Implementation of Industry 4.

0 Smart
Manufacturing
Abstract
The industry 4.0 will bring profound changes to our society, including an important
digital shift in the manufacturing sector. At present, several manufacturing firms are
trying to adopt the practices of industry 4.0 throughout their supply chain. This paper
aims to examine how manufacturing firms or companies can employ Industry 4.0 smart
manufacturing to ensure faster production with more precision and lesser human
manipulation. The paper also examines several technologies and enabling factors which
make the manufacturing system “smart.” These technologies are Additive
manufacturing, Information technology-based production management, Cloud
manufacturing, etc., and enabling factors are regulations and laws and training and
innovative education. Additionally, the paper examined step by step approach to
implement Industry 4.0 smart manufacturing. The main steps include identifying
business objectives; developing prototype, validation of prototype, replication of
prototype and total roll-out. There can be several challenges during the implementation
such as the requirement of new skills, effective data security and investment needs. The
challenges can be addressed by continuous training of workers; making significant
investments of turnover in the acquisition of new digital technologies and improving
efficiency by connecting sensor data and operations across several lines and machines.

1 Introduction
Smart manufacturing is a recent concept in the arena of manufacturing. As per this concept,
manufacturing systems are completely integrated and collaborated in a way as to respond in real time
to fulfil changing conditions and demands in the supply network, in the factory, and in customer
requirements. Several manufacturing firms are trying to adopt the practices of industry 4.0 during
their entire supply chain. Smart manufacturing is about enhancing our manufacturing processes to do
more with less, fast and better! And the industrial analytics and Industrial Internet of Things will play
main part in facilitating it. According to Lee et al. (2014), this improvement in productivity and
efficiency allows the customization of items designed with a view to mass production.
Thus, all manufacturing companies, whether already modernized or in the process of
modernization, are potential customers for companies wishing to improve manufacturing production
processes. These belong to nine sub-sectors that are interrelated. Indeed, according to Brettel et al.,
the success of Industry 4.0 rests on the coordination of these different sub-sectors such as robotics and

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automation; advanced simulation software; horizontal and vertical integration systems; cyber security;
the Internet of Things; cloud (cloud); 3D printing (additive manufacturing); big data analysis and
augmented reality (Brettel et al., 2014). Therefore, both a robotics company and a cyber-security
solution company can participate in the modernization of a manufacturing company in the context of
Industry 4.0. Similarly, since these nine sub-sectors are complementary, companies wishing to
modernize must invest in each of them.
This paper aims to examine how manufacturing firms or companies can employ Industry 4.0 smart
manufacturing to ensure faster production with more precision and lesser human manipulation. The
paper will also justify the implementation of smart manufacturing by means of examples from
manufacturing industry leaders such as Siemens AG, General Electric, Renault, Secomea, etc.
Keeping in view how the Internet is revolutionizing the world of business, these companies have also
adopted Industry 4.0 smart manufacturing measures in all of their business operations and are
currently the major providers of Industry 4.0 solutions in the manufacturing sector.

2 Industry 4.0 Smart Manufacturing

Conventionally, manufacturing was restricted to a sequence of procedures or a process through
which raw resources are transformed into end products (Mittal et al., 2017). Though, manufacturing
nowadays contemplates the data-driven business operations at various levels resulting in the
development of several manufacturing paradigms, of which emerged Industry 4.0 Smart
Manufacturing. Future smart manufacturing systems will have exclusive characteristics of self-
assembly to create customized and complex products to exploit the existing and new markets. Smart
Manufacturing employs info to constantly uphold and enhance performance (Lee et al., 2014).
Industry 4.0 is fundamentally characterized by smart automation and the incorporation of novel
technologies into the enterprise value chain. It is a digital transformation that is shaking up the
manufacturing business by carrying fundamental variations not only to processes and systems, but
also to styles of management, workforce and the business models (Shrouf et al., 2014).
The concept of industry 4.0 has its roots in a German reflection completed in 2011. This reflection
launched by the German regime, and then led by the academia of the country and by key industrial
partners such as Siemens AG. The aim was to describe the parameters that could place the German
manufacturing industry as the most productive in context of flexibility and productivity.

3 Technologies and Enabling Factors

Smart manufacturing does not operate in vacuum, and there are several technologies and factors
which make and enable the manufacturing to be “smart.” In their seminal research, Mittal et al. (2017)
developed a comprehensive list of 38 technologies and 7 enabling factors in industry 4.0 Smart
manufacturing.

3.1 Technologies in Industry 4.0 Manufacturing

There are several technologies which can be implemented during manufacturing operations such
as product design, process & plant design, engineering, operation and service. For example, Siemens
offers open cloud platform for industry customers based on SAP HANA technology. Some of the
important technologies in industry 4.0 Smart manufacturing are mentioned in the following section
(Mittal et al., 2017).

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 Additive manufacturing: This is the technology that can print a 3-D picture into an article with
the assistance of electron beam, laser beam, and so on; and as the articles are produced surface by
surface. Additive manufacturing is frequently mentioned as being part of the state-of-the-art
manufacturing realm.
Information technology-based production management: This includes technologies like
Enterprise resource planning (ERP) and Supply chain management (SCM). ERP is the system that can
coordinate and integrate various business parts, like human resources, inventory and marketing. SCM
is the management of finance, material and information from one party to other.
Cloud manufacturing: This is the technology that uses actual demand to choose the planning of
production and preparation. Big data can be regarded as a part of cloud manufacturing, but as the uses
of Big data are so extensive, it cannot be considered as a part of cloud manufacturing.
Advanced manufacturing: This is the technology that can incorporate technology-centred
systems of production like computer integrated manufacturing (CAM), reconfigurable manufacturing
system (RMS), flexible manufacturing system (FMS) and additive manufacturing.
Big data/Data analytics: This is the technology that can examine huge sets of data counting
actual information that are hard to investigate by customary approaches. Big data usually handles
transforming the variety, volume, accuracy and velocity of data into insights and actions within a
manufacturing system.

3.2 Enabling factors in Industry 4.0 Smart manufacturing

Like integration of technologies, smart manufacturing becomes possible by several enabling
factors. For example, Siemens enables smart manufacturing via sensors, computing power, storage
capacities, data analytics and networking ability. Some of the important enabling factors in industry
4.0 Smart manufacturing are mentioned in the following section (Mittal et al., 2017).
Regulations and Laws: There are several regulations and laws like labour law, intellectual
property rights and environmental laws that a manufacturing organisation should follow relying on
the nature of its work. These regulations should be strictly followed for consistent operations of a
manufacturing organisation.
Training and innovative education: Education must assist a person to not only do their individual
work but also dwell on how the service or product they are working for can be enhanced for the
advantage of the end-users. This mind-set and innovation knowledge can simply be infused in the
workforces with the assistance of entrepreneurial values and appropriate training. Consequently,
knowledge workforces should be a part of state-of-the-art training and education.
Standards and Data sharing systems: “International Organisation for Standardization” (ISO) has
described “STEP AP 242” and other “STEP” components as internationally standardised data models
that can be employed to interchange information and patterns on general computer formats by several
organizations. Likewise, simulation data can be shared by “core manufacturing simulation data”.
Moreover, data sharing can be facilitated by enterprise integration between original equipment
manufacturers and small and medium enterprises.

4 Action Areas for Implementing Industry 4.0

Crnjac et al. (2017) presented eight action areas which should be considered during the
implementation of smart manufacturing.
Process and Resources: Improvement of process through effective usage of materials, upsurge
the creation of value. An instance of enhancing the production of cement can be via computer system
used for stabilizing, controlling, and optimizing the process of production.

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 Effective usage of property: This involves the enhanced usage of production machines. All
machines must be maintenance protective because it is the only method to avert unintended stoppage
of machineries. For instance, General Electric proposes software solutions for protective maintenance
in which data is collected about the machine status by means of a range of sensors and allowing well-
timed improvement with minimum expenditures.
Operations: In this action area, it is essential to upsurge the operations speed by generating a
working atmosphere constructive to workforces. With the intention to decrease stoppages and waiting
times, it is essential to decrease the tasks complexity, divide them into several jobs, and create a
prototype so workers will turn out to be more acquainted with jobs. Robots can assist labours in
manufacturing; they should do hard jobs. For instance, universal robots are nowadays on the market.
They collaborate with workforces in manufacturing.
Inventories: It is essential to decrease the extreme production and procurement of materials for
anonymous purchasers. For instance, Wurth Corporation proposes storage solutions. It is case that
comprises camera to indicate the condition of the materials in the case.
Quality: The uneven procedures in manufacturing generate low-quality goods and result in bigger
expenses. With the assistance of innovative process controller, it is probable to respond timely and
correct the procedure, to decrease poor goods.
Demand and Supply: The comprehensive knowledge of client requirements can result in
consumer satisfaction and top quality. Innovative examination can bring about the estimated demand
by 80 per cent on a weekly-basis. For instance, the corporation Renault proposes configurator for all
types of cars.
Marketing Time: It is essential to reach the desired market with a novel product, quicker than
others, generates a benefit, upsurges incomes and permits quicker reaction to the possible issues.
Maintenance and Service: Proposing clients different solutions of "distant" maintenance is a
great benefit. The firm Secomea proposes software solutions which can be a stable and robust
connection with manufacturing machineries and state of machineries can be measured without
remaining actually subsequent to them.

5 Step by step method to implement smart manufacturing

Industry 4.0
The implementation of smart manufacturing Industry 4.0 should be in accordance with the phased
approach. These steps should be coupled with the innovative manufacturing practices and the usage,
connection and integration of new technologies to produce value-added exportable products that
enable the manufacturing firm to grow dynamically in its market. These steps include identifying
business objectives; developing prototype, validation of prototype, replication of prototype and total
roll-out (See figure) (Frost and Sullivan, 2017).
Step 1: Identifying Business Objectives
Prior to applying smart manufacturing Industry 4.0 in an organization, it is essential to determine
needs and challenges. Most of Industry 4.0 initiatives begin because of operational managers aiming
to improve or resolve their everyday problems at the workplace. Feedbacks from managers and
workforces help to determine the needs and challenges. Consequently, the first stage of the method
includes recognizing and comprehending the operational problems line managers continually face in
plant.
Some potential challenges confronting line managers and workforces comprise the absence of
efficiency and quality in operations, higher costs (which may comprise cost of operations, power poor
quality), fewer resources or their ineffective usage and failure to deliver solutions/products to
customers (Wang et al., 2016).

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 Step 2: Developing Prototype
The next step includes developing a plan to execute a trial Prototype with a small budget. The
Prototype should include devices and sensors in order to bring innovation in four areas: Product
innovation, Process innovation, Organizational innovation and Market innovation (Kang et al., 2016).
The product innovation includes developing new products to significantly improve products or a
new service, to maintain or increase market share, to expand product line, to increase competitiveness,
and to give business a competitive advantage.
The process innovation includes adopting new manufacturing processes or new distribution
methods, improving processes or methods already in place and purchasing new production equipment
to reduce production time, decrease costs and give business a competitive advantage.
The organizational innovation includes rethinking about the organization of the workplace or its
ways, changes the supply chain, restructure its activities, review knowledge management and enter
into new alliances or partnerships to encourage a culture of innovation, better use of the skills of staff,
improve the productivity of business and increase competitiveness.
The marketing innovation includes adopting or significantly changing the marketing practices of
products, use new media or advertising techniques to market products, change product placement
methods, promote the products more effectively, bring the products to new markets, extend life cycle
of the products and respond more quickly and more adequately to the needs of the customers.
Step 3: Validation of prototype
The innovative prototype should be measured and authenticated for management's support. Data
gathered by sensors from the pilot devices, can recognize factors or areas of inefficiency that might
bring about greater flaws. Organizations can employ this info for improvements of process to
decrease waste. These improvements of process can then be applied at the factory for an additional
round of collection of data. Before and after contrast, value should be quantified, and focus must be
put on advantages by means of the starting point described in the first step. Afterwards, teams can
carry out a comprehensive assessment of the new situation and status in comparison to the starting
point. Denoting the major issues recognized by manufacturing processes, some recommended metrics
comprise cost of power, cost of manpower, production volume manpower required, productivity, etc.
(Frost and Sullivan, 2017)
Step 4: Replication of Prototype
After confirming the information, the innovative smart manufacturing prototype can be
deliberated a success when objectives of the project are fulfilled. Now that smart manufacturing
prototype for the pilot set of devices and sensors, the subsequent stage includes spreading the
arrangement to extra lines and machines (Frost and Sullivan, 2017).
Dealing with complexity: The vendor or developer of the practical system should be capable to
develop an all-inclusive Industry 4.0 application, intended to fulfil prolonged metrics and objectives,
and deployed in a step by step method so that processes are not disturbed.
Data: Growing the numbers of points of data, machines and associated sensors means that the data
volume will upsurge intensely. One method is to employ cloud to surge storage and computing
capability to match the novel increased needs.
Security: The upsurge in data in centrally-situated servers calls for greater security measures to
protect and safeguard information, a vital resource for any firm. Security of data will have to
guarantee that all the data is effortlessly accessible to authorized personnel, while being insulated
from attackers.

Step 5: Total rollout

This last stage intends to attain additional visibility and efficiency by expanding Industry 4.0
linked systems outside the factory into the larger eco-system. By spreading data and communications
accessibility to associated partners in supply chain, Industry 4.0 systems can link information silos in

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a unified SC. This allows an incorporated flow of work that is more effective whereas also agile to
requirements of business (Frost and Sullivan, 2017).
Spreading Industry 4.0 to associated manufacturing units: The eventual objective would be to link
several manufacturing units to attain thorough advantages from smart manufacturing systems.
Industry 4.0 offers capability to see the bigger picture. As more machines are linked to the system,
more information will be composed from manufacturing. This offers supervision with a combined
assessment of all processes and a whole picture of manufacturing to support enhanced making of
decisions. These could bring about optimized manual procedures to predict fault or to enhance
competence and avert down time.
Improvement of Process by learning from one team: When all systems are integrated onto a single
combined platform, procedures applied by teams that display effective metrics and best level of
practice can additionally be analyzed, implemented and shared into other manufacturing firms
internationally. Likewise, steps to solve problems and to address issues can be taken, implemented
and shared.

Total rollout
Spreading to Identifying
associated Business
manufacturing Objectives
units
Sharing of
Information

Developing
Prototype
Replication of Product
Prototype innovation,
Dealing with Process
complexity innovation,
Data Organisational
Security innovation
Market
innovation

Validation of
prototype

Figure 1: Step by step method to implement smart manufacturing Industry 4.0

6 Challenges During the Implementation of smart

manufacturing Industry 4.0
There are several challenges that manufacturing industries might face during the implementation
smart manufacturing Industry 4.0. The main ones are: the new skills required; data security; and
investment needs.
Challenge 1: New skills required
Rapid technological change, robotics, big data, artificial intelligence and connected objects offer
new possibilities for manufacturers. But they also bring their challenges to the manufacturing
industry. For example, in Quebec, manufacturing industry is at risk which represents nearly 800,000
direct and indirect jobs (Stock and Seliger, 2016). In order to successfully transition to Industry 4.0,
the manufacturing company must examine the new skills that are required and the need for qualified
personnel.

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 The most sought-after industry skills in 4.0 are Data management (data management); Data
security (data security); Human-machine interaction (human-machine interaction); The user interface
design (user interface design); Software development (software development); The programming
(programming); Science data (data science); and the analytical (analytics) (Lee et al., 2014).
The major challenge facing the company is to train employees and recruit new resources. It's about
finding the most appropriate approach for the company to successfully reconfigure the value chain
and maintain or build on its competitive advantages.
Studies conducted in Germany and the United States have shown that for the vast majority of
industrial employees, the skills required for Industry 4.0 are not present. Quebec is facing the same
thing (Lee et al., 2014; Kang et al., 2016).
Challenge 2: Data security
Data security is a concern for all companies that have decided to switch to Industry 4.0. The
multiplication of data and systems in the company highlights the importance of the computer security
aspect. When technologies were connected to the internal network and centralized in the same
building, securing everything was easier. The arrival of a multitude of connected objects, often
relocated and accessible via the Internet, now imposes the management of cyber security (Schmidt et
al., 2015).
It is therefore essential to integrate cyber security elements into the implementation of the
company's IT infrastructure.
Challenge 3: Investment needs
Novel technologies are constantly related to investments. Industry 4.0 especially signifies a basic
change for companies that require considerable funding. Unfortunately, most companies lack such
vast amount of funds and fail to implement in Industry 4.0 (Anderl, 2014).

7 Recommendations for the effective implementation of smart

manufacturing Industry 4.0
The following recommendations can be useful for the effective implementation of smart
manufacturing Industry 4.0

7.1 Train Employees in Industry 4.0

Continuous training, flexibility, growth and accelerated changes can be key to the success of
tomorrow's businesses. German companies have decided to focus on continuing education for their
employees to ensure their qualification for Industry 4.0 (Crnjac et al., 2017). Training resources
internally is a much more accessible approach to begin the transition to Industry 4.0. However, this is
not enough to successfully implement the factory of the future.
Workers are dealing with complex technologies that are evolving very quickly, and manufacturing
companies need, more than ever before, specialized technical profiles. Many companies are finding
innovative solutions to their workforce challenges.

7.2 Addressing Investment Concerns

Manufacturing SMEs must make significant investments, ranging from 7% to 9% of their
turnover, to integrate new digital technologies (Kang et al., 2016). Thus, the development of an
"Industry 4.0" strategy and a digital plan is a must for SMEs who want to make better investment
decisions for the acquisition and integration of new technologies.

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 The digital plan must be embedded in the strategic planning of the organization. Its objectives will
be to optimize the current tools, draw up the plan for acquiring future technologies and ensure their
cohesion and integration, all considering the business model.

7.3 Improving efficiency

The managers should get a clear image of operational standing, particularly across multiple lines.
Important info about facilities, processes and equipment should be readily accessible across the firm.
The implemented Industry 4.0 system should be able connect sensor data and operations across
several lines and machines.

8 Conclusion
In the past, manufacturing was restricted to a sequence of procedures or a process through which
raw resources is transformed into end products. However, this is changing quite a lot now particularly
with the advent Industry 4.0 which uses computerized controls, sensors, information technology,
intelligent motors, production management software and to handle all specific stages or operations of
a manufacturing procedure. Additionally, the convergence between human intelligence and machine-
gathered data can advance enterprise-wide management and plant-wide optimisation objectives,
counting considerable upsurges in environmental sustainability, financial performance and worker
safety.
This is important as the manufacturing sector has a significant impact on the economic vitality of a
country. Therefore, key players in the business community should be mobilized to accelerate
manufacturing innovation. The Industrial Revolution 4.0 will bring profound changes to our society,
including an important digital shift in the manufacturing sector. To survive, manufacturing companies
must rely on the training and know-how of their employees, the integration of new technologies,
robotization and automation. Competition is strong on the world stage, and several industrialized
countries are in the running. To stay ahead of and even ahead of their competitors, manufacturing
firms need to be more competitive and more productive. In a nutshell, they must innovate to deliver
high value-added products, reduce costs and lead times, maximize employee skills and extend the life
cycle of their products.

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