Ushering the era of Industry 4.0

Agenda

• What is Industry 4.0?• Evolution of the Revolution• Potential Economic Impact• Industrial Implications• Major Sources of Value• Pillars of Industry 4.0• Enablers and Barriers• Future of Industry 4.0

What is Industry 4.0?

By connecting machines, systems and workforces, we are creating intelligent networks along the entire value chain that can control each other autonomously. Machines

Systems

Boston Consulting Group

Evolution of the Revolution

1ST Mechanical Loom

1784

1ST Production Line

1870

1ST Programmable Logic Controller

1969

Digital Factory

Today

Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0

Potential Economic Impact

10-25 % potential improvement in labor efficiency & energy savings

Potential $360 billion in equipment maintenance

65- 90 % adoption rate in Advanced economies

Potential value of $3.7 Trillion by 2025

McKinsey Global Index , June 2015

Industrial Implications

Manufacturers

• Improved Performance

• Expansion• Profitability

Operations

• Improved Efficiency

• Better product design

• Service approach for equipment sales

Distributors

• Supplier economics visibility

• Better pricing• Efficient

Supply chain management

Major Sources Of Value

• Uninterrupted flow goods

• Minimum defects.• At Harley-Davidson ,

ventilation fans automatically adjust to give an exact coat.

Operations optimization

• Monitor equipment in real time

• Capacity utilization• Avoid breakdowns• Air China is using

sensors in exhaust systems to reduce maintenance spending by 10 to 40 percent for air carriers

Predictive maintenance

• Automatic reordering routines to estimate replenishment .

• Wurth USA has developed “iBins” that uses intelligent camera technology to monitor the fill level of a supply box to automatically reorder supplies.

Inventory optimization

Boston Consulting Group

Pillars of Industry 4.0

Industry 4.0

IoT

Analytics

Virtual Reality

Cyber Physical System

Big Data

Cyber Security

Enablers & Barriers

1. No wholesale replacement required2. Improved Telecom Infrastructure3. Improved Analytics4. Training in cyber physical systems

1. Upgradability of current machinery2. Reliable Networks & Speed3. Less Decision Making on Data 4. Skilled workforce required

Future of Industry 4.0

• Leverage Technologies• Adapt Infrastructure• Upgrade Workforce• Promote Advanced

Education

Thank You