HP March 2022 eBook—Energy Transition - 92

Special Focus
Digital Transformation
P. K. PHUKAN, Bharat Petroleum Co.,
Dibrugarh, Assam, India
Implementation strategy and opportunities
with Industry 4.0
The term Industry 4.0 refers to the
fourth industrial revolution. Widely
hailed as a new level of organization and
control over the entire value chain of
the lifecycle of products, Industry 4.0 is
geared toward progressively personalized
customer requirements.
This cycle initiates at the product
idea, covers the order placement, spreads
through development and manufacturing,
continues to product delivery for
the end customer, and concludes with
recycling, encompassing all resulting services.
The basis for the fourth industrial
revolution is the availability of all relevant
information in real time by linking all instances
involved in the value chain. The
ability to derive the optimal value-added
flow from the data at any time is also vital.
The connection of people, things and
TABLE 1. A framework for Industry 4.01
Instrumented
Data: Devices contain sensors,
actuators and software that
generate data
Interconnected
The ingredients for Industry 4.0
Inclusive
Connectivity: An information
network connects devices;
gathers and processes the
data either at the edge of the
network or centrally, selectively
Design
Integrate: Use existing products by
equiping them with sensors to bring them
into the connected environment
Predict: Design new products based on
the utilization of existing products and
market reaction to concepts
Innovate: Insight from sensor data can
guide equipment usage and new product
or service design based on customer and
network use
Make
Optimize: Predictive maintenance of
production lines optimizes uptime and
maximizes throughput
Fulfill: Meet market demands by providing
what is most utilized
Extend: Machines will come with intelligence
pre-built; applications for those productservice
hybrids will become revenue streams
Employ: New roles for product and
experienced designers, application developers,
data scientists, equipment/network
production, implementation and support
Hydrocarbon Processing | FEBRUARY 2020 | HydrocarbonProcessing.com
Context: Industry knowledge;
data external to the network
adds context to the data
What Industry 4.0 enables
Use
Satisfy: Predictive maintenance of products
ensures optimal usability and availability;
optimized supply chains ensure availability
Safety: Hazardous tasks and environments
are delivered by robots
Sensory: New ways for humans to interact
digitally with machines through voice,
sight, touch and movement
Intelligent
Decision-making: Machinelearning,
predictive analytics and
cognitive computing make sense
of the data; decentralized decisionmaking;
move toward autonomy
systems creates dynamic, self-organizing,
real-time, optimized, value-added connections
within and across companies.
These can be optimized according to criteria
such as costs, availability and consumption
of resources.
Transformational benefits. Industry
4.0, also known as the Industrial Internet,
not only encompasses the digitalization
of horizontal and vertical value chains but
will also transform companies' product
and service portfolios with the decisive
goal of better satisfying customer needs.
The potential uses of the Industrial Internet
go far beyond the optimization of production
technologies. However, exploiting
these opportunities requires substantial
investment. This topic inevitably occupies
a leading position on the agenda of directors
and managers of industrial companies.
The industrial sector is required to
produce ever larger quantities of product,
using fewer raw materials and less energy.
The Industrial Internet permits higher
productivity and resource efficiency, creating
conditions for sustainable and efficient
production, as detailed in TABLE 1.1
From a functioning perspective, Industry
4.0 facilitates process optimization
even before value creation is realized
in practice. This is mainly due to virtual
imitations of production activities or even
entire supply chains; vertical and horizontal
connections enable shorter lead
times and accelerated time-to-market.
This allows manufacturing companies
to respond more quickly and flexibly to
volatile market demands and last-minute
changes in customer orders.
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