Course Code: IPE-354

Course Title: Business Communication Seminar

“Industry 4.0 and its relevance to

Industrial Engineering.”

Group No. -10

Registration Number

Md. Aminul Islam Tuhin -2016334013

Tamanna Akther Khan Rima -2016334025
Tanvir Ahmed -2016334034
Dewan Iftehaz Hasan -2016334049

Session: 2016-2017
3rd Year 2nd Semester
Department of Industrial and Production Engineering
 CONTENTS

1. OBJECTIVE ........................................................................................................3
2. INTRODUCTION ...............................................................................................3
3. DESCRIPTION ...................................................................................................4
3.1. What Is Industry
3.2. Industrial Revolution
3.3. Stages Of Revolution
3.4. How Industry 4.0 Differ From Industry 3.0
3.5. Pillars Of Industry 4.0
3.6. Components Of Industry 4.0
3.7. Industry 4.0 Design Principles Relevant To Ipe
3.8. Advantages Of Industry 4.0 In The Perspective Of Industrial Engineering
3.9. Role of Industrial Engineers in Industry 4.0
3.10. Challenges Facing Industry 4.0
3.11. The Future Workforce
4. DISCUSSION ....................................................................................................17
5. CONCLUSION..................................................................................................17
6. REFERENCES ..................................................................................................18
1. OBJECTIVE

I. To know about the industrial revolution.

II. To know details about industry 4.0 and its relevance to Industrial Engineering.

2. INTRODUCTION

Industry 4.0 is the subset of the fourth industrial revolution that concerns industry.
The fourth industrial revolution encompasses areas which are not normally classified
as industry, such as smart cities for instance.
Although the terms "industry 4.0" and "fourth industrial revolution" are often used
interchangeably, "industry 4.0" refers to the concept of factories in which machines
are augmented with wireless connectivity and sensors, connected to a system that
can visualize the entire production line and make decisions on its own.
In essence, industry 4.0 describes the trend towards automation and data exchange
in manufacturing technologies and processes which include cyber-physical systems
(CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud
computing ,cognitive computing and artificial intelligence.
The concept includes:
I. Smart manufacturing
II. Smart factory
III. Lights out (manufacturing) also known as dark factories
IV. Industrial internet of things also called internet of things for manufacturing.

Industry 4.0 fosters what has been called a "smart industry". Within modular
structured smart factories, cyber-physical systems monitor physical processes,
create a virtual copy of the physical world and make decentralized decisions. Over
the Internet of Things, cyber-physical systems communicate and cooperate with
each other and with humans in real-time both internally and across organizational
services offered and used by participants of the value chain. [1]
 Figure-1: Smart Industry

3. DESCRIPTION

3.1. What Is Industry

An industry is a sector that produces goods or related services within an
economy. The major source of revenue of a group or company is an indicator
of what industry it should be classified in. When a large corporate group has
multiple sources of revenue generation, it is considered to be working in
different industries. The manufacturing industry became a key sector of
production and labor in European and North American countries during the
Industrial Revolution, upsetting previous mercantile and feudal economies.
This came through many successive rapid advances in technology, such as
the development of steam power and the production of steel and coal. [2]

3.2. Industrial Revolution

The Industrial Revolution was a period when new sources of energy, such as
coal and steam, were used to power new machines designed to reduce human
labor and increase production. The move to a more industrial society would
forever change the face of labor.
The first Industrial Revolution began in Great Britain after 1750. There were
several factors that combined to make Great Britain an ideal place for
industrialization. First, the Agricultural Revolution of the 18th century
created a favorable climate for industrialization.
By increasing food production, the British population could be fed at lower
prices with less effort than ever before. The surplus of food meant that British
families could use the money they saved to purchase manufactured goods.
 The population increase in Britain and the exodus of farmers from rural to
urban areas in search of wage-labor created a ready pool of workers for the
new industries.
Britain had financial institutions in place, such as a central bank, to finance
new factories. The profits Britain had enjoyed due to booming cotton and
trade industries allowed investors to support the construction of factories.
British entrepreneurs interested in taking risks to make profits were leading
the charge of industrialization. The English revolutions of the 17th century
had fostered a spirit of economic prosperity. Early industrial entrepreneurs
were willing to take risks on the chance that they would reap financial
rewards later.
Britain had a vast supply of mineral resources used to run industrial
machines, such as coal. Since Britain is a relatively small country, these
resources could be transported quickly and at a reasonable cost. The British
government passed laws that protected private property and placed few
restrictions on private business owners. Britain's merchant marine could
transport goods to foreign markets. Lastly, Great Britain's colonial empire
created a ready supply of consumers to purchase its manufactured goods. [3]

3.3. Stages Of Industrial Revolution

Figure-2: Stages of Industrial Revolution

3.3.1. 1st Industrial Revolution
The First Industrial Revolution began in the 18th century through the use
of steam power and mechanization of production. What before produced
threads on simple spinning wheels, the mechanized version achieved
eight times the volume in the same time. Steam power was already
known. The use of it for industrial purposes was the greatest breakthrough
for increasing human productivity. Instead of weaving looms powered by
muscle, steam-engines could be used for power. Developments such as
the steamship or (some 100 years later) the steam-powered locomotive
brought about further massive changes because humans and goods could
move great distances in fewer hours.

3.3.2. 2nd Industrial Revolution

The Second Industrial Revolution began in the 19th century through the
discovery of electricity and assembly line production. Henry Ford (1863-
1947) took the idea of mass production from a slaughterhouse in Chicago:
The pigs hung from conveyor belts and each butcher performed only a
part of the task of butchering the animal. Henry Ford carried over these
principles into automobile production and drastically altered it in the
process. While before one station assembled an entire automobile, now
the vehicles were produced in partial steps on the conveyor belt -
significantly faster and at lower cost.

3.3.3. 3rd Industrial Revolution

The Third Industrial Revolution began in the ’70s in the 20th century
through partial automation using memory-programmable controls and
computers. Since the introduction of these technologies, we are now able
to automate an entire production process - without human assistance.
Known examples of this are robots that perform programmed sequences
without human intervention.

3.3.4. 4th Industrial Revolution

We are currently implementing the Fourth Industrial Revolution. This is
characterized by the application of information and communication
technologies to industry and is also known as "Industry 4.0". It builds on
the developments of the Third Industrial Revolution. Production systems
that already have computer technology are expanded by a network
 connection and have a digital twin on the Internet so to speak. These
allow communication with other facilities and the output of information
about themselves. This is the next step in production automation. The
networking of all systems leads to "cyber-physical production systems"
and therefore smart factories, in which production systems, components
and people communicate via a network and production is nearly
autonomous. [4]

3.4. How Industry 4.0 Differ From Industry 3.0

In Industry 3.0, we automate processes using logic processors and
information technology. These processes often operate largely without
human interference, but there is still a human aspect behind it. Where
Industry 4.0 comes in is with the availability and use of vast quantities of data
on the production floor.
For an example of the old way (Industry 3.0), take a CNC machine: while
largely automated, it still needs input from a human controller. The process
is automated based on human input, not by data. Under Industry 4.0, that
same CNC machine would not only be able to follow set programming
parameters, but also use data to streamline production processes. [5]

3.5. Pillars Of Industry 4.0

Figure-3: Pillars of Industry 4.0

3.6. Components Of Industry 4.0
Although “Industry 4.0” is the common term referring to the fourth industrial
revolution, academics still struggle to properly define the approach. This
makes it even harder to distinguish the main components of such an approach.
In their Literature Review, Hermann, Pentek, and Otto take it upon
themselves to find out the main components of the industry.

3.6.1. Cyber-Physical Systems

As mentioned above, a cyber-physical system aims at the integration of
computation and physical processes. This means that computers and
networks are able to monitor the physical process of manufacturing at a
certain process. The development of such a system consists of three
phases:

Identification: Unique identification is essential in manufacturing. This

is the very basic language by which a machine can communicate. RFID
(Radio-frequency identification) is a great example of that. RFID uses an
electromagnetic field to identify a certain tag that is often attached to an
object. Although such technology has been around since 1999, it still
serves as a great example of how Industry 4.0 operated initially.

The Integration of Sensors and Actuator: This is essential for a

machine to operate. The integration of sensors and actuators simply
means that a certain machine’s movement can be controlled and that it
can sense changes in the environment. However, even with the
integration of sensors and actuators, their use was limited and does not
allow them to communicate with each other.

The Development of Sensors and Actuators: Such development

allowed machines to store and analyze data. A CPS now is equipped with
multiple sensors and actuators that can be networked for the exchange of
information.
 Figure-4: Function and Attribute of Industry 4.0

3.6.2. The Internet of Things (IoT)

A cyber-physical system still sounds familiar to us today. Machines can
exchange data and, in a lot of applications, can sense the changes in the
environment around them. Fire alarms are a good example of that. The
Internet of Things, however, is thought to be what truly has initiated
Industry 4.0.
The Internet of Things is what enables objects and machines such as
mobile phones and sensors to “communicate” with each other as well as
human beings to work out solutions. The integration of such technology
allows objects to work and solve problems independently. Of course, this
is not entirely true as human beings are also allowed to intervene.
 Figure-4: Technology Roadmap

However, in case of conflicting goals, the case is usually raised to higher

positions. According to Hermann, Pentek, and Otto, ““things” and
“objects” can be understood as CPS. Therefore, the IoT can be defined as
a network in which CPS cooperate with each other through unique
addressing schemas

3.6.3. The Internet of Services (IoS)

It is easy to see that in today’s world each and every electronic device is
more likely to be connected to either another device, or to the internet.
With the huge development and diversity in electronic and smart devices,
obtaining more and more of them creates complexities and undermines
the utility of each added device.
Smart phones, tablets, laptops, TVs or even watches are becoming more
and more interconnected, but the more you buy, the added value of the
last device becomes unrecognizable. The Internet of Services aims at
creating a wrapper that simplifies all connected devices to make the most
out of them by simplifying the process. It is the customer’s gateway to
the manufacturer.
3.6.4. Smart Factory
Smart factories are a key feature of Industry 4.0. A smart factory adopts
a so called Calm-system. A calm system is a system that is able to deal
with both the physical world as well as the virtual. Such systems are
called “background systems” and in a way operate behind the scene. A
calm system is aware of the surrounding environment and the objects
around it.

3.6.5. Cloud Computing

Cloud technology is a critical enabler of the next Industrial Revolution.
The term is generally used to describe data centers available to users over
the internet.
By embracing the cloud, your processes will operate more efficiently and
your business will rise above the competition. Why? Well, with any
cloud deployment, you can hire the software and resources you need on
a monthly basis and scale appropriately. You don’t need to hire in an IT
team to maintain your hardware. And you will be rewarded with a highly
reliable service where you don’t have to worry about downtime.
But the advantages of today’s cloud technology go beyond reliability,
scalability and storage (and the associated cost savings) within Industry
4.0.

Figure-6: Features of Cloud Computing

Cloud computing provides businesses with a solid foundation to develop

a range of technologies, allowing you to innovate and leapfrog over the
 competition. Research from the Harvard Business Review Analytic
Services reveals that 74% of businesses believe cloud computing has
given them a competitive advantage. Further research reveals that 60%
of technology decision-makers believe an integrated cloud approach will
unlock the potential of disruptive technologies. [6]

3.7. Industry 4.0 Design Principles

The design principles allow manufacturers to investigate a potential
transformation to Industry 4.0 technologies. Based on the components above,
the following are the design principles:

3.7.1. Interoperability
Objects, machines and people need to be able to communicate through
the Internet of Things and the Internet of People. This is the most essential
principle that truly makes a factory a smart one.

3.7.2. Virtualization
CPSs must be able to simulate and create a virtual copy of the real world.
CPSs must also be able to monitor objects existing in the surrounding
environment. Simply put, there must be a virtual copy of everything.

3.7.3. Decentralization
The ability of CPSs to work independently. This gives room for
customized products and problem solving. This also creates a more
flexible environment for production. In cases of failure or having
conflicting goals, the issue is delegated to a higher level. However, even
with such technologies implemented, the need for quality assurance
remains a necessity on the entire process

3.7.4. Real-Time Capability

A smart factory needs to be able to collect real time data, store or analyze
it, and make decisions according to new findings. This is not only limited
to market research but also to internal processes such as the failure of a
machine in production line. Smart objects must be able to identify the
 defect and re-delegate tasks to other operating machines. This also
contributes greatly to the flexibility and the optimization of production.

3.7.5. Service-Orientation
Production must be customer-oriented. People and smart objects/devices
must be able to connect efficiently through the Internet of Services to
create products based on the customer’s specifications. This is where the
Internet of Services becomes essential.

3.7.6. Modularity
In a dynamic market, a Smart Factory’s ability to adapt to a new market
is essential. In a typical case, it would probably take a week for an average
company to study the market and change its production accordingly. On
the other hand, smart factories must be able to adapt fast and smoothly to
seasonal changes and market trends.

3.8. Advantages Of Industry 4.0 In The Perspective Of Industrial

Engineering

3.8.1. Optimization
Optimizing production is a key advantage to Industry 4.0. A Smart
Factory containing hundreds or even thousands of Smart Devices that are
able to self-optimize production will lead to an almost zero down time in
production. This is extremely important for industries that use high end
expensive manufacturing equipment such as the semi-conductors
industry. Being able to utilize production constantly and consistently will
profit the company. According to a study published by PwC.

3.8.2. Customization
Creating a flexible market that is customer-oriented will help meet the
population’s needs fast and smoothly. It will also destroy the gap between
the manufacturer and the customer. Communication will take place
between both directly. Manufacturers won’t have to communicate
internally (in companies and factories) and externally (to customers).
This fastens the production and delivery processes.
 3.8.3. Pushing Research
The adoption of Industry 4.0 technologies will push research in various
fields such as IT security and will have its effect on the education in
particular. A new industry will require a new set of skills. Consequently,
education and training will take a new shape that provides such an
industry will the required skilled labor. [7]

3.9. Role of Industrial Engineers In Industry 4.0

Definitely Industrial engineers will have crucial roles in Industry 4.0 settings
such as designing, implementing and maintaining the enabling technologies
of a fully automated smart factory, namely cyber-physical systems.

A good industrial engineer has to have a broad knowledge about the

properties of the essential technologies sensors, embedded systems, robotics,
but also regarding the processes in a smart factory. Their role will be to create
the automation ecosystem itself. The basic distinction with industry 4.0 is that
the automation will now be networked, using two or three technologies: IoT,
and cloud computing, also TSN (timing-sensitive networks) to the list.

To put it more short, the 4.0 industrial engineer has to be capable of choosing
and implementing the appropriate cyber-physical components and systems
while matching them to smart factory processes.

3.10. Challenges in Adopting Industry 4.0

3.10.1. Security
Perhaps the most challenging aspect of implementing Industry 4.0
techniques is the IT security risk. This online integration will give room
to security breaches and data leaks. Cyber theft must also be put into
consideration. In this case, the problem is not individual, but can, and
probably will, cost producers money and might even hurt their reputation.
Therefore, research in security is crucial.
3.10.2. Capital
Such transformation will require a huge investment in a new technology
that doesn’t sound cheap. The decision to make such transformation will
have to be on CEO level. Even then, the risks must be calculated and
taken seriously. In addition, such transformation will require a huge
capital, which alienates smaller businesses and might cost them their
market share in the future.

3.10.3. Employment
While it still remains early to speculate on employment conditions with
the adoption of Industry 4.0 globally, it is safe to say that workers will
need to acquire different or an all-new set of skills. This may help
employment rates go up but it will also alienate a big sector workers. The
sector of workers whose work is perhaps repetitive will face a challenge
in keeping up with the industry. Different forms of education must be
introduced, but it still doesn’t solve the problem for the elder portion of
workers. This is an issue that might take longer to solve and will be
further analyzed later in this report.

3.10.4. Privacy
This not only the customer’s concern, but also the producers. In such an
interconnected industry, producers need to collect and analyze data. To
the customer, this might look like a threat to his privacy. This is not only
exclusive to consumers. Small or large companies who haven’t shared
their data in the past will have to work their way to a more transparent
environment. Bridging the gap between the consumer and the producer
will be a huge challenge for both parties.

3.11. The Future Workforce

Industry 4.0 has a lot to promise when it comes to revenues, investment, and
technological advancements, but employment still remains one of the most
mysterious aspects of the new industrial revolution. It’s even harder to
quantify or estimate the potential employment rates.
The following are some of the important changes that will affect the
demographics of employment:
3.11.1. Big-Data-Driven Quality Control
In engineering terms, quality control aims at reducing the inevitable
variation between products. Quality Control depends to a large extent on
statistical methods to show whether a specific feature of a product (such
as size or weight) is changing in a way that can be considered a pattern.
Of course such a process depends largely on collecting real-time or
historical data regarding the product. However, since Industry 4.0 will
rely on big data for that, the need for quality control workers will
decrease. On the other side, the demand for big data scientists will
increase.

3.11.2. Robot-Assisted Production

The entire basis of the new industry relies of the smart devices being able
to interact with the surrounding environment. This means that workers
who assist in production (such as packaging) will be laid off and be
replaced with smart devices equipped with cameras, sensors, and
actuators that are able to identify the product and then deliver the
necessary changes for it. Consequently, the demand for such workers will
drop and will be replaced with “robot coordinators”.

3.11.3. Self-Driving Logistics Vehicles

One of the most important focuses of optimization is transportation.
Engineers use linear programming methods (such as the Transportation
Model) to utilize the use of transportation. However, with self-driven
vehicles, and with the assistance of big data, so many drivers will be laid
off. In addition, having self-driven vehicles allows for restriction-free
working hours and higher utility.

3.11.4. Production Line Simulation

While the need for optimization for transportation declines, the need for
industrial engineers (who typically work on optimization and simulation)
to simulate productions lines will increase. Having the technology to
simulate production lines before establishment will open up jobs for
mechanical engineers specializing in the industrial field. [6]
 3.11.5. Predictive Maintenance
Having smart devices will allow manufacturers to predict failures. Smart
machines will be able to also independently maintain themselves.
Consequently, the number of traditional maintenance technicians will
drop, and they’ll be replaced with more technically informed ones.

3.11.6. Machines as a Service

The new industry will also allow manufactures to sell a machine as a
service. This means that instead of selling the entire machine to the client,
the machine will be set-up and maintained by the manufacturer while the
client takes advantage of the services it provides. This will open up jobs
in maintenance and will require an expansion in sales. [6]

4. DISCUSSION

Industry 4.0 is definitely a revolutionary approach to manufacturing techniques. The

concept will push global manufacturers to a new level of optimization and
productivity. Not only that, but customers will also enjoy a new level of personally
customized products that may have never been available before. As mentioned
above, the economic rewards are immense.
However, there are still many challenges that need to be tackled systematically to
ensure a smooth transition. This needs to be the focus of large corporations and
governments alike. Pushing research and experimentation in such fields are
essential.
While speculations regarding privacy, security, and employment need more study,
the overall picture is promising. Such approach to manufacturing industries is truly
revolutionary.

5. CONCLUSION

Industry 4.0 is leading to some clearly visible and measurable benefits such as lower
costs, more efficiency, easier inventory management, lower payback time and
enhanced productivity. All this is done through the deployment of advanced
technology in a strategic and intelligent way. Benefits of this industrial revolution
can also be felt in developing nations such as India, where previous technology
breakthroughs have been skipped. The end result? Shop floor professionals and
manufacturing players get to operate in the factories of the future and improve their
business and growth while giving consumers exactly what they want.

6. REFERENCES

1) Industry 4.0. (2019, September 11 ). Retrieved from wikipedia:

https://en.wikipedia.org/wiki/Industry_4.0
2) Industry. (2019, August 28 ). Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Industry
3) Chappine, P. (2019). Causes of the First Industrial Revolution: Examples &
Summary. Retrieved from study.com:
https://study.com/academy/lesson/causes-of-the-first-industrial-
revolution.html
4) Industrial Revolution - From Industry 1.0 to Industry 4.0. (2019). Retrieved
from desouttertools: https://www.desouttertools.com/industry-4-
0/news/503/industrial-revolution-from-industry-1-0-to-industry-4-0
5) industry-3-0-vs-industry-4-0. (2019). Retrieved from onupkeep:
https://www.onupkeep.com/answers/predictive-maintenance/industry-3-0-
vs-industry-4-0/
6) Martin. (2017, January 16). Industry 4.0: Definition, Design Principles,
Challenges, and the Future of Employment. Retrieved from cleverism:
https://www.cleverism.com/industry-4-0/
7) CLOUD TECHNOLOGY – DEVELOPMENTS AND TRENDS. (2018).
Retrieved from industry40summit:
https://www.industry40summit.com/cloud-computing/ibm-unveils-major-
expansion-of-cloud-capabilities-industry-leaders-exxonmobil-bausch-lomb-
and-westpac-shift-to-ibm-cloud