Ironbridge in Shropshire. A world-famous industrial monument.

Understanding Industry 4.0: Part 1

Rather than being a futile catchphrase, Industry 4.0 represents a meaningful change in the way products are made with the digitalisation of manufacturing processes. Industry 4.0 is the fourth industrial revolution.

What about Industry 1.0-3.0?

To appreciate how Industry 4.0 is changing the manufacturing landscape, it helps to look at the revolutions that came before it.

We have all heard about the first industrial revolution. It was forged 200 years ago at the Ironbridge Gorge, just a few miles from where Cloud Construct is based. It was the transition from manual labour to mechanisation through the use of water and steam power and it greatly improved productivity.

The second industrial revolution took this to another level with the use of steel and electricity creating mass production.

The third revolution was the uptake of electronic technology and eventually computer and automation software.

Just as the second revolution was an enhancement of the original industry disruptive revolution, the fourth revolution is a development of the third technology-based revolution.

We are now in an era of the smart factory, where data and machine learning nourish autonomous systems. These super smart machines will keep developing themselves, constantly improving efficiency and productivity, whilst reducing waste.

The three key acronyms to know about:

When you hear people talk about Industry 4.0, chances are a host of equally mysterious phrases and acronyms will accompany the conversation. Here are three of the most useful ones to know about:

ERP – Enterprise Resource Planning

This is a business process management software that connects and manages many aspects of a business, such as finance, supply chain, production and human resources – pooling it into one place.

IoT – Internet of Things

This refers to how machines and devices can be connected to communicate with each other wirelessly through the Internet. The connectivity means they can collect and communicate data, which will streamline processes. You might have smart products in your house that operate in the same way. On a bigger scale, in factories, the data collection can vastly improve efficiency.

CPS – Cyber-Physical Systems

These are a network of interacting elements, controlled by computer-based algorithms via the Internet. It encompasses real-time systems, computer science, robotics and sensor networks. It can also improve efficiency, as well as autonomy and functionality.

Jargon aside – how do these advancements really transform business?

Let’s use the example of a company that makes a food we eat for breakfast. Before any of the industrial revolutions, breakfast foods would be harvested by farmers and within the same village, baked and packaged for the locals.

Along comes the innovations with coal, steam and waterpower, and suddenly people are flocking to the city to work in factories, where machinery could now work faster to mill and package the food.

Revolution number two brings the invention of electricity and enables the cereal to be mass-produced on a larger scale.

From the 1950s onwards, digitalisation was slowly introduced. Computers and robotics now drive factory machinery; every detail of the packaging can be digitally designed, machines can help create a safer working environment and the industry grows further.

Now, with Industry 4.0 utilising the IoT and CPS technology, every department from production, to finance, to HR is interlinked. Digital analysis of real-time data increases efficiency and digital communication improves all processes.

Better visibility across the supply chain enables managers to easily find ways of improving how things are done, and machinery autonomously predicts issues before they arise.

Companies use cloud computing to store their files and information remotely via the Internet. ERP software streamlines every department; storing data centrally.

To summarise, the purpose of Industry 4.0 is to create an ecosystem where physical production and digital technology are seamlessly connected to create a streamlined business. It can improve efficiency, transparency, productivity, profitability and reduce waste. Every aspect of business has the opportunity to work better!

LET’S TALK ABOUT IMPROVING YOUR BUSINESS

Here at Cloud Construct, we can help your business by implementing areas of Industry 4.0 to streamline efficiency. We can particularly help with the areas of augmented and virtual reality (AR/VR) as well as artificial intelligence and machine learning (AI/ML).

We will discuss these other Industry 4.0 areas in more detail and how your business could benefit from funding for these projects in Part Two of Understanding 4.0

In the meantime, if you would like to discuss any questions you may have about how 4.0 can help to develop your business, please call us on 01952 898 626.