This infographic goes into detail about supply chain industry 4.0 and the Smart Factory. There have been four industrial revolutions, the first industrial revolution was mechanization, water power and steam power. The second was mass production, assembly line and electricity. The third computer and automation and finally the fourth cyber physical systems. Industry 4.0 is based on 6 design principles. The first design principle is Interoperability, cyber-physical systems, humans and smart factories connect & communicate with each other through IoT. Virtualization is a virtual copy of the Smart Factory created by linking sensor data with virtual plant models and simulation models. Decentralization means the cyber-physical systems within Smart Factories can make decisions on their own. Real-Time capability provides immediate insights with the capability to collect and analyze data. Service Orientation offers services by way of the internet of services. Modularity is the flexible adaption of Smart Factories for the changing requirements of individual modules. There are many things driving industry 4.0. 3D printing, augmented reality, real-time data, automation, robotics, cloud, artificial intelligence, and connected devices are a few of the biggest industry drivers.
33.3% of the more than 2,000 respondents say their companies have started to digitize their supply chains and 72% expect to have done so five years from now. Companies with highly digitized supply chains and operations can expect efficiency gains to 4.1 percent annually, while boosting revenue by 2.9 percent a year.
There are many reasons to invest in a Smart Factory. Reduced asset downtime, optimized production capacity, decreased changeover time, lower defect rates and recalls, more cost efficient processes, better quality products, improvement in workforce safety, and smaller environment footprint. Some of the smart factory adoption trends include, advancement of technological capabilities, increase of supply chian complexity, global fragmentation of demand and production, increased pressure, continual labor production, and realignments in organizations due to the merger of IoT and IoS.
For more information about Industry 4.0 read our blog post: Industry 4.0, the Smart Factory & the Digital Supply Chain