Industry 4.0 and Sustainable Manufacturing

How does Industry 4.0 Technologies Assist Manufacturers achieve Sustainable Manufacturing?

Developing manufactured products using processes with a comprehensive view of the environmental impact (conservation of energy and other natural resources) and aiding in the safety of employees and consumers is termed Sustainable Manufacturing. It encompasses both the lean and green manufacturing methodologies and also adds other dimensions to it. As given in Exhibit 1, sustainable manufacturing focuses on the entire product life-cycle, starting from its manufacturing process until its ‘end-of-life, after which remanufacturing and recycling come into effect.

Sustainable manufacturing is seen from various dimensions depending on its purpose and application; however, the widely accepted dimensions among the industrial participants are Environment, Society, Economy, Technology, and Performance Management. Of the mentioned dimensions, Environment, Society, and Economy are regarded as the ‘three pillars’ of sustainable development and are often known as ‘Triple Bottom Line’ (TBL).

The main aim of sustainability is to design and develop manufacturing processes and products, respectively, wherein, there is zero impact on the environment and achieve 100% product recyclability. While technological advancements enable process and product development, to realize sustainable development, digital technologies need to be converged with sustainability. Therefore, manufacturers are currently focusing on such convergence to realize larger benefits of industry 4.0, which is sustainable manufacturing.

Currently, industry experts and researchers are utilizing industry 4.0 technologies to address challenges and issues related to TBL of sustainable manufacturing. For instance, environmental challenges such as climate change, resource depletion, and environmental protection will be addressed with industry 4.0 technologies. This brings a new perspective to industry 4.0, which was traditionally looked at digitizing operations and reaping benefits. However, for this to be realized, there should be complete coherence and convergence of industry 4.0 technologies. The below exhibit 3, shows the important technological enablers of the fourth industrial revolution, which is expected to play a significant role in achieving sustainable manufacturing of the future.

Transformation of a manufacturing unit into an intelligent factory requires both horizontal and vertical integration, wherein, all the production areas and distributors and customers, are integrated. The seamless integration, provided by industry 4.0 technologies and Information & Communication technology platforms, increases the transparency of the production processes and supply chain activities, thus helping optimize all the energy and resources. Such connected operations produce vast amounts of data with regard to every aspect of manufacturing. When all such data are transformed into useful information, it will play a key role in developing strategies from environmental, societal, and economic perspectives.

Concerning the environmental dimension of sustainable manufacturing, industry 4.0 helps in reducing waste generation through its streamlined manufacturing process and effective recycling and remanufacturing initiatives. For instance, transparency in any manufacturing operation or process increases significantly by incorporating different types of sensors. Such sensors also provide valuable information including behavior, usage, failure models, performance indicators, emissions, performance under stress, etc., of the product throughout its life cycle. Such information is used to develop better products and processes using various simulation systems, to mitigate negative effects on the environment, without damaging its competitiveness. Such integrated systems also help in monitoring and managing losses incurred in the product life cycle, both in its manufacturing and usage stages. Hence, with complete transparency, manufacturers can design new products that are both competitive and environment friendly, achieving sustainability.

From an economic point of view, industry 4.0 facilitated by IoT, Artificial Intelligence, Machine Learning, Machine Vision, and Data Analytics, enables the development of equipment at much lower costs through efficient use of energy and resources. Manufacturers are continuously exploring ways to reduce their operational costs involved in manufacturing activities. However, challenges such as waste generation (arising out of both manufacturing and maintenance activities), decreased productivity, and increased energy consumption always set back the strategies developed by the manufacturers to reduce costs. With proper implementation of industry 4.0 technologies, manufacturers will be able to view the optimized and non-optimized processes in their value chain. Such solutions will enable manufacturers to right-size their facilities, workforce, resources, and provide a view of process loopholes that can be optimized, reducing operational costs involved in manufacturing and increasing their productivity. Apart from these, strategies such as the utilization of new and cleaner technologies for manufacturing and the use of 3D printing will also help manufacturers reduce waste generation.

Concerning the social dimension of sustainable manufacturing, industry 4.0 helps develop better products, which in turn benefits the society on the whole. Apart from this, numerous better jobs will be created, wherein the overall skill sets of labor will be on an improved scale. As promotional offers, several manufacturers are expected to provide incentives to consumers who are willing to return their end-of-life products to assist in recycling and remanufacturing activities.

The below table explains the role of various industry 4.0 technologies and their benefits to sustainable manufacturing.

Industry 4.0 technologies are expected to play a significant role in driving sustainability in industrial manufacturing. However, it is too early to discuss the alignment of technologies with sustainable development goals. For this to be realized, manufacturers need to transform their factory into an intelligent factory with complete horizontal and vertical integration. Also, as per World Economic Forum, about 75% of IoT projects are small and medium-sized, mostly focusing on energy efficiency, productivity, competitiveness, cost reduction, etc., and not on sustainable manufacturing goals. However, as we all know, with technology, an exponential jump can happen anytime. Manufacturers are keen to understand the benefits of industry 4.0 to transform themselves into a smart factory aligned with sustainable goals.