To examine the challenges Industry 4.

0 to be implemented at Semi
Manufacturing Industries in Klang Valley.

SAZLI BIN OSMAN

OPEN UNIVERSITY MALAYSIA

2019

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To examine the challenges Industry 4.0 to be implemented at Semi
Manufacturing Industries in Klang Valley.

SAZLI BIN OSMAN

A Final Year Project submitted in fulfilment of the requirements

for the degree of
Bachelor of Manufacturing Management with Honours

Open University Malaysia

2019

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 DECLARATION

Name : Sazli Bin Osman

Matric Number : 760827075441001

I hereby declare that this final year project is the result of my own work, except for
quotations and summaries which have been duly acknowledged.

Signature : Date :

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 Appendix 4

Challenges of Industries 4.0 in Klang Valley

The industrial revolution 4.0 was a major turning point in the industry, not just in Malaysia, but
worldwide. This change applies is
due to the discovery of new technologies that are the driving force behind all this change
of this world. To achieve Malaysia's readiness for the industrial revolution 4.0,
the manufacturing industry needs to take some special steps. It's to
ensure that the manufacturing industry in Malaysia, especially in the Klang Valley, is capable of
coping with other developed countries.
However, in facing the challenges of the industrial revolution 4.0, it is certainly the industry
manufacturing will face many obstacles. Therefore, the objective of the study is to identify the
challenges of the manufacturing industry in Malaysia, especially in the Klang Valley, within
leading the industry revolution 4.0 and figuring out what steps to take
the manufacturing industry in Malaysia to meet the challenges of the industrial revolution 4.0.
The research method used for both objectives is through the use
feedback form. This study was conducted on the manufacturing industry
comprising government agencies, manufacturing workers And professors covering the Klang
Valley area. Result
found that one of the challenges that the construction industry is worried about is
requires certain knowledge and skills, requires internet access
fast and efficient and high cost of technical equipment. Then, between
steps that the construction industry can take in Malaysia
leading the industry revolution 4.0 was to provide in-house skills training
the handling of new technology, the readiness of staff among the employees
on changing skills and using technology and gaining
government support in providing funds to employers in promoting Industry 4.0 in the Klang Valley.

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 Appendix 5

Cabaran industris 4.0 di Lembah Klang

Revolusi industri 4.0 merupakan suatu perubahan besar dalam industri, bukan sahaja di Malaysia,
malahan di seluruh dunia. Perubahan Ini berlaku adalah
disebabkan penemuan teknologi baru yang merupakan faktor pendorong segala perubahan di
dunia ini. Untuk mencapai kesediaan Malaysia terhadap revolusi industri 4.0,
pihak industri pembuatan perlu mengambil beberapa langkah khusus. Hal ini bagi
memastikan supaya industri pembuatan di Malaysia, khususnya di Lembah Klang, mampu berdaya
saying dengan negara-negara maju yang lain.
Walaubagaimanapun, dalam mendepani cabaran dalam revolusi industri 4.0, pastinya pihak
industri
pembuatan akan menghadapi pelbagai rintangan dalam usaha ini. Oleh itu, objektif kajian
ini adalah untuk mengenalpasti cabaran industri pembuatan di Malaysia, khususnya di Lembah
Klang, dalam
mendepani revolusi industri 4.0 dan mengenalpasti langkah yang boleh diambil oleh
pihak industri pembuatan di Malaysia dalam mendepani cabaran dalam revolusi industri 4.0.
Kaedah kajian yang digunakan bagi kedua-dua objektif ini adalah melalui penggunaan
borang soal selidik. Kajian ini dijalankan ke atas pihak industri pembuatan
yang terdiri daripada agensi kerajaan, pekerja dalam bidang pembuatan Dan profesor yang meliputi
kawasan Lembah Klang. Hasil kajian
mendapati antara cabaran yang dikhuatiri oleh pihak industri pembinaan ialah
memerlukan pengetahuan dan kemahiran tertentu, memerlukan pengaksesan internet
yang laju dan cekap dan kos peralatan teknikal yang tinggi. Kemudian, antara
langkah yang boleh diambil oleh pihak industri pembinaan di Malaysia dalam
mendepani revolusi industri 4.0 ialah menyediakan latihan kemahiran dalam
pengendaliaan teknologi baru, kesediaan minda dikalangan kakitangan pekerja
terhadap perubahan kemahiran dan penggunaan teknologi serta mendapatkan
sokongan kerajaan dalam penyediaan dana kepada majikan dalam menggalakkan pelaksanaan
Industri 4.0 di Lembah Klang.

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 Appendix 6

ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude and appreciation

to my supervisor, Azhar Rahamat guidance, patience and invaluable advice
throughout this project.

I also would like to express my appreciation to my family and friends for their
endless support whenever I face problems. Without the mentioned parties, it is
impossible for me to complete this project report successfully.

THANK YOU.

Sazli Bin Osman

31 December 2019

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 Appendix 7

Table of Content
TITLE PAGE
DECLARATION ii
ABSTRACT iii
ABSTRAK iv
ACKNOWLEDGEMENTS v
TABLE OF CONTENT vi
LIST OF TABLES vii
LIST OF FIGURES viii
LIST OF ABBREVIATIONS ix

CHAPTHER 1 INTRODUCTION
1.1 Background of Study
1.2 Problem Statement
1.3 Design Principle of Industries 4.0
1.4 Significance of the study
1.5
1.6
1.7

CHAPTHER 2 REVIEW OF LITERITURE

2.1 Introduction
2.2 The history of the industrial revolution
2.3
2.4

CHAPTHER 3 METHODOLOGY
3.1 Prefer Study
3.2 Data collection
3.3 Analysis of study

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CHAPTHER 4 DATA ANAYSIS AND RESULTS

CHAPTHER 5 DISCUSSION AND CONCLUSION

5.1
5.2
5.3
5.4
5.5

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1.0 Introduction

Industry 4.0 is the name given to the automation and data exchange trends involved in
manufacturing technology. It was also known as the Fourth Industrial Revolution. The revolution
here is the phenomenon of the existence of the "smart factory". "Smart Factory" is a factory or
company backed by some of the latest technologies such as Cyber Physical Systems (CPS), Internet
Of Things (IoT), Cloud Computing and Cognitive Computing.

Cloud Computing technology allows organizations or companies to use applications or store data
outside their premises or premises, but they can be accessed anytime and anywhere. Cognitive
Computing technology enables machines or systems to study data and study it to formulate
solutions that can help improve the productivity of an organization or company. The integration of
the above technologies has allowed the industry to move faster and faster and ultimately elevate
human civilization to a higher level.

Technological advances have led to sharp changes in the employment sector (Nigro, 2016). This is
due to the rapidly growing technology in industry 4.0 is the technology that can replace human
labor. Thus, direct human involvement is decreasing (Irawanto, 2011; Zhou, Liu, & Zhou, 3 2015).
In addition, with the new technology, employers need to pay more attention to improving the skills
of their employees in order to keep up with the latest technological advances. According to Faisal
Maliki Baskoro (2017), a country must be prepared to face the wave of unemployment as a result of
technological disruption. Although new jobs are emerging, we still need a high level of skills and
knowledge. This is evidenced by the words of S.T Rubaneswaran (2017) that the industrial
revolution 4.0 would lead to a reduction in foreign labor. The emergence of new technologies not
only disrupts job opportunities but costs of implementation will also increase in realizing the core of
the industry 4.0. This has caused smaller and medium-sized companies to hesitate to adopt this new
technology. Most companies are more interested in the traditional workforce than investing in new
technologies such as automation robots (Datuk C M Vignaesvaran, 2017). Furthermore, the cost of
implementing industry 4.0 is divided into several categories such as technical costs, skills training
costs and education which are the issues facing the implementation of industry 4.0.
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Most university graduates will experience unemployment due to skills and knowledge that still do
not meet current workplace standards. This problem will continue if there is no solution from either
side. Therefore, to reach the level of industrial revolution 4.0, efforts need to be enhanced (S.T
Rubaneswaran, 2017).
So, to deal with the world of automation technology such as robots in the highly anticipated
manufacturing industry sector, is it possible for Malaysia especially in the Klang Valley to face this
revolution? While our industry is still dependent on labor, is the manufacturing industry in the
Klang Valley ready for the wave of industrial revolution 4.0? Therefore, to achieve Malaysia's
readiness for the industrial revolution 4.0, those involved in the manufacturing industry need to take
some specific steps. It's to

The term "Industry 4.0", shortened to I4.0 or just I4, is said to come from the German government's
high-tech strategy project, which promotes manufacturing computing. The term "Industry 4.0" is
said to have been popularized in 2011 at the Hannover Exhibition. In addition to Industry 4.0
terms, there are other similar terms such as the M4 pioneered by aerospace manufacturer Meggitt
PLC.

Whatever the terms used, essentially, the key design principles for Industry 4.0 cover the following
four aspects:

1. Interconnection: The ability of machines, devices, sensors, and people to connect and
communicate with each other through the Internet of Things (IoT) or the Internet of People (IoP)

2. Transparency of information: Transparency provided by Industry 4.0 technology provides

operators with the huge amount of useful information needed to make informed decisions.
Connectivity enables entrepreneurs to gather large amounts of data and information from all points
of the manufacturing process, thereby helping to function and identify key areas that can benefit
from innovation and improvement.

3. Technical assistance: First, the ability of the assistance system to support people by aggregating
and visualizing comprehensive information to make informed decisions and solve urgent problems.
Second, the ability of the cyber-physical system to physically support people by performing a
variety of tasks that are unpleasant, too tiring, or unsafe for their colleagues.

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4. Non-centralized decisions: The ability of the cyber-physical systems to make their own decisions
and perform their tasks as autonomously as possible. In the case of exceptions, interruptions, or
conflicts of interest, assignments are assigned to a higher level.

According to the Founder of the World Economic Forum, Klaus Schwab in his book The Fourth
Industrial Revolution described the Fourth Industrial Revolution marked by the emergence of
supercomputers, smart robots, driverless vehicles, genetic modifications and the development of
neurotechnology that enabled humans to better optimize brain function. In other words, human life
will be simplified with the help of robots that will become "friends" who will manage their daily
tasks and tasks. It may be hard to imagine the logic behind seeing the pizza order we made by
phone order, delivered by a service drone right up to the front door.

According to the World Economic Forum, the top 10 skills needed in the Industrial Revolution 4.0
are as follows:

~Skills solve complex problems

~Critical thinking
~Creativity
~Human resource Management
~Coordination with other individuals
~Emotional intelligence
~Evaluate and make decisions
~Service oriented
~Make negotiations
~Cognitive elasticity

In addition, all household chores such as washing clothes, providing pet food and turning off the air
conditioner only need to press the buttons on their smart phones without having to worry about
getting maid service. To get to the office, we don't have to turn on the engine and drive in the
crowded road. All this will be accomplished by just the push of a button, passengers can continue
to sleep in their cars and all matters of business will be completely controlled by satellite to the
destination. The scenario was strange, but it was slowly developing and evolving into a more
normal form of the future. Using this acronym for Industrial Revolution 4.0, all human daily tasks
will be shared with robots specially designed to optimize human needs and comfort.
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Although these technologies are still in the global testing phase, many of the applications we have
used are already enjoying the benefits. For example, the use of application navigation like Waze or
Google Maps that provides drivers with information and travel routes is one of the earliest seeds of
a world of introduction known as the Internet of Things (IoT).

To stay relevant, the workforce already in the workforce certainly needs training to equip them with
the skills needed to adapt to the changes that occur in the workplace. This requires the resources and
commitment of all relevant parties, whether the government, the employer and the workers
themselves.

In order to supply the workforce in the future, a new approach to the education sector taking into
account the labour market needs under the Industrial Revolution 4.0 is needed. Creative and
innovative initiatives in education must start from now because today's students will be the
workforce of the future.

Students must be trained to be critical, creative and innovative as early as pre-school. In other
words, a one-way approach in a classroom or college is no longer appropriate. Educators should be
given sufficient training to prepare new millennial who are ready to enter a very different work
environment upon graduation.

Collaboration between universities and the industry is crucial to ensuring that graduates are able to
meet the demands of the job market. In this regard, a conducive ecosystem and atmosphere must be
created so that collaboration between the university and industry can be doubled and produce the
desired results.

Efforts to produce more entrepreneurs involved in technology-based and innovation-based

businesses must start from the school level. In addition, social entrepreneurship should also be
encouraged to contribute towards more inclusive development.

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2.0 Methodology
In short, the research methods used are as follows:

2.1- Preface study

Preliminary research is a preliminary step in shaping the issues to be addressed in this study. Initial
studies also refer to sources of reference used as research materials in identifying problems or issues
involved. This reference source is available through both oral and non-verbal sources. Oral
resources are books that can be found in libraries, journals, articles, newspaper clippings and
videos. Whereas non-verbal sources are references to results from discussions with supervisors. At
this stage, we need to identify the problem, listing the objectives needed to achieve the objective of
the actual study. The scope of the study is also identified to facilitate the discovery of the data and
information desired.

2.2-data collection
At this stage, we will focus more on the methods used to obtain the required data. The study used
quantitative methods to obtain data by disseminating questionnaires to identified respondents. The
respondents in this study consisted of those involved in the manufacturing industry including
government agencies, factory workers and professors.

2.3-analysis of data
Once the data collection is done, at this stage, we need to analyze the data we have acquired. This
will be done with three processes, namely, compiling data, analyzing the data and presenting the
data. Data analysis was performed based on the mean score obtained. Only then will the data be
presented in the relevant graph form.

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3.0 Literature Review

3.1 Introduction
In this section, we will discuss about the concept of industrial revolution 4.0. We will also discuss
the history of the emergence of the industrial revolution. In addition, this chapter also features the
nine pillars of industry 4.0.

3.2 The history of the industrial revolution

The industrial revolution was a major change in the way humans used resources and produced
goods. The industrial revolution was a phenomenon that occurred between 1750 - 1850. At that
time, there were massive changes in agriculture, manufacturing, mining, transportation, and
technology. These changes have an impact on the social, economic, and cultural conditions of the
world.
The development of the industry went from industrial revolution 1.0 to industrial revolution 4.0 as
we can see in the figure below:

Diagram 3.1 : Industrial 4.0 Revolution

(Source : SIEMENS AG)

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3.2.1 Industrial Revolution 1.0 (18th century)

As we can see in the figure above, the industrial revolution 1.0 was introduced at the end of the 18th
century. According to Lukac (2016), the industrial revolution has seen the growth of water-based
production and evaporation power. James Watt was in charge of building steam engines at that
time. Subsequently, the change in human labor has shifted to mechanical energy. According to
Martin (2017), the use of steam and water-powered engines is a major source of power for
production. In addition, according to Zhou et al (2015), the industrial revolution 1.0 increased its
efficiency through the use of hydro power, evaporation power and the development of machine
tools.

3.2.2 Industrial Revolution 2.0 (19th century)

Over time, the industrial revolution was followed by technological developments involving the
creation of electricity, oil, telephone, lamps and gasoline engines. According to Marius (2016), the
second industrial revolution broke out around the 19th century, around 1870. The production of
electricity-based mass production to transform assembly lines were also produced (Lu, 2017).

During the year also introduced the telegraph and railway system. This telegraphic system was
created by Ernst Werner Von Siemes. According to Martin (2017), the train was introduced through
the production of steel at that time.

3.2.3 Industrial Revolution 3.0 (20th century)

The third industrial revolution is said to have begun around 60s. The revolution is based on
information technology as well as the internet and computers are at the forefront (Lu, 2017). The
third industrial revolution has also seen widespread use of information technology and electricity in
the production of automation technology (Mohamad Raimi Ab Rahim, 2016).

According to Martin (2017), the third industrial revolution refers to the digital revolution. This is
because there has been a change from analogue system to digital system.

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3.2.4 Industry revolution 4.0 (2011-present)

Historically, the industry has gone through three phases of transformation, ranging from
evaporation, electricity, information technology and now the world has entered a new era of
technology. The fourth industrial revolution was introduced around 2011 and was developed by
German citizen Klaus Schwab. He is the founder of the World Economic Forum. The term Industry
4.0 was introduced during the Hannover Exhibition to describe how to revolutionize organizations
at the global value chain (Schwab, 2017).

According to Kagermann, Lukas & Wahlster (2011), the revolution is an approach to strengthening
competitiveness. The revolution was introduced as a trend towards digitization and automation in
the global industry scenario (Oesterreich & Teuteberg, 2016).

3.3 Nine pillars of Industry 4.0

Nine Pillars of Industry 4.0

Diagram 3.2 The Nine Pillars of Industry 4.0

(Source : Annamacharya group)

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Industry 4.0 is based on technological advancements that will drive productivity growth in the
industry. Today, the world is facing a fourth wave of technological advances. Industry 4.0 is a
transformation that will be led by the nine pillars as described below:
3.4.1 Autonomous Robots

Robot automation technology is the complete use of machines without the use of any manpower.
Robots are capable of performing complex tasks and can improve product quality and productivity
(Chu, Jung, Lim & Hong, 2013). This is because the robot is assisted by sensor control that enables
it to understand and act on any task assigned to it. More recently, automation robots have been used
more frequently in various industries as their tasks are more extensive (Chu, Jung, Lim & Hong,
2013).

In addition, most industries use robots with the aim of facilitating complex tasks that are beyond the
power of labour. This is to ensure that the work performed is safe without any accidents (Rubmann
et al, 2015). Even so, the tasks that automation robots can still carry have certain limitations. The
following are examples of automation robots used in the industrial sector:

Diagram 3.3 The use of automation robots in the industrial sector

(Source : Robota Indonesia)
3.4.2 Internet of Thing

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In this modern age, the internet is no stranger to all of us. According to Chase (2013), the internet is
something interconnected or better known as the IoT, a network that creates network intelligence
that can control, program and detect automatically.

The term Iot was introduced by Kevin Ashton in 1999. According to Alaba, Othman, Abaker,
Hashem & Alotaibi (2017), Iot is the integration of sensors and objects that can communicate with
one another without the need for human help.

Iot contains three components that make up the driving force behind its application. The three
components are sensors and devices, connectivity and users.

For example, in the 1970s, ATM machines were introduced and it was the earliest example of Iot
use (Antill, 2015). This is because ATM machines use the internet to update users' accounts.

3.3.3 Big Data

Today's increasing technology has led to the increasing use of everyday data by the public.
According to Portela, Lima & Santos (2016), the presence of data is obtained through various
sources such as computers and smartphones. Therefore, data dumping requires more efficient
management than storing data in a database.

3V features and definitions are as shown in the diagram below:

Diagram 3.6 3V’s of Big Data

(Source : Pedro César Tebaldi Gomes, 2014)

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3.3.4 Simulation

Simulation is a three-dimensional (3D) animation that gives you a real picture of the process in real
life. For example, virtual reality (VR) technology. An example of using VR applications is to
simply use the VR glasses to see and feel the recordings in real life (Muhammad Nizam, 2018).

Here is an example of using Virtual Reality in the manufacturing industry :

Diagram 2.7 : Virtual Reality for UK manufacturing

(Source : HVMC Visualisation and Virtual Reality Forum, 2018)

3.3.5 Additive Manufacture

The manufacture of additives is defined by the American Society for Testing and Materials as the
process of unifying materials to create objects from 3D model data, which is layer upon layer (Lim
et al., 2012). This 3D printing technology has made it easy to produce prototypes for a product. This
technology not only comes in the form of printers but also 3D pens that are part of this technology.

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Diagram 3.8 Additive Manufacture
(Source : Norman Medi, 2019)

3.3.6 Cloud Computing

Cloud computing is an alternative way of storing large amounts of data over an internet connection
(Sage, 2012). According to Yu, Xiao & Zhang, (2016), cloud computing represents the discovery of
two trends in information technology namely IT efficiency and business agility. Cloud computing
has already been introduced by Oracle Cloud. However, before that, all data was stored in a data
center or farm server (Microsoft Azure, 2017).

Diagram 2.9 Cloud Computing

(Source : Katie Bates, 2018)
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3.3.7 Augmented Reality

Augmented Reality Technology was invented by Thomas P. Caudell. According to Techonologies

(2016), Augmented Reality is intended to present virtual information to the virtual world as we can
see below:

Diagram 2.10 AR applications in smart phones

(Source : Kayla Matthews, 2018)

According to Figure 2.10, when using a smart phone that uses an application to scan the image, it
will display a 3D design. Additionally, an example of popular AR applications today is the
Pokemon Go game.

3.3.8 CyberSecurity

Cyber security is one of the key cores of industry 4.0. Information security should be kept in mind
as information is now easily disseminated and user privacy is at risk. For example, data leaks and
personal information, hackers, and so on. Examples in an organization are intellectual property,
customer data and so on.

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3.4.9 Integration

Systems in the industrial era 4.0 will be widely connected, resulting in different computers
connecting via software that will facilitate data transmission and communication. This system is
very useful in the manufacturing industry. This is because production growth between factories will
be faster to update and operate. It will make the industry smooth and efficient.

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