Industry 4.0: the smart future of metalworking

Digitization and networks are rapidly gaining ground in the metal industry, and the same trend is also taking place in storage and production technologies. Isolated, manual processes are increasingly giving way to a continuously controlled intelligent material flow, in which all involved components communicate autonomously with each other. This topic is no longer just a dream of the future, because there are already numerous solutions that make metalworking more efficient, more flexible, and more profitable in today's Industry 4.0 era.

In the steel trade, the automotive and supplier industry, and mechanical and plant engineering, metalworking companies in all industries have faced increasing demands for years. Customers increasingly want more manufacturing flexibility, from single-item lot sizes to high-volume production, while the variety of materials and sizes is constantly increasing. At the same time, quality standards are rising and there is continual pressure to reduce costs. To fend off international competitors, companies need versatile and efficient solutions for a wide variety of production tasks.

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Production can be arranged

One solution here is the digitization and networking of production and logistics processes, also known as Industry 4.0. In modern metallurgy, machines, plants, goods, and charge carriers are connected via the Internet of Things and can communicate with each other. Smart sensor systems provide up-to-date status information in real-time, increasing productivity.

Una solución aquí es la digitalización y la creación de redes de procesos de producción y logística, también conocida como Industria 4.0. En la metalurgia moderna, las máquinas, plantas, bienes y portadores de carga están conectados a través del Internet de las Cosas y pueden comunicarse entre sí. Los sistemas de sensores inteligentes proporcionan información actualizada del estado en tiempo real increasing productivity. 

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All process-relevant data is recorded and analyzed, allowing users to optimize their entire value chain in a decentralized, autonomous, and demand-driven manner. The path from raw material to finished product becomes shorter, more flexible, resource-saving, and cost-effective. Today's metalworking companies increasingly rely on fully automated systems for long processes. These software-controlled, automated systems have completely convinced users with their significantly higher storage capacity, fast access times, and maximum stock transparency. In addition, technology, often the first processing station after goods have been removed from storage, is increasingly being carried out without the need for an employee to intervene. Machines can be seamlessly connected to the raw material warehouse and supplied with the necessary materials using manipulators and conveyor technology.

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Many times the production process also runs autonomously if the machine is equipped accordingly, resulting in highly efficient systems that are seamlessly integrated into a continuous flow of material: the smart factory.

Industry 4.0: automated connectivity

Consider the impact of Industry 4.0 and digital manufacturing on traditional manufacturing and business processes. The world of Industry 4.0 is one of the ultra-short lead times, on-demand production, mass customization, and an opportunity for manufacturers, regardless of size, to compete on a global stage.

Thus, the traditional value chain—factory to wholesaler, wholesaler to retailer, and retailer to consumer, with each stage buffered by large stockpiles of inventory—is cleverly bypassed by digital connectivity. Customers can order products directly, interacting with online product configuration tools and web-based ERP order-taking systems. And once the order has been received, manufacturing and fulfillment will come automatically.

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Some manufacturers will be tempted to dismiss this as hype or science fiction. But they do so at their peril: In business after business, Industry 4.0 is beginning to happen, as manufacturers combine digital manufacturing techniques with web connectivity to dramatically transform their supply chain.

These capabilities represent a very different paradigm from conventional business models and the traditional value chain. They require investment in integration, for example. Back office systems need updating and customer-facing web applications are developed. Analytics matters more. And companies typically find that their workforce skills profile must change: traditional manufacturing skills become less important, while digital manufacturing, robotics, and automation skillsets become more important.

Does industry 4.0 replace people?

To some, Industry 4.0 sounds a lot like the 'lights out' factory of the 1980s, where automation was supposed to replace people entirely. That never happened, of course. Not because the technology wasn't on a par, but because the underlying business model hadn't changed. It's not so with Industry 4.0, where the focus is not so much on technology, but on the business benefits that technology can deliver. Harnessing the business benefits of technological advances during Industry 4.0 is our advice. In its simplest form, digital manufacturing is a series of connections that link customers to business processes and production technologies. So start making those connections, seeing each new connection as another step in the digital manufacturing journey that ends with Industry 4.0.