Industry 4.

0 Challenges and Benefits

Abstract:
Industry 4.0 is the fourth industrial revolution, which pursues to transform industry into
a more efficiency and decentralize manufacture procedure, through coupling advanced
digitalization, internet technologies and advance intelligent machinery. This allows
companies to produce highly customized products in batches while keeping lower costs.
Despite the term Industry 4.0 is still a new model, it has demonstrated great benefits
within industry. It has introduced novel concepts such as smart manufacturing, process
system integration and additive manufacturing which are some of the main pillars of
these new industrial era. The aim of this study is to present an overview of Industry 4.0
and its main challenges to overcome while implementing.
Keywords: Industry 4.0, Smart Factory, Big data, decentralization, customization
1. Introduction:
Industry is one of thew main parts of economy nowadays, providing goods and services
needed to daily life. Since the first industrial revolution at 18th century, the introduction
of new technologies has led to better and efficient practices of manufacturing goods,
such as mechanization (Industry 1.0), intensive use of electricity (industry 2.0) and
digitalization (Industry 3.0) as Figure 1 shows [1]–[3]. In this context, Industry 4.0
combines the advantages of advanced digitalization coupled with internet technologies
and smart machinery to shift the industry into a new era. The main idea of Industry 4.0
is to link real objects (machinery) and people (workers) with virtual data from network
to provide a strong customization of products while maintaining the lower cost of mass
production[1], [4].

Figure 1. Industrial revolutions[3]

As Figure 1 presents, the first industrial revolution was characterized by the introduction
of the steam-powered machines, which help industry to mechanize difficult fabrication
process. The second industrial revolution was based on the introduction of electrically
powered mass production machines, and an intensive division of employees works. The
main driven of the third industrial revolution was the introduction od electronic
components to increase the factory automatization. Last this fourth industrial revolution
start in Germany with extensive use of IoT and cyber physical systems (Smart machines).

1.1. General concepts

• Cyber physical production system (CPPS): Dual system in which physical

processes are monitored by a virtual system that can make autonomous
decisions while communicating and cooperating all elements and subsystems,
within all levels of production[5].
• Information and communication technologies (ICT): this term refers to all
communication technologies such as internet, wireless networks, cell phones,
computes among other media applications which allow manipulate information
on digital form[5], [6].
• Internet of things (IoT): System of physical objects coupled with sensors,
software, and other technologies with the ability to transfer data over a
network[6], [7].
• Industrial Internet of things (IIoT): This term has a similar concept with IoT, the
main difference is that IoT tries to make customers lives easier, while IIoT works
to increase the safety and efficiency of manufacturing facilities[6], [7].

1.2. Production system (Smart factory)

Industry 4.0 aims to build a smart manufacturing platform by reducing the gap between
physical and digital assets within a factory with the introduction of smart automatization
and self-learning machines to improve the overall performance and time
management[5]. Therefore, A smart factory is concept derivate from IIoT, which
involves all production environment as a fully automatized and intelligent system
without human intervention. In industry 4.0, machines are CPPSs integrated with ICT
components that allow each machine to make their own decisions based on self-learning
algorithms and real-time data. Smart factory 4.0 is composed by nine pillars, as Figure 2
shows, that can transform individual cell productions into fully automatically and
intelligent production[3], [7].
 Figure 2. Smart Factory

1.2.1. Big data

A specialized software tools to analyze, process and extract data form a complex
and large data set. It is used to collect and evaluate data from different sources
of the production equipment and systems, to support the real-time decision
making. The analysis of previews data allows the software to find out trends and
issues occurring during the production to propose a solutions or production
plans [7], [8].

1.2.2. Augmented reality

It is composed by a variety of services to improve the worker understanding of
process required to perform a task. Through augmented reality, the user can
visualize step-by-step procedures of the task to be performed or even get visual
instructions in real time from experts with remote assistance systems [7].

1.2.3. Robots
These days the use of robots to perform complex tasks is becoming usual. In
addition, robots can be used to execute precise and repetitive work, where
human workers are restricted, in limited time. The use of autonomous robots
can improve the safety and production time, while maintaining the flexibility and
versatility of industry 4.0 requirements. In this context robots can also be used
to reorganized factory layout to perform better, depending on the customer
order [9].

1.2.4. Internet of things

As aforementioned interconnect elements and production subsystems with
intelligent communication protocols to performed autonomous decisions. This
will improve the manufacturing time and reduces the break downs in production
factories. In addition, material motion can be agile and trackable, and storage
intelligent [6], [7].

1.2.5. Simulation
 Simulations are held to mirror physical process in a virtual model, including the
machines, products, and workers to find the best machine setup time and obtain
preliminary results of production. The use of simulation con not only reduce
production time but also is used to reduce possible failures during production.
Simulation data is also used to improve the autonomous response of self-
machine decision making [7], [10].

1.2.6. Cybersecurity
The extensive use of standard communication protocols of Industry 4.0 increases
the need cybersecurity to protect critical industrial systems and industrial data.
Cybersecurity not only protect form external hazards, but also restricted the
access of information and to control machines from employees. This will increase
the industrial security and prevent possible human errors [11].

1.2.7. System integration

The full digital integration and automation of manufacturing process involves a
vertical and horizontal integration all across the production system. This involves
the automatization, communication, and cooperation of each element and
subprocess along the product manufacture. Horizontal integration. While
horizontal integration includes the integration of machinery, equipment and
production lines within a factory, vertical integration involves the integrations of
all departments of the company, including managing, financial, and sells. This
allows to take more efficient decisions over all production cycle [1], [3].

1.2.8. Cloud computing

Industry 4.0 needs large servers to save the data obtained and a fast delivery of
these data when needed. Therefore, cloud computing refers is a concept where
devices are connected to share information one to another by using internet. In
this case the servers may not be in the same plant [8], [11].

1.2.9. Additive manufacturing

Additive manufacturing are methods used to produced small batches of
customized products. This is obtained by decentralized manufacturing systems
to reduces transport distances. It is a process where materials are aggregated,
overlapping layers and procedures to obtain a final product. As an example, is
possible to use 3D printers [12].

1.3. Issues and challenges

As every change in industry, the inclusion of new technologies presents its own
problems. Industry 4.0 presents several challenges due to the complexity
implementation and integration of all aspects involve [3], [5], [7].

• Intelligent decision making: For well decision making it is necessary a high

autonomy of machinery and previews data of all products done. Without the
 precise technology is difficult for the overall system to run at best performance.
Since most of technology is new, it is not used and its full potential.
• Data sensitivity: The need of more complex algorithms to evaluate data obtained
is problem, since many companies do not have proper software to evaluate it.
Another problem from data is the speed of the protocols used to shared it since
they are not capable to transfer high volume data in real time .
• Cybersecurity: as aforementioned cybersecurity is key to maintain a smart
factory running. These days cyber-attacks are becoming frequent, so it’s
necessary to develop new security protocols to avoid malware and data stealing
[11].
• Investment: most of Industry 4.0 is based on the usage of new technology, which
mostly has high cost. This increases significantly the initial investment cost.
• The Gap of technical skills: as above-mentioned industry 4.0 requires
development of new technology, thus it involves highly specialize workers
needed to control or program the protocols required. Only with the right
workforce will business models be able to successfully implement new
technology and maintain operations.
• The genuine interconnection of all departments: in this context every
department should have access to information of the other departments to
make the best decisions during production. Nevertheless, it is difficult to reach
this state since it involves human, machine and data resources which have to be
autonomous. So, one decision may disturb other departments.
• Further increasing mechanization and automation: as industry advances more
and new technologies will be required to meet the demand.
• Miniaturization: there is a need to miniaturize the different components of a
machine to reduce the space used by it. This challenge have become more
difficult with the time since now is required nanotechnology to improve in this
area.

1.3.1. Layout
Most of layouts design before Industry 4.0 were based on minimizing the material
handle distance. However, new layout methods also optimize the energy saving to tackle
environmental problems. The successful integration of new technology relies on
businesses developing well-designed systems that consider how the technology will
optimize departments to allow employees to do what they’re best at [10]. In this context
with Industry 4.0 six new layout design principles have been developed:

• Interoperability: it is the ability of machines, elements, and workers to

communicate between each other. As all activities must be connect between
each other, it is necessary to understand how each element, such as data storage,
space of work, is interacting between each other to perform the layout.
• Virtualization: this concept is similar to the simulation, by developing a mirror
model is possible to optimize machine performance, allowing ‘what if’ scenarios
 to be run and the impact of new equipment to be tested before changing the
layout.
• Decentralization: The decentralization allows cyber-physical systems to make
choices independent of people or other machines. The layout may not result in
assembly line. This helps to improve a faster decision taking process.
• Real time capability: this is the capability to collect and analyze data in real time,
then found micro trends to immediately respond to failures in production lines
or take a proactive approach to anomalies or inefficiencies.
• Service orientation: Layout in industry 4.0 always need to be aware that it is
necessary to adapt to customer’s changes and needs.
• Modularity: This is the ability to adapt to changes as the industry needs. It is
possible to gain modularity by split into small and well-defined teams that focus
on specific elements, or by implementing modular systems that allow to select
only what is needed.

1.3.2. Supply chain

Industry 4.0 have altered the traditional working way. As customers’ expectations
change it is necessary to adapt and develop more efficient ways to manage the supply
chain, the main challenges that supply chain brings with industry 4.0 are [13]:

• Faster delivery and production: This will not only be required from the providers
but also for the company. Forecasting is needed to be perform more often since
market trendings are changing really fast.
• Higher flexibility: planning needs to be a continuous process that is able to react
dynamically to changes from the customers
• Higher customization: as aforementioned a high customization is one of the
principals of Industry 4.0.
• Accuracy: Integrate data of suppliers, service providers, etc. to provide real-time
end to end transparency through all supply chain.
• Resource efficiency: Supply chain needs to be automatized by using robots to
handle material. To reduce costs and increase ecological benefits related to
more efficient resources movement.

1.3.3. Scheduling
The schedule of operations is part of the production planning process. Scheduling
involves the allocation of the production resources to generate a workflow. Schedule
process requires a large amount of previews data and order information. The difference
between Industry 4.0 and its predecessors is the decentralization, in addition, cloud
computing allows virtualizing and scaling resources in a dynamic way. Also, the usage of
bigdata allow accessing and processing large amounts of data generated in production
processes, which increases the difficult to perform a simple scheduling. This results in a
dynamic schedule process [14].
1.3.4. Maintenance
Maintenance is a part that supports the production operations. Factory maintenance is
one of the principal costs in production, nevertheless, is an important one since it allows
to operate the company as its best performance. As industry 4.0 emerges, provides new
opportunities to improve maintenance by using the big data analyses, additive
manufacture, and robotics. These tolls allow to perform predictive and more efficient
maintenance. However, it also presents a challenge, especially with the maintenance
schedule since it should consider all the data from other sources, and it may be variable
[15].
1.4. Benefits of Industry 4.0
• Improve productivity: by using big data and enables machine self-decisions, the
time lead decreases which allows to increase the productivity
• Improve efficiency: by using new technology the overall efficiency will increase,
also by using Industry 4.0 principals is possible to produce more and faster while
allocating your resources more cost-effectively and efficiently.
• Increased Knowledge Sharing and Collaborative Working: since every
department is communicated with each other, this allows learning from other
departments not only for employees but also for machines.
• Flexibility and agility: Its easier to make changes on products or introduce new
products. By simulating is possible to reduce manufacturing time.
• Easy tracking: Since data is obtained all time, is possible to track any product
during all manufacturing process.
• Better customer experience: with automatic tracking is possible to solve
problems quickly. Also allows to customize products.
• Reduces Costs: Production cost are reducing since smart factories are
automatize and operate always efficiently.

2. Conclusions:
This work mainly focusses on the challenges and benefits of implementing the fourth
industrial revolution (Industry 4.0). From these main points were identified.

• Industry 4.0 allows intelligent, efficient and customized production with good
economic benefits.
• Industry 4.0 is not a new idea, nevertheless, is challenging one since it involves
the integration of all departments and the automatization of a company. One of
the most challenging concepts is the development of new protocols to
communicate the hole production system.
• With the development of new technology, industry 4.0 changes continuously.
• The goods produce by Industry 4.0 are supported and monetarized during all
supply chain. To provide new data to the production process.
• Scheduling is a hard task in industry 4.0 since it could change dynamically
depending on the data and machine availability.
 • Maintenance could improve significantly by using the continuous data to reduces
the break downs to repair a machine. Also is possible to use robots to perform
this activity where human access is not possible.
• Layout became a challenging procedure since it is necessary data from all
machines and process on the plant, to consider the path with lowest waste of
energy and lowest handle material distance. However, due to modularization,
decentralization and additive manufacturing, the space need to install all
equipment is lower than before.
Of course, Industry 4.0 present several challenges to its application, it also presents high
opportunities for a company to grow. Theses days trending are changing faster than ever,
and Industry 4.0 allow companies to be more flexible and use more efficient their
machinery to overcome this demand.
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