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Literature Review of Industry 4.0

Category: Corporate Finance Paper Type: Dissertation & Thesis Writing Reference: IEEE Words: 2400

Today, in the modern world manufacturing industries are rapidly adopting the automation systems in their manufacturing plants to improve the production process and to reduce quality issues generated by human errors [1]. In the smart factories, machines are interconnected at different production levels as a collaborative community. Use of big data and cyber-physical systems are encouraging the industries to completely change the traditional concepts of production in the big manufacturing plants [2]. Literature review basically covers the industry 4.0 concept and modern technological innovations in the manufacturing, packaging and sales process [3]

The main emphasis of the research project is on use of sensors in the industry 4.0 and customer relationship management, therefore, literature review contains all the information related to these areas with details [4]. While data is collected through reviewing the primary and secondary sources of information as websites, books, and journal articles. According to the research, manufacturing and packaging trends are getting transformation as a result of service innovation, and changes in the environment of big data, such transformation generate positive impact on productivity and operational efficiency if the transformation in the big data environment is positive and supportive for innovation [5].

In accordance with the research conducted by the Zhou, et al, in 2015, industry 4.0 is basically the 4th stage of the industrial revolution. Industry 4.0 term was firstly presented by the German government in an article later it was again used in 2013 at the industrial fair (held in Germany) [6]. Industry 4.0 term represents the age of a time when industries started using the modern technology and information systems to bring improvement in their operations as in the previous industrial revolutions [7]. The steam engine was presented in the industries to completely change the working style of various industries similarly in industry 4.0 internet, software, and modern technology was presented [8]. Moreover, sensors used in the industries enable technological automation in the industry. through having problems in the sensors all the automation system can result in a failed system. in order, words sensors are the basis for the functionality of automation systems [9]
Research conducted by WAN in 2016 concluded that to meet the customization demands in the specified time duration, mobile services, and cloud computing technology support the industries to meet their goals through encouraging the development of intelligent manufacturing environment [10]. However, not only manufacturing but in fact big data and cloud computing are also going to change the fortune of the packaging systems and processes to help the companies meet their customers' demands in the market easily and efficiently [11]. The article written by the WAN, J. et al, (2016) is directly concerned with the PCMS and packaging process. The research was conducted on a company working for candy packaging. The research concluded that with the help of candies simulations and PCMS Systems Company was able to pack candies with different styles and colors to the relevant boxes [6].     

Research conducted by the Wang and his research fellows (in 2018), elaborate that we can interconnect the client terminals and shop floor entities through the use of network and clouding computing systems. Dynamic configuration of the floor shop entities and self- organizing properties of the intelligent negotiation mechanism work significantly during interaction and collect plenty of data for operations [12].

 In fact, cloud computing and big data environment are fundamental support for the sales process and the manufacturing process. in the modern world e-commerce websites and mobile applications are working all over the globe that is the fine example of cloud computing system and use of modern technology [13] In sales order processing, websites and automatically working machines (as vending machines) are working on different principles but both are directly concerned with cloud computing and modern technology for operations [14]

 In 2018, Plaksij elaborated that now customer relationship management is highly supported by the use of cloud systems. In accordance with him, Salesforce.com known as cloud supplier for customer relationship management is leading the market of CRM in terms of value. social media is a big source of customer relationship management [15]. CRM with the help of big databases and clouding system provides solutions for the problems that are currently drawing influence in the industries [16]

 However, on the other hand, companies are also learning new strategies that are adopted by the successful companies in order to improve their relationship with their customers as without having clear understanding towards the CRM [17]. It is really difficult for the management of the company to develop the strategies, products and do operations of the companies in the desired manners of customers [12]. The big data and information technology assist the management of the organizations to collect information about the desires, interest, and profiling of their targeted markets. current market [18]

In an article, Clark elaborates that cloud-based customer relationship management basically refers to the CRM with the use of modern software that is being hosted in the clouds. internet works as a channel to reach that cloud-based software [8]. cloud-based CRM software provides hassle free-installations and seamless access to the information to all required databases. Research explains that industry 4.0. A research study conducted by the Brettel in 2014 presents the findings that cyber-physical systems enable the interaction between the machines and human being. In industry 4.0 CPs is being in use to share all the important data with the whole supply chain for the purpose of full exploitations [19]

The Research elaborates that in the successful automobiles manufacturing company's reorganization of the workforce and the installation of the intelligent automation system (that work usually through the use of sensors) are required in order to produce a more customized and customer-oriented highly quality products [20]. While research findings also summarized that industry 4.0 can be only useful if all the machines can communicate through the use of CPS and if RFID is used in the systems to track the commodity flows. Somehow, RFID tags are imposing challenges related to modern technology (Strandhagen, et al., 2017). In accordance with the research findings, there are 5 major CPS architecture levels elaborate in the mentioned below themes [21]

1.      Connection on Industry 4.0

CPS 5 levels or stages of the structure are also known as 5C structures and architectures. A research study conducted by Lee in 2015, illustrates the smart connection stage of CPS. According to his findings in the first stage of developing cyber-physical system applications, accurate and highly reliable data is collected from the machines that can be directly measured through the use of sensors (used in the manufacturing and processing plants of the enterprise). In this stage MES, CMM, and EPR can be used for accurate results, while MTConnet as a protocol works for the smart connection development [22]

2.      Conversion Industry 4.0

In accordance with the literature review, conversion of data to information is a second phase in the CPS that is mainly related to inferring the information from the data for the further use. Different type of software is available in the market to assist the CPS in this stage. Research studies elaborate that machines get information as data to work according to the required way [23]

3.      Cyber  Industry 4.0

According to the research article, in the CPS architecture hub for central information refers to the 3rd stage of CPS. In the cyber stage, all information related to the machines functioning is pushed in the network of machines. in the cyber stage, all previously collected information and comparative analysis of the performance help out the experts working on the CPS system in the company to have a comprehensive understanding about the future possible behavior and performance of all the machines connected with the network [24]

4.      Cognition Industry 4.0

Implementation of CPS in cognition stage provides information regarding the monitored system. In accordance with the research studies, proper information arranged in a logical manner is must require for taking the right decisions. The information collected from the two major sources the status of the machine (individual machines status) and the comparative analysis information of the machines have significant value in supporting the experts to take the right decision regarding the automation systems of the machines. In the cognition stage of CPS implementation, proper info-graphics are considered an important point that has relation with the overall possibility of success in the result of CPS implementation [25]

5.      Configure Industry 4.0

In the CPS implementation, the final stage is related to the configuration. In this stage, feedback is linked with the cyberspace and physical space [26]. Feedback regulates the whole system as the supervisory controller to ensure the self-adaptive and self-configured machines in the CPS system. Configure stage is also related to the corrective stage as in this level feedback provide support in preventive decisions and the whole stage work as the RCS (resilience control system) [27]

In another research study, it is summarized that network machines and sensors enable the high volumes of data generations that is currently known as big data in the industry 4.0. While economic potential can be increased in the present age by turning the factories into industry 4.0 by the use of sensors, and network machines, CPS and automation systems [28]

 References of Industry 4.0

[1]

P. Kotler, Principles of Marketing, Pearson Education India, 2008, p. 557.

[2]

M. Brettel, N. Friederichsen, M. Keller and M. Rosenberg, "How Virtualization, Decentralization and Network Building Change the Manufacturing Landscape: An Industry 4.0 Perspective," International Journal of Information and Communication Engineering, vol. 8, no. 1, pp. 37-45, 2014.

[3]

E. Appleton and D. Williams, Industrial Robot Applications, Springer Science & Business Media, 2012, p. 240.

[4]

K. L. Croxton, S. J. García-Dastugue, D. M. Lambert and D. S. Rogers, "The Supply Chain Management," The International Journal of Logistics Management, vol. 12, no. 2, pp. 13-37, 2001.

[5]

D. Georgakopoulos, P. P. Jayaraman, M. Fazia, M. Villari and R. Ranjan, "Internet of Things and Edge Cloud Computing Roadmap for Manufacturing," IEEE Cloud Computing, vol. 3, no. 4, pp. 66-73, 2016.

[6]

T. Lins, M. J. d. Silva and R. A. R. Oliveira, "Software-Defined Networking for Industry 4.0," AICT 2016 : The Twelfth Advanced International Conference on Telecommunications, pp. 34-40, 2016.

[7]

X. Luo, "Delivering Business Value of Information Technology: the Moderating Role of Alignment," AMCIS 2004 proceeding, vol. 118, pp. 1-6, 2004.

[8]

L. Clark, "An overview of cloud customer relationship management," 2016. [Online]. Available: https://www.computerweekly.com/feature/An-overview-of-cloud-customer-relationship-management. [Accessed 05 12 2018].

[9]

P. Marques, A. Radwan, S. Mumtaz, D. Noguet, J. Rodriguez and M. Gundlach, Cognitive Radio Oriented Wireless Networks: 12th International Conference, CROWNCOM 2017, Lisbon, Portugal, September 20-21, 2017, Proceedings, Springer, 2018, p. 348.

[10]

J. Lee, H.-A. Kao and S. Yang, "Service innovation and smart analytics for Industry 4.0 and big data environment," Procedia CIRP, vol. 16, pp. 3-8, 2014.

[11]

J. Moyne and J. Iskandar, "Big Data Analytics for Smart Manufacturing: CaseStudies in Semiconductor Manufacturing," Processes, vol. 5, no. 3, p. 39, 2017.

[12]

K. Zhou, T. Liu and L. Zhou, "Industry 4.0: Towards Future Industrial Opportunities and Challenges," Fuzzy Systems and Knowledge Discovery (FSKD), 2015 12th International Conference, pp. 2147-2152, 2015.

[13]

Ö. F. Görçün, "The Rise of Smart Factories in the Fourth Industrial Revolution and Its Impacts on the Textile Industry," International Journal of Materials, Mechanics and Manufacturing, vol. 6, no. 2, pp. 136-142, 2018.

[14]

C. Diedrich and T. Bangemann, Profibus PA: Instrumentation Technology for the Process Industry, Oldenbourg Industrieverlag, 2007, p. 341.

[15]

M. E. Porter and J. E. Heppelmann, "How Smart, Connected Products Are Transforming Companies," 10 2015. [Online]. Available: https://hbr.org/2015/10/how-smart-connected-products-are-transforming-companies. [Accessed 04 12 2018].

[16]

A. Gilchrist, Industry 4.0: The Industrial Internet of Things, Apress, 2016, p. 250.

[17]

W. REINARTZ, M. KRAFFT and W. D. HOYER, "The Customer Relationship Management Process: Its Measurement and Impact on Performance," Journal of Marketing Research, vol. 41, no. 3, pp. 293-305, 2004.

[18]

R. Griffin, Fundamentals of Management, Cengage Learning, 2015, p. 544.

[19]

P. J. Mosterman and J. Zander, "Industry 4.0 as a Cyber-Physical System study," Software & Systems Modeling, vol. 15, no. 1, pp. 17-29, 2016.

[20]

F. Rajola, Customer Relationship Management: Organizational and Technological Perspectives, Springer Science & Business Media, 2013, p. 172.

[21]

T. Stock and G. Seliger, "Opportunities of Sustainable Manufacturing in Industry 4.0," Procedia CIRP, vol. 40, pp. 536-541, 2016.

[22]

M. RuBmann, M. Lorenz, P. Gerbert, M. Waldner, J. Justus, P. Engel and M. Harnisch, "Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries," Boston Consulting Group, vol. 9, 2015.

[23]

H. F. Tipton and M. Krause, Information Security Management Handbook, Fifth Edition, CRC Press, 2003, p. 2036.

[24]

S. Y. Nof, Springer Handbook of Automation, Springer Science & Business Media, 2009, p. 1812.

[25]

A. Sanders, C. Elangeswaran and J. Wulfsberg, "Industry 4.0 Implies Lean Manufacturing: Research Activities in Industry 4.0 Function as Enablers for Lean Manufacturing," Journal of Industrial Engineering and Management, vol. 9, no. 3, pp. 811-834, 2016.

[26]

S. Knox, A. Payne, L. Ryals, S. Maklan and J. Peppard, Customer Relationship Management, Routledge, 2007, p. 302.

[27]

L. Jha, Customer Relationship Management: A Strategic Approach, Global India Publications,, 2008, p. 264.

[28]

M. Skilton and F. Hovsepian, The 4th Industrial Revolution: Responding to the Impact of Artificial Intelligence on Business, Springer, 2017, p. 322.

[29]

J. WAN, M. YI, D. LI, C. ZHANG, S. WANG and K. ZHOU, "Mobile Services for Customization Manufacturing Systems: An Example of Industry 4.0," IEEE Access, vol. 4, pp. 8986-8977, 2016.

[30]

J. W. Strandhagen, E. Alfnes, J. O. Strandhagen and L. R. Vallandingham, "The fit of Industry 4.0 applications in manufacturing logistics – a multiple case study," Advances in Manufacturing, vol. 5, no. 4, pp. 344-358, 2017.

[31]

J. Lee, B. Bagheri and H.-A. Kao, "A Cyber-Physical Systems architecture for Industry4.0-based manufacturing systems," Manufacturing Letters, vol. 3, pp. 18-23, 2015.

[32]

S. Wang, J. Wan, M. Imran, D. Li and C. Zhang, "Cloud-based smart manufacturing for personalized candy packing application," The Journal of Supercomputing, vol. 74, no. 9, pp. 4339-4357, 2018.

[33]

Z. Plaksij, "Why Cloud-based CRM Suits the Needs of Growing Businesses," 19 09 2018. [Online]. Available: https://www.superoffice.com/blog/cloud-based-crm-for-small-business/. [Accessed 05 12 2018].

[34]

T. Zimmer, "What Are the Advantages of Information Technology in Business?," 15 03 2018. [Online]. Available: http://smallbusiness.chron.com/advantages-information-technology-business-774.html. [Accessed 06 05 2018].

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