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About this book

Industrie 4.0 and the Internet of Things have been positioned on the international stage as important initiatives of a promising future: Who is dealing in data from the digital factory? Germany has its “Plattform Industrie 4.0”, China “Made in China 2025” and the USA the “Industrial Internet Consortium”. Who is leading the fourth industrial revolution? The digitalization of industry is changing the global economy and society. Technology is supplying the opportunities to do so. Humans must decide just how far artificial intelligence should go, and what machines should learn – to create new and improved work instead of fewer jobs.
In addition to Ulrich Sendler and eight German industry and research experts, the CEO of Xinhuanet in Beijing has also contributed to this book.

Table of Contents


The Basics


Chapter 1. Introduction

Some speak of industrial revolution and mean the transition from an agricultural economy to an industrial society. Others speak of a fourth industrial revolution and mean a new stage of technological progress. Others still think that it is nonsense to speak of revolution, and that industry is simply continuing to develop in an evolutionary manner. A brief look at the history of industrial revolution thus seems fitting.
Germany as an industrial location is playing a central role in the Industrie 4.0 initiative (Initiative Industrie 4.0). Will a research initiative grow into something very practical for Germany? And just what does Industrie 4.0 have to do with the major issue of digitalization, which is now monopolizing all media? Just because the name “Industrie 4.0” unfortunately smacks of it, does not mean that the initiative necessarily only benefits industry. Yet those of us who wish to investigate the topic naturally want to know who will actually profit. This introductory chapter seeks to illuminate these questions.
Ulrich Sendler

Chapter 2. The Basics

Even five years after the official start of the initiative, most people are not familiar with the term “Industrie 4.0”. Those who have addressed the topic even have trouble producing a relatively plausible explanation for it. Thus, this chapter deals with the basics: the official definition of Industrie 4.0, its position in the larger context of digitalization, the terms “smart product” and “smart product development,” as well as with the platform and the ecological system. Finally, the initiative’s explosive force on society will be analyzed.
Ulrich Sendler

Chapter 3. Important Technologies

Industrie 4.0 is based on the technical possibility of connecting products of all sorts to the internet that are equipped with digital components and are software-controlled, and of offering corresponding services via the internet. This technical basis alone would not suffice to trigger a fourth industrial revolution. There are a few technologies that have been available for a longer time but have received a completely new significance in connection with the Internet of Things and Services. And regarding the utilization of these technologies, Industrie 4.0 is a very real vision.
Ulrich Sendler

Chapter 4. The Initiative in Germany

A period just short of five years is not a lot of time for an initiative such as Industrie 4.0, on which several industrial enterprises, research institutes, associations and the federal government of Germany are cooperating. The time constraint becomes even more pronounced if you consider that all of these participants are representatives of companies, organizations and institutes which must often deal with heavy competition on a day-to-day basis. Just the collaboration alone between the three industrial associations BITKOM, VDMA and ZVEI represents the first cooperative activity ever of its kind. That makes the results achieved in this short span of time even more astounding. At the same time, however, things are moving much too slowly for an initiative of such significance and in an environment of such internet speed. This chapter will describe the development of the initiative and look at the collaboration involved, the structure of the platform and its central fields of work, its turnover to the federal government and initial concrete results, including international activity.
Ulrich Sendler

Chapter 5. The USA

The history of industrialization is not one that progressed in a harmonic way internationally. The USA’s pursuit of European trailblazers quickly led to them assuming the top spot as an economic power. Yet just a few decades later, the next technological driver, the computer, brought with it the beginnings of a separation of global industry into hardware and software. US industry was capable of setting the tone for subsequent digitalization. Now, it looks as though, through digitalization, a new decision is on the horizon for the manufacturing and systems industry: Who will dominate the industrial data business? Will the Industrial Internet Consortium help? Now, the USA’s temporary vanquishing of positions in the hardware industry could prove to be a weakness. For that reason, too, a re-industrialization has been set into motion. But the long concentration on hardware in Germany could also backfire in contrast to a US industry that is gaining strength and leaning on its leading position in the digital realm.
Ulrich Sendler

Chapter 6. China’s Comeback

Since the end of the 1970s, China has increasingly become an industrial country. With “Made in China 2025,” the goal has been expressed to become the Number 1 industrial nation. Although doubts about it are justified, a look at individual sectors will show that this goal is not out of reach. A German/Chinese collaboration offers the greatest chances for both sides.
Ulrich Sendler

Chapter 7. “Made in China 2025” and “Industrie 4.0”—In Motion Together

On October 29, 2015, China’s national news agency Xinhua received official permission to publish the communique of the fifth committee conference of the 13th Central Committee of the Communist Party of China. Via Xinhua’s online platform Xinhuanet (www.​new.​cn), a media portal with the most influential power and range in China and beyond, this communique increasingly caught the attention of the international public. Simultaneously, the paper was consulted as a programmatic document in the analysis, explanation and evaluation of Chinese development.
One of the most important demands in the communique states: To achieve the development goals in the period of the 13th five-year plan, China must approach all difficult development challenges with enthusiasm and to base its superiority in its own development on a more stable and deeply-rooted foundation. The document also asserts that the concepts of an innovative, coordinated and green development, characterized by an opening to the outside and mutual profiting, are to be achieved. The Chinese government further announced it would begin working on forming a new industrial system. Its targets are to more rapidly develop a strong domestic manufacturing industry, to realize the initiative “Made in China 2025” and to bolster the industrial foundations of the country. In future, a series of strategic industries must be developed, driving the cultivation of the modern service sector.
Tian Shubin, Pan Zhi

Articles from the Research Sector


Chapter 8. Efficient Factory 4.0 Darmstadt—Industrie 4.0 Implementation for Midsize Industry

Industrie 4.0 has become a significant factor for success to companies in the manufacturing industry. Model factories as demonstrators are contributing greatly to its increasing prevalence. It is precisely here that the Efficient Factory 4.0 of the Technical University of Darmstadt begins its approach, demonstrating feasible solutions for the introduction of Industrie 4.0 into everyday industrial practice. It is thus a valuable aid in increasing the competitiveness of the manufacturing industry.
Reiner Anderl, Oleg Anokhin, Alexander Arndt

Chapter 9. The Industrial Internet

Engineering Processes and IT Solutions
Engineering is currently undergoing a massive transformation: smart systems and technologies, cybertronic products, big data and cloud computing within the context of the Internet of Things and Services, as well as Industrie 4.0. The media is falling over itself with reports on the new, fourth, industrial revolution. However, the American approach of an “Industrial Internet” describes this (r)evolution far better than the limited and very German-influenced term “Industrie 4.0.” The industrial internet takes the entire product lifecycle into consideration and addresses consumer and investment goods, as well as services. This article illuminates this future-oriented topic, offering well-founded looks the networked engineering world of tomorrow, its construction methods and processes, as well as its IT solutions.
Martin Eigner

Chapter 10. Industrie 4.0—Digital Redesign of Product Creation and Production in Berlin as an Industrial Location

Challenges and Solutions for Digital Transformation and Innovation
At the end of 2015, approximately 449 research and implementation projects in Germany were dedicated to the topic of Industrie 4.0. The great challenges, on the one hand, are to transform existing partial solutions, new findings and results into comprehensive and standardized application, while, on the other hand, identifying “white spots” and diligently continuing to research them. This chapter presents innovative Industrie 4.0 projects for the real and digital factory and product management from the Production Technology Center (PTZ) in Berlin, and offers a research map for the allocation of its own activities. A stage model is used to illustrate how the implementation and operationalization of information management required in the future can be mastered. The future-oriented concept of the information factory serves to demonstrate how, with the aid of the digital twin and smart data, gains in the efficiency and effectivity of product creation and production can be achieved.
Rainer Stark, Thomas Damerau, Kai Lindow

Articles from Industry


Chapter 11. The Internet of Things, Services and People

ABB (Asea Brown Boveri) is an energy and automation engineering corporation based in Zurich. In 1988, it resulted from the fusion of the Swedish ASEA company and the Swiss firm BBC. ABB employs approximately 140,000 persons worldwide in 100 countries, and comprises more than 330 consolidated subsidiaries. Its range includes products and solutions for power generation, transfer and distribution, systems and services for power companies, motors, drives and industrial automation as well as systems for the automation and optimization of industrial processes. ABB is a typical investment goods manufacturer with products, systems and services for the manufacturing and process industry. ABB was represented by the head of the research center in Ladenburg, Dr. Christian Zeidler, in the German working group Industrie 4.0 by acatech and the research union, whose results were submitted to the German government in April of 2013 in the form of “implementation recommendations.” Soon after the foundation of the Industrial Internet Consortium, ABB became a member of its committee. Both of these initiatives represent the most significant externally visible efforts for enterprises with regard to the next stage of industrial development, and are thus treated at the executive level. In several other initiatives in various countries and regions of the world, ABB is also active in cooperation with the respective local organizations.
In the year 2014, the corporation formulated the slogan “Internet of Things, Services and People (IoTSP)” for its position within the context of its next-level strategy. It is intended to express that, in the further development of industry, not only the utilization of the internet for products and services is important, but also that especially in this step, people are the focus. According to ABB, the Internet of Things is no more or no less than a means to an end. That end is the optimization, flexibilization and increase in productivity of industrial processes and the use of advanced services for the benefit of people.
Christopher Ganz

Chapter 12. Utilizing Opportunities for the Industrial Location

In East-Westphalia-Lippe, a cluster of industrial enterprises and research institutes was formed to make it´s OWL, which researches technologies that are required for intelligent products and production processes and implements those technologies in joint projects in actual situations. These projects and the management of it’s OWL are supported by the Federal Republic of Germany and the state of North Rhine Westphalia. In this chapter, the cluster is presented, as well as important contributions from its work and especially practical projects of its members which best illustrate the opportunities of the network for all involved.
Roman Dumitrescu

Chapter 13. The IoT Paves the Way for a Networked Economy

In the past two decades, the internet has connected billions of people, significantly more than half of humanity, with one another, placing their communication on a completely new foundation. Now, “things” are being added. They are being equipped with capabilities allowing them to hear, see, feel and “think,” which is described in words as “intelligent” and “smart.” And they are being networked. According to the estimates of Gartner and McKinsey, by the year 2020, 20 to 25 million devices will be online via their own internet addresses. And, following communication between people, this will also fundamentally change value creation.
Manufacturers can equip their products with sensors, actuators, miniature cameras and other digital components at ever decreasing costs. Software embedded in the products then allows data to be generated, collected and analyzed while those devices are in use. The Internet of Things will make sure that not only an individual product becomes a data supplier in this way, but that products will be able to communicate with each other and with people using their data in a virtually limitless manner.
Tanja Rückert

Chapter 14. The Digital Enterprise Takes Shape

When I wrote my chapter in the first book about Industrie 4.0 about three years ago, the entire situation in this area was characterized by vagueness as to the definition of Industrie 4.0. You could feel a great sense of anxiety and the impression that we were talking about something very significant, perhaps affecting the very existence of some companies, of branches of industry, and even entire national economies, such as in Germany, with a value creation structure characterized by small and midsize enterprises and oriented toward production. In the meanwhile, the fog has lifted a bit, and we think we can make out some sharper outlines. This chapter will attempt to further clarify these outlines here and there, as well as share some impressions I have collected in the area of digitalization in global business. At the 2016 Hanover Trade Fair, it was easy to get the impression that the general anxiety on this topic had diminished considerably. Yet, there were hardly any signs that great progress had been made in defining content. There was, however, to some extent, a conspicuously flexible use of the term ‘Industrie 4.0,’ overheard when some suppliers described their automation products and systems. If one wanted to make an interim summary about Industrie 4.0 at this point, one would have to admit that, even though not much useful content has been defined, awareness of the quickly progressing digitalization in industry and the resulting expected changes and necessary reactive measures have increased substantially. That fact alone may justify the efforts previously taken.
For pragmatic reasons, because a sufficient definition for Industrie 4.0 had been lacking, in my first chapter of the first book on Industrie 4.0, I concentrated on our own digitalization strategy, which we at Siemens summarize using the term ‘digital enterprise,’ and established its proximity to Industrie 4.0. However, our digitalization strategy began as early as in 2001, with the acquisition of Orsi, a small Italian enterprise which at the time had been focused on the development of MES systems, among other things. digitalization accelerated significantly starting in 2007 with the acquisition of UGS. In this chapter, I will report on the progress we have made in the meantime in the implementation of our digitalization strategy. I will let readers decide what falls under the category of Industrie 4.0 and what does not. I will also relate the observations and developments regarding significant production procedures that particularly rely on digitalization and data consistency.
Anton S. Huber

Chapter 15. Industrial Connectivity And Industrial Analytics, Core Components of the Factory of the Future

The following essay provides an overview of the topic of Industrie 4.0 and intelligent technical systems in the realm of production. It starts with the motivation to achieve and employ Industrie 4.0—the challenges facing manufacturing enterprises. Based on that discussion, the major aspects of Industrie 4.0 and intelligent technical systems will be described. The essay closes with concrete approaches for implementation, as well as a few practical examples, spanning infrastructure for digitalization to consistent use of generated data for the optimization of production.
Jan Stefan Michels
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