MANAGEMENT OF INNOVATION,

TECHNOLOGY & ENTREPRENEURSHIP

FINAL TEST

COLLABORATIVE TECHNOLOGIES
IN THE ERA OF INDUSTRY 4.0

PT TOYOTA MOTOR MANUFACTURING INDONESIA

Raidha Nur Afifah

29117169

MASTER OF BUSINESS ADMINISTRATION

YOUNG PROFESSIONAL
SCHOOL OF BUSINESS MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2018
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Industry 4.0 is definitely a revolutionary approach to manufacturing techniques. The

concept will push global manufacturers to a new level of optimization and productivity. Not
only that, but customers will also enjoy a new level of personally customized products that
may have never been available before. However, there are still many challenges that need to
be tackled systematically to ensure a smooth transition. This needs to be the focus of large
corporations and governments alike. Pushing research and experimentation in such fields are
essential.While speculations regarding privacy, security, and employment need more study,
the overall picture is promising. Such approach to manufacturing industries is truly
revolutionary.
The fourth industrial revolution takes the automation of manufacturing processes to a
new level by introducing customized and flexible mass production technologies. This means
that machines will operate independently, or cooperate with humans in creating a customer-
oriented production field that constantly works on maintaining itself. The machine rather
becomes an independent entity that is able to collect data, analyze it, and advise upon it. This
becomes possible by introducing self-optimization, self-cognition, and self-customization into
the industry. The manufacturers will be able to communicate with computers rather than
operate them.
The rapid changes in the information and communication technologies (ICT) have
broken the boundaries between virtual reality and the real world. The idea behind Industry 4.0
is to create a social network where machines can communicate with each other, called the
Internet of Things (IoT) and with people, called the Internet of People (IoP). This way,
machines can communicate with each other and with the manufacturers to create what we
now call a cyber-physical production system (CPPS). All of this helps industries integrate the
real world into a virtual one and enable machines to collect live data, analyze them, and even
make decisions based upon them.

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Cyber-Physical Systems, Internet of Things, Smart Factory, and Internet of Services are
the most common four terms cited in academic research publications related to the industry.
Consequently, and given its initial stage, these are the four main components of the industry.
A cyber-physical system aims at the integration of computation and physical processes. This
means that computers and networks are able to monitor the physical process of manufacturing
at a certain process. The design principles allow manufacturers to investigate a potential
transformation to Industry 4.0 technologies. Based on the components above, the following
are the design principles:

Interoperability: the communication ability of all the elements of the factory, cyber-
physical systems, robots, corporate information systems, smart products and the people,
as well as third-part systems.

Decentralization: the capacity for the design of autonomous sub-processes within the
factory with cyber-physical elements with the capacity to make decisions
autonomously.

Real-time analytics: the ability to collect and analyse large amounts of data (Big Data)
that allow the monitoring, control and optimization of processes, facilitating any result
and decision derived from the process immediately and at every moment.

Virtualization: the ability to generate a virtual copy of the fabric by collecting data and
the modelling industrial processes (physical), obtaining virtual plant models and
simulation models.

Service orientation: the ability to transfer the new value generated to the customer in the
form of new services or improved services with the exploitation of new disruptive
business models.

Modularity & Scalability: the flexibility and elasticity to adapt to the needs of industry
and business at all times, with the ability to scale the technical capacity of the system in
accordance with the technical requirements required by the evolution of business
demand in each case.

The following are some of the important changes that will affect the demographics of
employment:

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 Big-Data-Driven Quality Control: In engineering terms, quality control aims at

reducing the inevitable variation between products. Quality Control depends to a
large extent on statistical methods to show whether a specific feature of a product
(such as size or weight) is changing in a way that can be considered a pattern. Of
course such a process depends largely on collecting real-time or historical data
regarding the product. However, since Industry 4.0 will rely on big data for that, the
need for quality control workers will decrease. On the other side, the demand for big
data scientists will increase.
 Robot-Assisted Production: The entire basis of the new industry relies of the smart
devices being able to interact with the surrounding environment. This means that
workers who assist in production (such as packaging) will be laid off and be replaced
with smart devices equipped with cameras, sensors, and actuators that are able to
identify the product and then deliver the necessary changes for it. Consequently, the
demand for such workers will drop and will be replaced with “robot coordinators”.
 Self-Driving Logistics Vehicles: One of the most important focuses of optimization
is transportation. Engineers use linear programming methods (such as the
Transportation Model) to utilize the use of transportation. However, with self-driven
vehicles, and with the assistance of big data, so many drivers will be laid off. In
addition, having self-driven vehicles allows for restriction-free working hours and
higher utility.
 Production Line Simulation: While the need for optimization for transportation
declines, the need for industrial engineers (who typically work on optimization and
simulation) to simulate productions lines will increase. Having the technology to
simulate production lines before establishment will open up jobs for mechanical
engineers specializing in the industrial field.
 Predictive Maintenance: Having smart devices will allow manufacturers to predict
failures. Smart machines will be able to also independently maintain themselves.
Consequently, the number of traditional maintenance technicians will drop, and
they’ll be replaced with more technically informed ones.
 Machines as a Service: The new industry will also allow manufactures to sell a
machine as a service. This means that instead of selling the entire machine to the
client, the machine will be set-up and maintained by the manufacturer while the
client takes advantage of the services it provides. This will open up jobs in
maintenance and will require an expansion in sales.

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COLLABORATIVE TECHNOLOGIES
IN THE ERA OF INDUSTRY 4.0

The players in the industry along the supply chain.

As a world-class manufacturing company, PT Toyota Motor Manufacturing Indonesia

(TMMIN) has produced the best and high-quality products. PT Toyota Motor Manufacturing
Indonesia as a pioneer of the automotive business in Indonesia has been working closely with
the government in raising and developing the automotive industry continuously. Toyota
Indonesia is not only a car assembly, but has produced its own Toyota Innova, Fortuner, Vios,
Etios Valco, Yaris and Sienta cars. and also produce various supporting components including
engines. PT Toyota Motor Manufacturing Indonesia grows along with our business partners
in the spirit of 'Harmonious Partnership', so their products not only sustain production for the
domestic market but also the export market.

Since its establishment, TMMIN has continued to strive to increase the ratio of local car
content and other products. The development of the local component industry is carried out
jointly between TMMIN and component manufacturers. In an effort to develop a network of
component suppliers, TMMIN focuses on six key factors which include safety, environment,
quality, productivity, costs and human resources. All points are disseminated to all TMMIN
elements as a corporate culture that is the basis of work.

The Toyota car production process is carried out in several processes consisting of Press
Shop, Welding Shop, Paint Shop, Engine Shop and Assembly Shop. Each shop in the Toyota
car production process at PT Toyota Motor Manufacturing Indonesia has advantages, new
technology, prioritizing efficiency and being environmentally friendly.

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Flow to Produce Toyota Cars

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Supply Chain

TMMIN conducts their activity in consistent manner, resulting in the expansion of our
business network to 1,656 companies as our business partners (production and non-
production) with the the total number of workers absorbed by TMMIN reached 9,500 people,
while the overall operation of TMMIN Indonesia by involving suppliers was able to absorb a
workforce of up to 300,000 people.

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Component Suppliers

As one of Toyota's production base in the world, TMMIN always seeks to strengthen
the production base of supporting industry by continuing to improve the ratio of local
components used. TMMIN, together with the local suppliers, leverage the competitiveness of
Indonesian automotive industry by increasing the composition of local components utilization
in all its production cars.

TMMIN has many suppliers to support their production. Here are some component
suppliers of the company ;

1. PT Inti Ganda Perdana (Rear Axle & Propeller Shaft)

PT. Inti Ganda Perdana has been developing its capabilities in product design
and development, as in manufacturing opertaions balanced by cost efficiency. With
customer's support and the implementation of international standards like ISO 14001,
OHSAS 18001 and ISO/TS 16949, PT Inti Ganda Perdana has setit upon itself to
ever improve product quality, cost, development and delivery time. Including for the
implementation of the just in time supply system and the award as Best Supplier.
Next to development of engineering capabilities, manufacturing operations and
market expansions, the strategy implemented to archieve its mission is by applying
Just In Time production systemat all production lines. Here are the company’s
machining product :

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 Side Bearing Nut

 Companion Flange
 Propeller Shaft Assy
 Pinion Shaft
 Axle Shaft
 Yokes

2. PT Gemala Kempa Daya (Frame Chassis & Press Part)

Coinciding with the start of the globalization era, PT Gemala Kempa Daya has
committed to be a world-class corporation in the field of underbody components. To
accomplish this objective the company has established cooperation with a design
house in Europe. Engineers from the company are dispatched to the design house to
improve their capabilities in product design, while the company has set up an in-
house learning center to expediate the development of its human resources. It is
reflected by the acquirement of the ISO 14001, OHSAS 18001 and ISO/TS 16949
certications. PT Gemala Kempa Daya has also received other awards from its main
customers, such as: for the extraordinary constribution in achieving product quality
and complying with delivery targets. Here are some of PT Gemala Kempa Daya
equipments :

 Press 4000 T  Press 48 T

 Press 2000 T  Press 16 T

 Press 1000 T  Assembling Line Categories II & III (medium & heavy duty truck)

 Press 500 T  Plasma cutting machine

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3. PT Wahana Eka Paramitra (Machining Center & Transmission Assy)

To improve competency, PT Wahana Eka Paramitra has adopted Computer

Aided Design (CAD) and Computer Aided Engineering (CAE), while establishing
cooperation with goverment institution for testing and analyzing facilities, in order to
analyze and produce the product performance which comply with customer's
recruitment. PT Wahana Eka Paramitra's commitment to increase customer
satisfaction and competitive advantage, are proven by the ISO 14001, OHSAS 18001
and ISO/TS 16949 certifications. PT Wahana Eka Paramitra has recieved numerous
awards related awards related to quality, cost, development anda delivery time.
Including for the implementations of the just in time supply system and the award as
Best Supplier. Some of PT Wahana Eka Paramitra's equitment :

 CNC Machining Center

 CNC Lathe
 CNC Lathe
 Air Leak tester
 High frequency induction hardening
 Hobbing Machine
 Broaching Machine
 Transmission assy test bench

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The company has also set up a Calibration and Product Testing Laboratory,
which complies with the international iso 17025 standarts. This laboratory is fully
dedicated to companies growth, hence supports the development program for the
frame chassis and drive train that are being conducted by the Product Develeopment
Team of the company. Apart from that, the company also cooperate closely with its
customer, providing optimum solution, suggesting improvement, modiflying product
design or production process to generate quality product at compentitive cost. The
company has also set up a fully responsible Maintenance Center, which ensures that
equipments and machniries are maintenanced id operational condition to produce
product that comply with customer's demans.

Material Suppliers

The use of basic materials (steel, resin, etc.) from local suppliers are expected to enrich the
local content in the production of TMMIN’s car. In this activity, TMMIN cooperates with the
government and private company to strengthen the foundation of Indonesia's automotive
industry. In addition to component suppliers, TMMIN also has many material suppliers. One
of them is PT Autocomes System Indonesia. The company produces a number of products,
including cable assemblies, meters and automotive instruments, gas equipment, air
conditioners and solar power systems. As a first-tier supplier, Yazaki sells mainly to car
makers, and, to a lesser extent, electricity, gas and general construction companies.

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Dealers

PT Toyota Motor Manufacturing Indonesia has five factories in Indonesia which

continuously contribute positively to Indonesia. Two are located in the North Jakarta area or
Plant 1 Sunter and Sunter Plant 2 and the other three are located in the Karawang area, West
Java, namely Plant 1, Plant 2 and Plant 3. While for customer service, PT. Toyota Motor
Manufacturing Indonesia is supported by five main dealers namely ;
1. PT Astra International Tbk (Auto 2000) for the DKI Jakarta area and surrounding
areas.
2. PT New Ratna Motor for Regions in Central Java.
3. PT Agung Automall for Riau, Jambi, Bengkulu and surrounding areas.
4. PT Hadji Kalla Trd. Co. for the area of South Sulawesi, Southeast Sulawesi,
Southeast Sulawesi and its surroundings.
5. PT Hasjrat Abadi for North Sulawesi, Maluku, Irian Jaya and surrounding areas.

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The challenges of The fourth industrial revolution 4.0

for this industry and the reasons why the companies might be
reluctant to adopt technologies related to IR4.

The fourth industrial revolution has seen the rise of robots working alongside factory
workers, and autonomous vehicles replenishing production line supplies. Sensor networks and
communications technologies have been used to connect designers with factory workers, with
intelligent machines and software interacting autonomously through the cloud, and facilities
connected in real time to suppliers and customers. Smart technologies, or rather, smart
technological utilisation, offers the manufacturing industry so much potential. Engineers can
get instant feedback on costs and performance predictions. Factory machines can
automatically assign factory processes. Smart factories will also enable companies to predict
when their equipment is about to fail and therefore take preventative measures to make sure it
doesn’t or inform maintenance team of incident sooner so companies can react more quickly.
IoT could save organisations lots of money by improving uptime through predictive
maintenance, or else informing them in real time through re-active maintenance.

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Reluctant to adopt technologies related to IR4.

However, although there are potential benefits, there are some who are reluctant to
accept this change. Concern that investors, employees, and the wider community will not trust
the concept of are some of these factors. The following are some of the challenges faced by
The fourth industrial revolution in the automotive industry which make the companies might
be reluctant to adopt technologies related to IR4.
1. The absence of innovation centers. The government budget for research and
development (R & D) is still very limited, only 0.1% to 0.3% of GDP.
2. ssues of overlapping regulations and policies.
3. Hard to find new people with necessary digital skills to run new systems and adapt
them to future technologies.
4. The ability of smart systems to communicate across factories and with suppliers and
customers that have different systems also emerged as a concern. Industry specific
data standardisation would help to solve this problem, firms could use one interface
for all their customers and suppliers.
5. Those relating to cybersecurity. The risk of security breaches – that’s hackers
accessing IT systems through an Internet of Things (IoT), It makes the risk of
investing in smart factories increased. Technology providers need to tell
manufacturers about security features that come with their products and explain how
the features work to prevent cyber-attacks. It is also important for IT teams to work
closely with operational teams generally, and provide support within a common IoT
strategy.

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6. The conservative attitude of those who run manufacturing production lines can also
prevent companies from taking on new smart technologies. People do the same thing
again and again and don’t want to tinker with something that works reasonably well,
companies have to decide on whether companies want to gamble on something new.
7. Consumers demand for increasingly complex products, so make smart technologies
increasingly important for the manufacturing industry. Today’s car buyers want
models built to their own specifications. The challenge for manufacturers is to
balance repetition and automation with demand for variation whilst at the same time
maintaining a high quality product.
8. Upgrading factory systems to embrace The fourth industrial revolution requires a lot
of investment which could be seen as a potential roadblock to widespread uptake.

PT Toyota Motor Manufacturing Indonesia faces The fourth industrial revolution 4.0

For this PT Toyota Motor Manufacturing Indonesia itself, there are several challenges
that must be faced by companies such as;
1. Supply chain components. The lack of development of domestic component industry
has resulted in the process of manufacturing still being sufficiently dependent on
import activities.
Toyota Motor Manufacturing Indonesia as one of the automotive industry players in
Indonesia recognizes that industry still needs to be deepened at this time. Including
by increasing the number and capabilities of local suppliers. Not only in layer 1, but
also in layers 2 and 3 which are Small Medium Industries (SMIs). Adequate local
component supply chains will increase local content in automotive products. This

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means reducing the dependence on imports which is greatly influenced by
fluctuations in the exchange rate. Product competitiveness in terms of price certainty
will increase.
2. Expand globally which is a global issue about the environment and energy.
Today, global automotive consumers are very concerned about fuel consumption and
exhaust emissions. It takes time for various adjustments, for example, in terms of
manufacturers, even though the national automotive manufacturing is ready and able
to produce vehicles with standards set to meet consumer demand and adjust to the
regulations of the export destination countries. Developted countries that are
currently the destination of Indonesia's exports are also increasingly paying attention
to vehicle safety technology. Therefore, it is necessary to implement a global
standard production prodcess.
3. The readiness to replace the previous positions
4. The use of IoT in Toyota's factories has so far been limited to detecting problems

PT Toyota Motor Manufacturing Indonesia assesses the automotive sector to be in line

with the government's intention towards The fourth industrial revolution 4.0. A number of
homework needs to be completed immediately to reach the fourth industrial revolution in
order to increase competitiveness in the digitalization era. TMMIN is currently working to
increase the use of internet of things (IoT). The use of technology will replace a number of
conventional jobs. But there are other positions that will replace, such as system settings.
Indeed PT Toyota Motor Manufacturing Indonesia runs the business to fulfill market
demand with sufficient supply. However, running it is not easy because the two sides have
their own level of uncertainty. The more uncertain the landscape of uncertainty faced by the
company both in terms of demand and supply, the more risky the company will secure its
profit.
Getting into The fourth industrial revolution is not just an intelligent technology
investment that automatically makes smart makers. Being a player in The fourth industrial
revolution requires innovation in business models. Companies such as PT Toyota Motor
Manufacturing Indonesia that embrace the The fourth industrial revolution must be aware of
customer jobs to be done which constantly change so that the solution and the value
proposition also change. To develop The fourth industrial revolution 4.0, this company
requires a high commitment to improve internal and external capabilities and all intelligent
processes.

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How the IR4 technologies and the collaborative production

add value and increase productivity
for the players in the industry.
The fourth industrial revolution is related to the optimization of all existing resources in
business networks to meet all market demands. Real optimization is not new. The difference
is in "how to play" in carrying out the optimization. How to play it in The fourth industrial
revolution will be determined by solid orchestration from various supporting technologies
including internet of things, 3D printing, cloud computing, artificial intelligence, and big data
analytics in addition to increasingly autonomous robot technology. All of this enables
connectivity and interaction between all stakeholders and their resources in business
networks. Coupled with smart decisions from the big data analysis, smart manufacturers in
The fourth industrial revolution will be able to produce smart solutions. The solution is who
does what, in what amount, for whom, is sent at what time without sacrificing profits.
Companies should think big, but start small. Start with a simple non-invasive, and
ideally interoperable, scalable smart solution, perhaps a smart motor on a conveyor line or
smart section of lighting, see how it works, confirm the money it saves and benefits that can
be taken from the data generated, and then when they’re satisfied, bring in another smart
system. Companies should not to invest in technology for its own sake. Instead, they should
have a clear view of what their own strategy is and how they compete, and only then look at
what’s available to support that. The national manufacturing sector must be prepared for
major changes in the face of the fourth industrial revolution or The fourth industrial
revolution 4.0. Consequently, new approaches and capabilities are needed to build innovative
and sustainable production systems. Some of the approaches taken by are ;
1. Encourage workers in Indonesia to continue to learn and improve their skills to
understand the use of internet technology matters or integrate internet capabilities
with production lines in the industry.
2. Use of digital technology to spur productivity and competitiveness for small and
medium enterprises. Medium industry (IKM) so that they can penetrate the export
market through the e-smart IKM program. The e-smart IKM program is an effort to
expand the market in the world value chain and face the era of The fourth industrial
revolution 4.0.

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3. National industries can use digital technologies such as Big Data or industrial
automation which are used to optimize production schedules based on suppliers,
customers, machine availability and cost constraints.
4. What is needed is technological innovation through the development of startups by
facilitating the place of business incubation.

How the IR4 technologies and the collaborative production

add value and increase productivity
PT Toyota Motor Manufacturing Indonesia and Players

To produce quality components, PT Toyota Motor Manufacturing Indonesia and

component manufacturers in the supply chain work together. In the initial planning
process, PT Toyota Motor Manufacturing Indonesia provides sample of components and
provides instructions for producing and also the materials used with predetermined
specifications. Meanwhile, in the process of production, PT Toyota Motor Manufacturing
Indonesia also controls quality and the suppliers in order to achieve the desired result.

The Just-in-Time concept in the manufacturing process must be truly adapted to the
organization that will implement the concept. Like workers who must be highly motivated to
continue to make improvements over time or set higher standards. Companies must focus on
group development efforts that will involve various combinations of talents and also
knowledge, problem solving skills and ideas to achieve common goals.

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By applying the Just-in-Time concept in the manufacturing process inclcuding the

existence of suppliers, a company can reduce the risk of defects in its products. Employees
who work in factories that have implemented Just-in-Time have the knowledge, resources and
also know the processes needed to make a better product. The concept of Just-in-Time
manufacturing is indeed focused on reducing waste and reducing production costs. From its
ethical point of view, reducing waste and production costs here means being able to provide
low prices but still providing better value for consumers. Of course, the personal ethics of
employees and the company's business ethics will directly affect the work process and the
quality of production, so that labor factors really support the achievement of better products in
the application of Just-in-Time.

PT Inti Ganda Perdana (Rear Axle & Propeller Shaft) as a supplier of PT Toyota
Motor Manufacturing Indonesia also implemented Just-in-Time in their manufacturing
process. For them, Just-in-Time helps them to find system and idea of manufacturing and
conveying only what is needed, when it is needed, in just the amount needed at all stages of
productions.

PT Toyota Motor Manufacturing Indonesia uses Just-in-Time inventory controls as part

of its business model. Toyota sends off orders for parts only when it receives new orders from
customers. Several elements of Just-in-Time manufacturing need to occur for PT Toyota
Motor Manufacturing Indonesia to succeed. The company must have steady production, high-
quality workmanship, no machine breakdowns at the plant, reliable suppliers and quick ways
to assemble machines that put together vehicles.

In the Toyota Global's Just-in-Time concept almost came to a crashing halt in February
1997. A fire at an Aisin-owned brake parts plant decimated its capacity to produce a P-valve
for Toyota vehicles. The company was the sole supplier of the part, and the fact that the plant
remained closed for weeks could have devastated Toyota's supply line. The auto manufacturer
ran out of P-valve parts after just one day. Production lines shut down for two days until a
supplier of Aisin could manufacture the valves. Other suppliers for Toyota also had to shut
down because the auto manufacturer didn't need other parts to complete any cars on the
assembly line. The fire cost Toyota nearly $15 billion in revenue and 70,000 cars due to its
two-day shutdown, but it could have been much worse.

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Just-In-Time in The Eye

of PT Toyota Motor Manufacturing Indonesia

The summary of Toyota Production System

Toyota Production System

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Kanban System

In the TPS (Toyota Production System), a unique production control method called the
"kanban system" plays an integral role. The kanban system has also been called the
"Supermarket method" because the idea behind it was borrowed from supermarkets. Such
mass merchandizing stores use product control cards upon which product-related information,
such as a product's name, code and storage location, are entered. Because Toyota employed
kanban signs for use in their production processes, the method came to be called the "kanban
system." At Toyota, when a process refers to a preceding process to retrieve parts, it uses a
kanban to communicate which parts have been used.

Through continuous technological improvements, the kanban system has evolved into
the "e-kanban," which is managed using IT methodologies and has increased productivity
even further. A supermarket stocks the items needed by its customers when companies are
needed in the quantity needed, and has all of these items available for sale at any given time.
Taiichi Ohno (a former Toyota vice president), who promoted the idea of Just-in-Time,
applied this concept, equating the supermarket and the customer with the preceding process
and the next process, respectively. By having the next process (the customer) go to the
preceding process (the supermarket) to retrieve the necessary parts when companies are
needed and in the amount needed, it was possible to improve upon the existing inefficient
production system. No longer were the preceding processes making excess parts and
delivering them to the next process.

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Two kinds of kanban (the production instruction kanban and the parts retrieval
kanban) are used for managing parts.

Toyota Production System “House”

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Education And Communication

To strengthen relations and facilitate communication with suppliers, on July 2, 1987 PT Toyota
Motor Manufacturing Indonesia established an independent non-profit organization Toyota
Manufacturers Club (TM Club). Through the TM Club, PT Toyota Motor Manufacturing
Indonesia organizes integrated education and communication programs for our employees,
management and suppliers with the aim of increasing competencies in order to progress together.

Production Management

PT Toyota Motor Manufacturing Indonesia considers suppliers to be part of a large family

where we build long-term relationships by helping one another.With the spirit of mutual assistance,
PT Toyota Motor Manufacturing Indonesia and suppliers carry out improvement activities for the
common good. Problems experienced by suppliers are also a problem for PT Toyota Motor
Manufacturing Indonesia.

Sustainable Improvement (Kaizen)

With the spirit to grow together, TMMIN shares experiences and competencies with suppliers
by carrying out Jishuken activities through the establishment of joint improvement groups with the
aim that suppliers can be more independent.

At present, the first tier 1 supplier of Toyota Indonesia is mostly a joint venture whose majority
shares are controlled by foreigners, but local companies can still become second tier 2 and third tier
suppliers. Thus, the continued growth of the automotive industry can also be felt by Indonesians. The
use of local raw materials must also be encouraged so that Indonesia can get added value from the
automotive industry tree. Toyota Indonesia works together to help suppliers to improve and improve
the management of safety, quality, shipping and work productivity to maintain & improve the
competitiveness of our business partners, such activities include: training, QCC / Quality Control
Circle, and also benchmarking. In addition, Toyota Indonesia also fosters manufacturing management,
specifically regarding the application of Lean Manufacturing, and the repair of shop floor production.

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The possible ethical issues

in the implementation of IR4 in this industry.
Humans are replaced by machines.

The industrial revolution 4.0 is considered to be a threat to human work, plus the rapid
flow of economic change. Almost the entire order will experience disruption. What we have
now will be obsolete especially routine service. Slowly it will happen. Computers and Robots
become a new, fast, open and systemic icon. There are several types of jobs that will later use
machine automation or the use of robots. Technology will help more to what people lack. So
it's not replacing human roles. But most poeple think that technology is believed to be able to
make companies make mass layoffs. The role of humans as laborers still cannot be replaced
by technological sophistication. It's just that the ability of humans to be able to work and
adapt to technology is inevitable.

Workers must be encouraged to reach the peak of their achievements such as creativity,
innovation and intuition. Technology cannot replace human performance, but rather
encourages people to be more creative, innovative and intuitive. In the midst of the
increasingly sophisticated technological developments emerging technology concerns will
replace human labor in work. With the presence of the internet things, robots will become
stronger and have the possibility to change the role of humans, and it will create a gap in the
community.

For information, The fourth industrial revolution is the latest trend in automation and
data exchange in factory technology. This term includes cyber-physical systems, the internet
for everything, cloud computing, and cognitive computing. The fourth industrial revolution
produces smart factories. In smart modular structures, cyber-physical systems oversee
physical processes, create copies of the physical world virtually, and make decisions that are
not centralized. Through the Internet for all (IoT), cyber-physical systems communicate and
cooperate with each other and humans simultaneously.

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Pancasila can form a superior character of Human Resource in this case. Pancasila is needed to
equip themselves in the industrial revolution 4.0. There is a flow of revolution that combines physical,
digital and biological technologies that have an impact on all disciplines and ultimately modern
technology will revolutionize the way we live our lives. The current free competition of labor in the
Era requires jobseekers to equip themselves as much as possible to master modern technology,
especially digital technology. But many people forget, there is another side that is more important to
have is character and integrity.

Character is interpreted as a character that grows and is reflected in the attitude, behavior and
work patterns of someone who will distinguish one from the other. Whereas Integrity is one of the key
attributes that a worker must possess. At a time when global competition is very tight with various
countries in the world that only see from the mastery of technology, Pancasila can actually be the
answer about the distinctiveness of Indonesia's human resources. Pancasila as a source of ethics in the
concept and implementation of the work of Indonesian human resources professionals.

Pancasila must be the main spirit in the formulation of the Professional Ethics Code which
covers ethical, moral and legal aspects. Indonesian HR will have a distinctiveness as humans who are
adaptive to technology with superior character and integrity of the Pancasila. With this concept,
Indonesia's HR bargaining position will dominate the world market.

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 Raidha Nur Afifah

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