Industry 4.0 – Intelligence Manufactory SAP Solution
Manufacturing companies are challenged to increase productivity while producing individualized products with high quality in an environment of constantly changing and varying customer demand. Many companies recognize Industry 4.0 as strategic priority to turn these challenges into opportunities. Industry 4.0, or the Industrial Internet of Things (IIoT), is about industrial transformation using new digital technology that makes it possible to gather and analyze data across machines and business systems, enabling faster, more flexible, and more efficient processes to produce higher quality individualized goods at lower cost. Technology innovations like the IoT, edge and cloud computing, Big Data lakes, artificial intelligence, sensors, autonomous systems, and robots are drivers for the change. Creating value from Industry 4.0 requires an industry-specific approach as business goals and challenges vary by industry – and even by company. Industry 4.0 will radically change production across discrete and process industries. Production equipment will become highly autonomous. It is about industrial transformation using new digital technology that makes it possible to gather and analyze data across machines and business systems – enabling faster, more flexible, and more efficient processes to produce higher-quality, individualized goods at reduced costs.
Personalized brand promises will be integrated into customer experiences
By 2025, we believe that high tech companies will rely on platforms and subscription-based services for monetizing intellectual property to provide the efficient, reliable products and consumer-grade experiences customers expect. APPROACH FOR INDUSTRY 4.0 Creating value from Industry 4.0 requires an industry specific approach as business goals and challenges vary by industry and even by company. There is no one-size-fits-all Industry 4.0 approach. Three distinctive clusters can be identified for discrete manufacturing based on the average lot size and the number of variants per factory:
In process manufacturing, lot size becomes batch size while variants per factory translates into the number of different formulas or recipes per plant.
of products to individual needs, but require efficient use of production equipment.
*Figure: examples of Industry 4.0 scenarios that have emerged to deliver short-term business value across discrete and process industries.
Industry 4.0 Scenario Examples Across Industry Clusters
THEMES AS DRIVERS FOR INDUSTRY 4.0
SAP believes that Industry 4.0 is driven by four themes providing distinct value to the business. Intelligent products are built and configured to meet exactly what customers need. Intelligent assets are linked to all processes and are dynamically maintained. Intelligent factories use data and intelligence to run as autonomously as possible and deliver customized products at scale. Empowered people are equipped with all the tools and information they need to do their best work.
Industry 4.0 Themes and Use Case Examples
OVERVIEW OF SAP SOLUTIONS SAP has the broad solution portfolio to unlock the value of Industry 4.0, combining the power of intelligent manufacturing in factories and plants with end-to-end business process execution across the supply chain. SAP’s Industry 4.0 approach combines three business priorities to one leading strategy:
Products & Technology Supporting Industry 4.0 Themes