It is important to describe what the concept of Industry 4.0 is and for doing that, to define what ‘automation’ is, before answering the question, I believe.
In the simplest definition, automation is machine-human collaboration. Automation has different levels as full, half or different levels. Its impacts vary, depending on its level. But with respect to its impact on production and industry, we can interpret automation as an application directly affecting efficiency, quality, cost and sustainability. Using automation allows you not to increase efficiency and quality, but to reduce the costs. And this ensures sustainability of production. The most important issue preventing sustainability of production is labor. On the other hand, labor is a significant cost element. The less people you use for production, the less your costs. Therefore, automation and Industry 4.0 target production independent of people. Because this means flexible, efficient, quality, sustainable and humane production with minimum cost.
Industry 4.0 is the hottest topic in current world of technology. Therefore, I would like to address how the concept Industry 4.0 emerged. Industry 4.0 has been developed to compete against China. When developed countries such as USA, Europe and Japan had not chance of beating China in workmanship, the concept of Industry 4.0 emerged. In China with its population exceeding a billion, cost of labor is low and it is almost impossible to compete against China that has such an advantage. Labor fees is 100 dollars in China, while they are about 3-4 thousand Euros in Germany. How will you compete? China’s population is
1.5 million, but population in Germany is getting old. Within the next 10 years, 6.5 million people will get retired in Germany. This problem has become a fact faced by all developed countries in 2008. Considering their future, they have developed long term strategies. They came together, thinking ‘If we cannot beat workmanship, let’s build a production system that does not have workmanship, but has R&D, technology and mental works. This is the only way to beat China’. They created a system to create mental competition, rather than physical. They understood that it is a requirement to ensure competitive advantage with reason. This is why the idea was created in Europe for the first time. For sure, transition to Industry 4.0 does not take a day. Any kind of preparations have to be made for that. Even Germany and developed countries state that complete transition to Industry 4.0 will be around 2025-2030. Despite that, those who fail to know and understand the issue well think that transition to Industry 4.0 has already taken place. On the contrary, foundations, rules and standards of this revolution has been created recently.
Every industrial revolution from past to now has been a fact that affected and changed not only the manner of production, but also people’s lifestyles. The 2nd and 3rd industrial revolutions made out way of living incredibly difficult and humankind felt that it was born to work merely. Although working conditions were improved over time, a significant part of our lives is based on working. And now a great change is ahead of us in the 4th Industrial Revolution.
There are big dreams and plans for the future. It is attempted to create a world, where people do not work physically, but with their brains. A year is to come, when human life is 150-200 years, only machines make production, airplanes do not crash, electronic systems are installed on roads, there are no accidents and operations are bloodless. The aim is having the machines make the production, not having people the work and letting them work mentally, instead of physically. I should particularly note that elimination of human power almost completely will affect not only production, but also our life. Professions to be done with information and mentally rather than those done physically, the work branches and professions that we do not know yet will emerge. Thus, impact of Industry 4 is quite different, it will cause a very serious change. Rules of competition will change. The aim is to create a society that leads to think and to create an education system and lifestyle accordingly.
At this point, with “Automation”, with “Industry 4.0”, first production and then our life will change. Cost of the products produced with Automation, with Industry 4.0 will reduce almost by half. Production will be flexible. Very fast changes can be made in production, according to the demand and conditions. Not only customer satisfaction will increase, but stock costs will reduce. Resources and energy will be used efficiently and there will be no human resources cost. All these will reduce both production and product prices. Those who currently work for 8 hours will work for 4 hours, when that day comes. So how about these workers? A work performed by 1 person will be performed by 3, so unemployment problem will be solved. Not only the costs, but also the wages will reduce to one third. However, due to the reduction in product prices, people can have their normal life, even if their wages reduced.
It is discussed that in Industry 4.0 period, machines can work on their own and provide solutions by communicating with the other machines in the environment. Thus, machines will communicate with words, like people do. There will be the machines that can make production on their own, report what they produced and even analyze the problems in the production and offer solutions, in the next stage. Smart machines that will never hinder the production will be used.
Now such productions are partially available in some developed countries. Such productions are found in only a few of the companies that use technology intensely, but there is no company that developed and is implementing the Industry 4.0 as we described. There are plants without people, but it is not enough to realize the Industry 4.0. Because this revolution requires an integrated process. Producing a product without people is not Industry 4.0. This is an ‘integrated process and lifestyle’. It covers the entire process from the customer’s order to delivery. A process that can ensure production traceability, controllability and realizing it in minimum time, independent from people. Thus, it is not only production. Currently we are trying to make production human-free, but we are not at the desired level, with respect to the other rings of the process. In short, the world is in phase of crawling.
Regarding the point Turkey arrived at with respect to Industry 4.0; Currently, the pride lies in producing the technology, rather than using it. Our country must aim to do so. Large global companies can bring Industry 4.0 to Turkey and implement it. It will not be troublesome for them, but for us. We need to be a country that produces and develops Industry 4.0, instead of getting it from abroad. This is when we can be a global player. It is very dangerous to import and be dependent. On the other hand, it will be far more expensive to buy from abroad, compared to producing on our own. The key point is to create an Industry 4.0 that we can produce. And Turkey has the required infrastructure to do that. As ENOSAD, we are ready to provide any kind of support. We can provide any kind of sectors with relevant training and service. Because our automation sector has the engineering structure sufficient to provide service for and make contribution to the companies getting ready for Industry 4.0 and several sectors such as Chemistry and Petrochemistry, Iron-Steel, Food, Cement, Pharmaceutical, Automotive, Textile, Glass, Ceramics,
Energy, Paper, Water and Waste Water Treatment, Oil and Gas and Machine Manufacturers, as well as the properties not found in any other sector. Turkey that is in the middle of the world is cheaper compared to Europe, but provide higher quality service compared to east. We are the ideal service provider. We have advantages with regard to our geographical location, the service we provide and quality of our service. Automation sector operates as the subcontractor of the industry. Success of the companies will allow us to grow. We need to be in interaction to grow one another and Automation sector has to be in interaction with all other industrial and production sectors.
However, our country’s industry considers automation by focusing on the cost. Industrialists do not want to pay the engineering fee with respect to automation, do not want to invest in that. The issue has not been paid required importance so far. Some companies use the same software program without making a single change for almost 10 years. This means that the company concerned has never developed its production system within that period. Above all, the companies need to use automation in order to develop technology and production and to make revision. This is where the importance of Industry 4.0 starts. Currently the companies in Turkey are in somewhere between Industry 2 and 3. It is now a requirement for them to make maximum collaboration with the automation companies for us to experience the industrial revolutions.
To this end, all sectors, particularly machine sector must consider automation companies as a business partner, rather than a subcontractor. They need to bring automation to their lives, in order to improve production. Currently more than a half of our industry has met automation and uses it in its production system more or less. This rate needs to increase more. We do not have much time not to leave behind the wind blowing in the new production system and the topics discussed. Turkey has missed the opportunity for Industry 3. But all countries have equal conditions for Industry 4.0. A period of opportunities is ahead of us. Our country with its young population, dynamic structure and engineering infrastructure has to use this period. Automation sector has a bright future and the companies need to meet automation.
As in all sector in Turkish industry, cement sector’s objective must be Industry 4.0 and it must prepare itself for Industry 4.0 by using automation at the maximum level. Producers in the sector must make production independent of people, if that is possible. They can realize automation with the automation companies or a team of their own, through software and technology. In a sense, we need to get ready soon. In our country, there are currently some companies that have a certain capacity and that sell machines to abroad. At this point, companies must be brave and not afraid of Industry 4.0.
In fact, Industry 4.0 is a very good opportunity to become a global player. They have a new and unique business opportunity ahead of us. They need to see it and make investments accordingly. On the other hand, new works are performed in our country with respect to training of the qualified staff to ensure automation in machine production. They also need to follow that. To give more details, a new profession called digital industry operator is emerging. In short, operators fit for Industry 4.0 are coming. A law to raise this staff will be enacted. Standard of this profession is being created, with the guidance of the government. As ENOSAD, we gave our opinions. We do not need technicians now, as we did before. Now we need operators who know Internet of things, can work with information and can use virtual reality goggles. Such a department will be founded at universities, and currently its infrastructure its being created. Such structures are new in the world. Machine producers must get the consciousness to invest in and acquire such qualified staff. Machine companies are obliged to hire and employ engineers and technicians knowledgeable in advanced technology and to work with staff who work mentally. They have to use technicians and technical staff who are able to use advanced technology. Or they need to obtain support from the other companies alike. Otherwise, they cannot be a part of this race. Making these investments is costly, for sure. But there is no other way. The companies who insisted on not employing technicians in early 1990s became obliged to do so over time. Use of automation will follow a similar course. The target must be to install fully automated systems, and investment must be made in the required work force for that. Yes, it will bring some costs, but if you do not cover it now, you may face higher costs in the following years. The sooner the better.
At this point, government support is required. As ENOSAD, we submitted a proposal to the government regarding incentives and supports to the companies that employ engineers knowing such advanced technology. The companies need to be provided with support. For our country to be productive, the government must support the producer. Let’s produce advanced technology, and let’s use it for us and sell. Both the machine producers and government must have this mentality. This needs to be together. Otherwise, we cannot achieve.
However, I would like to note a positive development, at this point. Our Ministry of Science, Industry and Technology founded a platform called “Digital Transformation Platform in the Industry”. In this platform chaired by our Ministry of Industry, an executive board of which members include presidents of TOBB, TİM, TÜSİAD, MÜSİAD, YASED and TTGV as well as 6 working groups were created. As ENOSAD, we take part in “Digital Technologies in Industry” and “Advanced Manufacturing Techniques” working groups, and our efforts are going on. It is planned to create Turkey’s Industry 4.0 roadmap, as a result of these works carried out with our Ministry until 2017.