Introduction to Industry 4.

0
and Digital Transformation

Dr.-Ing. Paryanto
082134521727

Industry 4.0 consultant, trainer &

academics

Online, 01.2022
 Pengalaman (Highlight) di bidang Industry 4.0: Dosen sampai
Speaker’s CV dengan Trainer dan Konsultan
Professional Experience (Highlight)
1. Ass. Prof. (non-ASN), Universitas Diponegoro (2018-present)
Department of Mechanical Engineering, Diponegoro University, Indonesia
2. Director of technology field: Factory planning and simulation (2015-2017)
Institute FAPS, Erlangen, Germany
3. Research associate (2012-2015)
Institute for Factory Automation and Production Systems, Erlangen, Germany
4. Trainer and consultant (2013-2017)
FAPS-TT GmbH, Nurnberg, Germany

Project Experiences (Highlight)

1. Expert/Consultant for Ministry of Industry (MoI) for the Initiative Making Indonesia
4.0 (2018-Present) and Author of INDI 4.0
2. Consultant for 120+ companies in Indonesia and Germany concerning
implementation of Industry 4.0 & digitalization (2015-present)
3. GIZ expert for implementation Industry 4.0 in education and industry (2019-2020)
4. Supervisor of EU automation project AREUS, Germany (2015-2017)
5. Project manager EffiPLAS-Green Factory Bavaria, with Audi Plannung GmbH &
Siemens AG (2013-2016)
6. Trainer for PT. TUV Rhainland Indonesia, PT. Energi Duta Utama, TUV Sud, and
Training Center Undip (2018-present)

Training Background (Highlight)

1. German language course (2011-2013) – Language Center Erlangen, Germany
2. Industrie 4.0 workshops (2012-2017) – in Germany, Spain, Denmark
3. Industry 4.0 Transformation Manager Certification – TUV Rheinland

12/01/2022 2
Dr.-Ing. Paryanto I SEMNAS FORKEPTI
 Outline:

▪ Introduction to Industry 4.0

▪ The need for a transformation
▪ Use cases of the implementation

Introduction to Industry 4.0 12/01/2022 3

 Background of Making BUMN 4.0
Indonesia’s Competitiveness Rank * : BUMN Opportunities
#7 in market size, #74 in Innovation Capability for Improvement
(from 141 countries) Visi Indonesia 2045
MPTI KBUMN 2021-2024
RJPMN 2020-2024 DX Transformation

BUMN Center of Excellence

Indonesia

Making BUMN 4.0 is a program to

support Making Indonesia 4.0.
MPTI KBUMN as a reference to
develop Digital Transformation
Platform through Center of
KBUMN Priorities are aiming to Excellence/BCE that enables

9
sharpen Indonesia’s competitiveness Learning, Research and Innovation
for bigger impact to the country. (LRI) as ecosystem for Making
*Source :
World Economic Forum BUMN 4.0.
The Global Competitiveness Report 2019 Source: Bustomi, 2021 - KeBUMN
 ASPIRASIPEMEGANG SAHAM 2021

Level INDI 4.0

Level 4 : SUDAH MENERAPKAN

Level 3 : KESIAPAN MATANG

Kementerian BUM N
Sesuai Surat Kementerian BUM N N o.S-
menargetkan seluruh BUMN
949/MBU/10/2020 Perihal Aspirasi Pemegang Level 2 : KESIAPAN SEDANG
memiliki kesiapan matang
Saham/ Pemilik Modal untuk Penyusunan
dalam penerapan Industri 4.0
Rencana Kerja dan Anggaran Perusahaan
Level 1 : KESIAPAN AWAL pada tahun 2024, dengan nilai
Tahun 2021:
INDI4.0 minimal 3.5.
“BUMN wajib melakukan asesmen
Indonesia Industry 4.0 Readiness Index Level 0 : BELUM SIAP
(INDI 4.0) untuk mengukur kesiapan
industri dalam bertransformasi menuju
industri 4.0.”
Source: Bustomi, 2021 - KeBUMN
 MAKING BUMN 4.0

1 2 3
Pemenuhan Gap Transformasi Industri 4.0
Assessment INDI 4.0 (menuju readiness min 3.5)

Manajemen & Produk & Operasi Learning

Awareness Self Verifikasi/ Orang & Transformasi
Teknologi Layanan Pabrik/Perusahaan Research
Training Assessment Validasi Budaya Organisasi Industri 4.0 Innovation

Ekosistem INDI 4.0 BUMN - BCE

Positioning BUMN 1. Roadmap Transformasi Industri 4.0
(Skor INDI 4.0) Roadmap Readiness INDI 4.0 2. Inovasi bisnis
3. Model bisnis baru

GSS

BCE – Learning Institute BCE – Research Institute

BUMN Center of Excellence
Assessment INDI 4.0 BCE – Digital BCE - Digital (Learning, Research, and
Kementerian Perindustrian Institute BCE - Institute BCE - Innovation (BIMA)
Innovation)
(Digital Leadership & (Digital
Mindset) Management Academy)
Institute Ansys
IT Maturity
Lajata Level

12 Milenial
Ansys
BUMN Score INDI 4.0 (-) BUMN score (INDI 4.0) > 3.5
BUMN score (INDI 4.0) <3.5
Source: Bustomi, 2021 - KeBUMN
 The competition is tough

Kübler-Ross Change Curve

Introduction to Industry 4.0 12/01/2022 7

 Be the first toward Industry 4.0?

First girlfriends? First Car? First Degree?

Never forgotten Its memorable Make my “mom” proud

In business, to be the first is “key for the future success”

Dr.-Ing. Paryanto I Introduction to Industry 4.0 12/01/2022 8

We change or we die

1/12/2022 9
 What is Industry 4.0?

▪ One person calls it a revolution that will fundamentally change our lives

▪ Others think they have to tack a ‘4.0’ onto the name

▪ Google offers over 19 million results for the search term ‘Industry 4.0
definition’ alone
 What is Industry 4.0?

▪ Industry 4.0 is a marketing term that can be traced back to the research union established by
the German government and a project of the same name that was part of the German
government’s high-tech strategy. It was primarily developed for marketing purposes.

▪ By contrast, the Americans call this approach ‘cyber-physical systems”, some called “Industrial
Internet of Things”
▪ Industry 4.0 is characterized as the (anticipated) fourth industrial revolution.
Source: FESTO, BMBF
▪ It will be shaped by the smart factory.
 What is Industry 4.0?

Characteristics of Industry 4.0 in contrast to Industry 3.0 are:

▪ Strong individualization of products under the conditions of a highly flexible (large series)
production,
▪ Extensive integration of customers and business partners in business and value-added
processes,

Source: FESTO, BMBF

 Industrial Revolution
Transforming industries and innovation

Industry 4.0
Industry 3.0
Cyber Physical Systems,
Industry 2.0 Automation, computers internet of things,
Industry 1.0 Mass production, and electronics networks
assembly line,
Mechanization, steam
electrical energy
power, weaving loom

1784 1870 1969 Today

Introduction to Industry 4.0 12/01/2022 13

 1st Industrial Revolution

End of 18th Century

Mechanization
Steam Power
Water Power

The rise of the factory system

First implementation: Mechanical Loom (1784)

Introduction to Industry 4.0 12/01/2022 14

 2nd Industrial Revolution

Beginning of 20th Century

Mass production
Assembly line
Electricity

It is considered to have begun with Bessemer

steel in the 1860s and culminated in mass
production and the production line
First implementation: Cincinnati Slaughterhouse (1870)

Introduction to Industry 4.0 12/01/2022 15

 3rd Industrial Revolution

Early 1970s

Computer
Automation

First programmable logic controller

Led to wide-spread use of robotics
First implementation: PLC Modicon 084 (1969)

Introduction to Industry 4.0 12/01/2022 16

 4th Industrial Revolution

NOW

Cyber Physical Systems

Internet of things
Internet of services

Evolving at an exponential rate.

The transformation of entire systems of production,
management, and governance.

Introduction to Industry 4.0 12/01/2022 17

 What is Industry 4.0?
▪ In this context, this is generally referred to as vertical and horizontal networking. Vertical
networking describes the networking of machines with company data. Horizontal networking
covers the entire value chain and connects suppliers and customers to their own production
processes.

Source: FESTO, Microsoft

Introduction to Industry 4.0 12/01/2022 18

 What is Industry 4.0?

▪ The fundamental goals of

Industry 4.0 are essentially the
same as those in the
manufacturing industry: quality;
efficiency in costs, time, and
resources; flexibility; versatility;
and resilience in volatile
markets.
▪ The objective is to make it
possible to manufacture
customized products for
customers at costs comparable
to series production.

Introduction to Industry 4.0 12/01/2022 19

 Industry 4.0 is...

• Industrie 4.0 refers to the intelligent networking of machines and processes for industry with
the help of information and communication technology
• For Industrie 4.0, it is not the computer that is the core technology, but rather the Internet.

Source: FESTO, Smart Factory

Introduction to Industry 4.0 12/01/2022 20

 Industry 4.0 - External Factors: Business is forced to drive change

Consumer Employee
Behaviour Mindset

Interconnected Speed of
Global System Change

Technology Status Quo New Markets

Changes New Players

Security Global
Risks Players Source: SAP

Introduction to Industry 4.0 12/01/2022 22

Industry 4.0 - Internal Factors: Organization culture often prevents innovation and change

Silos
Mentality

Think

Lack of Focus Low Employee

On Users Engagement
Implement

Status Quo

Source: SAP

Introduction to Industry 4.0 12/01/2022 23

 WEF Industry 4.0 Lighthouse – Two of them are in Indonesia (2019)

Coromant Electronics Industrial computers, CN

Industrial Tools, SE Industrial Equipment, CN
Steel
Products, NL
Industrial Air Conditioners, CN
Automation, DE Consumer goods, CZ
Group Steel products, KCR
Medical Devices, IR Automotive, DE

Automotive, CN
Additive Home
Manufacturing, US applications, RO
Electrical ` Automotive
Components, FR Components, CN

Zymergen Group
biotechnology, US Industrial Internet
Automotive, FR Biopharmaceutical Electronics, CN
Manufacturing, IT Steel Products, IN

Electrical
Components, IT Mining, ID
Gas Treatment, SA

Introduction to Industry 4.0 12/01/2022 24

 People

Introduction to Industry 4.0 12/01/2022 25

 Industry 4.0 impact in business

Introduction to Industry 4.0 12/01/2022 26

 Industry 4.0 aims: More efficient and better decision

Introduction to Industry 4.0 12/01/2022 27

 Reduce costs and improve OEE

Source: Aberdeen Group

Introduction to Industry 4.0 12/01/2022 28

 Others benefits from Industry 4.0

While Industry 4.0 will require initial investments, once the intelligence is built into products and
processes, the costs will plummet. Fewer quality problems lead to less material waste, lower
personnel and operating costs. The speed and ability to handle such a high mix seamlessly will
also lower costs.
Source: Bosch Rexroth, Almada-Lobo

Introduction to Industry 4.0 12/01/2022 29

 Industry 4.0 SWOT Analysis

Source: Jaehne & Kalaichelvan

Introduction to Industry 4.0 12/01/2022 30

 Vertical and horizontal integration in a smart factory

Introduction to Industry 4.0 12/01/2022 31

 Example applications

Source: BCG

Introduction to Industry 4.0 12/01/2022 32

 Industry 4.0 in action example: delivery example

Introduction to Industry 4.0 12/01/2022 33

 Key characteristics of a smart factory

▪ Connected
▪ Optimized
▪ Proactive
▪ Transparent
▪ Agile

Introduction to Industry 4.0 12/01/2022 34

 Shorter delivery
times Volatile markets

24/7
service

Shorter product
lifecycle More individualized
customer wishes

1 year

2 years

3 years

Source: Hadid, 2021

Introduction to Industry 4.0 12/01/2022 35

 The approach: business is the driver, not technology

Approach digital holistically with a clear

vision and develop a phased roadmap

1 Business
transformation Approach the opportunity “value
backwards” – rather than
technology forward

Drive transformation
from the top,
3 Industry
4.0
communicate success
stories Organization Form comprehensive and
transformation scalable technology stack
Get ahead of the
Build and lead a focused
capability gap and build
the culture to sustain it 2 Technology
transformation
ecosystem of technology
Partners SOURCE: McKinsey

Introduction to Industry 4.0 12/01/2022 36

 INDUSTRY 4.0 INTERNET OF
INTERNET OF
DATA
THINGS Smart
Smart
Mobility
Buildings

Smart Smart
Grid Areas

Smart
Operation

Smart Social
Logistics Web

INTERNET OF INTERNET OF
SERVICES
Business
Web PEOPLE
Introduction to Industry 4.0 12/01/2022 37
 Stages in Industry 4.0

Source: RWTH Aachen:

Introduction to Industry 4.0 12/01/2022 38

Thank you

Dr.-Ing. Paryanto
082134521727

Industry 4.0 consultant, trainer &

academics

Online, 01.2022