Production Networks meet Industry 4.0

Document from the year 2020 in the subject Computer Sciences - Industry 4.0, University of Split, language: English, abstract: In the era of globalization, on the one hand, and shortage of resources and climate changes, on the other hand, the manufacturing industry is looking for new sustainable production paradigms. The production of the 21st century should be based on efficient use of resources without threatening the environment and social stability. It means it could be reasonable for society to dislocate production from one industrial area to some other area with less manufacturing waste, or to search for free capacities in other factories, instead of purchasing new equipment to extend capacities in its own factories. This kind of production or manufacturing outsourcing can be presented as the Production Network, which represents a special case of the Virtual Enterprise. In the past, some enterprises literally outsourced their manufacturing. Today, Apple Inc. kept similar practice, so most of its smartphones are manufactured and assembled in China, but "Designed by Apple in California" as it is proudly stated on their products. This trend is followed by other US enterprises, as well. Europe has a different strategy. The leading EU industrial countries want to keep the remaining manufacturing in Europe and they want to bring back some of the manufacturing from China and other Eastern countries. They believe it would be possible through development of the new industrial platforms like Industry 4.0. There is an interesting fact that Production Networks are seen as one of the important aspects of Industry 4.0. The introduction of IoT and ICT into manufacturing environment enables the creation of Cyber-Physical System for agile and short-term production inside the Smart Factory. However, Cyber-Physical System can be extended outside of the factory and used to connect with other factories thus creating Cyber-Physical Production Network of smart factories. Since uniqu