Northampton Business School: Industry 4.0 and Supply Chain Analysis

This report examines the influence of Industry 4.0 on supply chain operations, focusing on a case study of Siemens. The report begins with an introduction to Industry 4.0 and its components, including cyber-physical systems, IoT, cloud computing, and cognitive computing. It then delves into the background of Siemens, highlighting its focus on electrification, digitalization, and automation. A comprehensive literature review explores the evolution of Industry 4.0 and its impact on manufacturing, supply chains, and customer interaction. The report analyzes Siemens' supply chain, illustrating how Industry 4.0 technologies are transforming traditional models. The report also discusses the challenges and opportunities associated with Industry 4.0, including data security, mass personalization, and the development of omni-channel distribution. The conclusion emphasizes the importance of implementing proper distribution channels and supply networks to secure the future of manufacturers in the advanced economic landscape. The report draws from academic journals, trade press, and social research to support its findings and provides a detailed analysis of how Industry 4.0 is revolutionizing supply chain operations.

Running head: Managing operations and supply chain management
Managing operations and supply chain management
Name of the student
Name of the university
Author note

Managing operations and supply chain management
Executive Summary:
This report will help in opening of new fields in case of productivity, opportunities and also
possibilities of business that will secure the future of the manufacturers in the field of
advanced economics. The implementation of proper channels of distribution and networks of
supply. The security issues are also related with the communication network and the security
related to it, and the channel of communication that can carries a huge load, which have the
ability to provide the opportunity of improvement in the chain of supply as well as the
industry and the potential of expressing itself as trend of future.

Managing operations and supply chain management
Table of Contents
Introduction:...............................................................................................................................3
Background of the Company:....................................................................................................3
Literature Review:......................................................................................................................5
Scenario:.....................................................................................................................................8
Conclusion:................................................................................................................................9
References:...............................................................................................................................11

Managing operations and supply chain management
Introduction:
The report is based on the organisation known as Siemens. This is a type of
organisation that produces energy. The main focus of the organisation is on electrification,
digitalisation and automation. This one of the biggest producer company of energy in the
world (Wang et al., 2016). The organisation generated energy in a very efficient way and also
by implementing technologies that is resource saving. This report will help in opening of new
fields in case of productivity, opportunities and also possibilities of business that will secure
the future of the manufacturers in the field of advanced economics.
Background of the Company:
The report is based on the organisation known as Siemens. This is a type of organisation that
produces energy. The main focus of the organisation is on electrification, digitalisation and
automation. This one of the biggest producer company of energy in the world. The
organisation generated energy in a very efficient way and also by implementing technologies
that is resource saving (Waller and Fawcett, 2013). This is a private sector organisation which
itself is a pioneer in case of various energy solutions, besides in the industry of automation,
software and also in the field of medical diagnosis. The organisation is also involved with
business-to-business solutions in financial department, automation in rail and also solutions
in wind power. There are numerous number of customers of Siemens varying from different
fields:
Automotive:
 Bosch
 Honda
 Fiat
 Hyundai

Managing operations and supply chain management
 McLaren
Consulting:
 Methodpark
 Teamlive
Electronics and Engineering
 Bosch
 DSA
 Deutz
 AGCO
 Honeywell
Energy, utilities and material process:
 CIAT
 PJM
 Statoil
Financial services and insurance:
 AON
 Banca Sella
 Horbach
 Direct Pay
 Swiss life
Information technology and software:
 CSC

Managing operations and supply chain management
 Cybersoft
 Aeti
 Conquest
 Concur
Life science, healthcare and pharmaceuticals:
 Alcon
 Banyan
 Roche
 Clin
 Novartis
Manufacturing and production:
 Krone
 KW Software
 Mattel
 Metso
 Wilo
Media and entertainment:
 Sysomos
 Sony DADC
 DPA
Literature Review:
The industry is developing to one of the ongoing basis from the ancient times. The
ninetieth century was the age of electricity and steam that was referred to the one of the

Managing operations and supply chain management
biggest revaluations of the industry. Three of the possible archetypes are covered by the
factory 4.0. a fully automated company is the first one. The mass personalization of the entire
production of a company is the second one. But it can be said that the Industry 4.0 cannot
only refer to the alteration that are happening in the factories and in the procurement too.
The industry 4.0 is one of the subsets of the fourth industrial revolution. It is
said that in case of a country when it is taking the advantage of various technologies that are
emerging, with a growth of the GDP of the country and also the jobs which they bring up.
This should also be digitalised. It will help in preparing of the stakeholders from the private
sectors and the public sectors in the change of technology. This will help in reviewing the
strategy of performance of national digital and also an overview is given which is about the
outputs that are collected. This may also help all the other entities in processing the
digitalisation in a society in a very efficient manner. The components of the industry 4.0 are
including:
 Mobile devices
 Internet of Things (IoT) platforms
 Location detection technologies
 Advanced human-machine interfaces
 Authentication and fraud detection
 3D printing
 Smart sensors
 Big data analytics with the advanced algorithms
 Multilevel customer interaction and customer profiling

Managing operations and supply chain management
 Augmented reality or wearables
 Fog, Edge and Cloud computing.
Most of the technologies are able to be summarised in four of the major components. They
are as follows:
 Cyber-physical systems
 IoT
 Cloud computing
 Cognitive computing.
The cyber physical systems can help in monitoring the physical procedures which is basically
a virtual copy of the physical world that can be designed. The networks of Industry 4.0 are
having a wide range of the technologies that are new for creating value.
As said by (Telukdarie et al., 2018) in “Industry 4.0 implementation for
multinationals”. The report is mainly focusing the way to deliver digitalisation in case of
various huge multinational business. This is aiming to deliver the contemporary context on
various operations that held globally and also in case of various delivery that are in real time.
It is also said in the report that the operations that are held local facilities are not dependent
on the operations that are held globally which can also result in global synergies the research
is proposed by an approach of global system which is defined by industry 4.0. The approach
is intended to challenge the manufacturing systems towards instrumentation through the ERP.
The specific work also resolves the challenges that are inter-site in a partnership with global
standardization and also with the integration of the inter-function. The architecture mentioned
in the report is reinforced with the stimulation illustrating which will also benefit the business
that is integrated.

Managing operations and supply chain management
There is a movement among the world in the countries that are seeking for
reinvigorating the core competencies of various industrial and various manufacturers. They
are using the advanced ICT technology. Aiming them visual computing is playing a very
important role in completing the solutions that is known as “glue factor”. The article is
mainly focused on visual computing which also plays a very important role in the field of
Industry 4.0. The article also gives an overview and even points out the scenarios that may
help to perform any type of future research. As mentioned here the Industry 4.0 is mainly
focused on the Internet of Things and also on cyber-physical systems. The article also
explains the way technology of visual computing enable the way for the Industry 4.0. The
article clarifies the technologies of visual computing that is related to Industry 4.0. There is
various type of examples that are discussed in the report including projects of applied
research in case of the international scenarios and also the alignment which have different
visions (Touboulic, Chicksand and Walker, 2014).
Scenario:
Szozda’s case is illustrated in this paper by evaluating the strategies of the company-
Siemens. Siemens is one powerhouse that is spreader all over the world and focused on the
fields of automation, electrification and digitalization (Simchi et al., 2014). There are very
few producers who are as large as Siemens in the field of producing resource-saving, energy
efficient technologies as well as to supply systems for transmission, medical diagnosis and
power generation.

Managing operations and supply chain management
As described in the figure, the suppliers will proceed with the manufacturer, as well as
the manufacturers will also return to the suppliers. The manufacturers will the provide the
products to the distributors. In the next process, the retailers will then will get the products
from the distributors. And at the last stage the consumers will get the product directly from
the retailers.
As mentioned in the szozda’s case study the traditional model of functioning of the
manufacturer’s supply chain of an electric health support or IT devices depends on the mass
production, get executed the line with the concept of push (Serdarasan, 2013). It consists of
some activities in a series (designing, production and selling) whose concern takes the place
depending upon the plan that is specified at one end of the manufacturer that basically stays
within the product sales process.
As described in the figure the suppliers will provide the products to the
manufacturers. The customers can get the products directly from the manufacturers. The
suppliers will proceed with the manufacturer, as well as the manufacturers will also return to
the suppliers. The manufacturers will the provide the products to the distributors. In the next
process, the retailers will then will get the products from the distributors. And at the last stage

Managing operations and supply chain management
the consumers will get the product directly from the retailers. As well as the retailers can also
get the products directly from the manufactures.
In the introduced model, the process of planning is sent to the area of distribution, where it is
practiced to collect data of sell directly from finished products and end customers. This is a
phase of termination to the model of pool, i.e. operations organization in a chain of supply to
a specific order of customer (Schaltegger and Burritt, 2014). However, there is a deviation
from the traditional understanding related to the concept of pool. Retail outlets are not treated
as the only source for data, products are also considered for the same. Provide explains the
information related to the behaviour of customer, manners of the usage of the IOT products,
the process of the rough handling by them, repairing, etc. (Posada et al., 2015). By mining the
collected data, those helps in understanding the future prospective of product improvement.
The strategy of product manufacturing also modified from the old traditional manner to the
fully automated manner where the procedure of production is designed and developed in the
cloud. The collected data could also be used in supporting other entities like companies of
insurance or unit related to health care etc. Although Siemens’s IOT products are a type of
mass product, there is also a chance of ‘mass personalization’, that is the products are
manufactured by Siemens depending upon the need of individual customer that includes type,
size or area of application (Mena, Humphries and Choi, 2013). In some of the retail outlets
and stores of the online, the so-called Online ID. The consumers get the opportunity to
compare, choose and select their product even up to eight elements.
The practice of the revolution in Fourth Industrial Era the supply chain of a company also
includes the distribution channels and their development, known as Omni-channel. The
consumers play the key role in determining what type of product or services they want or
when and how they wish to get it delivered (Liu et al., 2013). The company must keep an eye
to manufacture or service the consumer in a goal that it is meeting the need of them and

Managing operations and supply chain management
offering them a uniform and uniquely attractive experience during purchase, complaint or
return related to the services or products, regardless of the channel of applied distribution.
This type of industry is still unexplored having a multi-brunched direction of development.
The model of business of the supply chain is getting modified as well as the end output of the
company, which is becoming more focused on the choice of the individual depending upon
their taste of purchase and expectation from the consumed product. The modification is done
over the mass production depending upon the output of the conducted social research (Hasan,
2013). This is just the beginning of the revolution in the industry that is focused up on the
communication between aggregations of obtained data from the database and the database
that is in use (Ambulkar, Blackhurst and Grawe, 2015). The process leads the system to
numbers of threats and risks which are related to the security and protection of data, storage
managements of the data base and the communication to long distance depending upon the
wireless network.
Conclusion:
Thus it can be concluded from the above report that the implementation of proper
channels of distribution and networks of supply. The security issues are also related with the
communication network and the security related to it, and the channel of communication that
can carries a huge load, which have the ability to provide the opportunity of improvement in
the chain of supply as well as the industry and the potential of expressing itself as trend of
future. The type of structural means exploring beyond the traditional existing structures and
encounters some elements like: Usage of several sources of supply, sharing of the resources
of the company, base demand distinction that is found to be predictable, and the stock level
maintaining in the company database as well as the raw material that is based on the
determined or pre-choose forecast of the customer’s demand small batches production and
the outsourcing. Though the chain of supply is not break into lean, agile or flexible.

Managing operations and supply chain management

Managing operations and supply chain management
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Managing operations and supply chain management
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