30.8.2024
The fourth industrial revolution, known as Industry 4.0, is fundamentally changing the manufacturing landscape. In this blog post, we take a look at concrete implementation examples and decisive success factors - with a special focus on the role of artificial intelligence (AI), distributed ledger technology (DLT),the digital product passport (DPP), augmented reality (AR) and industrial metaverse (MV).
Industry 4.0 stands for the intelligent networking of machines and processes in industry with the help of information and communication technology. This digital transformation enables companies to increase productivity, optimize processes,and offer customized products at mass production prices. The integration of cyber-physical systems, the Internet of Things (IoT), and cloud-based solutions is creating a new era of industrial production characterized by flexibility, efficiency, and customer centricity.
The availability of scalable cloud technologies, high-performance data warehouse structures and effective machine learning in the mid-2010s enabled a leap in the application of data analytics and AI for Industry 4.0. At that time, I accompanied some successful projects from conception, especially in the context of data-driven innovation workshops, to the establishment of entire data analytics platforms and augmented reality use cases and learned how companies can use the technologies to increase their competitiveness. This enabled typical pay-per-use business cases. Later in my time as a Partner Manager at the IOTA Foundation, I had the opportunity to experience first-hand how DLT is driving Industry 4.0. The cooperation with committees such as DENA, Plattform I4.0, Gaia-X and DIN showed me the enormous potential of this technology for the networking and optimization of validatable industrial processes and allowed me to help shaping it.
In the manufacturing industry, Industry 4.0 enables the production of individualized products while maintaining high quality standards. Through the use of cyber-physical systems, different areas such as technology, logistics and services can communicate independently of each other. One example of this is the Siemens electronics factory in Amberg, which is considered a model for Industry 4.0. Here, intelligent machines autonomously control and monitor the majority of the production process, resulting in an error rate of less than 12 errors per million production units.
Smart contracts enable the design of entire manufacturing processes with machines from different manufacturers on a pay-per-use basis, which compensate for the lost profit in the event of a machine failing in the process chain via SLA in the smart contract.
In so-called smart factories, intelligent machines independently coordinate manufacturing processes, service robots cooperate with humans, and autonomous transport vehicles carry out logistics orders. A prime example of this is the BASF plant in Ludwigshafen. Here, sensor datais evaluated in real time to optimize production processes and detect potential malfunctions at an early stage. This leads to a significant increase in plant efficiency and a reduction in downtime.
The automotive industry is not only relying on smart factories, but is increasingly using data on customer behavior to develop customized products. Advanced technologies allow machines to take over more complex tasks that were previously performed by humans. BMW, for example, relies on networked systems and robotics at its plant in Spartanburg, USA. Autonomous transport robots deliver parts directly to the assembly line, while employees work with dataglasses that display relevant information to them in real time. This leads to an increase in efficiency and quality while reducing errors. Initial tests with Figure humanoid robots were recently successfully conductedat the factory.
During my time at ISRA VISION AG, the world market leader for surface inspection systems also for automotive manufacturers, I was able to experience first-hand the importance of quality control and process optimization in the manufacturing industry. With the development and establishment of the EPROMI production analytics software, we were able to use data-driven decisions to increase efficiency for a wide range of industries, from glass production to printing and automotive manufacturing.
AI plays a key role in Industry 4.0. It enables predictive maintenance, optimizes production processes, and improves quality control. AI-driven systems can recognize patterns in large amounts of data and gain valuable insights for process optimization.
A concrete example is the use of AI at Bosch for predictive maintenance. By analyzing sensor data, the system can predict wear and potential failures of machines before they actually occur. This enables proactive maintenance, reduces downtime and saves costs.
In addition, companies like General Electric are using AI algorithms to optimize their wind turbines. By analyzing weather data and historical performance data, AI can adjust the orientation of the turbines in real time to maximize energy yield. Due to the structure of the energy exchange, in which electricity producers trade the electricity the day before and have to pay high penalties for deviations, an exact forecast is essential.
DLT, with the immutable and validatable evidence in Industry 4.0, offers new possibilities for secure and transparent transactions. It can be used for the traceability of products in the supply chain and enables smart contracts for automated business processes.
During my time at the IOTA Foundation, I was able to accompany the development and application of DLT in various industry projects. A particularly exciting project was the POC of a secure over-the-air update of critical infrastructures, which we were able to successfully demonstrate.
DLT is also used in the automotive industry. BMW uses blockchain technology to track the origin and quality of cobalt in its electric vehicle batteries. This increases transparency in the supply chain and helps ensure ethical and sustainable sourcing practices. The EU plans to introduce such a mandatory origin control for battery raw materials in 2025.
The digital product passport is an innovative concept that promotes transparency and sustainability in production. It contains all relevant information about a product, from the materials used to the CO2 footprint. This enables better resource efficiency and supports the circular economy.
A pioneer in this area is the Circular Economy Initiative Germany, which is working onthe development and implementation of digital product passports. The aim is to make the entire life cycle of a product transparent, from raw material extraction to production and use to recycling.
The car manufacturer Audi is already experimenting with digital product passports for its vehicles. These contain detailed information about the installed components, their origin and environmental impact. This not only facilitates maintenance and repair, but also recycling at the end of the vehicle's life.
The integration of augmented reality (AR) and the concept of the Industrial Metaverse are playing an increasingly important role in the further development of Industry 4.0. These technologies promise to fundamentally change the way we design, monitor and optimize industrial processes.
In recent years, augmented reality has evolved from a niche technology to an indispensable tool in modern industry. In the context of Industry 4.0, AR offers numerous advantages:
The concept of the Industrial Metaverse goes a step further than AR and promises to createa fully immersive digital environment for industrial applications. Pioneers in this field are Siemens and NVIDIA. In the Industrial Metaverse, companies can:
The combination of AR and the Industrial Metaverse creates a seamless connection between the physical and digital worlds. Employees can interact with theIndustrial Metaverse through AR glasses while operating in the real world at the same time. This enables:
Despite the enormous potential, companies face challenges when implementing Industry 4.0 supporting technologies:
Data security and data protection are critical issues, as increasing network usage also creates new attack surfaces for cyber criminals. Companies should therefore not ignore robust security systems and the training of their employees.
As an IT security specialist, I experienced first-hand the importance of cybersecurity in networked systems at the beginning of my professional life. Implementing secure content and document management solutions in the defense & aerospace industry showed me the importance of a holistic approach to security. This is especially true for Industry 4.0.
Another challenge is the integration of new technologies into legacy systems. Many companies have an established IT infrastructure that is not easily compatible with the requirements of Industry 4.0. This requires step-by-step modernisation and the development of interfaces between old and new systems.
The shortage of skilled workers also poses problems for many companies. The implementation of Industry 4.0 technologies requires specialized know-how, which is often not available to a sufficient extent. Companies must therefore invest more in the training and development of their employees and enter into partnerships with educational institutions and specialists.
Nevertheless, forecasts show that the market for industrial AR applications and the Industrial Metaverse, for example, will grow strongly in the coming years. Companies that invest in these technologies early on can secure a significant competitive advantage. The integration of augmented reality and the Industrial Metaverse into Industry 4.0 concepts promises to take productivity, efficiency and innovation in industrial manufacturing to a new level. It is up to companies to seize these opportunities and actively shape the digital transformation.
The implementation of Industry 4.0 offers companies enormous opportunities to increase their competitiveness and offer innovative products and services. By integrating AI, DLT, AR, MV and DPPs, companies can further optimize their processes, increase transparency towards their suppliers and customers, and establish more sustainable production methods.
Success depends largely on the ability to effectively use modern technologies and integrate them into existing systems. Companies that meet this challenge are able to respond more flexibly to market demands, use resources more efficiently, and ultimately strengthen their position in global competition.
The examples from various industries show that Industry 4.0 is no longer a distant vision of the future, but is already becoming a reality today. At the same time, it is clear that digital transformation is a continuous process that requires constant adaptation and innovation. Companies that are now setting the course for Industry 4.0 with modern key technologies are creating the basis for long-term success in an increasingly digitalized and networked economy.
