Opportunities of Sustainable Manufacturing in Industry 4.0

Abstract

The current globalization is faced by the challenge to meet the continuously growing worldwide demand for capital and consumer goods by simultaneously ensuring a sustainable evolvement of human existence in its social, environmental and economic dimensions. In order to cope with this challenge, industrial value creation must be geared towards sustainability. Currently, the industrial value creation in the early industrialized countries is shaped by the development towards the fourth stage of industrialization, the so-called Industry 4.0. This development provides immense opportunities for the realization of sustainable manufacturing. This paper will present a state of the art review of Industry 4.0 based on recent developments in research and practice. Subsequently, an overview of different opportunities for sustainable manufacturing in Industry 4.0 will be presented. A use case for the retrofitting of manufacturing equipment as a specific opportunity for sustainable manufacturing in Industry 4.0 will be exemplarily outlined.

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2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing
doi: 10.1016/j.procir.2016.01.129
Procedia CIRP 40 ( 2016 ) 536 – 541
ScienceDirect
13th Global Conference on Sustainable Manufacturing - Decoupling Growth from Resource Use
Opportunities of Sustainable Manufacturing in Industry 4.0
T. Stock*, G. Seliger
Institute of Machine Tools and Factory Management, Technische Universität Berlin, 10587 Berlin, Germany
Production Technology Centre, Office PTZ 2, Pascalstraße 8-9, D-10587, Berlin, Germany
* Corresponding author. Tel.: +49 (0)30 314 244 57; fax: +49 (0)30 314 227 59. E-mail address: stock@mf.tu-berlin.de
Abstract
The current globalization is faced by the challenge to meet the continuously growing worldwide demand for capital and consumer goods by
simultaneously ensuring a sustainable evolvement of human existence in its social, environmental and economic dimensions. In order to cope
w
ith this challenge, industrial value creation must be geared towards sustainability. Currently, the industrial
value creation in the early
industrialized countries is shaped by the development towards the
fourth stage of industrialization, the so-called Industry 4.0. This development
provides immense opportunities for the realization of sustainable manufacturing. This paper will present a state of the art review of Industry 4.0
based on recent developments in research and practice. Subsequently, an overview of different opportunities for sustainable manufacturing in
Industry 4.0 will be presented. A use case for the retrofitting of manufacturing equipment as a specific opportunity for sustainable
m
anufacturing in Industry 4.0 will be exemplarily outlined.
© 2016 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the International Scientific Comm
ittee of the 13th Global Conference on Sustainable Manufacturing.
Keywords: Sustainable development; Factory; Industry 4.0
1. Introduction
The industrial value creation in the early industrialized
co
untries is currently shaped by the development towards the
fourth stage of industrialization, the so-called Industry 4.0.
T
his development follows the third industrial revolution
which started in the early 1970s and was based on electronics
and information technologies for realizing a high level of
automation in manufacturing [1].
The development towards Industry 4.0 has presently a
su
bstantial influence on the manufacturing industry. It is
based on the establishment of smart factories, smart products
and
smart services embedded in an internet of things and of
services also called industrial internet [2]. Additionally, new
and disruptive business models are evolving around these
Industry 4.0 elements [1,3].
This development towards an Industry 4.0 provides
i
mmense opportunities for realizing sustainable
m
anufacturing using the ubiquitous information and
communication technology (ICT) infrastructure. This paper
will present a state of the art review of Industry 4.0 based on
recent
research and practice. Wherein, the macro and micro
perspectives of Industry 4.0 will be visualized and analyzed.
S
ubsequently, approaches to sustainable manufacturing are
co
mbined with the requirements of Industry 4.0 and an
ov
erview of opportunities for sustainable manufacturing in the
m
acro and micro perspectives will be presented. Finally, a use
cas
e for retrofitting of equipment as a specific opportunity for
sustai
nable manufacturing in Industry 4.0 will be exemplarily
outlined.
2. State of the Art
The main ideas of Industry 4.0 have been firstly published
by
KAGERMANN in 2011 [4] and have built the foundation
for the Industry 4.0 manifesto published in 2013 by the
German National Academy of Science and Engineering
(acatech) [1]. At European level, the Public-Private
P
artnership (PPP) for Factories of the Future (FoF) addresses
and develops Industry 4.0-related topics [5]. The contents of
In
dustry 4.0 in the US are promoted by the Industrial Internet
C
onsortium (ICC) [6].
© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientifi c Committee of the 13th Global Conference on Sustainable Manufacturing

537
T. Stock and G. Seliger / Procedia CIRP 40 ( 2016 ) 536 – 541
The paradigm of Industry 4.0 is essentially outlined by
three dimensions [3, 7, 8]: (1) horizontal integration across the
entire value creation network, (2) end-to-end engineering
across
the entire product life cycle, as well as (3) vertical
integration and networked manufacturing systems.
The horizontal integration across
the entire value creation
network describes the cross-company and company-internal
in
telligent cross-linking and digitalization of value creation
m
odules throughout the value chain of a product life cycle
and between value chains of adjoining product life cycles [7].
The end-to-end engineering across the entire product life
c
ycle describes the intelligent cross-linking and digitalization
th
roughout all phases of a product life cycle: from the raw
m
aterial acquisition to manufacturing system, product use,
and the product end of life [7].
Vertical integration and networked manufacturing systems
describes
the intelligent cross-linking and digitalization within
th
e different aggregation and hierarchical levels of a value
creation module from manufacturing stations via
manufacturing cells, lines and factories, also integrating the
associated value chain activities such as marketing and sales
or technology development [7].
The intelligent cross-linking and digitalization covers the
ap
plication of an end-to-end solution using information and
co
mmunication technologies which are embedded in a cloud.
In a manufacturing system, the intelligent cross-linking is
realized
by the application of so-called Cyber-Physical
S
ystems (CPS) which are operating in a self-organized and
decentralized
manner [7, 9, 10]. They are based on embedded
mechatronic components i.e., applied sensor systems for
co
llecting data as well as actuator systems for influencing
physical processes [9]. CPS are intelligently linked with each
other and are continuously interchanging data via virtual
networks such as a cloud in real-time. The cloud itself is
i
mplemented in the internet of things and services [7]. Being
part of a sociotechnical system, CPS are using human-
machine-interfaces for interacting with the operators [11].
2.1. The Macro Perspective of Industry 4.0
The macro perspective of Industry 4.0 as shown in Figure
1
covers the horizontal integration as well as the end-to-end
eng
ineering dimension of Industry 4.0. This visualization is
based on a strong product-life-cycle-related point of view by
pu
tting cross-linked product life cycles as central element of
th
e value creation networks in Industry 4.0.
The horizontal integration from the macro perspective is
ch
aracterized by a network of value creation modules. Value
creation modules are defined as the interplay of different
v
alue creation factors i.e., equipment, human, organization,
process and product [12]. The value creation modules,
represented in their highest level of aggregation by factories,
are cross-linked throughout the complete value chain of a
produ
ct life cycle as well as with value creation modules in
value chains of adjoining product life cycles. This linkage
leads to an intelligent network of value creation modules
covering the value chains of different product life cycles. This
intelligent network provides an environment for new and
in
novative business models and is thus currently leading to a
change in business models.
Displayed in Figure 1, the end-to-end engineering from the
m
acro perspective is the cross-linking of stakeholders,
produ
cts and equipment along the product life cycle,
beginning with the raw material acquisition phase and ending
with the end-of-life phase. The products, the different
stak
eholder such as customers, workers or suppliers, and the
manufacturing equipment are embedded in a virtual network
and are interchanging data in and between the different phases
of a product life cycle. This life cycle consists of the raw
m
aterial acquisition phase, the manufacturing phase -
containing the product development, the engineering of the
related
manufacturing system and the manufacturing of the
product - the use and service phase, the end-of-life phase -
containing reuse, remanufacturing, recycling, recovery and
dis
posal - as well as the transport between all phases.
Fig. 1. Macro perspective of Industry 4.0

538 T. Stock and G. Seliger / Procedia CIRP 40 ( 2016 ) 536 – 541
Those value creation modules i.e., factories which are
embedded in this ubiquitous flow of smart data will evolve to
so
called smart factories. Smart factories are manufacturing
smart products and are being supplied with energy from smart
g
rids as well as supplied with water from fresh water
reserv
oirs. The material flow along the product life cycle and
between adjoining product life cycle will be accomplished by
smart logistics. The stream of smart data between the different
elements of the value creation networks in Industry 4.0 is
in
terchanged via the cloud.
Smart data arises by expediently structuring information
f
rom big data which then can be used for knowledge advances
and decision making throughout the product life cycle [13].
Smart factories are using embedded Cyber-Physical Systems
f
or value creation. This enables the smart product to self-
organize its required manufacturing processes and its flow
th
roughout the factory in a decentralized manner by
interchanging smart data with the CPS [14].
The smart product holds the information about its
req
uirements for the manufacturing processes and
ma
nufacturing equipment. Smart logistics are using CPS for
s
upporting the material flow within the factory and between
factories, customers, and other stakeholders. They are also
bein
g controlled in a decentralized manner according to the
requirements of the product. A smart grid dynamically
m
atches the energy generation of suppliers using renewable
energies with the energy demand of consumers, e.g. smart
factories or smart homes, by using short-term energy storages
f
or buffering. Within a smart grid, energy consumers and
suppliers can be the same.
2.2. The Micro Perspective of Industry 4.0
The micro perspective of Industry 4.0 presented in Figure 2
m
ainly covers the horizontal integration as well as the vertical
integration within smart factories but it also is part of the end-
to-end engineering dimension.
Fig. 2. Micro perspective of Industry 4.0

539
T. Stock and G. Seliger / Procedia CIRP 40 ( 2016 ) 536 – 541
The smart factory as value creation module at the highest
aggregation level contains different value creation modules on
lower aggregation levels such as the manufacturing lines,
manufacturing cells or manufacturing stations. Smart factories
will increasingly use renewable energies as part of a self-
sufficient supply in addition to the supply provided by the
extern
al smart grid [18]. The factory will thus become an
energy
supplier and consumer at the same time. The smart
grid as well as the energy management system of the smart
factory will have to be able to handle the dynamic
requirements of energy supply and feedback. The supply of
f
resh water for the value creation modules within the smart
factory is also another essential resource flow, requiring
ad
equate and intact water reservoirs.
The horizontal integration from the micro perspective is
characterized
by the cross-linked value creation modules
alo
ng the material flow of the smart factory also integrating
the smart logistics. The in- and outbound logistics from and to
th
e factories as part of the smart logistic will be characterized
by transport equipment that is able to agilely react to
unforeseen events such as a change in traffic or weather and
which is able to autonomously operate between the starting
poin
t and the destination. Autonomously operating transport
equipment such as Automated Guided Vehicles (AGVs) will
be used for realizing the in-house transport along the material
f
low. All transport equipment is interchanging smart data with
the value creation modules in order to realize a decentralized
coordination of supplies and products with the transport
systems. For this purpose, the supplies and products contain
identi
fication systems, e.g. RFID chips or QR codes. This
enables a wireless identification and localization of all
materials in the value chain.
Vertical integration and networked manufacturing systems
f
rom the micro perspective describes the intelligent cross-
linking of the value creation factors: product, equipment and
h
uman, along the different aggregation levels of the value
creation modules from manufacturing stations via
manufacturing cells and manufacturing lines up to the smart
factory. This networking throughout the different aggregation
levels also includes the cross-linking of the value creation
m
odules with the different value chain activities, e.g.
marketing and sales, service, procurement, etc. [15].
The value creation module in a factory corresponds to an
e
mbedded Cyber-Physical-System. The manufacturing
equ
ipment, e.g. machine tools or assembly tools, are using
sensor systems for identifying and localizing the value
creation factors, such as the products or the humans, as well
as for monitoring the manufacturing processes, e.g. the
cutting, assembly, or transport processes. Depending on the
monitored smart data, the applied actuators in the
manufacturing equipment can react in real-time on specific
chan
ges of the product, humans or processes. The
communication and exchange of the smart data between the
value creation factors, between the value creation module and
the transport equipment, as well as between the different
lev
els of aggregation and the different value chain activities is
being executed via the cloud.
Table 1 provides an overview of the main trends and
expected
development for the different value creation factors
in Industry 4.0.
Table 1. Trends and expected developments for the value creation factors
Equipment
The manufacturing equipment will be characterized by the
application of highly automated machine tools and robots. The
equipment will be able to flexibly adapt to changes in the other value
creation factors, e.g. the robots will be working together
collaboratively with the workers on joint tasks [2].
Human
The current jobs in manufacturing are facing a high risk for being
automated to a large extent [16]. The numbers of workers will thus
de
crease. The remaining manufacturing jobs will contain more
knowledge work as well as more short-term and hard-to-plan tasks
[1
0]. The workers increasingly have to monitor the automated
equipment, are being integrated in decentralized decision-making,
an
d are participating in engineering activities as part of the end-to-
end engineering.
Organization
The increasing organizational complexity in the manufacturing
system cannot be managed by a central instance from a certain point
on. Decision making will thus be shifted away from a central
instance towards decentralized instances. The decentralized instances
will autonomously consider local information for the decision-
making [14]. The decision itself will be taken by the workers or
by
the equipment using methods from the field of artificial intelligence.
Process
Additive manufacturing technologies also known as 3D printing will
be increasingly deployed in value creation processes, since the costs
of additive manufacturing have been rapidly dropping during the last
years by simultaneously increasing in terms of speed and precision
[1
7]. This allows designing more complex, stronger, and more
li
ghtweight geometries as well as the application of additive
manufacturing to higher quantities and larger scales of the product
[
17].
Product
The products will be manufactured in batch size one according to the
individual requirements of the customer [7]. This mass customization
of the product integrates the customer as early as possible in the
value chain. The physical product will be also combined with new
services offering functionality and access rather than product
o
wnership to the customer as part of new business models [17].
3. Sustainability in Industry 4.0
A paradigm Industry 4.0 will be a step forward towards
m
ore sustainable industrial value creation. In current
literature, this step is mainly characterized as contribution to
the environmental dimension of sustainability. The allocation
of resources, i.e. products, materials, energy and water, can be
realized in a more efficient way on the basis of intelligent
cross-linked value creation modules [2].

540 T. Stock and G. Seliger / Procedia CIRP 40 ( 2016 ) 536 – 541
Besides these environmental contributions, Industry 4.0
holds a great opportunity for realizing sustainable industrial
v
alue creation on all three sustainability dimensions:
econ
omic, social and environmental. Table 2 summarizes the
oppo
rtunities of sustainable manufacturing for the macro
perspective of Industry 4.0. Table 3 gives an overview of the
opportunities for the micro perspective. The concepts
presen
ted in both tables merge the most important approaches
of sustainable manufacturing in current literature with the
trends and developments related to Industry 4.0.
Table 2. Opportunities of sustainable manufacturing for the macro
perspective
Business Models
In Industry 4.0, new evolving business models are highly driven by the
use of smart data for offering new services. This development has to be
exploited for anchoring new sustainable business models. Sustainable
business models significantly create positive or reduce negative impacts
for the environment or society [19] or they can even fundamentally
contribute to solving an environmental or social problem [20].
A
dditionally, sustainable business models are necessarily characterized
by competitiveness on the long-run [20]. In this context, selling the
f
unctionality and accessibility of products instead of only selling the
tangible products will be a leading concept.
Value Creation Networks
The cross-linking of value creation networks in Industry 4.0 offers new
opportunities for realizing closed-loop product life cycles and industrial
s
ymbiosis. It allows the efficient coordination of the product, material,
energy, and water flows throughout the product life cycles as well as
between different factories. Closed-loop product life-cycles help keep
p
roducts in life cycles of multiple use phases with remanufacturing or
reuse in between. Industrial symbiosis describes the (cross-company)
co
operation of different factories for realizing a competitive advantage
by trading and exchanging products, materials, energy, water [21] and
also smart data on a local level.
Table 3. Opportunities of sustainable manufacturing for the micro perspective
Equipment
The manufacturing equipment in factories often is a capital good with a
long use phase of up to 20 or more years. Retrofitting enables an easy
an
d cost-efficient way of upgrading existing manufacturing equipment
w
ith sensor and actuator systems as well as with the related control
logics in order to overcome the heterogeneity of equipment in factories
[
10]. Retrofitting can thus be used as an approach for realizing a CPS
thr
oughout a value creation module, such as a factory, with already
existing manufacturing equipment. It extends the use phase or
f
acilitates the application in a new use phase for the manufacturing
e
quipment and can essentially contribute to the economic and
e
nvironmental dimensions of sustainability. It is particularly suitable
for small and medium sized companies, being a low-cost alternative to
the
new procurement of manufacturing equipment.
Human
Humans will still be the organizers of value creation in Industry 4.0 [8].
Three different sustainable approaches can be used for coping with
the
social challenge in Industry 4.0. (1) Increasing the training efficiency of
workers by combining new ICT technologies, e.g. virtual reality head-
mounted displays with Learnstruments. (2) Increasing the intrinsi
c
motivation and fostering creativity by establishing new CPS-based
a
pproaches of work organization and design, e.g. by implementing the
concepts of flow theory [22] or using new ICT technologies for
implementing concepts of gamification in order to support
decentralized decision-making. (3) Increasing the extrinsic motivation
b
y implementing individual incentive systems for the worker, e.g. by
taking into account the smart data within the product life cycle for
providing individual feedback mechanisms.
Organization
A sustainable-oriented decentralized organization in a smart factory
focuses on the efficient allocation of products, materials, energy and
water by taking into account the dynamic constraints of the CPS, e.g. of
the smart logistics, the smart grid, the self-sufficient supply or the
c
ustomer. This concept towards a holistic resource efficiency is being
described as one of the essential advantages of Industry 4.0 [2,3].
Process
The sustainable design of processes addresses the holistic resource
efficiency approach of Industry 4.0 by designing appropriate
manufacturing process chains [23] or by using new technologies such
as internally cooled tools [24].
Product
The approach for the sustainable design of products in Industry 4.0
focuses on the realization of closed-loop life cycles for products by
en
abling the reuse and remanufacturing of the specific product or by
applying cradle-to-cradle principles. Different approaches also focus on
de
signing for the well-being of the consumer. These concepts can be
s
upported by the application of identification systems, e.g. for
recovering the cores for remanufacturing, or by applying new
additional services to the product for achieving a higher level of well-
being for the customer [25].
4. Retrofitting Use Case
The objective of this use case has been the development of
a
retrofitting solution for a desktop machine tool within the
laboratory of sustainable manufacturing of the Collaborative
R
esearch Centre 1026 at TU Berlin. The method for
developing the retrofitting solution covers four sequential
step
s: (1) situation analysis, (2) definition of the monitoring
strategy, (3) data processing and (4) implementation of the
equipment in a CPS.
The situation analysis includes the definition of the list of
req
uirements. In this case, the retrofitting solution is supposed
to
monitor the existing operational states of the equipment:
shut on/off, idling, processing and fault. It also should be easy
to install as well as cost effective.
Additionally, the situation analysis focuses on the selection
of
the sensor system according to the list of requirements.
In terms of the use case, an acceleration sensor has met the
req
uirements appropriate.

541
T. Stock and G. Seliger / Procedia CIRP 40 ( 2016 ) 536 – 541
The definition of the monitoring strategy contains the
definition of the measuring parameters, the definition of the
monitoring position and orientation of the sensor, the
application of the sensor as well as the execution of the
measurement. For the use case, a Beckhoff PLC has
transformed the analog signals of the acceleration sensor into
digital signals for the subsequent data processing.
The data processing evaluates th
e input data according to a
predefined logic in order to identify the different operational
states. The visualization of the data has been realized by a
Human-Machine-Interface, which displays the current
operation
al state as well as the measured vibration profile of
the machine tool. Figure 3 shows the experimental setup of
the milling machine, sensor and HMI.
This milling machine can now be implemented in a CPS.
In
connection with a smart product the retrofitted machine can
decentrally schedule the material flow and is furthermore able
to automatically react to any machine failures by e.g.
inf
orming the responsible worker.
5. Summary and conclusion
In this paper a state of the art review for the current
in
dustrial development know as Industry 4.0 has been
presented. In order to give a comprehensive understanding of
this development, the micro and macro perspective of
Industry 4.0 have been described based on the current
findings in research and practice. Subsequently, different
opportunities for realizing a sustainable manufacturing in
Industry 4.0 have been presented for the macro as well as for
th
e micro perspectives. These opportunities are combining
current
research approaches in the field of sustainable
manufacturing with the future requirements of Industry 4.0.
Finally, a use case for retrofitting of a machine tool as a
specific opportunity for sustainable manufacturing in Industry
4
.0 has been outlined.
Acknowledgements
This research was supported the CRC 1026 "Sustainable
M
anufacturing – Shaping Global Value Creation" funded by
th
e German Research Foundation (DFG).
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Fig. 3. Retrofitted desktop machine tool
Desktop Milling
Machine
Human-Machine-
Interface
Installed
acceleration
Sensor
Measured values
Visualization of
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