The fourth industrial revolution Industry 4.0 represents a new paradigm shift from “centralized” to “decentralized” industry relies on cyber-physical based automation where sensors send data directly to the cloud and services such as monitoring, control and optimization automatically subscribe to necessary data in real-time. In the coming years, these technologies will be seen as a viable alternative to current manufacturing processes. According to a recent report by Markets and Markets, smart factory technology will have global market size of 74.80 Billion USD by 2022. The talk provides a comprehensive introduction to Industry 4.0 and Smart Factory. Technical challenges and social implications of smart factory will be discussed. The applicability of these emerging technologies in developing economies is highlighted in this talk as well.

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Industry 4.0 and Smart Factory
Alaa Khamis, PhD, SMIEEE
Head of Advanced Development Division at Sypron Solutions
http://www.alaakhamis.org/
Maker Faire Cairo 2017 © Dr. Alaa Khamis

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OUTLINE
What is Industry 4.0?
Why Industry 4.0?
Challenges

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WHAT IS INDUSTRY 4.0?

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WHAT IS INDUSTRY 4.0?
Source: Lev Grossman, “2045: The Year Man Becomes Immortal,” TIME Magazine, February, 2011.
• Human Scientific Progress

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WHAT IS INDUSTRY 4.0?
Agriculture revolution
Industrial revolution Light bulb Moon landing World Wide Web
Human Genome
Sequenced
8,000years
120 years 90 years 22 years
9years
• The accelerating pace of change
Source: Lev Grossman, “2045: The Year Man Becomes Immortal,” TIME Magazine, February, 2011.

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Time to reach 100 Million customers
Telephone
75 Years
Web
7 Years
Facebook
4 Years
Instagram
2 Years
Pokemon Go
1 Month
WHAT IS INDUSTRY 4.0?
• The accelerating pace of change

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WHAT IS INDUSTRY 4.0?

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WHAT IS INDUSTRY 4.0?
Mechanization
Electrification
Automation

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Cost-efficiently
Quickly
Flexibly
WHAT IS INDUSTRY 4.0?
Shorter lead
time/product
life cycle
Larger product
variance
For both large volume and
small quantities

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WHAT IS INDUSTRY 4.0?
Digitalization Automation Connectivity Analytics
Source: B. Roland, "INDUSTRY 4.0: The new industrial revolution How Europe will succeed," Think Act, Tech. Report, 2014.

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WHAT IS INDUSTRY 4.0?
Emerging Cyber Physical
System-based Automation
Classical 5-Layer Automation
Architecture
ERP
MES
SCADA
PLC
Sensors-Actuators
Factory Operation
Management Level
Process
Control Level
Cell Level
Station Level
Machine Level

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• Global Market Size Forecast in 2019 (USD Billion)
WHAT IS INDUSTRY 4.0?
Smart Factory technology will have global market size of 74.80
Billion USD by 2022. [Markets & Markets]
293.57
115
62.98
29.53
15.25
5.3
0
50
100
150
200
250
300
IoT Big data Smart Factory Advanced Analytics Service Robotics Smart Machines

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WHY INDUSTRY 4.0?

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WHY INDUSTRY 4.0?
Better Quality
Increased
Productivity
Sharing
Economy
Improved
Decision
Making
Mass
Customization
Faster
Production
Industry 4.0

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WHY INDUSTRY 4.0?
Increased flexibility in production and manufacturing on demand
• Mass Customization

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WHY INDUSTRY 4.0?
Virtual modeling of manufacturing process
• Faster Production
Digital designs
Speed up the manufacturing
process :
Data-driven supply chains
120% in time needed to
deliver orders
70% in time to get
products to market

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WHY INDUSTRY 4.0?
• Better Quality
Siemens Smart factor for custom Programmable Logic Controls (PLCs)
500
12
0
100
200
300
400
500
600
1989 2015
Number of defects per million units
99.99% reliability rate
Top 100 European manufacturers could save
an estimated €160 billion in the costs of scrapping
or reworking defective products if they could
eliminate all defects.

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WHY INDUSTRY 4.0?
• Increased Productivity
Lights out/Dark factories work 24/7

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WHY INDUSTRY 4.0?
• Increased Productivity
Predictive maintenance
avoids machine failures on the
factory floor
50% decreased downtime
20% increased production
Predictive maintenance will
help companies save $630
Billion by 2025 [McKinsey]

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WHY INDUSTRY 4.0?
• Sharing Economy

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WHY INDUSTRY 4.0?
• Improved Decision Making
With access to factory and cross-market data, decision makers
can predict, response, and adapt
to factory needs and market trends

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CHALLENGES

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CHALLENGES
General reluctance to change by stakeholders
Lack of adequate skill-sets
Unemployment
Communication reliability and QoS
Cyber security
Maturity of machine intelligence
Handling big data
Technical Challenges
Social Impact

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CHALLENGES
• Big Data

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CHALLENGES
• Big Data
RADAR: ~10-100 KB per second
SONAR: ~10-100KB per second
Camera: ~20-40 MB per second
LIDAR: ~10-70 MB per second
GPS: ~50 KB per second
Autonomous Vehicle
4 TB
Per Day

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CHALLENGES
• Social Impact

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CHALLENGES
• Social Impact
A study out of Oxford
University in 2014 found that
in the near future artificially
intelligent technology
could take over nearly
half of all U.S. jobs.
We can expect a wave of structural unemployment to spring
from the technology in the medium term.

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CHALLENGES
• Social Impact
Better in
Dull
Dangerous
Dirt
Dumb
Robots find
applications in
“4D tasks”

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CHALLENGES
• Social Impact

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CHALLENGES
• Social Impact
Machine Human
Creative
Lower initial cost
and higher running
cost
Faster
More precise
Able to work in harsh environments
Higher initial cost and lower running
cost

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Thank you for your attention!
Questions?
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