Lean

Solutions.

THE HISTORY &

LANGUAGE OF
INDUSTRY 4.0
An Introduction to Industry 4.0 .....................................................................................................................................................3
The History of Industry 4.0 ...........................................................................................................................................................4
The First Industrial Revolution ..................................................................................................................................................5
The Second Industrial Revolution............................................................................................................................................5
The Third Industrial Revolution ................................................................................................................................................5
The Forth Industrial Revolution ................................................................................................................................................5
The Most Used Industry 4.0 Terms ..............................................................................................................................................6
Additive/Advanced Manufacturing .........................................................................................................................................6
Artificial Intelligence (AI) ................................................................................................................................................................6
Augmented Reality (AR) .................................................................................................................................................................6
Automation .............................................................................................................................................................................................7
Big Data ....................................................................................................................................................................................................7
Blockchain ...............................................................................................................................................................................................7
Cyber Physical Systems (CPS) ....................................................................................................................................................7
Circular Economy ...............................................................................................................................................................................8
Digital & Data Literacy ...................................................................................................................................................................8
Design Thinking ..................................................................................................................................................................................8
Industrial Internet of Things .......................................................................................................................................................8
Machine Learning ...............................................................................................................................................................................8
Machine 2 Machine Communication ......................................................................................................................................9
Pull Economy .........................................................................................................................................................................................9
Service-Orientation ............................................................................................................................................................................9
Shared Economy .................................................................................................................................................................................9
Smart Cities & Grids ........................................................................................................................................................................9
Smart Factories ................................................................................................................................................................................10
So What Is Next? ..............................................................................................................................................................................10
 AN INTRODUCTION TO INDUSTRY 4.0
The fourth industrial revolution, also known as Industry 4.0 (i4.0), is disrupting
almost every industry worldwide. It is rapidly transforming how businesses
operate causing dramatic changes to resourcing, capital and technology
investments.

The term Industry 4.0 was coined in 2011 by a group of representatives from
different fields by the German Government to enhance the competitiveness of
their manufacturing sector. The idea was adopted by the federal German
Government as part of their high-tech strategy for 2020.

Industry 4.0 refers to a new phase of the industrial revolution that focuses heavily
on interconnectivity, automation, machine learning and real time data. It has also
been referred to as Industrial Internet of Things (IloT) or Smart Manufacturing/
Factories.

i4.0 is the marrying of physical production and operations with smart digital
technology to create a more holistic and better-connected ecosystem for
businesses to focus on manufacturing and supply chain management.
THE HISTORY OF INDUSTRY 4.0

Virtual & Augmented Reality technologies will provide opportunities for expanded capabilities
in your business.

Before delving further into this latest manufacturing transformation, it is

beneficial to understand how exactly manufacturing has evolved since the
late 1700s. So far there have been 4 distinctive industrial revolutions.
THE FIRST INDUSTRIAL REVOLUTION

The first industrial revolution happened in 1784 with the first mechanical
weaving loom. This time period saw the migration of manual labour
performed by people and work animals to a more optimised form of labour
performed by people through the use of steam-powered engines and machine
tools.

THE SECOND INDUSTRIAL REVOLUTION

The world entered the second industrial revolution (also known as the
Technological Revolution) in the early 20th century with the advent of steel,
petroleum and the use of electricity in factories. Electricity enabled
manufacturers to increase efficiency and helped make factories more flexible.
During this revolution major manufacturing concepts were created like the
assembly line in 1870 to boost productivity.

THE THIRD INDUSTRIAL REVOLUTION

The next revolution started in the late 1960’s with the advent of electronics
made of silicon and the introduction of the computer. This saw a major shift
away from analogue and mechanical technology to digital technology and
software. The first programmable logic control systems were created by
Modicon in 1968.

THE FORTH INDUSTRIAL REVOLUTION

The latest industrial revolution or Industry 4.0 (i4.0) has emerged due to the
emphasis digital technologies are having on businesses. The technology
advancements offer a comprehensive, interlinked and holistic approach to
manufacturing. It connects the physical & digital, allowing for better
collaboration and access departments, partners, vendors, products and
people.
 THE MOST USED INDUSTRY 4.0 TERMS
To benefit from the advantages of Industry 4.0 it is important to understand its
terminology. The next stage in the evolution of industry, like the previous three,
the fourth revolution is a response to the rise of new technologies.

A coherent Industry 4.0 strategy has the potential to create new ways of
collaborating, boosting the speed and efficiency of performance levels, enhance
the customer experience and develop a complete end-to-end supply chain.

Success lies in having a thorough understanding of Industry 4.0 and

manufacturing’s new landscape. If you want to know how the difference between
M2M and AI continue reading the top i4.0 terms.

ADDITIVE/ADVANCED MANUFACTURING

A process by which 3d computer design data is used to build

up a component in layers by depositing a range of metals,
plastics and composite materials. Additive Manufacturing/3D
Printing is being used to create highly specialised products
and processes in industries including medical technologies,
agribusiness, mining, biopharmaceuticals and aerospace &
defence.

ARTIFICIAL INTELLIGENCE (AI)

Refers to an area of computer science where intelligent machines/software is

created that work or react like humans. AI is board term describing machines and
software carrying out non-traditional computing tasks.

AUGMENTED REALITY (AR)

Emerging technology that allows a computer-generated interface overlaid over

the real world for a composite view.
This technology can be used across a range of industries from data visualisation
in the office to locating hard to find pipes and conduits in the construction
industry.

AUTOMATION

Refers to the reduction of human intervention for repetitive and highly

standardised tasks. Using various control systems for operating equipment such
as machinery, processes in factories or materials handling are increasingly being
completed by autonomous technologies.

BIG DATA

The Industrial world has untapped data potential creating voluminous and
complex data sets inadequately analysed by traditional software. Big data creates
predictive, user behaviour and advanced data analytics finding correlations and
trends in your data.

BLOCKCHAIN

Blockchain was created for use as a digital ledger for cryptocurrency to keep track
of every transaction. The ledger is regularly updated and hosted in multiple
locations on millions of computers world-wide making blockchains a secure
method of sharing information about transactions.

Blockchain is the platform that allows cryptocurrencies to be traded. Blockchain is

advancing for use in a variety of industries from Financial Services, Digital Assets,
Smart Contracts and Supply Chain Management.

CYBER PHYSICAL SYSTEMS (CPS)

These systems are the merging of computation, networking and physical

processes. Embedded networks and computers control, monitor and continually
optimise processes. CPS’s will heavily integrate into cloud-based services and will
be tightly integrated with its users.
CIRCULAR ECONOMY

An alternative to the traditional linear economy of make, use and dispose. A

circular economy will make use of a resource for as long as possible, extracting
the maximum value from the life of the product. Schneider Electric derive 12% of
their revenue from circular activities.

DIGITAL & DATA LITERACY

Digital literacy refers to the ability to live, learn and work in a society where
communication and access to information is becoming more apparent on digital
platforms. Data literacy refers to the skill of deriving meaningful data from
collection points.

DESIGN THINKING

A process that seeks to define the user, the problem and the solution that best
suits the end user. Design thinking provides a solutions-based approach to solving
problems. It is a collection of hands-on methodologies for thinking & working in a
strategic and thought out process.

INDUSTRIAL INTERNET OF THINGS

An Industrial Internet of Things (IIoT) is comprised of a network of devices,

computers and sensors collecting and sharing large amounts of data. The data
collected is then stored in a centralised cloud-based repository where data is
aggregated and shared with end users in a meaningful way. IIoT applications can
be found in manufacturing, logistics, oil & gas, transportation, energy/utilities,
mining, aerospace and defence.

MACHINE LEARNING

Sometimes confused with AI, machine learning is based around giving machines,
robots or computers access to data and letting them learn for themselves. This
has applications across a wide variety of industries not just manufacturing.
MACHINE 2 MACHINE COMMUNICATION

Refers to the direct communication between devices/machinery using wired

or wireless communication. Machine to Machine communication can include
industrial instrumentation, enabling a sensor or meter to communicate the
information it records (such as temperature, inventory level, etc.) to software
that can use it like adjusting an industrial process based on machine
feedback or placing orders to replenish inventory.

PULL ECONOMY

Refers to the changing marketplace and the way that consumers are digesting
information. Traditional ecosystems where you push your services on your
consumers are becoming increasingly redundant in today’s market where
consumers are looking for you and convert on your reputation.

SERVICE-ORIENTATION

This strategy is about creating value by adding services to products or replacing a

product with a service. Selling maintenance contracts alongside machinery is an
example of Service-Orientation.

SHARED ECONOMY

Sometimes referred to as collaborative consumption, the shared economy

highlights the ability for individuals to rent or borrow goods instead of buying and
owning. Ride Sharing and Co-working Spaces are two prime examples of the
sharing economy.

SMART CITIES & GRIDS

Smart Cities are those that have an urban development vision to integrate
multiple information and communication technologies and IoT solutions to
manage a city full of assets including local government, information systems,
libraries and schools.
Smart Grids refers to electrical grids which include operational and energy
measure devices such as smart meters, smart appliances, renewable energy
sources and energy efficient power generation sources.

SMART FACTORIES

Like smart cities and grids the factories of the future will be monitored by
artificially intelligent machines overseeing the manufacturing process, reducing
the traditional manpower required on the factory floor.

Factories of future will be transformed into a communications hub for operations

to make timely, efficient and cost-effective decisions which are customer focussed.

SO WHAT IS NEXT?

You have just learnt some of the more prominent terms and definitions of
Industry 4.0 technologies. Some or all of these will help your business grow a
competitive advantage but you will be left behind without the correct
implementation of people, process and technology.

Contact TXM Lean Solutions for an obligation free chat about your business and
its strategy for entering the 4th industrial revolution. We will help you align your
people, process and technology.
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