Johann Hoffmann: "Into the Future with Industry 4.0."

Johann Hoffmann: "Into the Future with Industry 4.0."

A switch manufacturer in Regensburg is approaching Industry 4.0 - with machines that think along and workers who control the network.

Humming computers, rattling plants, skilled workers in blue overalls. At first glance, the machine factory Reinhausen in the north of Regensburg appears to be an ordinary industrial plant. But that's not true because they are actually working here on the industry of the future. The Industry 4.0. Skilled workers walk back and forth between computers and plants, monitoring all processes in real-time on monitors. An orange robot is grinding a workpiece. Together, humans and machines produce tap changers, a component of transformers. The medium-sized company is a world leader in this field. The machine factory Reinhausen produces about 12,000 tap changers per year and delivers them all over the world - even in New York, the switches from Regensburg ensure the energy supply. Each customer demands different designs, making mass production difficult. To guarantee a variety of variants, the family business relies on Industry 4.0 (see footnote) and its promise of intelligent machines. According to industrial visionaries, the machine of the future is in constant exchange with its robotic colleagues and informs them when it needs different tools for a new product or reaches its capacity limits. This is intended to reduce costs and increase productivity. The smart factory also promises unique products off the assembly line: Using new techniques, products can be efficiently produced in small quantities according to customer preferences. With the invention of the steam engine, the assembly line, and computer technology, Industry 4.0 heralds the fourth phase of industrialization. What does the smart factory mean for the world of work now? Which jobs will disappear in digitized manufacturing, and what new professions will emerge? Questions that are also being asked in Regensburg. Climbing a few steps from the factory floor to the office spaces, you meet Johann Hofmann in front of his computer. The mechanical engineer invented the software solution for the intelligent production of tap changers. Since 1989, he has been working on how to digitize the manufacturing process at the machine factory Reinhausen. Step by step, he connected machines, components, and tools to create a central data hub: an intranet of things. Hofmann's software acts like a multilingual interpreter: it translates different data languages and connects humans and machines. "Now machines, components, and tools finally speak the same language," says Hofmann, who still exudes the enthusiasm of a student, even though he now has gray hair. In Reinhausen, machines are not meant to replace humans but to assist them with complex questions. While humans occasionally choose the wrong option, algorithms always calculate the perfect answer, determining which tools the machine needs for the most efficient production of a specific switch. Hofmann's vision of Industry 4.0 is not an empty factory but the computer as an intelligent and tireless assistant to skilled workers. This sets him apart from the radical visionaries who want to banish humans entirely from factories. Many medium-sized companies have become too comfortable in their niche Jonas Hofmann lists the advantages of his streamlined version of Industry 4.0 over the old manufacturing method: The flow of data increases the pace of production, as well as the quality and punctuality of deliveries. For the smart factory, Hofmann and his colleagues in Regensburg have already won an Industry 4.0 award. While Hofmann gives lectures as an expert throughout Germany, other companies are overwhelmed by digital progress. Especially "hidden champions" from medium-sized businesses, who have comfortably established themselves as world leaders in their niches, are uncertain. According to a study by the consulting firm McKinsey, only six out of ten companies in Germany feel prepared for Industry 4.0. Although 91 percent see digitization as an opportunity for their production, managers are reluctant to invest. German companies allocate 14 percent of their annual research budget to digitization - in contrast, US companies invest twice as much. At the Fraunhofer Institute for Industrial Engineering and Organization, researchers are studying the impact of networked machines and robots on the job market. "Certain activities associated with simple qualifications will disappear," says institute director Wilhelm Bauer. Welding, screwing, riveting, grinding - these tasks are already being performed by robots in many places. Industry 4.0 requires new skills from the workforce. Networked thinking, comprehensive knowledge, and IT skills are becoming increasingly important. "New job profiles will emerge in the areas of programming, data management, and software," says Bauer. In the new industrial era, the demand for highly qualified individuals, especially, will increase. Workers are increasingly needed to solve problems and make decisions to keep the networked factory running. They must be able to operate apps and walk through the factory with data glasses. The German education system still needs to embrace digitization Germany prides itself on having coined the term Industry 4.0. However, educational institutions and companies are currently not adequately prepared for the self-made revolution. According to a future study by the Munich Circle, an international association for analyzing digital transformations, the German education system is lagging significantly behind in terms of digital talent. Teacher training needs to be improved, and digital skills should be integrated into curricula. Friedrich Hubert Esser, President of the Federal Institute for Vocational Education and Training (BIBB), also calls for greater efforts in the education and training sector. "Young people must not only be able to play with smartphones but also understand the logic behind the technology," he demands. In the machine factory in Regensburg, many employees were trained at a time when there were still punch cards instead of memory chips. Harald Suppmann, a Bavarian in blue overalls with a thick mustache, is a trained welder. Today, he monitors computer-controlled turning machines. Colored smileys on a screen indicate how efficiently the processes are running, flickering graphics and numbers provide Suppmann with information on how to process the component for the switch and which tool he needs. If an error occurs at his machine, all relevant specialists are immediately informed by the data hub. Harald Suppmann does not believe that his work will eventually be replaced by machines. "Nothing works without the hard drive up here, even in Industry 4.0," he says, pointing to his head. On average, workers in production are just under 40 years old. There are no recruitment problems: 105 apprentices are currently learning what it means to work in a smart factory as an industrial, machining, or process mechanic. The factory smells of cooling lubricant, metal is being machined, tools are being moved around. Despite the bustling activity, everything looks clean and orderly for the factory workers in their daily work, thanks to digitization: the computer sends the construction instructions for a workpiece directly to the employee, selects the right drawer of tools, and a simple mouse click starts the production. Does Industry 4.0 lead from the sweatshop to the feel-good factory? Unions and social partners warn of potential downsides of the new production model. While production flexibility increases efficiency, it can also bring uncertainty and pressure to the workforce. Constant availability, rationalization, and temporary work worry works councils. "Social partners, companies, and scientists must reflect on the process together," says Friedrich Hubert Esser from BIBB. "Humans must set the limits themselves." IG Metall has set up its own unit to deal with changes in the world of work. Constanze Kurz, a labor and technology sociologist, heads the department "Future of Work." When she talks about the upcoming revolution, she does not sound overly concerned. "Industry 4.0 can be an opportunity to make industrial work more valuable and interesting again," she says. While jobs with low qualification requirements may be lost due to automation, this is an opportunity: "We must shape the new world of work in a way that even low-skilled workers benefit from digitization." Johann Hofmann firmly believes that he is on the right path to the future with his data hub. Since the machine factory Reinhausen introduced intelligent production, fewer skilled workers are needed to produce even more tap changers. However, Industry 4.0 is not a job killer, says Hofmann. Only if Germany drives digitization forward will the industry remain competitive. If the digital revolution fails, many companies will relocate to low-wage countries. "In our company, often the grandfather, father, and son were machinists," says Hofmann. "With Industry 4.0, it may be possible for the grandson to work with us in Regensburg as well."