Executive Summary
The concept of industry 4.0 is offering a multitude of benefits to the food industry. It is a core concept in the 21st century to know about industrial value creation. The scope is associated with security risks and sustainability solutions, yet the benefits related to the food industry are multiple. Nestle company has similar targets as any other food company has in the context of improving operational capacity and efficiency, quality assurance, and productivity.
This report entails a detailed framework of industry 4.0 and its implementation with a specific context to the food industry, Nestle. The academic research and journal’s information regarding industry 4.0 is presented in this paper to pave the way to discuss Nestle digitalization. The digital solutions in production are carried out in the form of the power of big data, diverse mechanization, and machine learning. This transformation is significant to conduct computerized operations and drive improvement in operational efficiency.
Chapter 1: Introduction
Nestle is the Swiss multinational company of food and beverages. Being the largest food company in the world, it is ranked number 33 in Forbes Global and 64 in Fortune Global 500 in 2017 as a large public company in terms of revenue and others (Ghazalian, 2012).
The company was established in 1905 by a merger of the Anglo-Swiss entity that was formed by George and Charles in 1866. This company grew enormously after World War I and then World War II. There are many corporate acquisitions after that, for instance, in 1950, Crosse and Blackwell, in 1963 Findus and 2007 Gerber (Vilkhu et al., 2008). The company has faced many criticism and boycotts for many products such as formula milk, use of child labor in the production of cocoa and bottled water promotions. Key competitors of Nestle are Danone, Unilever, Hershey and Mondelez International. The consumers of Nestle are everyday households, individuals and retailers. Its market share is 8billion Swiss francs(Rezzonico et al., 2015).
Chapter 2: Literature Review
Industry 4.0 is the Fourth Industrial Revolution. The term industry 4.0 is the smart manufacturing point and refers to the idea that all the manufacturers can connect their operations to plant (Rezzonico et al., 2015). The concept of mass production is linked to the latest technology implementation in bringing smart processes. Due to the use of more connectivity, sensors, analytics, and robotic technology, significant changes are seen in food and Beverage Companies. The investment in technology is carried out to meet customers’ expectations(Putičová, Mezera and Mejstříková, 2012).
Advances in Manufacturing Industry
Industry 4.0 is all about technical advances in the traditional sector. This revolution is about integration and virtualization with the coordination of logistics. The technical processes are significant to tackle any source of error and its elimination. Birkel et al. (2019) discussed the implications of industry 4.0 in food and the transformation of digital integration. The change in the industrial value chain is carried out to bring adaptability, efficiency, and flexibility that help fulfill customer’s needs.
Mauritian concept on Industry 4.0
Mauritius 2020-2024 policy has given attention to industry 4.0, in order to bring an effective platform of latest development(Daureeawoo, 2018). The fourth revolution implementation in Mauritius has a specific emphasis on transformation of small medium enterprises into a modern and developed framework(Maria Ferrari, 2020). The manufacturers face pressure about certain factors such as labeling, microbial impurities, and labeling. The policy in industry 4.0 tends to perform a qualitative leap and brings control of the whole value chain(Scholar, 2019). According to Deloitte University Press, lifecycle manufacturing under new technology is a complete paradigm shift (Putičová, Mezera and Mejstříková, 2012).
Gallmann (2003) mentioned that a crucial shift in industry 4.0 is based on some fundamental principles such as interoperability, real-time analytics, service orientation, virtualization, and scalability. The interoperability is a crucial element under a cyber-physical system, corporation information system, and robots(levels” & Fakun, 2020). Real-time analytics offer assistance to analyze and collect enormous amounts of data that effectively optimize, control, and monitor processes to facilitate key manufacturing processes. The scalability is an elasticity that helps to adapt to the needs of industry and scale the technical capability of the system due to technical requirements (Ghazalian, 2012).
Effectiveness of Food industry due to 4.0
Hoerlsberger (2019) discussed the significance of beverage companies and highlighted the vast distribution networks about automated data collection. The food companies integrate production equipment for a better quality of production and ensure quality. The technology brings a transformational change in the industry regarding manufacturing. The beverage sector has not yet fully exploited the benefits of technology and industry 4.0. Khramtsov (2018) provided the idea about digitalization in industry 4.0 that can revolutionize the future of the food industry.
Figure 1 Industry 4.0
Luque et al. (2017) explored the effects of industry 4.0 on product provenance. The new formulations are used in the reduction of salt, sugar, and levels of fat. The development of the digital twin approach helps manufacturers to focus on a virtual factory where there is an accurate picture of the new formulation of products according to customer demand. Mauritius 2020-2024policy framework has included integrated automation as a digital process required for the integration of elements that offers a complete production process to improve the level of productivity. The fourth revolution in manufacturing holds a central place for innovation and allows the development of dramatic changes.
Martínez-Olvera and Mora-Vargas, (2019) examined the digital innovation in 21st-century consumer products that motivate customers by providing them a point of sale solution. Birkel et al. (2019) worked on the discussion that industry 4.0 is recalling customer’s demand. This advantage allows manufacturers to turn customers into recurring people who save time and money by focusing on technology. Due to RFID technology, the industry gets involved in a quick response because customers acquire information about a product before shipping. Industry 4.0 is a significant solution to all the existing problems of customers because many websites update information and facilitate customers to get the desired increase in their products, in turn, profits (Khramtsov, 2018).
Some Technologies of Industry 4.0
Internet of Things
Industry 4.0 is commonly known as the internet of things due to its integrated technologies. This integration is related to the industrial value creation in the realm of filly intelligent, digitalized, and decentralized networking.
Figure 2 IoT
The way forward provided by industry 4.0 in manufacturing helps customers to get important information about products. The manufacturers, due to the effect of technology, maintain equipment, and determine how its replacement will occur (Martínez-Olvera and Mora-Vargas, 2019).
Cloud Computing
The cloud computing and its application on the industry have given rise to innovation through connecting manufacturers and customers, raising the volatility of the market, and creating a highly dynamic environment(Abdallah, M. 2019).
Figure 3 Cloud Computing
The policymakers in the industry continue focusing on the sustainability of the market by turning current systems in ecological, economic, and social goods. The system is a triple bottom line of sustainability(Elmroth, Leitner, Schulte & Venugopal, 2019).
Artificial Intelligence
It creates value for the industry and develops technical foundations (O’Shea, O’Callaghan, and Tobin, 2019).
Figure 4 AI
The triple bottom line of sustainability provides the idea of corporate philosophy in which profits are maximized, and awareness about social responsibility is taken into account(Haider, S. F., & Khateeb, A. M. 2018).
3D printing
The technology offers three dimensional view of pictures and structures.
Figure 5 3D Printing
The technology is being used in large manufacturing and printing firms to provide accurate picture and handling of material(Dey, N., & Tamane, S. 2018).
Big data
The big data is all about storing information under three dimensions profit, planet, people, and it is related to economic, environmental, and social elements(Kamenov, 2018).
Figure 6 Big Data
The liquidity and profitability of a company’s data is seen under financial success. The sustainability of the environment undertakes essential technical practices to reproduce goods. The social perspective defines the economic actions of societal social capital (Uthayakumar, et al. 2019).
Chapter 3: Application of Industry 4.0 in Nestle
Nestle has planned to improve its food processing and product development segment with the help of the latest research. This research is attributable to industry 4.0 by envisaging the newest product development. The company is planning to implement cost optimization and labor inputs, in accordance with industry 4.0 in its plants of Germany. The Orange Box Solution is a similar technology being implemented in the plant to meet technical transformation and to make a step forward for the factories. Nestle plant in Schwerin, Germany, is intending to build highly advanced technology to attain the level of standardization. The Nestle production systems focused on efficient plant maintenance systems to acquire a competitive level in a performance that help optimize the value of the industry. The network infrastructure is going to be aligned with market demand so that monitoring and tracking of activities become easy (Amagliani et al., 2017).
Figure 7 Implementation of industry 4.0
Nestle has also implemented automation suppliers regarding technical management. The measures are implemented to enhance the efficiency of the system; for instance, unplanned downtime is reduced by improving the overall efficiency of the equipment. The fully integrated systems with technology are providing business resource management while the company is meeting the security standards of the global level (Birkel et al., 2019). Mapp technology is implemented to allow connection with various standard functions. Mapp mechanism is a smart application to establish a functional block for the company. It offers interactive components for technology that exchange data automatically. The automation effect and integrated line production is significant to understand because software packages under machine technology are coherent as it has opened a new field for the food industry (Gallmann, 2003).
The Mapp technology is further linked to the map view interface, which is managed by automation engineers. The easy to use HMI interfaces are aligned on the networking standards and ensure optimal viewing.
Benefits of Industry 4.0 in Nestle
With the development of integrated machine learning technology, Nestle has improved data transmission and virtual reality systems. The development, verification of performance, a wide variety of food packages systems, and machinery has faced a method of improvement under technology. Nestle has focused on the internal integration of product packaging lines that have improved the machine vision process for the inspection of product packaging and assemblage (Luque et al., 2017).
Nestle’s research and development has improved product technology in areas of competence. The Konolfingen area is a basic example in this context, and it is about nutritional solutions that are documented with consumer benefits(Nalchigar & Fox, 2017). The application of enzyme technology is significant to protect from allergy prophylaxes and promote digestion. Nestle has implemented cutting edge technology for aseptic filling and conservative heat treatment. The notion of process technology is also a significant benefit that is according to hygienic design (O’Shea, O’Callaghan, and Tobin, 2019). The revolutionary interventions have been implemented in Nestle regarding the product dying process and production of the probiotic culture.Menu support and integration are managing requirements of Nestle because the non-specialist staff needs help. Technology through communication fulfills TCP standards in terms of protocols (Khramtsov, 2018). The orange box technology in Nestle was implemented to produce food supplements to meet the nutritional needs of customers. It organizes data for staff to work under a security mechanism. This autonomous solution is helpful for the standard information systems and establishes insight to improve the targets.
Drawbacks
No drawback from the cutting edge technology has been seen for the food industry and processed production, instead, this technical framework is appeared significant to ease and facilitate the complex food systems and helped manufacturers to advance their production (Putičová, Mezera and Mejstříková, 2012). Some drawbacks can be related to security, digital waste, and collection of unnecessary data that needs effort by involving the digitization and automation process.
Implications
Industry 4.0 is a crucial development idea for Nestle because its processes have scaled up the business process due to state of the art technology programs (Rezzonico et al., 2015). The specialist’s team of research, quality assurance, and production are managing the nutrition level in the factory line (Uthayakumar, et al. 2019).
Szoda’s concepts to Nestle
The case study given by Szoda discusses the significance of industry 4.0 and its implementation in the supply chain process. The application of ideas discussed by a case study on Nestle can be seen from the optimal operation process carried out in food processing. The figure below presents the core operation in Nestle by highlighting planning that relates to suppliers, manufacturers, and goes to distributors.
Figure 8 information flow
The technology in this way has proved to be safer for a factory because the highly developed processes of security and control system are aligned with the state of the art simulation network and working for the efficient operation of complicated food processing programs (Vilkhu et al., 2008).Nestle management can be seen effective with the implementation of stock management and product segment process, as seen from this figure.
Figure 9 segmentation of products
The case study elaborates on product development and design options with relation to industry 4.0 that facilitates the process of information in food processing(Gilchrist, 2020).The advanced technology in the form of increased use of technology for the industry has improved the use of automation. The ease of automotive solutions to manufacturers has provided them an open and better space to work and coordinate.
Chapter 4: Conclusion
Nestle food industry is implementing the core concepts of industry 4.0 as the fourth revolution that can enhance food processing mechanisms. The company has to deal with improved processes of foods, to maintain its nutritional needs. The implementation of advanced technology and digital methods for food and beverages is carried out through storing data, recording information, and integrating human-based problems. Integrating technology is all about making efficient production to fulfill consumer demand. Nestle gathers data about consumer demand and implements IoT concepts to manage smart solutions. Bringing 4.0 industry to the food industry is to enhance food capacity and to solve problems regarding food production and to facilitate production operations.
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