industrial
revolution
Based on cyber-physical-
systems
3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production
2. Industrial revolution
Introducing mass production
lines powered by electric
energy
1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
End of the
18th century.
Beginning of the
20th century
Beginning of the
70th
Industry 1.0 Industry 3.0Industry 2.0 Industry 4.0
Levelofcomplexity
Today
Source: DFKI/Bauer IAO
Page 8
Phases of earlier 3 Industrial Revolutions
1. 1760 to 1840 - Ushered in Mechanical production; railways and
steam engine
2. 1870 to 1940 - Mass production; electricity and assembly line
3. 1960 to 2010 - Computers; semi conductors, main frame computing,
personal devices, internet
Page 9
Industry 4.0: Germany
Smart Manufacturing Leadership Coalition: USA
A collective term for technologies and concepts of value chain organization. Based
on the technological concepts of cyber-physical systems, the Internet of Things and
the Internet of Services, it facilitates the vision of the Smart Factory.
Within the modular structured Smart Factories of Industry 4.0, cyber-physical
systems monitor physical processes, create a virtual copy of the physical world and
make decentralized decisions.
Over the Internet of Things, Cyber-physical systems communicate & cooperate with
each other & humans in real time. Via the Internet of Services, both internal & cross-
organizational services are offered & utilized by participants of the value chain.
 Builds on the Digital revolution  Ubiquitous internet
 Smaller & powerful sensors  Artificial Intelligence (AI)
 Machine Learning  Labor & Energy Cost
Page 10
Did not exist in 2006
► iPhone
► iPad
► Kindle
► 4G
► Uber
► Airbnb
► Android
► Android
► Oculus
► Instagram
► Snapchat
► Whatsapp
Page 11
Time to reach 100 Million customers
► Telephone 75 Years
► Web 7 Years
► Facebook 4 Years
► Instagram 2 Years
► Pokemon Go 1 Month
Page 12
Cyber Physical Systems
A cyber-physical system (CPS) is a system of collaborating computational
elements controlling physical entities. CPS are physical and engineered
systems whose operations are monitored, coordinated, controlled and
integrated by a computing and communication core. They allow us to add
capabilities to physical systems by merging computing and communication with
physical processes.
Page 13
Today’s Factory
Page 14
Tomorrow’s Factory
Page 15
Industry 4.0
Six Design Principles
► Interoperability: the ability of cyber-physical systems (i.e. work
piece carriers, assembly stations and products), humans and Smart
Factories to connect and communicate with each other via the
Internet of Things and the Internet of Services
► Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual
plant models and simulation models
► Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
► Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
► Service Orientation: offering of services (of cyber-physical
systems, humans and Smart Factories) via the Internet of Services
► Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules
Page 16
Building blocks of Industry 4.0
Industry 4.0
Autonomous
Robots
Simulation
Horizontal
and vertical
system
integration
Industrial
Internet of
Things
Cyber
Security
Additive Mfg
Augmented
reality
Big data
analytics
Page 17
Impacting all aspect of value chain
Page 18
Digital Enterprise
Entire value chain is digitized and integrated
Page 19
Potential Implications
Robot Assisted production
Predictive Maintenance
Additive manufacturing of complex parts
Machines as a service
Big data drive quality control
Production line simulation
Smart supply network
Page 20
Robots working in Amazon WH
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2013 2014 2015 2016
Page 21
Examples
SIEMENS
Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed
German manufacturing giant Siemens, an industrial user, is
implementing an Industry 4.0 solution in medical engineering. For years,
artificial knee and hip joints were standardized products, with engineers
needing several days to customize them for patients. Now, new software
and steering solutions enable Siemens to produce an implant within 3 to
4 hours.
Page 22
Examples
TRUMPF
Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed
German toolmaker Trumpf, an Industry 4.0 supplier and worldwide market
leader of laser systems, has put the first "social machines" to work. Each
component is "smart" and knows what work has already been carried out
on it. Because the production facility already knows its capacity utilization
and communicates with other facilities, production options are
automatically optimized.
Page 23
Examples
GE
Source:https://www.ge.com/digital/predix
Predix, the operating system for the Industrial Internet, is powering
digital industrial businesses that drive the global economy. By
connecting industrial equipment, analyzing data, and delivering
real-time insights, Predix-based apps are unleashing new levels of
performance of both GE and non-GE assets.
Page 24
Examples of Product evolution: Connected
and smart products
Harvard Business Review
Page 25
Impact
Economy
Business
National
& Global
Society
Individual
Impact
Page 26
Impact
Economy
► Growth
► Ageing
► Productivity
► Employment
► Labour subsititution
► The nature of Work
Page 27
Impact
Business
► Customer expectations
► Data enhanced products
► Collaborative innovation
► New operating models
Combining digital, physical and biological worlds
Page 28
Impact
► National & Global
► Governments
► Countries, regions & cities
► International security
► Society
► Inequality
► Community
► The Individual
► Identity, morality & ethics
► Human connection
Page 29
Top 10 Skills to be relevant in Industry 4.0
Thank YOUPrakash1.singh@in.ey.com

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Industry 4.0

  • 1. The better the question. The better the answer. The better the world works. INDUSTRY 4.0Why it matters?
  • 2. Page 2 Agenda ► Industrial Evolution ► 4th Industrial Revolution ► Building Blocks of Industry 4.0 ► Potential Industrial Products Implications ► Potential Consumer Products Implications ► Impact of Industry 4.0
  • 7. Page 7 Industrial Evolution 4. Industrial revolution Based on cyber-physical- systems 3. Industrial revolution Through the use of electronics and IT further progression in autonomous production 2. Industrial revolution Introducing mass production lines powered by electric energy 1. Industrial revolution Introducing mechanical production machines powered by water and steam End of the 18th century. Beginning of the 20th century Beginning of the 70th Industry 1.0 Industry 3.0Industry 2.0 Industry 4.0 Levelofcomplexity Today Source: DFKI/Bauer IAO
  • 8. Page 8 Phases of earlier 3 Industrial Revolutions 1. 1760 to 1840 - Ushered in Mechanical production; railways and steam engine 2. 1870 to 1940 - Mass production; electricity and assembly line 3. 1960 to 2010 - Computers; semi conductors, main frame computing, personal devices, internet
  • 9. Page 9 Industry 4.0: Germany Smart Manufacturing Leadership Coalition: USA A collective term for technologies and concepts of value chain organization. Based on the technological concepts of cyber-physical systems, the Internet of Things and the Internet of Services, it facilitates the vision of the Smart Factory. Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things, Cyber-physical systems communicate & cooperate with each other & humans in real time. Via the Internet of Services, both internal & cross- organizational services are offered & utilized by participants of the value chain.  Builds on the Digital revolution  Ubiquitous internet  Smaller & powerful sensors  Artificial Intelligence (AI)  Machine Learning  Labor & Energy Cost
  • 10. Page 10 Did not exist in 2006 ► iPhone ► iPad ► Kindle ► 4G ► Uber ► Airbnb ► Android ► Android ► Oculus ► Instagram ► Snapchat ► Whatsapp
  • 11. Page 11 Time to reach 100 Million customers ► Telephone 75 Years ► Web 7 Years ► Facebook 4 Years ► Instagram 2 Years ► Pokemon Go 1 Month
  • 12. Page 12 Cyber Physical Systems A cyber-physical system (CPS) is a system of collaborating computational elements controlling physical entities. CPS are physical and engineered systems whose operations are monitored, coordinated, controlled and integrated by a computing and communication core. They allow us to add capabilities to physical systems by merging computing and communication with physical processes.
  • 15. Page 15 Industry 4.0 Six Design Principles ► Interoperability: the ability of cyber-physical systems (i.e. work piece carriers, assembly stations and products), humans and Smart Factories to connect and communicate with each other via the Internet of Things and the Internet of Services ► Virtualization: a virtual copy of the Smart Factory which is created by linking sensor data (from monitoring physical processes) with virtual plant models and simulation models ► Decentralization: the ability of cyber-physical systems within Smart Factories to make decisions on their own ► Real-Time Capability: the capability to collect and analyze data and provide the insights immediately ► Service Orientation: offering of services (of cyber-physical systems, humans and Smart Factories) via the Internet of Services ► Modularity: flexible adaptation of Smart Factories for changing requirements of individual modules
  • 16. Page 16 Building blocks of Industry 4.0 Industry 4.0 Autonomous Robots Simulation Horizontal and vertical system integration Industrial Internet of Things Cyber Security Additive Mfg Augmented reality Big data analytics
  • 17. Page 17 Impacting all aspect of value chain
  • 18. Page 18 Digital Enterprise Entire value chain is digitized and integrated
  • 19. Page 19 Potential Implications Robot Assisted production Predictive Maintenance Additive manufacturing of complex parts Machines as a service Big data drive quality control Production line simulation Smart supply network
  • 20. Page 20 Robots working in Amazon WH 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 2013 2014 2015 2016
  • 21. Page 21 Examples SIEMENS Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed German manufacturing giant Siemens, an industrial user, is implementing an Industry 4.0 solution in medical engineering. For years, artificial knee and hip joints were standardized products, with engineers needing several days to customize them for patients. Now, new software and steering solutions enable Siemens to produce an implant within 3 to 4 hours.
  • 22. Page 22 Examples TRUMPF Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed German toolmaker Trumpf, an Industry 4.0 supplier and worldwide market leader of laser systems, has put the first "social machines" to work. Each component is "smart" and knows what work has already been carried out on it. Because the production facility already knows its capacity utilization and communicates with other facilities, production options are automatically optimized.
  • 23. Page 23 Examples GE Source:https://www.ge.com/digital/predix Predix, the operating system for the Industrial Internet, is powering digital industrial businesses that drive the global economy. By connecting industrial equipment, analyzing data, and delivering real-time insights, Predix-based apps are unleashing new levels of performance of both GE and non-GE assets.
  • 24. Page 24 Examples of Product evolution: Connected and smart products Harvard Business Review
  • 26. Page 26 Impact Economy ► Growth ► Ageing ► Productivity ► Employment ► Labour subsititution ► The nature of Work
  • 27. Page 27 Impact Business ► Customer expectations ► Data enhanced products ► Collaborative innovation ► New operating models Combining digital, physical and biological worlds
  • 28. Page 28 Impact ► National & Global ► Governments ► Countries, regions & cities ► International security ► Society ► Inequality ► Community ► The Individual ► Identity, morality & ethics ► Human connection
  • 29. Page 29 Top 10 Skills to be relevant in Industry 4.0

Editor's Notes

  • #9: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
  • #10: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
  • #13: CPS benefits: • Safer and more efficient systems • Reduce the cost of building and operating the systems • Build complex systems that provide new capabilities • Reduced cost of computation, networking, and sensing • Enables national or global scale CPS’s
  • #26: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
  • #27: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
  • #28: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
  • #29: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse. Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All. Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.