Handbook of Industry 4.0 and SMART Systems

Diego Galar Pascual, Pasquale Daponte, Uday Kumar

• Publisher: CRC Press
• Year: 2019
• Print ISBN: 9781032103433
• eBook ISBN: 9780429849671
• Topic: Business
• Subtopic: Operations
• Index: Business

Industry 4.0 refers to fourth generation of industrial activity characterized by smart systems and internet-based solutions. This book describes the fourth revolution based on instrumented, interconnected and intelligent assets. The different book chapters provide a perspective on technologies and methodologies developed and deployed leading to this concept. With an aim to increase performance, productivity and flexibility, major application area of maintenance through smart system has been discussed in detail. Applicability of 4.0 in transportation, energy and infrastructure is explored, with effects on technology, organisation and operations from a systems perspective.

1

Fundamentals of Industry 4.0

CONTENTS

1.1 Introduction

1.2 Industry 4.0

1.2.1 Definition of Industry 4.0

1.2.2 What Is Industry 4.0?

1.2.2.1 Industry 4.0—What Is It?

1.2.2.2 Talking about a Revolution: What Is New in Industry 4.0?

1.2.2.3 On the Path to Industry 4.0: What Needs to Be Done?

1.2.3 Key Paradigm of Industry 4.0

1.2.4 Industry 4.0 Conception

1.2.4.1 Five Main Components of Networked Production

1.2.5 Framework of Industry 4.0: Conception and Technologies

1.2.6 Nine Pillars of Technological Advancement

1.2.6.1 Big Data and Analytics

1.2.6.2 Autonomous Robots

1.2.6.3 Simulation

1.2.6.4 Horizontal and Vertical System Integration

1.2.6.5 Industrial IoT

1.2.6.6 Cybersecurity

1.2.6.7 The Cloud

1.2.6.8 Additive Manufacturing

1.2.6.9 Augmented Reality

1.2.7 Macro Perspective of Industry 4.0

1.2.8 Micro Perspective of Industry 4.0

1.2.9 Industry 4.0 Components

1.2.9.1 Cyber-Physical Systems (CPS)

1.2.9.2 Internet of Things

1.2.9.3 Internet of Services

1.2.9.4 Smart Factories

1.2.10 Industry 4.0: Design Principles

1.2.10.1 Interoperability

1.2.10.2 Virtualization

1.2.10.3 Decentralization

1.2.10.4 Real-Time Capability

1.2.10.5 Service Orientation

1.2.10.6 Modularity

1.2.11 Impact of Industry 4.0

1.2.11.1 Quantifying the Impact: Germany as an Example

1.2.11.2 Producers: Transforming Production Processes and Systems

1.2.11.3 Manufacturing-System Suppliers: Meeting New Demands and Defining New Standards

1.2.12 The Way Forward

1.2.12.1 Producers Must Set Priorities and Upgrade the Workforce

1.2.12.2 Manufacturing-System Suppliers Must Leverage Technologies

1.2.12.3 Infrastructure and Education Must Be Adapted

1.3 RAMI 4.0 (Reference Architecture Model Industry 4.0)

1.3.1 RAMI 4.0

1.3.2 Additional Details of RAMI 4.0

1.3.2.1 Function of Layers on Vertical Axis

1.3.2.2 Function of Layers on the Horizontal Left Axis

1.3.2.3 Hierarchical System Architecture in Industry 4.0

1.3.3 Industry 4.0 Component Model

1.3.3.1 Specification of the Industry 4.0 Component Model

1.4 Servitization

1.4.1 The Concept of Servitization

1.4.2 Defining Servitization

1.4.2.1 Drivers of Servitization

1.4.3 Features of Servitization

1.4.4 Current State of Servitization and Impacts from Industry 4.0

1.4.5 Industry 4.0 Services

1.4.5.1 Industry 4.0 Servitization Framework

1.5 Product Service-System (PSS)

1.5.1 Definition of a PSS

1.5.2 Features of a PSS

1.5.2.1 Product-Oriented PSS (PoPSS)

1.5.2.2 Use-Oriented PSS (UoPSS)

1.5.2.3 Result-Oriented PSS (RoPSS)

1.5.3 Why PSS?

1.5.3.1 Environmental Rationales

1.5.3.2 Economic Rationales

1.5.3.3 Customer-Driven Rationales

1.5.3.4 Technological Drivers

References

LIST OF FIGURES

Figure 1.1 Main technologies of Industry 4.0

Figure 1.2 Nine advances transforming industrial production

Figure 1.3 Industry 4.0 is changing traditional manufacturing relationships

Figure 1.4 Macro perspective of Industry 4.0

Figure 1.5 Micro perspective of Industry 4.0

Figure 1.6 In Germany, Industry 4.0 will generate significant productivity gains

Figure 1.7 In Germany, Industry 4.0 will lead to increased manufacturing employment

Figure 1.8 RAMI 4.0 model

Figure 1.9 New control pyramid of RAMI 4.0

Figure 1.10 Industry 4.0 component model

Figure 1.11 Industry 4.0 component

Figure 1.12 Repository of the digital factory

Figure 1.13 I4 servitization framework

Figure 1.14 Evolution of the product-service system concept

Figure 1.15 (a) Traditional purchase of photocopier; (b) purchase of a document management capability

Figure 1.16 Product-service systems

Figure 1.17 PSS exemplification

Figure 1.18 Smiling curve in a servitization perspective

LIST OF TABLES

Table 1.1 Trends and expected developments in value creation factors

Table 1.2 Design principles of each industry 4.0 component

Table 1.3 Servitization definitions

Table 1.4 Popular definitions of a product-service system

1.1 Introduction

Industry 4.0 is one of the most frequently discussed topics among practitioners and academics today. For example, the German federal government announced Industry 4.0 as one of the key initiatives of its high-tech strategy in 2011 (Kagermann et al., 2013). Since then, numerous academic publications, practical articles and conferences have focused on the topic (Hermann et al., 2015).

The fascination for Industry 4.0 is twofold. First, for the first time, an industrial revolution has been predicted a priori, not observed ex-post (Drath, 2014). This provides opportunities for companies and research institutes to actively shape the future. Second, the economic impact of this industrial revolution is supposed to be huge, as Industry 4.0 promises substantially increased operational effectiveness as well as the development of entirely new business models, services and products (Kagermann et al., 2013; Kagermann et al., 2014; Kempf et al., 2014). A recent study has estimated that these benefits will have contributed as much as 78 billion euros to the German GDP by the year 2025 (Bauer et al., 2014). Germany will not be the sole country to profit; similar benefits are expected throughout the world.

With Industry 4.0 becoming a top priority for many research centers, universities and companies within the past three years, the manifold contributions from academics and practitioners have made the meaning of the term more blurry than concrete (Bauernhansl et al., 2014). Even the key promoters of the idea, the “Industry 4.0 Working Group” and the “Plattform Industry 4.0,” only describe the vision, the basic technologies the idea aims at and selected scenarios (Kagermann et al., 2013). They do not provide a clear definition. As a result, a generally accepted definition of Industry 4.0 has not been published to date (Bauer et al., 2014).

According to Jasperneite et al. (2012), scientific research is always impeded if clear definitions are lacking, as any theoretical study requires a sound conceptual and terminological foundation. Companies also face difficulties when trying to develop ideas or take action, but are not sure what exactly for. “Even though Industry 4.0 is one of the most frequently discussed topics these days, I could not explain to my son what it really means,” a production site manager with automotive manufacturer Audi puts it. This comment reflects the finding of a recent study that “most companies in Germany do not have a clear understanding of what Industry 4.0 is and what it will look like” (eco—Verband der deutschen Internetwirschaft, 2014).

As the term is unclear, companies are struggling when it comes to identifying and implementing Industry 4.0 scenarios. Design principles explicitly address this issue by providing a “systemization of knowledge” (Gregor et al., 2009) and describing the constituents of a phenomenon. In this way, design principles support practitioners by developing appropriate solutions. From an academic perspective, design principles are the foundation of design theory (Gregor et al., 2002). However, we could not find any explicit Industry 4.0 design principles during our search of the literature (Hermann et al., 2015).

This chapter aims to fill this gap in the research. Based on a literature review, it provides a definition of Industry 4.0 and identifies six design principles that companies should consider when implementing Industry 4.0 solutions (Hermann et al., 2015).

1.2 Industry 4.0

The term “Industry 4.0” is used for the industrial revolution taking place currently. This industrial revolution has been preceded by three other industrial revolutions. The first was the introduction of mechanical production facilities starting in the second half of the eighteenth century; this intensified throughout the nineteenth century. The introduction of electricity and the division of labor (i.e., Taylorism) in the 1870s led to the second industrial revolution. The third industrial revolution, also called “the digital revolution,” started in the 1970s, when advanced electronics and information technology (IT) developed the automation of production processes (Hermann et al., 2015).

The term “Industry 4.0” was introduced in Germany in 2011, when an association of representatives from business, politics and academia promoted the idea as an approach to strengthening the competitiveness of the manufacturing industry (Kagermann et al., 2011). The German federal government supported the idea by announcing that Industry 4.0 would be an integral part of its “High-Tech Strategy 2020 for Germany” initiative, aimed at technological innovation leadership. The subsequently formed “Industry 4.0 Working Group” developed recommendations for implementation; these were published in April 2013 (Kagermann et al., 2013). In this publication, Kagermann et al. (2013) describe their vision of Industry 4.0 as follows.

In the future, businesses will establish global networks that incorporate their machinery, warehousing systems and production facilities in the shape of cyber-physical systems (CPS). In the manufacturing environment, these CPS comprise smart machines, storage systems and production facilities capable of autonomously exchanging information, triggering actions and controlling each other independently. This facilitates fundamental improvements to the industrial processes involved in manufacturing, engineering, material usage and supply chain and life cycle management. The smart factories that are already beginning to appear employ a completely new approach to production. Smart products are uniquely identifiable, may be located at all times and know their own history, current status and alternative routes to achieving their target state. The embedded manufacturing systems are vertically networked with business processes within factories and enterprises and horizontally connected to dispersed value networks that can be managed in real time—from the moment an order is placed right through to outbound logistics. In addition, they both enable and require end-to-end engineering across the entire value chain (Kagermann et al., 2013).

These ideas built the foundation for the Industry 4.0 manifesto published in 2013 by the German National Academy of Science and Engineering (Acatech, 2013).

The term is currently used globally. At the European level, the public–private partnership for Factories of the Future (FoF) addresses and develops Industry 4.0-related topics (European Com...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Preface
• Authors
• 1. Fundamentals of Industry 4.0
• 2. SMARTness and Pervasive Computing
• 3. The Industry 4.0 Architecture and Cyber-Physical Systems
• 4. Cloud Computing, Data Sources and Data Centers
• 5. Big Data Analytics as Service Provider
• 6. IoT and the Need for Data Rationalization
• 7. OPERATOR 4.0
• 8. Cybersecurity and Risk
• 9. Industry 4.0 across the Sectors
• Index