1. ACC 2171 SECTION 1
ACCOUNTING AND BUSINESS INFORMATION MANAGEMENT
TITLE:
INDUSTRIAL
REVOLUTION 4.0
GROUP: 5
PRESENTED TO:
MADAM NORSYAHIDA BINTI MOKHTAR
PREPARED BY:
AIN ATIYA AZMI BINTI NAZMI (1701222)
ALY MAIGA ( 1714991 )
NUR SYAZWANI BINTI SAZAKI (1715406)
AIN NAJIHAH BINTI MOHD ROZI (1712972)
BALKIS WADO (1523772)
2. Table of Contents
No. Subtitle Page
1. Evolution and Definition of Industrial Revolution 4.0 2 - 3
2. Who is an Accountant? 4
3. The Importance for Current/Future Accountant to Seek Knowledge
or Skill on Industrial Revolution 4.0
5
4. Summary of Journal Articles
1)Opportunities of Sustainable Manufacturing In Industry 4.0
2)Industry 4.0: Towards Future Industrial Opportunities and
Challenges
3)A Categorical Framework of Manufacturing for Industry 4.0 and
Beyond
4)A Maturity Model for Assessing Industry 4.0 Readiness and
Maturity of Manufacturing Enterprises
5)Industrie 4.0 : Hit or Hype?
6)Towards Industry 4.0 - Standardization as the crucial challenge
for highly modular, multi-vendor production systems
6-14
1
3. Industrial Revolution 4.0: Evolution and Definition
In this paper we will be talking about the industrial revolution in particular 4.0, and
we will start by introducing the beginning of industries and make our way up till
contemporary days.
In the past, 18th
century in specific the way industries were differ from now by far,
they used to rely on mechanical production equipment powered by water and steam and this
was around 1784 it was referred to as the first mechanical loom.
And later at the second revolution in 1870, what was first assembly line
slaughterhouse, it was through the introduction of a division of labour and mass production
with the help of electrical energy.
After this in the 20th
century the third revolution they have adopted the use of
electrical and IT systems that further automate production, what was labelled as the first
programmable logic controller in 1969.
And the fourth industrial revolution which is the focus of this paper;
manufacturing operations had become digital, products became carriers of information
and steer themselves through the production process.
This industry is connecting the real and virtual worlds; the internet of things.
2
4. · The results of all this progress is as follows:
Increase transparency of value chain , integrating demand and supply, maximizing your
operational performance, analysing your data intelligently, transforming data into
actionable information, making your operation smarter, expanding existing portfolio,
developing new business models, creating new sources of revenue, efficient use of assets,
lower operational cost, and improving ROI.
The fourth industrial revolution is relying on the use of cyber-physical systems.
· Using cyber/robotic systems
Industrial revolution: is a name for the current trend of automation and data exchange in
manufacturing technologies. It includes cyber-physical systems, the internet of things and
cognitive computing.
· ITS IMPORTANCE :
1. Smart production allow manufacturer understand how
products perform in a customer environment.
2. It enables higher productivity, improvements, inequality, shorter time to
market, and new types of business model.
3. Digitalization of the entire value chain which will lead to the upgrade of the
entire sector e.g. automotive of aerospace.
· Benefits
I. Operational efficiency
II. Faster
III. Save time
IV. Reduce cost
All of these changes impact businesses, government, and people as well.
3
5. Who is an Accountant?
Generally, to the laymen, an accountant is just a person whose concern only involves
the calculation of money for the company especially in a year during tax season but in
fact, accountants work behind the scenes for the whole year. Accounting is the financial
backbone of a business so the accountant becomes a significant career to help people or
company to understand their goals and plans and how to achieve them and to take
necessary steps.
The primary task of accountants is to prepare and examine the financial records or
business transactions on behalf of an organization and to report on the company’s
performance to management and identify issues regarding financial statements. Also,
they must ensure that those records are accurate. For example, the taxes are paid properly
and on time. In addition, they perform overviews of the financial operations of a business
in order to make it run efficiently and smoothly. They also assist the management team to
create strategies and plans of action for enhanced financial prosperity. As a result, these
are the major responsibilities of accountants:
· Examine statements to ensure accuracy
· Ensure that statements and records comply with laws and regulations
· Compute taxes owed, prepare tax returns, ensure prompt payment
· Inspect account books and accounting systems to keep up to date
· Organize and maintain financial records
· Improve businesses efficiency where money is concerned
· Make best-practices recommendations to management
· Suggest ways to reduce costs, enhance revenues and improve profits
· Provide auditing services for businesses and individuals
Source: (allbusinessschools.com)
4
6. The Importance for Current/Future Accountant to Seek Knowledge or Skill on
Industrial Revolution 4.0
It is predicted that in the future, accountants will no longer be needed in businesses.
This is because the faster industrial revolution and new technology may replace this
profession. However, according to the Science and Research Institute of Social and Economic
Development (2016), in five years the role of accountants will still be important in the social
and economic system of every country because the accountants have been regulated in social
and economic relations. Also, accountants provide necessary information for decision
making. Therefore, accountants need to be well equipped in information technology and
communication skills in order to cope with Industrial Revolution 4.0.
Firstly, a current or future accountant should be alert about our global trends.Since the
accountants are who concern and involve specifically with the accounting and its current role
needs to be identified. For example, it displays the essence of the fact of economic life and
certifies their legal evidence. Moreover, it has the role and function in every sector of the
economy such as agriculture, industry, construction, trade, tourism, all types of transport and
so on. Furthermore, the accountant will be the one who controls the performance of the
targets during the reporting period and provide information to plan the strategy and predict
economic development.
The accounting profession in the future will be under the new arrangements so it may
be modified. As current or future accountants, they may not only sit in the office because the
latter will be replaced by virtual offices. Thus, the huge development of any information
technology will only need to turn on the computer and go online or the Internet. For instance,
the accountant can use the benefit of this technology to monitor the performance of remotely
working employees. As a result, telework is unavoidable future.
To summary, it has been justified that on the industrial revolution, the future
accounting will not only survive in the economy as the base of information and a regulative
institution, but it helps the information technologies to improve and eliminate shadow
economy. The accounting profession will certainly experience changes and will increasingly
make use of software in practice.
5
7. Summary of Journal Articles
1) Opportunities of Sustainable Manufacturing In Industry 4.0
Author: T. Stock, G. Seliger
Year published: 2016
Journal title: Procedia CIRP
Volume number: 40
Pages: 536-541
This article outlines the industry focus on sustainability in its value creation. Due to
globalisation, worldwide demand for capital and consumer goods is increasing at an
exponential rate. Thus, Industry Revolution 4.0 provides immense opportunities for
sustainable manufacturing both at the micro and macro levels.
On the micro level, a company can preserve the use of its equipments by retrofitting
or upgrading. In this way, it can install easily the the upgrade function required for a certain
process on existing equipments without having to purchase new equipments to fulfil that
specific function. This results in lower cost to the company. Next, there will be broader
opportunities for staff training as human workers. Humans remain as organizers in R 4.0 and
must adapt to handle new ICT technologies. Training will serve as a motivation to the
workers as they can fine-tune their skills. The practise of decentralization where workers can
make decisions on hands-on problems as they occur will also increase work satisfaction in a
rapidly automated factory.
On the macro level, IR 4.0 will reduce the negative impact on the environment.
Smart factories are self-sufficient in their energy resources as they are equipped with energy
from external smart grids. They are both the producer and the consumer of energy. The smart
grids match the energy generation from suppliers with the demand of consumers to ensure
accurate allocation of energy and prevent wastage. Moreover, they also operate using fresh
water reservoir and renewable energy resources which are environmentally-friendly and will
not pollute like their alternative fuel resources.
Next, IR 4.0 can aid in cross-company networking. A company can cooperate to
realise its competitive advantage by exchanging products, materials, and energy with other
companies to further increase efficiency. For example, inbound logistics from supplier
6
8. company are attached with QR codes for easy identification. They are part of the Cyber
Physical Systems (CPS) and can self-organize in their required manufacturing processes.
After being carried by automated guided vehicles to the customer company, the supplies can
operate themselves in their manufacturing flows by interchanging smart data with equipments
and other materials in the factory which have also been embedded with CPS. Exchanging
smart data on a local level can create an industry symbiosis.
2) Industry 4.0: Towards Future Industrial Opportunities and Challenges
Author: Keliang Zhou, Taigang Liu, Lifeng Zhou
Journal Title: 2015 12th International Conference on Fuzzy Systems and Knowledge
Discovery (FSKD)
Publication Year: 2015
Publication Month: 08
This paper summarizes the key aspects of IR 4.0 which will open the path for
opportunities and challenges in order to realise and execute those key aspects. The first key
aspect is Cyber Physical System which is the digitalisation of materials and equipments in
the value creation as a platform to achieve Cyber Physical Production System. Secondly, the
internet of things (IoT) where every entity in the value creation is equipped with QR codes,
laser scanner, and GPS for easier identification and locating. Thirdly, cloud computing is
used to administer database with on-demand access, high performance and low cost. Fourthly,
big data is used to store large volume of data uploaded to a cloud. The data can be analyzed
to form decisions regarding the production process.
Upon realisation of the key aspects, a manufacturing company can achieve the
opportunities of being smart factory with intelligent production. These two major themes
can be achieved by integrating smart devices with ICT. Next, it can build a specialized
network where all the digitalised components in the value creation can send signals to each
other and self-organise themselves in the manufacturing line. Furthermore, it can accomplish
horizontal, vertical and end-to-end integration. Communication in the future will not be
7
9. limited to just man-to-man interaction and man-to-machine interaction, but will expand to
machine-to-machine and service-to-service interaction.
However, IR 4.0 is not without challenges. The development of smart devices need
to be specifically configured to each manufacturing company as the requirements and
processes will differ. Thus, it will take considerably long amount of time to tailor-made these
devices and consume large amount of R&D cost which is treated as sunk costs to an
organisation. Next, the construction of the network environment require cooperation
between different systems. The dynamics of the physical system and the abstracts of
information network have to be in proper synchronization in order for decisions to be made in
real time. Moreover, the usage of big data poses questionable threats to the organisation in
terms of cyber espionage. Lengthy precautions and advanced security technologies need to be
implemented to ensure privacy against hackers.
3) A Categorical Framework of Manufacturing for Industry 4.0 and Beyond
Author: Jian Qin
Year published: 2016
Article title: A Categorical Framework of Manufacturing for Industry 4.0 and
Beyond
Journal title: Procedia CIRP
Volume number: 52
Technology is changing day by day in our world. We can see the development of
technology giving impact to the industries. According to the Wahlster (2012), manufacturing
processes have become increasingly complicated, automatic and sustainable, which means
people can operate machines simply, efficiently and persistently. Moreover, modern
manufacturing plays an important role in the world especially for European countries. About
17% of the GDP is accounted for by industry, which also creates approximately 32 million
job positions with several supplementary occupations in the European Union (Commision,
2015). However, in recent years the industries of European countries and Western European
countries are facing many problems due to modern manufacturing. These problems drive the
development of industrial technologies for reducing the labour force, shortening the
8
10. developing time of the product, using resources efficiently, and so on, of which the
CyberPhysical System (CPS) and Internet of Things (IoT) are two state-of-the-art
technologies advancement within the last decade [1]. According to Lee (2013), due to
development of these technologies, a new concept, Industry 4.0, was introduced by German
during the Hannover Fair event in 2011, which symbolises the beginning of the 4th
industrial
revolution.
There are many factors that influence the manufacturing system, which are ‘types of
operations’, ‘number of workstations’, ‘automation level’, and ‘system flexibility’. Based on
these factors, six general types of manufacturing system are defined as ‘single-station manned
cells’, ‘single-station automated cells’, ‘manual assembly system’, ‘automated assembly
system’, ‘cellular manufacturing system’ and ‘flexible manufacturing system’ (Groover,
2007). When we compare the current manufacturing system with the concepts of Industry
4.0, we can see that there is a ‘gap’ between them. This means that only the recently
automated assembly system (single-station automated cell, automated assembly system,
flexible manufacturing system, computer-integrated manufacturing system and
reconfigurable manufacturing system) are involved because the IR 4.0 is discussed
concerning the digital level manufacturing. Thus, there is still a long way to go to improve
manufacturing up to the required level to match all concepts with all dimensions, especially
consciousness, which is the main aim and objective of this research (Lee, 2013).
The intelligence of these technologies is different, so they can be classified as Control
level, Integration level and Intelligence level which are ranking by low-intelligence to high
intelligence. Moreover, they are many reasons why the production system is the target range
of this research and one of the reason is because this system is the core section of the
industry. Secondly, it is easy to apply the technologies to the production system because this
system is the most related to engineering. Lastly, the effectiveness, yield and cost of
production are measured simply and accurately in the production system.
9
11. 4) A Maturity Model for Assessing Industry 4.0 Readiness and Maturity of
Manufacturing Enterprises
Author: Andreas Schumacher
Year published: 2016
Article title:
Journal title: Procedia CIRP
Volume number: 52
The vision of IR4.0 might be regarded as radical especially to small to medium sized
manufacturing companies. They are unsure whether the substantial financial investment to
realise these concepts will give significant impact to overall business strategy. Therefore, the
aim of this paper is to test and apply a maturity model where the state of development of
individual manufacturing companies can be in alignment to IR4.0 vision. The maturity model
consists of basic enablers as well as organizational aspects and at the end of this paper, its
applicability is proven in real production environment.
A maturity model measures the readiness state towards a specific target, which in this
case is IR4.0. To develop the model, the authors have sent a questionnaire survey of 123
questions, each one with a Likert-scale rate from 1 (not important) to 5 (very important).
Answers from practitioners and researchers are automatically processed by a software to
calculate its weighted average thus determining whether a specific item should be put in the
model or not. After the result of 62 material items, 9 company dimensions are being
concluded for the maturity model which are:
1- strategy,
2- leadership,
3- customer,
4- product,
5- operation,
6- culture,
7- people,
8- governance
9- technology.
The resulting maturity items are then used in another questionnaire sent to enterprises
which have already engaged on their process towards 1R4.0 for assessment. They can utilise
knowledgeable internal managers, or seek external auditors as well as carry out
10
12. benchmarking with companies of similar industry regarding their progress. As a result,
companies can identify which dimensions need more efforts in order to mature. In
conclusion, this model provides guidance to manufacturers to reflect on their current
capabilities in IR4.0 and develop the next action plans to further increase their maturity state.
5) Industrie 4.0 : Hit or Hype?
Author: Rainer Drath and Alexander Horch
Journal Title: Industry forum ( IEEE INDUSTRIAL ELECTRONICS MAGAZINE )
Publication Year: 2014
Publication Month: 6
This article is an argument on whether Industrie 4.0 is a hit or hype. The author
started with a statement that says Industrie 4.0 is understood as the application of the generic
concept of cyber physical systems (CPS) to industrial revolution systems which leads to a
system called cyber physical production system. North America have brought similar ideas
under the name Industrial Internet. It has a similar technical basis with Industrie 4.0 but the
application is broader than industrial production as it also includes smart electrical grids.
The author focuses on the core ideas and industrial requirement for Industrie 4.0.
They first introduce the first three industrial revolution which is :
- Industrie 1.0 : mechanical looms driven by steam engines (mechanization)
- Industrie 2.0 : include machine in the labor ( electrification )
- Industrie 3.0 : digital programming of automation system (digitalization)
Before the starting of the industrial revolution, manual labor dominated the production which
was when the flexibility is the highest. Flexibility is one of the main things that drive
Industrie 4.0 behind the other industry. However, going through changes and introduction of
new things such as technology urgets he industry to revolve.
Introduction of Internet technologies into industry is the major technical background
of Industrie 4.0 which is often mixed with corresponding future visions. It is closely related
to Cyber Physical System which can be understood using these hypothesis :
11
13. - Hypothesis 1 : communication infrastructure in production system will
become more affordable
- Hypothesis 2 : field devices, machines, plants and factories (including
individual products) will increasingly be connected to a network
- Hypothesis 3 : field devices, machines, plants and factories (including
individual products) will become able to store documents and knowledge
about themselves outside their physical body in the network (it is updatable
and available in latest version)
These hypothesis can be put into a scenario with combination of available
technologies in a new way. This is possible if the three level of requirement to form CPS is
available :
- The physical objects
- The data models of the mentioned physical objects in a network infrastructure.
- The services based on the available data (algorithms)
Based on this concept, systems could be virtually integrated, tested and optimized.
The digital factory and the virtual commissioning would be accessible to every authorized
body. Production planning could be transformed by autonomy optimization from algorithms.
Products could navigate autonomously through the production line.
Some basic requirements which should be followed by companies, organizations and
universities while they work on Industrie 4.0 was introduced :
- Investment protection : introduced step by step into the existing plants
- Stability : must not compromise production (neither by disturbance nor by a
breakdown)
- Data Privacy : access to production related data and services need to be controlled
- Cybersecurity : prevent unauthorized access to production systems
These requirements need to be fulfilled for industrial acceptance. The author
concluded that Industrie 4.0 is a phenomenon that will come inevitably, whether we want it or
not. It is a potential hit if all contributing parties collaborate well to overcome the challenges.
12
14. 6) Towards Industry 4.0 - Standardization as the crucial challenge for highly modular,
multi-vendor production systems
Authors: Stephan Weyer*, Mathias Schmitt**, Moritz Ohmer***, Dominic
Gorecky****
Year of publication: ( 2015 )
Pages: 579-584
This paper highlights the vision of the industrial revolution and how the internet of
things has made the production system in factories flexible, and it aims to replace the
presented solutions which are a vendor-specific or isolated production system, by more open
and standardized solutions, to make industry 4.0 a success.
The involvement of ICT in businesses is massive, and everything is automated now;
especially in factories. The current trend which is referred to as 4th industrial revolution
which is the transformation of today’s factories into smart factories can overcome the
challenges of the market shorter product life, customized products, and global competition.
The key to success is multi-vendor interoperability of automation technology, and this can
only be achieved through the smart factory.
The flexible assembly concept was introduced to change the production environment
system. One of The Smart factory’s objectives is to overcome the vendor-specific,
stand-alone solutions, and a new multi-vendor and highly modular production system show
such a solution.
This new project went the standardization process between the technology providers,
integrators and end-users which was divided into several key stages. In the first instance,
interface requirements for such a plant structure have been analysed and a variety of
approaches has been pursued, jointly discussed and prioritized. Regarding the heterogeneous
environment, mechanical, electrical as well as communication standards were finally defined
to guarantee such a smooth technical interaction between all these vendor-specific systems.
Under Communication Standards, it highly implies that there is no direct connection
between each vendor-specific module, neither in a mechanical or electrical way nor in a
communication sense. And they were crucial issues with respect to the new findings, in the
13
15. Production line and process, Plug and Produce, Smart Infrastructure, Manual Work Station,
and Control Architectures.
The paper also suggests that there are other shortcomings of modern automation
components which need to be addressed to make modular production line feasible for critical
production environments, outside of the lab environment.
The application of future industry 4.0 aspects will need new qualification, and the
industrial partners are tackling this by developing and providing appropriate teaching and
research platform.
A seamless conversion of such reconfigurable production systems into the digital
world must be realized by a manufacturer’s independent way. Nevertheless, it still has a
strong demand for future research activities within a network of industry and research.
14
16. References
allbusinessschools.com. (n.d.). Retrieved October 14, 2018, from
https://www.allbusinessschools.com/accounting/job-description/
Horch, R. D. (2014, 6). Industrie 4.0 : Hit or Hype? Retrieved 10 4, 2018, from iEEE
Xplore Digital Library: https://ieeexplore.ieee.org/document/6839101
Keliang Zhou, T. L. (2015, 8). Industry 4.0: Towards future industrial opportunities
and challenges. Retrieved 10 1, 2018, from iEEE Xplore Digital Library:
https://ieeexplore.ieee.org/document/7382284
Qin, J. (2016). A Categorical Framework of Manufacturing for Industry 4.0 and
Beyond. Retrieved 10 1, 2018, from ScienceDirect:
https://www.sciencedirect.com/science/article/pii/S221282711630854X
Schumacher, A. (2016). A Maturity Model for Assessing Industry 4.0 Readiness and
Maturity of Manufacturing Enterprises. Retrieved 10 2, 2018, from
ScienceDirect:
https://www.sciencedirect.com/science/article/pii/S2212827116307909
Stephan Weyer*, M. S. (2015). Towards Industry 4.0 - Standardization as the crucial
challenge for highly modular, multi-vendor production systems. Retrieved 10
4, 2018, from ScienceDirect:
https://www.sciencedirect.com/science/article/pii/S2405896315003821
T. Stock, G. S. (2016). Opportunities of Sustainable Manufacturing In Industry 4.0.
Retrieved 10 1, 2018, from ScienceDirect:
https://www.sciencedirect.com/science/article/pii/S221282711600144X
Tetyana Slyozko PhD, A. P. (2016). The Fourth Industrial Revolution: The Present
and Future of Accounting and the Accounting Profession. Retrieved 10 17,
2018, from Polgari Szemle:
https://polgariszemle.hu/archivum/136-2016-december-12-evfolyam-4-6-szam
/nemzetkozi-kitekintes/868-the-fourth-industrial-revolution-the-present-and-fu
ture-of-accounting-and-the-accounting-profession
15