Industry 4.0: are you ready?

Industry 4.0: are you ready?

Pundits say that we are witnessing the advent of a fourth industrial revolution. They claim the level of connectivity now achieved between systems on the factory floor represents a radical step change in manufacturing. We have advanced beyond the computerisation of the third industrial age birthed in the 1960s and been propelled into what’s being called Industry 4.0.

So, are they right? Is Industry 4.0 a distinct, new era of manufacturing, or is it just the latest marketing buzzword?

It’s hard to deny that we are at the dawn of something tangibly different. The digitalisation of manufacturing processes is transforming production lines. New digital and AI technologies are making it possible for hardware and software systems to not only share data, but also learn from that information exchange and act upon it – all without the need for human input.

For many companies, it is still early days. Some may have dipped a tentative toe in the water by investing in one or two Industry 4.0-ready systems, while others are hanging back, waiting to see how this new era takes shape. But, can they afford to wait?

Machine learning

Accelerating transformation is what distinguishes the fourth industrial revolution from the third. Each addition of an Industry 4.0 device will make a factory progressively smarter. This in turn speeds up the factory’s evolution as these (AI) technologies continue to learn - identifying new ways to eliminate waste, boost productivity and reduce costs. If your competition adopts these digital solutions before you, then they have a head start on that journey of continuous improvement - and they’re gaining speed.  That is not to say there aren’t ways to catch up, but it will be harder.

One interesting aspect of Industry 4.0 is that this isn’t a revolution only accessible to the large industrial giants with their big budgets. In fact, if anything, these digital technologies help to level the playing field for small and medium-sized companies. Unencumbered by lots of bureaucracy and legacy systems, they have the agility to jump on these technologies and adopt new digital business practices, outpacing traditional business models. There are some great examples of this if we take a look at other sectors. Think of Uber and Airbnb – initially small companies using digital technologies to break into markets dominated by long-established business models, and ultimately lead the transformation of those markets.

What to check for

In a recent global study by Deloitte only 20% of manufacturing organisations surveyed described themselves as being highly prepared for Industry 4.0.

Even if not making the full jump to Industry 4.0 now, it makes sense that Industry 4.0 readiness should be a consideration in every equipment purchase going forward - any investment in new technology is in a solution designed to meet future, Industry 4.0 requirements; as well as current needs.

A note of caution though. The term Industry 4.0 is applied liberally to new technologies launched on the market. Few companies will admit their product isn’t Industry 4.0 compatible. To check if they are truly Industry 4.0 ready, here are three areas to look at:

Connectivity – How easily does the device communicate with other systems? A smart factory machine will be built around open interfaces and protocols. In order to be future-proof it needs to be able to communicate with any systems added to the network in years to come. What you don’t want is a device that requires a specific cable or proprietary protocol or needs to connect with pre-selected software programmes.

Processing power – It′s hard to say what requirements Industry 4.0 solutions will have of existing machines but one thing is certain – processing power will be one of them. If a machine can barely manage the task it was designed to handle, how can it deal with future industry 4.0 requirements? So, the time for underpowered embedded control systems is over.

Open architecture – If you haven′t decided to go for a complete industry 4.0 solution yet, your priority is to ensure that your equipment purchases do not lock you out of a future system. Thus, key questions are: Is the (software) architecture open? Is the system one that you can continue to add applications and features to in the future? Do you have direct access to your device data in an open format? You should also look at your supplier. Are they trying to lock you into their ecosystem or are they embracing open interfaces and collaboration with other companies and giving you all the tools to integrate their solution with future systems?

Clearly, any new system should meet our needs today. It has to improve efficiency, boost productivity and reliably deliver a high performance. But today, it’s increasingly important that any new system is ready for Industry 4.0 connectivity and machine learning. This year, manufacturers in Germany alone are expected to invest US $150 billion to integrate Industry 4.0 into their business operations.

The transition to smart factories is inevitable. Industry 4.0 is coming. Are you ready?