Industry 4.0: Digital Transformation and the Digital Thread

Utilizing cloud computing, IoT and AI, the digital thread enables real-time collaboration and seamless information flow across lifecycle stages, breaking down barriers and fostering a connected ecosystem.

ITC Infotech has sponsored this post. Written by Rene A. Chargois III, Master Architect, Product Lifecycle Management (PLM) Solutions Architect at DxP Services, an ITC Infotech company.

Recent research by McKinsey and the World Economic Forum estimates that manufacturers and suppliers adopting Industry 4.0 in their operations could generate $37 trillion in value by 2025. At its core, Industry 4.0 means digitizing and seamlessly integrating vertical and horizontal information flows within supply chains and value chains. Key components of Industry 4.0 include the digitization of processes, the Internet of Things (IoT), artificial intelligence (AI), cloud computing and smart manufacturing concepts. These components work together to increase efficiency, flexibility and innovation across various industries.

The evolution of traditional PLM to digital thread in the context of Industry 4.0

The shift from traditional product lifecycle management (PLM) to Industry 4.0’s digital thread transforms product development. Utilizing cloud computing, IoT and AI, the digital thread enables real-time collaboration and seamless information flow across lifecycle stages, breaking down barriers and fostering a connected ecosystem. The integration of digital twins and predictive analytics further enhances decision-making, enabling rapid responses to market changes.

Understanding the digital thread

The digital thread epitomizes seamless information flow across a product’s lifecycle, a hallmark of digital transformation. It brings together data, processes and people, and integrates CRM, CAD, PLM, IoT and CAM into a unified system, facilitating a continuous thread from customer requirements to the manufacturing floor. This extends to information access, release and change management, ensuring seamless real-time monitoring and control coordination across all lifecycle stages.

The digital thread enhances enterprise efficiency by leveraging data, minimizing disruptions, streamlining processes, accelerating new product development within ecosystems or workstreams and optimizing the entire product lifecycle. Benefits include:

  • Faster time-to-market
  • End-to-end visibility into the entire product life cycle
  • Optimized service delivery
  • Improved labor efficiency and collaboration
  • Inventory optimization
  • Elevated quality standards through enhanced traceability and compliance
  • Enhanced supply-demand alignment
  • Maximizing resource and asset utilization

How to get started with the digital thread

Establishing the digital thread within an enterprise requires implementing PLM as its foundational framework. This transformation of the product lifecycle is the catalyst for enabling the digital thread across the enterprise. It involves facilitating the smooth flow of digital information throughout the organization and across each stage of the product lifecycle. The best way to define the value proposition is by:

  • Aligning digital transformation goals with executive-level strategies.
  • Identifying Key Performance Indicators (KPIs) to monitor progress.
  • Recognizing and overcoming common obstacles.
  • Mapping key business activities for product realization.
  • Identifying essential solutions for digital transformation.
  • Solutions to include integrated data and change management, enterprise integration and IoT.

How to enable the digital thread

Enabling the digital thread hinges on transforming PLM and the broader enterprise. It starts with implementing an integrated data and change management system, including essential components such as:

  • Requirements management
  • Document management
  • CAD Data
  • Parts
  • Design BOM
  • Manufacturing BOM
  • Service BOM

All parts of the system come together in one place using one database. This setup, managed by a unified system for tracking changes and configurations, guarantees that information moves smoothly through every stage of the product’s life, from the idea and design phases to manufacturing and upkeep.

Integrated Data and Change Management. (Image: ITC Infotech.)

Integrated Data and Change Management. (Image: ITC Infotech.)

5 Advantages of an integrated data and change management system

  1. Centralized Product Data Management: All product data is consolidated within a single system, offering a unified interface and a cohesive change management system.
  2. Seamless Controlled Access: Users benefit from seamless and controlled access to product data, efficient search functionalities and integrated change management processes.
  3. Comprehensive Change Management: Change management operations gain access to a comprehensive range of product data, spanning CAD files, parts lists, Bill of Materials (BOM), manufacturing instructions and work guidelines.
  4. Enhanced Product Configuration: Integration enables the incorporation of product configuration options and choices, along with efficient part classification, visualization tools and reporting capabilities.
  5. Simplified System Maintenance: The integrated system streamlines administrative tasks, ensuring smooth platform functioning.
Smart connected applications. (Image: ITC Infotech.)

Smart connected applications. (Image: ITC Infotech.)

For systems unable to seamlessly integrate into one database, integrating critical enterprise applications like product configurators, MES and ERP is vital. This extends PLM, linking upstream processes like customer orders to downstream operations, including manufacturing execution, delivery and maintenance. It ensures smooth information flow by connecting manufacturing engineering, ERP and MES systems, transferring essential data like release statuses, change records, documents, CAD files, parts lists, MBOM and work instructions. This unified dataset is easily accessible to planners, purchasing teams and operators.

Both systems seamlessly integrate identical information into the digital thread by synchronizing data across ERP and MES platforms. This unified ecosystem extends accessibility beyond production teams, empowering various departments to leverage ERP and MES data effectively.

Utilizing smart connected applications further enhances collaboration by enabling upstream workstreams to effortlessly access MES and ERP data. Driven by IoT, these apps consolidate enterprise data into a unified user interface. Departments like sales, design, manufacturing and service benefit from accessing essential data from Customer Orders, PLM, ERP and MES via a tailored interface, streamlining efficiency across the product lifecycle.

Enabling the digital thread. (Image: ITC Infotech.)

Enabling the digital thread. (Image: ITC Infotech.)

Industry 4.0 and the Digital Thread

Industry 4.0 signifies a transformative era, emphasizing digitization and seamless information integration. The shift to the digital thread revolutionizes product development, fostering real-time collaboration and decision-making. DxP Services champions this evolution, advocating for integrated data management and smart applications. By embracing these technologies, businesses can optimize efficiency and collaboration, paving the way for a more connected and intelligent industrial future.

To learn more, visit DxP Services at ITC Infotech.


About the Author

Rene A. Chargois III, Master Architect, Product Lifecycle Management (PLM) Solutions Architect at DxP Services, an ITC Infotech company, boasts 38 years as a global consultant and technology leader. Rene specializes in Manufacturing Process Management including PLM, product configuration, manufacturing planning, enterprise integrations, smart connected applications, ERP and MES processes and implementation.

Rene A. Chargois III, Master Architect, Product Lifecycle Management (PLM) Solutions Architect at DxP Services, an ITC Infotech company, boasts 38 years as a global consultant and technology leader. Rene specializes in Manufacturing Process Management including PLM, product configuration, manufacturing planning, enterprise integrations, smart connected applications, ERP and MES processes and implementation.