INDUSTRY 4.

0: A Digital Transformation in
Manufacturing

A Mini Project Report

Submitted in part fulfilment of requirements for the degree of
Bachelor of Technology (Mining Engineering)

By

Shahid Ansari- 511218022

Ujjwal Pathak- 511218025

Swapnil Suman- 511218027

SESSION 2019-2020

DEPARTMENT OF MINING ENGINEEING

INDIAN INSTITUTE OF ENGINEERING SCIENCE AND TECHNOLOGY, SHIBPUR
HOWRAH-711103
CERTIFICATE
This is to certify that the project report titled “INDUSTRY 4.0: A Digital Transformation in
Manufacturing” being submitted by Shahid Ansari(51128022), Ujjwal Pathak(511218025),
Swapnil Suman(511218027) in fulfillment of the requirements for the award of Bachelor of
Technology degree in the Department of Mining Engineering at Indian Institute of Engineering
and Science Technology, Shibpur. Is a record of bonafide work carried out by us under the
supervision and guidance of Professor Indranath Sinha.

To the best of our knowledge, the matter embodied in this document has not been submitted
anywhere else for award of any other degree or diploma.

Date. 04/12/2019 ___________________________________

(Indranath Sinha)
Professor of Department of Mining Engineering
ACKNOWLEDGEMENT
We would like to express our deepest gratitude to the Head of the department Professor Sudipta
Mukhopadhyay for allowing us to use department facilities beyond office hours. We would also
like to thank Professor Indranath Sinha for providing the related useful documents. Also to all
Faculty, Staff members and Students of Department of Mining Engineering who have helped us
for carrying out our work.

Shahid Ansari (511218022)

Ujjwal Pathak (511218025)
Swapnil Suman (511218027)
Student, 3rd Sem B.Tech
(Mining Engineering)
Indian Institute of Engineering
Science and Technology, Shibpur Howrah--
711103
List of non-standard abbreviations and
acronyms used
CPS Cyber Physical System
IoT Internet of Things
IoS Internet of Service
IoD Internet of Data
RFID Radio Frequency identification
STEM Science, technology, engineering, mathematics
CIM Computer Integrated Manufacturing
IICT Integration of Information and Communication technology

WSN Wireless Sensor Network

List of Figures
Figure1.1. Concept of Smart factory
Figure 1.2. Future scope of Industry 4.0
Figure 2.1. Historical Perspective of Industrial Revolutions
Figure 2.2. Changes and transformations from Industry 1.0 to Industry 4.0
Figure 2.3. Various streamlines of economies effecting business
Figure 2.4 Basic Components of Industry 4.0
Figure 3.1 Building blocks of Industry 4.0
Figure 3.2 Internet of things value chain
Figure 3.3: Smart Agriculture

Figure 3.4: Smart Health

Figure 3.5: Smart City

Figure 3.6: Framework of CPS

Figure 3.7: Eight Priority areas of action

List of Tables
Table 2.1. Categorization of Industry 4.0 technologies and design principles
Table 3.1 Representative list of IoT Platforms
Table 3.2: Review of approaches characteristics for Industry 4.0
CONTENTS

1. Introduction
1.1. Need of Industry 4.0……………………………………01-02
1.2. Vision of Industry 4.0……………………………………...03

2. Literature Review
2.1. Background Analysis………………………………………04
2.2. State of Art…………………………………………………05
2.3. Proposed Framework of Industry 4.0…………………..06-07

3. Methodology
3.1. Building Blocks of Industry 4.0………………………..08-10
3.2. Internet of Things and New Value Proposition………..10-11
3.3. Examples for IOTs Value Creation in Different………11-14
Industries
3.4. Cyber physical systems (CPS)………………………….14-15
3.5. Skill Development for Industry 4.0…………………..15-16

4. Conclusion……………………………………………………….17
5. References……………………………………………………….18
Chapter-1
INTRODUCTION
Innovation fostered by digitization of manufacturing process is the need for today’s industry. The
manufacturing industries are currently changing from mass production to customized production. The rapid
advancements in manufacturing technologies and applications in the industries help in increasing
productivity. Since the first Industrial Revolution, subsequent revolutions have resulted in manufacturing,
from water and steam powered machines to electrical and digital automated production which makes
manufacturing process more intricate, automatic and sustainable so that people can operate machines more
efficiently and conveniently. The term Industry 4.0 stands for the fourth industrial revolution which is
defined as a new level of organization and control over the entire value chain of the life cycle of products
heading towards increasingly individualized customer requirements.

Industry 4.0 was first declared by German government during Hannover Fair in 2011 as the beginning of
the 4th Industrial Revolution. Industry 4.0 is still visionary but a realistic concept which includes Internet
of Things, Industrial Internet, Smart Manufacturing and Cloud based Manufacturing. Industry 4.0 concerns
the strict integration of human in the manufacturing process so as to have continuous improvement and
focus on value adding activities and avoiding wastes. According to the concept of Industry 4.0, reference
architecture, standardization and security of networked systems are the fundamentals for implementing
Industry 4.0 infrastructure.

The central objective of Industry 4.0 is fulfilling individual customer needs which affects areas like order
management, research and development, manufacturing commissioning, delivery up to the utilization and
recycling of products. The main difference between industry 4.0 and Computer Integrated Manufacturing
(CIM) is the concern of the human role in production environment. Industry 4.0 has an important role of
human worker in performing the production whereas CIM considers worker-less production. The Industry
4.0 prototype promotes the connection of physical items such as sensors, devices and enterprise assets, both
to each other and to the Internet.

In this project, we have accentuated upon the need and scope of Industry 4.0 in Chapter-1, Evolution of
Industry 4.0, its State of Art and proposed technological framework in chapter 2 while the structural
components of Industry 4.0, IoT and its application, CPS and skill requirements in the process of digital
manufacturing have been analysed in chapter 3. Thereafter Chapter 4 summarises our document on the
concept of Industry 4.0.
1.1 Need of Industry 4.0
The need of industry 4.0 is to transform the regular machines to be cognizant and self-learning to improve
their overall performance and maintenance management with the surrounding interaction. Industry 4.0 aims
at the construction of an open, smart manufacturing platform for industrial-networked information
application. Real time data monitoring, tracking the status and positions of product as well as to hold the
instructions to control production processes are the main needs of Industry 4.0. Industry 4.0 is focused on
creating intelligent products, processes and procedures. In the smart factory workers, machines and
resources communicate easily. Essence of the industry vision 4.0 is in the Internet of things and Internet of
services (Figure 2.), which means the ubiquitous connectivity of people, things and machines [1]. Products,
transportation equipment and tools "cooperate" in order to create better each following production step.
That way leads to the connectivity of virtual world and physical objects in real world. The objective of this
presentation is to provide an overview of Industry 4.0 and understanding of the nine pillars of Industry 4.0
with its applications and identifying the challenges and issues occurring with implementation the Industry
4.0 and to study the new trends and streams related to Industry 4.0.

1.2 Vision of Industry4.0

The concept of the Fourth Industrial Revolution has been picturised below:

Figure1.1. Concept of Smart factory

(Source: Crnjac M. and Banduka N. (2017) – From Concept to the Introduction of Industry 4.0, IJIEM)
The table below depicts the services envisaged to be rendered with the evolution of Industry 4.0:

Figure 1.2. Future scope of Industry 4.0

(Source: Crnjac M. and Banduka N. (2017) – From Concept to the Introduction of Industry 4.0, IJIEM)
Chapter-2
LITERATURE REVIEW
The term Industry 4.0 was first introduced in 2011 as “Industry 4.0” by a group of representatives from
different fields (such as business, politics, and academia) under an initiative to enhance the German
competitiveness in the manufacturing industry. The German federal government has supported the idea
by announcing that Industry 4.0 will be an integral part of the “High Technology Strategy for Germany
2020” initiative which particularly aimed at leading the technological innovation. Subsequently, the
“Industry 4.0 Working Group” developed the first application proposal, which was later published in April
2013 (Kagermann et al. 2013). This understanding clearly supports the idea of generating dark factories
or smart factories, which have already begun to emerge, adopt a completely new approach to production
and manufacturing processes. Naturally, the products have also been becoming intelligent to cope with
both functional and utilization requirements. The manufacturing lines seems to be involving more and
more of these products as they can be uniquely identified and can be found at any time and state of their
own history.

2.1 Background Analysis

The first industrial revolution was the introduction of mechanical production facilities starting in the
second half of the eighteenth century and being intensified throughout the entire nineteenth century. From
the 1870s on, electrification and the division of labor (i.e. Taylorism) led to the second industrial
revolution. The third industrial revolution, also called “the digital revolution”, set in around the 1970s,
when advanced electronics and information technology developed further the automation of production
processes. An initiative called “Industry 4.0”, in which representatives of business, politics and academics
gathered (Kagermann et al. 2011), promoted the idea of digitization together with some autonomy and
self-behavior of the machines as an approach to strengthening the competitive power of the German
manufacturing industry was then introduced.

Figure 2.1. Historical Perspective of Industrial Revolutions

(Source: Oztemel E. and Gursev S. (2018), Literature Review of Industry 4.0 and Related Technologies,
Journal of Intelligent manufacturing)
When the developments of human history are examined, it can be seen how effective the evolution and
change of production techniques are in most of the revolutionary developments. In the first phase of the
industrial revolution, the combination of steam, coal and iron has opened the “railway age” with its
significant political, economic and social consequences (Adeyeri et al. 2015). While coal has provided the
required power to vehicles moving in railways, the railroads, in turn, are used to transfer the coal to the
places that are too far away. During the second phase of the industrial revolution changes in basic raw
materials and energy sources emerged (Bauer et al. 2014). As steel, electricity, petrochemicals as well as
coal and iron went into production, industrialization took on the shape as still seen today. Iron played a
major but non-dominant role in the second phase of the industrial revolution. It is assumed that the
discovery of computers and advanced technological developments constituted the third stage of the
industrial revolution (Bauernhansl 2014). This was also pointed out by Chang et al. (2012) when they
discuss contemporary IT-related issues, policy trends and new industrial services which will lead to
successful transfer toward intelligent ubiquitous society.

In terms of manufacturing, Lucke (2008) pointed out the importance of manufacturing systems and
technology standing on a new frontier, facing up to the challenges posed by the ever-evolving requirements
of global sustainability. Kowalska et al. (2018), Layuan and Chunlin (2002), Lee et al. (2013) represents
a technologically optimistic future where objects will be connected to the internet and make intelligent
collaborations with other objects anywhere, anytime. The change and transformation from the first
revolution to the fourth one is depicted in Fig. 4 as provided by Oztemel (2010). As can be seen form the
figure, the manufacturing facilities are being and will be equipped with more and more self-behaving
capabilities in the historical progress. This is not the prediction about the future. But in fact, it is becoming
the reality to some extend as the manufacturing systems emerges. The main idea behind Industry 4.0 is
based on those studies where previous applications encouraged the scientist to talk about not only on
digitization but also developing intelligent, integrated and fully autonomy factories (smart or dark
factories).

Figure 2.2. Changes and transformations from Industry 1.0 to Industry 4.0
(Source: Oztemel E. and Gursev S. (2018), Literature Review of Industry 4.0 and Related Technologies,
Journal of Intelligent manufacturing)
2.2 State of Art

There has been several motivation and progress in business which also effected the direction of especially
manufacturing and, in turn, the society. These are summarized in Fig. 5 as depicted in the report by
TUSIAD—Turkish Industry and Business Association (TUSIAD 2016) by referring to Boston
Consulting Group (2016). Many trends that can be gathered in four main themes have begun to shape the
business world. Regional trends—Increase in social interaction and trade between countries, Economic
trends—With rising emerging strong economies and flows of financial resources Increasing globalization,
Technological trends—Increased connectivity and development of platform technologies, Meta trends—
Increasing concerns about increasingly scarce resources, environment and safety (Kagermann 2014).

Figure 2.3. Various streamlines of economies effecting business

(Source: Boston Consulting Group(2016) )
It is now well accepted by the introductory information as such that the Industry 4.0 provides a new vision
for the manufacturing systems. This vision definitely produces a manufacturing environment composed
of product, intelligence, communication and networking (Lasi et al. 2014). It is no doubt that with the
introduction of Industry 4.0, new business models have to be emerged. There are now companies having
the largest part of business in their sector with only running a software (without any extra investments).
Some examples of these sort of companies may include UBER a well-known taxi company, Facebook a
communication and social interaction platform, Airbus, travel and tourism agency, Alibaba a famous e-
commerce company etc. (Lee et al. 2015). These types of companies are heavily dependent upon their
information network and IT automation. However, the competition along this line will make those
providing better facilities which are more suitable to the demander to become more powerful in the market.
This can only be sustained through autonomy and self-decision-making capabilities empowered by
Industry 4.0 (Lee et al. 2016)
2.3 Proposed Framework for Industry 4.0
The main motivation of Industry 4.0 is the connection and integration of manufacturing and service
systems to provide effectiveness, adaptability, cooperation, coordination and efficiency. The various
components of the proposed framework of Industry 4.0 are depicted in the Figure 6 shown below.

Figure 2.4 Basic Components of Industry 4.0

(Source: Oztemel E. and Gursev S. (2018), Literature Review of Industry 4.0 and Related Technologies,
Journal of Intelligent manufacturing)

According to Table 2.1, interoperability of communicative components could be satisfied using cyber
physical system security and Industrial Internet of Things adaptation such as communication and
networking. In similar manner, monitoring the changes in existing system can be provided by simulation
modeling and virtualization techniques such as augmented reality and virtual reality. An example could be
given from CAutoD which optimises the existing design process of trial and error by altering the design
problem to a simulation problem, as an automating digital prototyping. Additionally, adaptive robots,
embedded systems based on Cyber Physical Infrastructure, Cloud Systems and Big Data Analytics should
be successfully combined in order to enables self-decision making and autonomy. RFID and RTLS
technologies, sensors and actuators are the major components for real time data management in terms of
trace ability and real time reaction to sudden changes appeared in sub-systems. Cloud systems and data
analytics and artificial intelligence techniques also ensures the specific customer specifications an fulfill
service-oriented architecture of Industry 4.0 framework.
Table 2.1. Categorization of Industry 4.0 technologies and design principles

(Source: Salkin C., Oner M. and Cevikcan E. (2018): A Conceptual Framework for Industry 4.0,
Chapter1, Industry 4.0: Managing The Digital Transformation, Springer, pp 3-24)

As evident from the above table the main features of Industry 4.0 are:

 Interoperability: Cyber-physical systems ( work-piece carriers, assembly stations and products) allow
humans and smart factories to connect and communicate with each other.
 Virtualisation: A virtual copy of the smart factory is created by linking sensor data with virtual plant
models and simulation models.
 Decentralization: Ability of Cyber-physical systems to make decision of their own and to produce,
thanks to technologies such as 3-D printing.
 Real-time Capability: The capability to collect and analyse data and provide the derived insights
immediately.
 Service orientation
 Modularity: Flexible adaptation of smart factories to changing requirements by replacing or
expanding individual modules.
Chapter-3
METHODOLOGY
Industry 4.0 is not the only term that describes the new phenomena in industrial production. Both the
Internet of Things (IoT) and the Internet of Services describe the digital integration of production and
services.
 The Internet of Things: refers to IT systems connected to all sub-systems, processes, internal and
external objects, supplier and customer networks; that communicate and cooperate with each other and
with humans. According to some estimates, the number of devices communicating with each other has
surpassed the number of people communicating with each other. According to other projections, by
2020, 30 billion devices (from a jet liner to a sewing needle) will be connected to the internet.
 The Internet of Services: refers to internal and cross-organizational services which are offered and
utilized by participants in the value chain and driven by big data and cloud computing.

Figure 3.1 Building blocks of Industry 4.0

(Source: Oztemel E. and Gursev S. (2018), Literature Review of Industry 4.0 and Related Technologies)
3.1 Building blocks of Industry 4.0
As depicted in the above Fig.7, the following nine attributes are the pillars of the fourth Industrial
Revolution which will bolster the process of automation and smart manufacturing to envisage the realistic
future of the concept of Industry 4.0:
 Big Data and Analytics

The collection and comprehensive evaluation of data from many different sources production equipment
and systems as well as enterprise and customer-management systems will become standard to support real-
time decision making. According to Forrester’s definition, Big Data consists of four dimensions: Volume
of data, Variety of Data, Velocity of generation of new data and analysis, Value of Data.

 Autonomous Robots

Robots are becoming more autonomous, flexible, and cooperative day by day and at certain they will
interact with one another and work safely side by side with humans and learn from them. An autonomous
robot is used to perform autonomous production method more precisely and also work in the places where
human workers are restricted to work. Autonomous robots can complete given task precisely and
intelligently within the given time limit and also focus on safety, flexibility, versatility and collaboratively.

 Simulation

2D and 3D simulations can be created for virtual commissioning and for simulation of cycle times, energy
consumption or ergonomic aspects of a production facility. Uses of simulations of production processes
can not only shorten the down times and changes it but also reduce the production failures during the start-
up phase.

 System Integration: Horizontal and Vertical System Integration

Integration and self-optimization are the two major mechanisms used in industrial organization. The
prototype of Industry 4.0 is essentially outlined by three dimensions of integration: (a) horizontal integration
across the entire value creation network, (b) vertical integration and networked manufacturing systems (c)
end-to-end engineering across the entire product life cycle.

 The Industrial Internet of Things

The Internet of Things means a worldwide network of interconnected and uniform addressed objects that
communicate via standard protocols [17]. Internet of Things (IoT) also known as Internet of Everything
(IoE) consists of Internet of Service (IoS), Internet of Manufacturing Services (IoMs), Internet of People
(IoP), an embedded system and Integration of Information and Communication technology (IICT).

 Cyber security and Cyber Physical Systems (CPS)

With the increased connectivity and use of standard communications protocols that come with Industry 4.0,
the need to protect critical industrial systems and manufacturing lines from cyber security threats increases
dramatically. As a result, secure, reliable communications as well as sophisticated identity and access
management of machines and users are essential. The term CPS has been defined as the systems in which
natural and human made systems (physical space) are tightly integrated with computation, communication
and control systems (cyber space).

 The Cloud

Cloud-based IT-platform serves as a technical backbone for the connection and communication of manifold
elements of the Application Centre Industry 4.0. With industry 4.0, organization needs increased data
sharing across the sites and companies i.e. achieving the reaction times in milliseconds or even faster.

 Additive Manufacturing
With Industry 4.0, additive-manufacturing methods will be widely used to produce small batches of
customized products that offer construction advantages, such as complex, lightweight designs. High-
performance, decentralized additive manufacturing systems will reduce transport distances and stock on
hand.

 Augmented Reality

Augmented-reality-based systems support a variety of services, such as selecting parts in a warehouse and
sending repair instructions over mobile devices. Industry can use of augmented reality to provide workers
with real-time information to improve decision making and work procedures.

3.2 Internet of Things and New Value Proposition

The Internet of things (IoT) is the inter-networking of physical devices, vehicles (also referred to as
“connected devices” and “smart devices”), buildings, and other items—embedded with electronics,
software, sensors, actuators, and network connectivity that enable these objects to collect and exchange
data.” IoTs describe a network of internet-connected devices that are able to collect and exchange data
using their embedded sensors. The concept revolves around networks of data-gathering sensors from very
different resources ranging from watches, autonomous cars, and thermostats to manufacturing facilities that
process at edge or cloud depending on the business model; and in this way create value for the user, either
corporate or consumer, and usually both. Figure 3.2 shows a basic IoT Ecosystem with different layers.

Figure 3.2 Internet of things value chain

The five key IoT technologies which spearhead the concept of Industry 4.0 are:
 Radio-frequency identification (RFID): It allows identifying, tracking and transmitting information.
 Wireless sensor networks (WSN): It is a network composed of a set of sensors to monitor and track
the status of different devices like their location, movements or temperature.
 Middleware: It is a service-oriented software layer that allows software developers the possibility to
communicate with heterogeneous devices like sensors, actuators or RFID tags.
 Cloud computing: It is an internet-based computing platform where a pool of different computing
resources (computers, networks, storage, software, etc.) can be shared and accessed on demand.
 IoT applications: They enable device to device and humans to device interactions. IoT applications
constitute the interface between the user and the devices.
Table 3.1 Representative list of IoT Platforms

(Source: Hassini E. and Bahroun Z. (2017), Internet of Things and Supply Chain Management: A
Literature Review, International Journal of Production Research, Volume 57, pp 4719-4742 )

A closely related concept to IoT is Industry 4.0 or Industrial IoT (IIoT). As mentioned earlier, Industry 4.0
is the product of combining CPS and IoT to the industrial automation domain. Thus, IoT is credited for
being an enabler of Industry 4.0 that led to a fourth industrial revolution. The ‘things’ in Industry 4.0 could
include smart products, smart machines and smart services such as quality-controlled logistics and
maintenance.
3.3 Examples for IoTs Value Creation in Different Industries
There are different ways of creating value by IoTs applications, which are mostly shaped by the industry
specific dynamics. Below you will find different examples depicted from business context that illustrate
how IoTs based systems and their applications are changing the ways of doing business.
3.3.1 Smart Agriculture
Smart Agriculture is actually a good example given that agriculture has a direct impact on human life via
contributing to the satisfaction of the most essential human need, i.e. need to eat, so that enable the survival
of human kind. Thereby, IoT can influence the field of agriculture in six ways given below.
 Soil and Field analysis: Drones can produce 3-D maps for field analysis, useful in planning seed
planting patterns.
 Planting: Drone-planting systems shoot pods with seeds, plant nutrients and chemicals into the soil.
Different start-ups claim that drones could plant over 500seeds per hour, compared with farmers
planting about 800 seeds per day.
 Crop Monitoring: Drones provide the precise development of a crop and reveal production
inefficiency, enabling better crop management in the life-cycle
 Spraying: Drones can scan the ground and spray the correct amount of liquid by utilizing different
sensors that lead to increased efficiency while reducing the amount of chemicals penetrating into
groundwater. It is estimated that drone spraying can be completed up to five times faster than the
spraying by traditional machinery. Drone spraying controlled by sensors is more efficient than mess-
agricultural aircraft spraying also.
 Irrigation: Drones equipped with different sensors (i.e. multispectral or thermal sensors) can identify
soil needs depending on visual computing. This computing10 Internet of Things and New Value
Proposition 179 also allows the calculation of the vegetation index that gives information about health
of the crops.
 Health assessment: Drone-carried devices can identify bacterial or fungal infections of trees by
scanning a crop using both visible and near-infrared lights, and analyzing multispectral images that
track changes in plants and indicate their health. A rapid response can save an entire orchard.

Figure 3.3: Smart Agriculture

3.3.2 Smart City
According to a global research firm Gartner, smart cities will host nearly 10 billion IoT devices by 2020,
with more vendors than ever
exploring new business
opportunities in smart city
development, ranging from
home/building security,
streetlights, transportation and
healthcare. Creation of value in
smart cities can be analyzed
practically from two different
perspectives; one from the public
sector, and the other from the
citizens’ perspective. Through
smart city formations public sector
can serve its citizens by a lower
cost due to efficiency increases in
services via digitalization. On the
other hand, from citizens
perspective, value creation
through IoTs applications in cities
would help them having savings
both in terms of time and money. Figure 3.4: Smart City 1
For instance, smart parking
solutions can help drivers save not only time but also money by saving their time for working, otherwise
which would be consumed at traffic.
3.3.3 Smart life—Wearable Technologies
Last decade, technology became the integral part of our social and personal lives, however recently together
with the transformations in IoTs technologies and sensors, it is getting smarter and more personal via daily
usages of different devices with sensors like smart watches and shoes. By early 2016 a market projection
on the future of wearable technologies by a market research company CCS Insight indicated that 411 million
smart wearable devices, worth $34 billion, will be sold in 2020. It is expected that wrist-based devices, like
smart watches and fitness trackers will continue to dominate the wearable technology market. Smart Glass
is expected to constitute 25% of the total market by 2020.
3.3.4 Smart Health
IoTs and its various applications are
also redesigning contemporary
health care systems and their services
by offering optimistic technological,
economic, and social prospects.
 Decreased Costs: Remote
patient monitoring can be done
on a real time basis by utilizing
connectivity of the healthcare
solutions, thus significantly
cutting down on unnecessary
visits by doctors. Most
importantly, through advanced
home care facilities, hospital
stays and re-admissions would
be decreased, thus these would
help to cut down the costs.
 Improved Outcomes of Figure 3.5: Smart Health
Treatment: Availability of real
time patient information through connectivity of remote health care solutions via cloud computing or
other virtual infrastructure provide caregivers the ability to make informed decisions based on solid
evidences. By that, healthcare service can be provided on a timely manner which would possibly
improve treatment outcomes.
 Improved Disease Management: Accessing real time and continuous data of patients provides
health care providers better information about disease management and help them make predictive or
preemptive actions to control diseases.
 Reduced Errors, Waste and Costs: Accurate collection of data in the process flow enable
reducing system costs and wastes as well as and minimizing human-based system errors.
 Enhanced Patient Experience: Increased accuracy rates in treatments with timely health service
would likely to improve patient experiences.
 Enhanced Management of Drugs: IoTs help to better manage of drugs and so decrease the level
of a major expense item in the healthcare industry.

3.4 Cyber physical systems (CPS)

Cyber Physical Systems (CPS) is the integration of computing and physical processes which are essential
components of Industry 4.0 implementations. Bergera et al. (2016) introduced general definition of cyber
physical sensor systems. Special types of embedded systems, based on powerful software systems, enable
the integration in digital networks and create completely new system functionalities as part of the
cyberspace. A typical CPS may perform the following functions in manufacturing:
• Process monitoring.
• Being applicable in different domain contributing to generate a large scale system.
•Integrating different disciplines in different domains.
• Handling an effective dependability.
• Substantial user interaction.
• Alive performance monitoring.
• Real time configuration, deployment and decommissioning.
• Self-behaving and decision making.
• Distributed an interconnected communication.
The development of a CPS is characterized by three phases. First-generation CPS includes identification
technologies such as RFID tags that allow unique identification. Storage and analysis should be provided
as a central service. Second-generation CPS is equipped with some sensors and actuators with a limited
number of functions. In the third generation CPS, in addition to setting up the equipment the data is stored
and analyzed. The CPS is equipped with multiple sensors and actuators and is designed to be network
compatible (Bauernhansl 2014).

Figure 3.6: Framework of CPS

(Source: Crnjac M. and Banduka N. (2017) – From Concept to the Introduction of Industry 4.0, IJIEM)
 Table 3.2: Review of approaches characteristics for Industry 4.0
(Source: Crnjac M. and Banduka N. (2017) – From Concept to the Introduction of Industry 4.0,
IJIEM)

3.5 Skill Development for Industry 4.0:

In order to drive the transformational opportunities promised by Industry 4.0 and create value from
automation, yet organizations need to consider developing their future workforce with competencies
aligned to industry-specific requirements. Rapid and extensive automation of business processes together
with emergence of novel business models impose new skill requirements for workforce.

Future of Jobs Report revealed that by 2020 more than one-third of the desired skill set of most jobs will
be comprised of skills which are not yet seen as important today (World Economic Forum 2016). More
surprisingly, 65% of children today will do jobs that haven’t even been developed yet (OECD 2016).
According to 2020 predictions of World Economic Forum (WEF 2016), future workforce is expected to
have mostly cognitive abilities (52%), systems skills (42%), and complex problem-solving skills (40%). In
addition to those skills, workers are required to have the basic skills for information and communication
technologies (ICT).
Industry 4.0 work systems evidently necessitate employees having degrees in fields related to science,
technology, engineering, and mathematics (STEM) so that these employees would have core skills built on
these basic sciences required for technology-based innovations. STEM competencies are defined as the set
of cognitive skills, knowledge, and abilities associated with STEM occupations, and they have become
critical for economic competitiveness due to their positive influence on innovation, technological growth,
and economic development. According to a report from the Georgetown University Center on Education
and the Workforce, latest developments in technology-based innovations have led to demand for STEM
competencies even beyond traditional STEM occupations (Carnevale et al. 2011).

Figure 3.7: Eight Priority areas of action

(Source: Crnjac M. and Banduka N. (2017) – From Concept to the Introduction of Industry 4.0, IJIEM)
Chapter-4
CONCLUSION
The report mainly focused on the concept of fourth industrial revolution, called Industry 4.0 which allows
smart, efficient, effective, individualized and customized production at reasonable cost. With the help of
faster computers, smarter machines, smaller sensors, cheaper data storage and transmission could make
machines and products smarter to communicate with each and learn from each other. The nine pillars of
industry 4.0 explained with the examples to understand the application of Industry 4.0 as well as used to
identify the challenges and issues with the implementation of Industry 4.0. The new industrial revolution
will create conditions where the industry is sustainable, where employees are qualified and are progressing
in their education, so they are able to support the optimization in all segments of the industry. Future
research will be directed towards new strategies and business models, which are adapted to the specific
conditions.
Through this mini project we have endeavored our best to address the following facets of the 4th Industrial
revolutions:
 The aim is to find parameters that affect the way toward Industry 4.0. and its intensity impact.
 Those parameters that have the greatest influence have been especially discussed. Such parameters
are important because it is possible to find ways how to influence on their value. Management of key
parameters can bring faster movement toward Industry 4.0.
 Measurement of parameters is important to prove a progress.
 Very important area for future research, that is not emphasized in the models mentioned in the
work, and it is relevant today, is environmental protection and energy saving. This area will also be
included for further research.
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