Industry 4.0 and Development of Industrial Labour
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1 Industry 4.0 and Development of Industrial Labour Prof. em. Dr. Hartmut Hirsch-Kreinsen Research Area Industry and Labour Research TU Dortmund University
2 Agenda 1. The Concept of Industry Economic and Social Expectations 3. Development of Industrial Labour 4. Prospects Hirsch-Kreinsen, December
3 Digitalization of the economy The Second Machine Age is emerging A long period of gestation for ICT: processing power exploded costs tumbled digitalization of just about everything Phase of disruptive change is beginning: professions of all kinds from laywers to truck drivers will be upended intellectual work will be automated Hirsch-Kreinsen, December
4 A new wave of digitalization of economic an social processes First wave: since the 1990ies digitalization of immaterial information-based processes, e.g. financing, consultancy, publishing, music-industries, communication etc. Second wave: since the last decade integration of internet/virtual world with physical systems Internet of Things Second-wave-mutation of technological, economic and social development (Zuboff, 2010) Hirsch-Kreinsen, December
5 The German version: From Industry 1.0 to Industry 4.0 cf. achatech Hirsch-Kreinsen, December
6 Vision of manufacturing Industry 4.0 Hirsch-Kreinsen, December
7 A radical innovation of industrial prozesses Fundamental change of process structures Systems optimize themselfes automously Planning and execution in real time Application in manufacturing, logistics, planning and contolling, engineering, management New business models Individualization of products and lot size 1 Service orientation, smart ervices Integration of market and customer data through Big Data methods Change of labour!? Hirsch-Kreinsen, December
8 Agenda 1. The Concept of Industry Economic and Social Expectations 3. Development of Industrial Labour 4. Prospects Hirsch-Kreinsen, December
9 Fundamental changes of traditional forms of manufacturing organization Technologically driven self-optimization and re-configuration of the autonomous system Overcoming the existing technological and economic limits of automation Ability to deal autonomously with external varying demands and unexpected process disturbances Networked products and process technologies, logistical functions, planning departments Industry 4.0 as disruptive process innovation Hirsch-Kreinsen, December
10 Economic expectations Meeting individual customer requirements Dynamic design of business and engineering processes Optimized decision-taking Increasing resource productivity and efficiency Creating value opportunities through new services Responding to demographic change in the workplace Improving work-life-balance (cf. achatech) Hirsch-Kreinsen, December
11 (Source: Platform Industrie 4.0, 2016) Hirsch-Kreinsen, December
12 A more differentiated prospect (Source: Platform Industrie 4.0, 2016) Hirsch-Kreinsen, December
13 Mainstream opinion: Human beings remain essential Hirsch-Kreinsen, December
14 Men as the conductor of the value chain (cf. BITKOM et al. 2015) Hirsch-Kreinsen, December
15 Agenda 1. The Concept of Industry Economic and Social Expectations 3. Development of Industrial Labour 4. Prospects Hirsch-Kreinsen, December
16 Contradictory forecasts on the future of work Pessimistic perspective High levels of job loss Deskilling and polarisation of qualification New kinds of stress and employee surveillance Unregulated flexibilization of work Precarization and social degradation Optimistic perspective Compensation of job losses by job creation Upgrading of jobs and skills Optimization of work processes and reducing of stress Regulated flexibilization and improved work-life balance Generally: revaluation of industrial work Hirsch-Kreinsen, December
17 Divergent scenarios of production labour Automation technology-driven Organization Polarization segmented Organization substitute for labour in a wide range (Frey/Osborne 2017) lousy and lovely jobs (Goos/Manning 2007) Upgrading integrated, flexible Organization Own source better jobs at every level enriched by an informating technology (Zuboff 1988) Hirsch-Kreinsen, December
18 Very often incremental change of labour Optimization of existing processes using digital technologies Gradual development of new tasks and new qualification requirements Step-by-step innovations and only slow adaptation to the existing structueres Avoidance of risks and costs (follw-up costs) of the new technologie Maintaining existing operating and working structures High relevance of available skills and experiences Maintaining highly efficient conventional processes Updating of existing skill structures and work organizations Scepticism and caution, especially among SMEs Hirsch-Kreinsen, December
19 Challenges for work design Realization of optimistical perspective desirable but no automatic mechanism Although technology push, but never overestimating technological potentials Versus technical determinism rather freedom of work design at various hierarchy levels Development of labour depending on design goals, strategic decisions, negotiating processes and the course of introduction processes of digital technologies Industry 4.0 as a design project Hirsch-Kreinsen, December
20 Dimensions of work design Man-machine interfaces/man-machine-interaction Work organization: jobs and division of labor cooperatin and communication scope of action and control/hierarchy Competences: skills and qualification learning opportunities integration of new IT and of traditional manufacturing competences Overall system: hierarchy and management Hirsch-Kreinsen, December
21 Industry 4.0 as socio-technical system Not either technology or human, but matching of technology, human and organization Not optimizing individual subsystems, but optimization of the entire system Socio-technical design as a pre-condition for economic efficiency Hirsch-Kreinsen, December
22 Agenda 1. The Concept of Industry Economic and Social Expectations 3. Development of Industrial Labour 4. Prospects Hirsch-Kreinsen, December
23 Limits of Industry 4.0 Operativeness and fields of application of the new systems not yet clear High efficiency of existing processes, but unclear gains of I4.0 Adjustment problems and compatibility with existing IT / production systems - immense" cost of data migration and porting Often unclear investment costs and follow-up costs SMEs: lack of resources and competences, skepticism, caution and aversions Hirsch-Kreinsen, December
24 Prospects do exist Advanced functional and economic use potentials of ICT Fast diffusion due to lower costs and continuous improvement of the applicability of the systems The need to push technological development and automation due to market requirements and the lack of skilled labour Push by influential groups of actors: computer science, manufacturing science, politics, larger companies - national and international Hirsch-Kreinsen, December
25 Prospects for the development of work Prerequisite for human-oriented work design in various dimensions, e.g. support and learning functions Stabilization and expansion of socio-political desirable employment Use of the design potential of Industry 4.0 to increase the attractiveness of industrial labor in the face of growing scarcity of skilled workers and demographic challenges Reindustrialization, relocation of globalized production sites and creation of new industrial jobs possible Hirsch-Kreinsen, December
26 Thank you for your attention! Hirsch-Kreinsen, December
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