MODULE 1
INDUSTRY 4.0 is revolutionizing the way companies manufacture, improve and distribute
their products. Manufacturers are integrating new technologies, including Internet of Things
(IoT), cloud computing and analytics, and AI and machine learning into their production
facilities and throughout their operations. There are four design principles identified as integral
to Industry 4.0:
Interconnection — the ability of machines, devices, sensors, and people to connect and
communicate with each other via the Internet of things, or the internet of people (IoP)
Information transparency — the transparency afforded by Industry 4.0 technology provides
operators with comprehensive information to make decisions.
Technical assistance — the technological facility of systems to assist humans in decision-
making and problem-solving, and the ability to help humans with difficult or unsafe tasks
Decentralized decisions — the ability of cyber physical systems to make decisions on their
own and to perform their tasks as autonomously as possible.
COMPONENTS OF INDUSTRY 4.0
1. Greater Customization Through Additive Manufacturing
Commonly known as 3D printing, additive manufacturing is the process of building an object
by depositing material in multiple layers. The use of additive manufacturing has certainly
become trendy, but it has yet to reach its full potential. Industry 4.0 provides the technological
infrastructure for manufacturing enterprises to use 3D technology at scale, producing smaller
numbers of more customized products. And because additive technology can be done on
demand, production time for those customized products is also significantly shorter. One
hallmark of a true Industry 4.0 enterprise, therefore, is the robust integration of additive
manufacturing throughout the supply chain, not only to produce products for end users, but
also for the manufacture of customized machine parts within the supply chain itself.
2. Full Integration of Advanced Analytics
, Virtually all supply chain leaders currently rely on analytics to inform and optimize production.
Indeed, the implementation of analytics consistently yields higher production quality, along
with reduced downtime and improved customer experience — all contributing to a better
bottom line. But these analytics are often disjointed or orphaned, existing without cohesive
connection to an overarching system. As the manufacturing world continues to evolve
toward Industry 4.0, analytics systems are simultaneously evolving. The Industry 4.0 supply
chain uses advanced analytics and Big Data to inform end-to-end (E2E) visibility. Up-to-the-
minute data are available to support real-time decision-making and bring visibility to the entire
supply chain, both within and without individual organizations.
3. A Move Beyond Postmodern ERP
The Postmodern ERP mindset has just begun to catch hold in the supply chain industry, yet
Industry 4.0 pushes the boundaries of even this cutting-edge approach. Industry 4.0 calls for a
truly agile supply chain that integrates IT systems both vertically and horizontally. Using robust
data-integration networks that span usually-disconnected departments like engineering and
customer services, the Industry 4.0 company is much more cohesive. And because these data
systems can communicate beyond the boundaries of the company, they provide unprecedented
integration, resulting in a much more agile supply chain.
4. Widespread Incorporation of the Internet of Things
Another aspect of that integration is the incorporation of networked machines and sensors
throughout the supply chain. The Internet of Things (IoT) refers to computing technology
embedded in devices, which can communicate with other devices and people through the
internet. Currently IoT is most often found vertically within an organization; for instance, the
supply chain's devices and sensors communicate with each other, providing useful but limited
intelligence to the manufacturing control system. The next phase, however, incorporates the
IoT to communicate across departments as well. Much like IT system software will be
integrated, so too will devices, sensors and humans throughout the organization. The Industry
4.0 supply chain fully leverages the IoT for streamlined, agile operations with far greater
visibility and transparency.
5. Increased Reliance Upon the Cloud
The Industry 4.0 supply chain is a data-generation machine. It's constantly producing insights
in real time, requiring incredible speed and precision, not to mention the capacity for instant
INDUSTRY 4.0 is revolutionizing the way companies manufacture, improve and distribute
their products. Manufacturers are integrating new technologies, including Internet of Things
(IoT), cloud computing and analytics, and AI and machine learning into their production
facilities and throughout their operations. There are four design principles identified as integral
to Industry 4.0:
Interconnection — the ability of machines, devices, sensors, and people to connect and
communicate with each other via the Internet of things, or the internet of people (IoP)
Information transparency — the transparency afforded by Industry 4.0 technology provides
operators with comprehensive information to make decisions.
Technical assistance — the technological facility of systems to assist humans in decision-
making and problem-solving, and the ability to help humans with difficult or unsafe tasks
Decentralized decisions — the ability of cyber physical systems to make decisions on their
own and to perform their tasks as autonomously as possible.
COMPONENTS OF INDUSTRY 4.0
1. Greater Customization Through Additive Manufacturing
Commonly known as 3D printing, additive manufacturing is the process of building an object
by depositing material in multiple layers. The use of additive manufacturing has certainly
become trendy, but it has yet to reach its full potential. Industry 4.0 provides the technological
infrastructure for manufacturing enterprises to use 3D technology at scale, producing smaller
numbers of more customized products. And because additive technology can be done on
demand, production time for those customized products is also significantly shorter. One
hallmark of a true Industry 4.0 enterprise, therefore, is the robust integration of additive
manufacturing throughout the supply chain, not only to produce products for end users, but
also for the manufacture of customized machine parts within the supply chain itself.
2. Full Integration of Advanced Analytics
, Virtually all supply chain leaders currently rely on analytics to inform and optimize production.
Indeed, the implementation of analytics consistently yields higher production quality, along
with reduced downtime and improved customer experience — all contributing to a better
bottom line. But these analytics are often disjointed or orphaned, existing without cohesive
connection to an overarching system. As the manufacturing world continues to evolve
toward Industry 4.0, analytics systems are simultaneously evolving. The Industry 4.0 supply
chain uses advanced analytics and Big Data to inform end-to-end (E2E) visibility. Up-to-the-
minute data are available to support real-time decision-making and bring visibility to the entire
supply chain, both within and without individual organizations.
3. A Move Beyond Postmodern ERP
The Postmodern ERP mindset has just begun to catch hold in the supply chain industry, yet
Industry 4.0 pushes the boundaries of even this cutting-edge approach. Industry 4.0 calls for a
truly agile supply chain that integrates IT systems both vertically and horizontally. Using robust
data-integration networks that span usually-disconnected departments like engineering and
customer services, the Industry 4.0 company is much more cohesive. And because these data
systems can communicate beyond the boundaries of the company, they provide unprecedented
integration, resulting in a much more agile supply chain.
4. Widespread Incorporation of the Internet of Things
Another aspect of that integration is the incorporation of networked machines and sensors
throughout the supply chain. The Internet of Things (IoT) refers to computing technology
embedded in devices, which can communicate with other devices and people through the
internet. Currently IoT is most often found vertically within an organization; for instance, the
supply chain's devices and sensors communicate with each other, providing useful but limited
intelligence to the manufacturing control system. The next phase, however, incorporates the
IoT to communicate across departments as well. Much like IT system software will be
integrated, so too will devices, sensors and humans throughout the organization. The Industry
4.0 supply chain fully leverages the IoT for streamlined, agile operations with far greater
visibility and transparency.
5. Increased Reliance Upon the Cloud
The Industry 4.0 supply chain is a data-generation machine. It's constantly producing insights
in real time, requiring incredible speed and precision, not to mention the capacity for instant
