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BP255 Logistics And Supply Chain Management

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BP255 Logistics And Supply Chain Management

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Course Code: BP255
University: Royal Melbourne Institute Of Technology

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Country: Australia


You will conduct a review of the literature in the subject area commonly referred to as “Industry 4.0”.  Specifically, you are to identify the origins of the concept of the Fourth Industrial Revolution and to chart its development up to the present day.
Following your review, you are to critically evaluate the impact of Industry 4.0 on the supply chain operations of a company of your choice.
You will be expected to illustrate your discussion with examples from academic journals, the trade press and other authoritative sources. 


Industry 4.0 is the use of various technologies, such as cognitive computing, cloud computing and automation to increase production in the organization. The following looks at some of the literature surrounding Industry 4.0, and how this can be applied to the chosen organization, which is McDonald’s.
About the Company 
The organization that is chosen is McDonald’s, which is a large fast-food company. It is a multinational organization, and a formal, private sector organization. There are 37,000 people who have been employed in McDonald’s. McDonald’s is a large-scale organization, which can be seen form the profit which they earn, and the number of people who have been working in the organization. The main products sold by the organization are burgers, French fries and milkshakes (Popkova, Ragulina and Bogoviz, 2018). They also have a large section called McCafé, which provides coffee and various drinks in many McDonald’s outlets as well. This makes it one of the largest fast-food chains in the world since apart from Subway, it also has the largest number of franchises as well (Junior et al., 2018). The main customers of the organization differ from various countries. The main customers in India, for example, would be the young, middle-class population, which consists of those who have moderately well-paying jobs, and are living in cities. In the United States of America, however, the target is the majority of the population and those who are in the lower-middle class, who cannot afford to have food from various organizations.
Literature Review
Industry 4.0 is the current trend of automation and revolution in the internet industry, which can be traced back to Germany.
According to Lasi, et al., (2014), the name for Industry 4.0 was revived from a German exhibition or fair in 2011, where the automation of the machines in various industries was being discussed. However, the term originates from a high-powered government project in Germany (Lasi, et al., 2014). Industry 4.0 is the fourth industries revolution, and this can be seen in the way that the machines have been known to automatically use data-exchange, the latest technology and the cyber-physical systems that are in place to ensure that the organization has been working in to increase the process of automation, and the use of cloud computing and the Internet of Things.
Almada-Lobo, (2016), feel that Industry 4.0 is the beginning of smart factories, which use the latest technology, and Industry 4.0 is the end of traditional applications of centralized control. Thus, according to them, Industry 4.0 would have started with the use of the Internet f Things, and Robotics in organizational production lines (Almada-Lobo, 2016). Industry 4.0 is one of the biggest changes in recent times and has been compared to the Industrial Revolution regarding the extent of innovation that has gone into the organisations who have been using the Internet to ensure that there are changes that have been made.
Industry 4.0 started with the use of digitization, and the use of various technologies by various means in an organization. This meant that when various industries, according to Qi and Tao, (2018), started using digital technology, and the internet in order to make sure that the machines were working efficiently, and to reduce the use of manpower into the processes of manufacturing, Industry 4.0 had started to begin (Qi and Tao, 2018). This could have a significant impact on the organization since it would mean that it would be easier to achieve synchronization within the industry as well.
According to Xu, Xu and Li, (2018), the Internet of Things and automation is one of the main issues that are concerned with the organization, and this has been having a significant effect on most organizations and their development. It was through the process of automation and through the use of the Internet of Things that Industry 4.0 was developed. This could mean that this was the main process of Industry 4.0, and was also one of the main discoveries of the 4th Industrial Revolution as well (Xu, Xu and Li, 2018).
The main starting point of Industry 4.0 was the beginning of the project called the Intelligent Technical Systems Ostwestfalen-Lippe by the German Government. According to Gilchrist, (2016), it started in 2013 and was using the techniques of automation to have self-optimization and self-configuration. This was introduced by the BMBF to help workers in realizing their goals, and to ensure that the organization has been successful in warranting that there are minimum organizational hazards as well (Gilchrist, 2016). This was a milestone, since it happened through intense research and innovation, and was successful in ensuring that Germany was brought on the map regarding innovation in the industrial sector.
According to Liu and Xu, (2017), in 2013, the firm McKinsey, which is a consultation firm, also released an interview with various McKinsey employees, and other industrial leaders, which looks at the Internet of Things, and how it can help the manufacturing industries to a large extent. The authors imply that this aims to bring in a new industrial revolution (Liu and Xu, 2017). It was then revealed, that in Borsch, it is called Industry 4.0 since it has been called that in most of Germany as well. This could have a significant impact on the industry and could change every organization in the industry for the better.
Szozda, (2017), looks at some of the challenges that come to the modern supply chain when it uses Industry 4.0 for operation. The research done found that it is not unusual for modern supply chains to use organizational chains to control the flow of information in a supply chain (Szozda, 2017). The study is of relevance since it would look at how organizations can be impacted by issues that are related to data security and the capacity of long-distance wireless networks. The study reveals that most managers are aware of the consequences of the action, and the benefits of the system itself.
According to Galetta, et al., (2018), there are significant impacts of cloud computing and social media is being made on organizations, and this can have a significant impact on retention marketing strategies that are used in the organization. This can have a significant impact on the organization since it can lead to a change in the whole production cycle of an organization as well (Galetta, et al., 2018). Social media and cloud computing can make the experience of the customer important. Cyber-physical systems can help change the production line to meet the needs of the customers as well.
Tseng, et al., (2018), looks at the impact of the Big data on organizations. It is the change in data-mining and data-gathering techniques that have resulted in the Industry 4.0 being achieved. The paper looks at how multi-industry crossovers have resulted in multiple supply chains in a modern economy (Tseng, et al., 2018).
Agrawal, (2018), looks at how Industry 4.0 can be applied in an organization that has a firm structure (Agrawal, 2018). The paper looks at how the performance of the firm can be improved using Industry 4.0 and the various methods to improve them as well.
Replication of case study
McDonald’s is one of the largest organizations in the world. However, regarding manufacturing, the organization has been having issues in ensuring that the patties (which are pre-made in a factory) remain the same. This could have a significant impact on the organization since it would mean that the customers in various parts of the United States of America, and many parts of the world, would be given the same quality, which might reduce the no of customers who have been loyal to the organization. It has thus, become essential for the organization to ensure that they can meet the demands of the consumer and that they can adequately supply all of their products with the same quality and taste.
The current supply-chain process of the organization, and the production chain as well is very linear. There is no use of cloud computing in the distribution and checking process, and generally very little automaton as well. The process of measurement and mixing of ingredients is dependent on the human workers in the organization, and this can lead to a difference in the taste of the burgers as well (Dalenogare, et al., 2018). Hence, there is an urgent need for cloud computing and organizational automation in the production line. By using machines to measure and mix the ingredients, it could change the taste and make it even over all the production and distribution structures as well.
The process currently is the following. The first step is the procurement of the ingredients from the manufacturers, which is followed by the process of washing the ingredients, and ensuring that the ingredients are chopped. The next step would be the mixing process, where all the ingredients are mixed (Angrisan, et al., 2018). Then the ingredients are cooked if needed and then frozen partway. The next process would be where the ingredients are packaged, and the final step would be the storing and transportation. The current chart does not use any automation regarding robots doing the lifting, or the packaging. It is also not connected to cloud computing in any way, which can often be of benefit to the organization.
It would be essential to note that using the Industry 4.0 model would be extremely beneficial. The main areas where the model would be applied would be during the screening and mixing of the ingredients. It would also be used in many ways during the entire process of ensuring that the storage of data, can be linked to all the manufacturing plants, and the stores, so that
Well. This would be beneficial to the organization since it would eliminate the need for human employees in the organization, and it would cause the organization to eliminate many of the mistakes that are made by the employees as well.
As it can be seen, the various processes that the organization has have been linked to the cloud or the automation, to make the process easier, and to ensure that there is faster delivery of the various ingredients and products. This can have a dramatic impact on the organization, and can change the process to make it simpler and to ensure that there is not a place that is without the ingredients needed, and of quality (Biczok, et al., 2018). The computers would ensure that the organization has been doing the best that it can to make sure that the organizational design and the supply-chain design is efficient so that the employees have been able to serve the best possible meal to the customers.
The following looks at some of the important moments of Industry 4.0, which has been instrumental in ensuring that the manufacturing and supply chain industry has been adapting to the latest technology and ensuring that everything is automated.
The above paper looks at McDonald’s and how it can be positively influenced by the supply chain and manufacturing industry to have the best possible product as well.
Agrawal, A., 2018. Incorporating Industry 4.0 in Firm Strategy. Academy of Management Global Proceedings, (2018), p.6.
Almada-Lobo, F., 2016. The Industry 4.0 revolution and the future of manufacturing execution systems (MES). Journal of innovation management, 3(4), pp.16-21.
Angrisani, L., Arpaia, P., Bonavolonta, F. and Moriello, R.S.L., 2018. Academic FabLabs for industry 4.0: Experience at University of Naples Federico II. IEEE Instrumentation & Measurement Magazine, 21(1), pp.6-13.
Biczok, R., Busch, K., Heinrich, R. and Reussner, R., 2018. An Industry 4.0 Case Study: The Integration of CoCoME and xPPU. Technical Report, 10.5445/IR/1000084283.
Dalenogare, L.S., Benitez, G.B., Ayala, N.F. and Frank, A.G., 2018. The expected contribution of Industry 4.0 technologies for industrial performance. International Journal of Production Economics, 204, pp.383-394.
Galletta, A., Carnevale, L., Celesti, A., Fazio, M. and Villari, M., 2018. A Cloud-Based System for Improving Retention Marketing Loyalty Programs in Industry 4.0: A Study on Big Data Storage Implications. IEEE Access, 6, pp.5485-5492.
Gilchrist, A., 2016. Introducing Industry 4.0. In Industry 4.0(pp. 195-215). Apress, Berkeley, CA.
Junior, J.A.G., Busso, C.M., Gobbo, S.C.O. and Carreão, H., 2018. Making the links among environmental protection, process safety, and industry 4.0. Process Safety and Environmental Protection, 117, pp.372-382.
Lasi, H., Fettke, P., Kemper, H.G., Feld, T. and Hoffmann, M., 2014. Industry 4.0. Business & Information Systems Engineering, 6(4), pp.239-242.
Liu, Y. and Xu, X., 2017. Industry 4.0 and cloud manufacturing: A comparative analysis. Journal of Manufacturing Science and Engineering, 139(3), p.034701.
Popkova, E.G., Ragulina, Y.V. and Bogoviz, A.V., 2018. Fundamental Differences of Transition to Industry 4.0 from Previous Industrial Revolutions. In Industry 4.0: Industrial Revolution of the 21st Century (pp. 21-29). Springer, Cham.
Qi, Q. and Tao, F., 2018. Digital twin and big data towards smart manufacturing and industry 4.0: 360 degree comparison. IEEE Access, 6, pp.3585-3593.
Szozda, N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum, 13(4), pp.401-414.
Tseng, M.L., Tan, R.R., Chiu, A.S., Chien, C.F. and Kuo, T.C., 2018. Circular economy meets industry 4.0: Can big data drive industrial symbiosis?. Resources, Conservation and Recycling, 131, pp.146-147.
Xu, L.D., Xu, E.L. and Li, L., 2018. Industry 4.0: state of the art and future trends. International Journal of Production Research, 56(8), pp.2941-2962.

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