Factory of the Future
Factory of the future, Industry 4.0, cyber-factory or connected factory: Regardless of what it is
called, this transformation of industry represents a revolution in manufacturing processes based on
new technologies and innovative concepts.
Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing
technologies. It includes cyber-physical systems, the Internet of things, cloud computing and
cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.
Why is it called Industry 4.0?
The industrial revolution in Britain came in to introduce machines into production by the end of
the 18th century (1760-1840). This included going from manual production to the use of steampowered engines and water as a source of power.
This helped agriculture greatly and the term “factory” became a little popular. One of the industries
that benefited a lot from such changes is the textile industry, and was the first to adopt such
methods. It also constituted a huge part of the British economy at the time.
The Second Industrial Revolution
The second one dates between 1870 and 1914 (although some of its characteristics date back to
the 1850) and introduced pre-existing systems such as telegraphs and railroads into industries.
Perhaps the defining characteristic of that period was the introduction of mass production as a
primary means to production in general.
The electrification of factories contributed hugely to production rates. The mass production of steel
helped introduce railways into the system, which consequently contributed to mass production.
Innovations in chemistry, such as the invention of the synthetic dye, also mark such period as
chemistry was in a rather primitive state then.
However, such revolutionary approaches to industry were put to an end with the start of World
War I. Mass production, of course, was not put to an end, but only developments within the same
context were made and none of which can be called industrial revolutions.
The Third Industrial Revolution
Perhaps the third one is much more familiar to us than the rest as most people living today are
familiar with industries leaning on digital technologies in production. However, the third industrial
revolution is dated between 1950 and 1970.
It is often referred to as the Digital Revolution, and came about the change from analog and
mechanical systems to digital ones. Others call it the Information Age too. The third revolution
was, and still is, a direct result of the huge development in computers and information and
communication technology.
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The Fourth Industrial Revolution
The fourth industrial revolution takes the automation of manufacturing processes to a new level
by introducing customized and flexible mass production technologies.
This means that machines will operate independently, or cooperate with humans in creating a
customer-oriented production field that constantly works on maintaining itself. The machine rather
becomes an independent entity that is able to collect data, analyze it, and advise upon it.
This becomes possible by introducing self-optimization, self-cognition, and self-customization
into the industry. The manufacturers will be able to communicate with computers rather than
operate them.
Industry 4.0 Components
Cyber-Physical Systems
As mentioned above, a cyber-physical system aims at the integration of computation and physical
processes. This means that computers and networks are able to monitor the physical process of
manufacturing at a certain process. The development of such a system consists of three phases:
Identification: Unique identification is essential in manufacturing. This is the very basic language
by which a machine can communicate. RFID (Radio-frequency identification) is a great example
of that. RFID uses an electromagnetic field to identify a certain tag that is often attached to an
object. Although such technology has been around since 1999, it still serves as a great example of
how Industry 4.0 operated initially.
The Integration of Sensors and Actuator: This is essential for a machine to operate. The integration
of sensors and actuators simply means that a certain machine’s movement can be controlled and
that it can sense changes in the environment. However, even with the integration of sensors and
actuators, their use was limited and does not allow them to communicate with each other.
The Development of Sensors and Actuators: Such development allowed machines to store and
analyze data. A CPS now is equipped with multiple sensors and actuators that can be networked
for the exchange of information.
The Internet of Things (IoT)
A cyber-physical system still sounds familiar to us today. Machines can exchange data and, in a
lot of applications, can sense the changes in the environment around them. Fire alarms are a good
example of that. The Internet of Things, however, is thought to be what truly has initiated Industry
4.0.
The Internet of Things is what enables objects and machines such as mobile phones and sensors
to “communicate” with each other as well as human beings to work out solutions. The integration
of such technology allows objects to work and solve problems independently. Of course, this is
not entirely true as human beings are also allowed to intervene.
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However, in case of conflicting goals, the case is usually raised to higher positions. According to
Hermann, Pentek, and Otto, ““things” and “objects” can be understood as CPS. Therefore, the IoT
can be defined as a network in which CPS cooperate with each other through unique addressing
schemas.
The Internet of Services (IoS)
It is easy to see that in today’s world each and every electronic device is more likely to be
connected to either another device, or to the internet. With the huge development and diversity in
electronic and smart devices, obtaining more and more of them creates complexities and
undermines the utility of each added device.
Smart phones, tablets, laptops, TVs or even watches are becoming more and more interconnected,
but the more you buy, the added value of the last device becomes unrecognizable. The Internet of
Services aims at creating a wrapper that simplifies all connected devices to make the most out of
them by simplifying the process. It is the customer’s gateway to the manufacturer.
Smart Factory
Smart factories are a key feature of Industry 4.0. A smart factory adopts a so called Calm-system.
A calm system is a system that is able to deal with both the physical world as well as the virtual.
Such systems are called “background systems” and in a way operate behind the scene. A calm
system is aware of the surrounding environment and the objects around it.
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A Transformation of Industry More Than a Revolution
With Industry 4.0, the sector is entering its fourth revolution, characterized by a merging of the
Internet and factories. At each link in the production and supply chains, tools and workstations
communicate constantly via the Internet and virtual networks. Machines, systems, and products
exchange information both among themselves and with the outside. By optimizing production
tools, manufacturers hope to speed up production at a lower cost, and in a more environmentally
sound way.
The main tools needed to implement Industry 4.0 already exist: sensors, controllers, big data, the
Internet of Things, cloud computing… More than a technological revolution, Industry 4.0 is rather
a total reorganization of the mode of production using existing tools and placing greater reliance
on networks. This new generation of factories aims to revive the dynamism of European industry
in several ways: by modernizing production, increasing competitiveness, and positioning
manufacturers to face the challenges of globalization.…
Data is the Keystone of Industry 4.0
Companies that want to leverage industry 4.0 must consider the flow of data both within and
outside the organization. The establishment of a digital thread of information throughout every
department in a company is paramount. It is particularly important to ensure data fidelity in
departments that introduce new data like engineering, procurement, and manufacturing.
If just one crucial portion of data is missing, it breaks the digital thread, and the flow of data stops.
Creating a digital thread of information is commonly pursued for the internal data a company
generates, but what about supplier and partner data? The digital thread MUST extend beyond your
internal operations to encompass supplier and partner data as well.
Engineering data is the perfect example of why high-fidelity information is vital for internal data
and supplier data.
Challenges facing Industry 4.0
Security: Perhaps the most challenging aspect of implementing Industry 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 producer’s money and might even hurt their reputation. Therefore, research in
security is crucial.
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
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huge capital, which alienates smaller businesses and might cost them their market share in the
future.
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
worker. 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.
Privacy: This not only the customer’s concern, but also the producers. In such an interconnected
industry, producers need to collect and analyze data. To the customer, this might look like a threat
to his privacy. This is not only exclusive to consumers. Small or large 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.
DUSTRY 4.0 DESIGN PRINCIPLES
The design principles allow manufacturers to investigate a potential transformation to Industry 4.0
technologies. Based on the components above, the following are the design principles:
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Interoperability: Objects, machines and people need to be able to communicate through
the Internet of Things and the Internet of People. This is the most essential principle that
truly makes a factory a smart one.
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Virtualization: CPSs must be able to simulate and create a virtual copy of the real world.
CPSs must also be able to monitor objects existing in the surrounding environment. Simply
put, there must be a virtual copy of everything.
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Decentralization: The ability of CPSs to work independently. This gives room for
customized products and problem solving. This also creates a more flexible environment
for production. In cases of failure or having conflicting goals, the issue is delegated to a
higher level. However, even with such technologies implemented, the need for quality
assurance remains a necessity on the entire process
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Real-Time Capability: A smart factory needs to be able to collect real time data, store or
analyze it, and make decisions according to new findings. This is not only limited to market
research but also to internal processes such as the failure of a machine in production line.
Smart objects must be able to identify the defect and re-delegate tasks to other operating
machines. This also contributes greatly to the flexibility and the optimization of production.
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Service-Orientation: Production must be customer-oriented. People and smart
objects/devices must be able to connect efficiently through the Internet of Services to create
products based on the customer’s specifications. This is where the Internet of Services
becomes essential.
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Modularity: In a dynamic market, a Smart Factory’s ability to adapt to a new market is
essential. In a typical case, it would probably take a week for an average company to study
the market and change its production accordingly. On the other hand, smart factories must
be able to adapt fast and smoothly to seasonal changes and market trends
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