The goal of our last article was to focus on the deep changes that our world has been going through. We have shown and understood that old patterns, more or less reasoned methods, have probably become old, obsolete and above all harmful and uneconomic.
Changes in the “game” are so important that today we are right in the middle of a revolution, an industrial revolution.
The fact that we are in an industrial revolution must not frighten you, mankind has already successfully managed three industrial revolutions after all.
Industrial revolutions
The first one happened in England towards the end of 1700, and defined the transition from producing through human/animal physical strength to machines that operated on steam.
In 1850 we went through the second industrial revolution (in Italy this happened about 30 years of delay), technology was greatly improved, electricity was made available and with this, all sectors (electrical, metallurgical, chemical, transport, medicine) gained huge benefits.
Towards 1950, scientific discoveries led to the birth of electronics and information technology, revolutionizing each industry in an unimaginable way and bringing into the houses of everybody tools of extraordinary automated computing power with almost unlimited possibilities.
It was not so long ago, little time has passed indeed, but the third revolution seems light years away, so far away that all the experts in the industrial sector agree that we are right in an era called Industry 4.0, the fourth industrial revolution in human history.
Of course, if we survived the first three, all makes me think that we will survive this one, but surely the reaction times that are required today are much faster than the ones needed in the past, and since I don’t think dramatizing or wondering why the fourth revolution has just happened is useful to anyone, I would recommend starting to analyse the new rules of the game and to plan a strategy that will allow us to grasp the unlimited opportunities that hide in this new historical period called Industry 4.0.
The birth of Industry 4.0
The term Industry 4.0 was used for the first time in 2011 in Germany, where a group of professors, experts in industrial issues, gathered at the Hanover Fair to discuss how to bring back the German manufacturing industry to the top of global competition.
In April 2013, after the work of these experts, the report “Securing the future of German manufacturing industry – Recommendations for implementing the strategic initiative INDUSTRIE 4.0” was published, with the German research ministry included as a sponsor.
Nearly 90% of manufacturing activities over the last decades have been supported by ICT (Information Communication Technology).
With the constant evolution of computers, the arrival of smart devices (smartphones and tablets), the unstoppable growth of the Internet and the tendency to provide IT infrastructures and services through intelligent networks (cloud services), we are getting closer to a world where the information is everywhere and always available.
In other words, next to the physical world we have been using for thousands of years there is now a new world, the virtual world (also known as cyberspace) that is constantly blending and interacting with the physical world, thus giving rise to what Industry 4.0 calls the Cyber Physical System (CPS).
Today, the interconnection between information, objects and people takes the name of the Internet of Things and Services.
The concept of the cyber-physical system combined with the concept of the Internet of Things and Services is the foundation upon which the fourth industrial revolution is based and thus represents the new rules of the game to be applied in our companies.
You may understand that for us mere mortals, who sometimes have difficulty to move in physical space, thinking about cyberspace or virtual space could be a bit disquieting.
In fact, as always, it’s just about having time to digest new concepts, to familiarize with new possibilities through practice, step by step, and with intelligence and strategy we could bring our companies in the future, thanks to the best approach to Industry 4.0.
The goals
The basic idea is to apply the Internet of Things and Services to our companies and create networks that incorporate the entire production process, converting companies into smart environments.
The cyber-physical production system is not interested in production only, but sees the company as a tightly interlaced system that influences machinery, warehouses, production structures, marketing, logistics and services. Doing this will make it easier to have a more flexible production and continuous process control.
Industry 4.0 focuses on creating smart products, processes, and processes.
The smart company is able to handle complexity, is less susceptible to unexpected events and is prepared to produce products/services efficiently.
Within the smart company, humans, machines and resources communicate naturally with one another as a functioning network.
Smart products know the details of how they were produced and for what purpose they were created.
For example, a smart product contains information to answer the question “When was I produced?” or “what configurations were used to produce me?” or rather “where should I be delivered?” and many others. The vision of Industry 4.0 is not limited to the boundaries of the company itself, but as the future will lead to smarter mobility and smarter logistics, the company will soon be a piece of the puzzle of the smart interconnected infrastructure of tomorrow.
Towards change
The change required by this fourth industrial revolution is undoubtedly long-term, certainly to be divided into small steps, but to be addressed immediately, with a vision to the future as well as with strong conviction and determination. Technological development does not wait anybody, and it’s easy to remain behind.
It is easy to imagine that we will not find ourselves in front of an on/off switch, but a transition phase in which the new will flank the old, a transient and parallel phase where, without overlooking the certainties offered by the existing production system, will be identified and implement migration strategies toward the new one.
How will things work with Industry 4.0?
“Engineerization”, planning, production and logistics are areas that are designed to considerably increase existing standards and this will improve the robustness and flexibility of companies at the same time.
We will witness the creation of continuous and constant iterations among smart companies that exchange information in dynamic, optimized way and in real time.
The information will be self-organized and exchanged based on parameters such as cost, availability, and resource consumption.
Everything will rotate around production resources (machines, robots, conveyors, warehouses) that will be autonomous, capable of self-controlling or setting when certain conditions occur through sensors and through connection to the planning and management system.
The smart company, besides being perfectly embedded in a larger network where it is in communication with other companies, will make its production process more manageable by people working there, in order to make production more attractive, sustainable and profitable.
Smart products will be uniquely identifiable and easy to find all the time even during the production phase.
In the future, you will also be able to enter your individual customer’s requests in the design, production, planning and order activities of the last minute.
The smart company will be designed to be able to produce very small orders while preserving profit margins.
According to Industry 4.0, therefore, workers will have to control, adjust, and configure production resources based on the context to be achieved and, in many cases, to be freed from routine activities and allowed to focus on creative and value-added activities.
Employees will also play a key role in quality control.
Industry 4.0 also considers that flexible work will give workers the opportunity to better match their professional duties with their personal needs.
Another change necessary to ensure that the gigantic data exchange among smart companies can take place, as theorized by Industry 4.0, is an increase in the quality of the Internet and broadband service.
Finally, the connection of smart production, smart logistics, smart products, increased use of the Internet of Things and Services in production, will transform the iterations among companies, leading to the birth of new business models, new business opportunities and new social infrastructures in the workplace.
In this article we found out what Industry 4.0 really means, understanding what’s behind it and its goals.
As we have already said, we are not talking about an on/off switch, but a long-term path which has already begun, which is evolving, and waits for nobody.
In the next article we will see concrete examples of Industry 4.0 and we will try to imagine together how to evolve as the joinery of the future.
Until next time,
Stefano Frignani