{"id":9937,"date":"2021-12-15T10:36:47","date_gmt":"2021-12-15T18:36:47","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9937"},"modified":"2025-04-16T11:49:27","modified_gmt":"2025-04-16T18:49:27","slug":"what-is-industry-40-and-how-has-it-changed-manufacturing","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/12\/what-is-industry-40-and-how-has-it-changed-manufacturing","title":{"rendered":"What is Industry 4.0 and How Has It Changed Manufacturing?"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9938&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Industry 4.0 isn\u2019t just a buzzword. The fourth industrial revolution is officially here. We\u2019re truly in a time of significant change when it comes to how we manufacture products. The digitization of manufacturing processes have transformed production speed, cost, safety, capabilities and all-around efficiency.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The need for connectedness and access to the latest insights across an entire organization has led to a manufacturing revolution focused on interconnectivity, automation, machine learning and acquiring real-time data. While every manufacturing organization is different, they all have the common goal of working faster and smarter, and Industry 4.0 technologies are helping them innovate new ways to do that every day.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So what is Industry 4.0 all about, how is it different from existing manufacturing processes, and who can benefit from adopting these technologies? Let\u2019s start with a definition.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is Industry 4.0?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A simple Industry 4.0 definition is that it\u2019s a widespread shift toward utilizing cyber-physical systems to optimize how we\u2019re able to manufacture products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first industrial revolution occurred around the turn of the 19th century. Until that time, manufacturing primarily relied on manual labor performed by people and work animals. This first revolution added more power to processes by introducing steam-powered engines and other water-driven machine tools.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Around a century later, factories saw a vast uptick in productivity with the onset of electricity and the use of steel. Having electricity in factories allowed for more efficiency and made machinery more mobile. It also allowed for more operating hours. It was during this second industrial revolution that concepts like mass production and assembly lines came to be.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the late 1950s, a third wave emerged. This phase saw more and more use of electricity to power and optimize production capabilities, which evolved into the use of computers, which then evolved into incorporating <a href=\"https:\/\/www.qad.com\/blog\/2022\/01\/manufacturing-automation-what-does-it-mean-for-manufacturers\">automation in manufacturing<\/a>. This huge leap saw manufacturers putting less emphasis on analog and mechanical technology and more on digital technology and automation software.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, the Industry 4.0 manufacturing revolution has built off the 3.0 wave, taking the digital technology focus of recent decades to a new level. Industry 4.0 is a more comprehensive approach to manufacturing that bridges the physical and digital. These technology advancements better connect business owners to their operations, employees to other departments and solutions to problems for a level of efficiency never seen before.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Industry 4.0 Technologies are Changing Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While there are many technologies paving new paths in the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/digital-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">digital manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> space, the following are some of the most impactful.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IoT<\/b><span style=\"font-weight: 400;\"> stands for Internet of Things, which refers to the connection between physical objects and the internet.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IIoT<\/b><span style=\"font-weight: 400;\"> (Industrial Internet of Things) pertains to the connection between people, data, and machines related to manufacturing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Smart factories<\/b><span style=\"font-weight: 400;\"> are considered factories that utilize Industry 4.0 technologies and solutions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>ERP<\/b><span style=\"font-weight: 400;\"> (enterprise resource planning) solutions are business process management tools intended to streamline operations.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>AI &amp; Machine Learning<\/b><span style=\"font-weight: 400;\"> is the concept of artificial intelligence involving programming a computer to be able to perform tasks that historically have required some level of human intelligence.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cyber-physical systems<\/b><span style=\"font-weight: 400;\"> refers to an Industry 4.0 manufacturing environment that includes real-time data collection, analysis and visibility across every aspect of the operation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cloud computing<\/b><span style=\"font-weight: 400;\"> uses interconnected remote, internet-hosted servers to store, manage and process information.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Industries Utilizing Industry 4.0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The utilization of Industry 4.0 technology, solutions, and approaches spans many diverse industries. It\u2019s primarily growing rapidly within these fields.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Industrial Manufacturing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the case of <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/industrial\" rel=\"noopener\"><span style=\"font-weight: 400;\">industrial manufacturing<\/span><\/a><span style=\"font-weight: 400;\">, we see these advancements being used across every business area. For example, every machine within a factory is attached to an IoT device that monitors its production efficiency, usage, uptime and more. That data can be used with a machine-learning algorithm to determine which machines are causing production bottlenecks, allowing manufacturers to address machine issues preventively.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Pharmaceuticals &amp; Medical Devices<\/span><\/h3>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/life-sciences\" rel=\"noopener\"><span style=\"font-weight: 400;\">Life sciences<\/span><\/a><span style=\"font-weight: 400;\"> fields are also changing. Now, medical devices like glucose monitoring systems, EKG monitors and automated insulin pumps can be portable. That means patients can live their lives while keeping an eye on their health from anywhere instead of having to make frequent hospital trips.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Food &amp; Beverage<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A rise in food regulation and customer demand trending toward healthier, more sustainable food have those in the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/food-beverage\" rel=\"noopener\"><span style=\"font-weight: 400;\">Food &amp; Beverage<\/span><\/a><span style=\"font-weight: 400;\"> industry turning to advanced technology. Robotic process automation has greatly improved quality control, IIoT temperature sensors increase supply chain visibility to ensure food and raw materials are kept at the appropriate temperature, and predictive analytics solutions help cut emissions, energy use and wasted resources.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Technology &amp; Electronics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Electronics assembly is one of the largest industries in the world. The broader <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/high-tech\" rel=\"noopener\"><span style=\"font-weight: 400;\">Technology &amp; Electronics<\/span><\/a><span style=\"font-weight: 400;\"> industry is under pressure to constantly innovate and drive sales. AI systems can optimize production schedules and machine and line performance optimization systems that use sensor data to improve machine performance and product quality.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Consumer Products<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Industry 4.0 is helping consumer products developers be more competitive. Products that are highly customized and detailed aren\u2019t easy to assemble. Their advanced capabilities require advanced IT. Now, those in <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/consumer-products\" rel=\"noopener\"><span style=\"font-weight: 400;\">Consumer Products<\/span><\/a><span style=\"font-weight: 400;\"> can deliver higher customer centricity to make their company stand apart and address change requests rapidly.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Packaging<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When it comes to the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/packaging\" rel=\"noopener\"><span style=\"font-weight: 400;\">packaging<\/span><\/a><span style=\"font-weight: 400;\"> industry, today\u2019s technology can improve traceability, uptime, and quality, while also reducing costs and total cost of ownership. A lot of this depends on the seamless exchange of data between devices and systems. This data is crucial in evaluating how lines are running.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The principles of Industry 4.0 are relevant to the entire manufacturing industry, with solutions like <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/manufacturing-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">manufacturing ERP<\/span><\/a><span style=\"font-weight: 400;\"> systems transforming the way companies are able to operate. With these advancements in the ability to significantly streamline operations, we\u2019re bound to see profound innovation in these industries over the next decade.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Benefits of Industry 4.0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Industry 4.0 tools span the full product life cycle and supply chain. Design, sales inventory, scheduling, quality, engineering, customer service \u2014 there\u2019s nothing it doesn&#8217;t touch. Primary benefits include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced productivity:<\/b><span style=\"font-weight: 400;\"> Automation and optimization allow manufacturers to stay competitive against disruptors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improved working conditions:<\/b><span style=\"font-weight: 400;\"> Personnel can be better leveraged, collaboration is increased across departments and a younger workforce will apply.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Greater agility:<\/b><span style=\"font-weight: 400;\"> Real-time data, predictive analytics, internet-connected machinery, and automation can help you work more proactively and adapt to change more rapidly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better quality:<\/b><span style=\"font-weight: 400;\"> A variety of Industry 4.0 tools can increase quality control and provide higher-quality and more consistent products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>A real-time supply chain:<\/b><span style=\"font-weight: 400;\"> With real-time data, you can make smarter and faster decisions about your business.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Who Can Benefit From Industry 4.0?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">How can you know if incorporating Industry 4.0 technologies is right for your business? Ask yourself:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want better visibility across your supply chain?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want to be able to identify issues before they get out of hand?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want more timely analytics?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want to improve product quality?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want real-time data that can help you make more strategic decisions?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are you competing with tech-savvy peers?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want to boost efficiency, productivity and revenue?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are you trying to attract a younger workforce?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does your organization need better communication and collaboration?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you want to digitize your information and make it easier to access?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are all signs that you would benefit from such solutions. One 4.0 tool that can make a big impact quickly is the use of a manufacturing ERP system. An enterprise resource planning system can get your inventory, planning, financial, customer relationships, supply chain management, and production functions in shape, connecting every area of your operation so you\u2019re not having to make high-stake decisions in a vacuum.\u00a0<\/span><\/p>\n<p><b>Learn more about QAD\u2019s <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\" rel=\"noopener\"><b>adaptive ERP and supply chain solutions<\/b><\/a><b> built in the cloud to help manufacturers be more adaptive and competitive in this quickly changing market.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9938&#8243; img_size=&#8221;full&#8221;][vc_column_text]Industry 4.0 isn\u2019t just a buzzword. The fourth industrial revolution is officially here. We\u2019re truly in a time of significant change when it comes to how we manufacture products. The digitization of manufacturing processes have transformed production speed, cost, safety, capabilities and all-around efficiency.\u00a0\u00a0 The need for connectedness and access to the latest [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":9938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199],"tags":[546,6,61,1942,112,107,1939,286,1940,94,380,24,26,1044,1941,92],"class_list":["post-9937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-trends","tag-ai","tag-automation","tag-cloud-computing","tag-cyber-physical-systems","tag-erp","tag-iiot","tag-industrial-revolution","tag-industry-4-0","tag-interconnectivity","tag-iot","tag-machine-learning","tag-manufacturing","tag-manufacturing-erp","tag-real-time-data","tag-smart-factories","tag-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Industry 4.0 and How Has It Changed Manufacturing? 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