Leveraging the economic potential of Industry 4.0
In the various value-added areas, potentials of 10 to 70 % can be leveraged by a smart networked Industry 4.0.
Economic potential of Industry 4.0
Reduce costs by 10 to 70 %
In principle, digitization harnesses two types of economic potential. On the one hand, gaining efficiency, flexibility and transparency within one’s own value creation system. Generally, this is subsumed under Industry 4.0. We call it the Wow + Now factory. On the other hand, the design of new, often disruptive processes and business models based on data and the change in usage and user behavior, often located under Internet of Things (IoT). We call it the Wow + Now product.
At this point, we would like to focus on the efficiency potential offered by digitization.
Want more background information?
The Scientific Society for Production Technology (WGP) has compiled an overview of the economic potential of Industry 4.0. This results in potentials of 10 to 70 % for the various value-added areas that can be leveraged by a smart networked Industry 4.0. According to the study, manufacturing costs can be reduced by 10 to 30 %, complexity costs by 60 to 70 % and quality costs by 10 to 20 %. We can definitely confirm the magnitude of the potential through experience from our projects.
So there is still a lot of potential for optimization “on the road”.
As an example, WGP cites the following measures to achieve cost savings:
- Reduction of safety stocks
- Avoidance of bullwhip and burbidge effect
- Improvement OEE
- Process control loops
- Improve vertical and horizontal workforce flexibility
- Use of smart wearables
- Increase the level of automation (milk run, picking, …)
- Smart wearables
- Extension of the performance range
- Reduction of troubleshooting
- Prosumer Model
- Everything as a Service (XaaS)
- Real-time quality control loops
- Optimization ofstockspare parts
- Condition–based maintenance (process data, measurement data)
- Dynamic prioritization
Identify opportunities
With the workshop “Performance Lever 4.0”, Trebing + Himstedt has developed a special format based on best practice to uncover the concrete fields of action in your production. We come to you on site or conduct the workshop remotely. As a result, you receive a list of possible starting points that can be prioritized according to potential and feasibility of implementation for fast RoI. If you would like to learn more, please contact us directly.
Examples from practice
Complexity costs
Avoid errors through optimized worker guidance and process interlocking.
Learn more
Quality costs
Even with lot size-1, ensure the quality and send only OK products to the customer.
Learn moreReady for the next step?
Learn more about transparent production with process mining and the agile approach for the digital transformation to the smart factory.
Juliane Strehl
Senior Sales Manager