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Procedia CIRP 40 (2016) 536 – 541

13th Global Conference on Sustainable Manufacturing - Decoupling Growth from Resource Use

Opportunities of Sustainable Manufacturing in Industry 4.0

T. Stock*, G. Seliger
Institute of Machine Tools and Factory Management, Technische Universität Berlin, 10587 Berlin, Germany
Production Technology Centre, Office PTZ 2, Pascalstraße 8-9, D-10587, Berlin, Germany
* Corresponding author. Tel.: +49 (0)30 314 244 57; fax: +49 (0)30 314 227 59. E-mail address: stock@mf.tu-berlin.de

Abstract

The current globalization is faced by the challenge to meet the continuously growing worldwide demand for capital and consumer goods by
simultaneously ensuring a sustainable evolvement of human existence in its social, environmental and economic dimensions. In order to cope
with this challenge, industrial value creation must be geared towards sustainability. Currently, the industrial value creation in the early
industrialized countries is shaped by the development towards the fourth stage of industrialization, the so-called Industry 4.0. This development
provides immense opportunities for the realization of sustainable manufacturing. This paper will present a state of the art review of Industry 4.0
based on recent developments in research and practice. Subsequently, an overview of different opportunities for sustainable manufacturing in
Industry 4.0 will be presented. A use case for the retrofitting of manufacturing equipment as a specific opportunity for sustainable
manufacturing in Industry 4.0 will be exemplarily outlined.
© 2016 The
© The Authors.
Authors. Published by Elsevier B.V.
B.V. This is an open access article under the CC BY-NC-ND license
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing
Keywords: Sustainable development; Factory; Industry 4.0

1. Introduction perspectives of Industry 4.0 will be visualized and analyzed.

Subsequently, approaches to sustainable manufacturing are
The industrial value creation in the early industrialized combined with the requirements of Industry 4.0 and an
countries is currently shaped by the development towards the overview of opportunities for sustainable manufacturing in the
fourth stage of industrialization, the so-called Industry 4.0. macro and micro perspectives will be presented. Finally, a use
This development follows the third industrial revolution case for retrofitting of equipment as a specific opportunity for
which started in the early 1970s and was based on electronics sustainable manufacturing in Industry 4.0 will be exemplarily
and information technologies for realizing a high level of outlined.
automation in manufacturing [1].
The development towards Industry 4.0 has presently a 2. State of the Art
substantial influence on the manufacturing industry. It is
based on the establishment of smart factories, smart products The main ideas of Industry 4.0 have been firstly published
and smart services embedded in an internet of things and of by KAGERMANN in 2011 [4] and have built the foundation
services also called industrial internet [2]. Additionally, new for the Industry 4.0 manifesto published in 2013 by the
and disruptive business models are evolving around these German National Academy of Science and Engineering
Industry 4.0 elements [1,3]. (acatech) [1]. At European level, the Public-Private
This development towards an Industry 4.0 provides Partnership (PPP) for Factories of the Future (FoF) addresses
immense opportunities for realizing sustainable and develops Industry 4.0-related topics [5]. The contents of
manufacturing using the ubiquitous information and Industry 4.0 in the US are promoted by the Industrial Internet
communication technology (ICT) infrastructure. This paper Consortium (ICC) [6].
will present a state of the art review of Industry 4.0 based on
recent research and practice. Wherein, the macro and micro

2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing
doi:10.1016/j.procir.2016.01.129
 T. Stock and G. Seliger / Procedia CIRP 40 (2016) 536 – 541 537

The paradigm of Industry 4.0 is essentially outlined by 2.1. The Macro Perspective of Industry 4.0
three dimensions [3, 7, 8]: (1) horizontal integration across the
entire value creation network, (2) end-to-end engineering The macro perspective of Industry 4.0 as shown in Figure
across the entire product life cycle, as well as (3) vertical 1 covers the horizontal integration as well as the end-to-end
integration and networked manufacturing systems. engineering dimension of Industry 4.0. This visualization is
The horizontal integration across the entire value creation based on a strong product-life-cycle-related point of view by
network describes the cross-company and company-internal putting cross-linked product life cycles as central element of
intelligent cross-linking and digitalization of value creation the value creation networks in Industry 4.0.
modules throughout the value chain of a product life cycle The horizontal integration from the macro perspective is
and between value chains of adjoining product life cycles [7]. characterized by a network of value creation modules. Value
The end-to-end engineering across the entire product life creation modules are defined as the interplay of different
cycle describes the intelligent cross-linking and digitalization value creation factors i.e., equipment, human, organization,
throughout all phases of a product life cycle: from the raw process and product [12]. The value creation modules,
material acquisition to manufacturing system, product use, represented in their highest level of aggregation by factories,
and the product end of life [7]. are cross-linked throughout the complete value chain of a
Vertical integration and networked manufacturing systems product life cycle as well as with value creation modules in
describes the intelligent cross-linking and digitalization within value chains of adjoining product life cycles. This linkage
the different aggregation and hierarchical levels of a value leads to an intelligent network of value creation modules
creation module from manufacturing stations via covering the value chains of different product life cycles. This
manufacturing cells, lines and factories, also integrating the intelligent network provides an environment for new and
associated value chain activities such as marketing and sales innovative business models and is thus currently leading to a
or technology development [7]. change in business models.
The intelligent cross-linking and digitalization covers the Displayed in Figure 1, the end-to-end engineering from the
application of an end-to-end solution using information and macro perspective is the cross-linking of stakeholders,
communication technologies which are embedded in a cloud. products and equipment along the product life cycle,
In a manufacturing system, the intelligent cross-linking is beginning with the raw material acquisition phase and ending
realized by the application of so-called Cyber-Physical with the end-of-life phase. The products, the different
Systems (CPS) which are operating in a self-organized and stakeholder such as customers, workers or suppliers, and the
decentralized manner [7, 9, 10]. They are based on embedded manufacturing equipment are embedded in a virtual network
mechatronic components i.e., applied sensor systems for and are interchanging data in and between the different phases
collecting data as well as actuator systems for influencing of a product life cycle. This life cycle consists of the raw
physical processes [9]. CPS are intelligently linked with each material acquisition phase, the manufacturing phase -
other and are continuously interchanging data via virtual containing the product development, the engineering of the
networks such as a cloud in real-time. The cloud itself is related manufacturing system and the manufacturing of the
implemented in the internet of things and services [7]. Being product - the use and service phase, the end-of-life phase -
part of a sociotechnical system, CPS are using human- containing reuse, remanufacturing, recycling, recovery and
machine-interfaces for interacting with the operators [11]. disposal - as well as the transport between all phases.

Fig. 1. Macro perspective of Industry 4.0

538 T. Stock and G. Seliger / Procedia CIRP 40 (2016) 536 – 541

Those value creation modules i.e., factories which are The smart product holds the information about its
embedded in this ubiquitous flow of smart data will evolve to requirements for the manufacturing processes and
so called smart factories. Smart factories are manufacturing manufacturing equipment. Smart logistics are using CPS for
smart products and are being supplied with energy from smart supporting the material flow within the factory and between
grids as well as supplied with water from fresh water factories, customers, and other stakeholders. They are also
reservoirs. The material flow along the product life cycle and being controlled in a decentralized manner according to the
between adjoining product life cycle will be accomplished by requirements of the product. A smart grid dynamically
smart logistics. The stream of smart data between the different matches the energy generation of suppliers using renewable
elements of the value creation networks in Industry 4.0 is energies with the energy demand of consumers, e.g. smart
interchanged via the cloud. factories or smart homes, by using short-term energy storages
Smart data arises by expediently structuring information for buffering. Within a smart grid, energy consumers and
from big data which then can be used for knowledge advances suppliers can be the same.
and decision making throughout the product life cycle [13].
Smart factories are using embedded Cyber-Physical Systems 2.2. The Micro Perspective of Industry 4.0
for value creation. This enables the smart product to self-
organize its required manufacturing processes and its flow The micro perspective of Industry 4.0 presented in Figure 2
throughout the factory in a decentralized manner by mainly covers the horizontal integration as well as the vertical
interchanging smart data with the CPS [14]. integration within smart factories but it also is part of the end-
to-end engineering dimension.

Fig. 2. Micro perspective of Industry 4.0

 T. Stock and G. Seliger / Procedia CIRP 40 (2016) 536 – 541 539

The smart factory as value creation module at the highest Table 1 provides an overview of the main trends and
aggregation level contains different value creation modules on expected development for the different value creation factors
lower aggregation levels such as the manufacturing lines, in Industry 4.0.
manufacturing cells or manufacturing stations. Smart factories
will increasingly use renewable energies as part of a self- Table 1. Trends and expected developments for the value creation factors
sufficient supply in addition to the supply provided by the The manufacturing equipment will be characterized by the
external smart grid [18]. The factory will thus become an application of highly automated machine tools and robots. The

Equipment
energy supplier and consumer at the same time. The smart equipment will be able to flexibly adapt to changes in the other value
grid as well as the energy management system of the smart creation factors, e.g. the robots will be working together
factory will have to be able to handle the dynamic
collaboratively with the workers on joint tasks [2].
requirements of energy supply and feedback. The supply of
The current jobs in manufacturing are facing a high risk for being
fresh water for the value creation modules within the smart
factory is also another essential resource flow, requiring automated to a large extent [16]. The numbers of workers will thus
adequate and intact water reservoirs. decrease. The remaining manufacturing jobs will contain more
The horizontal integration from the micro perspective is knowledge work as well as more short-term and hard-to-plan tasks

Human
characterized by the cross-linked value creation modules [10]. The workers increasingly have to monitor the automated
along the material flow of the smart factory also integrating equipment, are being integrated in decentralized decision-making,
the smart logistics. The in- and outbound logistics from and to
and are participating in engineering activities as part of the end-to-
the factories as part of the smart logistic will be characterized
by transport equipment that is able to agilely react to end engineering.
unforeseen events such as a change in traffic or weather and The increasing organizational complexity in the manufacturing
which is able to autonomously operate between the starting system cannot be managed by a central instance from a certain point
point and the destination. Autonomously operating transport Organization on. Decision making will thus be shifted away from a central
equipment such as Automated Guided Vehicles (AGVs) will instance towards decentralized instances. The decentralized instances
be used for realizing the in-house transport along the material
will autonomously consider local information for the decision-
flow. All transport equipment is interchanging smart data with
making [14]. The decision itself will be taken by the workers or by
the value creation modules in order to realize a decentralized
coordination of supplies and products with the transport the equipment using methods from the field of artificial intelligence.
systems. For this purpose, the supplies and products contain Additive manufacturing technologies also known as 3D printing will
identification systems, e.g. RFID chips or QR codes. This be increasingly deployed in value creation processes, since the costs
enables a wireless identification and localization of all of additive manufacturing have been rapidly dropping during the last
materials in the value chain.
years by simultaneously increasing in terms of speed and precision
Process

Vertical integration and networked manufacturing systems

[17]. This allows designing more complex, stronger, and more
from the micro perspective describes the intelligent cross-
linking of the value creation factors: product, equipment and lightweight geometries as well as the application of additive
human, along the different aggregation levels of the value manufacturing to higher quantities and larger scales of the product
creation modules from manufacturing stations via [17].
manufacturing cells and manufacturing lines up to the smart The products will be manufactured in batch size one according to the
factory. This networking throughout the different aggregation individual requirements of the customer [7]. This mass customization
levels also includes the cross-linking of the value creation
Product

of the product integrates the customer as early as possible in the

modules with the different value chain activities, e.g.
value chain. The physical product will be also combined with new
marketing and sales, service, procurement, etc. [15].
The value creation module in a factory corresponds to an services offering functionality and access rather than product
embedded Cyber-Physical-System. The manufacturing ownership to the customer as part of new business models [17].
equipment, e.g. machine tools or assembly tools, are using
sensor systems for identifying and localizing the value 3. Sustainability in Industry 4.0
creation factors, such as the products or the humans, as well
as for monitoring the manufacturing processes, e.g. the A paradigm Industry 4.0 will be a step forward towards
cutting, assembly, or transport processes. Depending on the more sustainable industrial value creation. In current
monitored smart data, the applied actuators in the literature, this step is mainly characterized as contribution to
manufacturing equipment can react in real-time on specific the environmental dimension of sustainability. The allocation
changes of the product, humans or processes. The of resources, i.e. products, materials, energy and water, can be
communication and exchange of the smart data between the realized in a more efficient way on the basis of intelligent
value creation factors, between the value creation module and cross-linked value creation modules [2].
the transport equipment, as well as between the different
levels of aggregation and the different value chain activities is
being executed via the cloud.
540 T. Stock and G. Seliger / Procedia CIRP 40 (2016) 536 – 541

Besides these environmental contributions, Industry 4.0 Humans will still be the organizers of value creation in Industry 4.0 [8].
holds a great opportunity for realizing sustainable industrial Three different sustainable approaches can be used for coping with the
value creation on all three sustainability dimensions: social challenge in Industry 4.0. (1) Increasing the training efficiency of
economic, social and environmental. Table 2 summarizes the workers by combining new ICT technologies, e.g. virtual reality head-
opportunities of sustainable manufacturing for the macro
mounted displays with Learnstruments. (2) Increasing the intrinsic
perspective of Industry 4.0. Table 3 gives an overview of the
motivation and fostering creativity by establishing new CPS-based
opportunities for the micro perspective. The concepts

Human
presented in both tables merge the most important approaches approaches of work organization and design, e.g. by implementing the
of sustainable manufacturing in current literature with the concepts of flow theory [22] or using new ICT technologies for
trends and developments related to Industry 4.0. implementing concepts of gamification in order to support
decentralized decision-making. (3) Increasing the extrinsic motivation
Table 2. Opportunities of sustainable manufacturing for the macro
perspective by implementing individual incentive systems for the worker, e.g. by

In Industry 4.0, new evolving business models are highly driven by the taking into account the smart data within the product life cycle for

use of smart data for offering new services. This development has to be providing individual feedback mechanisms.

exploited for anchoring new sustainable business models. Sustainable A sustainable-oriented decentralized organization in a smart factory
focuses on the efficient allocation of products, materials, energy and
Business Models

business models significantly create positive or reduce negative impacts

Organization
for the environment or society [19] or they can even fundamentally water by taking into account the dynamic constraints of the CPS, e.g. of
contribute to solving an environmental or social problem [20]. the smart logistics, the smart grid, the self-sufficient supply or the
Additionally, sustainable business models are necessarily characterized customer. This concept towards a holistic resource efficiency is being
by competitiveness on the long-run [20]. In this context, selling the described as one of the essential advantages of Industry 4.0 [2,3].
functionality and accessibility of products instead of only selling the The sustainable design of processes addresses the holistic resource
efficiency approach of Industry 4.0 by designing appropriate
Process
tangible products will be a leading concept.
The cross-linking of value creation networks in Industry 4.0 offers new manufacturing process chains [23] or by using new technologies such
opportunities for realizing closed-loop product life cycles and industrial as internally cooled tools [24].
Value Creation Networks

symbiosis. It allows the efficient coordination of the product, material, The approach for the sustainable design of products in Industry 4.0
energy, and water flows throughout the product life cycles as well as focuses on the realization of closed-loop life cycles for products by
between different factories. Closed-loop product life-cycles help keep enabling the reuse and remanufacturing of the specific product or by
products in life cycles of multiple use phases with remanufacturing or applying cradle-to-cradle principles. Different approaches also focus on
Product

reuse in between. Industrial symbiosis describes the (cross-company) designing for the well-being of the consumer. These concepts can be
cooperation of different factories for realizing a competitive advantage supported by the application of identification systems, e.g. for
by trading and exchanging products, materials, energy, water [21] and recovering the cores for remanufacturing, or by applying new
also smart data on a local level. additional services to the product for achieving a higher level of well-
being for the customer [25].
Table 3. Opportunities of sustainable manufacturing for the micro perspective
The manufacturing equipment in factories often is a capital good with a 4. Retrofitting Use Case
long use phase of up to 20 or more years. Retrofitting enables an easy
and cost-efficient way of upgrading existing manufacturing equipment The objective of this use case has been the development of
with sensor and actuator systems as well as with the related control a retrofitting solution for a desktop machine tool within the
logics in order to overcome the heterogeneity of equipment in factories
laboratory of sustainable manufacturing of the Collaborative
Research Centre 1026 at TU Berlin. The method for
[10]. Retrofitting can thus be used as an approach for realizing a CPS
Equipment

developing the retrofitting solution covers four sequential

throughout a value creation module, such as a factory, with already steps: (1) situation analysis, (2) definition of the monitoring
existing manufacturing equipment. It extends the use phase or strategy, (3) data processing and (4) implementation of the
facilitates the application in a new use phase for the manufacturing equipment in a CPS.
equipment and can essentially contribute to the economic and The situation analysis includes the definition of the list of
environmental dimensions of sustainability. It is particularly suitable requirements. In this case, the retrofitting solution is supposed
to monitor the existing operational states of the equipment:
for small and medium sized companies, being a low-cost alternative to
shut on/off, idling, processing and fault. It also should be easy
the new procurement of manufacturing equipment.
to install as well as cost effective.
Additionally, the situation analysis focuses on the selection
of the sensor system according to the list of requirements.
In terms of the use case, an acceleration sensor has met the
requirements appropriate.
 T. Stock and G. Seliger / Procedia CIRP 40 (2016) 536 – 541 541

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This research was supported the CRC 1026 "Sustainable
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the German Research Foundation (DFG).