Eight Valuable Management Processes of Industry 4.0

For many manufacturers such as upgrading Industry 4.0 or catching up with the digital transformation trend, these terms are very abstract concepts. It doesn’t really help us understand the industry. In this digital age, not only are new technologies constantly appearing, but many technologies are constantly evolving and maturing. It increases the complexity of resource allocation and decision-making for those who want to transform in this area.

Like the digital transformation of industries, the upgrade of Industry 4.0 should never be cut off from a technology perspective. It should be analyzed from the perspective of thinking about business problems. Based on this problem, a solution is defined with digital technology.

For example, after the product launches in the industry, it may discover that even if the test is perfect, there will still be many different problems causing customers to use the product without problems or even use it. Currently, the industry can think of two levels, evaluate quality and after-sales service, and the most effective improvement methods. Let’s examine the eight valuable improvement processes used in Industry 4.0.

Supply / Demand Matching
Market Time
Service / After-Sales
Asset Usage
Management of Resources and Processes


Supply / Demand Matching
One of the biggest challenges for manufacturers is meeting supply and demand. What products will they produce? How much quantity will be produced? When will production start? If the answer received by the manufacturer is far from the actual request, the manufacturer will have to endure various serious negative consequences.

Insufficient raw materials, increased costs caused by temporary increases, operating costs of stock increases, and even the loss of business opportunities due to insufficient inventory are major risks borne by manufacturers, so operators must be extremely careful when anticipating demand. No high inventory, stagnant cash flow, failure to reach the current KPI, etc. Do everything possible to reduce your risk.

Traditional manufacturers often rely on multiple statistical forecast models to reduce the uncertainty of demand. Although there are many statistical models, in general, these models use historical sales data to capture common models and use them as a benchmark. Determining the production volume. When this type of pattern encounters a repeating pattern, the demand is not a repeating pattern.

At the micro-level, demand can be affected by marketing activities, changing trends, movements of competitors, and even entry of digitally distorted players. At the macro level, extreme weather factors such as typhoons and earthquakes, economic factors such as market imbalances, unemployment, and financial turmoil will also greatly increase demand uncertainty.

And this is the advantage that the digital capabilities of the first two can bring to manufacturers.

Time to market
As globalization intensifies, sales and production locations are often located in different countries.

When answering market time, the goal is also very important. The answer to a CPG company maybe months, the answer of a high-tech company is usually years, and when you ask Inditex the answer is two weeks.

In fast-paced modern times, marketing time is often the key to whether the manufacturing industry seizes the opportunity. To shorten marketing time, many companies skipped several stages in the production process or lowered the standards for certain stages to speed up production. However, this will not only lead to a reduction in product quality but may also extend the time to market due to forced performance improvement.

Service / After-Sales
In the past, the value provided by after-sales services was often overlooked by manufacturers. As manufacturers began to recognize the importance of the level of service, more and more companies began to consider how to integrate after-sales service into their existing operating processes and how to add new revenue streams for the organization.

At the same time, we can say that after-sales service is far from being limited to product companies. Industrial OEMs have huge business opportunities in the aftermarket. An OEM Aftermarket reviewed its lifetime value and found that essential services would contribute 90% of growth in short term plans.

Asset Usage
The use of assets seems deeper than overall equipment efficiency (OEE) and discusses the utilization and production efficiency of all installed equipment.

In a period when any product should not be wasted and accurate, looking at the use of assets and creating real strategies to optimize it will give manufacturers a certain competitive advantage.

Operations can calculate four levels of asset utilization, output, total equipment efficiency, unplanned downtime, and maintenance expenses If the asset utilization rate of the organization is below 70%, the sector loses a great opportunity to invest in an investment. Among assets and projects with higher rates of return, competitors have the opportunity to lose their advantage of entering the value line.

At the asset utilization level, Industry 4.0 provides a complete solution. Routing flexibility, production flexibility, remote monitoring, and predictive maintenance technologies allow operations to create a truly flexible production system and significantly increase asset utilization.

Management of Resources and Processes
Industry 4.0 offers solutions on how resources can be used more effectively and how production processes can be improved. With big data, the Internet of Things, and automation technologies, manufacturers can think about how to optimize resources and processes from three levels – smart energy consumption, Smart Party, and real-time output optimization.


Since the advent of electricity and machinery, the manufacturing industry has consistently tried to minimize labor costs. Ford’s founder introduced the production line system further in 1913. We saw that robots capable of learning with modern technology join the production line and work with humans.

The potential of these technologies to reduce labor costs cannot be ignored by the industry. The market for smart robots

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