Industry 5.0 The Next Industry Revolution?
Paul Adams, PMP, CSCP, CPIM, CLTD
Smart Manufacturing | Digital Transformation | Customer Success | Product Management | Program Management | Strategic Planning
The world recently said goodbye to Gordon Moore, the legendary co-founder of Intel who coined Moore’s law. Moore's Law (for those not already familiar with it) is an observation?that the number of transistors on a microchip doubles approximately every two years. The law purported that we can expect the speed and capability of our computers to increase every two years as a result of this advancement in technology and production, and as a result we pay less for these advancements. As technology has continued to move forward at an exponential pace, we actually have more power in our smart phones today than the astronauts had onboard their spacecraft in the 60s and 70s. This progress has benefited everyone in the global economy for decades.
In the manufacturing world the advances in technology have been no less amazing. It’s safe to say that manufacturing is entrenched in Industry 4.0 (I4.0) and now some analysts are already talking about Industry 5.0 (I5.0). In my opinion we are still in the early innings of I4.0 in terms of providing value for manufacturers. Let’s examine the evolution of Industry from 1.0 to 5.0 to better understand where we are today and what the future might hold for manufacturing.
The Industrial Revolution in four parts
Industry 1.0
The Industrial Revolution 1.0 began in the 18th century, covering the period between 1760 to 1840. The technology that was developed (primarily steam and waterpower) spawned improved methods for producing and distributing goods, thus making life easier for large segments of the population. The mechanization of factories meant that goods could be produced faster and more economically. As a result, demand for such goods significantly increased during this period.
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Industry 2.0
During this time (approximately 1850 to 1940) electricity was adopted as an energy source along with the invention of the telegraph and the expansion of railroads. The latter two developments made the world appear much smaller by reducing the time it took to transport goods and information. This allowed for even greater production and more sophisticated machine development.
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Industry 3.0
It began with the first computer era. These early computers were often very simple, unwieldy and incredibly large relative to the computing power they were able to provide (Edvac anyone?). But they laid the groundwork for a world today that one is hard-pressed to imagine without computer technology. Industry 3.0 (approximately 1940 to 2015) introduced more automated systems onto the assembly line to perform human tasks, i.e., using Programmable Logic Controllers (PLC). These PLCs are the source of a lot of the data that is generated from the plant floor today.
Industry 4.0
The Fourth industrial Revolution (2016 to present day) is the era of smart machines, storage systems and production facilities that can autonomously exchange information, trigger actions and control each other without human intervention. A deeper dive into I4.0 will shed light on why I believe we are still here today and how these technologies are shaping manufacturing every day.
According to a McKinsey report, benefits of I4.0 for manufacturing are impressive, including:
These results speak volumes to manufacturers that are fighting to be competitive. They have equated to $billions of savings in manufacturing. The companies that are making an I4.0 Digital Transformation a part of their DNA are the ones that are springing to the front of the pack.
Some of the technologies that first appeared in I4.0 have made a significant impact in the world of manufacturing:
Cyber-Physical Systems
Leveraging the vast amounts of data (Big Data) that are available in operations are a key component of I4.0. By analyzing and sharing this data across complimentary computer systems, we find that systems are able to operate autonomously with very little human interaction.
When I worked at GE, we collected vast amounts of data generated for an aircraft engine during flight to improve overall functionality. This data can be ingested into systems to understand how the engine is performing during flight. When the aircraft is approaching an airport, maintenance teams are notified in advance of any potential maintenance actions required. This helps ensure faster turnarounds in a tightly scheduled operation.
Internet of Things (IOT)
The sheer number of sensors available in the market that understand how machines are operating allows for more productive plant floors. Having the ability to capture information about a machine’s health via Condition Based Monitoring can help manufacturers improve their throughput with existing equipment vs existing preventative maintenance options. This means machines can run longer with less risk of downtime due to servicing requirements, thus reducing maintenance costs. This can also potentially reduce capital costs as improved throughputs means there are fewer capital investments required to maintain productivity.
Cloud Computing
Cloud computing has many advantages, including reduced time and infrastructure costs to implement. It also requires less IT Management on an ongoing basis. While headlines about data breaches have hampered adoption for some companies, others are moving forward in the space. We went from “we are never going to move to cloud” to “we plan on moving at a rapid pace and with new applications.” It reminds me of a time early in my career when manufacturing leaders were “never going to put Windows PCs on the plant floor” to present day where they are now pervasive on industry plant floors. Cloud computing is following the same trajectory leading to more efficient infrastructure and data management, not to mention the level of applications that are also available on platforms such as AWS and Azure.
Cognitive Computing
Artificial Intelligence and Machine Learning are big buzz words today that are still making inroads. Every industry is still figuring out how to harness the power of AI to benefit their respective businesses. ChatGPT is an interesting concept that will have good industry uses. But we’re still scratching the surface with this technology. AI has been around since the 1950s but has yet to meet its potential. I think its best days are ahead.
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Industry 4.0 has made a lot of progress in manufacturing by adding incredible value. Looking at customers in different manufacturing sectors, their maturity in these areas vary from company to company, plant to plant and even section to section within each plant. I have visited plants that are utilizing big data for maintenance improvement in one area but are using paper-based processes in another. There is so much potential within today’s manufacturing plants to move forward in I4.0 technologies in order to make vast improvements in a very competitive world.
What is Industry 5.0?
In less than a decade after Industry 4.0 principles have made their way into the vernacular, some say Industry 5.0 is already coming into focus. If I4.0 is largely about utilizing large amounts of data from machinery in order to understand and improve operations automatically, then I5.0 is about putting this power back into human hands. I4.0 put smart technology at the forefront of manufacturing, while I5.0 will add increased collaboration between humans and smart systems.?This will help marry the power of the technology with the creativity and resourcefulness of humans. And where?I4.0?put smart technologies at the center of manufacturing and supply chains, I5.0 is about augmenting that?digital transformation?with a more meaningful and efficient collaboration between humans and the machines and systems within their digital ecosystem.
How can humans take advantage of this information and work together to improve the efficiency of the manufacturing process? The partnership between humans and smart machines marries the accuracy and speed of industrial automation with the creativity, innovation, and critical thinking skills of humans. These are goals that can accomplished within I4.0 today. For example, real time OEE systems require human interaction and action in order to take the data and make real change.
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Here are the focus areas I see as indicative of industry 5.0:
These changes are driven by calls for greater emphasis on environmental and societal value, as is evident from ESG (environment, social, and governance), CSR (corporate social responsibility), and the Triple Bottom Line (people, planet, and profit). This should come as no surprise given the strong desire by everyone to move towards a more sustainable future. Numerous manufacturers’ annual reports are seeing more and more references to sustainability initiatives.
Collaborative Robots (cobots) are one example where the robots will help human operators meet demand and quality standards efficiently by performing repetitive tasks. Cobots will free up?workers?for their creativity and innovative tasks. Furthermore, people in the manufacturing industry will be able to focus more on the strategic future of the company while cobots can concentrate on the daily tasks. We’re starting to see some of this in the Automotive Industry with machines helping install heavy elements such as doors, dashboards and tires. In the future the cobots will become even more advanced.
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What are the benefits of Industry 5.0?
Now let’s take a look at some of the promised benefits coming with Industry 5.0.
Productivity
As automation within I5.0 improves productivity, workers can now focus on strategic tasks while robots handle mundane, repetitive tasks as in the previous example of cobots in the Automotive Industry. With more time to spend on strategic tasks, workers can focus on increasing efficiency and product capabilities.
Customer Experience
As technology has grown increasingly sophisticated, customers have become more influential. I5.0 will improve the collaborative interactions between humans and machines. As a result, the customer experience should become a top priority for any organization. Earlier involvement with customers to learn preferences, behaviors and habits can translate to higher product success rates.
Interactive Product
Interactive products in I5.0 will help people see and feel a product before they buy it which can increase customer satisfaction. Increased customer satisfaction leads to increased sales (and fewer returns). In addition, an interactive product makes the shopping experience fun and engaging.
Human Centric
Human-centric manufacturing in I5.0 aims to improve the quality of lives for workers and society as a whole. It addresses the changing skills and training needs of employees; and it focuses on the well-being of the company as a whole as it aims to meet specific customer needs. This is a core tenet of I5.0: how can we continue to reskill workers so they continue to add value and are not displaced by technology?
Increased Resiliency
In order to be successful, organizations must be able to plan for the potential disruptions of their value chain, supply chain, and transportation channels. The benefits of resiliency in I5.0 can be felt throughout every part of a company’s value chain.
The benefits of resilience in the industry of the future are many and varied. Resiliency reduces the impact of individual failures and enhances the ability of a company to bounce back from adversity. This need is highlighted by the disruptions caused by the Covid-19 pandemic in 2020 and whose impact we are still experiencing in 2023.
Sustainability
The 5th Industrial Revolution provides a common language for discussing issues such as societal value, pollution, and depletion of resources. And with the pressing effects of climate change and global warming, sustainable approaches are becoming a top priority.
One of the most important benefits of I5.0 is reducing its environmental impact. Sustainability can also improve employee productivity and morale, reduce waste, and improve the quality of products.
Manufacturing
In terms of manufacturing, I5.0 would be about designing and creating factories and facilities that focus on humans to make sure robotics and automation don’t overtake them. Additionally, environmental, political, and social sustainability should be at the forefront of the design and creation of companies and organizations looking to add more value.
We are still in the development of Industry 4.0
I believe that we are still in the early period of Industry 4.0. When I talk to customers, they are at different levels of I4.0 maturity, sometimes even within the same plant. I have seen manufacturing plants that are using digital analytics in one area but are still using paper-based processes in others. I have yet to see or visit a customer that has all the answers. Even mature customers from a digital perspective have a long way to go to exhaust the benefits promised from Industry 4.0.
I see I5.0 more as a complement of I4.0 than as a full-blown industry revolution. I see it more of an incremental value add to the massive changes that are part of I4.0 technologies. Industry 4.0, while providing massive improvements to efficiency, cost reduction and revenue, is also enabling the workforce to be more productive.
Gordon Moore elaborated on his law when he said, “It’s not a law (Moore’s law) in any real respect. It was an observation and a projection.” In that same context, I think that what some analysts are calling Industry 5.0 is really just an observation on the progression of I4.0 . I believe there still needs to be further understanding of these concepts and how to apply them as they slowly make their way into manufacturing. Given the adoption rates of I4.0, I don’t see an I5.0 revolution at hand. As more companies adopt the technologies associated with I4.0, we will have a better understanding of what the future holds and when the next real revolution is coming.
Edited by Theron Long
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