The Third Industrial Revolution

Individual Assignment
Topic Name: “The Third Industrial Revolution”

BUS503: Environment and Business

Section:1

Prepared for:
Dr. Akbar Ali Khan
Instructor, BRAC Business School
BRAC University

Prepared by:
Kazi Thasmia Kabir
ID- 19164056
MBA Program, Fall 2020

Date of Submission: 7th December, 2020

 Summarize the article
According to Paul Markillie “As manufacturing goes digital, it’ll change out all recognition”.
Nowadays, tools are changing in an exceedingly number of remarkable ways that will transform
the long run of manufacturing. Euro Mold named as big trade fairs held in Frankfurt, which shows
machines for creating prototypes of products the tools needed to put those things into production
and every one manner of other manufacturing kit. Old fashioned engineers worked with stamping
presses, drills, lathes and molding machines. Euro Mold trade fair exhibits no oily machinery
tended by men in overalls.

At the most recent Euro Mold fair, a group of machines was on display three dimensional (3D)
printers. Instead of bashing, cutting material and bending the way it always has been. These
printers build things by depositing material, layer by layer. And that’s why the process is more
properly described as additive manufacturing. When makers are posing for making one hammer,
it’d be prohibitively expensive for one hammer. Because the manufacturers need to produce a
mold, cast the head, machine it to acceptable finish, turn a wooden handle and so assemble the
parts. In keeping with economics of scale, if they’re producing thousands of hammers, every one
of them will be less expensive. For a 3D printer, though economics of scale matter much less. Its
software is endlessly tweaked and it can make almost anything.

Addictive manufacturing isn’t yet good to create an iPhone or car, but it’s already getting used to
personalized covers for iPhones and make specialist parts for cars. Although it’s still a
comparatively new technology, most of the people probably already own something that was made
with the help of a 3D printer. It might be a pair of shoes, printed in solid form as much a design
proto-type before being produced in bulk. Also, it could be piece of jewelry and cast from a mold
made by a 3D printer.

Addictive manufacturing is simply one in all variety of breakthrough’s leading to the factory of
long run, and standard production equipment is becoming smarter and more flexible. Volkswagen
has a new production strategy called modular Querbaukasten. By standardizing the parameters of
certain components, like the mounting points of engines, the German carmaker hopes to able to
produce all its models on identical production line.
Factories are becoming extremely more efficient because of automated milling machines that can
swap their own tools, cut in multiple directions and ‘feel’ if something is going wrong together
with robots equipped with vision and other sensing systems. New manufacturing techniques make
production less expensive and faster to respond to changing local tastes. Because the cost of labor
as a proportion of the total cost of production will diminish, if products become declines.

Probably materials being used to make things are changing as well. Carbon-fiber composites, for
example, are replacing steel and aluminum in products ranging from mountain bikes to airliners.
Everything in the factories will be run by smarter software for the long run. A new wonder-
communities offering 3D printing and other production services that are a bit like Facebook are
already forming online. That might be called social manufacturing. Manufacturing companies
makes up only about 11% of America’s GDP, but it is responsible for 68% of domestic spending
on research and development.

A new research project on America firms is production in the Innovation Economy, which is
looking at how companies compete. Many firms feel that it’s not worth training people if they’re
likely to leave to work for someone else. So, the way of maintain relationship between community
colleges and local firms is to develop training programs. Sometimes the firms donate
manufacturing equipment to the colleges. The digitization of manufacturing will make training
easier. Many people working in factories are providing that are crucial to manufacturing. Some
manufacturers say that many people are choosing engineering and manufacturing careers when
new technology 3D printer arrive. In that situation unemployment become high. Industrial clusters
are the most successful incubators for new firms. Firms clusters together for a various reason: the
concentration of specialist services, the skills that are available in a particular area and the venture
capital from investors with a close understanding of their market. Usually, the process of coming
up with new ideas and the means of turning those ideas into products are closely linked. This
relationship is more intimate with new manufacturing technologies. And in the biological sciences
the development of manufacturing capabilities is closely link with that product.

Nanotechnology makes it possible to manufacture on a tiny scale, new therapeutic substances

carrying information on their surfaces that can be used to direct them to particular cells in the body.
The drugs could be valuable for the diseases like cancer and that are delivered by such surfaces.
For the most part, making drugs remains an old-fashioned batch manufacturing process. This
includes assembling ingredients, often from different countries, processing them in a clinical plant
into a batch of drug substance, then turning that substance into pills, liquids or creams in another
factory, which might be in yet another country. This process is time-consuming and expensive.
But in Boston laboratory, another way of making drugs is being developed. Raw materials are put
into one end of a machine fill with tubes, belts, cogs, electronics and pills pop out of the opposite
end.

China’s first special Economic Zone workshops began to grow and glistening skyscrapers started
to rise. Foxconn is the well-known factories and owned by Hon Hai precision industry. It’s a
Taiwanese company and also the biggest manufacturing complexes in China, and employing some
230000 people. A number of Apple’s iPhone and iPad are assembled here. Labor cost in China
was undoubtedly cheap and that’s why Hong Kong’s clothing and toy factories moved to mainland.

Some labor-intensive businesses are now moving from the coastal regions to inland China, where
costs are lower, though the infrastructure may not be up the mark. Especially a number of firms,
those making clothes, shoes, have upped sticks and move to Bangladesh, Indonesia, Cambodia and
Vietnam. For instance, Nike used to make most of its trainers in China. Vietnam became the
company’s biggest production base worldwide in 2010. Yet for some manufacturers low wage
costs are becoming less important because labor represents only a small part of the overall cost of
making and selling their products. Some jobs are yet returning to developed countries. With
Chinese wage costs rising, America’s productivity improvements can help tip the balance,
especially when American firms invest in more automation. Still robots can be used anywhere to
reduce labor costs.

Most of the world’s solar panels were made by American, European and Japanese firms with the
help of various government-backed incentives, Chinese manufacturers piled into the business. So,
China has now captured more than half the world market for the most widely used solar panels.
And it relied on photovoltaic cells made from crystalline silicon. The producers of solar panel are
bashing it out, often losing money, in anticipation of a huge market to come when solar panels
reach ‘grid parity’. Grid parity is the ability to match fossil fuels in supplying power to national
grids without subsidy. The boss of China’s Suntec power is Zhengrong Shi, which has become the
world’s biggest producer of solar panels. He thinks that the market is now showing signs of picking
up that china could attain grid party within three or four years.
The installation price of solar power in America is currently around $6.50 per watt for a house.
Western firms can import solar power cells from china and make a good living installing them.
But there are manufacturing advances in the pipeline that might level the cost of producing silicon-
based cells in America and China. The cost of making a complete solar panel in America is around
25% higher than making it in China and shipping it to the west coast of America. And much of
China’s cost advantage is thought to come from cheaper raw materials, lower wages and the lower
cost of capital. After factoring in the manufacturing advances already in the pipeline, the cost of
an American-made solar panel will fall by more than half of around 50 cents per watt within a
decade. Solar panels that can be made for 40-75 cents per watt are expected to provide grid parity
in America. The variation reflects regional differences in the amount of sunshine and the price of
electricity.

Most of the production innovations now under way would chip away at China’s advantages. New
production methods involve thinner wafers, reducing the number of silicon required. And cells
will become more efficient, more automation will cut labor costs and simplified production will
reduce capital costs.

Manufacturers are increasingly working with new, game-changing ingredients. American and
European firms have sought salvation in high-end manufacturing from the onslaught of low-cost
producers. That increasingly involves becoming more inventive with materials. This article will
observe a number of such innovations, including the special casting system for the Rolls-Royce
turbine blades as well as the use of carbon fiber, new battery technology, recycled plastic waste
and others. As developing countries become more sophisticated and richer, they want to make
luxurious products like aircraft, jet engines and high-performance sports cars. Western firms
subcontract part of the production and trying to build up the capabilities of their industries. And
some things are not for sharing because they are too important to preserve a product’s competitive
advantage.

In Derby factory, where Rolls-Royce makes the turbine blades, is also somewhat unusual. Rolls-
Royce’s head of manufacturing: ‘product technology is the key to survival, and manufacturing
excellence provides one of the biggest opportunities in the future’. New products used to begin
with designs and proceed to materials selection then manufacture. One product of these efforts isa
new industrial battery. Making a battery tough enough to be used in a hybrid locomotive. A
chemistry supported nickel and salt provided the desired energy density and robustness.

Carbon fiber that particularly interests General Electronics and other manufacturers. The large-
scale use of carbon fiber began in aerospace. Both Airbus and Boeing aircraft use it extensively
instead of aluminum. There is also a big manufacturing advantage: large sections, like main area
of a wing, can be made in one go rather than being riveted together from lots of individual
components. It is the strength, lightness and potential saving on labor offered by carbon fiber that
creates the material attractive for a range of products. Carbon fiber is now trickling down from
supercars into more everyday models. BMW is launching a new range of electric and hybrid
models which use carbon-fiber bodies. A carbon-fiber car might even prove stronger in crash test.

Product manufacturing with a 3D printer changes the rules of manufacturing. 3D printer work as
an additive process, and building objects up layer by layer. This printing was originally conceived
as a way to make one-off prototypes, but as the technology is getting better more things are being
printed as finished goods. One-off prototypes can be hideously expensive to produce, but a 3D
printer can cut down the cost by a huge margin. Lots of consumer, mechanical parts, goods, shoes
and architects’ models now appear in a 3D printed form for appraisal by engineers, clients and
stylists before getting the go-ahead. Millions of shells for hearing aids and dental crowns are
already being made individually with this printer. Weight savings are the part of the attraction of
3D-printed parts. The printer is likely to print the item as a complete part that requires no assembly.
3D printing is creating a new design language and items often have an organic and natural look.

Maximum new production methods in next revolution will require fewer people working on the
factory floor. All credit goes to smarter and more dexterous robots. An enormous Japanese
producer of robot is FANUC, has automated some of its production lines to the point where they
can run unsupervised for several weeks. Yet manufacturing will still need people because all these
automated machines require someone to service and supervise them. Some machine minders
operators often call for a broader range of skills. An assembly component remains too fiddly for
robots to do well, which is why assembly is often subcontracted to low-wage countries.
Industrial robots are becoming better at assembly, but they’re expensive and need human experts
to set them up. They have a long way to go before they can replace people in many areas of
producing. Investing in robots are often worthwhile for mass manufacturers like carmakers.
Carmakers remain the largest users of such machines, but even in highly automated car factories
people still do most of the final assembly. Generally, robots are too expensive and inflexible for
small and medium-sized businesses. But the following generation of robots are going to be
different. Not only they’ll be cheaper and easier to set up, but also work with people rather than
replacing them.

Mass-produced goods will still be made in factories using traditional subtractive methods for an
extended time. There will also be some super-high-tech factories, like GE and Rolls-Royce. Those
factories make smaller quantities of highly specialized products like jet engines.

However, manufacturing revolutions never happen overnight but already well under way. The
enough transformative research is going on in the biological sciences and in nanotechnology to
spawn entirely new industries such as making batteries from viruses. If the use of carbon-fiber
composites were to spread from sports cars to more work day models, the huge steel-sampling
presses and robot welding lines would vanish from car factories. Addictive manufacturing, like
anything else digital and already become both less expensive and more effective. Nowadays 3D
printers make things one at a time or in small batches. But if they work in a continuous process
then technological improvement goes up. Also, things will be faster, more flexible and cost
effective.

According to this article technology has developed to the purpose where people are imagining
industry. The Forth Industrial Revolution is all about drastic change within the manufacturing
industry so everyone can participate during this process. The strengths of Additive Manufacturing
consist those areas where conventional manufacturing reaches its limitations. The benefit of
technology where a new approach to design and manufacturing is required so on come up with
solutions. Additive Manufacturing provides the optimization and integration of functional features,
a high degree of design freedom, the manufacture of small batch sizes at reasonable unit costs and
a high degree of product customization even in serial production.
 Global impact of Third Industrial Revolution

Our Industrial civilization is at a crossroads. Fossil fuel energies and oil that frame the industrial
way of life are sunsetting, and also the technologies made from and propelled by these energies
are antiquated. The whole industrial infrastructure built off fossil fuels is aging and unrestored. As
a result, that unemployment is rising to dangerous levels everywhere the world. Consumers,
businesses, and government are suffering from debt and living standards are declining everywhere.
The start of the good Recession within the summer of 2008, the business community, governments,
and civil society are embroiled in a very fierce debate over how to restart the global economy.
However, it’s increasingly clear that the second Industrial Revolution is dying and third industrial
included CO2 emissions are threating the viability of life on earth.

The great economic revolutions occur when new communication technologies converge with new
energy systems. New energy revolutions make possible more expansive and integrated trade. In
the age of 19th century, the introduction of public schools gave rise to a print-literate work force
with the communication skills to manage the increased flow of commercial activity by coal, cheap
steam powered print technology, and steam power technology, ushering in the First Industrial
Revolution. In the age of 20th century, centralized electricity communication like radio, television
and telephone became the communication medium to manage a more complex and dispersed oil,
the mass consumer culture, auto, and therefore suburban era of the Second Industrial Revolution.

Nowadays, Internet technology and renewable energies are getting down to merge to form a new
infrastructure for a Third Industrial Revolution which will change the way power is distributed in
the 21st century. By this we can now generate and information via online. And within the coming
era, millions of people will produce their own renewable energy in their houses, offices, factories
and share green electricity with one another in an ‘Energy Internet’.

The foundation of a Third Industrial Revolution infrastructure will create thousands of latest
businesses, a lot of jobs and lay the premise for a sustainable global economy within the 21st
century. There are various pillars in Third Industrial Revolution and every pillar can only function
in regard to the others. The five pillars are- (1) shifting to renewable energy, (2) transforming the
building stock of each continent into micro power plants to collect renewable energies on-site, (3)
developing hydrogen and other storage technologies in every building and throughout the
infrastructure to store intermittent energies, (4) using internet technology to transforms the power
grid of each continent into an energy internet that acts similar to the web, and (5) transitioning the
transport fleet to electric plug in and fuel cell vehicles that may buy and sell green electricity on a
smart, continental, interactive installation.

The creation of a renewable energy regime, partially stored within the type of hydrogen, distributed
via green electricity internet, loaded by buildings, and connected to plug-in, zero-emission
transport, opens the door to a Third Industrial Revolution. The five pillars are together making up
an indivisible technological platform and an emergent system whose properties and functions are
qualitatively different from the sum of its parts. So, the synergies between the pillars create a new
economic paradigm that can transform the world. The financing on private/public by the Third
Industrial Revolution infrastructure build-out across the world will be at the very top of the agenda
for the financial community and international banking in the first half of the 21st century.

The last great Technological Revolutions is that the Third Industrial Revolution will lay the
foundational infrastructure for an emerging collaborative age. The business practices of the Third
Industrial Revolution; and the traditional, hierarchical organization of economic and political
power will collapse to lateral power organized modally across society. Lateral power may be a
new force within the world. Steve jobs and therefore the other innovators of his generation took
us from expensive centralized main-frame computers, owned and controlled by some of worldwide
companies, to cheap desktop computers and cell phones, allowing billions of individuals to attach
up with each other. The establishment of new green energy industries are improving performance
and reducing costs at an accelerating rate. The emerging Revolution is organized around
distributed renewable energies that are found everywhere and most of the part like sun, wind,
hydro, geothermal heat, biomass, ocean waves and tides.

Now a new digital manufacturing revolution opens up the possibility of following suit in the
production of durable goods, while the Third Industrial Revolution allows millions of people to
produce their own virtual information and energy. In the coming era, everyone can potentially be
their own manufacturer as well as their own power company and web site. The process is called
3D printing, it is already coming online and promises to change the entire way of industrial
production. It can also produce multiple copies like a photocopy machine. All types of goods, from
jewelry to mobile phones, aircraft parts and auto, batteries, medical implants are being printed and
come out in what’s being termed ‘additive manufacturing’ distinguishing it from the ‘subtractive
manufacturing’ which involves reducing, pairing off materials and then attaching them together.

However, all managers and entrepreneurs will need to be educated to take advantage of cutting-
edge new business models, various skill levels and managerial styles of the Third Industrial
Revolution workforce. That will be qualitatively different from those of the workforce of the
Second Industrial Revolution. Generally, the TIR offers the hope that we can arrive at a sustainable
post-carbon era by mid-century. And we have the science, the game plan, and the technology to
make it happen.
 The impact of the Third Industrial Revolution in Bangladesh

During the war of liberation in 1971, the industry sector was severely damaged. Replacement and
rehabilitation cost were estimated at taka 291 million of which taka 223 million was estimated for
public sector enterprises. The Third Industrial Revolution have some positive and negative impacts
on Bangladesh. The economy of Bangladesh is a developing market-based economy and therefore
the 35th largest country in the world in nominal terms, 30th largest by purchasing power parity.
Bangladesh was the world’s 7th fastest growing economy with a rate of 7.3% real GDP annual
growth within the first quarter of 2019. Dhaka Stock Exchange and Chittagong Stock Exchange
are the financial centers of the country. Bangladesh is amongst the world’s fastest growing
economies.

Bangladesh’s economic performance over the last decade has got praise from the international
community. The World Bank often cite Bangladesh as an exemplary case for economic
development. The apparel sector of Bangladesh is the 2nd largest player within the world, after
China. This sector accounts for 83% of total export and 12% of total GDP. Remittances generated
USD 14.9 billion in terms of foreign currency inflow as of FY 2017-18 and 52% of total GDP.
The key export sectors of Bangladesh include textile, jute, leather goods, fish and seafood. It’s also
progresses self-sufficient industries in pharmaceuticals, automobile assembling, oil refining,
telephone equipment, insulators and sanitary wares. Bangladesh also has substantial reserves
of natural gas and is Asia's 7th largest gas producer. To develop the countries information
technology sectors, Bangladesh government promotes Digital Bangladesh Scheme. Bangladesh
has also received FDI from different countries.

Bangladesh is a member of the South Asian Association for Regional Cooperation, The World
Bank, the International Monetary Fund, the Asian Infrastructure Investment Bank and therefore
the World Trade Organization. Trade organization are SAARC, SAFTA, IMF, BIMSTEC, AIIB,
Common Wealth of Nations The positive impact of TRI is increasing economic process, becoming
digitalized day by day, investment by MNCs, establishing mega project like (Padma bridge, metro
rail), industry getting stronger in (RMG, IT sector etc.), transaction and communication cost are
low etc. The negative impact like destroying jute mills industries, rising unemployment,
environmental degradation, new technologies of MNC’s produce goods in their homeland etc.