The development of the 4.0 industrial revolution is characterized by the rapid development of the Internet of Things (IoT) fast. This also affects the manufacturing sector in the Industrial Revolution 4.0 in manufacturingis a combination of automation technology and network technology associated with information technology.Production flexibility determines the value of effectiveness and efficiency in the industry. Some aspects of industrial development, especially the manufacturing sector, are trending very important. Therefore, it is necessary to do more in-depth research on the impact of the 4.0 industrial era on industry, especially the manufacturing sector.The development of Industry 4.0 is very suitable for application to smart production systems in the industrial world to realize the elements of smart factories.carry out the creation of Smart Factory elements. Research on the impact of the 4.0 industrial revolution is carried out using a descriptive and informative method, including the impact on the industrial production sector and on the industrial process in applying the System. smart production system. industrial processes in the application of Smart Manufacturing Systems. The realization of Smart Factory components includesthedevelopment of automated, intelligent, modular and adaptive manufacturing/production systems.Along with the application of intelligent production systems to achieve high production optimization.

Keywords : Industry 4.0, Smart Factory, Smart Manufacturing System.