The future component and assembly systems will need flexible automation solutions to sup-port operators in the tasks they do best – e.g. the value-adding work to make the assembly operations. That means that other tasks, for example, material handling and logistics is cho-sen for automation. The introduction of the cyber-physical system and Industry 4.0 (I4.0) will enable these systems for data collection, independent decision making and working to-gether with multiple systems. I4.0 is the trend towards smarter automation and communica-tion between machines in the industry. It also includes cyber-physical systems and Internet of Things (IoT). Thanks to the connectivity of multiple systems through IoT, systems com-municate information with each other, which enables them to make smart and automated decision. IoT also enables communication of manual station with automated platforms, to make a better collaborative environment.Volvo GTO Research & Technology Development is developing a new lab to test and demonstrate new technologies that are relevant for ongoing and future projects. The new lab is called Volvo Group Smart Factory (VGSF) where new technologies can be tested and evaluated in automation systems and system integration. This project will be working on the creation of this testbed and make it available for demonstration and training.The thesis project is to develop a solution for the integration of portal crane and AGV in a collaborative way to work together with manual assembly station. The thesis project will comprise of developing a solution for the kitting operation with the portal crane, an auto-mated ordering system for the parts using the concepts of I4.0 and IoT. By interconnection of multiple resources, the process will be able to achieve an automated system in kitting application. Tasks involved in the project is designing a solution for automated kitting oper-ation. The programming is done using Codesys provided by Festo, the operation can be programmed either using soft motion (CNC operation) or by axis movement. Another task involved is to develop a solution for material handling in the portal crane. The solution will investigate how the raw materials sent to the portal crane is handled. The process is planned to be done with a vision system or by a vibration platform or by manual loading of the buffer stations. Another task is to design an ordering system to handle the request for work in an automated system. Ordering process is the system which will initiate the order of parts from the manual station using an HMI screen or by using sensors for a complete automated sys-tem. Designing the Admin HMI for the portal crane which will be connected directly to the portal cranes PLC is also part of the task for the project. This HMI is used for manual control of the portal crane and monitoring the status of the Automated Transport Vehicle (ATR) and Inventory.