The fourth industrial revolution (Industry 4.0) concerns a new approach to production. It is based on the massive introduction of information technology into manufacturing, large-scale automation of business processes, and the spread of artificial intelligence. Industry 4.0 technology promotes management and optimizes all aspects of performance and service. Consequently, it provides a quicker solution to real-time problems with the involvement of technology. At the same time, the application of new processes allows the logistics systems of large enterprises to be configured with maximum profitability and simplicity. Therefore, it is essential to examine the effect of future changes on the operations of enterprises.
The Importance of Global or Technological Development
For Industry 4.0, it is critical to utilize digital technology to create a more flexible and customer-responsive production. In other words, it is essential not only to adapt and implement the technical part but also to encourage workers to progress. The relevance of technological and global engagement is the ability to create a well-functioning and intelligent enterprise (Stevenson, 2017). That is one where the Internet, wireless sensors, software, and other advanced technologies will work together to optimize the production system and enhance customer satisfaction.
The Types of Industries
It is significant to mention that large companies specializing in manufacturing and supplying products worldwide are benefiting from Industry 4.0, such as Amazon. In addition, factories in the automotive enterprise are applying more technologies than producers in other sectors. At the same time, appliance and communications manufacturers such as Siemens are not only adopting new technologies to automate labor but also as parts for goods. The same applies to the heavy industrial produced by GE and Boeing (Stevenson, 2017). Hence, global companies and equipment firms are the first to adopt new technologies.
Advantages and Disadvantages of Development
It is crucial to emphasize the benefits of using new technology to establish operational management. Therefore, operational efficiency will increase because it is possible to obtain more products in a reduced time. The quality of the output products is also enhanced, which provides more value to customers (Stevenson, 2017). At the same time, new services, products, and software are needed to support the transformation of organizations. This will create entirely new product categories and a new workplace. The disadvantages include high costs, not only for implementation and purchase of technology but also for training workers who have to incorporate all the features of Industry 4.0 masterfully (Stevenson, 2017). Accordingly, their expenses will increase with the quality of the goods, affecting the buyers’ purchasing power. Hence, high capital charges negatively influence and mitigate the intensity of technology adoption in businesses.
The Implication for Operations Managers and My Role
Industry 4.0 operations managers are mandated to continue implementing the action improvement methodology. Accordingly, managers need to complete additional training to ensure that they and their work teams have access to information they have not had before. That is, their new responsibilities are to create a holistic and more connected ecosystem for the company that focuses on production and the supply chain. In this way, managers should enhance productivity and reduce process errors (Stevenson, 2017). If I was in charge of logistics management, I would search for acceptable new models applicable to planning, implementing, and controlling the storage of services and products. In this way, I would suggest using cyber-physical systems and cloud computing to reduce logistics costs and expedite the delivery of merchandise.
Hence, the digital transformation of business has a positive impact on creating new opportunities and challenges for operations management. New processes have enabled managers to access, store and process large volumes of data collected from a variety of additional sources, both internal and external to operations. However, many challenges are associated with training the workforce in new operating methods or buying expensive equipment. Accordingly, to obtain a beneficial effect on the enterprise, it is essential to prepare substantial preparation for introducing new technologies.
Stevenson, W. J. (2017). Operations management (13 ed.). McGraw-Hill