TO: Lecture 2 Intdustry 4.0

Evolution of Smart Products

Starting from the earliest approaches which enable products to identify themselves via RFID, the products' capabilities to provide information have since evolved dramatically. Today smart products don't only provide their identity, but also describe their status and lifecycle history. They are capable of computing algorithms and machine learning, which makes them adept at processing further steps, including the productions stages resulting in the finished product and also upcoming maintenance operation

Base Technologies

Supporting the 'Smart' dimensions: - Internet of Things (IoT) - Cloud Services - Big Data - Analytics

Sources of Big Data

social media, corporate IT sources, government and NGO, commercial entities, partners, legal documents, media, web, IoT

(Digitalized) Production Workflow

§ A critical role in the modern manufacturing process has been the adoption of digital models in production workflows. § Based on initial engineering plans, sketched by the product designer, drawn by the design team, and prototyped by the testing engineer, the unique digital model's main advantage is that it can be modified any time in a fully digital manufacturing process. § As the collaboration between production teams improves, the prototype will be assimilated quickly into production, and the finished product will be able to hit the market faster. This results in improved products, more rapid time to market, and reduced production costs

Benefits of Smart Manufacturing

§ A smart supply chain system is both self-organizing and self-optimizing. Data from connected sensors in the factory can be integrated with data on user preferences, weather and information on other variables. § Smart supply-chain also uses predictive analytics to monitor the condition of all operating equipment in a firms' factory. If equipment is not performing at an optimal level, an alert can be sent to manager automatically. This means that in many cases a replacement part can be installed before the entire manufacturing process breaks down. Incorporating the smart supply chain into this process is a simple way to achieve even greater improvements. If equipment can detect and monitor an issue with the system and then adjust accordingly, the system's overall lifespan could be extended. § One application of smart supply-chain is also in inventory management. Many retailers apply smart supply chain in inventory management to ensure that the right products are available in the right quantity at any given time. Through smart supply-chain firms can monitor inventory and track goods down to the level each individual item, improving user experience and reducing the cost of the process. One example of such retailer is Uniqlo.

Base Technology: Big Data and Analytics

§ Analytics refers to the use of advanced computing technologies on huge data sets to discover valuable correlations, patterns, trends, and preferences for companies to make better decisions à Firms use big data to improve business decisions by understand patterns and picking up on trends from huge amounts of customer data. § In Industry 4.0, big data plays a role in a few areas including in smart factories, where sensor data from production machinery is analysed to predict when maintenance and repair operations will be needed. § Through application of big data, manufacturers experience production efficiency, understand their real-time data with self service systems, predictive maintenance optimization, and production management automation. § Furthermore, big data can help automate production management. This implies reducing the amount of human input and action needed in a manufacturing facility.

Process vs Discreate Manufacturing

§ In discrete manufacturing firms produce several distinct finished goods which can be easily identified and are composed of different parts, whereby in theory the good/product can be reduced back to its various parts, for instance when it is broken and needs to be recycled. e.g. cars, equipment, clothes § In process manufacturing firms make products that go through some form of processing of various materials that have been used (typically chemical conversion) whereby the finished product is not differentiated and normally cannot be brought back to the various components and materials that were used because of the impact of the processing or refining. e.g. food, cosmetics, paints

Applications of Big Data and Analytics

§ Manufacturers use big data in the same way as most other commercial entities except with a narrower focus. They collect huge amounts of data from smart sensors through cloud computing and IoT platforms that through analytics allow them to uncover patterns that help them improve the efficiency of supply chain management. § Big data and analytics can help firms discover hidden variables causing bottlenecks in production that they didn't even know existed. After identifying the source of the problem, manufacturers use targeted data analytics to better understand the underlying cause of bottleneck variables. This helps manufacturers improve output while reducing cost and eliminating waste. § Production efficiency and assets are everything in the manufacturing industry. The manufacturers' ability to maintain their means of production and keep schedules tight and on track can mean the difference between a good reputation and a bad one. Big data analysis can reduce breakdown and unscheduled downtime by up-to 25%. § Big data and analytics are thus crucial to real-time performance, supply chain optimization, price optimization, fault prediction, product development, and smart factory design.

FE Technologies: Smart Products

§ Smart products refer to products that are integrated into modern production flows and able to self-process, store data, communicate and interact within the industrial ecosystem. § The value of smart products is not only in their physical capabilities but also in the enhanced customer and supply partners' experience. From the earliest stages of engineering and design, every aspect of production is integrated with high quality services in a new category of hybrid products. § Smart products consider the external value-added of the products, when customer information and data are integrated with the production system. Overall, smart products considers technologies related to the firms actual product offering.

Industry 4.0 Basics

- Industry 4.0. is concerned with the development of advanced production systems to increase both productivity and efficiency in firms. Industry 4.0 brings with it new technologies that help add value to the whole product lifecycle from start to finish. - The synonym of Industry 4.0. is Smart Manufacturing or Advanced Manufacturing. This basically means an adaptable system where flexible product lines adjust production processes automatically for multiple types of products and changing conditions. - At best, Industry 4.0 can increase quality, productivity and flexibility and can help firms achieve customized products at a large scale and in a sustainable way with better resource consumption. This is a win-win for all stakeholders involved.

Key Smart Manufacturing Technology

- vertical integration - virtualization - automation - traceability - flexibility - energy management

Key Smart Products Technologies'

Autonomy Connectivity Control Monitoring Optimization

Industry 4.0 Technologies

Front End Technologies Adding value: § Smart Manufacturing § Smart Products Providing efficiency: § Smart Supply-Chain § Smart Working Base Technologies § Internet of Things (IoT) § Cloud Services § Big Data § Analytics

Industry 4.0

"This new industrial stage demands a sociotechnical evolution of the human role in production systems, in which all working activities of the value chain will be performed with smart approaches (Smart Working) and grounded in information and communication technologies (ICTs)"

Reasons for digital transformation

- Automation - Bridging of digital and physical environments - Digital transformation - Evolving industrial and manufacturing technologies - Human, economic and societal evolutions and demands - Industry and manufacturing challenges - Integration of information technology and operational technology - Intensive use of big data and analytics across firms activites

FE Tech: Smart Manufacturing

By definition, manufacturing is the fabrication of goods to be sold and bought, leveraging manufacturing equipment and tools, human labour and a mix of manufacturing processes. Smart manufacturing refers to fully integrated, collaborative manufacturing systems that respond in real time to meet changing demands and conditions in the factory, supply network, and customer needs. Smart manufacturing is enabling the formation of increasingly complex ecosystems where one manufacturing company relies on a number of partners to supply essential components

FE Technologies: Smart Supply Chains

§ Smart supply-chain involves exchanging real-time information about production orders with suppliers and distribution centers. § While smart manufacturing includes intra-logistics processes with technologies for internal traceability of materials and autonomous guided vehicles other technologies are needed to connect factories to external processes (e.g., digital platforms) across the supply-chain. § The tracking of goods can be remotely monitored, maintaining warehousing at optimized levels due to real-time communication with suppliers. For example, by including data such as, weather, firms can seek to reduce unexpected delivery delays (or communicate these in advance to their customers). § Digital platforms can also integrate different factories of the company by sharing real-time information of the operations activities among them. This creates an advanced "dashboard" and monitory system of sorts.

Stakeholders and Smart Manufacturing

§ Smart supply-chain means that products meet the needs of all the firm's stakeholders § At best, the flexible, smart supply-chain decisions, enabled by the human, organizational and technological components of Industry 4.0 can make the difference in gaining competitive benefits and in surviving in a hyper-connected age where the need for speed is high and regardless of the supply chain, performance and speed are crucial (in addition to quality). § For example, just having a smart container is one thing, being able to track what's inside it, where it comes from and in what state it is, is where firms start reaping the benefits of a strategic and holistic approach that looks at the value and customer demand.

FE Technologies: Smart Working

§ Smart working technologies aim to provide better conditions to workers in order to enhance their productivity (and to even provide them remote access to the manufacturing process). § Thus, humans and machines are considered in the Industry 4.0 concept as an integrated socio-technical mechanism. § Through the use of new technologies, such as the operations activities by means of mobile devices, firms can improve the decision-making processes and enhance the transparency of information throughout the manufacturing process. § Virtual tools can be also considered part of smart working since they support the decision-making process. Similarly, collaborative robots are designed for interaction with humans and to support workers activities.

Base Technologies: Cloud Services

§ The Cloud is the key to the success of Industry 4.0, and the element that enables firms to develop a production strategy that is innovative, more effective and efficient, for example, by now leveraging sensors, artificial intelligence and robotics across the manufacturing process. § Cloud services refer to storing and accessing data and programs over the Internet instead of a (physical) hard drive. § Today's cloud technology goes beyond storage and scalability and provides the bedrock for advanced capabilities to flourish; such as real-time data crunching, prediction and AI, continuous learning and machine learning. § No matter what the industry, cloud technology will act as a critical enabler by providing the means for businesses to innovate around new technologies.

Base Technologies: Internet of Things (IoT)

§ The Internet of Things involves adding digital sensors and networking technologies to the devices and systems that we use every day. § IoT revolutionizes manufacturing by enabling the acquisition and accessibility of far greater amounts of data both faster and more efficiently than ever before. Many manufacturers have implemented IoT devices and processes by leveraging intelligent, connected devices inside their factories, warehouses, and workshops. § In most cases, companies are deploying IoT devices and machinery that are connected by communication technologies that assist industries in collecting, monitoring, analysing, and delivering valuable insights to decision-makers. The exact mechanics of how this technology is deployed varies from company to company, but the goal is always the same; to improve operational efficiency through analytics, automation and connectivity. § For instance, by equipping warehouse workers with wearable technology, firms can collect advanced analytical data to gain insights into warehouse efficiency. These valuable insights can help manufacturing firms make faster and better-informed decisions.

Applications of IoT in Industry 4.0

§ The industrial Internet of Things is already improving the manufacturing industry by giving manufacturers more visibility throughout the manufacturing process and by making data immediately available to multiple stakeholders. § The principal idea behind IoT is to make machines smarter and more efficient than human counterparts by constantly collecting, analysing, and acting upon data. With companies now developing cutting-edge sensory technologies to capture data, the retrieved data can be coupled with real-time predictive analytics, artificial intelligence and machine learning to get a better understanding of how machines and production lines are performing. § By utilizing machine learning, systems can be trained to identify potential patterns that could result in a future failure; and if the results are concerning, then it can be automatically reported for further investigation. Such applications can help save companies huge sums of money. § The biggest opportunity for IoT exists in revolutionizing existing legacy infrastructures within industrial and manufacturing processes.

Applications of Cloud Services

§ With artificial intelligence and automation being integrated more frequently into industry, cloud computing is a way for businesses to readily change with the times without losing data. § Cloud tech has unprecedented computing, storage and networking capabilities. Compute services make it so that platforms are capable of merging automation, robotics, and IoT, which contribute to innovative developments in the long run. § The cloud is also a useful collaborative tool that is changing the culture of data management. Firms are now more open to pooling and sharing information, instead of hoarding and concealing it from competitors. This efforts to open up channels of communication will be a benefit for overall industry gain and faster, more refined results. § Cloud computing has infinite storage capabilities. Thus, the more information that is acquired, the greater the need for proper organization in order to make that information accessible and actionable. § The cloud is and will continue to be a way for medium to large industries to surpass competition through innovation.