Vol. 5, Issue 12, Part C (2019)

Abstract
Industry 4.0 and Smart factory are the most commonly used terms in case of next generation production systems. In the era of industrial digitalization, the enterprises are investing more on their tools and solutions which allows their employees, machines, processes and even their products to be integrated into a single integrated network for date collection, data analyse, evalution of company development and even performance improvement. To remain competent in their competitive global market an industry has to utilise these technological advancement to the fullest extent inorder to solve the current the market challenges and serve their customers in new ways which their never imagined before. Industry 4.0 is a new strategic initiative introduced by german government and its goal is to transform an ordinary manufacturing industry to a digitally advanced and integrated one. An Industry 4.0 production system is thus flexible and enables them to produce customized products inorder to satisfy the needs of each customers. The aim of this paper is to present understandable view over the concept of Industry 4.0, its drivers, current challenges faced by the companies.