Today Industrial Enterprises are facing the challenge of the 4th Industrial Revolution. Steam Power, Henry Ford’s Assembly Line, and Proliferation of Coal-based energy etc. – each of these developments in the evolution of manufacturing fundamentally changed the way products were manufactured and the way manufacturers moved products from factory to the customers. The present paper discusses the term “Industry 4.0” and its main characteristics, as well. Furthermore, a theoretical framework for evaluation the key technologies and concepts with respect to their impact on the production engineering and management. Also this paper discusses and some given arguments why manufacturers need to make changes in their traditional view of the functioning of the production system in term of “Industry 4.0”.