BPM & Operations 4.

0
Literature Review
Process Modeling and Integration

Professor: Ana Luísa Ramos

Table of contents

01 Contextualization 04 Case Study

Industry & Operations 4.0 The Renault Cacia factory case study
BPM & BPMN

05 Conclusion
02 Technologies
Existent technologies for
Operations 4.0 06 Bibliographic references

03 Discussion
Importance of BPMN and its
applications
01
Contextualization
Industry & Operations 4.0
BPM & BPMN
Concepts: Industry 4.0
“Industry 4.0 is characterized by the increasing digitalization and interconnection of products, value chains
and business models and focuses on the intelligent production of products, methods and processes (Smart
Production) transcending connected systems and machines.The difference between this revolution and
previous ones is the fusion and interaction of technologies from various areas of knowledge, such as physical,
digital and biological” [1].

“The term Industry 4.0 derived from the 4th industrial revolution and is a technology-oriented concept mainly
for the manufacturing domain but can be interpreted more generally and applied to any value chain organization”
[2].
Concepts: Industry 4.0
“There is a lack of knowledge sharing, control on data management practices, as well as lack of
understanding of how companies should integrate 4.0 technologies, in order to improve the workflow in
businesses” [5].

“Industry 4.0 is based on the integration of information and communication technologies into the value chain
of innovative products and services through the interconnectivity of people, products and processes” [4].

All in all, it is well agreed that Industry 4.0 is characterized by the integration of technologies in
the way organizations operate.
Concepts: Operations 4.0
Operations management (OM) is the activity of managing processes and associated resources. This is a key
element for companies to gain competitive advantage and improve growth [4].

Industry 4.0 creates new design possibilities for the operations architecture and its associated processes [3].

This results “in a new trend of operations based on the integration of a set of technologies that enable
ecosystems of innovation in smart factories and organizations to interconnect in real-time at a global scale. It is
such global interconnectivity and exchange of data and information that is enabling organizations to adapt or
create new business models and concepts within their area of operation to become more competitive” [4].
Challenges of Operations 4.0
“The digital transformation of business positively contributes to the creation of new opportunities and challenges
for Operations Management“ [4].

1. Extracting knowledge from data

2. Balancing explicit and tacit knowledge
3. Impact on operations strategy definition
4. Flexibility in strategic objectives
5. Suitability of current operations management models

“Overall, these challenges highlight the need for organizations to effectively utilize data, balance different
types of knowledge, adapt to market changes, and reassess existing operations management models in the
context of Industry 4.0” [4].
Concepts: BPM
“Business Process Management (BPM) is valued to gain and sustain competitive advantage, since this
methodology allows companies a faster organizational adaptation to the continuously changing requirements
of the market and its customers, enabling development and continuous improvement of corporate strategies”
[5] [6].

“Includes activities such as “identification, definition, modelling, implementation, execution, monitoring,

control and improvement of processes” [5].

“It promotes cross-functional processes synchronization and facilitates companies to

focus on what is believed value from the customer’s perspective” [5].
Concepts: BPMN
Business Process Model and Notation (BPMN) can promote the description of diagrams that illustrate the
aspects to be improved in processes, as long as coherence is guaranteed between what is executed and what is
modelled, so as not to misrepresent reality [6] .It offers the advantages of a graphical language, simplicity,
standardization and provision for execution processes [5].

BPMN emerged from the growing need of organisations to describe and represent their processes graphically
.This is, therefore, a tool considered crucial in process modelling [6].

BPMN is a tool that establishes a link between processes and systems, in order to understand where and how
processes can be automated [6].

Conceptual models have become an important tool in the field of Business Information Systems Engineering for
documenting [10].
02
Technologies
Existent technologies for Operations 4.0
Technologies

● Additive Manufacturing and 3D printing

● IoT
● Blockchain
● Advanced Robotics
● Artificial Intelligence
● Augmented Reality
● Simulation and digital twins
 Additive Manufacturing & 3D Printing
“A revolutionary technology with enormous consequences for operations management. Why? Let us consider
the operational priorities of quality, flexibility, speed and cost.”[3].

It is a process that takes a digital 3D representation and produces the associated physical object layer by very thin
layer, joining the layers as it goes along [3].

“With prototyping and 3D printing, additive manufacturing proves the concepts embodied in design, and allows
to obtain small samples without wasting material, which concludes in savings” [7].

Challenges:
● “Strength, size, materials, product uniformity, and many other characteristics matter”[3].
● “ cycle time is typically slower than traditional manufacturing methods” [3].
● “Although the upfront cost of production is low, the per part variable cost of AM production is often high
because of high input material costs” [3].
IoT: Internet of Things
“IoT is the backbone of Industry 4.0 [8]. It includes the use of intelligent sensors, middleware, location detection
technologies, IoT applications, wireless networks, radio frequency identifier (RFID), etc” [9].

“It creates information without human observation, in all manner of circumstances that were previously
invisible” [3].

A “vast array of interconnected sensors on machines, people, and products coupled with intelligent controllers,
can take actions based on real-time sensor readings”.

Allows:
● Increased processing speed
● Advancements in KPIs measurement Cost Reduction
● Communications between technologies [3].
 IoT: Internet of Things
The real-time execution, continuous improvement, and upfront design of the operating system are equally
important, and the completeness, quality, and timeliness of information envisioned by the IoT have the potential
to dramatically impact these aspects [3].

“Majority of this impact attributed to operations applications in the areas of inventory, maintenance, worker
productivity, and optimization opportunities” [3].

“General Motors, for example, uses sensors to monitor humidity to optimize painting; if conditions are
unfavorable, the work piece is routed to another part of the plant” [3].
Advanced Robotics
Recent advances in sensor technology and artificial intelligence are enabling a new generation of robotic
technologies that can be deployed alongside human workers [3].
“Robots increases the level of efficiency of the production’s lines and to some extent optimize the system” [7].

Collaborative robots, often referred to as “cobots,” are being rolled out in real production
Settings [3].

The use of robots is in sustained growth, and is not only in production lines, but is also encompassing other
important areas, such as administration [7].

BMW has robots working alongside human workers on its assembly line to automate a manual task that could
cause repetitive strain injury [3].
Advanced Robotics
Drones are another robotic technology that is fast becoming omnipresent. They can be used to survey remote
locations, deliver small items (such as pharmaceuticals), monitor assets, and spray crops. Larger drones that
carry passengers also seem to be on the horizon [3].

Drones are being used for lights-out inventory counting and inspection of oil pipelines to name just two
common operational tasks [3].

Amazon is using unmanned vehicles (i.e., drones) for product deliveries [8].
Artificial Intelligence
AI has meant the mimicking of human intelligence using computers, but recently, the term has begun to
encompass “analytics” and “big data” also. AI introduces an interaction between humans and technology [3].

AI that recognizes images or objects can augment workers’ categorization skills [3]. AI helps manufacturers to
detect quality problems earlier and respond in a quicker manner [8].

AI can help enhance decision making in highly complex environments. By using big data, AI can improve
logistics systems by cutting costs [8].

AI is also proposed to be used together with robotics to create smart manufacturing systems in an IoT-based
environment [8].

Human workers have traditionally been more flexible but slower than robots, but with advanced robotics and
smart AI, that trade-off seems to be changing [3].
Artificial Intelligence
AI industrial applications as being descriptive, predictive, or prescriptive [3].

Predictive AI has become a key focus of durable asset manufacturers, such as GE and Siemens, because
condition based maintenance is dependent on accurate estimates of future failure times. This requires sensors
that deliver continuous data to a computer but also, advanced algorithms that predict remaining life based on
current and past sensor readings [3].

Prescriptive AI, whereby operational actions are generated by software, is not especially new; manufacturing and
supply chain decision support systems (DSSs) have existed for decades. What is new is the increasing adoption
of machine learning techniques to generate these prescriptions [3].

Walmart has applied AI for demand forecasting and consumer behavior analysis (Silverstein 2020) [8].
03
Discussion
Importance of BPMN and its applications
Discussion
Industry 4.0 requires for Production Systems to have dedicated functionalities to manage and control all
manufacturing-related processes and resources. The template for each functionality in the new production
paradigm needs to be pre-defined to assure a standardized semantic. This shows to be key for the effective
Operations Management of Smart Factories to take place in a new digitized global production environment [4].
BPMN is a tool that establishes a link between processes and systems, in order to understand where and how
processes can be automated [6].

To digitize a process there are the following steps:

1) Approach of analysis and understanding of what needs to be digitized;
2) Use tools such as BPMN, to model processes graphically. BPMN could be used to map and document
the implementation procedures, so that they can be, later, digitized [6].

This mapping will help as it facilitates process analysis, presenting itself as a useful way of understanding
problems and flaws in processes in order to find opportunities for improvement [6].
Challenges
However, there are challenges in designing business processes in digital ecosystems:

● Lack of process mapping and standardization: Technologies associated with digitization are often
included in real processes without being mapped into models or standardized.
● Pace of work and lack of specialized BPM teams: This can lead to innovation without ensuring
standardization of the current state or technological changes being implemented.
● Complexity of digital ecosystems: The complexity of integrating various technologies and equipment can
be challenging. Ensuring interoperability between artificial systems, both physical and digital, requires
careful consideration and planning.
● Knowledge retention and staff turnover: Without proper documentation and standardization, valuable
knowledge can be lost, leading to inefficiencies and increased costs.
● Time and cost implications: Without proper process mapping and standardization, activities may not be
carried out at the right time or in the correct order, resulting in delays and increased costs for the
organization [14].
BPMN Approaches
Business Process Modeling and Notation (BPMN) lacks the semantics to describe the dependencies of the global control
flow of the message exchange [15].
More complex business processes in Industry 4.0 are mobilizing academia to propose process modeling approaches [15].
A new extension (for Cloud App) is presented here. This BPMN-based language is called Industry 4.0 Process Modeling
Language (I4PML) and shows aspects like IoT device, Sensing Task and Data Storage as stereotypes applied to BPMN
elements [15].
BPMN Approaches
Industry 4.0 Process Modeling Method (I4PMM) makes it possible to consider Industry 4.0 aspects like IoT devices on a
non-technological level for business process modeling introducing a modeling notation based on BPMN2 [15]. One of
the advantages of a semi-formal process I4PML model is:

Model validation and simulation: models can be easier validated and simulated than pure drawings. I4PML as an UML
profile has a formal definition and can be integrated in existing validation and simulation tools [15].
BPMN Approaches
A new valid BPMN extension, called “BPMN4SBP”, supports the visualization of sensitive business processes
for knowledge management [10].

The modelling of SBPs, presents special requirements dictated by several factors:

● The highly dynamic complexity and flexibility of the processes;
● The high number of critical activities requiring intensive acquisition, sharing and storage [12].

Extension mechanism to support the multi-dimensional modeling of SBPs and thus developing expressive,
complete, unambiguous and comprehensible models [10].
BPMN Approaches
CF4BPMN, a BPMN language extension to allow modeling and execution of controlled flexibility in business
processes. Using this extension, process designers can express how a certain process element can or cannot be
changed in execution time, taking into account their experience or other organizational restriction [11].

It allows process designers to express, within a process model, how it is advised for a process participant to
change a certain process element (including tasks, events, gateways, data objects and swimlanes) [11].
BPMN for Organizational Knowledge
The Business Process Model and Notation (BPMN 2.0) is applied in this paper to promote the integration
between organizational knowledge and business process management [9].

Expert operators acquire valuable knowledge about the manufacturing processes and the transference of this
knowledge to new operators is a difficulty process in companies […] endangering the future of organizations [9].

BPMN is used to take advantage of business process models to represent the knowledge associated with the tasks
of operators on the shop floor [9].

“…creating a knowledge repository…”

04
Case Study
“The Role of Industry 4.0 and BPMN in the Arise of Condition-Based and
Predictive Maintenance: A Case Study in the Automotive Industry”
Renault Cacia Case Study
Renault's goal is to improve productivity and reduce costs. To achieve this, it cannot afford any shortcomings in
product quality or delivery times. In this context, equipment maintenance is playing an increasingly important
role. This case study investigates equipment maintenance projects [16].

The company used the concepts of corrective and preventive maintenance. Given the excessive number of
periodic inspections, emergency stoppages and equipment shutdowns, which compromised performance, Renault
decided, with the help of I4.0 technologies, to introduce the concepts of Prognostic Health Management (PHD)
and Condition-Based Maintenance (CBM) in the facilities [16].

CBM → uses real-time data and condition monitoring techniques to determine the health and performance of assets, scheduling
maintenance only when necessary [16].

PHM → builds on this idea, with functions including fault detection, diagnosis, prognosis and health monitoring, among others [16].
Renault Cacia Case Study
Renault Cacia Case Study
The practices of continuously checking
Players involved are different
production equipment involve long hours of
[16].
work (NVA) [16].

Most of these actions

are unnecessary

In preventive maintenance industrial operators and engineers play a role in

collecting and analyzing data on site (and the consequent shutdown of
equipment).
In predictive and conditional maintenance the process is automated
through the action of a monitoring system and an information system
called "Smart Observer". These changes have led to the automation of
the data collection process [16].
Achievements
● Better anticipate machine breakdowns before they occur, and also schedule the replacement of
components most conveniently.

● Minimize periodic inspections, emergency stoppages and shutdowns.

○ Increasing productivity.

● With the monitoring systems and Smart Observer it was possible to automate and digitize maintenance
activities.
○ Greater speed and operational efficiency.

● Promptly detect faults, and identifying equipment anomalies early on.

○ Financial and operational benefits.

Much of the periodic inspections characteristic of preventive practices have been eliminated. Maintenance is
now carried out only when a particular component reaches a state that will lead to its failure, maximizing the life
cycle of machine components [16].
 Renault Cacia Case Study
BPMN allowed :
1. Better visual understanding of the process by illustrating the links between the different activities;
2. Create a standard operating procedure for the activities inherent in each maintenance process;
3. Promoting better communication of the maintenance process so that everyone involved could get to
know the process and share knowledge;
4. Integrate all employees without the need for a large number of meetings and training sessions;
5. To help perform experiments that cannot be carried out in real-time (through simulations and long-term
analysis);
6. Compare preventive and conditioned/predictive maintenance (CBM/PhM) (identify differences);
7. Identify unnecessary actions;
8. Assist in decision-making [16].
Case Study: Future Considerations
By applying AI technologies in industry, it is possible for machines to learn from the data collected and predict
what will happen, instead of having actions completely programmed and controlled by humans [16].

Another alternative could be the inclusion of a hybrid system, in which AI-based machines perform
analytical-cognitive tasks based on the collection of a large volume of data. While industrial engineers can be
responsible for the decision-making process in the first phase, machines can develop the ability to learn and act
in the following phases [16].
05
Conclusion
Conclusion
In conclusion, BPMN plays a crucial role in mapping and documenting implementation procedures, facilitating
their future digitization.This mapping process is not only essential for process analysis but also for pinpointing
problems and inefficiencies within operations, offering valuable opportunities for improvement.

As shown in the study case , BPMN, can be used to decision-making, identify unnecessary actions, conduct
real-time experiments, and comparing diverse strategies—functions that are highly relevant in the context of
Operations 4.0 implementations.

Thus, BPMN serves as a bridge between process optimization and the transformative potential of Operations
4.0 in modern industries.

Besides that is important to reinforce the key role of Industry 4.0 and disruptive innovations in order to propose
advanced process modeling approaches.
06
Bibliographic References
Bibliographic References
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https://doi.org/10.1287/msom.2019.0796

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[7] Saucedo-Martínez, J. A., Pérez-Lara, M., Marmolejo-Saucedo, J. A., Salais-Fierro, T. E., & Vasant, P. (2018). Industry 4.0 framework for management and operations: A review.

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[15] Ribeiro, V. (2021). A BPMN Extension to Model Inter-Organizational Processes in Industry 4.0.

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Thank you!
Bruno Oliveira nº 98733
Gabriela Gomes nº 98694
Gabi Domingos nº 98922
Maria Pinho nº 98076
Maria Castro nº 100088