How Virtualization, Decentralization and Network Building Change the Manufacturing Landscape: An Industry 4.0 Perspective
Authors: Malte Brettel, Niklas Friederichsen, Michael Keller, Marius Rosenberg
Abstract:
The German manufacturing industry has to withstand an increasing global competition on product quality and production costs. As labor costs are high, several industries have suffered severely under the relocation of production facilities towards aspiring countries, which have managed to close the productivity and quality gap substantially. Established manufacturing companies have recognized that customers are not willing to pay large price premiums for incremental quality improvements. As a consequence, many companies from the German manufacturing industry adjust their production focusing on customized products and fast time to market. Leveraging the advantages of novel production strategies such as Agile Manufacturing and Mass Customization, manufacturing companies transform into integrated networks, in which companies unite their core competencies. Hereby, virtualization of the process- and supply-chain ensures smooth inter-company operations providing real-time access to relevant product and production information for all participating entities. Boundaries of companies deteriorate, as autonomous systems exchange data, gained by embedded systems throughout the entire value chain. By including Cyber-Physical-Systems, advanced communication between machines is tantamount to their dialogue with humans. The increasing utilization of information and communication technology allows digital engineering of products and production processes alike. Modular simulation and modeling techniques allow decentralized units to flexibly alter products and thereby enable rapid product innovation. The present article describes the developments of Industry 4.0 within the literature and reviews the associated research streams. Hereby, we analyze eight scientific journals with regards to the following research fields: Individualized production, end-to-end engineering in a virtual process chain and production networks. We employ cluster analysis to assign sub-topics into the respective research field. To assess the practical implications, we conducted face-to-face interviews with managers from the industry as well as from the consulting business using a structured interview guideline. The results reveal reasons for the adaption and refusal of Industry 4.0 practices from a managerial point of view. Our findings contribute to the upcoming research stream of Industry 4.0 and support decision-makers to assess their need for transformation towards Industry 4.0 practices.
Keywords: Industry 4.0., Mass Customization, Production networks, Virtual Process-Chain.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1336426
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 31558References:
[1] Industrie 4.0 Working Group, "Recommendations for implementing the strategic initiative Industrie 4.0,” 2013.
[2] Statistisches Amt der Europäischen Union, "Eurostat,” 2013. (Online). Available: http://epp.eurostat.ec.europa.eu. (Accessed: 20-May-2013).
[3] Deutsches Statistisches Bundesamt, "Beschäftigte im Verarbeitenden Gewerbe,” 2012.
[4] C. Brecher et al., "Integrative Produktionstechnik für Hochlohnländer,” in in Integrative Produktionstechnik für Hochlohnländer, C. Brecher, Ed. Berlin, Heidelberg: Springer Berlin Heidelberg, 2011, pp. 17–81.
[5] J. P. Womack, D. T. Jones, and D. Roos, The Machine That Changed the World: The Story of Lean Production. 1990.
[6] T. Brosze, Kybernetisches Management wandlungsfähiger Produktionssysteme. Apprimus-Verlag, 2011, pp. 4–6.
[7] V. Vyatkin, Z. Salcic, P. S. Roop, and J. Fitzgerald, "Now That’s Smart!,” Industrial Electronics Magazine, IEEE, vol. 1, no. 4. pp. 17–29, 2007.
[8] I. Einsiedler, "Embedded Systeme für Industrie 4.0,” Product. Manag., vol. 18, pp. 26–28, 2013.
[9] D. R. Achatz, et al., "Nationale Roadmap Embedded Systems,” ZVEI-Zentralverband Elektrotechnik- und Elektronikindustrie e.V. Kompetenzzentrum Embedded Software & Systems, 2009.
[10] D. Spath et al., "Produktionsarbeit der Zukunft – Industrie 4.0,” Stuttgart, 2013.
[11] M. Broy, "Cyber-Physikal Systems: Innovation durch softwareintensive eingebettete Systeme," 2010.
[12] F. S. Fogliatto, G. J. C. da Silveira, and D. Borenstein, "The mass customization decade: An updated review of the literature,” Int. J. Prod. Econ., vol. 138, no. 1, pp. 14–25, Jul. 2012.
[13] F. Piller, Mass Customization: Ein wettbewerbsstrategisches Konzept im Informationszeitalter. Springer DE, 2006, p. 426.
[14] C. da Cunha, B. Agard, and A. Kusiak, "Selection of modules for mass customisation.,” Int. J. Prod. Res., vol. 48, no. 5, pp. 1439–1454, Mar. 2010.
[15] T. Qu, S. Bin, G. Q. Huang, and H. D. Yang, "Two-stage product platform development for mass customisation.,” Int. J. Prod. Res., vol. 49, no. 8, pp. 2197–2219, Apr. 2011.
[16] S. M. Davis, "From ‘future perfect’: Mass customizing,” Strateg. Leadersh., vol. 17, no. 2, pp. 16–21, Dec. 1989.
[17] C. Y. Baldwin and K. B. Clark, Design Rules: The Power of Modularity. Mit Press, 2000, p. 471.
[18] G. Qiao, R. F. Lu, and C. McLean, "Flexible manufacturing systems for mass customisation manufacturing,” Int. J. Mass Cust., vol. 1, no. 2, pp. 374–393, Jan. 2006.
[19] H. Zhu, F. Liu, X. Shao, and G. Zhang, "Integration of rough set and neural network ensemble to predict the configuration performance of a modular product family.,” International Journal of Production Research, vol. 48, no. 24. Taylor & Francis Ltd, pp. 7371–7393, 15-Dec-2010.
[20] H. El Haouzi, A. Thomas, and J. F. Pétin, "Contribution to reusability and modularity of manufacturing systems simulation models: Application to distributed control simulation within DFT context,” Int. J. Prod. Econ., vol. 112, no. 1, pp. 48–61, Mar. 2008.
[21] Y.-H. Lian and H. Van Landeghem, "Analysing the effects of Lean manufacturing using a value stream mapping-based simulation generator.,” Int. J. Prod. Res., vol. 45, no. 13, pp. 3037–3058, Jul. 2007.
[22] E. Abele, A. Wörn, J. Fleischer, and J. Wieser, "Mechanical module interfaces for reconfigurable machine tools,” Prod. Eng., vol. 1, no. 4, pp. 421–428, 2007.
[23] W. A. Günthner and M. ten Hompen, Internet der Dinge in der Intralogistik. Berlin, Heidelberg: Springer Berlin Heidelberg, 2010.
[24] H. S. Yan and C. G. Xue, "Decision-making in self-reconfiguration of a knowledgeable manufacturing system.,” Int. J. Prod. Res., vol. 45, no. 12, pp. 2735–2758, Jun. 2007.
[25] V. Stich, S. Kompa, and C. Meier, "Produktion am Standort Deutschland,” 2011.
[26] V. Petrovic, et al., "Additive layered manufacturing: sectors of industrial application shown through case studies.,” Int. J. Prod. Res., vol. 49, no. 4, pp. 1061–1079, Feb. 2011.
[27] E. Atzeni, L. Iuliano, P. Minetola, and A. Salmi, "Redesign and cost estimation of rapid manufactured plastic parts,” Rapid Prototyp. J., vol. 16, no. 5, pp. 308–317, 2010.
[28] A. S. Gogate and S. S. Pande, "Intelligent layout planning for rapid prototyping.,” Int. J. Prod. Res., vol. 46, no. 20, pp. 5607–5631, Oct. 2008.
[29] J. H. P. Pallari, K. W. Dalgarno, and J. Woodburn, "Mass Customization of Foot Orthoses for Rheumatoid Arthritis Using Selective Laser Sintering,” Biomedical Engineering, IEEE Transactions on, vol. 57, no. 7. pp. 1750–1756, 2010.
[30] H. W. Lin, S. V Nagalingam, S. S. Kuik, and T. Murata, "Design of a Global Decision Support System for a manufacturing SME: Towards participating in Collaborative Manufacturing,” Int. J. Prod. Econ., vol. 136, no. 1, pp. 1–12, Mar. 2012.
[31] I. Mendikoa, M. Sorli, J. I. Barbero, A. Carrillo, and A. Gorostiza, "Collaborative product design and manufacturing with inventive approaches.,” Int. J. Prod. Res., vol. 46, no. 9, pp. 2333–2344, May 2008.
[32] G. Schuh, T. Friedli, and M. A. Kurr, "Produktionsnetzwerke - Das Beispiel der Virtuellen Fabrik,” in in Kooperationsmanagement, Carl Hanser Verlag GmbH & Co. KG, 2005, pp. 158–171.
[33] C.-F. Chien and R.-T. Kuo, "Beyond make-or-buy: cross-company short-term capacity backup in semiconductor industry ecosystem,” Flex. Serv. Manuf. J., vol. 25, no. 3, pp. 310–342, Sep. 2013.
[34] D. M. Jaehne, M. Li, R. Riedel, and E. Mueller, "Configuring and operating global production networks.,” Int. J. Prod. Res., vol. 47, no. 8, pp. 2013–2030, Apr. 2009.
[35] S. Davis, S. M. Davis, and C. Meyer, Blur: the speed of change in the connected economy. 1998.
[36] M. Christopher, "The Agile Supply Chain,” Ind. Mark. Manag., vol. 29, no. 1, pp. 37–44, Jan. 2000.
[37] A. W. Scheer, Industrie 4.0- Wie sehen Produktionsprozesse im Jahr 2020 aus? IMC AG, 2013.
[38] W. Davidow and M. Malone, The Virtual Corporation. New York: Harper Collins, 1992.
[39] V. Corvello and P. Migliarese, "Virtual forms for the organization of production: A comparative analysis,” Int. J. Prod. Econ., vol. 110, no. 1–2, pp. 5–15, Oct. 2007.
[40] S. S. Msanjila and H. Afsarmanesh, "Trust analysis and assessment in virtual organization breeding environments.,” Int. J. Prod. Res., vol. 46, no. 5, pp. 1253–1295, Mar. 2008.
[41] J. Moonet al., "Innovation in knowledge-intensive industries: The double-edged sword of coopetition,” J. Bus. Res., vol. 66, no. 10, pp. 2060–2070, 2013.
[42] L. Bengtsson, K. Henriksson, R. Larsson, and J. Sparks, The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances, vol. 9. 1998, pp. 285–305.
[43] R. Moch, J. Götze, and E. Müller, "Monitoring Überbetrieblicher Produktionsnetze,” Product. Manag., no. 2, pp. 37–39, 2012.
[44] T. Brosze, T. Novoszel, and H. Wienholdt, "High Resolution Supply Chain Management Informationsschärfe und konsistente Zielsysteme ebnen den Weg zur flexiblen Produktion,” PPS Manag., no. 3, pp. 55–58, 2007.
[45] M. Grauer, S. Karadgi, W. Schäfer, and D. Metz, "Auf dem Weg zum Echtzeitunternehmen,” Product. Manag., no. 1, pp. 17–19, 2010.
[46] J. Beran, P. Fiedler, and F. Zezulka, "Virtual Automation Networks,” Industrial Electronics Magazine, IEEE, vol. 4, no. 3. pp. 20–27, 2010.
[47] D. Alford, P. Sackett, and G. Nelder, "Mass customization - an automotive perspective,” Int. J. Prod. Econ., vol. 65, pp. 99–110, 2000.
[48] W. Zhou and S. Piramuthu, "Manufacturing with item-level RFID information: From macro to micro quality control,” Int. J. Prod. Econ., vol. 135, no. 2, pp. 929–938, Feb. 2012.
[49] W. Schulzet al., "Virtuelle Produktionssysteme,” in in Integrative Produktionstechnik für Hochlohnländer, C. Brecher, Ed. Berlin, Heidelberg: Springer Berlin Heidelberg, 2011, pp. 256 – 464.
[50] F. Tao, L. Zhang, and A. Y. C. Nee, "A review of the application of grid technology in manufacturing.,” Int. J. Prod. Res., vol. 49, no. 13, pp. 4119–4155, Jul. 2011.
[51] R. E. H. Khalaf, B. Agard, and B. Penz, "Simultaneous design of a product family and its related supply chain using a Tabu Search algorithm.,” Int. J. Prod. Res., vol. 49, no. 19, pp. 5637–5656, Oct. 2011.
[52] H. A. ElMaraghy and T. AlGeddawy, "Co-evolution of products and manufacturing capabilities and application in auto-parts assembly,” Flex. Serv. Manuf. J., vol. 24, no. 2, pp. 142–170, Mar. 2012.
[53] X. Xu and Z. Wang, "State of the art: business service and its impacts on manufacturing,” J. Intell. Manuf., vol. 22, no. 5, pp. 653–662, Oct. 2011.
[54] Arbeitskreis Industrie 4.0, "Umsetzungsempfehlungen für das Zukunftsprojekt 4.0,” 2013.
[55] G. Schuh, J. Arnoscht, and S. Rudolf, "Integrated development of modular product platforms,” in Technology Management for Global Economic Growth (PICMET), 2010 Proceedings of PICMET ’10:, 2010, pp. 1–13.
[56] P. P. Rogers, D. Ojha, and R. E. White, "Conceptualising complementarities in manufacturing flexibility: a comprehensive view.,” Int. J. Prod. Res., vol. 49, no. 12, pp. 3767–3793, Jun. 2011.
[57] A. Botthof, W. Domröse, and W. Groß, "Technologische und wirtschaftliche Perspektiven Deutschlands durch die Konvergenz der elektronischen Medien,” 2011.