1. WHAT IS INDUSTRY 4.

1. WHAT IS INDUSTRY 4.0

The biggest Industry 4.0 „revolutionaries“ are the Germans. They have invented the
term Industry 4.0 to describe this phenomenon. The term Industry 4.0 came from the
German Government‘s High-Tech Strategy, which was designed to ensure the com-
petitiveness of the German industry in the global market. The goal of this initiative
is the international leadership of the German economy. As a result, „4.0 Industry“ is
understood as the economical production of individualized products.

The Fourth Industrial Revolution (Industry 4.0) is as a result of the past three industri-
al revolutions that has already taken place. In fact, this is a synonym of future smart
industrial technologies. The basis for this modern industrial revolution is the glob-
al network connection of people, equipment and products, and the autonomous,
decentralized production units management and organization. This virtual and real
world synthesis helps to reconcile the work of equipment and production tools in
real-time with changing production requirements.

1.1. The Fourth Industrial Revolution – history

Industry 4.0 added value is the networking of manufacturing companies, suppliers and
potential buyers, helping to create maximum and flexible work productivity. Basically the
concepts of industry 4.0 are not new, but rather a continuous further development and
networking of existing old concepts as for example automation, lean -management or com-
puter-integrated manufacturing. The process that is called the Fourth Industrial Revolution
has been going on for more than 10 years.

In order to fully understand the basis of this industrial revolution, characterizing the main
features that distinguish it from the past, it is firstly necessary to briefly review the history of
industry. The differences between the characteristics of the three historical revolutions have
been highlighted early and now are easily recognizable.

During the First Industrial Revolution, which took place in 1760-1840, manual labor was
changed to mechanical equipment. First Industrial Revolution began in England. England's
leadership in external trade due to colonies and accumulation of capital has transformed
society, making trade and industry a new foundation.

The high impulse was given by invention of steam engine. Handmade was replaced by a
mechanical machine, carriages – to steamers and steamboats. This led to a huge jump in
productivity not only in the industrial sector (Fig.1.1).

At the end of the 19th century – in the early 20th century the emergence of conveyors
and work dividing mass production is the Second Industrial Revolution. Conveyor lines

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