Industry 4.0 and smart manufacturing

Abstract

Global manufacturing is undergoing digital transformation during the ongoing Fourth Industrial Revolution. This shift towards digitalization involves the manufacturing system and allows for a shift towards a digitalized, interconnected, and integrated manufacturing process. Smart manufacturing is the application of Industry 4.0 in the manufacturing field, allowing the use of pillar technologies such as Internet of Things (IoT), Cyber Physical Systems (CPS), Big Data, 3D Printing, Simulation and Robotics to improve the flexibility, efficiency, and customization of manufacturing processes in the smart factory. This results to the rise of the smart factories, which are capable of meeting dynamic customer demands with high variability in small lot sizes while incorporating human ingenuity and automation. To support the manufacturing industry in this transitioning phase and enhance global competitiveness, policy makers in several countries have established research and technology transfer schemes. Most prominently, Germany introduced its Industrie 4.0 program, which is increasingly affecting European manufacturing policy, while the United States focuses on smart manufacturing, which is defined as fully integrated, collaborative manufacturing systems that respond in real time to changing demands and conditions in the smart factory, supply network, and customer requirements. Furthermore, CPS enabled new services that have the potential to replace traditional business models based solely on product sales. The goal of this chapter is to present an overview of Industry 4.0 and smart manufacturing business models, to analyze the key enabling technologies in smart factories as well as to present current and future research issues towards Industry 5.0.