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What is Industry 4.0 and how it works?

Estimated reading time: 7 minutes

The industrial revolution led to massive advances like the first steam machine and railroads, the mechanized processes. Then with the discovery of electricity, gas, and oil, the second industrial revolution started, which gave us developments like mass production, cars, and the telephone. The third industrial revolution consisted of the use of computers and nuclear energy. This era brought the use of electronics, robotics, and better automation of production.

Now terms like Artificial Intelligence, Cloud Storage, and Digital Simulators are used more frequently in the manufacturing industry. These new tools transform the manufacturing business, leading to what some call “The 4th Industrial Revolution”.

But what does this exactly mean? How does it work? What are the benefits? Let’s find out.

What is Industry 4.0?

Industry 4.0, often known as the Fourth Industrial Revolution (4IR), is the digitalization of manufacturing.

Unlike the Third Industrial Revolution, which only introduced the use of computers in manufacturing for automating and production, 4IR syncs all computers, devices, and processes of every area of your business, making streamlined information and communication easier. As a whole, Industry 4.0 focuses on the interconnectivity of activities, data, and resources with the help of digital assets.

The goal of Industry 4.0 is to have a holistic integration of processes through automation and the proper use of digital technology to add value to your company, transforming it into a “smart factory”. These digital resources include the Internet of Things (IoT), Artificial Intelligence (AI), Digital Twins, Software, and more.

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How does it work?

Internet of Things (IoT):

Internet 4.0 uses this rapidly growing system that is an interlocking network of computers, computing devices, machines, resources, and employees by sensors that self-report and cover data in real-time through their unique identifiers (UIDs) on the Internet or a private connection.

Sensors play an important role in IoT. These detect changes in the environment and respond to them. The most common sensors are:

  • Temperature sensors
  • Humidity sensors
  • Pressure sensors
  • Proximity sensors
  • Infrared sensors
  • Gyroscope sensors
  • Level sensors
  • Gas sensors
  • Optical sensors

The information collected by IoT sensors allows industries of all kinds to analyze data and help prevent scenarios without human intervention. For example, a temperature sensor can dictate when a machine needs maintenance, a proximity sensor can tell when livestock is moving away, or a humidity sensor can tell the agricultural sector what action to take in the event of rain.

Use of Artificial Intelligence (AI)

This tool allows manufacturing companies to use and leverage the data profitably obtained by the IoT to make a company more efficient. With machine learning generated by AI, it is possible to visualize areas of growth opportunities more efficiently, perform predictive maintenance and, avoid bottlenecks, streamline processes in different work departments through the use of algorithms generated by the information gathered.

Digital Twin

It is the accurately digital recreation of an object, process, or service that is used to perform simulations and to analyze, monitor, and predict how they would work with changes before applying them in the physical world and thus prevent failures. A digital twin is developed by a computer program using real-world data and operational data collected by IoT and AI.

NASA, for example, develops digital twins to simulate operations in space and find out if they will work without wasting the resources that would be needed to do it physically. In manufacturing, you can test process changes and their effectiveness, prevent problems, or see if a product will work, for example, in manufacturing a car. By performing a digital twin, you can save time, money, and the power to make more accurate decisions.

Cloud Computing

Industry 4-0 uses this platform that allows the use of different services through the Internet, such as tools, applications, servers, software, and storage of information obtained by IoT, AI, or manually. You can easily access them anywhere and anytime instead of using a physical hard drive or a computer.

Cloud computing reduces physical storage costs and increases productivity and security. The cloud can be either public with payment from an online provider (Google Drive or Dropbox, as examples) or private that provides the service to a limited number of people. There is also a hybrid click that combines elements of both.

Edge Computing

It allows the use of the data generated by the IoT in a much more effective way by bringing them closer to the point that produces the information. In other words, Edge Computing creates a compressed copy of this data instead of using cloud access to obtain the information. It then brings it closer to receiving human review by professionals in the area where it was generated.

Cybersecurity

Today, cybersecurity is essential in any industry that wants to adapt and use Industry 4.0. By having equipment, software, and processes connected to the same network, it is crucial to have cybersecurity to prevent malware or malicious attacks for espionage, sabotage, or theft.

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How can Industry 4.0 improve your company?

Industry 4.0 is a significant investment but one that is very profitable. There are many benefits your company can get by the use of digitals technologies, such as:

  • Boosts Productivity and Efficiency:
    Industry 4.0 implements the use of transparent information flow access and the creation of digital scenarios that help to predict threats and prevent downtime. Using simulators gives, as a result, less probability of bottlenecks, problems with equipment, and better management of resources.
  • Reduces Costs:
    Industry 4.0 real-time monitoring helps reduce operation mistakes and optimize lead time in manufacturing by avoiding repetitive tasks. Simulation scenarios can also analyze if a product or a process will succeed, preventing wasting physical resources and money.
  • Better Management of Supply Chain:
    Logistics tasks get more organized and straightforward thanks to Industry 4.0. Your company gets a better view of every supply chain process, making it more agile and more accessible to catch errors, improving the ability to react to last-minute changes.
  • Enhances communication between areas:
    The use of real-time information will make collaboration between departments less complicated regardless of time zones and location, thanks to Industry 4.0. It also helps decision-making to be more assertive.
  • Improves Customer Experience:
    With better use of time, information, and a more precise panorama, your company will have fewer problems with product availability and delivery. In case of a problem, with Industry 4.0, you can easily track the source of it and fix the issue quickly. In addition, it can even predict future orders, enhancing the satisfaction of your customers.

Start the Digital Journey of your Company

An ERP and MES software that can be easily customized, like Skyplanner APS, are the first steps to introducing your company into the world of Industry 4.0. Our team will assist your company in adapting to new digital technologies like IoT, Cloud Computing, AI, and more.

Learn more about how we can help your company to be more competitive and start to prepare for the new digital era.

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