**2. Production system**

A production system, as a value creation module (**Figure 1**) is a system that transforms input in the form of material, energy, information, and monetary means, into value-created output such as a fabricated or assembled product [4]. This is achieved through the synergy of value creation factors: product, process, equipment, organization, and human [5]. The value creation of a product involves several processes, which require organization procedures to manage their execution. The processes consist of technical operations, which can be categorized as machining, assembly, testing, handling, conveying, storing, collecting, distributing, sorting, and packaging [6]. The operations are performed or supported by humans and equipment. Linking all the operations involved in the production, processing, and distribution of goods within specified areas is defined as a material flow [7]. It covers all forms of work objects' (e.g., substances, parts, and carriers) movement in the production system either by manual or using automation.

In order to sustain competitiveness in dynamic markets, new designs of production systems are required. Since its development two centuries ago, the production

**171**

*Revolution of Production System for the Industry 4.0 DOI: http://dx.doi.org/10.5772/intechopen.90772*

such production was not scalable.

dedicated production line.

component level.

variety relationship.

**2.1 Dedicated production lines**

increases the overall factory cost significantly.

industry has revolved through several paradigms [8]. The first paradigm was Craft Production, which created the product the customer requested at a high cost. There were no production systems associated with this paradigm. Most of the production industries during this year used manual processes by handmade. In addition, the providers of craft products were confined to localized geographical regions, hence

After a certain century, a new moving assembly line was introduced in the 1913s. This year is the beginning of mass production, which provided low-cost products through large-scale production. However, the number of varieties offered by such production was very limited. The year 1955 shows the peak of mass production due to the highest rate of production. The production system during this era is called

In the late 1980s, global competition and consumer demands for high-product variety led to the development of mass customization [3]. Manufacturers designed the basic product architecture and options while customers are allowed to select the assembly combination that they prefer the most. Dedicated production line is not able to cope with the product variations of product family. An invention of computer numerical control (CNC) technology was introduced in the year 1980s to support the high-frequency changes in customer's requirements. This production system can be called as flexible manufacturing system (FMS). Planning of the product family enabled manufacturers to share certain common components across the products in the family so that the economy of scale is achieved at the

However, the process of manufacture and development of new products has become more challenging yet complicated [9]. While there are many changes and variations in customer requirements, the high flexibility of the system to produce a variety of products on a similar system is also required at the same time. In the 2000s, the production industry needs to face unpredictable, high-frequency market changes, and other challenges due to globalization in this twenty-first century [10]. Nowadays, customers' desire to influence and participate in the design of products is the key driver leading to the new emerging production paradigm, which we call personalization or personalized production. Therefore, a new type of production system is required in order to make the competition between companies in the production industry to make it become more responsive to all the market changes [11]. The concept of reconfigurability is introduced in production to support high-frequency market changes [10]. The revolution of production systems based on production paradigms is illustrated in **Figure 2** using a product volume-product

Producing large quantities of standardized products known as mass production is the American system of production. This production strategy began with the launch of the Henry Ford Moving Assembly Line, which culminated in a high product demand following World War II. In this production era, dedicated production lines represented a key paradigm in production industries. Dedicated production lines produced large quantities for a single part type and very profitable when demand for this part is high [12]. **Figure 3** shows an example of dedicated production lines for the manufacture of cars. The dedicated production lines are costeffective as long as they can operate at full capacity. However, market pressure from global competition and over-capacity worldwide is increasing. In order to maintain the varieties of products, many dedicated production lines are required [13]. This

**Figure 1.** *Production systems as a value creation module.*

#### *Revolution of Production System for the Industry 4.0 DOI: http://dx.doi.org/10.5772/intechopen.90772*

*Mass Production Processes*

**2. Production system**

and a wide range of individualized product demands from customers all over the world, companies will need to provide quality and reliable products within the international competition needs. Only enterprises that react on changing markets and customer preferences quickly and cost-effectively are able to stay competitive in this environment [3]. On the other hand, the competition has opened up and provides an endless challenge to the researcher to provide a better solution.

As forecasting and planning become less and less reliable, the support for continuous changes is helpful. Short response times and high changeability in layout and in processes for the production and logistics systems are strongly required [2].

A production system, as a value creation module (**Figure 1**) is a system that transforms input in the form of material, energy, information, and monetary means, into value-created output such as a fabricated or assembled product [4]. This is achieved through the synergy of value creation factors: product, process, equipment, organization, and human [5]. The value creation of a product involves several processes, which require organization procedures to manage their execution. The processes consist of technical operations, which can be categorized as machining, assembly, testing, handling, conveying, storing, collecting, distributing, sorting, and packaging [6]. The operations are performed or supported by humans and equipment. Linking all the operations involved in the production, processing, and distribution of goods within specified areas is defined as a material flow [7]. It covers all forms of work objects' (e.g., substances, parts, and carriers) movement in

In order to sustain competitiveness in dynamic markets, new designs of production systems are required. Since its development two centuries ago, the production

the production system either by manual or using automation.

**170**

**Figure 1.**

*Production systems as a value creation module.*

industry has revolved through several paradigms [8]. The first paradigm was Craft Production, which created the product the customer requested at a high cost. There were no production systems associated with this paradigm. Most of the production industries during this year used manual processes by handmade. In addition, the providers of craft products were confined to localized geographical regions, hence such production was not scalable.

After a certain century, a new moving assembly line was introduced in the 1913s. This year is the beginning of mass production, which provided low-cost products through large-scale production. However, the number of varieties offered by such production was very limited. The year 1955 shows the peak of mass production due to the highest rate of production. The production system during this era is called dedicated production line.

In the late 1980s, global competition and consumer demands for high-product variety led to the development of mass customization [3]. Manufacturers designed the basic product architecture and options while customers are allowed to select the assembly combination that they prefer the most. Dedicated production line is not able to cope with the product variations of product family. An invention of computer numerical control (CNC) technology was introduced in the year 1980s to support the high-frequency changes in customer's requirements. This production system can be called as flexible manufacturing system (FMS). Planning of the product family enabled manufacturers to share certain common components across the products in the family so that the economy of scale is achieved at the component level.

However, the process of manufacture and development of new products has become more challenging yet complicated [9]. While there are many changes and variations in customer requirements, the high flexibility of the system to produce a variety of products on a similar system is also required at the same time. In the 2000s, the production industry needs to face unpredictable, high-frequency market changes, and other challenges due to globalization in this twenty-first century [10].

Nowadays, customers' desire to influence and participate in the design of products is the key driver leading to the new emerging production paradigm, which we call personalization or personalized production. Therefore, a new type of production system is required in order to make the competition between companies in the production industry to make it become more responsive to all the market changes [11]. The concept of reconfigurability is introduced in production to support high-frequency market changes [10]. The revolution of production systems based on production paradigms is illustrated in **Figure 2** using a product volume-product variety relationship.
