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* By Rodney Repullo
The industries that implemented the technologies of Industry 4.0 have been evaluated as those that have a high level of logistical service, more efficient processes with their partners, improved cooperation between certain logistical functions and greater financial and market performance and competitiveness.
To stay competitive, industrial organizations around the world are making the transition to Industry 4.0 and instituting programs to implement it in many countries. Industry 4.0 has the potential to increase productivity in factories and boost national economies.
What is Industry 4.0?
Industry 4.0 is everything that involves data-driven manufacturing: the integration of physical machines with Internet connectivity to create the Internet of Things (IoT) and advanced communication networks. It allows manufacturers to link machines and systems from multiple locations, convert physical data to digital data, share it, analyze it and use it to their advantage, resulting in fully connected industrial plants, in which all aspects of the supply chain are visible to decision makers. The companies that have implemented Industry 4.0 have a huge advantage over those that have not yet done so.
Why can you no longer ignore Industry 4.0?
With today's technologies, midsize industries can quickly and easily join the industry's fourth generation revolution with customized enterprise-level solutions and without replacing existing legacy systems. In fact, a recent PwC report predicts that by 2020 more than 80% of industries in Europe will digitize their value chain.
To quote DD Mishra, senior director at Gartner: "The boundaries between business, engineering and technology are being broken down. There is a great opportunity for organizations, and if you are not doing so, there is a risk of being left behind."
In Brazil, according to data from the National Confederation of Industry (CNI), in the last 2 years the number of large Brazilian industries using digital technologies has grown 10%. Between 2016 and 2018, the percentage of those using any of the technologies of Industry 4.0 went from 63% to 73%. For 2019, the forecast is that 48% of companies will invest in these technologies.
How Industry 4.0 works
Industry 4.0 begins with the connection of mission-critical machines and systems, such as CRM, ERP, SCM, PLM and MES, facilitating automatic data collection in real time. Predictive and advanced analyzes explore and analyze this data to recognize patterns and predict possible results, and even to anticipate possible events (such as machine failures) and the likelihood of their occurrence. From these analyzes, which can be clearly read from a tablet or other mobile platform, manufacturers can reduce downtime, optimize existing processes and gain flexibility to implement new processes, such as manufacturing a single batch of a customized product. .
Some ways in which your competitors are using Industry 4.0 to stay ahead of the competition:
Improving machine availability and performance: advanced and predictive analysis allows predictive maintenance. The machines monitor themselves, alerting operators to problems before they occur. Parts can be ordered and replaced before they wear out and cause serious damage, and problems with production processes can be detected and traced back to their roots before real products are produced.
Machines have more uptime and less downtime and processes can be adjusted before production starts. With Industry 4.0 technology in place, its competitors are achieving greater yield from high quality products and better ROI and OEE.
Eliminating silos and increasing visibility in the production sector. If Industry 4.0 has not yet started at your plant, data from your mission-critical systems is likely to be stored in offline repositories that are difficult to access. This data is hidden from the eyes of the decision makers who need it most, reducing their ability to monitor processes, prevent problems or notify others about disturbing events as they occur. Meanwhile, competitors, with real-time data and advanced analytics, have instant access to accurate data at any time, from multiple sources. They know what's going on and what's going to happen at their plant, and they can solve problems or modify processes easily, anytime, from anywhere.
Controlling all aspects of the factory: If competitors are able to access and analyze data from all machines and processes in their operations, they will have full control of industrial operation and the supply chain - from ordering the inventory to shipping the product.
Industry 4.0 technology provides competitors with "actionable information", laying a solid foundation for short- and long-term decision-making. With Industry 4.0, competitors can implement just-in-time inventory, synchronize production and delivery schedules and even allow customers to schedule orders on their systems.
With technologies dedicated to Industry 4.0, the competition can do everything we have mentioned and more. So, it's time to think about how to put your industry one step ahead from the evolution provided by the fourth generation of the industry and get out of the competitive disadvantage.
* Rodney Repullo, CEO of Magic Software Brasil
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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