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plant management | Industry 4.0


Figure 1: A successful Industry 4.0 strategy for the plastics processing industry requires a clear understanding of the complete value chain beyond production


Key Questions for an Industry 4.0 strategy for the Plastics Processing Industry Plastics Packaging Value Chain


Current status


• Only 8% of plastics processors think about an I4.0 strategy


• Current focus of discussion is on production optimisation by automation of existing production processes


Source: Arthur D Little


capabilities at the intersection. These capabilities are key elements of differentiation versus the competition,” says Krause. “The Industry 4.0 target picture has to be embedded


into a clear understanding of corporate purpose, which ideally reflects the needs of many potential customers. The development of a compelling corporate purpose requires an orientation towards stakeholder value, rather than shareholder value only. Such an approach has the highest potential to generate sustainable financial performance, which remains a core compo- nent and pre-requisite of entrepreneurial success.” More specifically, Krause says that an Industry 4.0


roadmap can be developed with a clear understanding of the technologies, an evaluation of application areas and an adjustment of the organisation (outlined in the schematic below). “However, most importantly it is necessary to develop the workforce’s capabilities along the journey,” he says.


Looking to the future Krause believes companies will make significant progress in implementing Industry 4.0 concepts over the next 3-5 years and there will be rapid introduction of new business models as well. However, it will probably take 10 years before any specific industry will be fundamen- tally transformed. And he says it is important to under-


Key questions to ask • Where is our future field of play?


• What are our future products & services?


• What are our future clients & their jobs to be done?


• How do we provide value to our clients?


stand that there will be no defined end-point as the customer will always want a more individual, more high quality product instantly and at a lower cost. “This is the only aspect which will never change or stop,” he says. Many of the technologies and components of Industry 4.0 will also continue to mature. “Sensors will become even smaller and more flexible, for example, through long life batteries,” he concludes. “They will become more robust, allowing placement in more hostile environments. Low power Wide Area Networks will be rolled out in the near future that will enable users to track and trace, and achieve much higher energy efficiency. 5G mobile networks will be deployed within the next five years that will enable real time data processing. In addition, machines and robots will become increasingly autono- mous and self-optimising in the long run. “We will see blockchain technologies integrated into


the processes of compounders and across the plastics industry, especially in supply and logistics processes, that will result in dramatically reduced logistics costs through smart contracts that are automatically executed to order raw material, components, as well as automating quality control and payments. Machine learning will evolve towards real artificial intelligence and result in self-optimising cyber-physical systems. However, human creativity will still be required to develop ideas for new products and services based on combinations of new technologies, innovative business models as well as in roles with direct customer and business partner interaction requiring creativity and empathy,” Krause says.


Promoting the opportunity One of the biggest promoters of the Industry 4.0 manufacturing concept is the German machinery association VDMA, which sees it as a huge opportunity for its members and their customers. “Industry 4.0 is the fusion of hardware and software to improve management in production. And it as a field where we can gain business,” says Thorsten Kühmann, Managing Director of the plastics and rubber division of the association. However, while Industry 4.0 concepts have been


under development for several years, Kühmann says yet more work is required to ensure effective implementa-


SOURCE: ARTHUR D LITTLE


38


COMPOUNDING WORLD | May 2017


www.compoundingworld.com


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