Industry 4.0 Brief for Alberta
Intro
Ask almost anyone involved in manufacturing in North America about Industry 4.0 and you will either get a blank stare or a very basic explanation that fits the definition of Industry 3.0 only. A few may venture into relevant topics like the “Internet of Things” or “Big Data”. The facts surrounding Industry 4.0’s implementation in North America are indicative of some of the more complex issues of regulatory environments, state and provincial autonomies verses collaboration, ongoing industry protectionist behaviors and a lack of government drive to truly guide manufacturing in the direction it needs to go. This is largely due to the vast historical global dominance of US manufacturing over the past 150 years or so but, the rest of the world has caught up and is surpassing in several areas.
A brief history of Industry 1.0, 2.0, 3.0 and 4.0
In essence, each of the Industry X.X revolutions that have occurred throughout history was a revolution of change that impacted industries and society greatly.
Industry 1.0 was quite simply the industrial revolution itself. The harnessing of steam coupled with the large-scale advances in machine design to outperform manual labour in manufacturing and a great many other areas.
Industry 2.0 witnessed the advent of the assembly line and electricity. Not just workers performing tasks in a specific order or uniformly working towards set goals but, a shift in design to standardize parts, sub-assemblies and processes to ensure that any tab “A” fit in any slot “B”. Prior to the mass production improvements made by Colt Firearms and Henry Ford, these were the real problems of the day for manufacturing.
Industry 3.0 brought about the computer age and automation in manufacturing. More than simply robotics on the assembly line, computers changed the way we managed and introduced a vast array of new jobs and careers to deal with the technology. For manufacturing, other than a new wave of automation that could replace people, little other improvement was realized by industry 3.0. Data became a tool of manufacturing that helped improve quality and efficiency in the factory.
Industry 4.0 is the next wave of revolution having emerged in Europe around 2015. It is far more than just the “Internet of Things” or “Big Data” which are the common North American definitions. Industry 4.0 is a complete integration of digitization, automation and human factors in any industry. This includes a paradigm shift in education and training away from standardized certificates towards lifelong learning programs as well as significant government focus shift away from large corporations to concentrate on the innovation and economic value generation from SME’s in all sectors.
Policy and Support
This is the single most challenging area for North American business in that the structure of our governments themselves has limited their own reactions and growth within the revolutionary frameworks of Industry 1.0 through 4.0. Any government service, program, regulatory environment, etc. that still requires a physical piece of paper be filled out and couriered, mailed or even scanned and emailed has simple not completely integrated an Industry 3.0 mindset and will be unlikely to be able to understand and support the needs of industries looking towards Industry 4.0.
Moreover, where government themselves maintains the responsibility internally for overseeing education and training, occupational certification or licensing, and regulates industries in any way then; this lack of progression by government becomes the largest single roadblock for industries to overcome.
Warnings
Multiple organizations have been warning of the speed of change and issues with North American industry for years. The most recent warnings surrounding Industry 4.0 in Canada come from the CFIB and PwC (PricewaterhouseCoopers LLP) in reviews of Canadian industry relative to global supply chains and overall competitiveness.
“Industry 4.0, the fourth industrial revolution, has begun. Digital technology is transforming the industrial and manufacturing world in profound ways. Canadian companies are uniquely positioned to seize the opportunities created by this revolution—yet they must move quickly or risk being left behind for good.” – PwC, 2016
Alberta’s own recent “Red Tape Reduction” initiatives are considered a step in the right direction however; Alberta is late to the table and must find ways to accelerate industry likely by adopting and implementing the proven best practices of others quickly.
Leadership
For Canadian and Albertan Industries, the leadership towards a successful adoption of Industry 4.0 requires a few distinct steps.
- Don’t waste time and resources reinventing the wheel. A great many European governments are well ahead in promoting Industry 4.0 programs in their policies, industries and education systems that are already generating returns. Germany leads the way and has already invested in and published the research.
- Out with the old; Seriously. Despite a fondness for history, the horse drawn carriage is not going to make a comeback. Governments and industries need to take stock of outdated systems and remove them in spite of the pain change causes some people. Our universities are better sources for policy direction than our industries and this is a part of the European model in practice.
- Focus on SME’s. This is crucial to revitalizing economic growth and promoting entrepreneurial opportunity. Asking innovators to draw on employee pools produced via standardized government sponsored training or comply with licencing and regulatory models that are not used elsewhere, will only serve to drive the entrepreneur elsewhere. Similarly, existing industry burdens affecting competition will only lead to their eventual closure or relocation in the face of competition.
- Wholistic policy and support. A short-term funding program won’t solve employee training issues, short-term tax credits don’t address long-term problems, investment incentive programs that are out of reach ($1,000,000.00 minimums) focus assistance on large corporations and ignore SME’s. Wholistic must mean all things for all sizes of organizations and is equally true for government. Government leadership also means internal and external change and demands for industry change rather than continued support for status quo.
Coronavirus Economic Recovery
At a time when Alberta industries are collaborating with Government to produce a viable economic recovery plan, European governments have already implemented policy, completed and published research and have begun the process of recovery. They are ahead of us not because they recognized the need to plan a recovery from the global pandemic earlier than we did but, because their systems of government and industry are more flexible, adaptable and resilient to impacts like Covid-19 than our own.
Not foreseeing an event like Covid-19 coming, is not the same thing as not being prepared for the unforeseen.
The Tools
As mentioned, the research is done and the best practices are in place. A small sampling is available within these documents;
PwC (PricewaterhouseCoopers LLP), 2016, Industry 4.0: An opportunity to shine for Canadian manufacturers, Published By; PricewaterhouseCoopers LLP.
Demetrius Klitou, Johannes Conrads & Morten Rasmussen, CARSA and Laurent Probst & Bertrand Pedersen., (2017), Key Lessons from National Industry 4.0 Policy Initiatives in Europe., Published by; The Digital Transformation Monitor (A project of the European Commission).
acatech, (2016), Skills for Industie 4.0; Training Requirements and Solutions (a position paper executive summary), Published By; acatech – National Academy of Science and Engineering (Germany).
Gunther Schul, Reiner, Anderlm Roman Dumitrescu, Antonio Kruger, Michael ten Hompel, (2020), Using the Industrie 4.0 Maturity Index in Industry; Current Challenges, Case Studies and Trends, Published By; acatech – National Academy of Science and Engineering (Germany).
Jürgen Gausemeier, Fritz Klocke, Christian Dülme, Daniel Eckelt, Patrick Kabasci, Martina Kohlhuber, Nico Schön, Stephan Schröder, Markus Wellensiek, (2016), Industrie 4.0, International Benchmark, Options for the Future and Recommendations for Manufacturing Research, Published By; Heinz Nixdorf Institute, Paderborn, Aachen (Germany).
acatech, (2020), The Coronavirus Crisis: Keeping the economy running, meeting basic necessities, maintaining innovation, Published By; acatech – National Academy of Science and Engineering (Germany).