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Industry 4.0 is the vision of the industrial production of the future

When discussing Industry 4.0, we talk about a paradigm shift – but what will this require and how will it affect the way we manufacture, maintain and do business within our industrial systems?

Technology advances have driven increases in industrial productivity since the Industrial Revolution: The introduction of water and steam-driven mechanical factories in the 18th century, their subsequent electrification that led to mass production and finally, the introduction of programmable logic controllers automated the industry in the 1970s. Since then, we have seen incremental industrial advancements, as opposed to a real breakthrough in the sense of true innovation. Now we once again find ourselves in a new wave of technological development.

The introduction of game-changing digital industrial technology, known as Industry 4.0, is dramatically reshaping the manufacturing landscape. Industry 4.0 is based on the concepts of cyber-physical systems, the so-called “Internet of Things” and the “Internet of Services”. Within the smart factory, these cyber-physical systems have multiple tasks: On the one hand, they create a virtual copy of the physical world they represent and monitor actual processes in real-time. On the other hand, however, they not only observe and report, but are also capable of making decentralized decisions. Communication of these systems with the real world, i.e. with human beings, and with other individual units, is established by means of the “Internet of Things”. Last but not least, the “Internet of Services” facilitates participation in and utilization of services along the entire value chain.

Sounds like science fiction? At present, we find ourselves at the beginning of this fourth stage and nobody can predict what the smart factory of the future will look like in detail. However, there are already real-world examples of this new technology advancement.

Hands-on with the smart factory

Presented by SAP at a leading high-tech fair in Germany, the “Open Integrated Factory Showcase”, is an assembly line with a length of just 8.6 meters. At first glance, there is nothing remarkable about it. This impression, however, rapidly changes: First, it is capable of producing two wholly different products on the same line: A remote control or components for smart meters. Furthermore, one of the “products” can be produced in up to 16 different variations – again, all on this one assembly line. How does this work?

In essence, the components themselves have become “intelligent”. Production parameters embedded in the work pieces “know what they are” and can communicate with the assembly line via RFID technology. Being transported section to section, they “tell” the stations what part and variant they are, and request to be processed with the correct method. As a consequence, product variations can be manufactured in any given order and quantity – all on the same production line, thus allowing for lot sizes of 1 to be produced at mass production prices. The essence of Industry 4.0 is reduced unit costs and flexible production by using digital manufacturing methods and processes. This will result in a whole new level of quality in industrial production.