LINKING DIGITAL IN INDUSTRY 4.0
The Fourth Industrial Revolution was born in the factory, marrying computer-programmed automation with digital technologies such as analytics, artificial intelligence (AI), and the Internet of Things (IoT) on the production line. Since its inception, Industry 4.0 has spread beyond the factory walls to encompass a broader digital transformation that spans processes,functions, and industries. This technology-driven transformation could change the way many organizations make sense of information and act upon it to make decisions that could impact operations, deliver greater customer value, and improve performance. Many industrial companies find themselves in a unique position regardingthe Fourth Industrial Revolution. Despite their early lead implementing automation and computer programming in the factory and using technology to automate portions of supply chains, many manufacturers seem to be falling behind in adopting broader digital transformation initiatives that span the entire enterprise (figure 1). In an era where “disrupt or be disrupted” is fairly pervasive, limiting the digital strategy horizon to a few years and failing to advance along the digital maturity can increase the potential for being left behind. A recent global Deloitte Industry 4.0 study, The Fourth Industrial Revolution is here—are you ready?, sought to measure readiness for digital transformation across geographies and industries (see sidebar, “Methodology”).2 While the 1,600 executive respondents indicated a mix of opportunities and challenges surrounding the Fourth Industrial Revolution, there is a general sense of optimism in its ability to positively transform economies, business, and society. Along with this optimism regarding the potential for digital transformation to make a positive impact comes a reality that most organizations are far from reaching this stage. Overall, just 20.7 percent of manufacturing organizations surveyed rated themselves as “highly prepared” to address the emerging business models the Fourth Industrial Revolution brings. But there appears to be optimism. Analysis of the survey data identified a group of frontrunner organizations in manufacturing that are leading on the path toward digital maturity, as measured by not only their commitment to digital as the key ingredient to future business success but also their readiness to adopt advanced technologies.
INDUSTRY 4.0 AND CYBERSECURITY (ICT)
The fourth industrial revolution brings with it a new operational risk for connected, smart manufacturers and digital supply networks: cyber. The interconnected nature of Industry 4.0–driven operations and the pace of digital transformation mean that cyberattacks can have far more extensive effects than ever before, and manufacturers and their supply networks may not be prepared for the risks. For cyber risk to be adequately addressed in the age of Industry 4.0, cybersecurity strategies should be secure, vigilant, and resilient, as well as fully integrated into organizational and information technology strategy from the start
3D OPPORTUNITY (FABLAB)
Additive manufacturing (AM) is paving the way for the next step in the shift from physical object to data management by enabling manufacturing capabilities not possible through conventional means.The AM process draws upon a digital design fileto deposit material, layer upon layer, to construct 3D-printed parts composed of often-complex geometries.Despite their promise and potential, digital designs dictating the production of end-use, 3D-printed objects have not yet moved fully into the mainstream. While AM has become a crucial part of the design process through rapid prototyping and has gained traction for highly customized, small-batch parts and within “maker” movements, it has not reached critical mass for applications in end-use parts and products at the enterprise level.2 This is due, in part, to economies of scale: Printing a one-off object during the design phase or in a makerspace is entirely different from large-scale mass production of parts. For AM processes to scale at the industrial level, a series of complex, connected, and data-driven events need to occur.
THE SMART FACTORY
Connectivity within the manufacturing process is not new. Yet recent trends such as the rise of the fourth industrial revolution, Industry 4.0,1 and the convergence of the digital and physical worlds—including information technology (IT) and operations technology (OT)—have made the transformation of the supply chain increasingly possible. Shifting from linear, sequential supply chain operations to an interconnected, open system of supply operations—known as the digital supply network—could lay the foundation for how companies compete in the future. To fully realize the digital supply network, however, manufacturers likely need to unlock several capabilities: horizontal integration through the myriad operational systems that power the organization; vertical integration through connected manufacturing systems; and end-to-end, holistic integration through the entire value chain.
MAKING MAINTENANCE SMARTER
Traditional components of a maintenance program often fall into four categories, each with its own series of challenges and benefits (figure 1):
- Reactive maintenance
- Planned maintenance
- Proactive maintenance
- Predictive maintenance
INDUSTRY 4.0 AND THE CHEMICALS INDUSTRY
In one way or another, the chemicals industry contributes to almost every manufactured product. The industry converts petroleum and natural gas into intermediate materials, which are ultimately converted into products we use daily. With more than 20 million people employed and annual sales of $5 trillion, the global chemicals industry serves as the backbone of many end-market industries such as agriculture, automotive, construction, and pharmaceuticals. Changes in the chemicals industry are thus likely to have a ripple effect on a number of other industries.
The rise of the fourth industrial revolution, or Industry 4.0 (see the sidebar “An overview of Industry 4.0”), is likely to drive such changes. Industry 4.0 brings together a number of digital and physical advanced technologies to form a greater physical-to-digital- to-physical connection—and it can potentially transform the chemicals industry by promoting strategic growth and streamlining operations. The time is ripe for such a transformation: Advanced technologies relevant to the chemicals industry—such as the Internet of Things (IoT), advanced materials, additive manufacturing, advanced analytics, artificial intelligence, and robotics—together have reached a level of cost and performance that enables widespread applications.2 More importantly, these technologies are now advanced enough that they can integrate with chemicals companies’ core conversion and marketing processes to digitally transform operations and enable “smart” supply chains and factories as well as new business models.
