Approach for Implementing Industry 4.
0 Framework in the Steel Industry
E. Govender1, A. Telukdarie1, M.N. Sishi1
1
Department of Engineering Management, University of Johannesburg, Johannesburg, South Africa
(esenthreng@gmail.com, arnesht@uj.ac.za, mike.sishi@gmail.com)
Abstract - The advancements of the Steel Industry require
a fully integrated manufacturing and business system for
real-time decision making. The main challenge in the Steel
Industry is the disconnection between the shop floor systems
such as Manufacturing Execution System (MES) and business
systems such as Enterprise Resource Planning (ERP). The
production process of Steel Industries requires visibility of
operations, planning and scheduling, lead times, quality
management, machine health, maintenance planning, to
name but a few aspects. This study investigates current
technologies and investments employed by steel companies
and how to leverage these existing investments to attain a
smart enterprise and subsequently manage current and
future steel demands efficiently. Industry 4.0 simplifies the
approach to implement complex systems in a structured and
logical manner in manufacturing organisations. This paper
deliberates the Industry 4.0 framework and the path to
implement Industry 4.0 in the steel sector.
Keywords – Industry 4.0, Steel, Cyber-Physical Systems,
ERP, MES, SDLC, Big Data, IoT
I. INTRODUCTION
Steel is a pivotal commodity in the economy and
assists in driving growth in developing nations [1-2]. The
importance is evident as the demand for steel has grown by
700 percent in the world since 1950 and it continues to
grow with projections of 150% growth by 2050 [3]. Fig. 1
depicts the world’s consumption of crude steel from 19th to
the 20th centuries. These statistics reveal that China
accounted for close to half of the world’s steel consumption
in 2011 [4].
Fig. 1. World Steel Consumption [4]
The Steel Industry impacts the following spheres in the
economy [5-8].
1. Manufacturing: The manufacturing industry
utilises steel machinery and equipment to build or
construct items for their customers.
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2. Wealth: The Steel Industry assists countries with
obtaining funds from corporate entities through
government taxes and legislation.
3. Reusability: Steel is a commodity that can be
recycled and reused in industry. The reusability
reduces the environmental impact on the globe
from steel production.
4. Employment: The steel sector provides jobs to
many individuals from raw materials providers,
manufacturing to end consumer utilisation.
5. Commerce: Countries trade in raw materials and
manufactured products of steel. The business
creates financial benefits to many countries that
companies trade with or produce steel products.
6. Community: People working in the Steel
Industry grow through education and experience.
The industry also grows the communities around
the manufacturing areas to improve the lives of
their employees and the country.
In the past twenty years, global community
development and economic growth have been dependant
on information technology [2]. However, steel industries
across the world are challenged on how to plan and define
procedures to implement or adopt new technology [9].
Specialised equipment in the manufacturing areas is
limited or unable to provide data required for operational
performance. The tasks are manual, and, in most
occurrences, data are captured in manual data entry sheets
[3].
Data in the Steel Industry is challenging to manage and
interpret. Devices that transmit or store data have either
specialised data algorithms, limited data sets or non-
standardisation [9]. The industry utilises historic
information to align with current trends with limited
reasoning or factual explanation [10].
Industry 4.0 framework defines a clear and decisive
approach in determining the integration between business
systems and manufacturing systems. Industry 4.0 further
enhances organisations by managing the product life cycle
and ensuring data flow and visibility from suppliers,
operations and customers. Industry 4.0 utilises
technologies such as the Internet of Things (IoT), Cyber-
Physical Systems (CPS) and Big Data.
A. Industry 4.0 Progression
In 2011 a “High-Tech Strategy Action Plan 2020” was
called to action by Germany. The action plan was primarily
defined to combine technologies such as CPS, IoT and Big
Data, to name a few. The action plan enabled things,
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individuals and procedures to be interconnected in a smart
manufacturing operation [11]. Fig. 2 illustrates the
evolution of industrial revolutions over the years [12].
Fig. 2. Industrial evolution adapted from [12]
The 1st industrial revolution in 1784 utilised steam-
powered mechanical manufacturing. The 2nd industrial
revolution implemented electrically charged devices. The
3rd revolution introduced automation to manufacturing
plants via the use of computers and control systems. The
4th industrial revolution defines the approach to smart
manufacturing with technologies in the Industry 4.0
framework.
B. Cyber-Physical Systems (CPS) and Industrial
Internet of Things (IIoT)
The ability of smart devices to transmit and receive
data packets from other devices and itself is defined as the
Internet of Things (IoT). In the industrial sector, intelligent
devices are enhanced to comply with the conditions and
protocols of a manufacturing operation. The collaboration
and communication of smart devices in the industrial
environment is referred to as the Industrial Internet of
Things (IIoT) [13].
IIoT enables Industry 4.0 integration layers to realise a
real-time data flow. There are three integration layers in the
Industry 4.0 framework [1]:
1. Vertical integration: Enables data flow from
manufacturing systems to the ERP.
2. End-to-end integration: Maintains and manages
data flow of products through product life cycle
management (PLM).
3. Horizontal integration: Enables information
sharing between the organisation supply chains.
Cyber-Physical Systems (CPS) collate data from IIoT
devices and renders notifications, alerts and decision
making based on the data received. CPS provides the
insights into manufacturing operations to enable an
organisation to act and improve on any deviations or
challenges it may foresee [10]. Furthermore, CPS
contextualises data from the manufacturing operations with
business data to provide a holistic view of the organisation
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in terms of work orders completed, work in progress, stock
produced and many processes. CPS gains data from the
operations concerning products, ensuring compliance with
quality standards as the product flows through the product
life cycle [14]. CPS also enables data flow between supply
chains to provide raw materials that are readily available to
meet customer demand based on operational output [15].
C. Big Data
The Steel Industry utilises a combination of manual
data entry and automated data to manage the organisation.
Contextualising and validating data from the multiple
sources is a challenge. IIoT provides a platform to share
data available in real-time; however, Big Data platforms
are required to store the information in a structured and
legible manner [16-17].
Fig. 3. Framework for big data and predictive analytics [17]
Big Data platforms enable the organisation to have a
single validated source of information, as shown in Fig. 3.
Information is checked and verified before being stored in
the big data platform. Manufacturing users are then able to
consume the data to be able to have visibility on the
organisation today as well as predict and forecast into the
future. An example is the ability to predict machine failures
based on the operating characteristic before the actual
event occurs. The event prediction limits downtime and
improves productivity in the organisation [16-18].
D. Smart Manufacturing
A smart plant is the one where devices, people and
things are interconnected. The data received from all data
providers are interpreted and validated to ensure the plant
is operating at an optimal level. The characteristics of a
smart plant [12], [18-19]:
1. Maintenance: Managing and implementing
maintenance strategies that adapt to the
information relayed from the devices to avoid or
reduce downtime.
2. Analytics: Providing visibility of data obtained
via IIoT and CPS devices to define strategies on
how to improve operational efficiency based on
the data collated.
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3. Monitoring: Real-time visibility of devices in
operations to ensure they can be managed and
maintained remotely via IIoT.
4. Process Optimisation: Tracking and managing
improvements implemented in the organisation
from data received and to be able to benchmark if
the changes are improving the operations.
5. Utilities Management: Aligning energy demand
and supply to ensure energy peaks are controlled.
6. Automation: Automating repetitive tasks to
improve on efficiencies and improve on quality.
7. Flexibility: The operations must be able to adapt
in changes to products specifications or quality
requirements without complex changeovers.
8. Supply Chains: Visibility between suppliers,
operations and customers to enable proactive
issue resolution via the enablement of real-time
data.
II. METHODOLOGY
Legacy systems and technologies that are in
production have plagued the Steel Industry. New
technology implementations are defined as “brownfields”
as they are deployed in silos with no standardisation [10].
Real-time data are collated and summated before being
shared with other systems. The data collation adds to
information being delayed or an inaccurate representation
of current production data [16]. Fig. 4 depicts the approach
followed to align Industry 4.0 framework in the Steel
Industry.
Requirments Analysis
System Design
Implementation
Testing
Deployment
Maintenance
Fig. 4. Systems Development Life Cycle
The research focuses on the requirements engineering
and system design steps of the Systems Development Life
Cycle (SDLC) process. The approach starts with
identifying current technologies and infrastructure utilised
in a Steel company in South Africa. The workshops and
interviews are conducted with various stakeholders
operating at different levels of this organisation. The
current and future state of the company is explored and
documented, resulting in multiple versions of Business
Requirements Specification (BRS) documents. The final
version of the BRS is used to produce such system design
artefacts as the Functional Design Specification (FDS) and
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Technical Design Specification (TDS). The design
documents present an architecture of a fully connected
enterprise which embraces the Industry 4.0 framework.
III. RESULTS
The requirements gathering and analysis phases
discover 116 independent systems that the organisation
utilised daily, as depicted in Fig. 5. There are duplicated
systems such as weighbridge solutions with no
standardisation or a central data repository across the
various sites. The systems are also not clearly defined as
ERP or MES systems and this result in some of the systems
being utilised for both MES and ERP functionalities.
Fig. 5. Systems Overview
The systems review process of removing system
duplication and attaining system consolidation results in a
total of 50 systems from the initial 116 identified. The 50
systems are after that aligned to the methodology defined
in Fig. 4.Error! Reference source not found. The
methodology applied highlighted a challenge in the
organisation defining an agreed business architecture into
which systems and the business process would reside. The
result of the study yields an architecture depicted in Fig.
6Error! Reference source not found. which is based on
Industry 4.0 framework for current and future requirements
in the Steel Industry. The following aspects are achieved
by the aforementioned architecture.
Fig. 6. Steel Industry Proposed Architecture
1. IIoT: IIoT devices have embedded electronics in
sensors or actuators to relay real-time data.
Information from sensors and machines are
propagated to PLC’s, historians and SCADA in a
unified structure. The information is thereafter
consolidated to the MES systems and available to
other specialised applications. The data can also
be available to the ERP or incident management
applications for process optimisation, equipment
monitoring or maintenance management.
2. Vertical Integration: IIoT devices makes
information available to the MES. The integration
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bus is utilised to manage information transfer
between the ERP and MES systems to coordinate
the message transports. IIoT relays data from
access control systems to the ERP for human
resources management and safety. Smart Energy
demand as operations start-up or shutdown is
controlled and managed via vertical integration.
3. End-End Integration: The product life cycle
management which entails designing the product,
defining the materials, production plans,
equipment routing, product quality and end of life
is enabled by the architecture. Data are made
available from IIoT devices to the ERP, MES,
LIMS and manufacturing systems. The
organisation is enabled to be flexible in managing
product characteristics changes or Smart
automating repetitive processes relating to the
product.
4. Horizontal Integration: The enablement of
connecting customers, suppliers and operations is
achieved via the architecture. Vertical integration
of real-time data flow and end-end integration of
the product enables operations to manage the
smart plant supply chain in terms of raw materials
required, production produced and customer
deliveries. Mobility solutions enable the
organisation to manage and execute process or
decisions real-time at the production operations.
5. Big Data: Big data comprises various layers of
information in an industrial organisation. The
information stored can start from IIoT sensor data
through to financial information. Big Data assists
in storing, managing and providing meaningful
smart plant analytics into the organisation via the
data repositories.
6. Smart Manufacturing
The following smart factory characteristics are
realised.
ƒ Supply Chain: The supply chain
activities for managing raw material
availability and ensuring customer
demand is met are enabled via IIoT. Data
are available in real-time on stockpile
levels with minimum threshold factors
enabled to re-order stock when raw
materials are low. This automated
process ensures the continuation of
production to meet customer demand.
ƒ Process Optimisation: The visibility of
information available from supplier,
customer and consumer enables the
organisation to plan and structure
production processes based on customer
demand and raw materials availability.
ƒ Automation: Repetitive tasks such as
manual data capture to enable reporting
is automated. Data are retrieved in real-
time from source systems. Consolidation
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and validation occur before being
displayed to the desired reporting
platform. This approach also enables
other users to have access to the new
validated data sources.
ƒ Monitoring: IIoT enables real-time data
extraction from devices. Rules are
applied to data pulled to alert individuals
of deviations from standard operating
conditions.
ƒ Flexibility: Operations can adapt to
product change-overs as there is
visibility on the time required to
implement a change based on the end-
end process integration.
ƒ Utilities Management: The cost impact
of starting a production operation during
peak periods of the day can be identified
and reported on by integrating electricity
and water meters to the MES.
ƒ Analytics: Reporting enables insights
into operations, customers, products and
many more. Data consolidated and
received via vertical, end-end and
horizontal integration provides the
aforementioned insights.
ƒ Maintenance: The architecture enables
pro-active, re-active and predictive
maintenance which is underpinned by
vertical integration.
IV. DISCUSSION
The adoption of a smart manufacturing strategy by
aligning to Industry 4.0 framework is an enabler to the
Steel Industry to achieve an integrated, real-time decision-
oriented organisation. Historic equipment with
unstructured or limited data available is a challenge for
real-time operations optimisation. Steel organisations are
challenged by segregating business data with
manufacturing data. Departments build solutions in
isolation from other departments with no formal
governance and procedures. This creates confusion in
terms of operational reporting and understanding of key
figures in the organisation. New technologies or systems
are implemented in silos to resolve an immediate or
pressing requirement without collaboration. This increases
systems complexity as additional resources would need to
be skilled to manage and operate new solutions.
The research defines a holistic system architecture that
aligns to Industry 4.0 framework as well as aligns to current
investments the organisations has adopted. Organisations
require the best in breed solutions but understand that
budget limitation may limit the approach one can take.
IIoT devices relay information to machines and other
devices to enable Cyber-Physical Systems (CPS). CPS
plays an integral role in enabling the organisation to track
orders, perform maintenance, manage quality to name a
few from the combined IIoT devices in the plant.
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MES receives data from IIoT devices as it can optimise
and manage the performance of the CPS in real-time.
Process Optimisations can then be implemented based on
real-time data to alleviate manufacturing bottlenecks or
reduce breakdowns.
The product quality management is controlled and
managed from information received from CPS and enables
the organisation to be flexible. The flexibility relates to
quick plant changeovers or product inclusions as the
information required to plan and coordinate these activities
is available to the entire organisation.
Vendors and customers have visibility on the
operations via IIoT which alerts external parties of raw
materials or products that are available to be dispatched.
MES receives the information from the IIoT devices,
consolidates, contextualises with ERP or other data sources
to notify or alert individuals or entities.
The vast array of real-time data available enables the
organisation to predict maintenance failures based on IIoT
data and predict sales on ERP data. The management and
cleansing of data are critical to ensure accurate predictions
to enable the organisation to adapt to current and future
demands.
The benefit of the Industry 4.0 framework is that it is
technology agnostic and can be defined and aligned to
current governance and procedures.
V. CONCLUSION
The paper illustrates the framework and architecture to
implement Industry 4.0 in the Steel Industry. The
characteristics and technologies proposed to align with the
studies requirement of aligning current and future demands
in the Steel Sector. Industry 4.0 promotes standardisation,
data centralisation and re-usability of technologies with the
framework. The long terms benefit of implementing the
framework can bring insights into challenges with existing
operations as well as improve on systems and procedures
already in place. We look forward to implementing the
design produced from the research into a Steel company in
the future.
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