In the Autumn budget for 2017, the Chancellor has focused on Britain’s poor productivity growth compared to other European countries. UK investment in automation is lower and we use fewer robots than most industrialised competitors. In 1994, the economist Paul Krugman said Productivity isn’t everything, but in the long run it is almost everything.

In their Industry 4.0 white paper, Mitsubishi Electric Europe considers how important the fourth industrial revolution will be in delivering productivity benefits for industry, consumers and the economy. These include lower costs, faster production, better resource efficiency, higher quality control and greater product and component traceability.

Two key productivity enablers

The two key enabling technologies that will allow I4.0 to deliver these benefits are the Industrial Internet of Things (IIoT) and cyber-physical systems. IIoT enables multiple devices from single sensors to complex machine tools to exchange data using Internet and Ethernet based technologies.

Cyber-physical systems are integrations of computation, networking and physical processes. In other words, the convergence of business systems with the physical plant control systems and machines. It is also about measuring actual performance against an “ideal model” or norm. with a range of new initiatives. Ensuring sufficient performance is also a key requirement which early adopters of I4.0 need to consider.

I4.0 and its supporting technologies are not without challenges, however. Issues such as the need for better security and permitting systems from multiple vendors to work together are being tackled.

Manufacturers need to consider the current levels of manufacturing plant automation and network architecture that exists within the plant today. Adopting the principles of I4.0 and smart manufacturing requires high levels of automation and network infrastructure so the road to digitalisation can require high levels of investment.

Governments and industry around the world have recognised the potential of I4.0 (also known by a variety of other names worldwide) to change the competitive landscape. New organisations have been set up to direct and support development of I4.0 and substantial private and public-sector investment is being made.

The white paper sets out to explain the background, consider the challenges and offer solutions to the adoption of I4.0 related technologies and solutions.