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Keywords: Flexible, Reconfigurable, Local, Manufacturing Networks, Industrie 4.0, Capability Matching, Agent, Digital Twin, Sustainability, Certificates, Industrial Intellectual Property, Resilience, On-demand, High-mix, Low-volume
This July 2024, ARC published a report that tracks the progress that has been made implementing the key features of Industrie 4.0, both in the process and discrete industries. The three steps in realizing the vision are 1) flexible, reconfigurable plant; 2) global manufacturing networks of flexible, configurable plants; 3) the integration of the previous step with digital, certified, encrypted product definitions. The result enables to make any product, any time in any location, with genuine product certificates.
The report provides business strategies and technical background. It provides concrete recommendations, and a detailed list of requirements, implementation strategies and associated benefits by manufacturing domain. The report is available on demand. The summary is:
Development, Implementation, and Vertical Integration of Flexible and Reconfigurable Manufacturing Systems
The vision of Industrie 4.0 has been realized step by step. Modular production and standardized modular automation were both key first steps that have now been created and successfully applied. Modular automation has turned digital twins into asset agents capable of exposing capabilities and executing requests for services using those capabilities.
To transition to high-mix, low volume production has become possible using the approach to flow control interpreting product definitions of individual products and executing them by a combination of capability matching, logistics schedulers, executors interacting with digital twins of assets, and (if required) AMRs. This enables a high degree of on-demand and customized products at an industrial scale. Industrial-scale applications are limited to isolated cases in electronics and automotive, but this could change quickly.
Steps in Realizing Industrie 4.0 and Associated Potential Benefits
Development of Inter-Company Value Chains and Networks through Horizontal Integration
Combined, those solutions also open the possibility of an integrated network of flexible and reconfigurable plants. Comparable plants across regions enable plant selection to produce locally and reduce footprint. More diverse plants could collaborate and produce components and intermediates, which are integrated and processed to end products in a coordinated value chain operating in a make-to-order mode. A scenario where buyers and consumers directly source a product from the network becomes feasible in this configuration.
In cross-company value chains, collaboration among partners would best be implemented in standardized, secure data spaces. In addition, a standardized way of expressing capabilities, plus a specification-controlled manner of defining an operation is required to produce homogeneous product quality across the network. Prototype implementations could be realized today using standards defined by the value chain partners. International standardization would be an additional benefit and reduce effort of implementation.
Digital End-to-End Engineering Across the Entire Value Chain from the Product to Manufacturing Systems
Finally, when innovation centers could create product definitions executable on standard equipment capabilities, using specification-controlled operations, a major decrease in time-to-production and time-to-market could be realized. If in addition these product definitions would be encrypted and certified, this would protect intellectual property of the innovator and enable quality and labels guaranteeing genuine products.
Recommendations
The time has come to consider and plan an overhaul of production facilities and make a step-change in efficiency, resilience, flexibility and performance combined with improved service levels and client satisfaction. Technically, nothing stands in the way of implementing Industrie 4.0 flexible manufacturing in fast-moving products. A business case is required as always, but ARC believes it is likely these will lead to many positive decisions. ARC believes the approach to digitalize and encrypt product definition could enable important time savings and simplify product quality and genuine product certificates.
Although Industrie 4.0 may not be a concept largely adopted in the Americas it is consistent with Smart Manufacturing and Manufacturing Renaissance, in its goals and philosophy. The flexible, reconfigurable manufacturing approach originating in Industrie 4.0 is fully translatable and usable and create significant benefits in the American context. ARC recommends watching the developments in this space closely in multi-plant and multi-partner applications of integrated flexible manufacturing networks.