INDUSTRY 4.0

What is Industry 4.0?

The term or concept of "Industry 4.0" describes the intelligent networking of industrial components (parts, products, machines and/or systems) and the associated processes using digital, Internet- or network-based technologies and procedures. Megatrends such as digitalisation and digital transformation (of industry and the economy), together with the technologies that have emerged such as human-machine interaction, cloud computing and automation, are also strongly associated with Industry 4.0.

For companies that embrace Industry 4.0, there is added value to be gained from the exchange of data and information within the value creation chain.

This exchange requires universal standards across manufacturers and industries. This is because seamless digital cooperation requires common rules of play to first be defined in the industries affected and a universal language to be used. Standards for networks and protocols, cybersecurity and data protection in particular shall apply, along with specific architectures such as the Reference Architectural Model for Industry 4.0 (RAMI 4.0).

If you have questions about shaping the digital economy of the future, also refer to "Plattform Industrie 4.0" for additional information and background.

How do companies benefit from digitalisation and Industry 4.0?

Smart networking as part of I4.0 offers various opportunities for companies. Here are some of the main advantages in brief:

Flexibility and customisation:

Generally speaking, the manufacture of a product requires the contribution of several companies, each of which generate added value along the supply chain. For these purposes, digitalisation and networking in the meaning of Industry 4.0 offer compelling advantages:

  • Better coordination of individual production steps. As a result, the utilisation of machines and systems can also be optimised (smart factories).
  • In the future, entire production lines will be made up of modular components that can be quickly and flexibly reassembled for changing tasks. In addition to improving productivity, this will also allow for greater customisation and smaller batch sizes without significant cost increases.
  • Greater opportunities for customisation give rise to a closer relationship between manufacturers and customers. For example, this would enable specific components in the industry to be customised and optimised for each individual application.

Optimised supply chains and feedback loops:

Intelligent networking makes it possible to optimise the flow of goods between all companies involved in a supply chain, for example by calculating ideal delivery routes and independently reordering depleted supplies through intelligent software.

In addition, smart products that are already in use can independently transmit data back to the manufacturers. This makes it possible for manufacturers to optimise their products and deliver innovative services for their customers.

Industry 4.0 technologies also give rise to a sustainable circular economy: By collecting and analysing the data about a product over the course of its entire lifecycle, it is possible to specify in the design phase which components or materials can be recycled and how.

Data as a catalyst for new applications:

Through intelligent networking, technical data about processes and system statuses (e.g. temperatures or fill levels) can be combined and evaluated together. This makes it possible to draw conclusions on how to optimise a system or improve product security.

Beyond pure optimisation, digitalisation and Industry 4.0 are also giving rise to entirely new business models and services. One example is predictive maintenance: By continuously transmitting data about their status to networked systems via sensors, certain Industry 4.0 components can automatically detect early stages of wear and tear and initiate preventive measures to avoid system failure.

Industry 4.0 in practice: Asset administration shells and digital twins

While we briefly introduced the possibilities and advantages of digitalisation as part of Industry 4.0 above, we should focus on how these ideas and concepts really look when put into practice.

The first and probably most important step in this process is the integration of (usually physical) objects (assets) in a digitalised IT production environment. In the context of an I4.0 solution, an asset is understood to mean everything that requires a "connection" to the relevant networked system.

This includes machines/systems and their components as well as assets such as consumables and input materials. Documents shared between networked partners, from plans, operating or commissioning instructions, purchase and order data through to entire contracts and user manuals, can also be understood as assets.

An asset administration shell (AAS) serves as a core component for connecting objects or assets to the digital world of Industry 4.0. An asset administration shell is also referred to as a physical asset's digital twin. Visit this page to see selected practical examples and view illustrations of the concept behind this.