industry 4.0 and development of industrial labour · industry 4.0 and development of industrial...
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Prof. em. Dr. Hartmut Hirsch-Kreinsen
Research Area Industry and Labour Research
TU Dortmund University
Industry 4.0 and Development of
Industrial Labour
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Agenda1. The Concept of Industry 4.02. Economic and Social Expectations3. Development of Industrial Labour4. Prospects
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Digitalization of the economy –The „Second Machine Age“ is emerging
professions of all kinds –from laywers to truck driverswill be upendedintellectual work will be automated
A long period of gestation for ICT: • processing power exploded• costs tumbled• digitalization of just about everything
Phase of „disruptive“ change is beginning:
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A new wave of digitalization of economic an socialprocesses
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 andsocial development (Zuboff, 2010)
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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, managementNew 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 !?
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Agenda1. The Concept of Industry 4.02. Economic and Social Expectations3. Development of Industrial Labour4. Prospects
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Fundamental changes of traditional forms ofmanufacturing organization
Technologically driven self-optimization and re-configuration ofthe autonomous system
Overcoming the existing technological and economic limits ofautomation
Ability to deal autonomously with external varying demands and unexpected process disturbances
Networked products and process technologies, logisticalfunctions, planning departments
Industry 4.0 as „disruptive“ processinnovation
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Economic expectations
Meeting individual customer requirementsDynamic design of business and engineering processesOptimized decision-taking Increasing resource productivity and efficiencyCreating value opportunities through new servicesResponding to demographic change in the workplace Improving work-Life-balance
(cf. achatech)
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A more differentiated prospect
(Source: Platform Industrie 4.0, 2016)
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Agenda1. The Concept of Industry 4.02. Economic and Social Expectations3. Development of Industrial Labour4. Prospects
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Pessimistic perspective− High levels of job loss
− Deskilling and polarisation ofqualification
− New kinds of stress and employeesurveillance
− Unregulated flexibilization of work
− Precarization and socialdegradation
Optimistic perspective− Compensation of job losses by job
creation
− Upgrading of jobs and skills
− Optimization of work processes andreducing of stress
− Regulated flexibilization andimproved work-life balance
− Generally: revaluation of industrialwork
Contradictory forecasts on the future of work
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Own source
Automationtechnology-driven Organization
„substitute for labour in a wide range”
(Frey/Osborne 2017)
Upgradingintegrated, flexible Organization
„better jobs…at every level …enriched by an informating technology“ (Zuboff 1988)
Polarization segmented Organization
„lousy and lovely jobs” (Goos/Manning 2007)
Divergent scenarios of production labour
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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
Very often „incremental“ change of labour
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
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Challenges for work design
− Realization of optimistical perspective desirable – but no automaticmechanism
− Although „technology push“, but never overestimating technologicalpotentials
− Versus „technical determinism“ – rather freedom of work design at varioushierarchy 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
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Dimensions of work design
Man-machine interfaces/man-machine-interactionWork organization:
jobs and division of laborcooperatin and communicationscope of action and control/hierarchy
Competences:skills and qualificationlearning opportunitiesintegration of new IT and of traditional manufacturingcompetences
Overall system: hierarchy and management
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Socio-technical design as a pre-condition for economic efficiency
Industry 4.0 as socio-technical system
− Not either technology orhuman, but matching oftechnology, human andorganization
− Not optimizing individual subsystems, but optimization of the entiresystem
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Agenda1. The Concept of Industry 4.02. Economic and Social Expectations3. Development of Industrial Labour4. Prospects
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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
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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
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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