Industry 4.

0 and the fourth industrial revolution (4IR)

As a reminder the classic view of these four industrial revolutions, as Industry 4.0 became
increasingly popular, was:

1. The first industrial revolution, which REALLY was a revolution, and, among others
thanks to invention of steam machines, the usage of water and steam power and all sorts
of other machines, would lead to the industrial transformation of society with trains,
mechanization of manufacturing and loads of smog.
2. The second industrial revolution is typically seen as the period where electricity and
new manufacturing ‘inventions’ which it enabled, such as the assembly line, led to the
area of mass production and to some extent to automation.
3. The third industrial revolution had everything to do with the rise of computers,
computer networks (WAN, LAN, MAN,…), the rise of robotics in manufacturing,
connectivity and obviously the birth of the Internet, that big game changer in the ways
information is handled and shared, and the evolutions to e-anything versions of
previously brick and mortar environments only, with far more automation.
4. In the fourth industrial revolution we move from ‘just’ the Internet and the client-
server model to ubiquitous mobility, the bridging of digital and physical environments (in
manufacturing referred to as Cyber Physical Systems), the convergence of IT and OT,
and all the previously mentioned technologies (Internet of Things, Big Data, cloud, etc.)
with additional accelerators such as advanced robotics and AI/cognitive which enable
Industry 4.0 with automation and optimization in entirely new ways that lead to ample
opportunities to innovate and truly fully automate and bring the industry to the next level.

Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing
technologies. It includes cyber-physical systems, the Internet of things, cloud computing[1][2][3][4]
and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial
revolution.[5]

Industry 4.0 creates what has been called a "smart factory". Within the modular structured smart
factories, cyber-physical systems monitor physical processes, create a virtual copy of the
physical world and make decentralized decisions. Over the Internet of Things, cyber-physical
systems communicate and cooperate with each other and with humans in real-time both
internally and across organizational services offered and used by participants of the value chain.
[1]

Name
The term "Industrie 4.0" originates from a project in the high-tech strategy of the German
government, which promotes the computerization of manufacturing.[6]
The term "Industrie 4.0" was revived in 2011 at the Hannover Fair.[7] 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

Meaning
Current usage of the term has been criticised as essentially meaningless, in particular on the
grounds that technological innovation is continuous and the concept of a "revolution" in
technology innovation is based on a lack of knowledge of the details.[9]

The characteristics given for the German government's Industry 4.0 strategy are: the strong
customization of products under the conditions of highly flexible (mass-) production. The
required automation technology is improved by the introduction of methods of self-optimization,
self-configuration,[10] self-diagnosis, cognition and intelligent support of workers in their
increasingly complex work.[11] The largest project in Industry 4.0 as of July 2013 is the BMBF
leading-edge cluster "Intelligent Technical Systems Ostwestfalen-Lippe (it's OWL)". Another
major project is the BMBF project RES-COM,[12] as well as the Cluster of Excellence
"Integrative Production Technology for High-Wage Countries".[13] In 2015, the European
Commission started the international Horizon 2020 research project CREMA[14] (Providing
Cloud-based Rapid Elastic Manufacturing based on the XaaS and Cloud model) as a major
initiative to foster the Industry 4.0 topic.

Design principles
There are four design principles in Industry 4.0. These principles support companies in
identifying and implementing Industry 4.0 scenarios.[1]

 Interoperability: The ability of machines, devices, sensors, and people to connect and
communicate with each other via the Internet of Things (IoT) or the Internet of People
(IoP)
 Information transparency: The ability of information systems to create a virtual copy of
the physical world by enriching digital plant models with sensor data. This requires the
aggregation of raw sensor data to higher-value context information.
 Technical assistance: First, the ability of assistance systems to support humans by
aggregating and visualizing information comprehensively for making informed decisions
and solving urgent problems on short notice. Second, the ability of cyber physical
systems to physically support humans by conducting a range of tasks that are unpleasant,
too exhausting, or unsafe for their human co-workers.
  Decentralized decisions: The ability of cyber physical systems to make decisions on their
own and to perform their tasks as autonomously as possible. Only in the case of
exceptions, interferences, or conflicting goals, are tasks delegated to a higher level.

Challenges
Challenges in implementation of Industry 4.0:[17]

 IT security issues, which are greatly aggravated by the inherent need to open up those
previously closed production shops
 Reliability and stability needed for critical machine-to-machine communication (M2M),
including very short and stable latency times
 Need to maintain the integrity of production processes
 Need to avoid any IT snags, as those would cause expensive production outages
 Need to protect industrial know how (contained also in the control files for the industrial
automation gear)
 Lack of adequate skill-sets to expedite the march towards fourth industrial revolution
 Threat of redundancy of the corporate IT department
 General reluctance to change by stakeholders
 Loss of many jobs to automatic processes and IT-controlled processes, especially for
lower educated parts of society
 Low top management commitment
 Unclear legal issues and data security
 Unclear economic benefits/ Excessive investment
 Lack of regulation, standard and forms of certifications
 Insufficient qualification of employees

Role of big data and analytics

Modern information and communication technologies like cyber-physical system, big data
analytics and cloud computing, will help early detection of defects and production failures, thus
enabling their prevention and increasing productivity, quality, and agility benefits that have
significant competitive value.

Big data analytics consists of 6Cs in the integrated Industry 4.0 and cyber physical systems
environment. The 6C system comprises:
 1. Connection (sensor and networks)
2. Cloud (computing and data on demand)
3. Cyber (model & memory)
4. Content/context (meaning and correlation)
5. Community (sharing & collaboration)
6. Customization (personalization and value)

In this scenario and in order to provide useful insight to the factory management, data has to be
processed with advanced tools (analytics and algorithms) to generate meaningful information.
Considering the presence of visible and invisible issues in an industrial factory, the information
generation algorithm has to be capable of detecting and addressing invisible issues such as
machine degradation, component wear, etc. in the factory floor.[

Impact of Industry 4.0

Proponents of the term claim Industry 4.0 will affect many areas, most notably:

1. Services and business models

2. Reliability and continuous productivity
3. IT security: Companies like Symantec, Cisco, and Penta Security have already begun to
address the issue of IoT security
4. Machine safety
5. Product lifecycles
6. Industry value chain
7. Workers' education and skills
8. Socio-economic factors
9. Industry Demonstration: To help industry understand the impact of Industry 4.0,
Cincinnati Mayor John Cranley, signed a proclamation to state "Cincinnati to be Industry
4.0 Demonstration City".[20]
10. An article published in February 2016 suggests that Industry 4.0 may have a beneficial
effects for emerging economies such as India

Technology Roadmap for Industry 4.0

From both strategic and technological perspectives, the Industry 4.0 roadmap visualizes every further
step on the route towards an entirely digital enterprise. In order to achieve success in the digital
transformation process, it is necessary to prepare the technology roadmap in the most accurate way. In
today’s business, Industry 4.0 is driven by digital transformation in vertical/horizontal value chains and
product/service offerings of the companies. The required key technologies for Industry 4.0
transformation such as artificial intelligence, internet of things, machine learning, cloud systems,
cybersecurity, adaptive robotics cause radical changes in the business processes of organizations