[Translated by ChatGPT from AIoT加速智慧製造 – 從Netflix 看工業4.0 ]
From cloud computing and the Internet of Things (IoT) to artificial intelligence, digital technologies are driving transformations across various industries, and the manufacturing sector stands to benefit the most from digital transformation. Asia-Pacific, as a global manufacturing hub, produces everything from semiconductors and iPhones to Tesla battery modules, Adidas performance wear, and Rolls-Royce parts. Recently, the region faces trends of diverse, low-volume, short-chain production, labor shortages due to declining birth rates, and trade war uncertainties. From large multinational EMS factories like Foxconn to small water hardware factories hidden in the fields of central Taiwan, manufacturers are either implementing Industry 4.0 or on their way there.
Are you at 4.0, 3.5, or 2.9?
To understand the future, we must look at the past. Before discussing Industry 4.0, let’s review what 1.0, 2.0, and 3.0 are. In ancient times, production relied on brute force using animals and humans. With Watt’s invention of the steam engine, we entered 1.0 with machinery powered by steam. The invention of electricity led to 2.0 with mass production assembly lines. The invention of computers brought us to 3.0 with automation. So, what is 4.0? Is it virtual-physical integration, diverse low-volume production? Customer-oriented flexible production? What does that look like?
Here’s my take… 1.0 feels like the era of black-and-white silent films, with things moving but very slowly; 2.0 feels like westerns, straightforward and simple, just comparing manpower and firepower; 3.0 is like Hollywood blockbusters, competing with budgets and cast; while 4.0 is more like Netflix, with original content, timeless classics like Friends, and refreshing documentaries from around the world, offering diverse content that transcends eras and borders, allowing you to watch whatever you want, whenever you want.
Using Netflix to explain Industry 4.0 may seem a bit unconventional, but I want to emphasize a trend that Netflix has mastered and is essential for moving towards Industry 4.0 – adaptability with limited burden.
Adaptability – There’s No Going Back
The remarkable thing is that 1.0, 2.0, and 3.0 were supported by revolutionary inventions. But what drives the shift from 3.0 to 4.0? Have humans developed anything extraordinary in the past thirty years? Internet? Smartphones? Apps? Aren’t these just evolutions of computers and communications? The Algorithms and Operating Systems I studied twenty years ago are still available in bookstores.
The point is not how these products and technologies swept the world, but how people’s habits changed after using them.
We’ve become picky. Our vision is worse than our parents’, yet we believe we can distinguish between Tiffany blue and aquamarine with the naked eye, insisting that the former showcases our personality and taste. We don’t worry about spots on our retinas, but we obsess over bright spots on our phone screens.
We’ve become impatient. After hearing a friend rave about KiKi instant noodles, we immediately search online, find various flavors and limited editions, and order at least one of each. An ad pops up suggesting fresh cat food and a personalized feeding station, and with a swipe, we’ve ordered a set, aiming for free shipping and 24-hour delivery, fearing starvation for ourselves and our cats.
We’ve become lazy. After buying a new massage chair, we ignore the manual explaining different modes and just sit down to try it out while browsing for an app to play ambient music.
Adaptability has made manufacturing challenging. Urgent orders are frequent, and order cancellations are common. Trial run schedules are shortened, making material preparation difficult: suppliers report SSD shortages and advise stocking up, but Brexit delays may affect demand, and last month’s inventory reports were ample. This batch of phone back covers has many scratches, leading to customer complaints. The boss, under pressure, can’t wait a month for the factory manager to solve the problem and demands immediate improvement. Meanwhile, wages are rising, workers don’t return after the New Year, senior workers can’t handle the workload, and young people prefer browsing their phones to reading manuals.
These are the pressures in manufacturing. As people’s needs diversify and personalize, production must become flexible. However, adjustments can’t rely solely on manual commands because there aren’t enough people, and their mental capacity is limited. Thus, technology must assist.
In the past thirty years, there haven’t been groundbreaking inventions, but there are now IoT devices with intelligence, and AI enables these devices to act and learn. Through the cloud, we can accelerate development, deployment, management, and integration of the upstream and downstream supply chain. Combining cloud and edge computing, we bring a continuous stream of innovation to smart manufacturing, facing the trend of adaptable generations.
Limited Burden – Service is Key
Is Netflix cheap? It depends on your perspective – around NT$400-500 per month, NT$6000 per year, NT$60000 over ten years, which could buy several TVs. However, they offer a vast collection of series. When you’re tired of House of Cards, you can watch Bodyguard, or switch to Midnight Diner if you prefer a slower pace, then turn to Kingdom of the Rising Sun. They continually release new content tailored to your preferences, ensuring you keep watching and paying each month willingly. Plus, they offer family plans, splitting the cost among four accounts for TV, phone, and tablet use, costing just over NT$100 per person per month – cheaper than a cup of Starbucks – fostering relationships through shared viewing experiences, which is priceless. For many, enjoying continuous new services at a limited cost is worthwhile.
The world of Industry 4.0 is equally fascinating – there’s the content: Cyber-Physical Systems (CPS) sounds like science fiction, Made-to-Order production seems sharp, and Green Production shows love for the Earth, right?
There’s the cast – the makers of the cars you drive, the drinks you consume, the phones you use, all global 500 giants. The automation giants of Industry 3.0, like Siemens, ABB, Rockwell, PTC, Schneider, and IT leaders, are all performing on this stage.
Although there’s content, a star cast, and a script, the manufacturing industry seems to struggle to do Industry 4.0 as easily as Netflix viewers enjoy on-demand services with limited burden.
Everyone is sighing – it seems easier to perform it.
Even transitioning from 3.0 to 3.1 feels like an endless burden. A company sets up an IoT department, collaborates with schools, and initiates multiple smart manufacturing POCs, testing the latest technologies like digital twins, AOI, and blockchain. But they’re hesitant to implement these in real production lines, fearing factory resistance and getting stuck in the mud of endless projects with little to show for the effort. They thought they could start with a big name and it would lead the way, but they found that the star dragged in a whole team of scriptwriters, cameramen, and stagehands, eating up the budget and making it hard to create original productions, not to mention licensing it to other channels.
Can Industry 4.0 be service-oriented, reducing the burden on companies?
Maybe, but it requires rethinking the content and carefully selecting the cast.
The content must return to the core competency, not just for the sake of doing something.
The cast must come from within, starting with internal integration, linking factory operations and IT, then bringing in external resources. Outsiders must be adaptable and willing to transfer their expertise to the company, helping cultivate talent for sustainable operations.
Now that Generative AI is making its way into the world, it’s transforming the path to Industry 4.0 by placing humans in the loop. Let’s see how it unfolds!