Introduction Industry 4.0

Modern innovative technology was used to automate traditional manufacturing and industrial practices during the Fourth Industrial Revolution. Communication and self-monitoring involving large-scale machine-to-machine applications and the Internet of Things are combined to improve automation, communication, and self-monitoring and create intelligent machines that can diagnose issues without human intervention. As industry 4.0 and the internet of things begin to mature, large enterprises are reaping the benefits. On the other hand, small and medium-sized enterprises are at the beginning of their Industry 4.0 journeys. However, Roland Thomas has discovered that things are starting to change. Despite Industry 4.0 and IoT becoming universal terms in manufacturing, research by the LNS Group indicates that only 43% of manufacturing professionals are knowledgeable about these technologies – even though studies have shown that manufacturers utilizing these technologies gain a significant competitive advantage. We will learn more about what is Industry 4.0? What is the OEE platform? Challenges and benefits of Industry 4.0.

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A period between 1760 and 1820 and 1840 was known as the Industrial Revolution, a period of transition to new manufacturing processes in Europe and the United States. The transition to machines included going from hand production to devices, developing chemical manufacturing and iron production processes, developing steam and waterpower, and developing machine tools, among other factors. In addition to the First Industrial Revolution, the Second Industrial Revolution, also known as the Technological Revolution, was a period of rapid standardization and industrialization between the late 19th and early 20th centuries; there was a slowdown in inventions before the Second Industrial Revolution began in 1870. During the latter half of the 20th century, digital computers and digital record-keeping increased, and technologies began. The Digital Revolution continues today with the adoption and proliferation of digital computers. “Industry 4.0”, shortened to I4.0 or simply I4, originated in 2011 from a project in the German government’s high-tech strategy that calls for the automation of manufacturing. The term “Industry 4.0” was made public at the same time at the Hannover Fair.

What is OEE?

The overall equipment effectiveness (OEE) is often seen as the gold standard for measuring manufacturing productivity. A key metric in Total Productive Maintenance (TPM), OEE, indicates the degree to which a manufacturing plant is genuinely productive. Despite its usefulness, however, OEE does not measure production efficiency alone. To achieve the desired level of productivity, the organization must gain buy-in throughout and have a consistent review and action plan in place.

Components of Industry 4.0

  • Computer system supplies
  • Internet of things (IoT)
  • Intellectual processing
  • Cyber-physical system

Challenges in Industry 4.0

Due to technological changes, the income distribution has been distorted, and the gap between skilled and unskilled workers has widened. The technological crisis can result in increased capital demands and widespread job losses due to automation, which causes the income inequality gap to widen. Advancing technology increases skilled workers and replaces those who are low skilled, deepening income inequality. Adaptation to automation is probably the most important factor relating to the risk of exposing citizens to automation. Countries need to adopt the mechanisms to help citizens adapt to this new reality quickly and easily. In addition, several factors can expose workers to automation, among them a low level of work experience, which most commonly affects young people, who usually work in routine positions that are easily automated.

Additionally, a change in security rules may also affect national and international security. Conflicts and wars will mainly become “hybrid” in the new era, with nuclear and chemical weapons being a threat. Several studies have demonstrated that economic growth and technological development contribute significantly to climate change. As a result of the Fourth Industrial Revolution, the problem may become more severe.

Advantages of Industry 4.0

  • Cost reduction
  • New and innovative opportunities
  • Collaborative working
  • Data sharing will be easy
  • Improvement in productivity
  • Accuracy and optimization of waste
  • Best profitability
  • Better customer knowledge

Advantages for SME’s

Kersten et al. contend that raising awareness and implementing Industry 4.0 should educate SMEs, contributing 63% of value creation. SMEs can now take advantage of cloud-based solutions as part of Industry 4.0 rather than being locked out of it because of cost and complexity. The ease of implementation and flexible billing methodologies will give smaller enterprises the confidence they need to walk the path of Industry 4.0. To transform your factory, here are three critical solutions that SME manufacturers should incorporate to get started on their Industry 4.0 journey.


In a nutshell, Industry 4.0 is the new industrial revolution of the 21st century, which helps companies create “smarter” products and services by reducing costs and increasing productivity. The human factor plays a vital role in the application. Due to the automated procedures, the Smart Factory makes a solution that is easy to set up and install using only need-based instructions and, ultimately, has a high level of scalability. It is capable of helping manufacturers improve their processes and significantly boost their internal efficiency.

By 2020, five million jobs could disappear in industrialized nations due to digitalization. It would also end demand for old-fashioned technologies through a lack of quality, while production would be forced to shut down because of cost and efficiency issues. Finally, the more innovative way of production and manufacturing will make the revolution for upcoming generations.

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