Documentos de Académico
Documentos de Profesional
Documentos de Cultura
NAME :
MUHAMMAD WAZIR SHAFIQ BIN ARIPIN
IC NO. :
841213105217
MATRIX NO. :
M051620029
NAME :
ABD HALIMNIZAM B ABDULLAH
IC NO. :
740603016049
MATRIX NO. :
M051620026
COURSE :
MASTER IN MANUFACTURING ENGINEERING
(INDUSTRIAL ENGINEERING)
LECTURER NAME : PROF DR CHONG KUAN ENG
TABLE OF CONTENTS
PAGE
TABLE OF CONTENTS i
LIST OF FIGURES ii
CHAPTER
1. INTRODUCTION 1
1.1 Background of Study 1
1.2 Problem Statement 1
1.3 Objectives of Study 2
2. LITERATURE REVIEW 3
2.1 Industrial Revolution 3
2.2 Internet of Things (IoT) 5
2.3 Artificial intelligence (AI) 7
2.4 Big Data 8
2.5 Supply Chain in Fourth Industrial Revolution 9
4. CONCLUSION 18
REFERENCES 20
i
LIST OF FIGURES
2.3 The digitally enabled supply ecosystem vs. traditional linear supply
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chain.
2.5 Effect of push technologies and pull demand on the digital supply
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chain.
ii
CHAPTER 1
INTRODUCTION
Manufacturing process changes aligned with industrial revolution time frame. Early
produce in big scales or mass production. For Third and Fourth Industrial Revolution move
All industrial transformation phase, supply chain changes together to suit with the
transformation. All these Industrial Revolution impact on your supply chain. In term of
things, virtual and augmented reality, wearables and additive manufacturing that are
Business leaders can no longer focus on developments and trends in their own sectors alone,
but need to understand potential transformations and disruptions in the entire world of
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suppliers, customers and adjacent markets. Systems are being transformed not specific
products or services. Cyber physical systems combine communications, IT, data and
Today the main focus is on the smart factory but what is the meaning for the supply
chain management. The internet of things leads to a high transparency regarding the status
of the supply chain and its nodes. The amount of information increases rapidly with the
distributed within the supply chain with methods of the internet of things. But: transparency
is not enough, the right conclusions have to be drawn at the right point (Akinlar, 2014).
term of process/flow.
chain.
2
CHAPTER 2
LITERATURE REVIEW
The First Industrial Revolution took place between about 1700s and early 1800s.
Early 1700s, manufacturing was often done in peoples homes, using hand tools or basic
and mass production. The iron and textile industries, along with the development of the
steam engine, played central roles in the Industrial Revolution, which also saw improved
The Second Industrial Revolution started around 20th century was created a wave of
globalization expanded allowing for greater movement of people and ideas. Advances in
electrical power drive the growth of mass production and the factory line or assembly line.
In other words, during Second Industrial Revolution all manufacturing start change in their
production activities. Location for manufacturing not any more focusing power source but
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The Third Industrial Revolution was driven by the widespread adoption of new
digital technologies such as computer into the manufacturing for automate production. It
makes manufacturing to more globalization. The Third Industrial Revolution was taking
Revolution are the cyber physical production system driven. It also called as Digital
blurring the boundaries between the real world and the virtual world in what are known as
Digital Industry 4.0 means combined communications, IT, data and physical
elements. That allows the creation of digital factories or digital plantsin which machines
talk to products and other machines, objects deliver decision-critical data, and information
is processed and distributed in real time resulting in profound changes to the entire industrial
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ecosystem. This connected everything environment allows for more automation and
Like the revolutions that preceded it, the Fourth Industrial Revolution has the
potential to raise global income levels and improve the quality of life for populations around
the world. To date, those who have gained the most from it have been consumers able to
afford and access the digital world; technology has made possible new products and services
that increase the efficiency and pleasure of our personal lives (Schwab, 2015).
intelligence, and advanced robotics. These connected devices utilize RFID, Wi-Fi, cellular
networks and other technologies to communicate with each other and the cloud to become
the Internet of Things. In terms of industry, this revolution entails the utilization of cyber-
connected systems which monitor factory processes to maximize efficiency and reduce
Five key technologies, which are currently at different stages in terms of level of
readiness and adoption across industry sectors, are expected to significantly impact supply
their operations. They are related to a quick progress in information technology and the
economy entering the fourth phase of the industrial revolution. More opportunities to create
systems integrating physical and virtual worlds are one of its key differentiators, and the
5
Nowadays Internet of Things (IoT) gained a great attention from researchers, since
it becomes an important technology that promises a smart human being life, by allowing a
communication between objects, machines and everything together with peoples. IoT
represents a system which consists a thing in the real world, and sensors attached to or
combined to these things, connected to the Internet via wired and wireless network structure.
By the technology of the IoT, the world will become smart in every aspects, since the IoT
will provides a means of smart cities, smart healthcare, smart homes and building, in addition
For enterprises, IoT can underpin solutions that improve decision-making and
(M2M) solutions - a subset of the IoT already use wireless networks to connect devices to
each other and the Internet, with minimal direct human intervention, to deliver services that
meet the needs of a wide range of industries. In 2013, M2M connections accounted for 2.8%
of global mobile connections (195 million), indicating that the sector is still at a relatively
early stage in its development. An evolution of M2M, the IoT represents the coordination of
multiple vendors machines, devices and appliances connected to the Internet through
Internet of things may be facing two major challenges in order to guarantee seamless
network access; the first issue relates to the fact that today different networks coexist and the
other issue is related to the big data size of the IoT. Other current issues, such as address
encryption, and functions to deliver voice and video signals efficiently will probably be
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promises future new technologies when related to cloud, fog and distributed computing, big
data, and security issues. By integrating all these issues with the internet of things, smarter
applications will be developed as soon. This paper surveyed some of the most important
applications of IoT with particular focus on what is being actually done in addition to the
challenges that facing the implementation the internet of things concept, and the other future
technologies make the concept of IoT feasible (Aldein Mohammeda and Ali Ahmed, 2017).
Artificial intelligence (AI) was introduced to develop and create thinking machines
that are capable of mimicking, learning, and replacing human intelligence. Since the late
1970s, AI has shown great promise in improving human decision-making processes and the
subsequent productivity in various business endeavors due to its ability to recognize business
patterns, learn business phenomena, seek information, and analyses data intelligently.
Despite its widespread acceptance as a decision-aid tool, AI has seen limited application in
Machine-generated insights will pave the way for greater precision and accuracy.
While repetitive tasks are performed by machines, people can focus on more complex
activities. Physical assets replace low-skilled labor, which requires investment in and
upskilling of the existing workforce. This represents a significant change for workers and
(WEF, 2017)
The benefits AI technologies bring to supply chain planning are the ability to provide
speed and accuracy beyond human capabilities. It is possible to have a supply chain thats
smarter, faster and self-healing, meaning it continuously observes and measures data and
automatically adjusts or repairs itself as it finds exceptions. The supply chain will be able to
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detect, predict and suggest, letting you answer those fundamental supply chain questions
Big Data is mainly driven by the widespread diffusion and adoption of mobile
devices, social media platforms including YouTube, Facebook and Twitter, and IoT related
The cause of increasing attention of Big data analytics in SCM is its complexity and
the influence that SCM have on the overall performance of companies. The SCM area is
facing the challenges which may lead to inefficiency and wastage, e.g. delayed shipments,
expects that Big data analysis will bring profits through the process visibility and
improvement. In the area of strategic planning and management of supply chains, Big data
the supply chain response. The foundational element of supply chain systems is order and
shipment data. These data forms are used extensively in the three primary applications of
Systems (APS) and Supply Chain Execution (SCE). The genesis of Enterprise Resource
Planning (ERP) systems was to improve the order-to-cash and procure-to-pay functionality
and maintain a common code of accounts for financial accounting. Similarly, Advanced
Planning Systems (APS) applied predictive analytics to these two data types to plan and
improve the supply chain response. In parallel, Supply Chain Execution (SCE) systems
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2.5 Supply Chain in Fourth Industrial Revolution
In Fourth Industrial Revolution, all matter that have related with manufacture flow
will be change and become digitalization. It will be created new ecosystem in the
manufacture process. Figure 3.1 below show how supply chain changes in this ecosystem.
technologies the cloud, big data, the Internet of Things, 3D printing, augmented reality, and
others. Together, they are enabling new business models, the digitization of products and
services, and the digitization and integration of every link in a companys value chain: the
distribution, and digital sales channels and customer relationship management (Schrauf and
Berttram, 2016).
Figure 2.2: The supply chain at the center of the digital enterprise.
(Schrauf and Berttram, 2016)
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The structure of supply chain also changes in this ecosystem. Where in traditional
supply chain using linear structure but in digitalization supply chain become centralize with
all supply chain process. Figure 2.3 below show differential between traditional supply chain
Digital supply chain is based on four main attributes; Integrated, Intelligent, Flexible
and Rapid (Capgemini, 2015). Integrated will be delivered through Supply Chain Tower as
Figure 2.3: The digitally enabled supply ecosystem vs. traditional linear supply chain.
(Schrauf and Berttram, 2016)
Digital technologies also can reduce costs by, for example, intelligent forecasts or
operational support for the employee, thus also increasing productivity. Implementing these
technologies can also improve customer relationships and open new business areas. The
majority of companies in the manufacturing sector (79.9%), logistics services (85.5%), and
retail (74.5%) recognize these and similar positive effects of a digital transformation (see
10
Figure 2.4: Expected impact of digital transformation on the cost situation in companies.
(Kersten et al., 2017)
Digitalization has created the opportunity to revolutionize old business models and
in particular to implement new supply chain strategies. Many industries have moved from
Push strategies to Pull strategies, just to find that these strategies lead to significant service
and distribution problems. They eventually move to Push-Pull supply chains (Werner, 2013).
Figure 2.5: Effect of push technologies and pull demand on the digital supply chain.
(Schrauf and Berttram, 2016)
Driving the transformation to the smart supply chain are two tightly intertwined
trends. On one hand, new technologies like big data analytics, the cloud, and the Internet of
Things are pushing into the market. On the other, more exacting expectations on the part of
consumers, employees, and business partners are pulling companies to develop more reliable
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CHAPTER 3
Supply chains operate along the traditional Supply Chain Operation Reference
(SCOR) processes plan, source, make, deliver, return, and enable. Every one of these
technologies into eight key areas: integrated planning and execution, logistics visibility,
Procurement 4.0, smart warehousing, efficient spare parts management, autonomous and
B2C logistics, prescriptive supply chain analytics, and smart supply chain enablers.
All of these elements are interrelated, and they build on one another. Consequently,
a digital supply chain strategy needs to consider all of them to leverage the full benefits of
digitization.
The business goal of the digital supply chain is to deliver the right product into the
customers hands as quickly as possible but also to do so responsively and reliably, while
increasing efficiency and cutting costs through automation. This goal cannot be achieved
unless the supply chain is fully integrated, seamlessly connecting suppliers, manufacturing,
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logistics, warehousing, and customers, and driven through a central cloud-based command
center.
With this level of integration, signals that trigger events in the supply chain can
emanate from anywhere in the network and alert all to issues affecting supply or demand,
such as shortages of raw materials, components, finished goods, or spare parts. In a world in
which customized manufacturing is fast becoming the norm, and customers are becoming
ever more demanding, the fully responsive supply chain is a huge competitive advantage
The key to success for any supply chain is efficient exchange of information. The
traditional supply chain is fraught with friction, caused primarily by lack of complete and
timely information. Potential for disruption is high; sudden shifts in demand, lack of raw
materials, and natural disasters can wreak havoc on the best-laid supply chain plans. And the
outsourcing of many necessary elements only makes it harder to understand the supply chain
in full, fogging visibility into the transportation network and making it difficult to mitigate
Thats why the overarching goal of the digital supply chain is to open the supply
network for all to see. B2C markets are pulling companies along to provide this level of
visibility, demanding more information about shipment arrivals with real-time updates. In
B2B networks, producers expect timely status information on their supply shipments, which
are typically linked to production plans. Constantly updated and reliable transportation
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3.4 Procurement 4.0
Digitizing procurement will radically change the tools and talents required, add new
categories to be sourced, and transform the value proposition of the procurement function.
critical building block in the digital supply chain ecosystem. The digitization of many
traditional aspects of procurement is already under way, as companies use a variety of big
data tools and techniques to connect more closely with suppliers, aid the planning process,
improve sourcing, actively manage supplier risk, and boost collaboration. The result is lower
costs and faster delivery throughout the supply chain as it becomes increasingly automated.
The concept of adopting and implementing a smart factory solution can feel
complicated, even insurmountable. However, rapid technology changes and trends have
made the shift toward a more flexible, adaptive production system almost an imperative for
thinking big and considering the possibilities, starting small with manageable components,
and scaling quickly to grow the operations, the promise and benefits of the smart factory can
be realized.
The Smart Factory Logistics methodology created by Bossard meets customer needs
and make inventory management leaner and more agile. Bossard has three specific solutions
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Smart Factory Logistics systems are engineered to suit different manufacturing
lineside. Automatically triggered orders and replenishment means you have exactly
iii. Big data software creates transparency With our own supply chain collaboration
software, ARIMS, we can collect and deliver data on a large scale to create
transparency. Beyond plotting usage and deliveries, ARIMS can be used to plan and
The warehousing link in the supply chain is expensive, labor-intensive, and fraught
with potential error. Digitization will certainly eliminate much of its inefficiency and
integrate the process into the entire supply chain. Meanwhile, 3D printing is poised to
Consider the problem of spare parts. At many warehouses, more than half of all orders
shipped are one-time requests for spare parts, and the demand for them is highly erratic,
almost impossible to predict. Thats why companies typically maintain huge inventories of
parts, many of which must be kept for 30 years or more if customers are to keep operating
older machines.
parts. Sophisticated analytics software allows demand for spare parts to be forecast much
more precisely, through solutions such as predictive maintenance of industrial vehicles and
15
machines. That in turn allows companies to optimize spare parts storage and distribution, as
a great deal more information can be integrated, such as social listening and traffic and
Few elements are likely to influence the general perception of the digital supply chain
as much as the rise of autonomous logistics. The notion of driverless cars already turns heads.
Fleet management will deploy all manner of driverless vehicles and other robotic
innovations that will play an increasing role in moving goods around the world.
The most common use of autonomous vehicles in logistics will be driverless trucks.
Like their car brethren, self-driving trucks will depend on mapping software and short-range
radar to assess the vehicles surroundings. Wireless connections to other vehicles and to the
road itself will provide additional information that will speed up traffic flow and reduce
multiple trucks in a line will reduce the need for human drivers and allow the trucks to
drive more closely together. Internal sensors will help fleet operators assess damage to cargo
The goal of the digital supply chain is to fully integrate and make visible every aspect
of the movement of goods. The key to this critical element of Industry 4.0 is big data
analytics. Already, companies have the tools to describe much of the current state of their
supply chains where the goods are, where the demand for specific items is currently coming
from, and when items are likely to be delivered. And companies are learning to predict
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critical elements of the chain. Demand through the chain can be better anticipated thanks to
more sophisticated signals from the market, which translates to demand for production
capacity, storage and logistics needs, and changes in raw materials requirements.
The next stage in the development of supply chain analytics will be the most
important: the ability to prescribe how the supply chain should operate. The goal isnt simply
to optimize demand planning; or the supply chains distribution facilities, routes, and mobile
assets; or the management of inventory and spare parts. Instead, the key lies in the ability to
optimize for any number of factors across the entire chain, depending on circumstances, and
Companies setting out to build the smart supply chain face a difficult task, one that
will likely prove impossible unless they develop a clear strategy that is fully responsive to
the opportunities on offer in a fully digital environment. It must be based not just on the
companys current operations and business model but also on new business models available
once digitization has been implemented, such as creating direct sales channels and leap
Once the strategy is determined, companies must put into place several key
capabilities needed to carry it out, in addition to the supply chain applications discussed
i. Processes.
iv. Partnering.
v. Technology.
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CHAPTER 4
CONCLUSION
Supply chain very important structure in manufacturing. History have been told that
Fourth Industrial Revolution, supply chain management must change and become
technology drive the supply chain and so on must change follow the industrial
transformation. Digital supply chain is a new era for supply chain management with four
main attributes. The challenging for manufacturing are to prepare the equipment for
digitalization such as highly technology software, big data storage, and including to prepare
The biggest impact from the Fourth Industrial Revolution technologies and concepts
is to be expected from a technological view especially for the procurement, production and
distribution activities in the supply chain. The organization of the supply from a
technological view will mainly change due to the implementation of Business Intelligence
communication, and Smart Factory including Smart Logistics. With the combined
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implementation of Smartphone Apps and Smart Data tools, the interaction of people within
the supply chain will face a huge impact in the sales departments of companies, where the
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REFERENCES
Akinlar, D. S. (2014) Logistics 4.0 and Challenges for the Supply Chain Planning and IT,
Bossard Group (2017) How will Industry 4.0 Impact your Supply Chain?. Generis Group.
Capgemini (2015) Digital Supply Chain Where Virtual and Physical Converge.
Fosso, S. et al. (2015) Int . J . Production Economics How big data can make big
impact: Findings from a systematic review and a longitudinal case study, Intern. Journal
Kersten, W. et al. (2017) Trends and Strategies in Logistics and Supply Chain
https://www.accenture.com/gb-en/blogs/blogs-digital-industry-4-0 (Accessed: 13
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November 2017).
Ralf C. Schlaepfer, M. K. (2015) Industry 4.0. Challenges and solutions for the digital
Schrauf, S. and Berttram, P. (2016) Industry 4.0: How digitization makes the supply chain
https://www.strategyand.pwc.com/media/file/Industry4.0.pdf%0Ahttp://www.strategyand.
pwc.com/reports/industry4.0.
Benchmark for Distributed Stream Processing Platforms, Gsma Connected Living, (July),
WEF (2017) Impact of the Fourth Industrial Revolution on Supply Chains, (October).
Werner, H. (2013) Supply Chain Management, Supply Chain Strategy, pp. 174182. doi:
10.1007/978-3-8349-3769-8.
Wielki, J. (2016) The Role of Internet of Things as a Key Technology Enabling the Fourth
539544.
Zdrenka, W. (2017) the Use and the Future of Big Data Analytics in Supply Chain
10.21008/j.2083-4950.2017.7.2.3.
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