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Transformation of Project Management in Industry 4.0

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A06

Transformation of Project Management in Industry 4.0

Thee Zin Win Nang Saing Moon Kham

University of Computer Studies Yangon

While Industry 4.0 concept is implementing, most of the working environment are automatized and interoperated as a smart factory
with Cyber Physical Systems, Internet of Things and Big Data being processed real time using cloud computing. Industry 4.0 has
brought many careers to transform and businesses to change as well. One of those careers is industry 4.0 project manager that gets
another dimension with coming of Industry 4.0. Traditional project management strategies need to be transformed in fourth
industrialization because it is a challenging job with a lot of variations. After analyzing necessary skills and responsibilities of
traditional software development project managers and industry 4.0 project managers, there are many changes and challenges in
industry 4.0 project manager. Transformations include digitization and automation of manufacturing operations, connecting various
machines with multiple software platforms and interconnecting departments within production environment, collecting and analyzing
big data stream, providing data to partners such as suppliers and machine builders, monitoring IoT predictive maintenance and cloud
platforms, and virtual and augmented reality. This paper is one of the initial attempts to highlight the importance of industry 4.0 project
management in implementing the fourth industrial revolution successfully although most of the recent studies are talking about
technological aspect.

Keywords and Phrases: Project Management, Industry 4.0, Transformation of Project Management, Elements of Industry 4.0

1. Introduction be integrated increasingly scientifically and they will

In Cheng,et al. (2016), it is stated that the first
industrial revolution began within the half of 18th
century to transform the steam engine to
manufacturing facility mechanization. The second
industrial revolution began in the half of the
nineteenth century, to use the electricity into large-
scale mass manufacturing. The third industrial
revolution brought both the electrical and information
technology to achieve automated manufacturing in the
half of the 20th century also in Cheng,et al. (2016).
Now, the Fourth Industrial Revolution is the Digital
Revolution which is well known as Industry 4.0. This
digital technology is emerging breakthroughs in a
number of fields such as robotics, artificial
intelligence, Nano-technology, quantum computing,
biotechnology, the Internet of Things (IoT), 3D
printing, Augmented Reality and autonomous vehicles,
systems, manufacturing. Many industrial leaders
predict that the Industry 4.0 will deliver extraordinary
levels of growth and productivity over the coming
decades as described in De Pace F,et al. (2018).
Business leaders, governments, academics, and
technology vendors are enthusiastically working
together in order to apply this huge potential. Industry
4.0 described that the future of manufacturing will be
established on the Internet and information technology
based interactive platform, factors of production will
be more automated, networking, intellectuality.
Moreover personalized, customized manufacturing
will become to fulfill market demands and customer
requirements personally. Industry 4.0 offers cyber
physical systems to cooperate profitably, aiming to
build smart factories by redefining the role of humans.
Dilberoglu (2017) predicted that the role of designers,
factories, and customers will be redefined remarkably
since the manufacturing business will be distributed to
many separate locations like small workplaces or
homes. Especially, project management in
implementing Industry 4.0 is becoming more and
more challenging because of different elements of that
and emerging new technologies. Project Management
has been one of the most important disciplines in
determining the success of any project.
2. The traditional project management
The project management responsibilities are usually
planning, managing the projects, organizing, preparing
estimates and schedules, monitoring, and report on
activities and progress through the projects. The basic
essential skills for a project manager are shown in
table (1). The viewpoints of project management can
be adopted and implemented by a single group of
people for a single project. A department or division
can also and the entire company as well. In fact, as the

Proceedings of the 12th International Conference on Project Management (ProMAC2018) 37

Ⓒ 2018 The Society of Project Management
scope grows and communications improves, the
methodology should be more consistently applied. The
scope of project management affects many people and
aspects.
The typical project managers may have to plan
and direct the use of resources on projects, and prepare
risk management since planning step. Department
managers will administer resources and control
projects within an area. Executive management should
establish project priorities and monitor project
progress. Obviously, project management should not
be restricted to a handful of people or projects. Dozens
of projects may be active at any one time, involving
hundreds of workers across departmental boundaries.
Synchronization of the work effort is required to
maximize effect and minimize confusion. According
to Tim Bryce (2013), only when a standard and
consistent approach to Project Management is adopted
by a company will it become an integral part of the
corporate culture.
Table 1 Basic skills of project management
1. Communication 4. Team Building
Listening Empathy
Persuading Motivation
2. Organizational 5. Surviving Skills
Planning Flexibility
Goal-setting Creativity
3. Leadership Skills Patience
Responsibility Persistence
Energetic Risk management
Vision 6. Technological Skills
Delegates Experience
Positive Project Knowledge
3. Industry 4.0 project management
Industry 4.0’s core is the dynamic configuration mode
of productions. It is significantly different from
traditional production methods. Dynamic
configurations in production and in the manufacturing
process are able to change the original design at any
time. In order to ensure the best competitiveness, the
integrated management of the projects will become
increasingly important and, as a result, the project
teams will become more and more focused on specific
objectives related with diverse elements of Industry
4.0. Most of business tasks and processes that do not
require analytical and design skills such as back-office
Proceedings of the 12th International Conference on Project Management (ProMAC2018)
Ⓒ 2018 The Society of Project Management
tasks will be progressively automated. This process
leads the corporate structures which were based on
hierarchical functions to be gradually changed by
more streamlined structures.
Massive amount of data will be produced in
every millisecond in the automated manufacturing
industry. This streaming huge data will be analyzed to
enable adapts the business process to fulfill demand
for products and services. The time needed to market
of mass production will definitely short. To get along
with that, more fast adaptable and flexible production
processes will be compulsory to get adaptable quickly
to the demands of the market. The consolidation of
Industry 4.0 will be characterized by the implementation of
pervasive change project management processes that
will deal with inevitable resistance from people who
will have to revolutionize their ways of working. It is
sure that project managers and teams will require
higher variant soft skills and hard skills than those
needed in the past and a greater degree of autonomy in
order to handle industry 4.0 projects. The project
teams will be increasingly delocalized, with people
that will interact from different places of the world
and they all have their own cultural and professional
identity that needs to be integrated.
3.1 New emerging high-technology has changed
project management
The future of project management will be
heavily influenced by technological breakthroughs,
and there is no doubt that AI will change the course of
how project management tasks are delivered and
controlled in the future. Practitioners are convinced
that AI will evolve from simple task automation to
predictive project analytics, advice and actions as
described in M Lahmann, et al. (2018). New high-
technology has made a lot of things in life easier, but it
has affected management of organizations. To put it
simply, it has changed project management in every
possible way. While new technology’s capabilities
often lead to heightened expectations of customers and
senior management, the net result is that project teams
should be able to achieve more during less time than
ever before. Consequently, the project managers get
uncountable benefits starting from easier collaboration
to more accurate reporting via emerging technologies.
Some of them are as follow.
3.1.1 Team based structure
A team based structure can be useful for
38
Industry 4.0 settings, because it put multiple functions
and processes in a single group heading towards
common objectives in Griffin, A.; Hauser, J.R.(1996).
It enables organizational learning which leads to
enhanced general skills, and a speedy decision making
process by breaking the interdepartmental barriers.
Project based teams can especially be a really good
facilitator of learning and innovation capabilities of
organizations and individual employees in Aubry and
Lièvre(2010), which are required in the uncertain and
unstable environment of Industry 4.0. Team members
come up with ideas, evaluation options and provide
specialized knowledge. This balance ensures that the
project manager can consider all angles to complex
problems and solves them efficiently.
3.1.2 The integrated project teams
Despite Agile development offers the more
collaborative approach in projects, IT still goes off to
code and test most new applications on its own and IT
technicians have to provide services by themselves
even after the application is delivered at customer’s
production site. This typical work procedure will not
work with IoT projects, because IoT is so integrally
linked into company operations that the software and
hardware cannot be separated from its actual operating
environment according to Shacklett. M (2017). For the
entire duration of the project, IT projects and
industries’ operations have to work hand in hand on
IoT all of the time.
3.1.3 Longer project timelines
Unlike traditional IT projects, an Industry 4.0
project is not terminated once it is implemented. There
should have a plan for how the IoT will be supported,
and for what the failover mechanics are going to be
fixed if a failure occurs in production for some reason
as stated in Mary Shacklett (2017). As a team's project
manager, he or she might also prepare failover and
recovery actions for ongoing project. Until Internet
industries mature in autonomous manufacturing
industry, IIoT projects will have a longer tail that
extends into support and failover of IoT even after it is
cutover to production. As described in Mary
Shacklett(2017), the project timeline will be longer for
that the project team will need ongoing support from
automated systems, network, database, storage and IT
operations functions because IIoT will impact all of
them.
Proceedings of the 12th International Conference on Project Management (ProMAC2018)
Ⓒ 2018 The Society of Project Management
3.1.4 Improved communication
Communication is one of the most important
uses in project management to ensure proper
communication between managers, team members and
stakeholders. A few decades ago, project managers
replaced email instead of interoffice memos, faxes,
voice messages and other less-reliable forms of
communication. Now, as social collaboration tools and
other innovations have begun to replace email,
successful project managers continue to use the latest
technology to share updates, documents and other
critical information with their project teams stated in
Angela(2016). Advances in communication
technology can build project teams with stakeholders
located in various places over the world.
3.1.5 Various tools for varied stakeholders
Some of the tech trends increasingly responding
to a dynamic and changing world are collaboration,
mobility and social networking, not just within teams
but also among stakeholders. Collaboration tools
support groups working together to accomplish a
specific task. But project managers nowadays should
be careful when identifying the proper channel to
reach stakeholders. The project manager should use a
variety of tools such as instant messages, phone calls,
webinars, and document collaboration tools. The
project manager should always try to get approved
formally by stakeholders’ organizations before
choosing one to support a project. The project
manager’s ability to choose the appropriate
communication tools to communicate stakeholders
and teams has a great impact on the project outcome.
3.2 Soft skills for Industry 4.0 project manager
In Industry 4.0, the soft skills of project
managers will undertake a significant transformation
mainly related to the new ways of interacting with
project stakeholders:
3.2.1 Communication skills
In order to react in real time and consequently
speed up the processes of problem solving and
decision making, the management and sharing of
knowledge will play in a main role. While time is
passing, information is going to decrease value.
Information should be shared with all stakeholders in
order to enhance the management of critical issues and
encourage the creation of integrated collaboration.
Customers and suppliers from the network cannot be
39
longer excluded from knowledge management; they
can all make an important contribution to problem
solving. To achieve this goal, the project managers
should promptly prepare a well-prepared
communication plan.
3.2.2 Authority
In Industry 4.0, project managers are among the
main actors of this industrialization change process.
Their leadership will be expressed as more
authoritative and less as a simple position in the
organizational chart. An authoritative PM should have
rights to create project agreements, resource
management, his or her team position in the processes,
be available to get involved and demonstrate skills in
valuing resources.
3.2.3 Team management
The PM’s fundamental task should be to
encourage the team's spirit of initiative without losing
sight of the strategic objectives of the project. From
both technical or cognitive view and relational point of
view, the project manager should be able to choose the
right people for the composition of the team with the
delocalization of the different project teams. Moreover,
the Industry 4.0 PM should have the efficient
interaction among projects such as IoT, Big Data
Analytic, System integration, Simulation, cloud
computing and cyber security projects.
3.2.4 Management of unforeseen event
Speed will be a key word in Industry 4.0. An
integrated flow of data and communications which
allows stakeholders to have a picture of the situation
in real time will be essential the high speed of decision
making and the diligence in reacting to unexpected
events in a system governed. Project managers should
have consistent problem-solving capacity and act
quickly, maintaining the right balance at the same time.
3.2.5 Negotiation skills
Traditional hierarchical relationships will
gradually change into flat structure in Industry 4.0.
Project team members will become independent
professional figures, able to develop their creativity
with greater freedom than in the past. The PM should
build her authority on the 360-degree knowledge of
the project and of its related domain. In order to
manage effectively, the project manager should
communicate the team members with transparency
Proceedings of the 12th International Conference on Project Management (ProMAC2018)
Ⓒ 2018 The Society of Project Management
and on the other hand manage the relations among
other stakeholders with a sense of responsibility.
3.3 Hard skills for Industry 4.0 project manager
Although a project manager is the general
manager of a project, Industry 4.0 projects require a
full comprehension of Cyber-physical Spaces from the
project managers along with deep domain knowledge
while the implementation is mainly delegated to
project team experts or virtual assistants. The most
important hard skill for PMs is experience with
innovative technologies and projects, predictive
algorithms and big data analysis that will help them
manage projects correctly and stay focused on the
objectives to be achieved. The authoritativeness of
project managers will be based on their ability to see
the flow of the processes that will regulate the projects
of the future not only in its entirety, but in all its
components. Humans are always at the center of
Industry 4.0, dominating through their know-how and
skills to use the tools that will guide success. In this
sense, project managers could adopt the principles of
lean management. When integrated with the tools of
Industry 4.0, this will allow them to overcome the
operational criticalities of the management of projects
that usually cross all company areas. For example,
with pull techniques, lean management will allow us
to enhance the potential of digital tools to perform
rapid analysis that will provide operators with
instructions to intervene effectively in critical areas.
At the same time, this will enable to adapt production
processes to requirements changes and stay aligned
with customer requests.
3.4 Challenges of Industry 4.0 elements for project
management
At the company level, the impact of the fourth
industry revolution on production processes will not
only be limited to technological but also
infrastructural aspects. This revolution will endorse
the development of new professions, new structures of
organizations and the growth of a new management
style. Project managers will be the main leaders of
those developments, facing a new situation with
different elements of Industry 4.0. Some significant
elements are Internet of Things, Addictive
Manufacturing, System Integration, Autonomous
Systems, Augmented Reality, Simulation, Big Data,
Cyber Security and Cloud Computing.
40
3.4.1 Internet of things
The Internet of Things is the ever-growing
infrastructure of internet-connected devices which can
transfer data and commands between points. The basic
idea of this concept is the pervasive presence around
us of a variety of things or objects such as Radio-
Frequency IDentification (RFID) tags, sensors,
actuators, mobile phones, through unique addressing
schemes such as IP address, which are able to interact
with each other and cooperate with their neighbors to
reach common goals described in Giusto, D. et al.
(2010). While the system becomes a crucial tool for
understanding complexity and elaborate quick
responses, the objects can sense and interconnect
within themselves and the environment in this system.
Increasing the complexity of the projects’ processes
and management style is bringing shifting elements
inside the environment. The number of stakeholders in
the project is also increasing significantly. The
project’s success mostly depends on sharing
information and communication and high uncertainty
of the situation is making challenges and they are
usually more tricky and complicated to manage. It is
the sure that project management within diverse
groups which are often located in remote locations,
will face many deviations in the original project plan
according to Luigi Atzori, et al. (2010).
3.4.2 Additive manufacturing
Additive Manufacturing is advances in 3D
printing and can make product components lighter and
less cost. The 3D printing is a central part of a more
broad computerized transformation procedure in the
smart factories of manufacturing industry. The smart
factory will make manufacturing leaner and faster, and
provide data on components and products in real time.
Because businesses involved in additive
manufacturing will add complexity and bring new
legal challenges, an increased awareness and coherent
strategy will be required for industry 4.0 project
manager, especially additive manufacturing project
manager to adequately address issues like the
protection of intellectual property rights, trade secrets
and data, as well as increasing liability risks.
3.4.3 Systems integration
System integration in this connected industry
4.0 comes with its challenges, so industries need to
keep up to speed and get creative with technology
because a business can have many different pieces of
Proceedings of the 12th International Conference on Project Management (ProMAC2018)
Ⓒ 2018 The Society of Project Management
hardware of software which need to be utilized in
harmony so that maximum value can be derived.
Keeping existing systems up to date and working
properly is one of the main challenges of the fourth
industrialization. Projects to integrate new and old
systems will be essential the skillful project manager
who have enough awareness to accomplish the system
integration projects. Connecting a system, equipment
and component to a network is not such an easy job.
Moreover, it also brings vulnerabilities that weren’t
there before. Nick (2015) indicated that Ensuring that
the system is secure from cyber threats and attacks
while interconnecting systems is a new challenge fit
for Industry 4.0. Flexibility with new modern
automated systems and smart factories is essential for
good systems integrators and industry 4.0 project
managers. While also keeping up to date with the
latest technologies, the best way to maximize industry
knowledge and expertise is being familiar with a wide
range of systems and working with different
manufactures.
3.4.4 Autonomous systems
In this 4th iteration, not only objects and
machines can communicate with each other, they can
also act autonomously. Robotics and artificial
intelligence have evolved mostly in the autonomous
systems where high standards on various tasks can be
operated without constant human intervention. In the
future of Industry 4.0, autonomous systems will
perform complex tasks without requirements of
specific programming or human input. Their ability to
learn will enable them to decide between alternative
actions, make the best use of their skills, interact with
the real world, perceive their surroundings, and adapt
to changes as stated in Siemens Corp. (2017). While
settling those autonomous systems, there is a demand
to manage these complex technical projects efficiently
to support the technical development. To enable that,
project manager is needed to manage the projects
towards set goals, project organization and framework
for ways of working within the project. The project
manager of autonomous system should make to ensure
that all project activities are undertaken in a systematic
manner with a Systems Engineering approach at the
core of the technical solution to project objectives.
3.4.5 Augmented reality
Augmented reality (AR) refers to the
integration of additional computer generated
41
information into a real-world environment. In an
Industry 4.0 context, AR can add into internet industry
network to enable generate the highest value, enable
avoid risks, issues and downtime the most, optimize
the end-to-end manufacturing process and workflows
with the best possible way, and finally to make
productivity, satisfaction and experiences of field
engineers, factory workers, customers and
stakeholders the most satisfactory. Virtually
Augmenting (VR) what people can see with their own
eyes with data and hidden systems can be immensely
powerful when it comes to process and product
improvement. The AR application is relevant to
industries for its prominently improvement of the
product design and production, distribution processes
because it can reduce the number of physical
prototypes, it saves time and cost. AR systems use
digital visualization to show users exactly where to put
parts, what parts may be broken and also give
information on the part while process manufacturing
training, assembly and safety are the main use of VR
and AR. According to De Pace F,et al. (2018), AR is
considered as a valuable tool for improving and
accelerating product and process development in many
industrial applications. It sounds greatly that AR
project is filled with high technology. Therefore, AR
project manger’s one of the most important skill to
achieve the project goal is familiarity with AR
technology additionally to project management skills.
3.4.6 Simulation
In the engineering world, we have been using
simulations that are computer programs that mimic or
model the behavior of physical systems for years to
predict and explore system capabilities and limitations
according to Arora, A. (2007). It can often be more
cost-effective to trial something in the virtual world
than to make a physical prototype for each variable
being tested. The simulations save expenses for
physical prototypes and even lives in many cases.
Applying them in industry 4.0 projects can have
similar impact to project owners and stakeholders.
Because of projects are both varied and numerous,
however, many projects experience schedules late and
cost overruns. Computer simulation provides a
modeling and evaluation tool for complex systems that
are analytically intractable. The simultaneous
emergence of of ubiquitous sensing and unprecedented
interconnection between sensing and control devices
constitutes a new paradigm of industrial systems of the
Proceedings of the 12th International Conference on Project Management (ProMAC2018)
Ⓒ 2018 The Society of Project Management
fourth industrialization according to Jie Xu, et al.
(2016).
3.4.7 Big data
Businesses can create huge volumes of data
without realizing it and this data can be a source of
untapped value for business improvement and growth.
On the other hand, a lot of data sources of different
aspects of industries will generate big data in disparate
formats. Big data analytics is an important challenge
for Industry 4.0 project managers because its data
variety may be hinder of Industry 4.0 big data
analytics. Although there are a large number of tools
for processing big data, people who have expertise and
deep knowledge in a specific domain only may not be
able to use these tools according to Gökalp, et al.
(2016). Therefore, Industry 4.0 project manager needs
to deep understanding of big data analytics too in
order to able manage project team effectively.
3.4.8 Cyber security
Connected systems especially diverse systems
within industry 4.0 require being optimized and secure
so that personal to organization assets and information
are safe from intrusion. It does not need to say that the
array of tasks that fall to the project manager is
seemingly endless. Time management, resource
management, risk management, budgeting,
motivational and diplomacy skills and leadership skills
are some of what a project manager needs to tackle in
order to successfully manage a project. But,
increasingly cyber security is another area within
project management. It is an area that a project
manager cannot afford to overlook even while
ensuring systems are secure. Serious security breaches
make cost very much to fix. It can also cause long-
term damage and numerous negative consequences to
an organization’s brand and reputation. Therefore,
Project managers should be alert of their project data
value, especially if data is cutting edge technology or
confidential information. They should ensure that
access to data is under-controlled. Moreover, they
should also consider the unauthorized access to the
data as part of their risk management. The cost of
protecting data needs to be discussed upfront and
included in project budget.
3.4.9 Cloud computing
IT services are increasingly being provided by
the ‘cloud’ to generate cost and space savings as well
42
as to offer innovative use models. When applications
are deployed in the cloud, the project manager's role
does not change much. The project manager typically
keeps the project on track and provides status reports,
and is not required to be an expert in the particular
technologies. However, the project manager needs to
make sure cloud providers take steps to address
performance, security and disaster recovery
management problems. The project manager needs to
understand each area of risk and identify who is
responsible for tasks associated with problems.
4. Analysis of typical and Industry 4.0 project
manager responsibilities
Much of the daily work of a project manager has not
dramatically changed over the last 30 years according
to Treb Gatte(2016). Different management
methodologies may be used, but collecting and
disseminating manually information between the
various roles on a project is spent a great deal of time.
The information gaps caused by diverse systems that
cannot capture what is truly happening within the
organization cause this expenditure. The combination
of artificial intelligence in the form of bots, cloud
computing could radically change this situation into
autonomous system. Project management efficiency
would be enhanced in some projects and diminished in
some projects in the fourth industrialization. Analysis
of typical software development and industry 4.0
project manager can be seen in the following table (2).

Table 2 Analysis of typical and Industry 4.0 project manager’s responsibilities

Industry 4.0
Roles and Responsibilities Typical PM
PM
Provide to ensure adherence to budget, schedule, and scope v v
Work with the Project Sponsor to develop the agreed Project Management Plan
through interactions with stakeholders. v v
Execute and maintain project document management for the project cycle in
compliance with the Authorities Quality Assurance requirements. v v
Provide a timely and accurate report to the management team and team members. v v
Assist business development team with negotiating and definitive agreements
with external suppliers, vendors, and customers. v v
Develop best practices and tools for project execution in an agile development
environment. v v
Ensure all project activities are undertaken in a systematic manner with a
Systems Engineering approach at the core of the technical solution to project x v
objectives.
Identify and execute strategic initiatives to enable growth strategy. x v
Motivate cross-functional, multi-location team members and manage deliverables
to meet project milestones.
x v
Provide deep dive analysis, proposal, and help implement improvements to a
wide variety of cross organizational challenges.
x v
Manage project execution, risks; identify, resolve issues in a real time. x v
Ability to manage highly complex, technical projects x v
Support the tracking and managing of a complex autonomous fleet. x v
Ensure prototype development and vehicle conversion and replication is executed
flawlessly.
x v
Drive the testing and technical assessment of next generation hardware and
software technology with partners
x v
Familiar with technical process improvement and development in start-up and
complex settings.
x v
Complex systems execution strategy formation and delivery x v
Proceedings of the 12th International Conference on Project Management (ProMAC2018) 43
Ⓒ 2018 The Society of Project Management
 5. Conclusion
Complexity and uncertainty, two main theoretical
traditions in project management play a big part in
Industry 4.0 projects, shaping and defining necessary
features to handle the workload and they are related
with the increasing complexity of the projects.
Traditional project management styles have to be
changed in order to adaptable with the fourth
industrialization with a lot of variations. After
analyzing necessary skills and responsibilities of
traditional software development project managers
and industry 4.0 project managers, we found that
there are many challenges in industry 4.0 project
manager, especially ways of management and
technical skills. Although there are specialized
project manager related with each element of Industry
4.0, it is sure that project manager must have
enhanced soft skills and hard skills to accomplish the
complex and autonomous Industry 4.0 projects.
Acknowledgement
This study was supported by University of Computer
Studies, Yangon (UCSY), Myanmar.
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