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Key Directions in Changes from Steelworks 3.0 to Steelworks 4.0 with Analysis of Selected Technologies of Digitalizing the Steel Industry in Poland

Key Directions in Changes from Steelworks 3.0 to Steelworks 4.0 with Analysis of Selected... The publication is part of a new trend in popularizing Industry 4.0. The primary objective is to present the key directions in the transformation of the steel industry from steelworks 3.0 to steelworks 4.0. The work was based on a literature review and data analysis on steel 4.0 technologies. The analytical part of the thesis was prepared on the basis of the Polish steel sector (sections from the classification of economic activities: 24 and 25). On the basis of the literature study, a thesis was formulated about the need to digitize processes in enterprises heading for Industry 4.0. The application of selected technologies (ICT) in the Polish steel sector (percentage of companies using the analyzed technologies in the total number of enterprises in the sector) constitutes the scope of the research. Further research will be carried out in the area of digitization development in steel Industry toward steel 4.0. Key words: steelworks 4.0, Industry 4.0, transformation INTRODUCTION The implementation of the fourth generation technology In recent years, the global economy has been dominated requires large financial resources in return for which com- by the development of Industry 4.0, which revolutionizes panies expect economic benefits, e.g. a strong positive ef- the way industry functions in terms of technology. New fect on process efficiency, more efficient interaction be- technologies (innovations) are the basis for building the tween customers and suppliers, product improvements, competitiveness of industries, industries (branches) and substantial reductions in energy demand or related emis- enterprises. There is no clear definition of Industry 4.0 in sions [7, p.13]. Industry 4.0 creates Economy 4.0. Econo- the literature. The development of this concept is carried mies and industries work together. In industry, smart fac- out by innovative technologies, new methods of work or- tories are created that function in intelligent surround- ganization and new ways of business management. Indus- ings. Smart surroundings are created (built, shaped) by try 4.0 uses intelligent machines, computer simulations, many industrial sectors, such as: smart steel production, augmented reality, autonomous robots and other tech- smart energy network, smart cities, smart transport, nologies to design products and implement production smart houses, intelligent healthcare, intelligent/smart processes. Industry 4.0 includes big data analysis, Internet farming, etc. of Things (IoT), cyber security and cloud computing [1, 2, For Industry 4.0 to develop, companies and even entire 3]. Industry 4.0 changes the current perception of produc- industrial sectors must be open to new technologies. The tion processes and the role of human at work. Human par- implemented technological investments in industrial sec- ticipates in the creation and operation of Cyber Physical tors are an area of research. For the successful implemen- Systems [4]. Employees co-create new technologies and tation of the Industry 4.0 concept, it is necessary to ana- are specialists operating in cyberspace [5]. Humans need lyse changes in individual industrial sectors. to acquire digital skills, which are those that facilitate the In this publication, the research area is the development understanding, operation, and management of digital en- of the steel sector in Poland. The topic of Industry 4.0 in vironments. Moreover, human skills have been pointed this sector is being studied by the European Commission out to every level of the H-CPS architecture, i.e., sensa- [8]. The spatial scope of the research is the steel industry tion, cognitive, hard, etc. [6]. in the EU. The Polish steel sector, which is the area of re- B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 47 search in this publication (PKD/Polish Classification of Ac- stages in manufacturing companies. Industry 4.0 is enter- tivities/sections: (24) metal producers and (25) metal ing companies gradually. The investment projects of en- products), is part of the EC research. The main purpose of terprises are implemented in segments (modular) in se- this publication is to present the key directions of devel- lected areas of their activity. The selectivity of implement- opment of the steel industry in Poland. The paper formu- ing technological solutions occurs both in manufacturing lated the following research questions: What are the key companies and in individual industries. There are indus- directions of changes in steelworks transforming to steel- tries where technological progress is realized faster and works 4.0? What is the contribution of digitization to the easier, as well as slow ones. The first group includes indus- development of the steel sector in Poland? With regard to tries such as food, clothing, and household appliances. the transformation process, the thesis was adopted that The second group includes, for example, metallurgy, min- the digitization of the steel sector (IC Technologies) is an ing, fuel and energy industries. The ways of implementing important component of the transformation of steel pro- Industry 4.0 in enterprises have not yet been described in ducers and steel products to Steel Industry 4.0. Research a comprehensive and concise manner. The implementa- questions were answered through a literature review and tion of Industry 4.0 in companies requires changes in both sector analysis. strategy and business operations. According to Cellary [16] 4.0 technologies used in factories will create cooper- INDUSTRY 4.0 IN ECONOMIES AND BUSINESS – LITERA- ation chains between factories (intelligent or not) and will TURE REVIEW produce intelligent products and digital services for cus- The technologies of industries are changing in the global- tomers in intelligent environments. A significant challenge ization of economies and the development of electronics for smart factories is the creation of cyber-physical sys- and ICT. Electronic economy means the implementation tems with high autonomy (self-reliance). Cyber-Physical of economic processes using digitization within enter- Systems (CPSs) are integrations of computation, network- prises and between: Business and Business (B2B), Busi- ing, and physical processes. Embedded computers and ness and Customers (B2C), Customers and Customers networks monitor and control the physical processes, (C2C) and business to human (B2H). Teleinformatization with feedback loops where physical processes affect com- covers telecommunications and IT infrastructure. The In- putations and vice versa CPS integrates the dynamics of ternet and information technologies are changing busi- the physical processes with those of the software and net- ness in many areas, including: production, purchasing, de- working, providing abstractions and modeling, design, livery, servicing, communication, marketing and coopera- and analysis techniques for the integrated whole [17, 18, tion. Enterprises in Industry 4.0 are looking for authentic- 19]. ity, emphasize their individuality and innovation. Mobile Built systems (CPSs) with full automation and robots re- technologies are becoming the link between the tradi- place human work (manual activities of employees). Sys- tional world, mobile networks and the Internet. Modern tems are well suited to the global, interconnected real- information technologies facilitate the establishment of time economy. Modern technologies and machines are new business relationships and the creation of new busi- based on artificial intelligence and machine learning. Such ness models [9, 10]. The era of digital economy and ICT technologies allow to precisely control production, take technologies (the development of Industry 4.0 is also in- care of its quality, improve safety in the workplace, and fluenced by 5G technologies [11]) influence the shape of rationally manage resources [20]. Human collaborates global relations, competitive advantage and shape new with CPS (and he is a part of the systems) - currently, the opportunities for development and cooperation in the right balance is being sought between autonomous and global space [12]. self-organizing cyber-physical systems and the role of Industry 4.0 appeared in 2011 and has a strong influence people (employees) in these systems (Industry 5.0) [21]. on the shape of industry in Europe and the world. Industry The transformation of companies to CPS will require a sig- 40 is becoming more and more popular. Industry 4.0 in- nificant change in employee skills, organizational struc- troduces leading IT solutions in many areas of production, tures, leadership mechanisms and corporate culture. To enables the creation of personalized products and the cre- keep up with the pace of the technological revolution, em- ation of new structures of connections in value chains. ployers should completely change organizational struc- New forms of factories called smart appear in Industry tures, create talent management systems and use human 4.0. Factories test the latest technologies to create value resource management strategies embedded in the corpo- for 4.0 customers with their participation, e.g. the cus- rate strategy [22]. Human is located in the CPS. Romero et tomer participates in product design [13]. al. (2015) [23] and (2016) [24] emphasize the need for a In McKinsey Company report [14] provides examples of symbiosis between man and new technologies. These au- the forms of organization. The implementation of Industry thors proposed the introduction of the human factor into 4.0 technologies contributes to the creation of: smart-au- cyber-physical systems. The new system construction was tomated and robotized plants, digital mass-individualiza- called the Human Cyber-Physical System (H-CPS). tion factories called also customer-centric plants, e-plans Knowledge and creativity will remain the exclusive do- in a box, mobile modular factories or hand made with dig- main of humanity. According to Wolter et al. [25] econ- ital touch. Gajdzik et al. [15] emphasize that the imple- omy 4.0 requires workers with skills: systemic thinking, mentation of Industry 4.0 technology is carried out in reasoning and creativity. Only such people, combining 48 Management Systems in Production Engineering 2022, Volume 30, Issue 1 economic and managerial knowledge with IT technical question is: “Where can digitalization help the steel- knowledge, will be able to cooperate with computer sys- works achieve the above mentioned goals better – in tems and robots controlled by artificial intelligence in con- a more sustainable and value adding way? ” Plant op- ditions of dispersion, diversity and uncertainty [25]. Per- erators often first think of what is referred to as the sonal predispositions (skills of workers) and organiza- “smart steel factory”, which would be able to produce tional culture must be re-analyzed in the light of the re- steel intelligently and largely autonomously. The quirements of new skills and the need to attract and main- smart factory is characterized by the networking of ac- tain adequate human capital in smart factories [26]. tivities performed by man and ma chine in dynamic As indicated by V. Terziyan, S. Gryshko and M. Golovianko production processes which will optimize themselves (2018) [27] the era of Industry 4.0 has started. Industry 4.0 in real time taking into account the complete value is an opportunity for a vision of the company's function- chain. Digital technologies and Big Data with Cloud Com- ing, product production, service provision, asset manage- puting enable steel mills to build cyber-physical systems. ment, business, talent management and HR (Human Rela- Digitization is considered to be a prerequisite for the steel tions). A.C. Pereira and F. Romero (2017) [28, p.1213] add transformation into Industry 4.0 [30]. From the beginning that the implementation of Industry 4.0 technology in of the 90s, intensive projects of digitization of the steel companies will create a new value chain, improve produc- industry were implemented in many countries around the tion and engineering processes, improve the quality of world. Gajdzik and Wolniak [31, 32] in their papers pre- products and services, optimize relations between cus- sented cases studies about digitalization in steel industry. tomers and organizations, transform the current work en- Here's what they found [31, 32]: vironment in a cyber-physical environment. The results of − the beginning of the intensive digitization of the steel all these are economic benefits in the areas of: productiv- industry in the world begins in the 1990s, in Poland it ity, quality, precision (accuracy), personalization, intensi- begins at the beginning of the second decade of this fication, optimization etc. century, the Polish steel industry is gradually imple- In companies where the end product is, for example, elec- menting digital technologies in production processes tricity, chemicals or fuels, you gain more control over the (the increasing polarization of the Industry 4.0 concept processes and increase energy efficiency. In the case of makes it easier for steel mills to implement high tech- discrete and hybrid production, e.g. car production, food nologies), there are segmental (in various areas of ac- & beverage, the changes allow for better adaptation of tivity) investment projects for digital technologies products to individual customer needs (personalization) (cases studies: ArcelorMittal, Thyssenkrupp, Tata Steel and shortening of delivery times, thanks to flexible adjust- Group), ment of production scale in factories located in different − digital technologies in steel mills monitor the work of countries of the world [29]. Industry 4.0 is a concept that selected production sections and/or support basic has been functioning in the economic space only since technological devices (control parameters, control the 2011 and there will be measurable effects in enterprises operation of machines) the largest (key) processes and in 2030 (researchers' predictions, e.g. Neef, predictions technologies, e.g. a blast furnace is supervised and for the steel industry) [7]. Changes are determined by the controlled using IT systems, devices in steel plants and degree of development of economies and industries in in- in rolling mills are equipped with sensors that provide dividual countries. Nevertheless, the adaptation of enter- data on the course of the process and facilitate their prises to the new requirements of the fourth industrial control, technologies with sensors create production revolution is necessary. There is no turning back from the networks, e.g. Blast Furnace Network and improve transformation that has begun. maintenance (TPM) [33], − mills use key (basic) IC process support systems, the KEY DIRECTIONS FOR INDUSTRY 4.0 IN THE STEEL SEC- popular ones include Enterprise Resource Planning TOR (ERP), Manufacturing Execution System (MES), Transformation of the steelworks into Industry 4.0 Customer Relationship Management (CRM), key Steel mills are increasingly using Industry 4.0 technologies systems: ERP and MES, provide data on the operation to improve steel production. Industry 4.0 technologies of machines, products and production systems have more advanced functions than traditional technolo- creating an image (maps) of the connection systems gies. One of the most important features of Industry 4.0 inside the steelworks, technology is production optimization. In the steel sector, − IC systems, such as: ERP, CAx, documentation manage- Industry 4.0 technologies are used to implement key pro- ment, project management, production planning and cesses, e.g. pig iron and steel production, rolling, loading scheduling, Business Intelligence (data analysis and re- handling. “Industrie 4.0”, digitalization, Internet of porting), or comprehensive SAP and other solutions Things and cloud computing are topics dominating are integrated into the integrated IT and computer en- current discussions and strategies in steel industry. vironment of steel companies, For years, steelworks has developed strategies of dig- − collaborative networks are created within strong italization. Digitalization is not new but now (it was re- capital groups and between steel producers and steel alized in third industrial revolution) but now the key user markets (e.g. cooperation in building cyberspace between the steel sector and the automotive sector), B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 49 particular gropus are participants of knowledge for In addition to environmental challenges, a significant chal- develoment of value chain in the sector (e.g. according lenge of Industry 4.0 technology for the steel sector is the to SECI model) [34, 35, 36]; improvement of work safety in steel mills. Work in steel mills is classified (in Polish law) as difficult. Accidents at − digital technologies (e.g. IoT) enable steel mills to re- work are strongly related to hard working conditions (high duce indirect links (the interactive nature of relations, e.g. with consumers and contractors (the basic in- temperature, dust, gases) [46]. Work accidents in this sec- strument of Supply Chain Management, for exam- tor are caused by extremely difficult and demanding working conditions. Very high temperature, noise or dust. ple, is the consistent mapping of the production Analyzing the period from 2009 to 2018, the authors and material flows and the complete order han- found that the number of people injured in accide nts dling process, including the customer order, the manufacturing order and the suppliers). in the steel sector was 967 injured per year [47]. Apart The process of transforming steel mills into Industry 4.0 from the causes not controlled by humans (explosion, fire, ignition of materials), there are technical reasons (defect must be consistent with the conditions of the steel indus- of the material factor and poor state of security) and hu- try. IoT and new technologies, through dynamic configu- man (disregarding the hazard, insufficient concentration ration of production processes, are conducive to meeting the key principles of sustainable production [37]. Sustain- of attention, improper use of limbs in the danger zone, able steel production is a key strategic goal for the steel surprise by an unexpected event, improper working meth- ods, non-compliance with health and safety regulations, sector. The green economy is strongly related to the pro- failure to use safety footwear by the employee, perform- duction of steel. In the process of transforming the steel sector (steelworks) into Industry 4.0, a balance must be ing activities without removing the risk, other (e.g. care- strike between the technologies and their environmental lessness, trips) [48, 49]. Workers in the following positions impacts. Ecological aspects in the steel sector have been are particularly exposed: welders, rolling mills, and foundry workers [48, 49]. Modern technology is increas- and are a priority for the development of this industry [38, ingly replacing employees in conditions that are difficult 39]. Metallurgical investments receive support from Best Available Technology (BAT) . The key measures of the for their health. Employees do not have to work in a haz- smelters' environmental impact are: dust and gas emis- ardous work environment – in such an environment, inde- pendent robots work. Industry 4.0 technologies can con- sions, wastewater discharges and solid waste. The inter- tribute to reducing the accident rate, if they are applied actions of the steelworks with the environment are con- where working conditions are particularly dangerous for ditioned by the strength of the negative and positive im- pact of the steelworks on the environment [40, 41]. In- humans or if it helps to control human work and produc- vestments made in recent years have reduced the ardu- tion processes (process optimization), reducing the risk of accidents through information functions, blocking incor- ousness of the steel industry. Technological innovation is rect activities human or even stopping processes to pre- woven into sustainability [42]. vent failures, etc. [50]. The modern technology of Industry Steel production is very energy-intensive, hence one of the key ecological aspects and, at the same time, chal- 4.0 is intertwined with building a culture of work safety in lenges for Industry 4.0 technology is energy intensity. Gaj- steel 4.0 [51]. Based on the above, it can be concluded that digitization, dzik and Sroka [43], and Wolniak et. al. [44] present mod- sustainability and security are key components of the els of energy intensity in relations to investment in Polish transformation of steel mills to Industry 4.0. I call these steel industry. The conclusion from the presented models is as follows: technological investments (in the transfor- dependencies the triad of transformation from steelwork mation process from steelwork 3.0 to steelworks 4.0) re- 3.0 to steel works 4.0 (Fig. 1). duce the energy intensity in steel production. In the pur- suit of the steel sector towards Industry 4.0, sustainable development projects are implemented, such as: Circular Economy (CE), Carbon Direct Avoidance (CDA) – based metallurgy and electricity-based metallurgy; Smart Car- bon Usage (SCU) with Process Integration and Carbon Val- orisation/CCU; Carbon Capture and Storage CCS (not in- cluded in SCU, CDA or CE). Among the indicated projects, two centers on the Polish steel market are of major im- Fig. 1 The triad of transformation from steelworks 3.0 to steel- portance for the implementation of projects. The first is works 4.0 located in Dąbrowa Górnicza DG – ArcelorMittal Poland, the second in Ostrowiec Świętokrzyski – Celsa Huta Os- Selected solutions in the transforming of steelworks into trowiec. These two mills are the beneficiaries of the pro- Industry 4.0 jects, respectively: Dabrowa Górnicza: DG CDA, Ostrowiec Along with successive industrial revolutions, steel mills Świętokrzyski: Energy Efficient EAF, PSWD, Renevable En- reach new levels of development. There is no universal ergy (Source: Eurofer, 2021) [45]. procedure for implementing Industry 4.0 technology in BAT – the name from a document of EU about IPPC 50 Management Systems in Production Engineering 2022, Volume 30, Issue 1 the steel sector. Currently, mills are at the 3.0 level of de- transforming to Industry 4.0 (Table 1). Digital technologies velopment with elements of smart technology. Quoting and IC systems (e.g. ERP, MES) integrate production pro- from Neef et al. [7] the changes in steel mills in the pursuit cesses with other activities in steel plants. According to of Industry 4.0 are stretched over time and it takes an- Govender et al. [53] digital technologies create the frame- other decade to be strongly visualized in the steel indus- works in steel industry. Neef et al. [7] presents the key di- try. Changes are introduced modularly. The road of steel rections of changes, which are also dominated by digitiza- mills to Industry 4.0 is in line with the adopted policy for tion and automation. Each of these publications empha- the development of the steel sector in the EU until 2030. sizes the gradation of changes and the importance of dig- The transformation of steel mills to Industry 4.0 begins itization in the transformation of the steel industry to the with digitization. Quoting from Peters (2017) [30] “Digital- level of Industry 4.0. Examples of technological solutions isation is a pre-condition for Industry 4.0, but Industry 4.0 used in steel mills proposed by the authors (Peters, Neef is much more than digitalisation!” Peters [30, 52] gives ex- et al., Govender et al.) are presented in Table 1. amples of technological solutions for the steel sector Table 1 Toward smart steel industry – a concept of technological solutions Peters [30, 52] − toward CPS: examples of possible cyber-physical systems in steel industry: plant component, product, production plant; − integration of systems, from inside to outside: more integration of systems (CPS) outside steel company than inside; − end-to-end engineering level I and II with digital twin in metallurgical processes; − vertical integration/automation pyramide with IoT (from fields in processes in steel production until the level of the company); − networked production with forms: o single plant as Cyber Physical Production System (CPPS), o intensive networking and communication of all plants, o „Intelligent“ product with knowledge of its own quality and production history, o de-central instead of central solutions and self-organisation, − examples of solutions: Big/Smart Data in steel industry: high resolution and synchronised data, transi- tion to more-dimensional data („spatial“) instead only 1D, integration of text data, video-/audio- streams, data with gaps (unstructured), fast processing and „online“-usage of results; − possible application areas of digital and smart technologies: o decision support regarding quality control, o smart control of process chain (through-process automation), o smart evaluation of large amounts of data, o re-scheduling of materials, o smart assistance systems, o smart (predictive) maintenance. Govender et al.[53] − fully integrated manufacturing and business system for real-time decision making; − data flow between the production operations such as Manufacturing Execution System (MES) and busi- ness systems as an example the Enterprise Resource Planning (ERP); − possible application areas of digital and smart technologies: o visibility of operations, o planning and scheduling, o lead times, o quality management, o machine health, maintenance planning, etc. − analysis of data according to SDLC (Systems Development Life Cycle), − key technologies and solutions of Industry 4.0 in steelworks: o Cyber-Physical Systems (CPS), o Internet of Things (IoT), o Industrial Internet of Things (IIoT), o Big Data. Neef et al. [7] − key directions of changes: digitalization and automation: e.g. add sensors or data-driven process con- trol; − two levels of changes: strategic and operational (technologies of Industry 4.0 are a part of strategical plans in steelworks), − cooperating with external partners during implementing of digital and smart technologies in steelworks; − forms of changes: phasing (modularity), sequencing of changes in steelworks; − “downstream” production areas: o rolling and coating/finishing in the technical domain, o the interaction with customers in the organizational domain. − a focus on economic benefits during implantation of new technologies of Industry 4.0. B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 51 Analyses of selected IC technologies using in the steel in- ▪ data generated by social media (e.g. by social net- dustry works, blogs, websites used to exchange multime- The use of IC technology in steel industry was presented dia information), on the basis of statistical data. The scope of the analysis ▪ other sources (e.g., transactional data, open data); covered producers of metals and finished metal products machine learning; processing or natural language (according to PKD: section 24 and section 25). The data generation (NLP, NLG); published by the Central Statistical Office [54] was used − 8.8% of manufacturers use 3D printing to: create pro- for the analysis. The scope of the analysis covered annual totypes or models for sale, create prototypes or mod- data (prepared for 2019). The following tables were used: els for their own use, create goods for sale, excluding − enterprises using different types of internet connec- prototypes or models (e.g. molds, tools, parts, semi- tions in 2019; finished products, etc.), create goods used in the pro- − enterprises purchasing cloud services in 2019; duction process excluding prototypes or models (e.g. molds, tools, parts, semi-finished products, etc.); − enterprises conducting data analysis, the so-called big data in 2019; − 23.17% of producers in steel industry use robots, in- cluding: 19.46% use industrial robots; examples of ap- − enterprises using 3D printing in their activities in 2019; plication areas: − enterprises using robots in their activities in 2019; ▪ for protection, observation, supervision, e.g. with − enterprises applying ICT security measures in 2019. the use of autonomous drones, In 2019, 5,715 enterprises were registered in the analyzed ▪ transport of people or objects, e.g. with the use of sectors (enterprises operating in total accounted for 100% autonomous vehicles, in the analysis). The results of the analysis are presented ▪ for cleaning or garbage collection, in Fig. 2. ▪ for work in the warehouse, e.g. stacking pallets, ▪ for assembly work, ▪ about customer service, ▪ assembling the structure or repairing damage. − 85.65% of enterprises applying ICT security measures: examples of activity: ▪ strong password authentication, ▪ ongoing software updates, ▪ biometric user identification and authentication, data, document and e-mail encryption, Fig. 2 In steel Industry in Poland ▪ data backup and transfer to other locations, Source: based on data from GUS for 2019. ▪ enterprise network access control, ▪ use of VPN connections, Conclusions from the analysis: ▪ storing logs for analysis after an incident related to − In 2019, 96.87% of producers of metals and finished ICT security, metal products had access to broadband Internet out ▪ ICT risk assessment, of 5,715 companies. Companies use the Internet ▪ performing ICT security tests, through DSL or other fixed broadband connections ▪ conducting information system security audits. (e.g. cable TV network, fiber optic network); mills also use the mobile form of the Internet via mobile devices CONCLUSIONS – cellular telephone networks. All industrial revolutions have common features that dis- − Out of 96.87% of producers of metals and finished tinguish them by technical changes. The third industrial metal products with access to the Internet (broad- revolution starts with ICT and the fourth one creates band), 15.99% buy cloud services, including the most smart technologies. Revolution 4.0 is associated with a popular forms: change in the approach to production from the analysis of ▪ e-mail services (11.33%), the conditions for the development of Industry 4.0 (fac- ▪ office software is purchased through the cloud tors influencing the development of Industry 4.0 technol- (9.5%), ogy) to technological investments changing the existing ▪ storing files (documents) in the cloud (8.12%). forms of production organization towards CPS. Steel- − 5.1% of enterprises in sectors 24 and 25 will create Big works with digital and smart technologies (over time) will Data centers in the areas of: become smart steelworks, and their cooperation with ▪ communication between devices (M2M ma- other companies in the chain will create a smart value chines), digital sensors, RFID tags etc., chain. Entering the era of the fourth industrial revolution ▪ acquired geolocation data from mobile devices is a challenge for the Polish steel industry. Scientific re- (e.g. from mobile devices using cellular telecom- search and statistical data confirm that intensified activi- munications networks, from wireless connections ties for the development of the Industry 4.0 concept are or GPS), already being taken in steel mills. When analyzing the data on ICT in Polish steel industry, it can be noticed that there 52 Management Systems in Production Engineering 2022, Volume 30, Issue 1 [14] Mc Kinsey, Industry 4.0 How to navigate digitization of are already companies implementing the Industry 4.0 the manufacturing sector. 2015. Retrivered from: concept and, most importantly, they are starting to take http://www.forschungsnetzwerk.at/downloadpub/mck_i specific actions (the examples of technological solutions ndustry_40_report.pdf. 2015 in the paper cited above). [15] B. Gajdzik, S. Grabowska, S. 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Machnik-Słomka, W. biorstwach_2020.xlsx Ocieczek, “Environmental aspects of innovation and new technology implementation in metallurgy industry”, Metalurgija, Vol. 54 (2015) 2, pp. 433-436, Apr-Jun 2015. Bożena Gajdzik ORCID ID: 0000-0002-0408-1691 Silesian University of Technology Faculty of Materials Engineering ul. Krasińskiego 8, 40-019 Katowice, Poland e-mail: bozena.gajdzik@polsl.pl http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Systems in Production Engineering de Gruyter

Key Directions in Changes from Steelworks 3.0 to Steelworks 4.0 with Analysis of Selected Technologies of Digitalizing the Steel Industry in Poland

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de Gruyter
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© 2022 Bożena Gajdzik, published by Sciendo
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2450-5781
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Abstract

The publication is part of a new trend in popularizing Industry 4.0. The primary objective is to present the key directions in the transformation of the steel industry from steelworks 3.0 to steelworks 4.0. The work was based on a literature review and data analysis on steel 4.0 technologies. The analytical part of the thesis was prepared on the basis of the Polish steel sector (sections from the classification of economic activities: 24 and 25). On the basis of the literature study, a thesis was formulated about the need to digitize processes in enterprises heading for Industry 4.0. The application of selected technologies (ICT) in the Polish steel sector (percentage of companies using the analyzed technologies in the total number of enterprises in the sector) constitutes the scope of the research. Further research will be carried out in the area of digitization development in steel Industry toward steel 4.0. Key words: steelworks 4.0, Industry 4.0, transformation INTRODUCTION The implementation of the fourth generation technology In recent years, the global economy has been dominated requires large financial resources in return for which com- by the development of Industry 4.0, which revolutionizes panies expect economic benefits, e.g. a strong positive ef- the way industry functions in terms of technology. New fect on process efficiency, more efficient interaction be- technologies (innovations) are the basis for building the tween customers and suppliers, product improvements, competitiveness of industries, industries (branches) and substantial reductions in energy demand or related emis- enterprises. There is no clear definition of Industry 4.0 in sions [7, p.13]. Industry 4.0 creates Economy 4.0. Econo- the literature. The development of this concept is carried mies and industries work together. In industry, smart fac- out by innovative technologies, new methods of work or- tories are created that function in intelligent surround- ganization and new ways of business management. Indus- ings. Smart surroundings are created (built, shaped) by try 4.0 uses intelligent machines, computer simulations, many industrial sectors, such as: smart steel production, augmented reality, autonomous robots and other tech- smart energy network, smart cities, smart transport, nologies to design products and implement production smart houses, intelligent healthcare, intelligent/smart processes. Industry 4.0 includes big data analysis, Internet farming, etc. of Things (IoT), cyber security and cloud computing [1, 2, For Industry 4.0 to develop, companies and even entire 3]. Industry 4.0 changes the current perception of produc- industrial sectors must be open to new technologies. The tion processes and the role of human at work. Human par- implemented technological investments in industrial sec- ticipates in the creation and operation of Cyber Physical tors are an area of research. For the successful implemen- Systems [4]. Employees co-create new technologies and tation of the Industry 4.0 concept, it is necessary to ana- are specialists operating in cyberspace [5]. Humans need lyse changes in individual industrial sectors. to acquire digital skills, which are those that facilitate the In this publication, the research area is the development understanding, operation, and management of digital en- of the steel sector in Poland. The topic of Industry 4.0 in vironments. Moreover, human skills have been pointed this sector is being studied by the European Commission out to every level of the H-CPS architecture, i.e., sensa- [8]. The spatial scope of the research is the steel industry tion, cognitive, hard, etc. [6]. in the EU. The Polish steel sector, which is the area of re- B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 47 search in this publication (PKD/Polish Classification of Ac- stages in manufacturing companies. Industry 4.0 is enter- tivities/sections: (24) metal producers and (25) metal ing companies gradually. The investment projects of en- products), is part of the EC research. The main purpose of terprises are implemented in segments (modular) in se- this publication is to present the key directions of devel- lected areas of their activity. The selectivity of implement- opment of the steel industry in Poland. The paper formu- ing technological solutions occurs both in manufacturing lated the following research questions: What are the key companies and in individual industries. There are indus- directions of changes in steelworks transforming to steel- tries where technological progress is realized faster and works 4.0? What is the contribution of digitization to the easier, as well as slow ones. The first group includes indus- development of the steel sector in Poland? With regard to tries such as food, clothing, and household appliances. the transformation process, the thesis was adopted that The second group includes, for example, metallurgy, min- the digitization of the steel sector (IC Technologies) is an ing, fuel and energy industries. The ways of implementing important component of the transformation of steel pro- Industry 4.0 in enterprises have not yet been described in ducers and steel products to Steel Industry 4.0. Research a comprehensive and concise manner. The implementa- questions were answered through a literature review and tion of Industry 4.0 in companies requires changes in both sector analysis. strategy and business operations. According to Cellary [16] 4.0 technologies used in factories will create cooper- INDUSTRY 4.0 IN ECONOMIES AND BUSINESS – LITERA- ation chains between factories (intelligent or not) and will TURE REVIEW produce intelligent products and digital services for cus- The technologies of industries are changing in the global- tomers in intelligent environments. A significant challenge ization of economies and the development of electronics for smart factories is the creation of cyber-physical sys- and ICT. Electronic economy means the implementation tems with high autonomy (self-reliance). Cyber-Physical of economic processes using digitization within enter- Systems (CPSs) are integrations of computation, network- prises and between: Business and Business (B2B), Busi- ing, and physical processes. Embedded computers and ness and Customers (B2C), Customers and Customers networks monitor and control the physical processes, (C2C) and business to human (B2H). Teleinformatization with feedback loops where physical processes affect com- covers telecommunications and IT infrastructure. The In- putations and vice versa CPS integrates the dynamics of ternet and information technologies are changing busi- the physical processes with those of the software and net- ness in many areas, including: production, purchasing, de- working, providing abstractions and modeling, design, livery, servicing, communication, marketing and coopera- and analysis techniques for the integrated whole [17, 18, tion. Enterprises in Industry 4.0 are looking for authentic- 19]. ity, emphasize their individuality and innovation. Mobile Built systems (CPSs) with full automation and robots re- technologies are becoming the link between the tradi- place human work (manual activities of employees). Sys- tional world, mobile networks and the Internet. Modern tems are well suited to the global, interconnected real- information technologies facilitate the establishment of time economy. Modern technologies and machines are new business relationships and the creation of new busi- based on artificial intelligence and machine learning. Such ness models [9, 10]. The era of digital economy and ICT technologies allow to precisely control production, take technologies (the development of Industry 4.0 is also in- care of its quality, improve safety in the workplace, and fluenced by 5G technologies [11]) influence the shape of rationally manage resources [20]. Human collaborates global relations, competitive advantage and shape new with CPS (and he is a part of the systems) - currently, the opportunities for development and cooperation in the right balance is being sought between autonomous and global space [12]. self-organizing cyber-physical systems and the role of Industry 4.0 appeared in 2011 and has a strong influence people (employees) in these systems (Industry 5.0) [21]. on the shape of industry in Europe and the world. Industry The transformation of companies to CPS will require a sig- 40 is becoming more and more popular. Industry 4.0 in- nificant change in employee skills, organizational struc- troduces leading IT solutions in many areas of production, tures, leadership mechanisms and corporate culture. To enables the creation of personalized products and the cre- keep up with the pace of the technological revolution, em- ation of new structures of connections in value chains. ployers should completely change organizational struc- New forms of factories called smart appear in Industry tures, create talent management systems and use human 4.0. Factories test the latest technologies to create value resource management strategies embedded in the corpo- for 4.0 customers with their participation, e.g. the cus- rate strategy [22]. Human is located in the CPS. Romero et tomer participates in product design [13]. al. (2015) [23] and (2016) [24] emphasize the need for a In McKinsey Company report [14] provides examples of symbiosis between man and new technologies. These au- the forms of organization. The implementation of Industry thors proposed the introduction of the human factor into 4.0 technologies contributes to the creation of: smart-au- cyber-physical systems. The new system construction was tomated and robotized plants, digital mass-individualiza- called the Human Cyber-Physical System (H-CPS). tion factories called also customer-centric plants, e-plans Knowledge and creativity will remain the exclusive do- in a box, mobile modular factories or hand made with dig- main of humanity. According to Wolter et al. [25] econ- ital touch. Gajdzik et al. [15] emphasize that the imple- omy 4.0 requires workers with skills: systemic thinking, mentation of Industry 4.0 technology is carried out in reasoning and creativity. Only such people, combining 48 Management Systems in Production Engineering 2022, Volume 30, Issue 1 economic and managerial knowledge with IT technical question is: “Where can digitalization help the steel- knowledge, will be able to cooperate with computer sys- works achieve the above mentioned goals better – in tems and robots controlled by artificial intelligence in con- a more sustainable and value adding way? ” Plant op- ditions of dispersion, diversity and uncertainty [25]. Per- erators often first think of what is referred to as the sonal predispositions (skills of workers) and organiza- “smart steel factory”, which would be able to produce tional culture must be re-analyzed in the light of the re- steel intelligently and largely autonomously. The quirements of new skills and the need to attract and main- smart factory is characterized by the networking of ac- tain adequate human capital in smart factories [26]. tivities performed by man and ma chine in dynamic As indicated by V. Terziyan, S. Gryshko and M. Golovianko production processes which will optimize themselves (2018) [27] the era of Industry 4.0 has started. Industry 4.0 in real time taking into account the complete value is an opportunity for a vision of the company's function- chain. Digital technologies and Big Data with Cloud Com- ing, product production, service provision, asset manage- puting enable steel mills to build cyber-physical systems. ment, business, talent management and HR (Human Rela- Digitization is considered to be a prerequisite for the steel tions). A.C. Pereira and F. Romero (2017) [28, p.1213] add transformation into Industry 4.0 [30]. From the beginning that the implementation of Industry 4.0 technology in of the 90s, intensive projects of digitization of the steel companies will create a new value chain, improve produc- industry were implemented in many countries around the tion and engineering processes, improve the quality of world. Gajdzik and Wolniak [31, 32] in their papers pre- products and services, optimize relations between cus- sented cases studies about digitalization in steel industry. tomers and organizations, transform the current work en- Here's what they found [31, 32]: vironment in a cyber-physical environment. The results of − the beginning of the intensive digitization of the steel all these are economic benefits in the areas of: productiv- industry in the world begins in the 1990s, in Poland it ity, quality, precision (accuracy), personalization, intensi- begins at the beginning of the second decade of this fication, optimization etc. century, the Polish steel industry is gradually imple- In companies where the end product is, for example, elec- menting digital technologies in production processes tricity, chemicals or fuels, you gain more control over the (the increasing polarization of the Industry 4.0 concept processes and increase energy efficiency. In the case of makes it easier for steel mills to implement high tech- discrete and hybrid production, e.g. car production, food nologies), there are segmental (in various areas of ac- & beverage, the changes allow for better adaptation of tivity) investment projects for digital technologies products to individual customer needs (personalization) (cases studies: ArcelorMittal, Thyssenkrupp, Tata Steel and shortening of delivery times, thanks to flexible adjust- Group), ment of production scale in factories located in different − digital technologies in steel mills monitor the work of countries of the world [29]. Industry 4.0 is a concept that selected production sections and/or support basic has been functioning in the economic space only since technological devices (control parameters, control the 2011 and there will be measurable effects in enterprises operation of machines) the largest (key) processes and in 2030 (researchers' predictions, e.g. Neef, predictions technologies, e.g. a blast furnace is supervised and for the steel industry) [7]. Changes are determined by the controlled using IT systems, devices in steel plants and degree of development of economies and industries in in- in rolling mills are equipped with sensors that provide dividual countries. Nevertheless, the adaptation of enter- data on the course of the process and facilitate their prises to the new requirements of the fourth industrial control, technologies with sensors create production revolution is necessary. There is no turning back from the networks, e.g. Blast Furnace Network and improve transformation that has begun. maintenance (TPM) [33], − mills use key (basic) IC process support systems, the KEY DIRECTIONS FOR INDUSTRY 4.0 IN THE STEEL SEC- popular ones include Enterprise Resource Planning TOR (ERP), Manufacturing Execution System (MES), Transformation of the steelworks into Industry 4.0 Customer Relationship Management (CRM), key Steel mills are increasingly using Industry 4.0 technologies systems: ERP and MES, provide data on the operation to improve steel production. Industry 4.0 technologies of machines, products and production systems have more advanced functions than traditional technolo- creating an image (maps) of the connection systems gies. One of the most important features of Industry 4.0 inside the steelworks, technology is production optimization. In the steel sector, − IC systems, such as: ERP, CAx, documentation manage- Industry 4.0 technologies are used to implement key pro- ment, project management, production planning and cesses, e.g. pig iron and steel production, rolling, loading scheduling, Business Intelligence (data analysis and re- handling. “Industrie 4.0”, digitalization, Internet of porting), or comprehensive SAP and other solutions Things and cloud computing are topics dominating are integrated into the integrated IT and computer en- current discussions and strategies in steel industry. vironment of steel companies, For years, steelworks has developed strategies of dig- − collaborative networks are created within strong italization. Digitalization is not new but now (it was re- capital groups and between steel producers and steel alized in third industrial revolution) but now the key user markets (e.g. cooperation in building cyberspace between the steel sector and the automotive sector), B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 49 particular gropus are participants of knowledge for In addition to environmental challenges, a significant chal- develoment of value chain in the sector (e.g. according lenge of Industry 4.0 technology for the steel sector is the to SECI model) [34, 35, 36]; improvement of work safety in steel mills. Work in steel mills is classified (in Polish law) as difficult. Accidents at − digital technologies (e.g. IoT) enable steel mills to re- work are strongly related to hard working conditions (high duce indirect links (the interactive nature of relations, e.g. with consumers and contractors (the basic in- temperature, dust, gases) [46]. Work accidents in this sec- strument of Supply Chain Management, for exam- tor are caused by extremely difficult and demanding working conditions. Very high temperature, noise or dust. ple, is the consistent mapping of the production Analyzing the period from 2009 to 2018, the authors and material flows and the complete order han- found that the number of people injured in accide nts dling process, including the customer order, the manufacturing order and the suppliers). in the steel sector was 967 injured per year [47]. Apart The process of transforming steel mills into Industry 4.0 from the causes not controlled by humans (explosion, fire, ignition of materials), there are technical reasons (defect must be consistent with the conditions of the steel indus- of the material factor and poor state of security) and hu- try. IoT and new technologies, through dynamic configu- man (disregarding the hazard, insufficient concentration ration of production processes, are conducive to meeting the key principles of sustainable production [37]. Sustain- of attention, improper use of limbs in the danger zone, able steel production is a key strategic goal for the steel surprise by an unexpected event, improper working meth- ods, non-compliance with health and safety regulations, sector. The green economy is strongly related to the pro- failure to use safety footwear by the employee, perform- duction of steel. In the process of transforming the steel sector (steelworks) into Industry 4.0, a balance must be ing activities without removing the risk, other (e.g. care- strike between the technologies and their environmental lessness, trips) [48, 49]. Workers in the following positions impacts. Ecological aspects in the steel sector have been are particularly exposed: welders, rolling mills, and foundry workers [48, 49]. Modern technology is increas- and are a priority for the development of this industry [38, ingly replacing employees in conditions that are difficult 39]. Metallurgical investments receive support from Best Available Technology (BAT) . The key measures of the for their health. Employees do not have to work in a haz- smelters' environmental impact are: dust and gas emis- ardous work environment – in such an environment, inde- pendent robots work. Industry 4.0 technologies can con- sions, wastewater discharges and solid waste. The inter- tribute to reducing the accident rate, if they are applied actions of the steelworks with the environment are con- where working conditions are particularly dangerous for ditioned by the strength of the negative and positive im- pact of the steelworks on the environment [40, 41]. In- humans or if it helps to control human work and produc- vestments made in recent years have reduced the ardu- tion processes (process optimization), reducing the risk of accidents through information functions, blocking incor- ousness of the steel industry. Technological innovation is rect activities human or even stopping processes to pre- woven into sustainability [42]. vent failures, etc. [50]. The modern technology of Industry Steel production is very energy-intensive, hence one of the key ecological aspects and, at the same time, chal- 4.0 is intertwined with building a culture of work safety in lenges for Industry 4.0 technology is energy intensity. Gaj- steel 4.0 [51]. Based on the above, it can be concluded that digitization, dzik and Sroka [43], and Wolniak et. al. [44] present mod- sustainability and security are key components of the els of energy intensity in relations to investment in Polish transformation of steel mills to Industry 4.0. I call these steel industry. The conclusion from the presented models is as follows: technological investments (in the transfor- dependencies the triad of transformation from steelwork mation process from steelwork 3.0 to steelworks 4.0) re- 3.0 to steel works 4.0 (Fig. 1). duce the energy intensity in steel production. In the pur- suit of the steel sector towards Industry 4.0, sustainable development projects are implemented, such as: Circular Economy (CE), Carbon Direct Avoidance (CDA) – based metallurgy and electricity-based metallurgy; Smart Car- bon Usage (SCU) with Process Integration and Carbon Val- orisation/CCU; Carbon Capture and Storage CCS (not in- cluded in SCU, CDA or CE). Among the indicated projects, two centers on the Polish steel market are of major im- Fig. 1 The triad of transformation from steelworks 3.0 to steel- portance for the implementation of projects. The first is works 4.0 located in Dąbrowa Górnicza DG – ArcelorMittal Poland, the second in Ostrowiec Świętokrzyski – Celsa Huta Os- Selected solutions in the transforming of steelworks into trowiec. These two mills are the beneficiaries of the pro- Industry 4.0 jects, respectively: Dabrowa Górnicza: DG CDA, Ostrowiec Along with successive industrial revolutions, steel mills Świętokrzyski: Energy Efficient EAF, PSWD, Renevable En- reach new levels of development. There is no universal ergy (Source: Eurofer, 2021) [45]. procedure for implementing Industry 4.0 technology in BAT – the name from a document of EU about IPPC 50 Management Systems in Production Engineering 2022, Volume 30, Issue 1 the steel sector. Currently, mills are at the 3.0 level of de- transforming to Industry 4.0 (Table 1). Digital technologies velopment with elements of smart technology. Quoting and IC systems (e.g. ERP, MES) integrate production pro- from Neef et al. [7] the changes in steel mills in the pursuit cesses with other activities in steel plants. According to of Industry 4.0 are stretched over time and it takes an- Govender et al. [53] digital technologies create the frame- other decade to be strongly visualized in the steel indus- works in steel industry. Neef et al. [7] presents the key di- try. Changes are introduced modularly. The road of steel rections of changes, which are also dominated by digitiza- mills to Industry 4.0 is in line with the adopted policy for tion and automation. Each of these publications empha- the development of the steel sector in the EU until 2030. sizes the gradation of changes and the importance of dig- The transformation of steel mills to Industry 4.0 begins itization in the transformation of the steel industry to the with digitization. Quoting from Peters (2017) [30] “Digital- level of Industry 4.0. Examples of technological solutions isation is a pre-condition for Industry 4.0, but Industry 4.0 used in steel mills proposed by the authors (Peters, Neef is much more than digitalisation!” Peters [30, 52] gives ex- et al., Govender et al.) are presented in Table 1. amples of technological solutions for the steel sector Table 1 Toward smart steel industry – a concept of technological solutions Peters [30, 52] − toward CPS: examples of possible cyber-physical systems in steel industry: plant component, product, production plant; − integration of systems, from inside to outside: more integration of systems (CPS) outside steel company than inside; − end-to-end engineering level I and II with digital twin in metallurgical processes; − vertical integration/automation pyramide with IoT (from fields in processes in steel production until the level of the company); − networked production with forms: o single plant as Cyber Physical Production System (CPPS), o intensive networking and communication of all plants, o „Intelligent“ product with knowledge of its own quality and production history, o de-central instead of central solutions and self-organisation, − examples of solutions: Big/Smart Data in steel industry: high resolution and synchronised data, transi- tion to more-dimensional data („spatial“) instead only 1D, integration of text data, video-/audio- streams, data with gaps (unstructured), fast processing and „online“-usage of results; − possible application areas of digital and smart technologies: o decision support regarding quality control, o smart control of process chain (through-process automation), o smart evaluation of large amounts of data, o re-scheduling of materials, o smart assistance systems, o smart (predictive) maintenance. Govender et al.[53] − fully integrated manufacturing and business system for real-time decision making; − data flow between the production operations such as Manufacturing Execution System (MES) and busi- ness systems as an example the Enterprise Resource Planning (ERP); − possible application areas of digital and smart technologies: o visibility of operations, o planning and scheduling, o lead times, o quality management, o machine health, maintenance planning, etc. − analysis of data according to SDLC (Systems Development Life Cycle), − key technologies and solutions of Industry 4.0 in steelworks: o Cyber-Physical Systems (CPS), o Internet of Things (IoT), o Industrial Internet of Things (IIoT), o Big Data. Neef et al. [7] − key directions of changes: digitalization and automation: e.g. add sensors or data-driven process con- trol; − two levels of changes: strategic and operational (technologies of Industry 4.0 are a part of strategical plans in steelworks), − cooperating with external partners during implementing of digital and smart technologies in steelworks; − forms of changes: phasing (modularity), sequencing of changes in steelworks; − “downstream” production areas: o rolling and coating/finishing in the technical domain, o the interaction with customers in the organizational domain. − a focus on economic benefits during implantation of new technologies of Industry 4.0. B. GAJDZIK – Key Directions in Changes from Steelworks 3.0… 51 Analyses of selected IC technologies using in the steel in- ▪ data generated by social media (e.g. by social net- dustry works, blogs, websites used to exchange multime- The use of IC technology in steel industry was presented dia information), on the basis of statistical data. The scope of the analysis ▪ other sources (e.g., transactional data, open data); covered producers of metals and finished metal products machine learning; processing or natural language (according to PKD: section 24 and section 25). The data generation (NLP, NLG); published by the Central Statistical Office [54] was used − 8.8% of manufacturers use 3D printing to: create pro- for the analysis. The scope of the analysis covered annual totypes or models for sale, create prototypes or mod- data (prepared for 2019). The following tables were used: els for their own use, create goods for sale, excluding − enterprises using different types of internet connec- prototypes or models (e.g. molds, tools, parts, semi- tions in 2019; finished products, etc.), create goods used in the pro- − enterprises purchasing cloud services in 2019; duction process excluding prototypes or models (e.g. molds, tools, parts, semi-finished products, etc.); − enterprises conducting data analysis, the so-called big data in 2019; − 23.17% of producers in steel industry use robots, in- cluding: 19.46% use industrial robots; examples of ap- − enterprises using 3D printing in their activities in 2019; plication areas: − enterprises using robots in their activities in 2019; ▪ for protection, observation, supervision, e.g. with − enterprises applying ICT security measures in 2019. the use of autonomous drones, In 2019, 5,715 enterprises were registered in the analyzed ▪ transport of people or objects, e.g. with the use of sectors (enterprises operating in total accounted for 100% autonomous vehicles, in the analysis). The results of the analysis are presented ▪ for cleaning or garbage collection, in Fig. 2. ▪ for work in the warehouse, e.g. stacking pallets, ▪ for assembly work, ▪ about customer service, ▪ assembling the structure or repairing damage. − 85.65% of enterprises applying ICT security measures: examples of activity: ▪ strong password authentication, ▪ ongoing software updates, ▪ biometric user identification and authentication, data, document and e-mail encryption, Fig. 2 In steel Industry in Poland ▪ data backup and transfer to other locations, Source: based on data from GUS for 2019. ▪ enterprise network access control, ▪ use of VPN connections, Conclusions from the analysis: ▪ storing logs for analysis after an incident related to − In 2019, 96.87% of producers of metals and finished ICT security, metal products had access to broadband Internet out ▪ ICT risk assessment, of 5,715 companies. Companies use the Internet ▪ performing ICT security tests, through DSL or other fixed broadband connections ▪ conducting information system security audits. (e.g. cable TV network, fiber optic network); mills also use the mobile form of the Internet via mobile devices CONCLUSIONS – cellular telephone networks. All industrial revolutions have common features that dis- − Out of 96.87% of producers of metals and finished tinguish them by technical changes. The third industrial metal products with access to the Internet (broad- revolution starts with ICT and the fourth one creates band), 15.99% buy cloud services, including the most smart technologies. Revolution 4.0 is associated with a popular forms: change in the approach to production from the analysis of ▪ e-mail services (11.33%), the conditions for the development of Industry 4.0 (fac- ▪ office software is purchased through the cloud tors influencing the development of Industry 4.0 technol- (9.5%), ogy) to technological investments changing the existing ▪ storing files (documents) in the cloud (8.12%). forms of production organization towards CPS. Steel- − 5.1% of enterprises in sectors 24 and 25 will create Big works with digital and smart technologies (over time) will Data centers in the areas of: become smart steelworks, and their cooperation with ▪ communication between devices (M2M ma- other companies in the chain will create a smart value chines), digital sensors, RFID tags etc., chain. Entering the era of the fourth industrial revolution ▪ acquired geolocation data from mobile devices is a challenge for the Polish steel industry. Scientific re- (e.g. from mobile devices using cellular telecom- search and statistical data confirm that intensified activi- munications networks, from wireless connections ties for the development of the Industry 4.0 concept are or GPS), already being taken in steel mills. When analyzing the data on ICT in Polish steel industry, it can be noticed that there 52 Management Systems in Production Engineering 2022, Volume 30, Issue 1 [14] Mc Kinsey, Industry 4.0 How to navigate digitization of are already companies implementing the Industry 4.0 the manufacturing sector. 2015. Retrivered from: concept and, most importantly, they are starting to take http://www.forschungsnetzwerk.at/downloadpub/mck_i specific actions (the examples of technological solutions ndustry_40_report.pdf. 2015 in the paper cited above). [15] B. Gajdzik, S. Grabowska, S. 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Journal

Management Systems in Production Engineeringde Gruyter

Published: Mar 1, 2022

Keywords: steelworks 4.0; Industry 4.0; transformation

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