Tuesday, July 22, 2025

Industrial Engineering 4.0 - IE in the Era of Industry 4.0

Online Education/Training Session on "Effective Industrial Engineering and Productivity Management."

I developed an online education/training session on "Effective Industrial Engineering and Productivity Management." I can present the session in one hour, one and half hour or two-hour long sessions. The sessions will be valuable when company industrial engineers and other engineers and managers attend as a group. Industrial engineers require active cooperation and participation of other engineers and managers in their studies and projects. Hence a common presentation and discussion on effectiveness will be very useful.


Supporting Information.

Effective Industrial Engineering - Some Thoughts by Narayana Rao K.V.S.S.

Effective industrial engineering has to satisfy management about the contribution it made to the organization year after year.

The prime contribution of IE has to be cost reduction through productivity improvement.

https://nraoiekc.blogspot.com/2025/07/effective-industrial-engineering-some.html

https://www.linkedin.com/in/narayana-rao-kvss-b608007/



New. Popular E-Book on IE.  Introduction to Modern Industrial Engineering.  #FREE #Download.

In 0.1% on Academia.edu. 10,900+ Downloads so far.

https://academia.edu/103626052/INTRODUCTION_TO_MODERN_INDUSTRIAL_ENGINEERING_Version_3_0


Industrial Engineering 4.0 - Case Studies - Industry 4.0 Light Houses - WEF - McKinsey Award Companies






Industrial Engineering 4.0 - Computer Aided Industrial Engineering: Work Systems Analysis in Industry 4.0

Rao, Kambhampati Venkata Satya Surya Narayana; Rathod, Aniket.  IIE Annual Conference. Proceedings; Norcross (2021): 49-54.


Industrial Engineering = Productivity - Efficiency - Cost Reduction


K.V.S.S. Narayana Rao




Industrial Engineering is Industry Expansion Engineering  - Narayana Rao


Industrial engineering increases productivity of resources used in production systems or operating systems and thus decreases unit cost of producing goods or services. Each decrease in cost contributes  to the  price reduction, which a company can offer. Price reductions  lead to expansion of an industry and thus industrial engineering is industry expansion engineering. Invention  and innovation engineers create new industries and industrial engineers expand the industry. Increase in efficiency leads to more production with the constant unit effectiveness and hence total effectiveness of the output of the system increases with increase in efficiency. Hence system efficiency engineering increases total system effectiveness.

The methods, techniques and tools used to do industrial engineering get modified and new ones get developed  with changes in technology and management methods related to industry. Applied industrial engineering is given one punch sentence - "IE in New Technology, IE with New Technology " by Prof. Narayana Rao. The world recognises revolutions in industry, and now the world talks of  Industry 4.0. Industry 4.0 is the result of number of new technologies, many of them in the field of information and communication technologies that make a connected network of machines and equipment possible. Machines can communicate with each other based on the sensors mounted on them and also can pass instructions and make the necessary adjustments on other machines through actuators which respond to digital messages sent to them. While, the new connected engineering systems are in their early days of innovation, the concept's potential to become the main mode of engineering activity (in design, production, operation and maintenance) is well recognized. National governments and international agencies have taken note of this, and strategic initiatives to adopt the technology and become global  leaders in the technology have been started. Germany is a leader in this initiative at the moment.   Industrial Engineering 4.0 is a naturally ally of engineers and managers in Industry 4.0 to supplement as well as complement their work to increase productivity in industries and companies using Industry 4.0 technologies. 


Why Industrial Engineering 4.0?


Leading consulting firms and technology analysts are foreseeing and forecasting productivity improvements due to implementation of industry 4.0 technologies. Some of them made qualitative statements and some have made quantitative estimate regarding the productivity potential. They also say that the productivity or cost reduction estimates will not be realized without creative engineering and management. Industrial engineers have to get into this productivity opportunity and understand this new technology. They have to combine the existing IE practices with the new technologies, develop new productivity science, productivity engineering inventions and manage the implementation process. There is an opportunity for industrial engineers and they have to rise up to the challenge to remain the value adding profession in the new industrial environment like to emerge, which is termed Industry 4.0. 





The industrial engineering profession Germany has taken lead in this evolution of industrial engineering and organized a seminar in 2016.

In Germany, in 2016, a seminar with the theme, "Industrial Engineering 4.0 – Neue Ansätze in vernetzten Produktionen" was organized. The brief details can be seen in the brochures available at
(Full brochure).

A book with selected papers form a conference with the title "Industrial Engineering in the Industry 4.0 Era: Selected papers from the Global Joint Conference on Industrial Engineering and Its Application Areas, GJCIE 2017, July 20–21, Vienna, Austria" is also available, Its editors are Calisir, Fethi, Camgoz Akdag, Hatice (Eds.). The details of the book can be accessed from  http://www.springer.com/us/book/9783319712246 and https://books.google.co.in/books/about/Industrial_Engineering_in_the_Industry_4.html?id=G71EDwAAQBAJ.


The material so far available does not yet clarify the direction in which the profession has to move to make valuable contribution to the engineering industry activity that is likely to evolve. I am making an effort to explain the content of "Industrial Engineering 4.0" based on the Taylor - Narayana Rao Principles of Industrial Engineering, Functions of Industrial Engineering and explanation of Productivity Science, Productivity Engineering and Productivity Management being developed by me and the existing literature and IE practices

The three functions of IE in Industry 4.0 context are being explored and the ideas so far developed are being  circulated in IE social media communities seeking suggestions to enrich them.

Before that, let me state my idea of IE 1.0, IE 2.0 and IE 3.0

IE 1.0 - Taylor, Gilbreth, Emerson, Diemer, Going, Maynard Ideas


IE 2.0 - Involvement of operators, supervisors, production engineers in process improvement and production systems improvement along with industrial engineers.


IE 3.0 - Japanese contribution of IE, Focus on temporary delays, Elimination of delays through low batch quantity production and distribution.


IE 4.0 - Industrial engineering of connected equipment instructed in real time by computers or cloud software systems.


Industrial Engineering 4.0

Computer Aided Industrial Engineering (CAIE)

Industrial Engineering 4.0 uses CAD output for product industrial engineering. Process digital twins,  process plans and process mining output are used for process industrial engineering. Digital twins of various equipment and machines are used for facilities planning.

Industry 4.0 - IIoT Technology - Industrial Engineering - Productivity Science
http://nraoiekc.blogspot.com/2017/12/industry-40-iiot-technology-industrial.html

Industry 4.0 - IIoT - Productivity Engineering
http://nraoiekc.blogspot.com/2017/12/industry-40-iiot-productivity.html

Industry 4.0 - IIoT - Productivity Management
http://nraoiekc.blogspot.com/2017/12/industry-40-iiot-productivity-management.html

Computer Aided Industrial Engineering (CAIE) in Industrial Engineering 4.0  - Proposal by Prof. Narayana Rao K.V.S.S.

Industrial Engineering Data Science - Process Chart Data Analytics

Process Charts, Diagrams, Maps and Process Improvement 4.0



Process Planning & Production Planning in Industry 4.0


Industrial engineers have to improve processes. For that they have to understand process planning. IISE includes design in IE definition. That refers to design of processes. Therefore industrial engineers can participate in process design or lead process design efforts.

Process Planning in Industry 4.0 Environment☆
Maja Trstenjak, Predrag Cosic
Procedia Manufacturing
Volume 11, 2017, Pages 1744-1750

Process Planning in Industry 4.0—Current State- MDPI

Process Planning in Industry 4.0 Environment
by M Trstenjaka · 2017 ·

Process Planning in Era 4.0
Kaushik Kumar, Divya Zindani,J. Paulo Davim
Industry 4.0 pp 19-26

First vision platform built for industrial engineering.
Sensable, Inc.  (Indicated by Prof. Shahrukh Irani in a LinkedIn comment)

PLANNING AND SCHEDULING – A KEY ENABLER OF INDUSTRY 4.0 TRANSFORMATION
October 15, 2018


Production Planning Software and Industry 4.0
September 11, 2018, Eric Howard
https://www.simio.com/blog/2018/09/11/production-planning-software-industry-4-0/

Planning for Industry 4.0 with Simulation
https://www.simul8.com/applications/manufacturing/implementing-industry-4-0-with-simulation

INDUSTRY 4.0 READINESS FACTOR CALCULATION



Industry 4.0-Driven Development of Optimization Algorithms: A Systematic Overview
Róbert Csalódi , Zoltán Süle , Szilárd Jaskó , Tibor Holczinger , and János Abonyi 
Complexity / 2021 /Special Issue
Theory and Applications of Cyber-Physical Systems

Dynamic Process Planning using Digital Twins and Reinforcement Learning
Zai Müller-Zhang; Pablo Oliveira Antonino; Thomas Kuhn
2020 25th IEEE International Conference on Emerging Technologies and Factory Automation (ETFA)
https://ieeexplore.ieee.org/document/9211946

Industry 4.0 in the product development process: benefits, difficulties and its impact in marketing strategies and operations
Iara Franchi Arromba , Philip Stafford Martin , Robert Cooper Ordoñez , Rosley Anholon , Izabela Simon Rampasso , Luis Antonio Santa-Eulalia , Vitor William Batista Martins , Osvaldo Luiz Gonçalves Quelhas 
Journal of Business & Industrial Marketing, Volume 36 Issue 3
https://www.emerald.com/insight/content/doi/10.1108/JBIM-01-2020-0014/full/html

Manufacturing - Material Processing 4.0


Industry 4.0 for machine tools

Achieving Industry 4.0 in Pre-machining Processes (Part I: Theory)
Industry 4.0
By: Drew Strauchen, HAIMER USA

Achieving Industry 4.0 in Pre-machining Processes (Part II: Execution)
Industry 4.0 Execution
By: Drew Strauchen, HAIMER USA

How Haas fulfills the promise of Industry 4.0?
All new Haas machines have the ability to send data from the machine’s CNC to a centralized data system, allowing them to integrate smoothly with new or existing Industry 4.0 environments.

The Machining 4.0 Project
Impact
1000 SMEs acquired knowledge on innovative machining technologies, 250 SMEs experimented with new technologies and collaborated with R&D partners and 50 SMEs received intensive business support. This increases the knowledge/innovation level for machining in NWE.


Sensors in Machine Tools - Data Generation and Analysis - Output of Data Science - Productivity and Quality Engineering


Quality 4.0


Experience-Based Product Inspection Planning for Industry 4.0
Muhammad Bilal Ahmed,Farhat Majeed,Cesar Sanin &Edward Szczerbicki
Cybernetics and Systems 
An International Journal
Volume 52, 2021 - Issue 5: Cognitive Systems, Concepts, Processes, and Techniques for the Age of Industry 4.0
Pages 296-312 
https://www.tandfonline.com/doi/abs/10.1080/01969722.2020.1871222

QUALITY 4.0 IMPACT AND STRATEGY HANDBOOK - SAS
https://www.sas.com/content/dam/SAS/en_us/doc/whitepaper2/quality-4-0-impact-strategy-109087.pdf

QUALITY 4.0

Material Handling 4.0


How Industry 4.0 Material Handling Technology Impacts Critical KPIs
Dec 12, 2019

Warehousing 4.0 - Controlled Storage 4.0


WAREHOUSING 4.0
The age of the smart warehouse

WAREHOUSE 4.0: Accelerate Your Digital Journey
NOV 02, 2020

Lean Inventories - Reduced Delays in Process Flow 4.0

Six Lean Principles for an Industry 4.0 World

Mar 1, 2019
by Mark Crawford

Lean systems are designed to provide expected value to customers and expected profit to organizations.

1. Learn from Developments in Engineering and Gemba
2. Work with a team - Obeya
3. Focus on Lean product and process development (LPPD) -  Product IE, Process IE, SMED, Flow,
4. Use Cellular Manufacturing for Parts Manufacturing
5. Have a well designed and well kept Factory Premises, Layout and Workstations (5S)
6. Reduce defects (Poka Yoke)

Lean and Industry 4.0
August 7, 2018 by Christoph Roser

Industry 4.0 and Lean Manufacturing: A systematic literature review and future research directions
Marcos Pagliosa , Guilherme Tortorella , Joao Carlos Espindola Ferreira 
Journal of Manufacturing Technology Management, Volume 32 Issue 3

Why Industrial Engineering 4.0?


Leading consulting firms and technology analysts are foreseeing and forecasting productivity improvements due to implementation of industry 4.0 technologies. Some of them made qualitative statements and some have made quantitative estimate regarding the productivity potential. They also say that the productivity or cost reduction estimates will not be realized without creative engineering and management. Industrial engineers have to get into this productivity opportunity and understand this new technology. They have to combine the existing IE practices with the new technologies, develop new productivity science, productivity engineering inventions and manage the implementation process. There is an opportunity for industrial engineers and they have to rise up to the challenge to remain the value adding profession in the new industrial environment like to emerge, which is termed Industry 4.0. 

The Opinions and Thoughts of Consultants and Technology Analysts

Accenture
The Growth Game-Changer: How the Industrial Internet of Things can drive progress and prosperity
Mark Purdy and Ladan Davarzani
2015

"In the 20 countries we analyzed, current policy and investment trends in IIoT products and technologies point to cumulative real GDP contributions of US$10.6 trillion by 2030. With greater investment and the enactment of key measures to absorb IIoT technologies, that figure could rise to US$14.2 trillion."

Benefit to United States

"In our model, the IIoT is projected to add US$6,132 billion to United States’ GDP in the next 15 years under current conditions. However, by taking additional measures such as improving the country’s broadband infrastructure, this figure could grow to US$7,146 billion."


One can observe the significance of the impact of Industry 4.0 and can also the see importance being given to creative engineering and management of the applications of these technologies in Accenture report.

BCG


THE NINE PILLARS OF TECHNOLOGICAL ADVANCEMENT

"Many of the nine advances in technology that form the foundation for Industry 4.0 are already used in manufacturing, but with Industry 4.0, they will transform production: isolated, optimized cells will come together as a fully integrated, automated, and optimized production flow, leading to greater efficiencies and changing traditional production relationships among suppliers, producers, and customers—as well as between human and machine."

Productivity Potential in Germany 

"During the next five to ten years, Industry 4.0 will be embraced by more companies, boosting productivity across all German manufacturing sectors by €90 billion to €150 billion. Productivity improvements on conversion costs, which exclude the cost of materials, will range from 15 to 25 percent. When the materials costs are factored in, productivity gains of 5 to 8 percent will be achieved. "



EY
Digitalization in industrial products Harnessing the power of digital
2016

Maximum potential economic benefits in factory settings by 2015 in  US$ billion are provided by possible benefit areas (Implies focused and successful design and implementation of IoT projects) . A  McKinsey report is given as the source of the figures. The following are the areas and the benefit envisaged.

Operations optimization:  $1766 billions, 
Predictive maintenance: $627 billion
Inventory optimization: $342
Safety: $226 billions
Human productivity: $160 bilion 
Others: 587 billion

So, there are significant productivity benefits expected from the implementation of new technologies and there is a role for productivity engineering that is industrial engineering.

IBM


The McKinsey Institute expects Industry 4.0 applications enabled by the Internet of Things to create a new surge of factory productivity. This would provide a productivity increase of 10 – 25 percent and would amount to as much as $1.8 trillion per year in 2025.

KPMG

Digitalization in industrial products: Harnessing the power of digital
2016

Efficiency benefits are explained in pages 17 and 18.


PWC


Industry 4.0 will revolutionise industrial production. Digitisation brings enormous benefits.

"Industrial companies expect to generate 3.6% p.a. in cost reductions over the next five years, driven by internal improvements and by working more closely across value chains. They’re also expecting to generate 2.9% p.a. in increased revenues by digitising products and services and developing new digital service offerings, all the way through to hosting platforms for industrial ecosystems."

Getting there won’t be easy. And it won’t come cheap. Investments in Industry 4.0 capabilities are expected to reach around 5% of annual revenues p.a.  Investment will be $907 billion per annum till 2020.  Cost reduction benefit will be $421 billion and revenue increase benefit will be $493 billion.

So all the leading consulting firms have published reports based on their studies highlighting the potential of Industry 4.0 transformation of engineering in the world. It has revenue increasing potential by facilitating the creation of new products and services which customers will buy and use and also, it has productivity potential by facilitating the productivity improvement and cost reduction in production, operation and maintenance of current products. Industrial engineers have a role to play in both the segments. They have to make sure that new processes being developed to produce new products are efficient and productivity to begin with. Also they have to improve the productivity of production/engineering processes of current products. Industrial Engineering 4.0 needs to be developed by industrial engineering researchers, consultants and practitioners in academic, consulting and corporate sector by understanding the new technologies, doing research and converting the productivity opportunities into productivity engineering and management solutions.

In the blog book to be developed by me in the coming days (this blog post being  the first one in the series), I shall write my ideas regarding the various phases based on the research that I was carrying on this issue specially since August 2017.

So far, I made number of blog posts on Industry 4.0 and IoT. I  give the links of those articles below.


Articles/Blog Posts on Industry 4.0 by Narayana Rao


Productivity “Industry 4.0, Leapfrog Opportunity for India” - Productivity Week Theme - India 2018
http://nraoiekc.blogspot.com/2017/11/productivity-industry-40-leapfrog.html


Data Analytics Period in Productivity Improvement - Productivity Engineering and Management
http://nraoiekc.blogspot.com/2017/06/data-analytics-period-in-productivity.html

Digital Transformation at Daimler Benz
http://nraoiekc.blogspot.com/2016/04/digital-transformation-at-daimler-benz.html

Industrial Engineering 4.0 - IE in the Era of Industry 4.0 - The German Initiative
http://nraoiekc.blogspot.com/2018/01/industrial-engineering-40-ie-in-era-of.html


Process Charts, Diagrams, Maps and Process Improvement 4.0.
Manufacturing - Material Processing 4.0 - Quality 4.0 - Material Handling 4.0 - Lean Inventories - https://nraoiekc.blogspot.com/2017/12/industrial-engineering-40-ie-in-era-of.html

Process Planning & Production Planning in Industry 4.0.
https://nraoiekc.blogspot.com/2017/12/industrial-engineering-40-ie-in-era-of.html

Sensors in Machine Tools - Data Generation and Analysis - Output of Data Science - Productivity and Quality Engineering


Smart Factory - Concept and Research - Industrial Engineering 4.0



High Productivity Through Smart Factories - Industry 4.0 - Bulletin Board  

Data Analytics Period in Productivity Improvement - Productivity Engineering and Management

Productivity Improvement Through Smart Machines

Productivity Improvement Techniques and Industry 4.0 Technologies - Interface and Interation

Productivity Improvement - “Industry 4.0, Leapfrog Opportunity for India” - Productivity Week Theme - India 2018

Applied Industrial Engineering  - Industrial Engineering 4.0 - IE in Industry 4.0 Engineering Systems and Processes 
https://nraoiekc.blogspot.com/2018/05/applied-industrial-engineering-process.html

Industrial Engineering & ISE - Engineering & Technology, Process, and People
https://nraoiekc.blogspot.com/2020/11/industrial-engineering-ise-engineering.html

Technology Monitoring for Applied Industrial Engineering - Digital Twins  
http://nraoiekc.blogspot.com/2018/06/monitor-technology-monitoring-applied.html

Digital Twin - Bibliography

Digital Twins of CNC Machines - Bibliography

Process Digital Twin
https://nraoiekc.blogspot.com/2018/09/process-digital-twin.html

Supply Chain Digital Twin - Introduction
https://nraoiekc.blogspot.com/2020/12/supply-chain-digital-twin.html

Digital Twins of Machine Tools
https://nraoiekc.blogspot.com/2020/12/digital-twins-of-machine-tools.html

Digital Twins for Machine Tools and Machine Tool Components and Accessories
https://nraoiekc.blogspot.com/2020/02/digital-twins-for-machine-tools-and.html

SAP Digital Twin Software & Technology - Introduction
https://nraoiekc.blogspot.com/2020/09/sap-digital-twin-software-technology.html




New Ways to do Industrial Engineering Studies



Industrial Engineering through Digital Twins

Industrial Engineering through Process Mining



Bibliography




Lean Industry 4.0
https://www.bcg.com/publications/2017/lean-meets-industry-4.0.aspx



Industrial Engineering 4.0 was already mentioned in the following references.

Industrial Engineering 4.0 – Neue Ansätze in vernetzten Produktionen  A seminar in 2016
https://www.sv-veranstaltungen.de/fachbereiche/2-fachkonferenz-industrial-engineering/

https://www.tu-chemnitz.de/mb/FabrPlan/Professur/Industrial_Engineering_Internet.pdf  (Full brochure)

Industrial Engineering in the Industry 4.0 Era
Selected papers from the Global Joint Conference on Industrial Engineering and Its Application Areas, GJCIE 2017, July 20–21, Vienna, Austria
Editors: Calisir, Fethi, Camgoz Akdag, Hatice (Eds.)
http://www.springer.com/us/book/9783319712246


Industry 4.0 - Online Library
http://www.plattform-i40.de/I40/Navigation/EN/InPractice/Online-Library/online-library.html

Managing Transformation to Industry 4.0 Engineering - Production Systems

Industry 4.0: Managing The Digital Transformation
Alp Ustundag, Emre Cevikcan
Springer, 14-Sept-2017 



Related News

The theme of the conference — “Industrial Engineering 4.0” — will focus on the fourth industrial revolution and the transition to “smart factory” manufacturing.
Penn State Behrend to host regional IISE conference
December 3, 2019
The conference is being organized by  Faisal Aqlan, assistant professor of industrial engineering and the adviser for the IISE chapter at Penn State Behrend and student conference co-chairs Aaron Slavin and Safinaz El-Hadary.

How Industry 4.0 Impacts Engineering Design
Jul 11, 2018
by Mark Crawford
ASME.org

Systematic Review • Prod. 32 • 2022 • https://doi.org/10.1590/0103-6513.20220028   COPY
Digital competences of the industrial engineer in industry 4.0 a systematic vision
Walter Rosas Quintero



(C) Narayana Rao K.V.S.S. 2018


Industrial Engineering 4.0 Module of Industrial Engineering Online Course Notes


Industrial Engineering 4.0 - IE in the Era of Industry 4.0.
Lesson 442  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
https://nraoiekc.blogspot.com/2017/12/industrial-engineering-40-ie-in-era-of.html

 

Industry 4.0 - A Note for Industrial Engineers for Industrial Engineering 4.0 (IE 4.0). 
Lesson 443  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
http://nraoiekc.blogspot.com/2018/01/industry-40-note-for-industrial.html

The Science and Art of Machine and Operator Productivity in Industry 4.0
#IndustrialEngineering #Productivity #CostReduction  #Industry40
https://nraoiekc.blogspot.com/2023/04/the-science-and-art-of-machine-and.html


Augmented Reality - Exploration
Lesson 444  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
#IndustrialEngineering #Productivity #CostReduction #Automation  
https://nraoiekc.blogspot.com/2018/07/augmented-reality-exploration.html

Autonomous Robots - A Note for Industrial Engineers for Industrial Engineering 4.0 (IE 4.0)
Lesson 445  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
http://nraoiekc.blogspot.com/2018/01/autonomous-robots-note-for-industrial.html

Data Analytics Period in Productivity Improvement - Productivity Engineering and Management
Lesson 446  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
https://nraoiekc.blogspot.com/2017/06/data-analytics-period-in-productivity.html

Cloud Computing - Engineering Economic and Financial Analysis
Lesson 447  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
https://nraoiekc.blogspot.com/2018/04/cloud-computing-engineering-economic.html

IoT Technology - Exploration - Industrial Engineering Point of View
Lesson 448  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.
https://nraoiekc.blogspot.com/2018/06/iot-technology-exploration-industrial.html

Simulation and Forecasting - A Note for Industrial Engineers for Industrial Engineering 4.0 (IE 4.0)
Lesson 449  of  Industrial Engineering ONLINE Course - Applied Industrial Engineering Module.

Join the LinkedIn Group - Industrial Engineering & Digital Transformation



Updated 22.7.2025,   7.2.2024, 9.4.2023,  29.4.2022, 11.12.2021,  9 July 2021, 15 January 2021,  8 January 2018
First published on 31 December 2017












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