What is Industry 4.0 and How Has It Changed Manufacturing?

Industry 4.0 isn’t just a buzzword. The fourth industrial revolution is officially here. We’re truly in a time of significant change when it comes to how we manufacture products. The digitization of manufacturing processes have transformed production speed, cost, safety, capabilities and all-around efficiency.  

The need for connectedness and access to the latest insights across an entire organization has led to a manufacturing revolution focused on interconnectivity, automation, machine learning and acquiring real-time data. While every manufacturing organization is different, they all have the common goal of working faster and smarter, and Industry 4.0 technologies are helping them innovate new ways to do that every day. 

So what is Industry 4.0 all about, how is it different from existing manufacturing processes, and who can benefit from adopting these technologies? Let’s start with a definition.

What is Industry 4.0?

A simple Industry 4.0 definition is that it’s a widespread shift toward utilizing cyber-physical systems to optimize how we’re able to manufacture products. 

The first industrial revolution occurred around the turn of the 19th century. Until that time, manufacturing primarily relied on manual labor performed by people and work animals. This first revolution added more power to processes by introducing steam-powered engines and other water-driven machine tools. 

Around a century later, factories saw a vast uptick in productivity with the onset of electricity and the use of steel. Having electricity in factories allowed for more efficiency and made machinery more mobile. It also allowed for more operating hours. It was during this second industrial revolution that concepts like mass production and assembly lines came to be. 

In the late 1950s, a third wave emerged. This phase saw more and more use of electricity to power and optimize production capabilities, which evolved into the use of computers, which then evolved into incorporating automation. This huge leap saw manufacturers putting less emphasis on analog and mechanical technology and more on digital technology and automation software. 

Today, the Industry 4.0 manufacturing revolution has built off the 3.0 wave, taking the digital technology focus of recent decades to a new level. Industry 4.0 is a more comprehensive approach to manufacturing that bridges the physical and digital. These technology advancements better connect business owners to their operations, employees to other departments and solutions to problems for a level of efficiency never seen before. 

How Industry 4.0 Technologies are Changing Manufacturing

While there are many technologies paving new paths in the digital manufacturing space, the following are some of the most impactful.

• IoT stands for Internet of Things, which refers to the connection between physical objects and the internet. 
• IIoT (Industrial Internet of Things) pertains to the connection between people, data, and machines related to manufacturing. 
• Smart factories are considered factories that utilize Industry 4.0 technologies and solutions. 
• ERP (enterprise resource planning) solutions are business process management tools intended to streamline operations. 
• AI & Machine Learning is the concept of artificial intelligence involving programming a computer to be able to perform tasks that historically have required some level of human intelligence. 
• Cyber-physical systems refers to an Industry 4.0 manufacturing environment that includes real-time data collection, analysis and visibility across every aspect of the operation. 
• Cloud computing uses interconnected remote, internet-hosted servers to store, manage and process information. 

Industries Utilizing Industry 4.0

The utilization of Industry 4.0 technology, solutions, and approaches spans many diverse industries. It’s primarily growing rapidly within these fields.

Industrial Manufacturing

In the case of industrial manufacturing, we see these advancements being used across every business area. For example, every machine within a factory is attached to an IoT device that monitors its production efficiency, usage, uptime and more. That data can be used with a machine-learning algorithm to determine which machines are causing production bottlenecks, allowing manufacturers to address machine issues preventively. 

Pharmaceuticals & Medical Devices

Life sciences fields are also changing. Now, medical devices like glucose monitoring systems, EKG monitors and automated insulin pumps can be portable. That means patients can live their lives while keeping an eye on their health from anywhere instead of having to make frequent hospital trips. 

Food & Beverage

A rise in food regulation and customer demand trending toward healthier, more sustainable food have those in the Food & Beverage industry turning to advanced technology. Robotic process automation has greatly improved quality control, IIoT temperature sensors increase supply chain visibility to ensure food and raw materials are kept at the appropriate temperature, and predictive analytics solutions help cut emissions, energy use and wasted resources. 

Technology & Electronics

Electronics assembly is one of the largest industries in the world. The broader Technology & Electronics industry is under pressure to constantly innovate and drive sales. AI systems can optimize production schedules and machine and line performance optimization systems that use sensor data to improve machine performance and product quality. 

Consumer Products

Industry 4.0 is helping consumer products developers be more competitive. Products that are highly customized and detailed aren’t easy to assemble. Their advanced capabilities require advanced IT. Now, those in Consumer Products can deliver higher customer centricity to make their company stand apart and address change requests rapidly. 

Packaging

When it comes to the packaging industry, today’s technology can improve traceability, uptime, and quality, while also reducing costs and total cost of ownership. A lot of this depends on the seamless exchange of data between devices and systems. This data is crucial in evaluating how lines are running. 

The principles of Industry 4.0 are relevant to the entire manufacturing industry, with solutions like manufacturing ERP systems transforming the way companies are able to operate. With these advancements in the ability to significantly streamline operations, we’re bound to see profound innovation in these industries over the next decade. 

Benefits of Industry 4.0

Industry 4.0 tools span the full product life cycle and supply chain. Design, sales inventory, scheduling, quality, engineering, customer service — there’s nothing it doesn’t touch. Primary benefits include:

• Enhanced productivity: Automation and optimization allow manufacturers to stay competitive against disruptors.
• Improved working conditions: Personnel can be better leveraged, collaboration is increased across departments and a younger workforce will apply.
• Greater agility: Real-time data, predictive analytics, internet-connected machinery, and automation can help you work more proactively and adapt to change more rapidly.
• Better quality: A variety of Industry 4.0 tools can increase quality control and provide higher-quality and more consistent products.
• A real-time supply chain: With real-time data, you can make smarter and faster decisions about your business. 

Who Can Benefit From Industry 4.0?

How can you know if incorporating Industry 4.0 technologies is right for your business? Ask yourself:

• Do you want better visibility across your supply chain?
• Do you want to be able to identify issues before they get out of hand?
• Do you want more timely analytics?
• Do you want to improve product quality?
• Do you want real-time data that can help you make more strategic decisions?
• Are you competing with tech-savvy peers?
• Do you want to boost efficiency, productivity and revenue?
• Are you trying to attract a younger workforce?
• Does your organization need better communication and collaboration?
• Do you want to digitize your information and make it easier to access?

These are all signs that you would benefit from such solutions. One 4.0 tool that can make a big impact quickly is the use of a manufacturing ERP system. An enterprise resource planning system can get your inventory, planning, financial, customer relationships, supply chain management, and production functions in shape, connecting every area of your operation so you’re not having to make high-stake decisions in a vacuum. 

Learn more about QAD’s adaptive ERP and supply chain solutions built in the cloud to help manufacturers be more adaptive and competitive in this quickly changing market.