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MAKE WAY FOR INDUSTRY 4.0

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MAKE WAY FOR INDUSTRY 4.0

In a fast-moving generation, where new technological advancements happen in the wink of an eye, there is only one constant – change. We have to learn the art of walking hand in hand with everything new and adapt to the ever-changing environments to draw a progressive trajectory in our careers and personal lives. Everything around is changing, and there is nothing that’s permanent. ‘Improvement & growth’ are the two key words that drive people towards innovative ideas and solutions and Industry 4.0 is a testimony to change on a gargantuan scale.

 

Miracle on the move

 

New discoveries are made daily, and it’s certain that there won’t be any dearth of it in the days to come as well. But things around us are rapidly changing. The IoT (Internet of things) is ever expanding and it has started to play a major role in the field of production. The manufacturing industry is taken over by machines and the awe-factor here is that these machines have an internal intelligence and advanced interfaces that allow them to communicate with other machines. Sounds interesting, isn’t it?

 

It’s surprising, but it will not be new anymore considering the pace at which the industries are moving forward. You won’t be wrong if you can call it the future!

 

Industry 4.0 is a title for the current trend of automation and data exchange that’s taking the world of technology by storm. Cyber-physical systems, cloud computing, the IoT, and cognitive computing – it’s a ‘smart factory’ where the cyber-physical systems have the ability to take decentralised decisions. Over the IoT, these cyber-physical systems effectively operate and communicate with each other, and with humans. It sounds like a miracle, and you don’t have to doubt – it is indeed one!

 

Pillars of strength

 

It is like watching those Hollywood movies where it’s all about saving the world and future. Among the design principles of Industry 4.0, is interconnectivity.  Here, unlike the working patterns of the generations that passed by, the machines, devices, sensors, and people have the ability to connect and communicate with each other. This is achieved through the IoT (Internet of Things), or IoP (Internet of People). This brings forth transparency in the way it’s operated. The operators are loaded with useful information, and this makes it easier for them to take further steps and decisions.

 

Here the focus is on the establishment of intelligent products and production values. The system of interconnected network helps factories to cope up with rapid product development in complex environments. Within a smart factory, the products can communicate with their environment and influence the arrangement patterns through RMS (Reconfigurable Manufacturing Systems). There are configuration rules from which case-specific topologies can be derived. This enables the manufacturing companies to adapt quickly to various requirements in the market. The flexibility is increased, while the task of co-ordination becomes much easier.

 

The functionality of the whole system is increased manifold and this helps in identifying and improving the areas that need further innovation and improvement. Major decisions are made by humans of experience. This will soon be replaced with high-end solutions which will not be prone to error.  The decision-making process will be assisted by self-optimised and knowledgeable manufacturing systems. This means there will be stronger technical assistance to people operating the system. These systems are capable of assistance & support by aggregating and visualizing information comprehensively to make better decisions and solve urgent problems on short notice. Cyber-physical systems have the capacity to support humans by conducting a wide range of operations that are either risky or too unpleasant to handle.

When the real and virtual world joins hands as one, innovation will begin to help the economy scale better heights. The convergence of affordable technology and exponentially growing data has the power to transform the entire economy. IoT plays a vital role in this transformation.  This provides sustainable mobility and enhanced services in all sectors alike.

 

Expected developments and labour

 

The manufacturing pieces of equipment in the industrial revolution will be something out of the ordinary. Highly automated machines, tools, and robots will enter the scene and precision will be a guarantee. There will be flexibility and as the requirements change, and it is much easier to switch. Robots will be seen working together with workers on joint tasks. There will be a radical shift in the labour market as well. Skilled workers in demand for their experience will be eliminated and for them, it will call for serious change to adapt and move with the trend. This brings forth some new opportunities for the working class to change their routine and smartly adapt to the new requirements in demand. The requirement profile in the industry is expected to shift from a normal production employee to someone with high levels of profound competence. The probability of the number of workers decreasing is high. The rest of the manufacturing jobs will contain more knowledgeable work which will be short-term and hard-to-plan. The workers will be required to monitor the automated systems which will be integrated into decentralised decision-making platforms.

 

When it comes to the structure of the organisation and the way it operates, the manufacturing systems cannot be henceforth operated from a nodal point. Instead of that, decentralised instances will autonomously use local information for decision-making. The decision will be taken by workers or types of equipment using AI methods.

 

Talk about the value creation, we are about to witness a whole lot of 3D printing. The costs of additive manufacturing have dropped rapidly and this calls for an increase in speed and precision. Geometries that are far more complex and strong will be designed at ease. This enables the industry to visualise and execute the ideas in a better way. When there are provisions to manufacture the product in batch size according to the requirements of the customer, the mass customisation integrates the customer easily into the value chain.

MAKE WAY FOR INDUSTRY 4.0

Business models and value creation

 

Most of the business models will use smart data for rendering new services. The new developments will be used for floating sustainable models that are unlike the ones in the past. These sustainable business models can create positive or negative impacts on the environment or society. But on the other hand, they can also contribute to solving an environmental or social problem as well. These models will have the power to stay, which means you won’t see them going obsolete in the near future. They will be competitive on the long-run. This will be technique and here, the functionalities and accessibilities will be sold instead of just focussing on the tangible products.

 

In a nutshell, through such advanced value creation networks, we can witness ‘Industrial symbiosis’. The cross-linking of value creation networks offers new opportunities for realising closed-loop product cycles. The product, material, energy, and the flow of water throughout the product life-cycles will be efficiently coordinated. This coordination can be achieved between different factories as well. Closed-loop product life-cycles as such can work on recycling too.

 

Traditional versus 4.0

 

If you look at the current market, providing the best of services and product quality at the least price is the key to success. There is no denying that. Unless you look at the brand value of things, this is the formula that works for the common man. The industrial factories are trying to achieve just that – they are trying to increase their performance and profit. There are plenty of data sources available for the factories to avail information about the various aspects of profit making. The data has to be used to understand current operating conditions, and detecting faults and failures of the existing system. This is an important topic to research and there are plenty of commercial tools available to provide overall equipment effectiveness (OEE) values to the factory management. This will help in hogging the spotlight on the root causes of problems and possible faults in the system.  Moreover, the added advantage here is that the components and systems in Industry 4.0 will have self-awareness, which will effectively improve the efficiency of the factory.  Through peer-to-peer comparison and fusion of health comparison, a precise health prediction is attained and this enables the factory management to maintain the systems intact. This sort of stability was missing in the traditional factories.

 

Logistics and supply chain

 

Innovation in logistics is not entirely associated with modern IT solutions. But there are things that can change. There are some innovative solutions that can manifest through this industrial revolution.

 

There is room for continuous improvement. Whatever work happens around, it will be continuously verified and the team will have huge benefits out of it.  The latest advancements also help to keep vigil over all the activities and its quality. Team-work can be effectively coordinated like never before. The entire focus will be on implemented practices and shared values. Through Industry 4.0, there will be continuous activities running round the clock to constantly search and come up with better ideas to increase productivity.  There is no dearth of communication, plus work-satisfaction and elimination of old habits – there are changes aplenty when the entire system is improved.

 

There are some other factors as well that showcases the kind of change that’s about to hit the field of logistics. There will be a big change in the structure of regional networks, flexibility and risk management. When it comes to the lead time delivery services, customer satisfaction is guaranteed. The system is more reliable and updated. As the services are rendered according to the needs of the customers, the rapid approach and problem-solving techniques will increase reliability and trust-factor to the next level. The segmentation of the supply chain will be focussed on demand and specific needs of the customers. This will help in great reduction of the volume of stocks, and bring forth cost-effective remedies. Safety requirements and potential hazards in the supply chain can easily be spotted. Combine all these factors and you can guess how a factory or a set of factories will benefit from these changes.

 

The Internet of Things

 

The idea of the Internet of Things was formulated by British entrepreneur Kevin Ashton in 1999 to describe a system in which the material world communicates with the computer. Two decades later, it stands in front of us in the form of reality.   Today, there are areas where IoT solutions can potentially revolutionise the entire industrial standards.

 

The IoT focuses on Smart environment where the entire anthropogenic emissions will be monitored and cut down to produce eco-friendly solutions. Smart water management is an area where this can be achieved. The impacts of water resources on the environment, their regulation and protection against floods, waterways, and hydropower is a key area of study using IoT that can change the entire game plan. In a way that supports the economy, soon there will be smart and better ways of transport, production and energy resources. Smart cities are another such wonder where IoT can play an important role. Traffic congestion can be monitored and regulated, parking spaces, intelligent roads, weather-monitoring and much more – the IoT can work magic. Smart health will cover a wide range of physical activities and monitor them to tune us into perfect health conditions. Health-centric homes are becoming a reality.

 

The future

 

Industry 4.0 has the potential to make an impact on a lot of areas around the world. Talk about better services and business models, it will be served. When we deal with productivity, it’s about to become more reliable and competent. Machine safety, risk management, better communication, product lifecycles, transport and logistics, and more – everything will be improved using cutting-edge technology.

 

If you consider a machine, with time it will be affected by wear and tear. When networking becomes confusing cobwebs, there is a loss of time and productivity. Industry 4.0 will address all the issues and bring out the best in everything. The vast majority of businesses are determined with the implementation of product, technical, technological, and organisational innovation.  The focus is on creating value for the customer who is aware of everything happening around. Solutions such as the Internet of Things, Big Data and Industry 4.0 create more opportunities to meet such customer requirements. Logistics is better, and supply chain management is stronger than usual. Business is better, and work is much easier. Welcome to the revolution.

MAKE WAY FOR INDUSTRY 4.0

 

References

 

[1] Persaga

https://www.persaga.ch/stellenwandel-dank-industrie-4-0/

[2] Science direct, T. Stock, G Seliger. https://www.sciencedirect.com/science/article/pii/S1877705817313346

[3] Science direct, Krzysztof Witkowski; Internet of Things, Big Data, Industry 4.0 – Innovative Solutions in Logistics and Supply Chains Management

[3] BGH Consulting. https://www.bgh-consulting.de/de/lp/industrie4.0-personalberatung/

[4] Wikipedia. https://en.m.wikipedia.org/wiki/Industry_4.0

[5] Waset. http://waset.org/publications/9997144

[6] Springer. https://link.springer.com/chapter/10.1007/978-3-658-05014-6_2

 

 

Supply Chain Gets Smart with Artificial Intelligence

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Supply Chain Gets Smart with Artificial Intelligence

Artificial Intelligence is truly revolutionizing every aspect of the world, from public institutions to private, affecting each and every industry. Logistics is no exception to the universal reach of AI. Therefore,  supply chain can overcome many of its risks and gaps by the applications of AI.

Artificial Intelligence is simply intelligence that is displayed by machines. The machines’ learning and action-based potential copies the autonomy unlike conventional process-oriented intelligence. In other words, AI is the simulation of human intelligence by computers. The 3Vs of big data or the core of AI is the ability to recognize volume, velocity, and variety. This in turn is used to find correlation among massive data.

Most experts categorise AI into two blocks-Augmentation and Automation. The former assists and aids human beings with their routine tasks while the later operates independently without having to rely on human intervention.

Supply Chain Adapting to AI

Back in 2010, a research predicted that supply chain management would gain immensely from the applications of artificial intelligence. The research suggested various ways in which this could happen-setting inventory safety levels, transportation network design, purchasing and supply management, etc. Thanks to the exponential growth of AI over the last decade, these things have been made possible.

The tools that AI offers in the sphere of logistics have been deemed to have huge potential for augmenting the top-line and bottom-line value. There are the 6 applications of artificial intelligence that supply chain management can foster:

  • Forecasts and Analysis

Any industry is highly dependent on the supply chain planning which forms an important part of the respective business’s supply chain strategy. Artificial intelligence steps in when it can enable forecasting within the inventory, or demand and supply. Additionally, machine learning can boost the agility and optimization of the decision-making involved in supply chain management.

With artificial intelligence, the SCM industry can come up with the best possible plan of action which is determined out of algorithm and machine-based analysis.

If a business sells sanitary equipment, it can use an AI based tool to predict the demand of each of their products on a daily basis. AI does so by analyzing the historical sales data of all the models and the data so delved into includes date and time of purchase, number of items purchased, and other information.

The machine learning tools can learn the peculiar trends in terms of seasonality, or type of product and it also considers factors like weather data and news events that might have affected the sales of a particular period.

  • Warehouse Execution System

A reliable warehouse and inventory management is one of the most significant aspects of supply chain planning. An industry-specific yet universal challenge that businesses incur is either overestimating or underestimating the required stock.

Artificial intelligence based algorithms and data have such a streamlined predictive capacity, that it can forecast supply and demand as mentioned before. This feature of AI can be applied to supply chain management for overcoming issues that lead to shortage or excess of inventory.

Another way in which AI can be used for this industry lies in using the tools of localization and mapping. Automated Guided Vehicles (AGVs) in warehouse management have had issues in the past but with a machine vision, AGVs can operate automated material handling in a traditional space like buildings.

In fact, Warehouse Execution System (WES) utilizes AI to make the supply chain systems more efficient.

  • Logistics and Shipping

In today’s day and age, customers and clients expect accurate and timely delivery. But that has pressurized the companies to the extent that they now look to better their shipping and logistics facilities. Companies indeed prefer to mark an improvement here because they benefit while making customers satisfied at the same time.

Artificial intelligence enables faster and more accurate shipping which lowers the transportation expenses. In the present context, AI has also allowed companies to turn to environmental friendly operations and reduce labour costs. The best examples have been set by Amazon and pizza delivery chains which have turned to AI based drones to deliver their products to their customers.

  • Choosing Suppliers

Profitable supplier selection and maintenance of a sound professional relationship with suppliers is yet another important work for businesses. With the advent of certain factors like sustainability, CSR and supply chain ethics playing a role in the decision making of supply chains, businesses have to choose the perfect supplier.

Even a slight complacent decision can snowball to reduction in goodwill and bad PR. Thankfully, AI and its almost magical use of intelligent algorithms has enabled firms to have access to supplier-related data. The companies can now check real-time data about their suppliers like history of operations, location, previous clients, etc.

  • Chatbots for Customer Satisfaction

Companies are always in dire need of a reliable but foolproof system of customer communication and correspondence, which can at times determine their reputation and rapport with their past, present and future clients. Customers often face forced waiting time for answering their queries or have to converse with people multiple times.

 

AI gives a solution to this problem by providing conversational interfaces (or chatbots) which could provide multiple advantages to businesses. To name a few, chatbots can reduce the cost of transactions, sales cycle time, as well as enhance customer loyalty. The chatbot response machine powered by AI has a multi-dimensional interface in which it considers factors like the context of the issue, the history, and customer response management.

 

  • Decipher Untapped Information

AI and Machine Learning have a versatile set of elements and one of them is used to convert foreign data in a standardized format. This element is called Natural Language Processing (NLP).

NLP is an immensely resourceful application for logistics. NLP navigates through data of customers, competitors, regulators and suppliers to find compelling answers for business needs. In fact NLP is versatile in itself as it can be utilized for speech recognition, question answering, reputation monitoring, ad placements, market intelligence, and regulatory compliance.

 

In the supply chain management sector, NLP is most useful in deciphering data that is in a different language, thus enabling companies to understand more about a foreign subject like a supplier.

Supply Chain Gets Smart with Artificial Intelligence

Evolving SCM with Artificial Intelligence

Artificial Intelligence has made its presence felt in a positive way across every sector and industry. The challenges faced by supply chain management strategies and operations are now dissolvable with the help of artificial intelligence and machine learning. The system and algorithms put forth by AI grows and evolves with every unit of data, making it more and more independent of human intervention whilst being as close to human behavior as possible. The future is right in the hands of those who utilise the wonders of artificial intelligence, and supply chain management can bag this opportunity.               

 

Reference Link Provided: https://medium.com/@KodiakRating/6-applications-of-artificial-intelligence-for-your-supply-chain-b82e1e7400c8

 

Reference Link Used:

https://www.researchgate.net/publication/247523024_Artificial_intelligence_in_supply_chain_management_Theory_and_applications

https://www.spendedge.com/blogs/5-ways-ai-can-enhance-supply-chain

https://www.techemergence.com/natural-language-processing-business-applications/

 

 

Revolution der Industrie 4.0: Was ein Berater für Industrie 4.0 in einer Firma verändern kann

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Revolution der Industrie 4.0: Was ein Berater für Industrie 4.0 in einer Firma verändern kann

Industrie 4.0 ist der Name, den man dem momentanen Fortschritt der Daten und dem automatischen Austausch bei der Produktion von Waren für den Gebrauch oder Verkauf, die durch Maschinen oder Werkzeuge hergestellt werden, gegeben hat. Es besteht aus dem Internet der Dinge (IdD), kognitivem Rechnen und Cloudcomputing. Man nennt es auch eine “smart factory”. Durch diese Technologie kommunizieren und kooperieren Cyber-Physikalische Systeme in echt-Zeit mit Menschen.

Manche Firmen versuchen sich den neuen Technologien anzupassen, während andere sich nicht über neue Entwicklungen informieren und es verpassen, die Umgestaltung anzuführen. Sie passen sich der, sich ständig ändernden Technik-Landschaft, nicht an. Eine Firma, die diese Reise der Veränderung antritt, kann auf dem Markt effektiv Konkurrieren und Kosten und Profite verbessern.

Um den stetig steigenden Anforderungen eines Kunden gerecht zu werden, kann eine intelligente Versorgung und eine Digital-Integrierte Kette eine unvergleichlichen Level an Zusammenarbeit ermöglichen. Eine Gruppe intellektueller ist die Antriebskraft hinter dieser Technologie und sie können die Industrie auf ungeahnte Höhen bringen.

Industrie 4.0 ist eine Technologie, durch die Automatisierung und Computer auf eine Innovative Art, zusammenarbeiten lässt, mit Robotern die durch ferngesteuerte Systeme miteinander verlinkt sind, zu Computer die mit Lern-Algorithmen ausgestattet sind, die die Roboter verstehen und Managen können, ohne dabei viel Hilfe von Menschen zu brauchen.

Industrie 4.0 hilft dabei, eine “smart factory” zu Kreieren, mit Modular-Umrandeten, intelligenten Cyber-Physischen Systemen, die Physische Prozesse überwachen und gemeindete Entscheidungen treffen.

Woher kommt der Ausdruck Industrie 4.0?

Der Ausdruck Industrie 4.0 stammt ursprünglich von einem High-Tech Strategieprojekt der Deutschen Regierung, welche die  Computerisierung der Herstellungsprozesse unterstützt. Der Ausdruck ”Industrie 4.0” wurde in 2001 bei einer der größten Messen der Welt, der Hannover-Messe, wiedereingeführt. Im Oktober 2012, hat die Gruppe, die an Industrie 4.0 arbeitete, den Deutschen Beamten eine reihe Umsetzungs-Strategien vorgelegt. Die Mitglieder der Arbeitsgruppe von Industrie 4.0 werden als Erfinder und Schlüsselfiguren hinter Industrie 4.0 gesehen.

Vier Design Prinzipien:

Industrie 4.0 hat vier Design Prinzipien, die Firmen dabei unterstützen Industrie 4.0 Szenarien zu entwickeln und auszuarbeiten.

  • Kompatibilität: Die Fähigkeit, über ein großes Ausmaß, Menschen durch das Internet der Dinge miteinander zu Verbinden und der Atomisierungsprozess.
  • Informationssysteme: Die Fähigkeit der Informations-Transparenz, um einen praktischen Begriff für jeden Zweck zu kreieren, indem man Digitale Fabrik-Modelle für höhere zusammenhang des Informations-Nutzen implementiert.
  • Hilfs-Systeme: Die Fähigkeit eines Technischen Hilfs-Systeme, um Menschen physisch zu unterstützen, indem eine Reihe von Aufgaben durchgeführt wird.
  • Cyber-Physische Systeme: Die Fähigkeit der dezentralisierten Entscheidungen und selbstständiges ausführen von Aufgaben.

Der Schlüsselgedanke der “Industrie 4.0” ist faszinierend und bemerkenswert. Es ist der Prozess, die Industrie mit revolutionären, fortgeschrittenen Digitalen Systemen zu füttern. Die Vorzüge eines Industrie 4.0 Modells könnten die Bedenken, die viele produzierende Firmen haben, in den Schatten stellen. In gefährlicher Umgebung, könnte die Sicherheit und Gesundheit von Menschlichen Arbeitern verbessert werden.  Versorgungsketten könnten einfacher kontrolliert werden, wenn es auf jedem Level der Produktions- und Lieferkette Daten gibt. Computer-Kontrolle könnte zu beständiger und sicherer Produktion und Leistung führen.  Und die Resultate könnten für viele Firmen die Einnahmen, Profite und Marktanteile verbessern.

Das Problem ist also nicht ob Industrie 4.0 kommt, sondern wann. Wie das halt bei großen Daten und anderen Firmen-Fortschritten ist, glauben wir, das die Frühanwender den Preis für ihren Mut ernten werden und in diese neue Technologie einfallen, während die, die Veränderung meiden, es riskieren zurückgelassen und vergessen zu werden.

Innovation Management – If you’re not going forward, you’re going backwards

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Innovation Management – If you’re not going forward, you’re going backwards

In today’s world, a lot of companies face many challenges in day-to –day operation. The great competition that is partially caused by globalisation causes all business owners to look for a way to gain an advantage over other companies. Running a successful establishment means a constant improvement of products, customer satisfaction and business operation.

’If you’re not going forward, you’re going backwards’

This is the reason why companies are so interested in different methods of company’s processes optimisation and product improvement. As a result, such concepts as lean management and innovation management gained in popularity. In our previous articles, we talked about lean, where it came from and how can a company implement it. Today we will talk about innovation management.

What is an innovation management?

Innovation management is a field in business that combines the management of innovation process and change management. It can be implemented not only in product development but also in various business processes and organisational elements of a company. In simple words, innovation management directs the changes in a firm. It manages alterations, from the planning through implementing to reporting to assure that all the changes are an improvement in company’s work.

The concept of innovation management is based on an idea that first appeared in the 1930s. in a book “Capitalism, Socialism and Democracy” by Joseph Schumpeter. On the pages, the author explained to his readers details of a creative destruction. The theory was a foundation for innovation management. The basic idea of creative destruction or “gale of creative destruction” says that during company’s operation new solutions are being developed at all times while the old ones simultaneously are being destroyed. This shows that businesses are constantly looking for improvement of their operations to keep up with their competitors.

Who can implement an innovation management?

Many incorrectly think that innovation management can only be implemented in companies that are manufacturers. On the contrary, this concept is not only reserved for a factory work, as innovation can be implemented on various levels of company’s operations. Commonly thinking has been adopted that innovation may only apply to a product, possibly a service. Of course innovation is mostly seen in products and services development; however, it can be applied also in such fields of business as customer experience, brand or marketing methods. And this means that virtually every company can benefit from implementing this concept.

Where can an innovation management be implemented?

We can find numerous areas of a business where innovation management can be applied. From mentioned before products and services development to marketing, networking or human resources. We just have to remember that for each area of business different tools must be applied, for instance when implementing changes in HR such tool as online recruitment or intranet might be helpful. In marketing, we can take an advantage of CRM or geo-marketing.

What are the benefits of innovation management?

There is a number of benefits of innovation management. Depending on the area that the company decides to implement innovation management the business owners can expect an improvement of customer satisfaction, business margins, employee engagement or gaining a competitive advantage.

Lean Manufacturing / Lean Management – a short history

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Lean Manufacturing / Lean Management – a short history

We wrote about Supply Chain and its history. We spoke extensively about Industry 4.0, Internet of Things and its benefits. We also mentioned Lean, however, we never explained where it came from. As it is an old concept many must have heard the name before. What people might not know is how important Lean is to other management concepts that were created later.

 

Lean – short introduction

 

Lean manufacturing or lean production, commonly known as Lean, is a concept that was created in Japan. The creation of Lean is credited to Toyota factories. It is thought that Lean Manufacturing was formed around 1980. However, researchers show that the nucleus of the concept can be seen much earlier. It is indicated that the first signs of waste management and reduction appeared in Benjamin Franklin’s time. He, himself indicated that necessary or outgrown stock is a waste of monies and can create a loss. On the pages of Poor Richard’s Almanack he pointed out:

 

”A penny saved is two pence clear. A pin a-day is a groat a-year. Save and have.” [1]

 

Nevertheless, the concept was named and popularised after it was implemented in Toyota factories as a part of Toyota Production System.

 

Toyota Production System

 

The Toyota Production System is a collection of techniques and management tools that are implemented in every aspect of company’s activity. The main goal of this system is to minimalize waste, maximise profit and increase customer satisfaction. The system was developed mainly by Taiichi Ohno and Eiji Toyoda between 1948 and 1975.

 

The basic concept says that all employees should work towards reducing 3M: muri – overburden; mura – an inconsistency; and muda – waste. In other words, the entire factory processes should eliminate mura (inconsistency) without creating muri (overburden) and generating muda (waste).  These basic ground rules helped to shape two important concepts: JIT (Just-in-time) and Jidoka (autonomation). TPS (Toyota Production System) is also a birthplace of Lean Manufacturing.

 

Toyota’s concepts became popularised around 1960 – 1970 when other factories, impressed with the results, started to copy solutions of Toyota’s factories.

 

Lean Manufacturing

 

So what exactly is Lean Manufacturing, and why did it become so popular?

 

Lean Manufacturing, now also known as Lean Management or simply Lean, is not a simplistic solution which can be taken as it is from one company, copied and implemented in another factory or business without any modifications.

 

Every company that wants to draw benefits from this concept, might take the ground rules but all the processes must be developed individually for a specific business in mind.

 

The core concept of Lean Manufacturing is to reduce waste while improving a quality of produced goods or services and simultaneously creating better value for customers.

 

Implementing Lean requires a change of the operation of the entire company. The areas of the company that Lean can be implemented involve transportation, stock handling, overproduction, customer relation and many others.

 

The process of implementing Lean in a company proves to be so complex that many businesses decide to hire professionals who specialise in Lean Management.

[1] Source: https://en.wikipedia.org/wiki/Lean_manufacturing#Lean_implementation_develops_from_TPS

Industry 4.0 vs Lean Manufacturing

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Industry 4.0 vs Lean Manufacturing

Industry 4.0 is a very hot topic among people working in factory enterprise at the moment. This industrial movement has never been so popular after it was first introduced in 2011. Since the advantages of Industry 4.0 have been passed on to the general public information more and more companies are trying to explore the possibilities of implementing the ideas behind this movement in their operations.

Many companies work already with lean manufacturing or lean management, a concept which a core idea revolves around increasing productivity and reducing cost of operation at the same time. The questions are whether factories that already use lean should switch to Industry 4.0? Maybe both systems could work simultaneously? What about businesses that just started to think about implementing a method that will help them cut unnecessary costs, which system should they choose?

Just a quick reminder

Industry 4.0 is a method first introduced in Germany in 2011. This is a quite new concept which is still being developed. The idea behind Industry 4.0 (otherwise known as smart factory) is to use modern technologies to improve manufacturing processes. In the ideal world, all machines in factory should on its own connect with one another through Internet or internal network system passing information regarding order specifications. Such work should be faster and more cost- effective.

Lean manufacturing is a much older concept. It was created in Japan around late 1980. Famous Toyota factories are considered as a birthplace of this idea, thus alternatively it’s called The Toyota Way. The basic notion of lean is to reduce waste, increase productivity and customer satisfaction. Although this movement was created for the purposes of improving factory’s operations, lean can be adopted by any business or service.

Can Lean and Industry 4.0 work together?

Both concepts can work together at some level. Although there are experts who point out that in some areas there might be a clash between both concepts. We must remember, though, that Lean and Industry 4.0 work on a different plane but their idea is alike: both seek higher effectiveness of the company at lower cost (which doesn’t mean lower standards!). Lean handles processes where Industry 4.0 deals with software and advanced technologies. As rightfully Stefanie Peitzker points out in her article, “Lean production meets Industry 4.0”, any factory wanting to explore possibilities of implementing Industry 4.0 in their processes must first have some production system established. Stefanie suggests working with a rule in mind “first process maturity, then Industry 4.0”[1].

Also, when deciding to take on the current trend which is Industry 4.0 it is crucial to look for professionals that could help bring set ideas to life. It is at most importance that such people have knowledge of manufacturing strategies. Software engineers who are hired to design a network should, in particular, have lean production knowledge and Industry 4.0 knowledge.

 

[1] Source: http://blog.bosch-si.com/categories/manufacturing/2016/06/lean-meets-industry-4-0/