Organisations and institutions worldwide know the need for trained workers to handle future workplace challenges. This assertion focuses on the growth of digital literacy and several other skills and abilities known as digital transformation competencies. Universities, employers, governments, and organisations recognise an existing gap in the students' education about developing, utilising, and implementing new technologies. The contribution of this work is to present an educational innovation case study in which students implemented and customised Industry 4.0 technologies. The team designed an assembly line with a collaborative robot and real-time data-accessing dashboards with an Overall Equipment Efficiency (OEE) indicator. Undergraduates start the experiential learning process by studying time and movement tasks, designing workstations, and placing the components for the assembly. Digital tools are used to track assembly line availability, efficiency, and quality in real time, demonstrating the positive impact of a collaborative robot on production. By introducing Industry 4.0 into the industrial engineering curriculum, students can improve their digital tools knowledge, problem-solving, teamwork, and communication. This study provides future directions for students' activities incorporating more technologies and digital enablers in Industry 4.0, adding relevant transversal skills regarding sustainability and citizenship.