REPORT ON

APPLICATION OF INDUSTRY 4.0

Submitted by

Ramya E

21mba115

Submitted To

MASTER OF BUSINESS ADMINISTRATION

KCT Business School

(An autonomous institution affiliated to Anna University,

Chennai) Coimbatore
 CHAPTER - 1

INTRODUCTION

Industry 4.0 is transforming how businesses produce, enhance, and distribute their goods.
The Internet of Things (IoT), cloud computing, analytics, AI, and machine learning are among the
cutting-edge technology that manufacturers are incorporating into their manufacturing processes.
Advanced sensors, embedded software, and robotics are all featured in these "smart factories,"
which collect and analyse data to help with decision-making. When operational data from ERP,
supply chain, customer service, and other corporate systems is linked with data from production
processes, even greater value from previously segregated information is produced. Increased
automation, preventative maintenance, process improvement self-optimization, and, most
importantly, a new level of efficiency and responsiveness.
FIRST REVOLUTION :
The first industrial revolution, which began in Britain in the late 18th century, made mass
production possible by substituting water and steam power for just human and animal power.
Finished products were manufactured by machines as opposed to being carefully made by hand.
SECOND REVOLUTION :
Assembly lines, the utilisation of gas, oil, and electricity were all introduced during the second
industrial revolution, which occurred a century later. With the introduction of these new power
sources and more sophisticated telephone and telegraph communications, manufacturing
processes began to be automated and mass produced.
THIRD REVOLUTION :
The third industrial revolution, which started in the middle of the 20th century, improved
production processes by incorporating computers, modern telecommunications, and data analysis.
Beginning with the integration of programmable logic controllers (PLCs) into factories, the
process of digitizing equipment to facilitate data collection and sharing while automating some
procedures.
FORUTH REVOLUTION :
The fourth industrial revolution, commonly known as Industry 4.0, is now underway. With the use
of smart machines and factories, informed data enables the production of goods to be more
productive and efficient throughout the value chain. Increased flexibility enables producers to use
mass customisation to better satisfy client requests, eventually aiming to maximise efficiency
with, in many circumstances, a lot size of one. A smart factory can achieve information
transparency and better judgements by gathering more data from the production floor and merging
it with other company operational data.
Internet of Things (IoT)
One essential element of smart manufacturing is the Internet of Things (IoT). On the
manufacturing floor, machines have sensors with IP addresses that enable them to communicate
with other web-enabled devices. Large-scale valuable data collection, analysis, and exchange are
made possible by this mechanisation and connection.
Cloud computing
A key component of any Industry 4.0 plan is cloud computing. The connectivity and
integration of engineering, supply chain, production, sales and distribution, and service are
necessary for the full realisation of smart manufacturing. The cloud makes that feasible.
Additionally, the cloud can be used to process the normally vast amount of data being stored and
evaluated more quickly and affordably. For small- and medium-sized manufacturers who can
appropriately assess their demands and scale as their firm grows, cloud computing can
significantly lower startup costs.
AI and machine learning
Manufacturing firms can fully benefit from the abundance of information
created not just on the factory floor but also across all of their business units, as well as from
partners and outside sources, thanks to AI and machine learning. AI and machine learning can
produce insights that give operations and business processes visibility, predictability, and
automation. For instance, industrial equipment frequently malfunctions when a product is being
produced. Businesses can do machine learning-based predictive maintenance using data gathered
from these assets, increasing uptime and efficiency.
Edge computing

Some data analysis must be done at the "edge," or where the data is generated, due to the
requirements of real-time production operations. This reduces the amount of time between the
production of data and the need for a response. For instance, the device may need to be used to
take action in close to real time when a safety or quality concern is discovered. Depending on
how reliable the network is, it may take too long to transport data from the manufacturing floor
to the enterprise cloud and back. Data stays close to its source when edge computing is used,
lowering security threats.
Cybersecurity

Manufacturing firms have not traditionally given cybersecurity or cyber-physical systems much
thought. The same operational equipment (OT) connectivity that makes industrial processes more
efficient also opens up new entry points for unwanted attacks and malware. It is crucial to take
into account a cybersecurity strategy that includes both IT and OT equipment when undergoing a
digital transformation to Industry 4.0.
DIGITAL TWIN
Manufacturers can now construct digital twins, which are virtual clones of processes, production
lines, factories, and supply networks, thanks to Industry 4.0's digital transformation. Data is
collected from IoT sensors, gadgets, PLCs, and other internet-connected things to construct a
digital twin. Digital twins can help manufacturers enhance operations, design, production and fresh
goods. Manufacturers can test changes to the process to find ways to reduce downtime or increase
capacity by modelling a production process, for instance.

CHARACTERISTICS OF A SMART FACTORY

Data analysis for optimal decision making
For industrial firms, embedded sensors and networked equipment generate a sizable
amount of big data. Manufacturers can use data analytics to look into historical trends, spot
patterns, and improve decisions. To gain deeper insights, smart factories can also integrate data
from other areas of the company as well as their wider ecosystem of suppliers and distributors.
Manufacturers can base production choices on sales margins and staff by examining data from
human resources, sales, or warehousing. As a "digital twin," operations can be completely
represented digitally.

IT-OT integration

Interconnectivity is essential to the network architecture of the smart factory. Other factory assets
can access and use real-time data produced by sensors, devices, and machines right away. Real-
time data can also be exchanged with other corporate software stack components, such as
enterprise resource planning (ERP) and other business management software.
Custom manufacturing
Smart factories can more efficiently generate things that are personalised to each
customer's needs. In fact, manufacturers strive to attain a "lot size of one" in a cost-effective
manner across a wide range of industrial areas. Manufacturers may quickly produce small batches
 of unique things for specific clients utilising cutting-edge simulation software applications, new
materials, and technologies like 3-D printing. Industry 4.0 is focused on mass customization, as
opposed to the first industrial revolution, which was about mass production.
Supply chain
A reliable Industry 4.0 plan must link manufacturing operations with a transparent,
effective supply chain since industrial operations depend on it. The method manufacturers get raw
materials and deliver completed goods is altered as a result. Manufacturing companies can better
plan delivery by giving suppliers access to some production data. Deliveries can be redirected or
delayed, for instance, if a manufacturing line is experiencing a problem, in order to save time and
money. Additionally, businesses can utilise predictive shipping to dispatch finished items at
precisely the appropriate time to fulfil consumer demand by evaluating weather, transportation
partner, and retailer data. Blockchain is quickly becoming a crucial piece of technology for
enabling supply chain transparency.
Industry 4.0 and hybrid multicloud IT architecture
Construction of a hybrid multicloud IT infrastructure is a crucial step in manufacturers'
digital transformation in order to benefit from Industry 4.0. Hybrid multicloud refers to the
management of a company's computer workloads across two or more public and private clouds.
This enables companies to optimise their workloads across all of their clouds because some
environments are more appropriate or economical for running particular workloads.
Manufacturers can shift their current workloads from their on-premises location to the finest cloud
environment if they want to undergo digital transformation and work in a safe, open environment.

NEED OF THE STUDY

 The application of industry 4.0 has created a great impact on production manufacturing
sector and it reduces human error. It 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.
 These smart factories are equipped with advanced sensors, embedded software and
robotics that collect and analyze data and allow for better decision making.
 Even higher value is created when data from production operations is combined with
operational data from ERP, supply chain, customer service and other enterprise systems to
create whole new levels of visibility and insight from previously siloed information.
OBJECTIVES OF THE STUDY :

PRIMARY OBJECTIVE:

 To addresses common difficulties of understanding the scope and the underlying technologies
of “Industry 4.0” in Small Scale Industries

SECONDARY OBJECTIVE

 To know about the knowledge among the entrepreneurs about industry 4.0

 To know about the difficulties to implement industry 4.0 in Small Scale Industry.

SCOPE OF THE STUDY:

 Industry 4.0 is assumed to yield extensive industry-spanning opportunities.

However, exploiting these opportunities requires a targeted implementation of
Industry 4.0. The purpose of this paper is to generate a deeper understanding of
relevant implementation action.

 Existing recommendations are mostly general, highly aggregated and difficult to

grasp. Yet, specific and concrete actions that need to be taken to accelerate the
realization of Industry 4.0 are essential.

STATEMENT OF THE STUDY:

 Industry 4.0 is a strategic initiative recently introduced by the German government. The
goal of the initiative is transformation of industrial manufacturing through digitalization
and exploitation of potentials of new technologies.

 An Industry 4.0 production system is thus flexible and enables Individualized and
customized products. The aim of this paper is to present and far-ciliate an understanding
of Industry 4.0 concepts, its drivers, enablers, goals and limitations.

NEED GAP ANALYSIS :

The implementation of Industry 4.0 has a greater impact on the fourth revolution than any other
factor, from the importation of raw materials to real-time monitoring systems. It offers the
capability for considerable improvement in all areas of production unit. Industry 4.0 is not
primarily suited to SMEs because they lack the financial resources, and there should be a unit for
mass manufacturing instead. India's manufacturing industry primarily concentrates on the
automation, services, and agriculture sectors rather than adopting this application fully. Around
24% of the population is suitable for Industry 4.0, including 30% of technology suppliers and
16% of manufacturing facilities.
 CHAPTER - 2

REVIEW OF LITETRATURE :
PAPER -1 :
Deveshwar Aarti (2006) With a contribution of more than 34% of all exports and close to 40% of
all industrial production, small-scale industries have become a thriving and dynamic sector of the
Indian economy. Over 250 lakh individuals are currently employed in this business. Additionally, it
serves as a breeding ground for entrepreneurship talent and a catalyst for industrial growth through
a vast network of more than three million units across the nation, accounting for approximately
95% of all industrial units in the nation. The removal of tariffs and quotas, new technical norms,
sanitary regulations, and anti-dumping proceedings are all posing additional obstacles for business
as a result of the global trading system.Every economic activity will be impacted by the WTO, and
the small-scale sector is no exception. The WTO Agreements have given rise to a number of risks
and difficulties.

PAPER 2

Aremu, Mukaila Ayanda (2011)Sustainable development is recognized as an essential

requirement for achieving economic goals without degrading the environment, major problems
arise in implementing the concept of sustainability. At the most basic level, researchers dealing
with sustainable development have suggested that the achievement of sustainability requires
ecologically sustainable political and economic systems, organizations, and individuals (Starik
and Rands 1995; Costanza and Daly 1992; Gallup International Institute 1992). Specifically,
governments, consumers, and enterprises contribute and play crucial roles in reaching sustainable
development. As a result, if goals of sustainability are to be achieved, small and medium-sized
enterprises must be reformed to minimize their negative ecological and social impacts.

PAPER 3

(Gladwin, 1992) Ashok Sharma and kumar (2011), the main aim of this article is to examine the
effect of Working Capital on profitability of Indian firms. The finding of researcher shows
significantly depart from the various international markets. The result show that Working Capital
Management and profitability in positively correlated in Indian companies Research also shows
that the inventory of number of day and number of days account. Payment is negatively whereas
number of days accounts receivable and cash conversion period a positive relationship with
corporate profitability.ameters of selected dyes.

PAPER 4

Ayozie Ogechukwu, Daniel 1 (2010) Numerous significant contributions to the nation's

economic progress can be attributed to small-scale industries. The SSI sector has significantly
contributed to job creation and rural industrialisation because to its lower capital intensive and
high labour absorption nature. This industry is perfectly placed to capitalise on the strengths of
the conventional knowledge, capital, and marketing strategies. Therefore, the value of small
business is an issue that affects both industrialised and developing nations. The government is
looking to small and medium-sized businesses and entrepreneurs in both developed and
developing nations as a way of economic development and a real means of fixing problems. Its
involvement in generating domestic savings and making use of local resources is another
apparent factor. It serves as a foundation for the creation of relevant technology and offers real
employment opportunities for skilled, unskilled, and semi-skilled labourers. Many young men
and women, both educated and less educated, who have graduated from schools, colleges,
polytechnics, and universities have been able to find gainful employment through it.

PAPER 5

The author Beydokhti Abbas Taleb (2007) said unequivocally in his writings that the Small Scale
Industry (SSI) sector is essential to economic growth and makes a significant contribution to
India's total industrial output, exports, and job creation. As a result, the nation's 3.6 million SSI
units create more than 8000 commodities and employ around million people. Tiny-scale industry
units typically operate on a proprietary or partnership basis and are relatively small in scale,
which results in a weak capital base for them. In terms of capital formation, they are in a bad
position. The fact is that a company's ability to use and manage its financial resources effectively
determines whether it will succeed or fail in a significant way.

PAPER 6

Bhavani T.A. (2006) the phenomena of liberalization, globalization, and rapid technological
developments are changing business environment world over for the past two decades. There has
been a shift from „policy regulation‟ to „market orientation‟ all over the world through
liberalization of the state controls on economic transactions. Globalization is taking place in the
sense that all the economies are becoming highly integrated. There have been rapid technological
developments that are drastically changing the methods of doing business. The recent
liberalization and globalization policies are not only exposing industrial units to market
competition to a greater extent but also making markets more and more competitive. These two
phenomena are together posing significant challenges to individual enterprises, Technological
developments, on the other hand, are providing opportunities to the industrial units to improve
their competitive strength so as to deal with these Challenges.

PAPER 7

Chuthamas Chittithaworn (2011) Business success is usually the outcome of the way of doing
business and cooperation. Inter-firm cooperation, consultation, performance measurement, and
flexibility may play an important role in business success. Inter-firm cooperation contributes
positively to gaining organizational legitimacy and to developing a desirable marketplace
reputation. Cooperation also may enable the small firm to improve its strategic position, focus on
its core business, enter international markets, reduce transaction costs, learn new skills, and cope
positively with rapid technological changes. Successful firms were likely to spend more time
communicating with partners, customers, suppliers, employees. Use of outside professionals and
advisors, and the advice and information provided by customers and suppliers is also important
for business success. Networking seems to be important both between and within firms. The
results show that customer and market, and resources and finance played an important role in
ensuring the SMEs business success in Thailand. Innovative product, quality, cost, reliability,
and services are the key strategic dimension in business success. Innovative product gives added
value to the customer and it is important to achieve a suitable balance between product quality
and costs.

PAPER 8

The Economic Survey of the Indian Government (2004-05) The SSI sector experienced
consistent expansion in the number of units, production, employment, and exports from 2000-01
to 2004-05. While employment expanded by 4.4% a year on average during this time, the
average yearly growth in the number of units was roughly 4.1%. Despite the advancements
mentioned above, entrepreneurs nevertheless confront a number of issues. The lack of timely and
enough credit, technological obsolescence, a backlog in the infrastructure, marketing restrictions,
etc. are a few of the key issues encountered.
PAPER 9

The Economic Survey, Government of India (2004-05) during 2000-01 to 2004-05 the SSI sector
registered continuous growth in the number of units, production, employment and exports.
During this period the average annual growth in the number of units was around 4.1%, while
employment grew by 4.4% annually. In spite of the progress mention above entrepreneurs faces
several problems. Some of the major problems faced are non-availability of timely and adequate
credit, technological obsolescence, infrastructural bottleneck, marketing constraints etc.

PAPER 10

Gábor HUNYA,(2011) Basic legal and regulatory framework is well in place, the
implementation of the legislative framework is often cumbersome and contradictory in Romania.
Administrative procedures and formalities represent a resource-consuming burden for SMEs.
Another pressing problem is the mutual indebtedness of companies and especially the payment
arrears of the public to the private sector. Before looking for funding sources, potential
beneficiaries have to identify what are their real needs and to define clear and coherent ideas of
what they want to achieve and how.

PAPER 11

David A. Wyrick and Ganesh S. Natarajan (2011) Most SMEs anticipated information from the
support programmes, and some anticipated financial assistance. The effectiveness of the various
support programmes was assessed based on how well they deliver knowledge, counsel, financial
assistance, and ongoing feedback. The environmental performance of SMEs was impacted and
enhanced by a good assistance programme. It was found that public sector purchase encouraged
SMEs to adopt sustainable business practises, which benefited the local and regional economies.
Sustainable development was considered to be both technically possible and commercially viable
because public sector industries have the financial resources and can also boost the profitability of
the SMEs they source from.

PAPER 12

Abdul Razak Ibrahim together with Rohana Ngah (2011) The conclusion demonstrates that
employees' expertise, knowledge, and competence do not influence how well they get along with
customers and other parties. SMEs should concentrate on this issue to connect their personnel
with the crucial third parties.
for the future of business. Compared to other aspects of intellectual capital, relationship capital is
crucial for information exchange. The firm must effectively share the information and expertise
it has obtained from consumers, suppliers, and outside sources in order to stay ahead of the
competition and engage in innovation. However, as they are the organization's internal resources,
human capital and structural capital should be addressed appropriately.

PAPER 13

HODOROGEL, Roxana Gabriela (2011) Paradoxically, the financial and economic crisis in
Germany brought about an unanticipated change: people's enthusiasm in starting businesses,
which had been waning in recent years, started to increase. In order to start a business, more and
more people are turning to counselling services, according to the annual report on SMEs(1). This
is because the crisis has affected all economic sectors.

PAPER 14

Working capital and profitability have been proven to have a strong and significant association in
prior study, according to Sanjiv Mittal, Mohinder Kumar, and Bhavet (2011). The best working
capital management practises in small-scale industry increased operational effectiveness,
profitability, and liquidity. It shows that working capital management is crucial for small
business owners in particular.

PAPER 15

This study, by Sayeda Talmina Quayyum (2011), aims to determine whether working capital
management and manufacturing companies' profitability are related in any way. The goal of this
study is to determine whether there is a statistically significant relationship between profitability
and working capital management. Additionally, the researcher explained how management
actively participates in maximising their liquidity, profitability, and working capital components.
This essay also demonstrates how the degree of significance of a link varies from industry to
industry.

PAPER 16

Monica Chakraborty (2016) conducted a study to identify the precise reasons of Jessop and
Company, Dum Dum's (Kolkata) illness and the solutions. Prepared questionnaires were used to
gather primary survey data for the study, and secondary data were also gathered.from
newspapers and annual reports. Charts and graphs displaying percentages and other numerical
figures were created using descriptive statistics to examine the data. The findings indicate that
improper management, inexperienced labour, subpar advertising efforts, routine material theft,
and improper use of financial resources are the main causes.

PAPER 17

Hare Prasad and Sree Krishna (2015) Their research offered an explanation for occupational
illness. They noted that the signs of illness were irregular or subpar account turnover, sluggish
and subpar stock movement, a drop in output, sales, and profitability, frequent terms and
condition violations, and requests for extra grants. Additionally, they discovered that SSIs
frequently experience issues related to the development of excess capacity, the absence of
comprehensive data, the underutilization of installed capacity, inadequate production planning,
persistent recessionary conditions, and finally a shortage of raw materials.

PAPER 18

Kumar Singh (2015), According to his analysis, this essay was broken into three parts. The third
section provides various treatments and conclusions for industrial sickness after discussing the
concept of industrial sickness and general causes of industrial disorder.

PAPER 19

The book "Industrial Sickness: Causes and Treatments" Jain Swati (2014) She made an effort to
examine the factors that contribute to industrial illness in India as well as the many issues the
small-scale industrial (SSI) sector faces. Her research also focuses on the cures for India's ailing
industrial units in addition to this review. The main takeaways from her research relate to the
many issues that the SSI units encounter when running their businesses in the areas of marketing,
finance, production, and infrastructure. Higher prices, a high cost of production, outdated
equipment, a lack of working capital, a difficult application process for funding, a lack of raw
materials and technical support, an ineffective quality control system, and a lack of mechanisms
for research and development were all discovered. Considering this, it was suggested that SSIs
ought to take by implementing programmes for getting cheaper money, subsidies, and steps to
manage the supply of power and the pricing of fuels, the government must take full responsibility
for their internal concerns and offer full aid and support for the development of ill and new SSI
units.
PAPER 20

Praveen Kumari, "Industrial Sickness and the Role of the Board of Industrial and Financial
Reconstruction (BIFR)" (2014), They discuss the investigation of occupational illness and the
function of BIFR in containing that illness. The conclusion from his paper is that Industrial
Sickness is a global phenomenon, even though its prevalence in developed nations may be lower
than in less developed ones where industrialization has not been a thrilling experience due to a
low capital base and low level of technological and managerial know-how. India has been
particularly affected by this ailment; over the past ten years, the industrial illness has grown to
uncontrollable proportions and shows no signs of abating. The government and people are
extremely concerned about the developing industrial disease in the nation financial institutions
because it gradually consumes the industry, saps economic vigour, and confuses all beneficial
programmes for economic development. In actuality, industrial illness permeates everywhere and
is posing a very serious problem to several economic sectors.

PAPER 21

Amol O Kachhwah's Sickness in Small Scale Industries (2014) He discussed the numerous causes
of illness in India's small-scale industry. Two categories of motives were established. They are
internal and external causes. Both are severely affected by industrial illness in the Indian small-
scale sector. He made a number of recommendations for reducing the illness in the small business
sector.

PAPER 22

Gujarat's Small-Scale Industry: Health and Development Strategies, Heena Upadhaya & Sarita
Agrawal (2014), They discussed industrial illness and the funding options available in Gujarat
for the development of sick units. The main cause of industrial illness is competition in the
Indian market. The main causes of industrial disease in Gujarat are external factors including
inadequate bank funding, changes in government regulations, incorrect raw material and
electricity supply, and the availability of financial resources.

PAPER 23
Chopade B.B., "Growth and Sickness of Small Scale Industries in India" (2013), He has made
known some details demonstrating how India's industrial sector functions as a productive tool for
advancement. According to the most recent data, the S.S.I. sector of India, which makes up 95%
of the nation's industrial units and contributes 40% of the value added in the manufacturing
sector, shares 36% of the total exports, generates 9.50% of the nation's GDP, and employs close
to 9 lakh people annually, registered a sectored growth rate of 9.20% as opposed to 7.5% of the
nation's overall industrial growth rate during 2011–12. The industry added 5.7 million new
employment during the 11th plan, and 7.6 million more are anticipated to be added by the 12th
plan.

PAPER 24

Bangladesh Perspectives on Sick Industries: Problems and Solutions Solayman Hoque, A.K.M.,
and Biswas, S.K. (2013), They described an effort that had been done to pinpoint the reasons
why Bangladeshi industries were falling ill. The conditions of 10 industries from various Sector
Corporations in Bangladesh have been examined in this report. The study's key findings are that
inappropriate application of production planning and control methodologies and improper use of
tried-and-true management techniques are the primary internal reasons of poor industry
performance or revenue earning in the majority of the industries examined.

PAPER 25

Dr. M. K. Rastogi and Prakash Yadava's Analysis of Remedies for Revival of Sick Small Units
in the Indian Economy (2013), They carried out a study on the Indian economy's ill units and the
analysis of revival. They looked at the standards utilised by government organisations in India to
detect industrial illness and outlined their shortcomings. Employee involvement, aggressive
product advertising in new markets, cost management methods, and product repositioning are the
main strategies they discovered from the study for revival. investments in R&D and new
markets, Changes in product mix and pricing, a focus on core competencies, lean management,
and image-building Many strategy aspects, especially those that contribute to organisation
development including employee engagement, cost management, and a focus on core
competencies, have higher scores in successful firms.
 CHAPT ER -3

RESEARCH METHODOLOGY

The authors define research methodology as "the strategy or architectural design by which the
researcher maps out an approach to problem-finding or problem-solving." Research Design.

The present study is Descriptive and analytical in nature

Sampling Design

 The survey is not taken from the entire population. Where only a few units of population
under the study are considered for analysis, it is called as sampling.
 As for the present study, the population size is infinite; the adoption of sampling method
was inevitable. The sampling plan consists of sample unit, sample size and sampling
method.

(a) Sample Unit

 The sample unit refers to the respondents who are to be surveyed. The Sampling Unit
may be Geographical, Construction Unit, Social unit or it may be an individual.
 The size of this study comprises of the individual Small scale Entrepreneurs in
Coimbatore.

(b) Sample Size

The sample size refers to the number of items to be selected from the universe to constitute a
sample. A sample of 150 respondents has taken for the study.

(c) Sampling Method

This study has based on convenience sampling method.