Importance of Industry 4.0 in companies

In recent years, a new industrial paradigm called Industry 4.0 began to germinate among emerging technologies, which was responsible for bridging the gap between humans and machines, as had only been imagined in science fiction books.

This technology was quickly gaining ground in different parts of the world, as the promise of a tool capable of maximizing the productivity of co<mpanies, contributing to the growth of science, enriching the economy of nations, in short, improving the quality of life of people.

Industry 4.0 comprises a terminology that describes the passage to a fourth stage of the technical-economic evolution of humanity, starting with the First Industrial Revolution. Although the irruption of this fourth stage is recent, it is expected to develop with more impetus towards the end of the 20s or the beginning of the 30s of the present 21st century.

Artificial intelligence is positioned as a central element of this transformation, closely linked to the progressive accumulation of a large amount of data (big data), the use of algorithms in processes, and the massive interconnection of digital systems and devices.

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Historical background and origins of the Industry 4.0 concept

The origins of this concept date back to the stages in which the Industrial Revolution developed, from the first with the invention of the steam engine, the second, with the advance of mechanization, in the mid-eighteenth century, and the third stage, from the end of the 19th century, with electricity, until the entire 20th, with automation; and finally, we get to talk about this fourth stage that aims to be a true "machine revolution", where robotics, biotechnology, and digital information join forces.

But it was at the Hannover Fair (2011) where the concept of Industry 4.0 was coined for the first time, and explained in more detail by a select team of researchers in 2013, at the behest of that year's fair.

How can industry 4.0 change and improve the future of companies and the lives of workers?

Industry 4.0 constitutes complete digitization of the value chain through the integration of data processing technologies, intelligent software, and sensors, from suppliers to customers to anticipate, control, plan, and produce intelligently, which generates greater value for the entire chain.

Its main objective is to “computerize the world of the factory”, that is, the technical integration of cyber-physical systems (SCF) in production and logistics activities, as well as the use of the Internet in industrial processes.

Within the framework of this digital transformation of the new era called Industry 4.0, these are some of the most outstanding advantages, which will facilitate work in companies, also simplifying people's lives.

1. Flexibility and customization of production.

Companies and factories that begin to implement industry 4.0 technologies, thanks to automation, digitization of information, and the use of virtual networks, will be able to modernize traditional manufacturing plants and turn them into smart factories, capable of creating intercommunication continuous and immediate between the different work areas.

These advantages in the control and automation of tasks, plus global communication allow us to achieve large-scale production, with products that meet the particular needs of each customer without risk of shortages.

2. Innovations in the logistics area.

In the logistics area, Industry 4.0 can generate a regular flow of information superior to conventional schemes, where this use of information is not only of higher quality, but also keeps all the employees in the area informed, and with the outside.

3. Saving energy and raw materials.

Another important change that industry 4.0 promotes for companies is the saving of energy and raw materials. In this sense, to the current problems related to energy saving, as well as the management of human and natural resources, Industry 4.0 also offers significant solutions.

One of them is the implementation of a network of communications and instantaneous and permanent exchange of information to achieve more efficient management, which guarantees to optimize the tasks using fewer resources and energy. The more energy and resources are saved, the greater the profits obtained.

4. Simulation tools.

Industry 4.0 allows the incorporation of virtual simulators or replicas of part or all of the data generated in the production chain, which will favor learning and adaptation to the different new technologies to minimize the chances of errors that would produce higher costs.

In this way, not only is the service optimized, but it notably increases the productivity of the operators, enhances their innate abilities, and safeguards their physical integrity, reducing their time and level of exposure to the most complex manual tasks.

5. Technological bases.

These are the key technologies on which Industry 4.0 is based:

• Mobile communications: Mobile technologies enable a connected production environment where systems and products communicate with each other. This enables the capture of data, the coordination of the CPPS, and the deployment of remote, real-time, and omnipresent services.
• The cloud (Cloud Computing): the cloud includes platforms offered as services through public or private networks. Intelligent systems generate a huge amount of data to store and process that must be accessible from any computer or device with a wireless internet connection. This software eliminates dependency on local software that is limited in capacity and less secure.
• Data analysis (Big Data): Its analysis will allow us to identify patterns and interdependencies, analyze processes and warn of inefficiencies or anticipate future events. These advantages will open the way to new opportunities, especially about improvements in customer service, who will be better known and, therefore, it will be easier to satisfy them.
• Machine-to-machine communication (M2M): M2M communication is the basic technology of the "Internet of Things" (IoT): they are those technologies that allow the exchange of information between the intelligent products and systems that make up industry 4.0.
• Social platforms: if social networks have transformed our daily lives by putting us in contact with people from all over the world, imagine what they will do in your company. In the first place, it will enable a more dynamic interaction of content, which will favor innovation and collaboration between teams.
• 3D printing: refers to the production of three-dimensional objects from virtual models.
• Collaborative robotics: improvements in artificial intelligence have made it possible to create increasingly autonomous, dynamic, and cooperative robots. This suggests that in the not-too-distant future they will be our faithful allies to help us with the most repetitive and least inspiring tasks.
• Augmented reality: Although currently in its infancy, augmented reality in the future will allow workers to obtain information in real-time to improve decision-making and work procedures. (Kind of like the virtual training programs that implant Neo into his brain, via the connection that feeds into a processor, in the Matrix trilogy.)

Finally, we have understood up to this point that industry 4.0 is transforming the way companies work, promoting greater productivity, better profitability, and higher positioning in an increasingly competitive and demanding global market. Just as many mechanical tasks will be simplified, a higher level of skilled personnel will be required to operate these technologies as effectively as possible.

An ITIF study quantifies the increase in about 150,000 jobs in the industrial sector, only in the United States. This means that, far from new technologies replacing human work, more jobs will be created, meeting the growing demand for qualified professionals to execute processes, arising from industry 4.0.

Of course, all innovation has its risks, because initially, the impact of industry 4.0 on industrial processes is unknown, but that will be a topic to be developed in another article. Suffice it to say that it represents the challenge of every entrepreneur to be encouraged by the innovation of the Fourth Industrial Age.

Sources: 

• Del Val Román, José Luis. Industria 4.0: la transformación digital de la industria. codiinforme.
• Klaus Schwab (2016) The Fourth Industrial Revolution. World Economic Forum. Ginebra, Suiza.