Industry 4.0 : Sustainability Assessment Of Manufacturing Industry

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What Is sustainable industry?

Sustainability means continue at fixed rate.

Sustainable Industry provides:
Energy efficiency
Conservation of resource
Low-waste production
Example: Sustainable Manufacturing Industries.

Industry 4.0 proposes inclusion of the characteristics of the previous industry revolution in more sustainable way.

Industry 4.0 or the fourth industrial revolution
A comprehensive industrial revolution
It incorporates globalization and emerging issues.

What is globalisation issue?

Globalization is one of the drivers of sustainable industries.

Globalization issues affect the sustainability of any development/manufacturing.

These issues are one of the most fundamental requirements.

What is Supply Chain Management? (SCM)

It is strategic function in manufacturing industry.

Many different stages including supplier, production system, and  customer.

It sequencing the stages for the whole system.

The most important stage in SCM is selection for outsourcing components/parts or raw material.

SCM must have environmental concerns such as climate change, contamination and resource consumption.

What is Information and Communication Technology (ICT)?

It is main nervous system of any manufacturing industry.

In absence of ICT, no communication within the enterprise takes place.

Share information between customer, producer, and supplier.

Examples of ICT:
Enterprise Resource Planning (ERP).

Wireless Communication Technology.

Global Positioning System (GPS).

Radio Frequency Identification (RFID) system.


How energy prices affected the industries?

For enterprise, less energy consumption brings significant economic advantages such as:

Main issues: Energy supply at reasonable price.

Increase in energy price affects sustainability.

Reduction in energy consumption from non-renewable sources and increase in energy consumption form renewable will have significant positive effect in sustainability.

What is mass customisation?

Mass customization is a business strategy that combines the advantages of mass production with the flexibility of customization, allowing businesses to offer a wide range of products or services that meet the specific needs of individual customers.

Mass customization allows businesses to offer products or services that are perceived as having higher value to customers, as they are tailored to their individual preferences.

Business Models ≅ Mass Customization

Mass customization requires a strategic approach that considers factors such as production capabilities, supply chain management, and customer segmentation.

What is the emerging issues currently in the businesses?

1. Growth of population
2. Government regulations
3. Consumption of natural resources
4. Crisis/Recession and depression
5. Technology

Why technologies is important in businesses?

It is one of the important issues in sustainability.

Advancement in technology facilitates: manufacturing with high quality products.
Low-cost products.
Reduces manufacturing time.

Role of technology advancement in global market:
Converting from traditional system to automated system.

Introducing more agility and flexibility.


Why government regulations are necessary in sustainable industries?

Government regulations are necessary to protect public and private sector.

It consists of Enterprise Requirements for achieving government purpose such as demands for better services and low cost goods.

Government Regulation prevents the manufacturing industry from unfair competition and enact laws to provide suitable environments for the employees.


What government regulations represent according to sustainability?

Employment & Labor rules represents laws:

Concerning wages/salaries
Benefits (e.g. retirement plans)
Compliance with health and safety issue
Proper working condition
Expatriate employee issue (e.g. Visas)
Equal opportunity in employment (including promotion).
Provisioning of Authority or High ranking position.

Advertisement Regulation focuses on:
Protection of customers
Firm honesty about a product
Information regulation publicly
Transparency on distribution and
manufacturing process

Environmental rules:
Maintained by Environmental Protection Agencies(EPA)
Maintains clean air, reduction of chemical effects in soil, river

Privacy Regulations:
Safety procedure to sensitive information collected during hiring  process.
Information includes ID card, names, personal information, personal history, health condition, and banking information.
Inappropriate disclosure of this information risks legal issues.

Safety and Health regulations
Ensures healthy working environment.
Enterprise must distribute information on maintaining a healthy workplace to avoid dangerous events.
Need to update safety regulation information due to yearly changes in Governments.

Why monitoring population growth is important for manufacturing industry?

It affects:
Industry growth
Food supplies
Fertility
Sociology
Economics
Politics
Industry Location
Use of Available lands

Three different category of countries based on population growth:
Developed
Emerging
Developing
Population growth of countries (developing and disadvantaged) > Population growth of countries (developed and advantaged).

Based on the United Nations (UN) report, population growth from1950 to 2050
Reduced between 32 to 13 % in developed countries.
Increased between 8 to 20 % in emerging and developing countries.
Economic view on population growth:
Pessimistic
Optimistic

Pessimistic view of population growth hinders the economic growth.
Consumes most of the economic investments in safety, need for schools, hospitals, universities.

Optimistic view of population growth:
Dissemination of knowledge and information.
Increases globalization issue such as trade and commerce.

Despite the advantages of population growth, if there is no plan to control it, it would turn out to be disaster for any developing country.

Human capital and respective skills are one of the most important aspects of manufacturing industries.

Example: A location of manufacturing industry requires politics and skill level provided by the local population.

What is Crisis/Recession and Depression?

Economic crisis takes place over a duration not more than a few months.

Recession: exponential decline in economic activity.
Commence after economic crisis arrives at the activity peak.
Completion after economy arrives at its trough.
Duration: more than few months but not more than two years.
Observable on gross domestic product (GDP), actual income, employment, industrial production, and wholesale-retail sales.

An economic crisis and recession -> observing reduction in prices of few major commodities.
Increasing productivity and reduction in cost is one of the solution.
Applying same solution, it takes more time to recover form depression.
Example of avoiding crisis -> The main economy of manufacturing location should not be based only one resources.



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