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Industry 4.0 has evolved conventional manufacturing systems a leap forward to smart factories. These advanced manufacturing systems, also termed interconnected factories and digital manufacturing, create smart products and processes. The term “smart” in Industry 4.0 framework is defined as an intelligent environment that offers real-time communication and cooperation of various devices to make decisions and act according to the obtained information [13]. In this manufacturing approach, all the components communicate autonomously, work without human intervention, and trigger operations from customers to suppliers [14]. This allows the creation of a smart environment capable of flexible and adaptive processes, enhances efficiency, and ensures integrated operations meet the requirements of sophisticated markets [5, 13].

In smart factories, the communication between all manufacturing resources is performed through standardized interfaces [15]. Additionally, new business models are introduced to create collaborative environments and better satisfy customers’ changing requirements [16]. Thus, smart products are monitored as an active component of systems and at all stages of life cycle to deliver a high degree of customization. In Figure 1.1, we indicate the architecture of smart manufacturing in Industry 4.0.

Figure 1.1 Smart Factories in Industry 4.0.