On the value of information for Industry 4.0

Piotr Omenzetter*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Industry 4.0, or the fourth industrial revolution, that blurs the boundaries between the physical and the digital, is underpinned by vast amounts of data collected by sensors that monitor processes and components of smart factories that continuously communicate amongst one another and with the network hubs via the internet of things. Yet, collection of those vast amounts of data, which are inherently imperfect and burdened with uncertainties and noise, entails costs including hardware and software, data storage, processing, interpretation and integration into the decision-making process to name just the few main expenditures. This paper discusses a framework for rationalizing the adoption of (big) data collection for Industry 4.0. The pre-posterior Bayesian decision analysis is used to that end and industrial process evolution with time is conceptualized as a stochastic observable and controllable dynamical system. The chief underlying motivation is to be able to use the collected data in such a way as to derive the most benefit from them by trading off successfully the management of risks pertinent to failure of the monitored processes and/or its components against the cost of data collection, processing and interpretation. This enables formulation of optimization problems for data collection, e.g. for selecting the monitoring system type, topology and/or time of deployment. An illustrative example utilizing monitoring of the operation of an assembly line and optimizing the topology of a monitoring system is provided to illustrate the theoretical concepts.

Original languageEnglish
Title of host publicationSmart Structures and NDE for Industry 4.0
PublisherSPIE
Volume10602
ISBN (Electronic)9781510617001
DOIs
Publication statusPublished - 2018
EventSmart Structures and NDE for Industry 4.0 2018 - Denver, United States
Duration: 5 Mar 20186 Mar 2018

Publication series

NameProceedings of SPIE
PublisherSPIE
ISSN (Print)0277-786X
ISSN (Electronic)1996-756X

Conference

ConferenceSmart Structures and NDE for Industry 4.0 2018
CountryUnited States
CityDenver
Period5/03/186/03/18

Fingerprint

Value of Information
industries
Industry
Monitoring
Monitoring System
Topology
topology
Decision theory
Processing
costs
Internet of Things
Assembly Line
Computer hardware
Decision Analysis
hubs
Industrial plants
Costs
Dynamical systems
decision making
Data Storage

Keywords

  • Decision analysis
  • Fourth industrial revolution
  • Industry 4.0
  • Pre-posterior Bayesian analysis
  • Sensor topology optimization
  • Uncertainty quantification
  • Value of information

ASJC Scopus subject areas

  • Electronic, Optical and Magnetic Materials
  • Condensed Matter Physics
  • Computer Science Applications
  • Applied Mathematics
  • Electrical and Electronic Engineering

Cite this

Omenzetter, P. (2018). On the value of information for Industry 4.0. In Smart Structures and NDE for Industry 4.0 (Vol. 10602). [1060204] (Proceedings of SPIE). SPIE. https://doi.org/10.1117/12.2294490

On the value of information for Industry 4.0. / Omenzetter, Piotr.

Smart Structures and NDE for Industry 4.0. Vol. 10602 SPIE, 2018. 1060204 (Proceedings of SPIE).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Omenzetter, P 2018, On the value of information for Industry 4.0. in Smart Structures and NDE for Industry 4.0. vol. 10602, 1060204, Proceedings of SPIE, SPIE, Smart Structures and NDE for Industry 4.0 2018, Denver, United States, 5/03/18. https://doi.org/10.1117/12.2294490
Omenzetter P. On the value of information for Industry 4.0. In Smart Structures and NDE for Industry 4.0. Vol. 10602. SPIE. 2018. 1060204. (Proceedings of SPIE). https://doi.org/10.1117/12.2294490
Omenzetter, Piotr. / On the value of information for Industry 4.0. Smart Structures and NDE for Industry 4.0. Vol. 10602 SPIE, 2018. (Proceedings of SPIE).
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