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The Enlightenment of the U.S. and German "Industry 4.0" Strategic Experience for China

2015-05-11Views:1362

The concept of "Industry 4.0" was first proposed by Germany, and once it was put forward it spread rapidly to several major industrial countries. Globally, "Industry 4.0" is characterized by intelligent manufacturing that integrates the industrial manufacturing sector with network information technology, and it has gradually been elevated to a national industrial strategy. It integrates information technology into the industrial field in order to raise industrial standards and production efficiency. As industrial reform in various countries gradually deepens, "Industry 4.0" is changing the layout of the world's industrial sector. CPS (Cyber-Physical System), that is, the cyber-physical fusion system, is the core technology adopted by the "Industry 4.0" strategy. Through the CPS system, real-time human-machine interaction can be achieved, thereby establishing a highly flexible intelligent manufacturing model that is both digital and personalized. Germany calls it "Industry 4.0," while the United States defines it as the Industrial Internet. At present, China has only just started on the road to "Industry 4.0," and the country is facing the transformation and upgrading of its manufacturing sector. If China is to achieve the leap from a major manufacturing country to a strong manufacturing country, it must seize the opportunities of this industrial revolution. At the same time, only by studying the latest trends in manufacturing development in the world's major countries and analyzing the current situation and difficulties of China's manufacturing development can we correctly derive the strategies and measures China should adopt.

I. Germany: The Pioneer of the "Industry 4.0" Era


(1) Germany Was the First to Launch the "Industry


4.0" Strategy. As early as the 2011 Hannover Messe in Germany, the concept of "Industry 4.0" was first proposed. Hailed as "the Fourth Industrial Revolution," it combines new information network technologies with factory manufacturing to raise the level of manufacturing, and is a combination of "smart factory" and "smart production." Among them, Germany's Siemens AG is an active practitioner and promoter of the "Industry 4.0" concept. In November 2011, the German government issued the "High-Tech Strategy 2020," which included the "Industry 4.0" strategy, and it has become a national strategy of Germany. In January 2012, the "Industry 4.0" Working Group led by relevant industry associations was formally established, comprising experts from the government, enterprises and industry associations. In April 2013, the Working Group released the "Recommendations for Implementing the Strategic Initiative INDUSTRIE 4.0" to the German government. Subsequently, the German Mechanical Engineering Industry Association (VDMA) established the "Industry 4.0 Platform" and made research and innovation, security, and norms and standards its three major work themes. In December 2013, Germany released the "Industry 4.0" standardization roadmap, which quickly set off a global wave of "Industry 4.0."

(2) Collaborative Cooperation Among Government, Industry, Academia, Research and Users, Elevated to a National Strategy

German industry and academia believe that in the "Fourth Industrial Revolution" of the coming years, intelligent manufacturing based on the CPS system will occupy a dominant position. In academia, Germany has many basic research institutions, such as the Leibniz Association, various universities and the Helmholtz Association, which support technological innovation in "Industry 4.0." These research results can provide both the theoretical basis for technological innovation and policy guidance for the government; in industry, Germany's Siemens AG is an active practitioner and promoter of "Industry 4.0," and other companies such as SAP have also quickly followed suit. The 2013 "Industry 4.0 Platform" was also established by the German Mechanical Engineering Industry Association and other relevant associations; on the government side, in 2013 the German Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Education and Research jointly incorporated "Industry 4.0" into the ten future projects of the "High-Tech Strategy 2020," funded "Industry 4.0" research projects, and, driven by German industry and academia, it has been elevated to a national-level strategy. In 2013 these two ministries planned to invest 200 million euros to support research and development of "Industry 4.0" technologies. In March 2015, the German Federal Ministry of Education and Research and the German Federal Ministry for Economic Affairs and Energy took over the "Industry 4.0 Platform" established by industry associations and upgraded and transformed the platform, with its working group composed of representatives from the government, industry, research and academia.

(3) The Characteristics of Germany's "Industry 4.0"

"Smart factory" and "smart manufacturing" are the two major characteristic themes of Germany's "Industry 4.0." The realization of both is centered on the CPS system. Germany's "Industry 4.0" is the horizontal integration among factories, products and production equipment, treating the entire production process as an "ecosystem" to enhance the intelligence and efficiency of the production process. Germany's "Industry 4.0" has five important features: First, it emphasizes strategy. In today's highly competitive world, Germany is an inclusive and open country. It is not difficult to see from the "Industry 4.0" strategic plan that Germany has formulated complete market and supplier strategies and emphasizes innovative business models; second, it attaches importance to foundational strategy. From Germany's development history and the advancement of "Industry 4.0," it can be seen that Germany has always attached great importance to development strategic planning. Concrete development roadmaps and strategies enable German manufacturing to maintain a leading advantage and ensure sustainable development; third, it emphasizes foresight. The country implements the long-term "Industry 4.0" strategy in stages, conducting multi-perspective and multi-level dissection and forward-looking analysis of smart manufacturing and smart factories, providing a realistic and theoretical basis for choosing strategic priorities. Furthermore, the German government and enterprises attach great importance to standardization, creating the prerequisites and advantages for future international competition. Fourth, the focus is on innovation. Through the CPS system, Germany connects all factors in the industrial field, which demonstrates the depth of innovation. Germany's "Industry 4.0" applies innovative technologies and concepts to smart manufacturing and smart factories; fifth, it emphasizes market orientation. In building a smart society and market, Germany is led by the CPS system and technological products, producing smart products for consumers at all levels in different regions and fields. This new business model is bound to have broad market prospects.

II. The United States: Leading Smart Manufacturing with "Soft" Advantages

(1) The United States Is a Strong Promoter of "Industry 4.0"

Americans call "Industry 4.0" the "Industrial Internet," which was proposed by GE (General Electric) in 2012. In June 2011, the U.S. government launched the "Advanced Manufacturing Partnership," and in February 2012 it launched the "National Strategic Plan for Advanced Manufacturing," implementing "re-industrialization." The "Industrial Internet" proposed by the United States aims to connect people, data and smart devices, and to drive the intelligent transformation of manufacturing through data exchange. Compared with Germany, the "New Industrial Strategy" actively promoted by the United States places more emphasis on "soft" aspects, such as big data, software and the Internet, for the re-industrialization of traditional industry. In the United States, "Industry 4.0" means connecting virtual networks with the physical world and reshaping manufacturing through big data analysis and the like to form a more efficient production system. The scope of the U.S. Industrial Internet is broader; it attempts to connect people, data and machines to form an open and globalized industrial network. At present, more than 80 ICT and Internet giants in the United States, such as GE, IBM and Cisco, have established the IIC (Industrial Internet Consortium), hoping to break down technical barriers and achieve manufacturing innovation through big data. Relying on its leading advantage in Industry 3.0 and the influence of advanced Internet and ICT giants, the United States is driving the development of global "Industry 4.0."

(2) Comprehensive Yet Aggressive National Policies


In formulating its "Industrial Internet" strategy, the U.S. government hopes to achieve re-industrialization through entirely new modes of production. As early as 2012, the United States elevated the "Industrial Internet" to a national strategy. With the introduction of a series of bills, U.S. smart manufacturing is realizing a revolution in the industrial and information technology fields. Early planning proposed: in 2009, "revitalizing manufacturing" was designated by President Obama as a national development strategy, and the "Framework for Revitalizing American Manufacturing" was issued to guide the development of manufacturing. In 2011, in order to maintain its leading position in manufacturing, the Obama administration launched the "Advanced Manufacturing Partnership." Innovative strategies: in 2012, the Obama administration launched the "National Network for Manufacturing Innovation," the "National Additive Manufacturing Innovation Institute" and the "National Strategic Plan for Advanced Manufacturing," and established dozens of research centers aimed at strengthening the organic integration of industry, academia and research. In early 2013, the U.S. President's Executive Office and other agencies spent 1 billion U.S. dollars to establish the National Network for Manufacturing Innovation and issued the "Preliminary Design of the National Network for Manufacturing Innovation." In mid-2013, the Obama administration invested 200 million U.S. dollars to build three innovation centers, including the "Digital Manufacturing and Design Innovation Institute." Subsequently, in 2015, the "Institute for Advanced Composites Manufacturing Innovation" was established. From the above, it can be seen that under the impetus of the comprehensive yet aggressive policies of the U.S. government, the U.S. "Industrial Internet" will very likely enable the United States to once again occupy the commanding heights in the field of smart manufacturing.
(3) Enterprise Alliances Overcome Technical Difficulties

In the process of implementing the "Industrial Internet" in the United States, the Industrial Internet Consortium plays a crucial role. Its purpose is to participate in the formulation of smart manufacturing standards, provide an open platform among members, coordinate new technology trials among members, share trial results, break down technical barriers and achieve data sharing. To date, the consortium has 251 members, including not only U.S. domestic enterprises but also enterprises from the Asia-Pacific region and some German enterprises. The consortium has established cooperative relations with more than 70 organizations around the world, hoping to influence the formulation of international smart manufacturing standardization work through the development of common standards. The consortium provides an important platform for the transformation of basic research into practical application. By sharing experimental data among members, it will certainly improve the smart manufacturing level and production efficiency of each member, thereby promoting the comprehensive upgrading of the entire industrial chain.

III. The Enlightenment of the Experience of the "Industry 4.0" Strategies of the United States and Germany for China

In 2015, China launched "Made in China 2025," which is hailed as the Chinese version of the "Industry 4.0" plan. Subsequently, various industries in China, especially industrial and Internet enterprises, have thrown themselves into China's smart manufacturing. At present, China still has many shortcomings and challenges in developing "Industry 4.0": Germany is now moving from 3.0 to 4.0, advancing from automation to network informatization, while China's manufacturing is still between Industry 2.0 and 3.0.

First, global manufacturing competition is intensifying. With the start of a new round of industrial revolution, countries around the world are actively raising their smart manufacturing levels in the hope of gaining an advantage in future competition.Through the implementation of "Industry 4.0" plans, developed countries such as the US and Germany will certainly strengthen their advantages in manufacturing, network and information industries;

Second, there is a risk of possibly losing the advantage in mid- and low-end manufacturing. In the process of reindustrialization, some developing countries in Asia, owing to lower labor costs, will certainly change the layout of mid- and low-end manufacturing, causing China to lose its dominant position in the mid- and low-end market;

Third, judging from China's domestic situation, enterprises urgently need transformation. Chinese enterprises are highly dependent on foreign countries, with most core components and technologies relying on imports. They do not attach enough importance to standardization, lack standardization, and even more lack international thinking. This is a weak point for China; the manufacturing level is low, lacking big brand effects and well-known large enterprises. The management level is not high, and the quality of manufactured products lacks stability;

Fourth, the "Industry 4.0" era faces a spectrum crisis. In the future, with the development of the "Industry 4.0" strategy, the Internet will gradually integrate with manufacturing, which will certainly promote the rapid development of the Internet of Vehicles and the Internet of Things. Intelligent production led by Internet + Industry requires a large amount of spectrum resources. In addition, in the future "Industry 4.0" process, a large number of new technologies and new devices will certainly emerge, such as new RFID and sensing technologies, as well as the massive application terminals brought by big data. The increasingly prominent shortage of spectrum resources will certainly make China's "Industry 4.0" development stretched to the limit. At the same time, accompanying the spectrum shortage problem is the increasing complexity of China's electromagnetic environment and the increasingly serious problem of electromagnetic interference. It is predicted that by 2020, due to the surge in wireless devices and applications, the spectrum gap of the future Internet of Things will reach 1248MHz~1584MHz. In response to the above problems, drawing on the US and German strategies for developing "Industry 4.0" yields the following enlightenment:


 
(1) On the basis of strengthening external exchanges

First, it is necessary to strengthen international exchanges and to research and establish China's basic "Industry 4.0" framework as soon as possible. The framework includes top-level design, production systems, implementation steps, hardware equipment, institutional safeguards and software systems, among others. China has just launched "Made in China 2015"; in the early stage, it should strengthen exchanges with developed countries such as the US and Germany on "Industry 4.0" and draw on the advanced experience they have gained in the "reindustrialization" process. Second, with regard to neighboring developing countries, China should proactively strengthen cooperation with them in mid- and low-end manufacturing industry, jointly discuss the formulation of technical standards, and find an "Industry 4.0" development blueprint suited to China's national conditions. Third, since China has no experience in developing "Industry 4.0", pilot projects can be carried out in relatively industrially developed regions such as the southeast coast and the Beijing-Tianjin-Tanggu area, conducting pilots at different levels and in different regions in the intelligent directions of production processes, products, industrial Internet, management and services, with the aim of breaking the boundaries of individual pilots. As the integration of informatization and industrialization and the "Internet +" strategy gradually advance, China will certainly gain advanced management and production experience in the "Industry 4.0" development process and demonstrate "Made in China" in the world's competitive landscape.

(2) Consolidating the foundation of industrial development

The US and Germany accumulated development through "Industry 2.0" and "Industry 3.0", so when implementing the "Industry 4.0" strategy they could ride the momentum, whereas China's extensive production mode leaves most Chinese enterprises, especially in the central and western regions, still at the "Industry 2.0" stage. Enterprises in the southeast coastal region mostly focus on CNC machining, which still falls far short of the developed countries' "Industry 3.0" standards. Facing the situation in which China's manufacturing industry is "large but not strong", it is suggested that China complete the "Industry 2.0" and "Industry 3.0" paths step by step, in stages and by region; at the same time, vigorously promote the "Internet +" strategy nationwide, using Internet + Industry to drive the transformation and upgrading of China's economy; gradually change the production modes of traditional industries and cultivate growth points of the industrial economy with innovative thinking; rely on the Internet, the Internet of Things and big data to build an intelligent industrial system; accelerate the integration of informatization and industrialization and lay a solid foundation for China's informatization; vigorously develop high-end manufacturing, increase investment, and provide policy and funding support to capable high-end manufacturing enterprises.

(3) Promoting the development of the intelligent equipment industry through major special projects

Intelligent manufacturing has become a new trend in global manufacturing development, and intelligent equipment is the physical carrier of intelligent manufacturing. China urgently needs to launch major special projects to achieve intelligentization of industry and society. Although China has already achieved industrialization results in the field of intelligent machining, key links such as core technologies have always been weak points for China. It is suggested that demonstration projects for intelligent manufacturing be carried out in regions with the necessary conditions and that special projects for intelligent manufacturing be launched. First, carry out major special projects such as industrial robots, digital factory application demonstrations, and manufacturing big data applications; second, continue to carry out national science and technology major projects, such as basic manufacturing equipment and high-grade CNC machine tools. Third, establish national-level manufacturing innovation centers and attach importance to the integration of industry, academia and research.

(4) Taking multiple measures to address spectrum-use concerns

In the management of radio spectrum resources, innovate the working methods and approaches of radio management. In accordance with the requirements of transforming government functions, strengthening interim and post-event supervision, and giving play to the decisive role of the market in resource allocation, it is imperative to change the single administrative-assignment frequency allocation model and establish a market-oriented multiple frequency allocation model. Research the role of radio spectrum in the development of intelligent manufacturing and comprehensively explain the economic value of radio spectrum resources; explore the feasibility of radio spectrum resource allocation methods based on industry application fields; carry out forward-looking research and do a good job in industrial frequency-use planning. Carry out forecasts of frequency-use demand for "Industry 4.0", focus on frequency planning and allocation in fields such as "Broadband China", the Internet of Things, next-generation mobile communications and "Internet +", objectively conduct congestion forecasts, strengthen the re-sorting and adjustment of existing frequencies, and promote efficient and intensive use of frequency resources; strengthen research and development of frequency-use technologies, improve spectrum resource utilization, strengthen exchanges and cooperation with developed countries in spectrum technology application and spectrum sharing technology, gradually establish a technology and service innovation system with enterprises as the main body and integrating industry, academia, research and application, develop products with China's independent intellectual property rights applicable to the broadband wireless communication field, and achieve industrialization as soon as possible; at the level of laws and regulations, strengthen frequency-use supervision and spectrum sharing, focus on solving problems that may arise in the "Industry 4.0" development process, such as new forms and new types of radio interference, illegal acts of malicious interference with lawful frequency use, chaotic frequency use, lack of unified supervision, and great difficulty in spectrum sharing coordination among multiple departments, and improve China's spectrum management policies and rules and regulations to create a good electromagnetic environment for the "Industry 4.0" era.

(5) Putting standards first

Standards have become the commanding heights of competition in high-tech industries. The essence of the "Fourth Industrial Revolution" is the contest over industrial standards, and the most obvious feature of the "Industry 4.0" strategy is putting standards first. The launch of Germany's "Industry 4.0" standardization roadmap and the US "Industrial Internet" standard construction both put standardization in first place, sounding a warning bell for China's "Made in China 2025" plan: putting standards first comes first. First, the Chinese government should integrate existing standardization resources as soon as possible, formulate an intelligent manufacturing standardization system suited to China's national conditions, and guide the formulation of domestic industry standards; second, it is suggested that a special working group for formulating "Industry 4.0" standards be established to research advanced countries' industrial standards as soon as possible and keep pace with the international formulation of "Industry 4.0" standards; third, attach importance to the "Industry 4.0" strategic cooperative relationship with the US and Germany. Strengthen learning and communication, and through international cooperation lead the internationalization of China's standardization work and standards in line with international norms, ensuring that China has enough say in future industrial competition.