The first three industrial revolutions came about as a result of mechanization, electricity and IT. Now, the introduction of the Internet of Things and Services into the manufacturing environment is ushering in a fourth industrial revolution. In the future, businesses will establish global networks that incorporate their machinery, warehousing systems and production facilities in the shape of Cyber-Physical Systems (CPS). In the manufacturing environment, these Cyber-Physical Systems comprise smart machines, storage systems and production facilities capable of autonomously exchanging information, triggering actions and controlling each other independently. I4 holds huge potential. Smart factories allow individual customer requirements to be met, whilst efficiency obtained in automated production is maintained. Meaning that even one-off items can be manufactured profitably. Manufacturing companies generally oppose to various trends: growing global competition, more individualized customer demands, new technologies and rapid technological progress, as well as strict environmental regulations; nevertheless in I4, dynamic business and engineering processes enable last-minute changes to production and deliver the ability to respond flexibly to disruptions and failures. These trends lead to an increase in product variety, shorter product life cycles, uncertain and fluctuating demands, as well as higher cost pressure. In Fig. 2 it can be noticed through different times how is
Henry Ford, an American industrialist proved, not only to America but to the world that a car can be affordable to the so called, “Everyday Man”. “Henry Ford did not invent the car; he produced an automobile that was within the economic reach of the average American” (Sorensen 1). Subsequently, Henry Ford’s assembly lines were used in World War II to make equipment for the army. His car company, Ford, still produces one of the most durable and most cost effective car on the planet. In fact, every big car franchise today uses Henry Ford’s one hundred year old assembly line in order to manufacture safe and efficient transportation for everyone. Seeing that, Henry Ford’s moving assembly line has grown more complex because the parts and variety of vehicles being built continue to evolve. As a matter of fact, more automakers continue to improve the assembly line with flexible tooling, virtual engineering and robotics in order to keep up with the demands of the twenty-first century with ambitions of making Henry Ford’s one hundred year old technology better. Above all, making the automobile less expensive was an achievement in the engineer world, and as Henry Ford said, “Coming together is a beginning; keeping together is progress’ working together is success” (“Henry”
Although the U.S performance in manufacturing is remarkable there are some challenges that are an issue for the sector and it could lead to a downshift to of the economy. According to the Bureau of Economic Analysis (BEA) it reports that the U.S produces about $1.80 trillion in revenue, this would make the U. S industrial sector the world 10th largest economy in terms of (GDP). Productivity has also been in a stable rise until 2011 but in the new type of market the U.S is trying to compete outdated forms of manufacturing procedure are unsuitable forms when it comes to implementing new technologies (Kathawala, Y., & Hilsheimer, G. (1991)). Consumers want variety and innovation without the cost and quality penalty. This type of change requires manufacturing to be cost effective and flexible to meet market demands
Automated manufacturing is another application of automation and by far, it is the most important and useful in the United States. This practice of automation is used to produced things in a factory way. Consequently, many of the products that consumers purchase are the result of automated manufacturing. Some of these products include automobiles, refrigerators, dishwashers and videogame consoles like the Xbox 360 and the PlayStation 3. Today there are numerous industries applying automated manufacturing including the airline, automotive, mining, oil and food production industries (Vassar).
Despite the fact that there are better manufacturing technologies to be found in today's modern world, it is still quite difficult for every Tom, Dick and Harry in business to manufacture their own products. This is because the cost of setting up a manufacturing plant is significantly high; in addition, one requires a team of professionals with a high level of expertise in various aspects of manufacturing in order to have everything up and running as smoothly as possible.
Internet of things has been beneficial to the industries due to automation of processes. Management should, therefore, incorporate the automated decision with their human judgment to avoid unmonitored processes and decision making of the organization (Pye,
While mass customization is a viable option in manufacturing with digital factories and employing lean manufacturing designs, service firms have to employ a more productive environment to make mass customization profitable. Mass customization refers to using mass production technologies to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers (Daft, 2016, p. 271). The key challenge for service mass customization is to translate information about consumer preferences gained through market research into a format that can be easily used for service modularization decisions and customer-contact personnel training (Haas & Kunz, n.d., p. 603). In the service arena, mass customization becomes an ongoing configuration process with direct involvement of the customer coupled with professional advice by service personnel who understand the configuration rules and know them by heart. A clear understanding of the customer’s needs is required, as well as a requirement by service personnel to provide the customer clear and concise configuration options that strike the perfect balance between flexibility and complexity. Also, a continuous interaction between frontline contact personnel and the customer is a consequence that must be
The IoT’s job is becoming more vital in rendering access to devices and machines which existed manufacturing systems are hidden in well-designed storage towers (silos). This advancement can allow the IT further to come into the digitized manufacturing systems. The entire range of applications which can run around the production shall be connected to factory via the IoT. This would range from connecting the factory to the smart grid and sharing the production facility as a service. In this context, the production system would be though as one of the many IoTs. A new ecosystem for smarter and more efficient generation could be defined.
The operations and functionality of various industries across the world continue to change rapidly since the 21st Century. The change process started around the mid of the 20th Century when the industries began evolving on the design and innovation process. This marked the beginning of the adoption of new means of information flow due to the advent of computers and computing technology. Information technology and computers aided in the rapid advancement in various fields (Bagheri and Casprini 37-38). The ever increasing scope of making better designs, invention of modern
Applications within the retails sector offer a major opportunity for business to reduce cost and increase profit. The implementation of the internet of things will enable retailers to track their inventory in real time. With products on shelves equipped with technologies such RFID TAGS and smart shelves would be equipped with sensors, retailers would be able to track the movement of products and quickly replace out of stock items. (Thomas W. Gruen, 2007)
Industry is expected to grow from $20B in 2010 to $44B in 2014. Although demand was consistently strong and expected to grow 22% in 2012, margins were constantly squeezed due to pricing pressures and manufacturer sought to reduce costs wherever possible. Industry was sometimes prone to supply shortages, so fast, flexible manufacturing practices were critical in meeting customer demand.
When it comes to processes and activities, there are wide differences between a service-based organisation and a manufacturing environment. In the production line of a factory like
The Internet of Things (IoT) is known for wearable gadgets such as the new Apple watch or fitness wearables such as Fitbit. Information is gathered from these devices and displayed on users’ computers and smartphones, to let consumers track such things as fitness. There are devices for the medical field to help patients track vital signs and have those transmitted to their doctors back at their offices. Rivera & Goasduff (2014) suggest the Internet of Things (IoT) is forecast to reach 26 billion installed units by 2020, up from 0.9 billion just five years ago, and will impact the information available to supply chain leaders and how the supply chain operates.
The Internet of Things is a vision of a global network that connects various physical world objects to the IT infrastructure. This vision has been inspired by the success made in emerging technologies such as Radio-Frequency IDentification (RFID), wireless sensor networks, and mobile communication. The realisation of such a global object network will allow seamless interaction and cooperation between the real and logical world.
Computer integrated manufacturing (CIM): Is a manufacturing philosophy in which the functions for the organization, from product definition to the disposition of the final product, are designed and integrated to achieve clearly enunciated organizational goals, most efficiently and effectively. The coordination of the functions is achieved using computer, communication, and information technologies. (UYSAL, 2010) According to the U.S. National Research Council, it improves production productivity by 40 to 70 percent, decreases design costs by 15 to 30 percent, reduces overall lead time by 20 to 60 percent, and cut work-in-process inventory by 30 to 60 percent as well as enhances engineering productivity and quality. These statistics tells us that how important CIM is nowadays for most of the manufacturing industries. (Koch) The importance of CIM in financing can be the software side where most of the data is fed in the computer and all the financing and accounting part today is done with the help of computers. It also helps in forecasting and prediction
The concept of the internet of things abbreviated as IoT was introduced as early as the late 90’s by Kevin Ashton, the Executive Director of Auto-ID Labs and a professor at Massachusetts Institute of Technology. Now, “the Internet of things is already a disruptive technology capable of determining fundamental changes that are happening in everyday life, and it is considered the fourth industrial revolution.” (Hucanu) The Internet of Things (IoT)