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Procedia Manufacturing 38 (2019) 1691–1696
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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 scientific committee of the Flexible Automation and Intelligent Manufacturing 2019 (FAIM 2019)
10.1016/j.promfg.2020.01.112
10.1016/j.promfg.2020.01.112 2351-9789
© 2019 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 scientic committee of the Flexible Automation and Intelligent Manufacturing 2019 (FAIM 2019)
Available online at www.sciencedirect.com
ScienceDirect
Procedia Manufacturing 00 (2019) 000–000
www.elsevier.com/locate/procedia
2351-9789 © 2019 The Authors, Published by Elsevier B.V.
Peer review under the responsibility of the scientific committee of the Flexible Automation and Intelligent Manufacturing 2019
29th International Conference on Flexible Automation and Intelligent Manufacturing
(FAIM2019), June 24-28, 2019, Limerick, Ireland.
Determination of Changes in Process Management within Industry
4.0
Andrea Benešováa, Martin Hirmana, František Steinera, Jiří Tupaa*
University of West Bohemia, Department of Technologies and Measurement, Univerzitní 8, Pilsen 301 00, Czech Republic
Abstract
The company's ability to adapt to rapid market changes will be among the key factors for Industry's competitiveness within
Industry 4.0. The basic of flexibility is quick respond to customer requirements and well-set and controlled production processes.
Processes of Industry 4.0 will be different from existing processes, not only in terms of using new technologies such as
digitization or augmented reality, but also in terms of management and support processes. The main aim of the article is possible
changes determination of process management within Industry 4.0. For that, the current production process will be compared
with the process in Industry 4.0. The described changes within Industry 4.0 will also have an impact on the organization
architecture of company. The changes will be also in the production environment and in the supply chain. The described changes
in the process management will also have an impact on the company risks. The main risks of changes within Industry 4.0 will be
summarized in the article.
© 2019 The Authors, Published by Elsevier B.V.
Peer review under the responsibility of the scientific committee of the Flexible Automation and Intelligent Manufacturing 2019
Keywords: Digitization; Industry 4.0; Process Management; Risk Management; Smart Factory
1. Introduction
One of the important goals of each business is its competitiveness, i.e. the promotion of a particular business. The
same goal will be important also for smart factories in the future. Competitiveness of companies depends on their
Available online at www.sciencedirect.com
ScienceDirect
Procedia Manufacturing 00 (2019) 000–000
www.elsevier.com/locate/procedia
2351-9789 © 2019 The Authors, Published by Elsevier B.V.
Peer review under the responsibility of the scientific committee of the Flexible Automation and Intelligent Manufacturing 2019
29th International Conference on Flexible Automation and Intelligent Manufacturing
(FAIM2019), June 24-28, 2019, Limerick, Ireland.
Determination of Changes in Process Management within Industry
4.0
Andrea Benešováa, Martin Hirmana, František Steinera, Jiří Tupaa*
University of West Bohemia, Department of Technologies and Measurement, Univerzitní 8, Pilsen 301 00, Czech Republic
Abstract
The company's ability to adapt to rapid market changes will be among the key factors for Industry's competitiveness within
Industry 4.0. The basic of flexibility is quick respond to customer requirements and well-set and controlled production processes.
Processes of Industry 4.0 will be different from existing processes, not only in terms of using new technologies such as
digitization or augmented reality, but also in terms of management and support processes. The main aim of the article is possible
changes determination of process management within Industry 4.0. For that, the current production process will be compared
with the process in Industry 4.0. The described changes within Industry 4.0 will also have an impact on the organization
architecture of company. The changes will be also in the production environment and in the supply chain. The described changes
in the process management will also have an impact on the company risks. The main risks of changes within Industry 4.0 will be
summarized in the article.
© 2019 The Authors, Published by Elsevier B.V.
Peer review under the responsibility of the scientific committee of the Flexible Automation and Intelligent Manufacturing 2019
Keywords: Digitization; Industry 4.0; Process Management; Risk Management; Smart Factory
1. Introduction
One of the important goals of each business is its competitiveness, i.e. the promotion of a particular business. The
same goal will be important also for smart factories in the future. Competitiveness of companies depends on their
1692 Andrea Benešová et al. / Procedia Manufacturing 38 (2019) 1691–1696
2 Author name / Procedia Manufacturing 00 (2019) 000–000
competitive advantages. The competitive advantage of a company is represented by various factors such as property
ownership, technology, resources, highly qualified employees, but in the first place by flexibility. The company's
ability to adapt to rapid market changes will be among the key factors for Industry's competitiveness within Industry
4.0. [1] The development and implementation of digitization and new technologies into production have caused
changes in the industry, referred to as Industry 4.0. Industry 4.0 marks a new industrial revolution based on
connection of virtual and real world. The main vision of Industry 4.0 is the emergence smart factories. [2] In the
smart factory a machines will be connected to the Cyber-physical systems (CPS). This system will allow the
communication and also cooperation of independent units (sensors, machines). The units will be able to decide
independently, manage the assigned technological units and become an independent and full-fledged member of
complex production processes. [3] The building blocks of smart factory are the nine foundational technologies –
Autonomous robots, Internet of Things (IoT), Big data, Simulation, Horizontal and Vertical system integration,
Cloud computing, Cybersecurity, Additive manufacturing and Augmented reality.
These nine technology trends will transform production into a fully integrated, automated and optimized
production flow. Production processes must be connected to production planning, supply and customer processes.
The timely analysis of the obtained data (Big Data) from the production processes wi ll be important for planning
resources, maintenance and managing of the flexible production. [4] Therefore, the company is forced to constantly
adapt its business to the external influences of the market. Hammer and Champy describe these impulses as the
"3C". Each C then represents one impulse - customers, competition and change. [5] The basic of flexibility is quick
respond to customer requirements and well-set and controlled production processes. This is mainly related to
business process management (BPM). Process management is characterized as a systematic activity that includes
identification, description, measures, management, evaluation and improvement of processes. Different systems,
methods, tools are used for this systematic activity. Management thus contributes the creation of new value in the
production process. But the Industry 4.0 introduces a new approach to organizing and managing production.
One research question is linking with the future of the process management and its implementation for concept
Industry 4.0. This paper tries to find answer for mentioned research question based on review of suitable
technologies and methods for BPM and risk management implementation.
2. Literature review
Currently various unique process control and optimization solutions are used for process management. These
solutions combine Internet of Things (IoT) technology and advanced process control methods based on
mathematical modeling, predictive control or neural networks. Mathematical method is used to model a controlled
system in detail and propose optimal settings for an existing management system for higher efficiency, higher
quality, or resource reduction. [6] Furthermore, IoT technology is also used to measure process performance itself or
only certain desired factors (pressure, temperature or humidity). [7] This industrial revolution will affect not only
changes in manufacturing processes (implementation of new technologies) but also have an impact on the
management of processes (Lean 4.0), related processes (supply chain), the organization architecture of company and
Human Resources. [8] The Lean principles will be changed by the integration of specific Industry 4.0 tools and
methods. The application of modern information and communication technologies (ICT) into Lean Production
Systems can improve the performance of Lean Productions Systems by gaining more efficient production and
logistics processes. [9]
2.1. Business process management (BPM)
Business Process Management (BPM) is a set of activities that relate to planning and performance monitoring of
company´s processes. These activities are design, modeling, execution, monitoring, and optimization. Management
is done over time and in the following steps – identification of process, established of goals, determination of the
control algorithm, organization, decision and control. [10] The basis is the model of the process itself. In the Fig. 1,
there is description of the production process.
Andrea Benešová et al. / Procedia Manufacturing 38 (2019) 1691–1696 1693
Author name / Procedia Manufacturing 00 (2019) 000–000 3
Process
Plan
Do
Check
Act
Fig. 1. Description of production process
2.2. General production process model
Each process is determined using these attributes:
• Inputs and Outputs of process
• Resources of process
• Process boundaries
• Owner
• Supplier/Customer
The customer is important for the analysis of the company's basic processes. The company must produce
products that respond to the customer's requirements. For this reason the production process must be flexible,
adaptable and varied. The customer may be external or internal. An external customer is a consumer who pays for
the final product (output). An internal customer is a customer within the organization or the organization itself (the
organization is a customer for its supplier). Another important attribute is the process resources, resources are
further divided into human, financial, information and infrastructure. Regulators are the various laws, standards and
internal regulations that affect the process. Deming or PDCA cycle is a management method used for control and
continuous improvement of processes. This method has four step – plan (planning the intended improvement), do
(implementation of plan), check (verification of the result of the implementation compared to the original plan) and
act (implementation of improvements to practice).[11][12] This is a description of the general production process
model by the BPM that will compare with Industry 4.0 production process model.
3. Comparison between current production process with the process of Smart factory
3.1. Production process of smart factory
The smart factory production process can be defined as connected and flexible manufacturing system. The
devices will be connected by the Cyber-physical systems (CPS) and Internet of Things (IoT). A machine to machine
communication (M2M) will be created. This manufacturing system will be continuous stream of data (Big Data)
from production devices to learn and adapt production process to new demands. [13] The digital image of factory
will be obtained in real time from the visualization of this data. This digital twin of factory will be necessary for
manage the production process. Using a digital twin, companies can experiment, monitor, predict, simulate, and
decide different situations in production. So companies can fine-tune all the details, but also any device errors
Input
Output
Management
Regulators
Resources
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4 Author name / Procedia Manufacturing 00 (2019) 000–000
without the risk of time or financial loss. [14] This is also related to Cybersecurity, the data from production and
products will represent know-how of company. As a result, the number of cyberattacks is expected to increase. The
attacks will be mainly aimed at disrupting the company's production process. This also will relate to changes in
process regulators. The input of process will be a RFID sensor, QR code or barcode that will contain all information
about product. Each product will be unique to the customer's requirements. The machine will communicated with
sensors and on the basis of the necessary information from the sensor, adapt the production of the product and
supply chain management. The IoT sensors can be used for communication between machine and supplier of
material. At present, the process owner was responsible for the process. In most cases, the process owner is a person,
for example company owner or employee. The process owner in smart factory can be a machine, system or a person.
Because the machines and the system will customize the production process on the basis of the previously collected
data. But the person who manages the entire system can also be the process owner. Changes in organizational
structure and human resources also relate to this issue. It is expected that some professions will be replaced because
only qualified employees will be able to control the new technologies. Companies will primarily need employees
with skills and knowledge in information technology, for example to Cybersecurity and Data analysis sector. [15]
3.2. SIPOC (Supplier, Input, Process, Output, Customer)
The abbreviation SIPOC is a composite of the first letters of the English words: Supplier, Input, Process, Output
and Customer. It is another method used to describe the process and it is a tool for process improvement. Also we
use this method for description of general production process for compare with production process of smart factory.
In the Table 1., there is a description of general and simplified production process by SIPOC. The brainstorming
with experts was used for creation of this SIPOC.
Table 1. SIPOC of general production process
S
I
P
O
C
Customer Order Receipt of the order
Product
specification Production
Production
Product
specification Preparation of production plan Production plan Manager of production
Manager of production Order Order of materials (warehouse)
Delivery of
material Assembly line
Assembly line
Material
Production of the product
Product
Quality Department
Quality Department Product Quality control Final product
Separation of
packaging
Separation of
packaging Final product Packaging of the product Packaged product Supplier
Supplier Packaged product Delivery Packaged product Customer
If we compare this simplified manufacturing process with the smart factory process, we will see that major
changes occur with the suppliers and customers of the process. The customer and order of the product remains the
same but the process of receipt of the order and output can be change. For the order, the customer can use the IoT
service and then the output will be a sensor that will contain all the specifications of product from the customer. The
customer of this sensor will be a machine that can communicate with this sensor and other devices in production.
Using this communication, the system itself will plan and set the production plan and production process. The
system and machine will contact the material supplier if necessary by the IoT sensors. The quality control of product
should be performed by an employee. Packaging of the product will be provided by the machine which then contacts
the supplier.
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Author name / Procedia Manufacturing 00 (2019) 000–000 5
3.3. Risk Management
The implementation of new technologies will impact not only Business Process Management but also to Risk
Management. To assess the risks, the company will be using the digital twin of production that will enable company
predict, simulate different situations in production and thus reduce the potential risk. Within Industry 4.0, new risks
are emerging for companies, the cybersecurity and Human Resources will be the biggest risks. The semi-quantitative
risk assessment method was used for evaluating risks. The analysis of risks was provide in four steps – identification
of risk, evaluation of probability, evaluation of impact and calculation of Risk value (RV). Risk identification was
conducted based on brainstorming with experts and literary research. Then, impact (I) and probability of occurrence
(PoO) were established for each risk. The value and levels of impact (I) are 1 (very low), 2 (low), 3 (medium), 4
(high) and 5 (very high). The value and levels of probability of occurrence (PoO) are 1 (rare), 2 (unlikely), 3
(possible), 4 (probable) and 5 (highly probable). [16]
()= () × () (1)
The risk value (RV) is calculated according to the equation. The risks can be classified by the risk value into
several categories. The most common categories of risk value (RV) are 1 to 3 (low), 4 to 9 (medium), 10 to 15 (high)
and 20 to 25 (very high). [17]
Table 2. The list of identified and evaluated risks
Identified risk
Probability
Impact
Risk value
Lack of own financial resources
4
5
20
Subsidy from the state
4
3
12
Lack of qualified employees
4
5
20
Lack of Cybersecurity
4
5
20
Lack of knowledge about Industry 4.0
4
5
20
Improper maintenance of the machine
2
5
10
Power outage
3
5
10
CPS system failure
3
5
15
Poorly evaluated data (Big Data)
2
5
10
Loss of know-how
3
5
15
Loss of customers
2
5
10
Production of defective product
2
5
10
Non-innovative product
3
5
10
Damage of sensor with product specification
1
5
5
IoT network failure
3
5
15
Crash (fire, chemicals)
1
5
5
4. Conclusion
Based on a comparison of the general process with the intelligent manufacturing process, it was found that from
the point of view of the general description of the process no changes will occur. Process attributes also will be
inputs and outputs, resources, process boundaries and supplier/customer. Changes appear only within individual
attributes and division of processes. Because every smart factory production must to include the following
Autonomous robots, Cyber-physical system and Internet of Things (IoT). The autonomous robots, Cyber-physical
system and Internet of Things (IoT) will be a mandatory resources of production process. Cyber-physical system can
also be understood as a management process of smart factory production process. On the contrary, Internet of
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Things (IoT) can be understood as a supporting process. Another change is in attribute of customer, customer can be
person but also machine or manage cyber-physical system (CPS). In the production process will appear new inputs
in the form of sensors or codes (QR code, barcode) that will contain product specifications. Another change in terms
of Business Process Management will be in the regulators of production process. As a result of the expected increase
of cyber attacks, laws and standards will need to be updated. Similarly, standards relating to place the product on the
market or customer protection. Horizontal and Vertical system integration will occur another change in terms of
enterprise architecture. This will remove hierarchical levels to ensure a better flow of information. Temporary
parallel structures will also be introduced such as project or realization teams. Following a risk analysis, it was
found that very high risk of Industry 4.0 are lack of own financial resources, lack of qualified employees, lack of
Cybersecurity and lack of knowledge about Industry 4.0. Corrective measures should be established for these risks.
Acknowledgements
This research has been supported by the Ministry of Education, Youth and Sports of the Czech Republic under
the RICE – New Technologies and Concepts for Smart Industrial Systems, project No. LO1607 and by the Student
Grant Agency of the University of West Bohemia in Pilsen, grant No. SGS 2018-016 "Diagnostics and Materials in
Electrical Engineering" and by the Technology Agency of the Czech Republic under the project Software platform
to accelerate the implementation of management systems and process automation — project No. TH02010577.
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