Operations Management and Industry 4.0

Kimani G.

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Operations Management and Industry 4.0

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Themes

Operations management, operations industry, industry 4 0, organisations, development, mass production, production, machine-to-machine communication, industrial revolution, globalisation, computerised systems, automation, technology, IT Information Technology, principles, company management, IoT Internet of Things, IoS Internet of Services

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Abstract

Ever since the Industrial Revolution and the development of mass production, organisations had to develop ways of managing the processes and factors of production. Operations management involves the management of all activities involved in the transformation of a range of inputs, such as finance, labour, skills, information, energy, material and customer requirements, into outputs for consumers (Brown, Lamming, Bessant and Jones, 2010). As the world changes and new innovations are made, operations management has been steadily evolving and adapting. This evolution allows organisations to remain competitive as well as sustainable.

Industry 4.0
Principles of Industry 4.0
Company Strategy

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[...] The control systems should be able to collect and analyse data in real time. This ensures that the real-time information can be used to solve any problems that arise for example if a malfunction arises or there is need to shift production to another machine (Nagy, 2018). The fourth principle is decentralisation. In Industry 4.0, the cyber-physical systems should be able to operate autonomously and make decisions on their own. This is because with a high mix, central control becomes more complex. [...]

[...] In cases of Machine-to-machine communication, reliability and stability is of utmost importance, meaning expensive systems and codes of standards. Principles of Industry 4.0 There are six principles of industry 4.0. These principles are important in enabling companies to not only identify the components of Industry 4.0, but also instituting them within their organisation. The first principle is interoperability (interconnection). Industry 4.0 is based on the ability of machines, people, and devices to constantly connect and communicate with each other through the Internet of Things and the Internet of Services (Nagy, 2018). [...]

[...] Company Strategy The main objective of this strategy is to introduce Industry 4.0 into the company. Over the past few years, the company has implemented some Robotic Cells, automated machining systems and ERP software. However, in order to remain competitive in the increasing globalised industry where consumers' needs are constantly changing and technological innovations are developed at a very fast rate, the company should institute industry 4.0 (Erol, Schumacher, and Sihn, 2016). Considering the changing face of the manufacturing industry, the company should understand that the main idea behind Industry 4.0 is that the intelligent machines and products, driven by the Internet, real-time data and software, should be structured as autonomous agents within a widespread and flexible network of value creation. [...]

[...] The second advantage is that Industry 4.0 shortens the innovation cycles. Due to the intelligent networking of industrial processes and products, it is easier to understand what is exactly needed to improve product and process design leading to innovation. The third advantage is that industry 4.0 can better meet individual customer requirements and improve the customer's experience. The fourth advantage is that industry 4.0 can greatly reduce the costs faced by the manufacturer. Costs will decrease due to less material waste as a result of fewer quality problems, and lower personnel and operating costs. [...]

[...] Manufacturers can get a variety of data that include how consumers are reacting to a product and what they would like to be changed in the product and thus have a better understanding of how the consumer relates to the product and the company (Hermann, Pentek, and Otto, 2016). Conclusion Due to globalisation and improved technologies, companies are forced to evolve and seek new ways of doing business. Industry 4.0 is changing how companies view technology in relation to products and process. While it has several demerits, the advantages offered by Industry 4.0 are numerous. [...]

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