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Industry 4.0: Literature Review and Future Research Directions

Authors:
  • Indian Institute of Management Bodh Gaya

Abstract

Purpose-The purpose of this paper is to investigate the existing literature of Industry 4.0 and to seek the various development happened in the domain of industry 4.0 Methodology- To select the research papers for review the literature, method of inclusion and exclusion is used. Further, the literature is divided into three parts based on the framework and research field. Findings and concluding remarks- The paper highlights a research field that is growing very fast. Moreover, the various framework of industry 4.0 from production, manufacturing, environment and ergonomic areas are identified to plan the future research. Research Implication- Future research direction of this paper can be used by researchers to focus on specific research areas and will be helpful in developing a generalized framework. Utility of the paper- Many frameworks have found in the literature for different sectors, which will enhance the productivity of the organization. This paper will be helpful for selecting future research direction.
Industry 4.0: Literature Review and Future Research Directions
Shashank Kumar1, Balkrishna Narkhede2, Karuna Jain3
1Research Scholar, National Institute of Industrial Engineering, Mumbai, India
2Associate Professor, National Institute of Industrial Engineering, Mumbai, India
3Professor, National Institute of Industrial Engineering, Mumbai, India
Abstract-
Purpose-The purpose of this paper is to investigate the existing literature of Industry 4.0
and to seek the various development happened in the domain of industry 4.0
Methodology- To select the research papers for review the literature, method of inclusion
and exclusion is used. Further, the literature is divided into three parts based on the
framework and research field.
Findings and concluding remarks- The paper highlights a research field that is growing
very fast. Moreover, the various framework of industry 4.0 from production, manufacturing,
environment and ergonomic areas are identified to plan the future research.
Research Implication- Future research direction of this paper can be used by researchers
to focus on specific research areas and will be helpful in developing a generalized
framework.
Utility of the paper- Many frameworks have found in the literature for different sectors,
which will enhance the productivity of the organization. This paper will be helpful for
selecting future research direction.
Keywords- Industry 4.0; the fourth industrial revolution; CPS; IoT
1. Introduction
Complications and necessity in the manufacturing industry are increasing at a rapid rate from past decades.
Traditional approaches of value creation are becoming less significant day by day. International
competitions, market unpredictability and demand of the highly customized product become the significant
factors for the companies for the survival in the market (Spath et al., 2013). Digitalization and technology
are playing a vital role in changing the trend of the market. It opens a wide range of opportunities and
business potential in the market for manufacturing sectors. To cope up with the dynamic behavior of the
market, Germany in 2011, comes with the idea of complete integration of manufacturing sector with its all
components (Bauernhansl et al., 2014; Brettel et al., 2014). The integration of all the components is widely
accepted in literature and become popular as fourth industrial revolution or Industry4.0. Technology like the
internet of things (IoT), the cyber-physical system(CPS), cloud computing, additive manufacturing, etc.
which helps to achieve the complete integration also become more popular in few years. The popularity of
these new technologies has made the fourth industrial revolution one of the most discussed research areas
in this decade. The popularity of Industry 4.0 holds many questions for future and present progress of the
Industry 4.0. In this paper, a literature review of Industry 4.0 is presented to investigate the shortfall and art
of the practice of Industry 4.0.
The rest of the paper is organized as follow. In section 2, the paper selection procedure is presented. A
literature review is presented in section 3 with the classification of selected papers. Conclusions and future
research agenda of Industry 4.0 are described in section 4.
2. Selection Criteria for paper
Table I
Inclusion and Exclusion with an explanation
To ascertain that all papers shall be evaluated equally with less subjective opinions, this study follows the
method of inclusion and exclusion proposed by (Nightingale,2009; Pickering and Byrne, 2014). The
principle of inclusion and exclusion explains how shortlisting of the papers have done. Four Inclusion and
two exclusion criteria are used to select the papers. The inclusion and exclusion criteria along with its
explanation are given in Table 1, and the flowchart of sorting process of the selected paper is presented in
Figure 1. Recognition and Shortlisting of writing are done based on the criteria, and sub-criteria explained
in Table 1.
2.1 Collection of papers
Criteria DR-1 is used to search the papers. DR-1 criteria are used to get good quality and highly focused
papers. Paper with the combination of word “industry 4.0 & “warehouse” has not appeared in the search
engine. To focus on the warehouse operation with industry 4.0 technology, few peer-reviewed papers which
relate Industry 4.0 with warehouse operations are discussed. Science Direct, Web of science and Google
scholar, is used to search the papers.
The paper published and selected for publication between 2011 to 8th March 2018 are considered for
reviewing the literature. With DR-1 criteria 1556 search results are collected. Other criteria are used to do
shortlisting of paper for final selection. Paper shortlisting process has shown in figure 1.
Figure 2a and 2b show the % of paper chosen year wise, % of paper selected publisher wise and Figure 3
shows the number of an article selected from different journal respectively. From the year 2011-2014 as
per criteria and paper selection method, no paper got selected for this study. The figure 2a shows that
maximum number (23 out of 40) of the articles, taken into consideration for reviewing the literature of
Industry4.0 have published in 2017. Among all the selected papers, 44% (19 out of 40) of the papers are
published by Elsevier, 35% (15 out of 40) by Taylor and Francis and rest are published by Springer [Fig2b].
Most of the shortlisted papers are from International Journal of Production research (8) and Manufacturing
I/E
Criteria
Explanation
Inclusion
Directly Related
(DR)
DR-1: Paper is having the word "Industry 4.0 and Warehouse" in
the title.
Indirectly
Related (IR)
IR-1: Paper supports and describes the challenges of Industry 4.0
in a different area
Time
T1: Paper published in January 2011 and till March 2018
Publication
P1: Paper published by Elsevier, Springer, Taylor, and Francis
P2: Paper in reputed Journal
Exclusion
Search Engine
SE1: Paper in another language than English
SE2: Paper with only abstract
Loosely related
LR1: Include Conference and proceeding Paper
LR2: Include editorial material, news articles
Paper searched in data base (m=1556)
Recognition
Shortlisting
Paper with replication=243 (m=1313)
Paper with SE1(19) and SE2(8) removed
(m=1286)
Paper left with criteria of LR2 & P1 (m=296)
Paper with LR1(223) (m=73)
Paper excluded without P2=33 (m=40)
Eligible
paper
44%
21%
35%
Paper form different
publication
Elsevier
Springer
Letter (7). These two journals contributed a lot to the development of knowledge of Industry 4.0. As per
selection criteria, the contribution of rest of the journals are found less significant.
Figure 2a: paper selected year wise
3. Literature Review
3.1 Classifications of paper
Based on the content available in the literature, all the selected papers are sub-divided into three categories:
(1) Paper related to production and manufacturing (2) Paper about specific sector and operations and (3)
Paper related to environment and human comfortability. The reviewed literature has discussed in greater
detail based on the content and sub-division.
10%
12%
58%
20%
Paper selected from different
year
2015
2016
2017
2018
Figure 1: Flowchart for paper selection from Literature
Figure 3: Journal from which paper has selected
3.1.1 Industry 4.0 in production and manufacturing sector
Paper selected for this section has discussed the production process and some advanced design of shop
floor in the manufacturing industry by using cyber-physical system (CPS) and smart object. Majority of
papers discussed about the internet of things (IoT) and their implication part. S.Wang et al., (2015) in his
paper explained smart object-based shop floor. Shop floor with the smart agent and the advanced tool that
converted the simple system into the self-organizing system has discussed. IoT and CPS are used to make
all the machines and tools smart. CPS and IoT enabled various agents are then classified into different
agents for the easiness of collecting the big data feedback and facilitate coordination among them. For
better coordination, an intelligent negotiation mechanism has presented by Wang et al. To get the significant
visualization of co-ordination of smart objects, virtual engineering object (VEO) technology has introduced
by S. Shafiq et al., (2015). Paper visualized the engineering artifacts and presented a conceptual framework
and methodologies to implement the same. It is technology like CPS which capture and reuse the
experimental knowledge for decision making. The author explains the future importance of VEO will for
Industry 4.0. Lee et al., (2015) focused on the development of an architecture for CPS oriented Industry
4.0. In this paper, five-level architecture has proposed for guiding the implication of CPS. It provides the
growing and practical enlightenment for manufacturing industries about CPS that how it can be used to
improve the product quality and reliability. Further, Shafiq et al., (2016) grasp and presented the concept
of virtual engineering object (VEO), virtual engineering process (VEP) and virtual engineering factories
(VEF) in context of CPS-based Industry 4. Presented concept is implemented and validated through a case
study. The result of case study shows that the developed concept support and can facilitate in real time for
critical, creative and effective decision making. To make proper decision and transformation of the
production system from Industry 2.0 to Industry 4.0, Yin et al., (2017) explained the evolution of
manufacturing sector in the context of demand over time. Paper concluded that development of production
systems and technologies from Industry 2.0 to Industry 4.0 highly dependent on market behavior.
Tortorella et al., (2018) explained the Industry 4.0 in context of Brazilian manufacturing companies to
examine the relationship between lean production practices and the implication of integrated system. The
theoretical and practical relevance of fourth industrial revolution has presented in that paper with essential
findings. One of the conclusions of paper stated that the company from a country with growing economy,
1
4
1112 2 2 1
7
8
1 1 1 1 1 1 1 1 1 1
that have originated lean production system is more likely to accept Industry 4.0. Paper talked about the
socio-economic relation for implementing Industry 4.0. There should always be a positive association
between these factors in developed and developing country for implementing the concept of Industry 4.0.
Whether the country is developed or developing it is always difficult to select the technologies available in
the market for integration of the manufacturing system. Selecting suitable technology for an organization
need a clear strategy that alines with organization goals. Strandhagen et al., (2017) explained the
techniques to select the suitable technology that can be used and applied to manufacturing logistics. Short
listing of available methods has done through multiple case study. Paper concluded that implementation of
Industry 4.0 depends upon potential and production environment, as it influences the applicability of
techniques.
Theorin et al., (2017) presented Line Information System Architecture called LISA in shorts. It is an event-
driven architecture that flexible message structure for integration and offers a flexible connection between
applications and devices. Distributed nature of LISA will help any organization to integrate its services very
quickly. Combination of all services will generate the all kind of low/high-level data that will be helpful in
creating and transforming useful information into smart services and decision-making, that is what Industry
4.0 is all about. The author concluded that LISA is widely applicable where processes are running
asynchronously, and the workflow is not sequential. A further study has found that LISA will give the better
result if it is used with the integration of Industry 4.0.
Yong et al., (2018) address the gap in the progress of Industry 4.0 through a systematic literature review of
the academic paper. The keywords used to search the paper were ‘the fourth industrial revolution,’ ‘the 4th
industrial revolution’, ‘Industry 4.0’ and ‘Industry 4.0’. Total 224 papers are reviewed by the author to
address the future research agenda. The author focused on the detection of the most common Industry 4.0
related concepts, and hardware that more frequently used for explaining the term in Industry 4.0. Omar et
al., (2017) presented complex network topology matrix (CNTM), which can be used for bottleneck
identification, resource allocation as well as for maintenance purpose in the manufacturing industries.
Trappey et al., (2017) reviewed the paper of patent and standard landscape of IoT by dividing the set of
documents into four layers (1) Perception (2) Transmission (3) Computation and (4) Application. Every layer
has its technical standards (ISO/IES) and patent criteria. While doing patent landscape analysis, IoT key
players and application matrix of technology has discussed in detail. Paper concluded that standardization
is essential for technology implication and adoption in the era of Industry 4.0. Paper also predicts that
complete standardization of Industry 4.0 technology will take at least ten years. Wang et al., (2017)
presented an Integrated framework of IoT, CPS, IoS, and RFID to reduce the gap between mass
customization and mass personalization process. Similarly, Lu et al., (2017) presented a literature review
paper in which technology and application of Industry 4.0 are in focus.
Paper published till August 2017 in context of Industry 4.0, and lean manufacturing has reviewed by Buer
et al., (2018). Paper identified the research gap and explored the different research area. The article also
proposed a conceptual framework for classification of the studies published till now. Dolgui et al., (2018)
proposed a survey paper that has two objectives. The primary aim is to command future research area by
providing some contribution, limitation regarding application and technologies and the then explain the
control engineering regarding industrial and production engineering. Ahuett-Garza et al., (2018) discussed
Habilitating technologies and its trend in Industry 4.0. The author claimed that technologies like IoT, Additive
manufacturing, Big Data, smart manufacturing had had a substantial impact on the new business
environment. The theoretical and operational framework of Industry 4.0 is discussed through deductive
research approach by Fatorachian et al., (2018). The author also explored the scientific innovation which
can promote the integration of things in a manufacturing environment.
3.1.2 Industry 4.0 for specific sector and operation.
This part of literature presents the paper which is industry oriented and focused on specific operations. This
section also described some randomly selected paper related to warehouse operations. The selected paper
is from the good quality journal and with significant citations. Warehouse management system (WMS) has
been widely used software by many companies. WMS is used to optimize and distribute the various
operations of the warehouse. Wen Ding (2013) conducts a study of smart WMS that explained the various
role of IoT in warehouse operations. Use of IoT technologies in the warehouse has explained by the sensor
network, transmission network, and application network. The sensor network is used to identify the objects
and collect data sources (eg-RFID, Infrared sensors, etc.). The transmission network is used to transfer
collected data and information via the internet, radio or television platform to application network. Based on
data and information received input and output are controlled as per the demand of the customers. Wenrong
et al., (2014) explained the role of the Distributed Intelligence (DI) warehouse management system. The
paper aim was to examine the all possible way to adopt DI and to discuss the other issues of WMS. DI
implementation makes the WMS a smart WMS which gives the information about what to produce when to
produce and how much to produce. Implementation of DI could consider as steps towards Industry 4.0. In
2016 (Alyahya et al., 2016) investigated the application of WMS with the integration of RFID technology.
The focus of that paper is to optimize the material handling operations and investigate the inventory
management based on RFID enabled WMS. The author concluded that design of future warehouse might
be centralized, and it will partly replace conventional warehouse. Ivanov et al., (2016) have explained the
benefit of Industry 4.0 and its component for scheduling operations for the short-term supply chain. Paper
explain a dynamic and non-deterministic model-based algorithm for short-term supply chain in smart
factories. The developed algorithm assumed non-stationary interpretation and execution of tasks. Paper
also explained the theoretical analysis of the material decomposition and how to get real-time information
that by using CPS and IoT. Analysis of the optimal condition and structural properties of the developed
algorithm has done.
Oesterreich et al., (2016) explain the practice of Industry 4.0 in the construction industry. This paper aims
to explore the state of practice and state of the art regarding fourth industrial revolution. Paper mentioned
five factors which can affect the implication of Industry 4.0 in the construction industry. The author
concluded that both states of art and state of practice are on the different level of maturity which will create
problem to established or construct an integrated system for Industry 4.0. Paper says that the level of
maturity is major reason due to which adoption and implication of Industry 4.0 technology must go a long
way.
Jeng et al., (2016) explain how smart spindle has used for measurement of temperature. Paper focused on
fabrication and design of temperature diagnosis system which will use the intelligent spindle to get the real-
time data. The device uses slip ring to transfer temperature sensor signal to measuring device from the
spindle. Smart spindle will help to get the real-time response which can be used to improve the internal and
external design of measuring equipment and spindle also. Li et al., (2017) explained the intelligent predictive
maintenance of machines in the context of Industry 4.0. The paper aims to implement, classify and
introduce the data mining system for health analysis of the device. The article offered a framework, which
contains the complete process of fault analysis. Various constraints and challenges have explained that a
company might face when they implement intelligent predictive maintenance system. Hof et al., (2018)
come with the idea of production of personalized glass item with chemical engraving technique. Paper
concluded that new graving technique has huge potential to support the implementation of Industry 4.0 in
manufacturing.
Zhang et al., (2017) presented a literature review of job shop scheduling and its new perspective in the era
of Industry 4.0. Investigate of 120 papers is done to explain the new methods and technologies for adoption
and advancement of the traditional scheduling system. Zhang further explained the way to re-use traditional
scheduling method with the help of modern technologies and presented smart distributed (or decentralized)
scheduling system for future and its various driving forces. Paper concluded that smart distributed
scheduling system under Industry 4.0 depends on the barcode, radio frequency identification technology
and sensor technology. It will accomplish the real-time connection between an actual system and its digital
system. The centralized scheduling system changes into a parallel distributed intelligent scheduling system
which takes full advantage of existing algorithms and increased the chance to get an optimal solution.
Kuo et al., (2017) presented a case study of spring factory. The author covered the idea of using cheap
add-on triaxial sensors for getting a real-time prediction of machinery. In the paper, a new method is
developed to reduce the variability with less computational effort to extract the key information from
collected data. The developed method is applied in spring factory to determine the validity and reliability of
the method. The article concluded that the presented method would result in light of the small and medium-
size plants to implement Industry 4.0. Hofmann et al., (2017) discussed the future of Industry 4.0 in context
of logistics management. Paper discussed the four key components (CPS, IoT, IoS and smart
manufacturing) of Industry 4.0 and its implication in logistic. Just in time (JIT), just in service (JIS) and
Kanban is the main focused of this conceptual research paper. Many generic propositions are formed by
interviewing experts of logistics and definition of Industry 4.0 is the finding of this study. Moreno et al.,
(2017) in his paper explain digital replica of physical properties, processes, and systems that are called
Digital Twin. This digital twin is used to visualize the punching operation and how the tool is used to help 3-
D modeling for demonstrates the interactive design of CNC program. Santos et al., (2017) proposing a new
architecture for big data analytics and implementing in an organization (Bosch Car) to address the
challenges of Industry 4.0. The proposed case study also talks about six major technologies (IoT,
Cybersecurity, Big data, Augmented reality, Additive manufacturing, and Cloud) of Industry 4.0 and future
factories. The author declared that all the mentioned technologies worked together and there was no
incorporation problem. Implementation of Industry 4.0 technology improves the throughput rate of the
assembly line by 3% to 7% (Müller et al., 2017). Machine to machine communications is used to reconfigure
the flow line which automatically takes over the operations of failed stations. Moeuf et al., (2017) have given
light on the small and medium-sized enterprises in the era of fourth industrial revolution by reviewing the
existing literature and impact of the fourth industrial revolution in the service-oriented firm is discussed by
(Wladimir Bodrow, 2017). Liu et al., (2018) discussed CPS based smart warehousing operations which can
facilitate the vision of Industry 4.0 in warehousing operations. Issues related to CPS data collection,
accurate and robust localization, human activity recognition and multi-robot collaborations have discussed.
Závadská et al., (2018) presented empirical research with taking smart devices, identification technologies,
navigation technologies and information technology into consideration. The study investigated the future
potential of technologies based on the current implementation. A research paper explained the Fog and
CPS focused with the aim of the creation of manufacturing intelligence (O'Donovan et al., 2018) with the
application of machine learning. Fog networking is technology that will give you data in an organized way.
3.1.3 Industry 4.0 for the environment and human comfortability
Human comfort and role of automation in daily life is primary focus of articles presented in this section.
From house to seating chair, how the things can be related to IoT and CPS and its contribution to the
development of entirely Industry 4.0 world is explained in this part. Branger et al. (2015) presented the
future house or so-called smart house of Industry 4.0. The study has divided the whole house architecture
into five sub-systems and provided various integration and new connection for automation with CPS and
IoT. According to the author smart house developed on this will be able to provide health care service and
many manufacturing services. Burritt et al., (2016) talk about environmental accounting and its effect on
Industry4.0. The author tries to investigate the wide context of industrial sustainability through
environmental accounting. Paper explains how to use the concept of Industry 4.0 and its various component
to improve environmental management accounting. The effect of Industry 4.0 on the environment is again
a major problem and attention of the researchers. Mashhadi et al., (2017) discussed the possible burden
that can come on the environment due to Industry 4.0. Paper explained the smart life cycle assessment
and described certain feature and advantage of it by comparing with conventional life cycle assessment
technique. As Industry 4.0 is experiencing large acceptance among the public (Batista et al., 2017), the
industry needs to boost the interconnection and infrastructure of the organization. Batista et al. explain a
new architecture (Interconnected things service architecture) for smart grid and smart living service provider
which will help them to overcome the current challenges for Industry 4.0. Tatiana Mazali (2017) analyses
the change that organization, workers, and infrastructure subjected to in fourth industrial revolution. The
study has examined all aspect that will bring the change in human life and develop Society 4.0.
With the development of technologies and complexity of daily life, it becomes necessary for human beings
to change themselves as per the technological requirement. Longo et al., (2017) presented the concept of
smart operators in Industry 4.0. The author developed a personal digital assistant architecture called
SOPHOS-MS with the feature of voice recognition system. The designed structure can answer any query
and makes operations more transparent and real. According to Trab et al., (2017), the smart object is the
key element of the IoT to transform the real world into a digital virtual world. Trab explained the generic
safety issues present in the chemical industry and proposed a new concept named “IoT-controlled safe
area.” Krugh et al., (2018) developed a framework of cyber-human systems for the CPS enabled
environment. The data obtained from established structure will help in the development of workers and
working environment. Fantini et al., (2018) proposed a methodology for the model to measure worker
activities within cyber-physical systems. He discussed the role and significance of human in the era of
Industry 4.0 with the help of two case studies. He concluded that the developed method and model applies
to assess, examine and produce a design in real situations.
4. Conclusion and Future research direction
The primary objective of this research paper is to review the literature and analyze the areas in which
Industry 4.0 technologies has implemented. This paper comes with three new classifications (1) Industry
4.0 in production and manufacturing sector (2) Industry 4.0 in specific industry and operation and (3)
Industry 4.0 for the environment and human comfortability. Manufacturing and production sectors are the
primary focus area in the past year for researchers. Almost 42 %of the papers are talking about
implementation or idea of Industry 4.0 in manufacturing and production sector. Specific sector and
operations are also in focus with the contribution of 35 % of paper, but the researchers highly neglect the
area of environment and human comfortability in the era of Industry 4.0. Although, many paper talks about
the key elements of fourth industrial revolution but the integration of these key elements in warehouse
operations seems untouched. Effect of Industry 4.0 on the environment and human role in the age of fourth
industrial revolution will be the primary area of research that needs academic attention. Some of the
significant future research direction are listed below:
The scope of research in warehouse management in terms of Industry 4.0 is very significant. Model
and framework of Industry 4.0 can be developed for the various warehouse operations with the
integration of all the possible technologies.
All the developed models for Industry 4.0 are talking about some specific case and setup. A holistic
approach can be applied to get the maximum insights into all the model.
Many frameworks of Industry 4.0 has already developed. A new prototype of smart manufacturing
can be designed to check for efficiency and effectiveness of the structure.
Integration of VEO and CPS system can be analyzed for the better decision-making process.
Model of smart home can be developed with the integration of the cyber-security system.
Effect of Industry 4.0 on the environment and human health can be analyzed.
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... Every country is struggling for a realistic and low-cost approach to tackle the issues that are occurring in different ways. Kumar et al. (2018) have explained different Industry 4.0 technologies and their advantages in solving the issues of uncertainties and supply chain risk. Ivanov (2020) suggested that the use of modern technologies has the capability to tackle the ongoing coronavirus crisis. ...
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