Int. J Sup. Chain. Mgt Vol. 8, No. 4, August 2019 1102 A Conceptual Model on People Approach and Smart Manufacturing Norbaizura Ramzi #1 , Hartini Ahmad #2 , Nazlina Zakaria #3 # School of Business Management, University Utara Malaysia, 06010 Sintok, Kedah 1 yaya_ramzi@yahoo.com 2 hartini@uum.edu.my 3 nazlina@uum.edu.my Abstract— The purpose of this study is to emphasize the important role of people approach in the revolution of smart manufacturing and industry 4.0. Two hundred years ago, industrial revolution in the West transformed or evolved from water-driven or water-driven mechanical production, and to date, we are in an era characterized by cyber-physical systems. This transformation or industrial revolution was driven by people who used creative minds to solve problems. Rapid development of technology has brought about many disruptive technologies such as big data, artificial intelligence and cloud computing. These technologies are penetrating almost in all industries include manufacturing industry. The fusion of these state-of-the- art technologies and manufacturing brings together the physical and virtual worlds through Cyber-Physical System (CPS), which marks the advent of the fourth stage of industrial production – Industry 4.0. Keywords- Cyber Physical System, Industry 4.0, Human Factor, Smart Manufacturing, Cloud Computing 1. Introduction The chapter is structured as follows: first, an overview of the smart manufacturing and industry 4.0 revolution, followed by the future skills required by human capital, the conceptual model for the smart manufacturing and industry 4.0 revolution, and the conclusion of the smart manufacturing and industry 4.0 revolution. 1.1. A Summary of Smart Manufacturing and Industry 4.0 Revolution The industry have to admit that, to move in line with industrial revolution 4.0, we have to aware, ready and implement the change management in the organization. Also, to make the industrial revolution move forward, we have to know the key component in the industrial revolution 4.0 which lead to the successful of the phenomenon. One of the key component in the IR4.0 is a smart manufacturing (SM). Smart manufacturing is the integration of the technology that can increase the production and decrease the cost of production using very innovative machine. It is connected with the aid of sensors and RFID chips that make the technology more sophisticated. For instance, in smart manufacturing, all the product, transport option and tools interact with each other and will organized with the goal of improving the overall production. So that, it can reduce the cost of production and also workforce. Besides that, intensified market competition and rapid demand changes have forced companies to adapt advanced technologies to improve smart manufacturing. Industry 4.0 is the current trend in automation and data exchange in production technology. Advanced technologies have obviously led to a competitive advantage in the performance of the individual company. The revolution of Smart Manufacturing and Industry 4.0 is characterized by Mobile, Cloud, Big Data Analytics, Machine-to-Machine (M2M), Man to Machine Interactions (M2MI), 3D Printing, Robotics and much more, requiring organizations with special expertise. It is also said that the Industry 4.0 revolution goes much further than these. Cyber-Physical Systems (CPS) digital networks are simple physical objects with embedded software and computer power. In the Smart Manufacturing and Industry 4.0 revolution, smart products and cyber-physical systems (CPS) are expected to be more manufactured products. This is based on connectivity and computational power, which leads to self - management. Today, most production equipment is transformed into Cyber- Physical Production Systems (CPPS), which is enhanced software machinery. This equipment has its own computer power, which capitalizes on a wide range of integrated sensors and actuators beyond connectivity and processing power. The CPPS acts and knows its status, capabilities and various configuration options and can take decisions ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)