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What is Industry 4.0, Working Principles, Its Impact on Industries in India & rest of World


We’re in the midst of a significant transformation regarding the way we produce products thanks to the digitization of manufacturing. This transition is so compelling that it is being called Industry 4.0 to represent the fourth revolution that has occurred in manufacturing. From the first industrial revolution (mechanization through water and steam power) to the mass production and assembly lines using electricity in the second, the fourth industrial revolution will take what was started in the third with the adoption of computers and automation and enhance it with smart and autonomous systems fueled by data and machine learning. It is also known as the Era of Smart Manufacturing.

Evolution journey of Industry’s Revolution 1.0 to Industry 4.0
For centuries, goods including food, clothing, houses and weaponry were manufactured by hand or with the help of work animals. By the beginning of the 19th century, though, manufacturing began to change dramatically with the introduction of Industry 1.0, and operations rapidly developed from there. Here is an overview of that evolution.

Phase-1: Industry 1.0
In the 1800s, water- and steam-powered machines were developed to aid workers. As production capabilities increased, business also grew from individual cottage owners taking care of their own — and maybe their neighbors’ — needs to organizations with owners, managers and employees serving customers.

Phase-2: Industry 2.0
By the beginning of the 20th century, electricity became the primary source of power. It was easier to use than water and steam and enabled businesses to concentrate power sources to individual machines. Eventually machines were designed with their own power sources, making them more portable.
This period also saw the development of a number of management programs that made it possible to increase the efficiency and effectiveness of manufacturing facilities. Division of labor, where each worker does a part of the total job, increased productivity. Mass production of goods using assembly lines became commonplace. American mechanical engineer Frederick Taylor introduced approaches of studying jobs to optimize worker and workplace methods. Lastly, just-in-time and lean manufacturing principles further refined the way in which manufacturing companies could improve their quality and output.

Phase-3: Industry 3.0
In the last few decades of the 20th century, the invention and manufacture of electronic devices, such as the transistor and, later, integrated circuit chips, made it possible to more fully automate individual machines to supplement or replace operators. This period also spawned the development of software systems to capitalize on the electronic hardware. Integrated systems, such as material requirements planning, were superseded by enterprise resources planning tools that enabled humans to plan, schedule and track product flows through the factory. Pressure to reduce costs caused many manufacturers to move component and assembly operations to low-cost countries. The extended geographic dispersion resulted in the formalization of the concept of supply chain management.

Phase-4: Industry 4.0
In the 21st century, Industry 4.0 connects the internet of things (IOT) with manufacturing techniques to enable systems to share information, analyze it and use it to guide intelligent actions. It also incorporates cutting-edge technologies including additive manufacturing, robotics, artificial intelligence and other cognitive technologies, advanced materials, and augmented reality, according to the article “Industry 4.0 and Manufacturing Ecosystems” by Deloitte University Press.

The development of new technology has been a primary driver of the movement to Industry 4.0. Some of the programs first developed during the later stages of the 20th century, such as manufacturing execution systems, shop floor control and product life cycle management, were farsighted concepts that lacked the technology needed to make their complete implementation possible. Now, Industry 4.0 can help these programs reach their full potential.
Industry 4.0 optimizes the computerization of Industry 3.0
When computers were introduced in Industry 3.0, it was disruptive thanks to the addition of an entirely new technology. Now, and into the future as Industry 4.0 unfolds, computers are connected and communicate with one another to ultimately make decisions without human involvement. A combination of cyber-physical systems, the Internet of Things and the Internet of Systems make Industry 4.0 possible and the smart factory a reality. As a result of the support of smart machines that keep getting smarter as they get access to more data, our factories will become more efficient and productive and less wasteful. Ultimately, it's the network of these machines that are digitally connected with one another and create and share information that results in the true power of Industry 4.0.

Brief History about Name “Industry 4.0”
The term "Industry 4.0" was revived in 2011 at the Hannover Fair. In October 2012 the Working Group on Industry 4.0 presented a set of Industry 4.0 implementation recommendations to the German federal government. The Industry 4.0 workgroup members are recognized as the founding fathers and driving force behind Industry 4.0.
On 8 April 2013 at the Hannover Fair, the final report of the Working Group Industry 4.0 was presented. This working group was headed by Siegfried Dais (Robert Bosch GmbH) and Henning Kagermann (German Academy of Science and Engineering).
As Industry 4.0 principles have been applied by companies they have sometimes been re-branded, for example the aerospace parts manufacturer Meggitt PLC has branded its own Industry 4.0 research project M4

The Design Principles of Industry 4.0

This manufacturing concept is based on 4 key principles, aimed at ensuring that all manufacturing processes are computerized.
These include:

This refers to the ability of machinery and related components to connect and communicate with each other through the Internet either through Internet of Things (IoT) or Internet of People (IoP).

Transparency in information
This principle requires that information systems should be able to create virtual copies of the physical world by configuration of digital data into sensor data. For this to be achieved, raw sensor data has to be aggregated with compatible context data.

Technical assistance
This concerns the ability of the systems to support humans through comprehensive aggregation and visualization of information for better decision-making and quick solutions to problems. Technical assistance also focuses on the ability of cyber-enabled systems to physically support human resources by handling various tasks, which are considered time-consuming, harmful and exhausting to people.

Decentralization of decisions
This principle refers to the ability of cyber-enabled systems to independently come up with decisions and carry out their dedicated functions. This can only be changed in the event of interferences or conflicts with the intended goals, which may require some tasks to be handled at other levels. It helps lot in case of mass manufacturing.

Industry 4.0 applications today

While many organizations might still be in denial about how Industry 4.0 could impact their business or struggling to find the talent or knowledge to know how to best adopt it for their unique use cases, several others are implementing changes today and preparing for a future where smart machines improve their business. Here are just a few of the possible applications:
Identify opportunities: Since connected machines collect a tremendous volume of data that can inform maintenance, performance and other issues, as well as analyze that data to identify patterns and insights that would be impossible for a human to do in a reasonable timeframe, Industry 4.0 offers the opportunity for manufacturers to optimize their operations quickly and efficiently by knowing what needs attention. By using the data from sensors in its equipment, an African gold mine identified a problem with the oxygen levels during leaching. Once fixed, they were able to increase their yield by3.7%, which saved them $20 million annually.
Optimize logistics and supply chains: A connected supply chain can adjust and accommodate when new information is presented. If a weather delay ties up a shipment, a connected system can proactively adjust to that reality and modify manufacturing priorities.
Autonomous equipment and vehicles: There are shipping yards that are leveraging autonomous cranes and trucks to streamline operations as they accept shipping containers from the ships.
Robots: Once only possible for large enterprises with equally large budgets, robotics are now more affordable and available to organizations of every size. From picking products at a warehouse to getting them ready to ship, autonomous robots can quickly and safely support manufacturers. Robots move goods around Amazon warehouses and also reduce costs and allow better use of floor space for the online retailer.
Additive manufacturing (3D printing): This technology has improved tremendously in the last decade and has progressed from primarily being used for prototyping to actual production. Advances in the use of metal additive manufacturing have opened up a lot of possibilities for production.
Internet of Things and the cloud: A key component of Industry 4.0 is the Internet of Things that is characterized by connected devices. Not only does this help internal operations, but through the use of the cloud environment where data is stored, equipment and operations can be optimized by leveraging the insights of others using the same equipment or to allow smaller enterprises access to technology they wouldn’t be able to on their own.
While Industry 4.0 is still evolving and we might not have the complete picture until we look back 30 years from now, companies who are adopting the technologies realize Industry 4.0's potential. These same companies are also grappling with how to upskill their current workforce to take on new work responsibilities made possible by Internet 4.0 and to recruit new employees with the right skills.
How is India preparing for Industry 4.0?
India is keen on adopting Industry 4.0 and has taken several initiatives. According to IBEF, the Government of India plans to increase the contribution of manufacturing sector to 25% of Gross Domestic Product (GDP) by 2025, from the current level of 16%. India is also prepared to face global competition by undertaking the Make in India programme. It is all set to lead the world with Smart Manufacturing.

The heavy industries and public enterprises ministry are facilitating the establishment of four centres in the country to help SMEs implement Industry 4.0
India’s first Smart factory is being set up at Bengaluru. This smart factory powered by data exchange in manufacturing and the Internet of Things (IoT). This Smart Factory is being developed at the Indian Institute of Science’s (IISc) Centre for Product Design and Manufacturing (CPDM) with funding from The Boeing Company.
Andhra Pradesh government aims to turn the state into an Internet of Things (IoT) hub by 2020. The state government plans to set up 10 IoT hubs with the participation of the private sector which will create 50,000 direct employment in various IoT verticals.
India should adopt smarter strategies for Smart manufacturing

Currently, India has adopted smart manufacturing i.e. industry 4.0 revolution in the following sectors:

a) FMCG Sector: The Indian FMCG sector has started deploying Cobot or Collaborative Robots in their manufacturing process. Cobots are industrial robots that work alongside workers in a factory and require minimal supervision.

b)   Telecom Sector: Vodafone Business Services provides smart IoT solutions for connectivity across the range of verticals such as industrial manufacturing, automotive, healthcare, smart city, and utility management.

c)    Healthcare Sector: Diabetacare’s smart glucometers is a classic example to demonstrate how patients can manage their diabetes better using IoT In the healthcare sector. IoT is making its presence felt in healthcare by connecting devices. This helps patients to keep track of their blood sugar, blood pressure etc.
However, to leverage the best that technology has to offer us, India must embrace Industry 4.0. Industry 4.0 has just started making inroads in Indian manufacturing and other sectors. Data-based decision making is also being adopted across industries. While certain steps have already been taken there is a lot more that remains to be done. There needs to a shift in mindset before there is a shift incapacity. Instead of just undertaking more capital expenditure, the focus should be on enhancing the existing asset base. Adopting Smart manufacturing, analytics and IoT will give a new lease of life to industrialisation in India. Apart from policy implementation hurdles, one major bottleneck is lack of skilled labour or fear of job losses owing to Robotics & Automation. A smart strategy to counter this is to upskill workers and millennials in these fields and create more jobs.

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