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Industry 4.0 explained by Walker

Aug 09, 20243 min read

Industry 4.0 is a movement in time.

“Fourth Industrial Revolution”, “4IR”, or “Industry 4.0” is a buzzword and neologism describing rapid technological advancement in the 21st century. […] It also represents a social, political, and economic shift from the digital age of the late 1990s and early 2000s to an era of embedded connectivity distinguished by the ubiquity of technology in society [..] Wikipedia

Industry 4.0 explained by Walker

Often discussed by Walker Reynolds and in industry sources as the future of manufacturing. Many companies claim to be implementing Industry 4.0, but few are truly leveraging its full potential.

Walker Reynolds

“If you as an organization are not leveraging IoT and industry 4.0 between now and five years from now, what’s going to happen is as you evolve to the next step of capturing efficiencies in your business, you will not have the infrastructure in place to do it.”

Key Characteristics

Defined by: Unified Namespace and IIoT

Integration Approach

Instead of point-to-point connections, Industry 4.0 uses a Unified Namespace (UNS) where:

  • All software es to and consumes from the namespace
  • ERP, MES, SCADA, PLC, HMI all connect to the central namespace
  • Eliminates the need for middleware between systems

Note

This approach allows for easier system upgrades and replacements without disrupting the entire infrastructure.

Data-Driven Decision Making

  • Focuses on making data the primary commodity of the business
  • Enables predictive maintenance and real-time optimization
  • Allows for capturing efficiencies beyond traditional OEE improvements

Advantages

  • Scalability: Easily scales to accommodate new technologies and systems
  • Flexibility: Allows for quick adaptation to market changes
  • Efficiency: Enables capturing efficiencies at the edge (PLC level)
  • Predictive Capabilities: Utilizes machine learning for predicting failures and optimizing maintenance

Example

Companies like Tesla, Amazon, and Boeing are examples of organizations successfully implementing Industry 4.0 principles.

Contrast with Industry 3.0

Industry 4.0 practices differ from Industry 3.0 in several key ways:

  • Unified vs Siloed: Uses a unified namespace instead of separate, disconnected systems
  • Predictive vs Reactive: Focuses on predicting and preventing issues rather than reacting to them
  • Edge Computing: Captures efficiencies at the PLC level, not just at higher software levels
  • Data-Centric: Treats data as a primary asset, not just a byproduct of operations

Warning

Companies still operating in the Industry 3.0 paradigm risk falling behind competitors who have embraced Industry 4.0 technologies and strategies.

Implementation Challenges

  • Resistance from IT departments due to security concerns
  • Lack of understanding of Industry 4.0 principles among executives and staff
  • Need for new skills and roles, such as IIoT infrastructure management and operations analysts

Tip

To overcome these challenges, organizations should educate their staff, reassess their IT policies, and be willing to restructure their operations around data and connectivity.

But what about Industry 5.0? Some say that is now the era of AI.

Industry 5.0 is here, the merging of man and machine. Human intelligence and artificial intelligence. It started back in November of 2022 with the release of ChatGPT 3.5 to the world. Just like industry 4.0… many companies were still working on 3.0… in industry 5.0 there are most companies still working on 4.0. (If you are still working on 3.0 automation today, you’re dead)

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