Industry 4.0: Revolutionizing Supply Chain - NBS, UON 2018-19

This report investigates the influence of Industry 4.0 on supply chain operations, focusing on the origins and development of the Fourth Industrial Revolution. It reviews literature on automation, cloud computing, and the Internet of Things, highlighting their role in transforming traditional manufacturing processes. The report then applies these concepts to McDonald's, a large fast-food company, suggesting how Industry 4.0 technologies can optimize their supply chain, improve consistency, and reduce reliance on manual processes. By integrating cloud computing and automation, McDonald's can enhance ingredient measurement, mixing, and overall quality control across its global operations, ultimately leading to a more efficient and customer-centric supply chain.

Industry 4.0 1
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Industry 4.0 2
Contents
Introduction................................................................................................................................3
About the Company...................................................................................................................3
Literature Review.......................................................................................................................3
Replication of case study...........................................................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10

Industry 4.0 3
Introduction
Industry 4.0 is the use of various technologies, such as cognitive computing, cloud computing
and automation to increase production in the organization. The following looks at some of the
literature surrounding Industry 4.0, and how this can be applied to the chosen organization,
which is McDonald's.
About the Company
The organization that is chosen is McDonald's, which is a large fast-food company. It is a
multinational organization, and a formal, private sector organization. There are 37,000 people
who have been employed in McDonald’s. McDonald’s is a large-scale organization, which
can be seen form the profit which they earn, and the number of people who have been
working in the organization. The main products sold by the organization are burgers, French
fries and milkshakes (Popkova, Ragulina and Bogoviz, 2018). They also have a large section
called McCafé, which provides coffee and various drinks in many McDonald’s outlets as
well. This makes it one of the largest fast-food chains in the world since apart from Subway,
it also has the largest number of franchises as well (Junior et al., 2018). The main customers
of the organization differ from various countries. The main customers in India, for example,
would be the young, middle-class population, which consists of those who have moderately
well-paying jobs, and are living in cities. In the United States of America, however, the target
is the majority of the population and those who are in the lower-middle class, who cannot
afford to have food from various organizations.
Literature Review
Industry 4.0 is the current trend of automation and revolution in the internet industry, which
can be traced back to Germany.

Industry 4.0 4
According to Lasi, et al., (2014), the name for Industry 4.0 was revived from a German
exhibition or fair in 2011, where the automation of the machines in various industries was
being discussed. However, the term originates from a high-powered government project in
Germany (Lasi, et al., 2014). Industry 4.0 is the fourth industries revolution, and this can be
seen in the way that the machines have been known to automatically use data-exchange, the
latest technology and the cyber-physical systems that are in place to ensure that the
organization has been working in to increase the process of automation, and the use of cloud
computing and the Internet of Things.
Almada-Lobo, (2016), feel that Industry 4.0 is the beginning of smart factories, which use the
latest technology, and Industry 4.0 is the end of traditional applications of centralized control.
Thus, according to them, Industry 4.0 would have started with the use of the Internet f
Things, and Robotics in organizational production lines (Almada-Lobo, 2016). Industry 4.0 is
one of the biggest changes in recent times and has been compared to the Industrial
Revolution regarding the extent of innovation that has gone into the organisations who have
been using the Internet to ensure that there are changes that have been made.
Industry 4.0 started with the use of digitization, and the use of various technologies by
various means in an organization. This meant that when various industries, according to Qi
and Tao, (2018), started using digital technology, and the internet in order to make sure that
the machines were working efficiently, and to reduce the use of manpower into the processes
of manufacturing, Industry 4.0 had started to begin (Qi and Tao, 2018). This could have a
significant impact on the organization since it would mean that it would be easier to achieve
synchronization within the industry as well.
According to Xu, Xu and Li, (2018), the Internet of Things and automation is one of the main
issues that are concerned with the organization, and this has been having a significant effect

Industry 4.0 5
on most organizations and their development. It was through the process of automation and
through the use of the Internet of Things that Industry 4.0 was developed. This could mean
that this was the main process of Industry 4.0, and was also one of the main discoveries of the
4th Industrial Revolution as well (Xu, Xu and Li, 2018).
The main starting point of Industry 4.0 was the beginning of the project called the Intelligent
Technical Systems Ostwestfalen-Lippe by the German Government. According to Gilchrist,
(2016), it started in 2013 and was using the techniques of automation to have self-
optimization and self-configuration. This was introduced by the BMBF to help workers in
realizing their goals, and to ensure that the organization has been successful in warranting
that there are minimum organizational hazards as well (Gilchrist, 2016). This was a
milestone, since it happened through intense research and innovation, and was successful in
ensuring that Germany was brought on the map regarding innovation in the industrial sector.
According to Liu and Xu, (2017), in 2013, the firm McKinsey, which is a consultation firm,
also released an interview with various McKinsey employees, and other industrial leaders,
which looks at the Internet of Things, and how it can help the manufacturing industries to a
large extent. The authors imply that this aims to bring in a new industrial revolution (Liu and
Xu, 2017). It was then revealed, that in Borsch, it is called Industry 4.0 since it has been
called that in most of Germany as well. This could have a significant impact on the industry
and could change every organization in the industry for the better.
Szozda, (2017), looks at some of the challenges that come to the modern supply chain when it
uses Industry 4.0 for operation. The research done found that it is not unusual for modern
supply chains to use organizational chains to control the flow of information in a supply
chain (Szozda, 2017). The study is of relevance since it would look at how organizations can
be impacted by issues that are related to data security and the capacity of long-distance

Industry 4.0 6
wireless networks. The study reveals that most managers are aware of the consequences of
the action, and the benefits of the system itself.
According to Galetta, et al., (2018), there are significant impacts of cloud computing and
social media is being made on organizations, and this can have a significant impact on
retention marketing strategies that are used in the organization. This can have a significant
impact on the organization since it can lead to a change in the whole production cycle of an
organization as well (Galetta, et al., 2018). Social media and cloud computing can make the
experience of the customer important. Cyber-physical systems can help change the
production line to meet the needs of the customers as well.
Tseng, et al., (2018), looks at the impact of the Big data on organizations. It is the change in
data-mining and data-gathering techniques that have resulted in the Industry 4.0 being
achieved. The paper looks at how multi-industry crossovers have resulted in multiple supply
chains in a modern economy (Tseng, et al., 2018).
Agrawal, (2018), looks at how Industry 4.0 can be applied in an organization that has a firm
structure (Agrawal, 2018). The paper looks at how the performance of the firm can be
improved using Industry 4.0 and the various methods to improve them as well.
Replication of case study
McDonald's is one of the largest organizations in the world. However, regarding
manufacturing, the organization has been having issues in ensuring that the patties (which are
pre-made in a factory) remain the same. This could have a significant impact on the
organization since it would mean that the customers in various parts of the United States of
America, and many parts of the world, would be given the same quality, which might reduce
the no of customers who have been loyal to the organization. It has thus, become essential for

Industry 4.0 7
the organization to ensure that they can meet the demands of the consumer and that they can
adequately supply all of their products with the same quality and taste.
The current supply-chain process of the organization, and the production chain as well is very
linear. There is no use of cloud computing in the distribution and checking process, and
generally very little automaton as well. The process of measurement and mixing of
ingredients is dependent on the human workers in the organization, and this can lead to a
difference in the taste of the burgers as well (Dalenogare, et al., 2018). Hence, there is an
urgent need for cloud computing and organizational automation in the production line. By
using machines to measure and mix the ingredients, it could change the taste and make it
even over all the production and distribution structures as well.
The process currently is the following. The first step is the procurement of the ingredients
from the manufacturers, which is followed by the process of washing the ingredients, and
ensuring that the ingredients are chopped. The next step would be the mixing process, where
all the ingredients are mixed (Angrisan, et al., 2018). Then the ingredients are cooked if
needed and then frozen partway. The next process would be where the ingredients are
packaged, and the final step would be the storing and transportation. The current chart does
not use any automation regarding robots doing the lifting, or the packaging. It is also not
connected to cloud computing in any way, which can often be of benefit to the organization.
Suppliers Gathering of Ingredients
Screening, Cutting
and Processing
Distribution
within the plant
Transportation
to various outlets

Industry 4.0 8
Source: Self-made
It would be essential to note that using the Industry 4.0 model would be extremely beneficial.
The main areas where the model would be applied would be during the screening and mixing
of the ingredients. It would also be used in many ways during the entire process of ensuring
that the storage of data, can be linked to all the manufacturing plants, and the stores, so that
Well. This would be beneficial to the organization since it would eliminate the need for
human employees in the organization, and it would cause the organization to eliminate many
of the mistakes that are made by the employees as well.
Source: Self-made
As it can be seen, the various processes that the organization has have been linked to the
cloud or the automation, to make the process easier, and to ensure that there is faster delivery
of the various ingredients and products. This can have a dramatic impact on the organization,
and can change the process to make it simpler and to ensure that there is not a place that is
without the ingredients needed, and of quality (Biczok, et al., 2018). The computers would
Suppliers
Linked to cloud
for simplicity
Gathering of Ingredients
Screening, Cutting
and Processing
Distribution
within the plant
Transportation
to various outlets
Linked to
automation

Industry 4.0 9
ensure that the organization has been doing the best that it can to make sure that the
organizational design and the supply-chain design is efficient so that the employees have
been able to serve the best possible meal to the customers.
Conclusion
The following looks at some of the important moments of Industry 4.0, which has been
instrumental in ensuring that the manufacturing and supply chain industry has been adapting
to the latest technology and ensuring that everything is automated.
The above paper looks at McDonald’s and how it can be positively influenced by the supply
chain and manufacturing industry to have the best possible product as well.

Industry 4.0 10
References
Agrawal, A., 2018. Incorporating Industry 4.0 in Firm Strategy. Academy of Management
Global Proceedings, (2018), p.6.
Almada-Lobo, F., 2016. The Industry 4.0 revolution and the future of manufacturing
execution systems (MES). Journal of innovation management, 3(4), pp.16-21.
Angrisani, L., Arpaia, P., Bonavolonta, F. and Moriello, R.S.L., 2018. Academic FabLabs for
industry 4.0: Experience at University of Naples Federico II. IEEE Instrumentation &
Measurement Magazine, 21(1), pp.6-13.
Biczok, R., Busch, K., Heinrich, R. and Reussner, R., 2018. An Industry 4.0 Case Study: The
Integration of CoCoME and xPPU. Technical Report, 10.5445/IR/1000084283.
Dalenogare, L.S., Benitez, G.B., Ayala, N.F. and Frank, A.G., 2018. The expected
contribution of Industry 4.0 technologies for industrial performance. International Journal of
Production Economics, 204, pp.383-394.
Galletta, A., Carnevale, L., Celesti, A., Fazio, M. and Villari, M., 2018. A Cloud-Based
System for Improving Retention Marketing Loyalty Programs in Industry 4.0: A Study on
Big Data Storage Implications. IEEE Access, 6, pp.5485-5492.
Gilchrist, A., 2016. Introducing Industry 4.0. In Industry 4.0(pp. 195-215). Apress, Berkeley,
CA.
Junior, J.A.G., Busso, C.M., Gobbo, S.C.O. and Carreão, H., 2018. Making the links among
environmental protection, process safety, and industry 4.0. Process Safety and Environmental
Protection, 117, pp.372-382.
Lasi, H., Fettke, P., Kemper, H.G., Feld, T. and Hoffmann, M., 2014. Industry 4.0. Business
& Information Systems Engineering, 6(4), pp.239-242.

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Liu, Y. and Xu, X., 2017. Industry 4.0 and cloud manufacturing: A comparative
analysis. Journal of Manufacturing Science and Engineering, 139(3), p.034701.
Popkova, E.G., Ragulina, Y.V. and Bogoviz, A.V., 2018. Fundamental Differences of
Transition to Industry 4.0 from Previous Industrial Revolutions. In Industry 4.0: Industrial
Revolution of the 21st Century (pp. 21-29). Springer, Cham.
Qi, Q. and Tao, F., 2018. Digital twin and big data towards smart manufacturing and industry
4.0: 360 degree comparison. IEEE Access, 6, pp.3585-3593.
Szozda, N., 2017. Industry 4.0 and its impact on the functioning of supply
chains. LogForum, 13(4), pp.401-414.
Tseng, M.L., Tan, R.R., Chiu, A.S., Chien, C.F. and Kuo, T.C., 2018. Circular economy
meets industry 4.0: Can big data drive industrial symbiosis?. Resources, Conservation and
Recycling, 131, pp.146-147.
Xu, L.D., Xu, E.L. and Li, L., 2018. Industry 4.0: state of the art and future
trends. International Journal of Production Research, 56(8), pp.2941-2962.