FROM INDUSTRY 4.

0 TO THE FOURTH
INDUSTRIAL REVOLUTION

Shuo-Yan Chou, Ph.D.

Director of Center for Internet of Things Innovation (CITI)
Distinguished Professor of Industrial Management
National Taiwan University of Science and Technology
 SOCIAL ECONOMIC DRIVERS

Lack of Skilled Aging Society

Workforce Later Retirement

Shorter Product Increasing

Lifecycles Product Variability

Source: Wolfgang Wahlster, DFKI, Germany

 INDUSTRIAL REVOLUTION

THIRD
FOURTH
SECOND INTELLIGENT
FIRST AUTOMATION
FACTORY
MASS
MECHANICAL PRODUCTION
PRODUCITON INDUSTRY 4.0
IT + OT for Production
Electricity and Electronics and
Cyber Physical System
Division of Labor:
Conveyor Line
Info Technology:
PLC, MES, ERP
IOT and IOS
Steam Engine
INDUSTRIAL INTERNET
Asset Management

INDUSTRIAL Predictive Maintenance

REVOLUTIONS
 EVOLUTION OF CONNECTIVITY

Computer to Computer: Internet

Page to Page: World Wide Web
Data to Data: Semantic Web; Web 3.0
Thing to Thing: Internet of Things; IOT
Value to Value: blockchain; Internet of Values

IOT + blockchain = Internet of Distributed, Autonomous

Things
 Activity
Security
Tracking
Camera
CONNECTIVITY TO
SMART SERVICES

Lighting
Environment
Control

Distance
Washer and Service
Dryer
CONNECTED BULBS
CIUCRULAR ECONOMY
 SMART MEDICINE BOX
Functions
Alarm Instructions
Pills distribution Wireless communication
Interface Record tracking Inbox detection: content,
Handheld design temperature, humidity

Framework

Design
SMART CONNECTED TRANSPORTATION

Navigation
Insurance
Safety
Traffic Flow
Energy
Driverless
car
 PROXIMITY MARKETING

RESTAURANT CAMPAIGN:
interest, frequency, proximity
 SHARED MOBILITY

RENTAL CAR CARSHARING MOBILITY ON DEMAND PRIVATE CAR
 CONSUMER/INDUSTRIAL IOT

Connecting CONSUMER Products

Revolutionary (low digitalization)
Many new opportunities
Evolving from many isolated developments

Connecting INDUSTRIAL Products

Not new (but low connectivity)
With rich foundation from automation
however, will be explosive
 IMPLICATIONS ON PRODUCTION AND
SUPPLY CHAIN PROCESSES
Production Volume

VW Beetle
Production
per Variant

Audi Configurator
1955
Mass
1980
Production
Shared Economy

Globalization

2000
3D Printed Car
1913 Complexity
Individualization

1850
Ford Model T
iPhone

Source: Fraunhofer IPA, IFF Universitt Stuttgart No. of Variants

 WIRELESS SENSING, CONNECTED
SMART ENVIRONMENT
CRITICAL ISSSUES:
Identification
Sensing or Data Acquisition
Wireless Communication
Low Energy
Wireless Networked Automation
Energy Harvesting
Bandwidth
Interact & Control (Ux)
Intelligence
Interoperability
Analysis / Big Data
Security / Privacy
Self-learning Condition Monitoring
Source: Fraunhofer IIS, EAS Division, Germany
 MACHINES OR COMPUTERS?

COMPLEX COMPUTER ON FOUR-WHEELS

 SMART MFG THROUGH CPS AND
DECENTRALIZED CONTROL
Im booked out till
Friday!
Solution Components
I have to be at the
goods issue in 2 hours! CPS
Magazine will be empty Self-configuration
soon, please refill!
I can work on Virtual representation
Saturday.
Context-aware
Sorry, Im not
available on Information management
Saturday.

I need to go home
Benefits
now. Who can
take over my New customer order: We need Increased flexibility and
orders? an extra shift on Saturday. agility
Coping with complexity

Source: http://www.ipa.fraunhofer.de/industrie-40_applikationszentrum.html
 ISA MULTI-LEVEL HIERARCHY OF ACTIVITIES
Level 4
Establishing the basic plant schedule - production, material Business Planning and Logistics (ERP)
use, delivery and shipping. (Plant Production Scheduling, Operation
Determining inventory levels. Management, etc.)
Time Frame: months, weeks, days

Level 3
Work flow, recipe control to produce the desired end products.
Manufacturing Operations Mgt (MES, LIMS)
Maintaining records and optimizing the production process. (Detailed Production Scheduling, Dispatching Production,
Time Frame: days, shifts, hours, minutes, seconds
Reliability Assurance, etc. )

Level 2
Monitoring, supervisory control and automated control of the
production process.
Time Frame: minutes, seconds Batch Continuous Discrete
Level 1 Control Control Control
Sensing the production process and manipulating it.
Time Frame: minutes, seconds, milliseconds

Level 0
The actual production process.
Time Frame: minutes, seconds, milliseconds
 CPS UPGRADE OF TRADITIONAL FACTORIES

WLAN Router Traditional SPS

Rasberry PI 1
CPS as an Active
Product Memory
for the Emerging
Product
Gadgeteer with
Sensors for
Acceleration,
Shock,
Rasberry PI 2 Humidity and
CPS for Temperature
Processing
Sensor Data from
the Additional
Sensor Web

Source: Wolfgang Wahlster, DFKI, Germany

 SERVICE-ORIENTED PLANNING OF
FACTORY SYSTEM
ERP
Factory System Planning Abstract Service
Independent to Hardware MES Independent to hardware

Field Layer
Library
Services Device Control
dependent to hardware

Sensor Gate Pump Control Communication

Service Service Service Service Service

Source: Wolfgang Wahlster, DFKI, Germany

 DYNAMIC PLANNING BASED ON SERVICE
COMPOSITION IN AN SOA ARCHITECTURE
Green
Highest
Production
Priority
Minimize CO2

Abstract Process
Plug&Play Specification

Conveyor 1. Pick&Place. Pick&Place. Pick&Place. Assembly

transport insertBottom insertBoard insertCap &Place4.
(lowSpeed) (AssemblyPlace4) (AssemblyPlace4) (AssemblyPlace4) compress

Source: Wolfgang Wahlster, DFKI, Germany

 SERVICE-ORIENTED CPPS
CNC Machine
Machine 1 Machine N
M2M M2M
Active Semantic Communication Active Semantic

Communication
Product Memory Product Memory

Production Service Discovery, Matching and Execution

Workpiece Carrier 1
Active Semantic
Workpiece Carrier N
Active Semantic
Product Memory Product Memory

Production Path Planning Based on Semantic Product Memories

Emerging Product 1
Active Semantic
Emerging Product N
Active Semantic
Product Memory Product Memory

Semantic Product Memory

Top Shell Selection
Circuit-Top Shell Packaging
RES-COM Engravature
Source: Wolfgang Wahlster, DFKI, Germany Top and Bottom Shell Assembly
KIVA SYSTEM
 INDUSTRY 4.0 ENABLES SMART LOGISTICS

Small autonomous transport units (shuttle)

replace inflexible conveyor technology
Cellular transport system (CTS) follows
self-control principle
CTS uses swarm intelligence for handling
complex transport tasks
Autonomous transport management
Increase of:
changeability
scalability and flexibility
Logistics performance where it is required

Source: Fraunhofer IML, Germany

AUTOSTORE
 COLLABORATIVE ROBOTS
Human-Robot Cooperation

Dexterity Power

Flexibility Endurance

Problem Solving Precision

 Collaborative/Cloud Robots

No integration
No programming
Work intelligently
No need to be in the cage
Robot OS: extendable platform
Cloud robot
Source: Rethink Robotics
AR FOR INDUSTRIAL MAINTAINENCE

Employees wearing
Environment Google Glasses Tools
Mobile, Interactive, Context Awareness
in Work Guidance
 SOFTWARE ROLE IN INDUSTRY 4.0
Today INDUSTRY 3.0
App Store for Smart Factories

Tomorrow INDUSTRY 4.0

Source: Wolfgang Wahlster, DFKI, Germany

 PREDICTIVE MAINTENANCE

Small items Subject to wear-out

REACTIVE PREVENTIVE
Non-critical Consumable
Inconsequential Replacement
Likely to fail Failure pattern known
Redundant Reliability
Centered
Maintenance

Root Cause Failure Analysis Random failure patterns

PROACTIVE PREDICTIVE
Age Exploration (Preventive Not subject to wear out
Maintenance Optimization) Preventive maintenance
Failure Modes and Effects induced failures
Analysis (FMEA)
 BEARING FAILURE DIAGNOSIS

Feature Health
Data Extraction and Assessment &
Collection Selection Fault Diagnosis
(FFT) (SOM)

Normal Roller Inner Race Outer Race OF

RF

IF

Vibration signals for different bearing situations

 BIG DATA ANALYTIC TOOLS

Unsupervised

DATA INSIGHT
DATA ANALYSIS
DATA MANAGEMENT

Hadoop Hive Learning

Vertica SciPy Social Media
Analytics
Map Reduce Mahout Sentiment
Esper MATLAB Analysis
Predictive
Revolution R
KDB Modeling
AMPL BPO BI
Greenplum
ETL Netezza Visualization
SPSS
ECL Teradata SAS Simulation

Terabytes Petabytes Exabytes Zettabytes

 FOG COMPUTING ARCHITECTURE

IoT Application &

Resolution

Resources
Management

Cloud Service &

Resources

Network

Sensor, Terminal
Device, Gateways
 INDUSTRIAL IOT EFFECT

INDUSTRY IMPROVE ANNUAL EFFECT

AVIATION 1% FUEL $2 3 B

HEALTH 1% EFFICIENCY $4 5 B

ENERGY 1% FUEL $5 7 B

TRAIN 1% EFFICIENCY $4 5 B

OIL & GAS 1% EFFICIENCY $5 7 B

 WHAT IS DIGITAL MANUFACTURING
Fabric 80 percent of production
ation costs are determined in the
Fabric design phase. - McKinsey
ation Fabric
ation PRODUCT LIFECYCLE
After-
Fabri sale EOL
cate Assem QA Sell & service reuse
Design ble recycle
Deliver
Data
Info
01010101001
0101010101010110101010101
0
010101010101011010101010101001100101010
010

Decision
01010101010101101010101010100110101010010001111010101
1001
010101010101011010101010101001101010100100011110101010101010101010
0101
01010101010101101010101010100110101010010001111010101010101010101010001011101110
10001
0101010101010110101010101010011010101001000111101010101010101010101000101110111010101010101010
1011010
101010
Value
INDUSTRIAL INTERNET

DATA IS GATHERED ALONG DIGITAL THREAD AND AGGREGATED BY

THE INDUSTRIAL INTERNET OF SMART, CONNECTED PRODUCTS
 DIGITAL MANUFACTURING EVOVLUTION
Sales

Logistics
Sales
Logistics
Field Support
Marketing
Purchasing
Production

Support
Design

High Logistics
Field Support
Collaborative PLM

Marketing
Purchasing

Marketing Production
Digital Ubiquitous Level

Design Tablet/Apps
3D Printers
Marketing Full Digital Mockups
Purchasing

Procurement Production
Design

Purchasing 3D Solid Product

Model CAD Rendering
Production Humanoid
Design Wearable Robots

Production
3D Wireframe
Design CAD/CAM VR Drone Logistics
Visualization Stress
Analysis Collaborative 3D Design &
2D Drafting CAD Content Portals/Archiving

CNC/Robots Rapid
Programmable Prototyping
Logic Controllers Ruggedized Social Media
RFID
MRP/EDI MRP II/EDI Web Portals & ERP, CRM, EDI Tracking devices
Intranets

Digital Model & Collaborative PLM &

Design/Produce Electronic Product
Automation
CAD/CAM Definition
Collaborative Cloud Linked E-
Low Design commerce

1970 1980 1990 2000 2010 2020

VR FOR DIGITAL MANUFACTURING
VR FOR DIGITAL MANUFACTURING
DIGITAL TWIN AND PRODUCT DESIGN

Digital Twin
Avatar
 DIGITAL TWIN

Source: http://www.fastwayengineering.com/digital-twin/

Source: GE Look ahead Posted September 30, 2015 Source: http://www.gereports.com/ Source: http://www.gereports.com/
 DIGITAL MANUFACTURING

Virtual Simulation
Augmented Reality
 PERSONAL 3D PRINTERS

Source: Fabbaloo Source: RS Components Source: M3D Source: Cyrus 3D Source: MakerBot

Fast idea validation Personal affects/parts

Product prototyping customization
Self-made maintenance Self-designed artworks
components Self-made tools/utensils
 3D PRINTING EXAMPLES
Nasal Cavity
Dentistry Formula 1 Food Analysis

Source: stratasys.com Source: wohlersassociates.com Source: 3d-expo.ru Source: wohlersassociates.com

Engine Parts Hearing-aid Prosthetics Implantable Materials

Source: 3dprinting.com Source: forbes.com Source: 3dprints.com Source: 3dprints.com

 SINGLE PIECE PRODUCTION
Future Project:
Internet of Services
Using Internet portals to configure and order a personalized product

Smart Shop Make to Order Smart Factory

Innovative Retail Software Innovative Factory Software

Tailored production:
566 billion variants of custom
mixed cereals from:

Future Project:
Internet of Things
Active Product Memories Services-based manufacturing control based on CPSS
 MASS CUSTOMIZATION PERFUME

Customer can create her own perfume from

millions of possibilities via a web portal

Smart Factory can produce 36,000 Unique

Perfume Packages per day

24 hours after the Internet order has been completed

the individualized product is ready for shipment

Since the customer of an individualized product, that she has designed by

herself, does not accept long delivery times, the product should be produced
close to the customer advantage for local European production industry.
IIC CONNECTIVITY STANDARDS
 STANDARDIZATION IS THE KEY IN
INDUSTRY 4.0
Interface between Digital Cooperation
Standardized and Digital Factories IEC 62264
by Semantic
Semantic Service Description and
Description Semantic Product Memory
Language OWL OWL-S OMM++ USDL WSDL 2860
7 SOA Services SOA
Standardized by 6
OPC UA OPC-UA
5
Interoperable 4
Communication 3 IP TCP/IP
2
Standard Ethernet RJ45, WiFi
1

Electromechanic
Layer Standard HAN-Modular

Source: Wolfgang Wahlster, DFKI, Germany

 MAPPING BETWEEN IIRA AND RAMIE4.0

IIRA 3-tier functional viewpoint with the IT layers associated

with the RAMI 4.0 architecture for the IDT and AE testbeds
Source: Interoperability between IIC Architecture & Industry 4.0 Reference Architecture for Industrial Assets, Infosys, 2016.
 INDUSTRY 4.0 BASED ON PRODUCTION
KPI EFFICIENCY
Decision Time
Development Cycle Time
Produce Cycle Time
Maximize
Energy Consumption
Averaged GDP Defect Rate
Realize Ability CostInventory
Fulfillment Rate Shutdown Frequency
Facility Operation Average Down Time
Efficiency
Resources Usage Minimize
Improvement Index
Service Quality
Source: Deloitte Review 2015; commons.wikimedia.org
 NEW PARADIGMS OF BUSINESSES

Source: "The coffee is free, but now we rent the tables." - New Yorker Cartoon, by Mick Stevens
EVOLVING BUSINESS MODELS

Worlds largest consumer hardware

company only creates few apps.

Worlds largest accommodation

provider that owns no real-estate.

Worlds largest taxi company that

owns no vehicle.
 FROM PRODUCT TO SYSTEM OF SYSTEMS
System of Systems
Client Prediction
Dynamic Schedule
Connected, Product System Contact Optimization
Shift
Smart Smart Product Schedule Logistic
Product Baristas
System Companies
Product VMI

+ Coffee
Coffee
Coffee Coffee Material
Machine Machine Shop Biz
+ System
Grinder System System
Manage
System
+ Coffee
Machine
Roaster Stocking
Demand
Prediction
System
Coffee
Machine Weather
Record Activities

Source: (based on) Michael E. Porter and James E. Heppelmann, How Smart, Connected
Products Are Transforming Competition, Harvard Business Review, Nov. 2014.
 INDUSTRY INTERNET/IOT STAGES
As Industrial Internet blends into all industry,
it will ultimately lead to PULL ECONOMY.
Autonomous Pull Economy
Outcome Economy Keep Detecting Needs
End to End Automation
Pay-per-outcome Optimize Resource & Reduce
New Product & New wired Ecosystem
Service Waste
Efficiency Platform contributed
Pay-per-use Market
Application of Assets Software-based Service
Lower Cost Data Monetized
Productivity

System Characteristics include real-time

demand detection; and highly automated,
flexible production & fulfillment network.

Source: Industrial Internet of Things: Unleashing the Potential of Connected Products and Services," World Economic Forum, 2015
FUTURE TECHNOLOGICAL ENVIRONMENT
Liquefication of physical world
Big Data Analytics the new math
Blockchain is the new Internet of Value
Computational Thinking
Bio the new digital
Towards Outcome Economy and Pull Economy
Continuously evolving . . .