Industry 4.0 Concept: Background and Overview

Industry 4.0 is a strategic initiative recently introduced by the German government. The goal of the initiative is transformation of industrial manufacturing through digitalization and exploitation of potentials of new technologies. An Industry 4.0 production system is thus flexible and enables individualized and customized products. The aim of this paper is to present and facilitate an understanding of Industry 4.0 concepts, its drivers, enablers, goals and limitations. Building blocks are described and smart factory concept is presented. A Reference Architecture Model RAMI4.0 and role of standardization in future implementation of Industry 4.0 concept are addressed. The current status of Industry 4.0 readiness of the German companies is presented and commented. Finally it is discussed if Industry 4.0 is really a disruptive concept or simply a natural incremental development of industrial production systems.