Industry 4.0 is an anticipated transformation which impacts manufacturing industries around the world. With the help of more advanced technology, Industry 4.0 aims to redefine how machines interact with one another.
In 2011, at the Hannover Fair, the German government officially coined the phrase Industrie 4.0. Germany is attempting to capitalize on its technical knowledge (Bosch) as well as its automation (Siemens) and ERP (SAP/Odoo) competencies. It is becoming the leading market and provider for Industry 4.0. The market share of industry 4.0 in 2026 is expected to rise up to USD 210 Billion.
Impacts Of Industry 4.0 In Manufacturing
Industry 4.0 accelerates company operations by fusing manufacturing and IT technologies. They includes the Internet of Things, artificial intelligence and machine learning, mixed reality, and 3D printing. With highly effective, automated robotics, manufacturers can gather, analyze, and act on enormous quantities of data like never before.
Manufacturing technologies are advancing to completely take into account both automation of information and data interchange. It is vital in an era where digital transformation is the ultimate goal of the majority of businesses.
Design, sales, inventories, scheduling, quality, engineering, customer and field service are all included in the scope of Industry 4.0, as well as the complete product life cycle and supply chain. Everyone provides accurate, current, and pertinent perspectives on business and production processes, as well as significantly deeper and timely analytics.
Advantages of Industry 4.0 in Manufacturing
The way machines communicate will alter as a result of advancements in the Internet of Things (IoT), artificial intelligence (3D printing), and other areas. There are several advantages the process will bring to the manufacturing industry. They include:
Businesses employ industry 4.0 technologies as a collection of tools for activities involving continuous improvement. The technologies also have a significant impact on opportunities that could lead to the development of new business models and organizations. When and nearly wherever needed, 3D printing enables the fast creation of low volume products.
Automation, analytics, and machine-learning algorithms have liberated a large portion of the detailed work that once fell into the hands of human operators. This entails faster, more effective manufacturing that is available around-the-clock, with human operators serving mainly as system monitors and maintainers.
Reducing bottlenecks and idle time in production lines boosts productivity across all connected operations. It also lowers the cost of hiring temporary workers to fill positions created by changing work patterns. Additionally, it results in fewer downtimes.
Industry 4.0 streamlines manufacturing by increasing visibility and throughput for operations. This enables manufacturers to continue providing value to consumers in terms of product quality, safety, or customer experiences. Manufacturers can identify mistakes earlier rather than later, when repair work is more expensive, by using machine learning algorithms.
Optimized Supply Chain Management
You will have superior visibility throughout the whole supply chain thanks to Industry 4.0 technologies, processes, and systems. Additionally, your supply chain will be better connected, allowing for real-time monitoring as well as improved communication and teamwork.
This can make it easy to see supply chain bottlenecks and other issues before they affect the output of the production line. With this increased information, you can take preventative action. Your ability to respond to shifting market conditions and consumer needs will also improve as a result of your supply chain’s increased resilience and agility.
Disadvantages Of Industry 4.0 In Manufacturing
Despite its groundbreaking benefits, there are some disadvantages of Industry 4.0 that restrict businesses from adopting it. They include:
Technology is a significant investment, and so is the skill required to put the technology into practice. Knowing how to use emerging technologies like IoT, augmented reality, and AI might result in severe budgetary limitations as well as a lack of communication between all stakeholders.
Requires Trained Personnel
Humans continue to be essential to manufacturing and to industry as a whole in order to facilitate production. However, as more systems become digitally connected, the demand for highly trained workers increases, which may accidentally result in a decrease in the demand for low-skilled workers.
Increase In Unemployment
According to a recent study by the McKinsey Global Institute, the adoption of AI and automation will have an effect on about one-fifth of the world’s workforce. Robotics and automation may result in job losses, particularly for blue-collar workers who are less educated and less skilled.
Get Started With Industry 4.0 Today
Digital transformation to leverage industry 4.0 is exceptionally rewarding but equally challenging. There are several factors to consider before you can shift your manufacturing process to industry 4.0 standards.
DEHA Vietnam JSC is a leading name in offering software solutions where our skilled professionals analyze your business and recommend the most suitable Roadmap for digital transformation. Explore our blog to obtain in-depth information on taking practical measures to enter Industry 4.0, and sign up for a consultation call to get started with industry 4.0 today!