Automation and digitalization of production processes – Industry 4.0

The purpose of this paper is to examine how digitalization and automation principles of the fourth industrial revolution improve efficiency, quality and flexibility in manufacturing systems, with a focus on practical steps for implementation. The methodology combines a structured review of academic and professional sources, document analysis of company procedures, and a field study consisting of semi-structured interviews with managers and engineers, plus direct observation of selected production lines. Results show measurable improvement after introducing cyber-physical monitoring, sensor-based tracking and data-driven planning: shorter production lead time, higher first-pass yield, fewer unplanned stoppages, better traceability and more stable planning. The analysis also reveals key barriers: insufficient digital competencies, fragmented information systems, unclear ownership of data and initial investment constraints. Conclusions indicate that benefits arise when technology, processes and skills are developed together, guided by a clear governance model and continuous improvement culture. Recommendations include a phased roadmap that starts with process mapping and data readiness, establishes interoperable platforms, strengthens worker training, embeds information security from the outset, and sets a limited set of outcome indicators tied to cost, quality and delivery. Additional data include interview guides, observation checklists and consolidated tables with baseline and post-implementation measures, provided in the appendices of the paper