What is Industry 4.0
The term Industry 4.0 was first coined in 2011. The four key components of Industry 4.0 are Cyber-Physical Systems, Internet of Things (IoT), Internet of Services (IoS), and Smart Factory. The integration of computational and physical processes, that is enabled by embedded systems monitoring and controlling the real processes interacting with computation processes, are the Cyber-Physical Systems. The IoT is enabled by Machine-to-machine communications (M2M) among things – smart devices. The IoS are the value-added services offered by vendors powered by the internet. The Smart Factory is one in which the CPS coordinates both the machines and people in a factory via the IoT. Companies considering implementation of Industry 4.0 consider six design principles that include: interoperability, virtualization, decentralization, real-time capability, service orientation, and modularity. (“Design Principles for Industrie 4.0 Scenarios: A Literature Review” by Mario Hermann, Mario, Tobias Pentek and Boris Otto is a great research review that digs into and helps define the concept.)
Yesterday we shared a translation of an article about the efforts Haier is taking to implement Industry 4.0 in its factories in China in an initiative it is calling the “Transparent Factory.” Read more here.
Supply Chain 4.0
When you extend Industry 4.0 to the supply or value chain, then we arrive at the concept of Supply Chain 4.0. Some have also called it Value Chain 4.0 or Supply Chain Optimization 4.0. Regardless, it is a rather newer concept having only begun to be expressed in the past year or so. While Supply Chain 4.0 hasn’t been codified in the same manner as Industry 4.0, it includes a number of features that are in part related. These can include collaboration, customer-specific solutions, open innovation, Big Data, visibility and predictability, flexibility, and services orientation as expressed by Oliver Rörig, Director of Operations at Dr. Wieselhuber & Partner GmbH (you can read more about that here).
What is Supply Chain Service 4.0?
Supply Chain Service 4.0 (SCS4.0) is the digital transformation that integrates supply chain and value-added services with information and communication technology. It is the strategy to enable digital communication and collaboration between supply chain vendors and the demand side of hardware developers and innovators. The goal is to bridge the gap between the speed of the evolution of Industry 4.0 and the requirements of rapid innovation realization. Supply Chain Service 4.0 connects the dots virtually between hardware developers and the supply chain for the entire life-cycle of a product from ideation to manufacturing, and retail to delighted customers.
In his keynote for CPX at Computex 2016 in Taipei (keynote begins at around 1:25:20), HWTrek CEO Lucas Wang noted that SCS4.0, from the point of view of the supply chain, is characterized by five factors:
- Real-time Collaboration
- Merging Outside Innovation
- Open Internal Solutions
- Application Visibility
- Internet-enabled (or Web-enabled)
Real-time Collaboration extends beyond the communications and working together in real-time with customers for whom you might be building a smart, connected device, for example. This also includes collaboration with suppliers and vendors downstream with whom you partner virtually in a single platform.
Merging Outside Innovation is the concept through which supply chain vendors can leverage and, in partnership, can take advantage of the innovative ideas originating from hardware startups and small-medium business (SMBs). HWTrek’s hardware development community ecosystem platform serves to connect these innovative creators with supply chain experts.
Open Internal Solutions are the open development and prototyping platforms and solutions such that enables the development of ecosystem around innovation.
Application Visibility enables the visibility of solutions, coming from supply chain vendors, to specific applications, markets, and sectors that require them. This is how you can demonstrate your capabilities among all the noise of the internet. This is another area that the HWTrek platform enables.
Internet-enabled (or Web-enabled) is transformation that brings the entire supply chain online to speed development, building, and taking product to market. This is an idea that we’ve been expressing since spring 2016 at HWTrek as “Rewiring the Supply Chain Ecosystem.”
We’ll introduce how you can go about creating a solution on the HWTrek platform to enhance your Application Visibility tomorrow on the blog. In the meantime, check out some the Experts and Solutions on HWTrek that are contributing to the emergence of 4.0 in Industry, Supply Chain, and Supply Chain Service.
Green Point is a Jabil company created to bring customized engineering solutions for customers. Together with Jabil, they offer a full range of manufacturing services, supply chain management, and product life-cycle management. You can check out their customized solutions for ID/Mechanical Design and Silicone Rubber Application by Injection on HWTrek.
Wistron is one of the largest ICT product suppliers in the world with over 60,000 employees worldwide. Wistron Value Creation Center was established to work with innovative hardware entrepreneurs and to take them from Prototype to Production and beyond. They have full range of manufacturing services and top-tier expertise.
T&F Manufacturing is engaged in high-end product manufacturing focusing on smart wearables. Their factory provides automated assembly, mold making, injection molding, leather manufacturing, and SMT as well as OEM/ODM services. Check out their line of smart watches here.
HLH Prototypes offers CNC machined parts and prototyping for one-offs or low-to-mid volume production runs. It is fast, low cost, and flexible.
Imec performs world-leading research in nanoelectronics providing solutions for ICT, healthcare and energy sectors. They have a wide range of services for CMOS scaling, Intuitive Internet of Things, Internet of Health and Internet of Power devices.
AQS is a US based EMS company. They are very flexible and offer support any business without MOQ rules. They offer PCBA, full box assembly, prototyping, RMA/Rework, DFM, ID/EE/ME support, and other services. AQS is also one of Google Ara’s development partners and began engineering and production support during the early Ara prototype phase. They can provide support to Ara developers including design, assembly, and logistics.
Sanpower Sourcing Group (SSG) is a multi-national conglomerate that consists of five subsidiary sector-groups: finance and Investment, retail and trading, information services, medical and health care, and real estate. They can provide design and R&D, manufacturing and supply chain sourcing, worldwide retail and other services.