Are you confused about what Industry 4.0 is? Many people are because it seems to be so similar to Industry 3.0, or the 3rd Industrial Revolution, an era that just recently ended. So what’s the difference?
Here’s the simplest way to put it:
Industry 4.0 is in fact the practices of Industry 3.0, but with an added use of smart technology which produces connectivity. So, devices communicate with each other and are able to even make decisions.
So what’s that mean?
You’re familiar with Industry 3.0 practices. These are the traditional manufacturing practices like Lean, Enterprise Resource Planning (ERP), and Automation, just to name a few. Now let’s add in the element of smart technology, or smart manufacturing. The entire production is connected and every single part, machine and employee are working in sync. Efficiencies are automatically captured and implemented. Inventory is always recorded which reduces waste. Because every machine or device is connected, real-time data is given which allows for data-based decision making on when to order materials, when to ship, when to reschedule a product and more. All this information makes it clear what the health of your organization is at any given moment. Information that is critical to the life and success of your company.
Endless possibilities with Industry 4.0
The potential and possibilities that come from implementing an Industry 4.0 production really are endless. If you free up workers in certain areas, they are then able to focus on new initiatives. If you reduce waste, you have new capital to use on new technology. Efficiencies open up the ability to expand and grow. And, let’s face it, you’ll have new leverage when it comes to recruiting new employees that want to be a part of smart technology.