2011 Hanover Messe put forward the ‘Industry 4.0’ concept for the first time and ‘Industry 4.0’ roadmap was released in 2013. It is characterized: Horizontal integration across value networks, end-to-end digital integration across the entire value chain and vertical integration and networked production systems.
Industry 4.0 will lead to virtualization and modularization of the production process and supply chain, achieving flexibility and personalization of production based on CPS (cyber-physical system) and IoT (internet of things) together with ERP, MES, PLM, SCM and other software systems.
Industry 4.0 promotes the use of great information, IOT and Artificial Intelligence (AI) as one. This revolution gives an idea of an environment where smart machines not only enable automation of production lines, but can interact with each other, while analyzing and understanding a specific level of production and understanding the minimum human being. Although this revolution is primarily considered to affect most of the manufacturing industry, these innovations will affect retailers, operation companies as well as service providers.
Industry 4.0 and Bangladesh garments industry
The Annual Survey of the Industries of Bangladesh reveals that the manufacturing is dominated by having 96.5% of the industrial establishments and 86% of them contain the apparel products. There are more than about 5000 garment factories, almost 4.4 million people are working. According to the US Green Building Council (USGBC), there are 67 Leadership in Eergy and Environmental Design (LEED) green factories in the RMG sector in Bangladesh. Among them, 13 is LEED Platinum rated, when more than 280 factories are registered with USGBC for LEED certification.
“Garments will be the worst sufferer of Industry 4.0 revolution as there is a possibility of 27 lakh or 60 percent of jobs being lost,” said Anir Chowdhury, Policy Adviser of the a2i project.
Participants from 10 interviews have given similar insights that there are very few applications or applications of automation in important manufacturing industries related to RMG. Therefore, the existence of industrial 4.0 and its establishment level has not yet been proved in Bangladesh. Some themes have been allocated in relation to the issues related to the implementation of the industries in Bangladesh. The themes are shown in the table based on the results of the interview.
|Lack of government support||Lack of knowledge||Poor Infrastructure||Availability of cheaper labor||Expensive installation of technology|
Not only this issue but a sudden change in the new industrial revolution can also hit hard in many terms as in different areas. For applying new revolution steps by steps footprint is necessary or it only creates chaos. Bangladesh still couldn’t fully absorb the third industrial revolution.
Benefits of Industry 4.0
“Fourth industrial revolution transformation is the rapid and variable economy, business and industry, and production, management and governance,” said Abul Kasem Khan, President of the Dhaka Chamber of Commerce & Industry.
So, it’s necessary to think about industry 4.0 to surviving in the industry and to escape from monopoly business applying.
“We do not have only bad news of job losses due to the fourth industrial revolution. We also have some good news,” said Syed Tamjidur Rahman, Vice-President of the BCFIR ( Bangladesh Center for Fourth Industrial Revolution).
Lectra is a technology company who applied the fourth industrial revolution they named Apparel 4.0 and seen these results:
A big group of executives (43%) target only cost reduction with the help of Industry 4.0, while other managers want to have more sales with new products (32%) or more sales with existing products (10%). The objective is to achieve more sales and cost reduction is a wish of 14% of the managers.