A Case Study Report

On

Labour and Human resource

issues in Industry 4.0
Course Instructor
Submitted by
RAHUL DUNGAVATH N MR. PRASHANTH N
(USN:1NT17ME105) Assistant Professor
VI Semester 'C' Section
Department of Mechanical Engineering Department of Mechanical Engineering
NMIT, Bengaluru.
NMIT, Bengaluru.
 INDEX
 Introduction
 New Revolution: Industry 4.0
 Distinctive Features of Industry 4.0
 Concepts Related to Industry 4.0
1. 3D Printers
2. Internet of Objects

3. SMART FACTORY

4. Cloud Computing Systems

5. Smart Robots
6. Cyber-Physical Systems
 Compliance of Companies to Industry 4.0
 The Impact of Industry 4.0 and Human Resources Management
 Strategic Perspective
 Employment
 Performance Management
 Reaching the Talent
 Training
 Data-Based Management
 Protection of Information
 Working Environments
 Social Media
 Business and Life Balance
 Status of Businesses Prepared for Industry 4.0
 Results
 Conclusion and Evaluation
Introduction
The greatest power of European economy is based on industry. Seventeen per-cent of the
European Union GNP is of industrial origin. This industry power provides 32 million jobs.
Despite this, in recent years industrialized European countries have been having difficulty
competing with developing countries.
The most important factor behind the industry’s 4th move is the incentive to stay behind.
Industry 4.0 nomenclature belongs to Germans (ESO 2015). However, other industrial
countries in the world are aware of this new wave in the industry, and every country
develops a policy on its own within this area. China called its own industrial development
plan “Made in China 2015” , which is similar to Industry 4.0 in 2015.With this change,
intelligent robots will be used more effectively in all business processes.
The human resources departments have to keep up with this transformation by renewing
themselves. After all these changes, not only the enterprises but also the state policies
should be updated in line with the formation of the Industry 4.0. It will be inevitable to lag
behind the global economy by losing the competitive power for companies and states that
cannot make this update.
New Revolution: Industry 4.0

The concept of the Industry 4.0 can be described as an increase in the amount of digitization
throughout the entire value chain, and a possible structuring of data transfer between
people, objects, and systems in real time. The Fourth Industrial Period emerged when the
machines used in production started to manage them-selves and production processes
without the need for human power. This structure, which is referred to by the concept of
“the Internet of objects”, extends to the self-management of the manufacturing factory.
Bosch took part in the Industry 4.0 working group and played a leading role (Siemens
2016).Industry 4.0, which was adopted at the beginning of 2011, has become a market of
billions of euros from a technical term within a period of 6 years. By 2020, it is expected that
only 140 billion Euros will be invested in Industry 4.0 within Europe.
This platform is primarily aimed at supporting the development of new technologies, defining
the basic standards for the Industry 4.0 vision, identifying new business models, and
conducting community awareness activities Over time, the concept of Industry 4.0 has
become the focus of all countries that have developed beyond Germany to design a new
industrial system.
Distinctive Features of Industry 4.0

 The distinguishing innovations this new era brings are as follows:

 • Global interaction of storage systems and resources with machines.
 • The development of unique intelligent products with location knowledge.
 • The smart factories, adapting to product specifications.
 • Realization of new business models.
 • New social infrastructure in the workplace for the employees, business structure being
sensitive to individual differences.
 • Better work/life balance.
 • Responding to individual consumer demands.
 • Intelligent software developed for immediate response to engineering and problems.
Concepts Related to Industry 4.0
 3D Printers
The 3D printer is a machine that transforms digital three-dimensional computer data into real
objects that can be handled. All mechanical parts except engine and electronic parts are
printed by 3D printers .3D printer technology addresses a wide area.
The areas of usage of this technology have a range from information technologies, genetics,
medicine, to industry, food, and jewelry. With 3D printers, a lot of things are produced,
including human tissues and musical instruments.
 Internet of Objects
Objects must communicate with each other through the use of the Internet as an
intermediary, and their work is their own management. It is really important in terms of
facilitating our daily life. Smart home technologies are examples of this. This structure, also
called “Internet of Industrial Objects”, makes smart factories even smarter. Thus, products
with many different and complex structures can be produced in shorter time and in quality
Virtual reality,the virtual reality is the main feature of Industry 4.0.
 SMART FACTORY :
Digitalization has confronted humanity with the concept of intelligent life. In the past, the
everyday work carried out by muscular power can now be realized by machines
The application of cyber-physical systems in production systems is called Smart Factory. Fifty
percent of German companies are planning industrial networks, while 20 % have already
transitioned to the intelligent factory of Industry 4.0 (PWC 2016).Features of smart factories
include:
• Being successful in managing complex production processes smoothly and quickly.
• Its products being smooth and long-lasting.
• Inside them, machines, people, and production resources are in interaction.
 Cyber-Physical Systems
The cyber world is based on the physical side of the world. The boundaries of the physical world
expand with the cyber world. The cyber-physical systems that the cyber and physical world come
together are made up of these two elements. These two worlds communicate with each other
with a designated internet ad-dress on the Internet. It is called the virtual environment which is
created by the simulations of the objects in the real world.
Cyber-physical systems are intelligent systems in which ever-changing data are simultaneously
linked together in a virtual cloud system. The aim of this system is to realize “intelligent
monitoring” and “intelligent control”. The best example of this is the Smart Factories. For
example, failures occurring at any stage of production can be eliminated immediately and on the
spot, and the system can operate at full capacity and without any problems.
 Simulation
Simulation is defined as the creation of an artificial environment or imitation of the order in a
timely manner for the operation of any process or system in the technical sense. Imitating
processes or systems in the real world very close to reality provides great advantages in many
respects from saving time from human effort to avoiding gains from economic gain After the
steam, electricity, and computing forces entering the factory in the first three industrial
revolutions, the simulation technology is now used in factories and provides significant
benefits.Horizontal and Vertical Integrations.
 Cloud Computing Systems
Along with the advances in information technology, increasing data volumes and increasing use of
the internet have begun to force existing hardware systems and software. With this need, the
concept of cloud computing systems has emerged.
Cloud computing is the general name given to services that provide information sharing between
computing devices. It has been adopted by computer theorists that the future of the Internet
passes through the cloud system. There is a sense that the cloud system will be used instead of
future hard disks The industry benefits from 4.0 cloud computing.
Communication between intelligent devices has also led to a new breakthrough in the industry by
working together with Big Data, the Internet of Objects, and Cloud Computing.
 Compliance of Companies to Industry 4.0
• Production process will be digitized.
• Production processes will manage themselves.
• Products will be able to carry information and provide this information to consumers.
• The Internet of objects will dominate the entire factory, the firm, and the business world.
• Production performance will be higher.
• All data and business principles will be analyzed in digital programs and intelligent systems.
• Resources will increase, costs will decrease Difficulties in adapting to Industry 4.0 will be discussed below.
• Standardization
• Process/work organization
• Eligible products
• New business models
• Security/know-how applications
• Qualified workforce
• Research
• Training/professional development
• Legal infrastructure We can foresee that companies and countries should take the following steps in order to comply with In dustry 4.0.
• Strengthen the technological infrastructure.
• Informatics technologies should create training programs to strengthen innovation and entrepreneurship.
• Identify new business models.
• New technologies should be developed.
• Provide new collaborations appropriate to the digital world.
• Identify the priorities of producers.
• Increase the quality of the changing workforce.
 The Impact of Industry 4.0 and Human Resources Management
In the United Kingdom, in a research study, there are three technological bases (Rhisiart et al.
2014) that have radically influenced the future of the business: artificial intelligence and
robots, shaky developments on the Internet, and time and space constraints for the
acquisition of skills.
At present, at least 65 % of children who go to primary school will work in jobs that do not yet
exist when they have completed school education,” said WEF (2016), the World Economic
Forum’s “Future of Jobs” report. Nine of the 18 factors that are predicted to affect business
structure in the future are the roots of technology: mobile internet and cloud technology, the
increase of computing power, hence the processing capacity of Big Data, new energy
providers and technologies, Internet of objects, mass information exchange via internet,
sharing economy, peer-peer sharing platforms, highly developed robotic and independent
transportation, artificial intelligence and learning of machines, advanced production and 3D
printing systems, advanced materials, biotechnology and genomics.We actually see some of
these effects in our lives. The results of one part will be reflected in your life in the next few
years.
This change will have to keep pace with states, societies, companies, and employees. Those
who cannot catch up with change will face the risk of economic disappearance. This change,
which takes place over states, societies, companies, and employees, will also affect human
resource management in a fundamental way. Industry 4.0 will change all steps from
production to distribution, from distribution to marketing, and will incorporate radical
innovations within the organization.
 Strategic Perspective
In order for human resources to be able to contribute to business results, business units need to be
strategic partners. In order to achieve this, HR specialists who can understand and interpret financial
data, have a good command of the dynamics in the sector in which the company operates and to the
up-to-date developments, and who contribute to important projects carried out in the company and
develop applications and projects parallel to these elements will be needed.
 Employment
According to the researches, employment is aimed to grow by 6 % in the 2020s. This growth will
increase consumption, and the economy will be affected. The presence of equipped elements in the
installation and development of intelligent devices and systems will be crucial. With digital
conversion, all processes and customer expectations will change With the spread of robots,
technological unemployment will arise.
The muscular power in the past will leave its place to the mind. Intelligence will also increase the
level and quality of education. In the long run, highly qualified individuals will be employed. Robots
and people will act together and be managed together in harmony.It will be very difficult to find
these talents. The definition of the workforce will change. Consultants, home office workers,
freelancers, brand awareness professionals, and suppliers will contribute to the activities of periodic
and project-based companies.
These people will never be deprived of their jobs due to their talents. Objective perspective lines will
present different perspectives as an eye from outside with fresh information. This will make the
companies rich.
 Performance Management
Depending on changing corporate structures, new generation performance measurement
tools will emerge in the coming years. The concept of performance consulting will take its
place in business life. From a classical performance perspective that values seniority, it will
shift to a performance management understanding that rewards young and hardworking
employees.
Today, employees want to work with managers who empower and inspire them, to give
feedback to managers, to regularly talk about company goals, and to follow developments in
this area (Alayoğlu 2010). Still, many companies continue to incorporate new performance
measurement methods into their work systems. New network performance measurement
methods are much more active than the old ones.
To build an effective system, it is necessary to build a complex structure with components
such as continuous monitoring, routine checks, performance coaching, staff development,
performance reviews, and returnability infrastructure for leaders. These data must also be
viewed on a digital system. Companies that provide human resources software services will
have to move very fast and keep pace with change.
 Reaching the Talent
Human resources will find it difficult to find human resources with the capabilities required by
digital conversion and Industry 4.0. Human resource management, which focuses on closing open
positions, will leave a proactive approach to talent-oriented, talent-driven proactive approach
Human resources will want to reach out to qualified personnel from all over the world in order to
find and deploy the company’s required skills, and new strategies will be developed in this
direction.
This necessitates finding talented people from developing countries and joining them in the work
force With the digital era, Turkey’s most beloved countries have their own abilities; countries with
employees who think their skills are inadequate are Germany, Japan, USA, Romania, and
Hungary.There will be deficiencies in skills in fields that require technical skills such as information
technology, mathematics, medicine, and engineering. In this case, companies will try to find and
win people with critical skills.
Companies that set up their own talent systems and actively use their processes have a financial
performance that is over 300 % higher than their competitors and twice as much as their labor
force applicants on the market Almost all employees in enterprises will be in the status of
“knowledge workers” who do business with technology help.
It will not be easy to find next-generation digital capabilities such as Data Scientist, Artificial
Intelligence Specialist, Application Developer, Cloud Architect, or Agile Project Specialist. An
important part of these abilities is very far from the concepts such as CV, LinkedIn, and Assessment.
In this case, standard resource hiring and recruitment methods will not work. Companies like
Facebook, Google, Microsoft, and Amazon, which are advantageous in terms of culture and activity,
will gain importance in order to find these profiles and gain them to companies. In today’s business
world, we are experiencing serious problems in terms of the ability of digital talents to come out
and be protected even if they do. The value judgments, habits, and behaviour of companies cause
this.
 Training
Training is one of the most important elements of Industry 4.0. Recruitment of the intelligent
machines and the qualified workforce that can use these machines, training of the expert staff, the
formation of a structure that will perceive the cyber-physical systems, and the updating of the
education system from primary school to the university parallel to these developments gains
importance in time.
 Data-Based Management
The most important decisions taken by institution concern employees. It is necessary to take into
consideration the data and vital information that is vital for the company. HR analytics will be on
the agenda of more and more companies, and governance-based management will become very
important. It will be beneficial to incorporate data that will support personal comments and
decisions in the HR field.
 Protection of Information
Human resources have a detailed database of employees’ personal information. The protection of
these data is very important for both the employees and the company. In the business world, the
protection of confidential information has become a critical process. Risks in human resources are
the protection of the data, wrong recruitment decisions, and loss of ability in a short period of
time. ERP software, preferred by many companies, will leave their place to analytical tools that
enable better measurement and decision-making on human-induced issues that run through the
cloud. Technological systems will be used to evaluate employees. The storage of information on the
cloud and the use of mobile technologies will bring new privacy policies and risks. In addition, the
HR will need to tackle problems with information security and intellectual property rights.
 Working Environments
With Industry 4.0, the Y and Z generations will feel the power. In the offices where these
generations work intensively, common working areas such as corners and cafes that will
support the use of the latest technology and individual work will be preferred. It will
increase the number of companies that use office designs to make office work attractive.
In a social sense, a completely different working routine will emerge. The 9am–5pm shift
is going to be a working concept that is not constrained by space, and time will be very
flexible working away from the understanding of work. Companies that prefer office
design to work with flexible hours will multiply
 Social Media
With social media, everything will go through a more transparent structure. Social media
channels will evolve into a democratic platform where information workers can
participate at all levels, from complaints or pleasures of customers to employees’ side
rights, working hours, or interactions with each other. The democratization of work will
take the institution away from the hierarchy to a more horizontal organization. Employees
can be effective in communicating with each other, producing solutions. This interaction
will make people more proactive in making observations and taking responsibility for their
work. This new order will be organizational and will change job descriptions from the
root.
 Business and Life Balance
Human resources should identify ways to improve the health and interaction of employees as well as work
and life balance. Are your employees healthy? Do they have the habits and knowledge to make them
energetic? Are the managers helping them focus? Do they have the skills to do their jobs? Can they spare
time for their friends and family? Do you have time for the hobbies? They should ask their questions
Without discrimination, whether large or small, human resources departments in all companies need to
incorporate factors such as undertaking the role of “helping people improve their performance”, recreation
rooms, sports programs, and job quality enhancement programs .
 Status of Businesses Prepared for Industry 4.0
This research covers four industrial operations operating in Bursa. Three of the businesses are foreign
capital. Two of the interviewed firms are textiles, both operating in the field of technology. The number of
employees working in the company ranges from 900 to 1500. Negotiations were held in May 2017 with
interviews with managers of the human resources and managers responsible for technology, and
interviews were conducted in the factory. Demographic information on the interviewed enterprises is
given.
 The following four questions were basically directed to business managers:
1. What are the general challenges businesses are facing in the environment that
Industries 4.0 brings?
2. How do you anticipate how these challenges will affect current and future
business and business processes?
3. What are the core competencies that employees must have to full fill their position in the current or
future business?
4. Do you have any initiatives that you have developed as a business in this area?
 Results
In response to the question “What are the general challenges that businesses will face in the
environment created by Industries 4.0?” the work structure will become technologically more
complicated, which will increase the demand for high-qualified staff, but it will be difficult to
find and retain these qualities, whereas some of the low-quality staff will lose their jobs.
The answers to the question “How do you anticipate how these challenges will affect your
current and future jobs and business processes?” emphasized that the role of consulting firms
will become more prominent when it comes to achieving talent.
Management directors seem to have agreed on the need for the public to make significant
innovations in education in the new period.The answers to the question “What are the basic
competencies that employees must have to full fill their current or future business?” show that
the areas of common emphasis are information technology, communication skills, problem
solving, and process skills.
In response to our question, “Do you have any initiatives to develop this field as a business?” it
seems that every business is prepared for this. Programs related to Industry 4.0 are carried out
centrally in foreign capital enterprises. Responsible persons have been identified and appointed
in each business.
 Conclusion and Evaluation
This study focuses on the theoretical background, the field research, and the working environment
that Industry 4.0 will emerge in industrial enterprises and the possible effects of this environment on
the human resources processes.
The aim of this research is to clarify the state of opinion, expectation, and preparedness about how
the Industrial Industry transformation in the industry will affect the processes of human resources.
The information we receive from business managers shows that every business is prepared for the
new business environment that this process will bring, and that they have developed initiatives and
measures. The common opinion of business managers is that some of the low-qualified employees
will lose their jobs, so some people in this group will lose their jobs, while Industry 4.0 will affect
employees based on expected skills and skill profiles, resulting in higher demand for high-qualified
employees.
The most important condition of sustainable competitive power is investing in technology. Staying
behind the global economy will make competition almost impossible. The country, the companies,
the machines, and the employees have to increase their capabilities in line with Industry 4.0.Industry
4.0 will change the daily lifestyles of communities and all the habits of business life.
The research was carried out in the Bursa region and only on four enterprises. It is not possible to
generalize the results obtained in this direction. However, it can be said that three of the interviewed
companies are multinational corporations and the results are considerable in terms of human
resources when considering the number of people they work with. A research that will cover
different geographical regions and larger numbers of businesses will undoubtedly reveal the
expectations in this area more reliably.