Roles of Customers in Upgrading Manufacturing Firm Technological Capabilities Toward Industry 4.0

Author(s):  
Kimseng Tieng ◽  
Chawalit Jeenanunta ◽  
Phirom Chea ◽  
Nattharika Rittippant
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Krishnamurthy Ramanathan ◽  
Premaratne Samaranayake

PurposeThe purpose of this paper is to present an Industry 4.0 Readiness Assessment Framework (I4.0RAF) and demonstrate its applicability and practical relevance through a case study of a large manufacturing firm in an emerging economy.Design/methodology/approachThe research firstly involved a synthesis of recent literature for the identification of important determinants, and their constituent criteria, for assessing the readiness of a manufacturing firm to transition to an Industry 4.0 setting and structuring them into a readiness assessment framework that can be used as a self-diagnostic tool. The framework was illustrated through a case study. The empirical findings of readiness assessment are validated using semi-structured interviews of senior management of the organization.FindingsThe proposed I4.0RAF was found to be a practically applicable self-diagnostic tool that can be used to assess a firm's readiness to transition to an Industry 4.0 setting with respect to eight important determinants. Cross-functional participation in the assessment helped the organization to determine priorities and interdependencies among the determinants.Research limitations/implicationsThe determinants and their constituent criteria can be further streamlined using inputs from practitioners, consultants and academics.Practical implicationsThe findings demonstrate the interdependencies between the determinants, help to delineate interventions that can lead to synergistic outcomes and enabls planning to achieve higher levels of Industry 4.0 maturity.Originality/valueA self-diagnostic tool as a basis for an informed discussion on transitioning to an Industry 4.0 setting is presented and illustrated through a case study in an emerging economy.


Author(s):  
Vishal Talwar ◽  
Maheswar Dwivedy ◽  
Harish Puppala ◽  
Surya Prakash ◽  
Sanjiv Narula ◽  
...  

2019 ◽  
Vol 31 (1) ◽  
pp. 1-30 ◽  
Author(s):  
Morteza Ghobakhloo ◽  
Masood Fathi

Purpose The purpose of this paper is to demonstrate how small manufacturing firms can leverage their Information Technology (IT) resources to develop the lean-digitized manufacturing system that offers sustained competitiveness in the Industry 4.0 era. Design/methodology/approach The study performs an in-depth five years case study of a manufacturing firm, and reports its journey from failure in the implementation of enterprise resource planning to its success in integrating IT-based technology trends of Industry 4.0 with the firm’s core capabilities and competencies while pursuing manufacturing digitization. Findings Industry 4.0 transition requires the organizational integration of many IT-based modern technologies and the digitization of entire value chains. However, Industry 4.0 transition for smaller manufacturers can begin with digitization of certain areas of operations in support of organizational core strategies. The development of lean-digitized manufacturing system is a viable business strategy for corporate survivability in the Industry 4.0 setting. Research limitations/implications Although the implementation of lean-digitized manufacturing system is costly and challenging, this manufacturing strategy offers superior corporate competitiveness in the long run. Since this finding is rather limited to the present case study, assessing the business value of lean-digitized manufacturing system in a larger scale research context would be an interesting avenue for future research. Practical implications Industry 4.0 transition for typical manufacturers should commensurate with their organizational, operational and technical particularities. Digitization of certain operations and processes, when aligned with the firm’s core strategies, capabilities and procedures, can offer superior competitiveness even in Industry 4.0 era, meaning that the strategic plan for successful Industry 4.0 transition is idiosyncratic to each particular manufacturer. Social implications Manufacturing digitization can have deep social implications as it alters inter- and intra-organizational relationships, causes unemployment among low-skilled workforce, and raises data security and privacy concerns. Manufacturers should take responsibility for their digitization process and steer it in a direction that simultaneously safeguards economic, social and environmental sustainability. Originality/value The strategic roadmap devised and employed by the case company for managing its digitization process can better reveal what manufacturing digitization, mandated by Industry 4.0, might require of typical manufacturers, and further enable them to better facilitate their digital transformation process.


Author(s):  
Rosmaini Tasmin ◽  
◽  
Nurul Syahira Rahman ◽  
Ishaq Jaafar ◽  
Nor Aziati Abd Hamid ◽  
...  

This research is focusing on analyzing readiness of automotive manufacturing firm on Industry 4.0 towards quality performance. In the era of globalization, most manufacturing firms all over the world are constantly looking for ways to increase productivity. The manufacturing industry is mainly faced with the problem of Industry 4.0’s awareness and implementation. Top and middle management of DRB-HICOM Automotive manufacturing firm from all departments have been selected as a sample study. The questionnaire has been used to get the feedback from top and middle management about readiness of Industry 4.0. There are three main objectives that were assessing the level of firm’s characteristics, determining the level of Industry 4.0 readiness for DRB-HICOM Automotive manufacturing company, namely via variables of Applied Technology, Enterprise Resource Planning (ERP), Internet of Things (IoT), Cyber Physical System (CPS) and determining the relationship between the Industry 4.0 and quality performance. Quantitative method was used in this research which incoperates the distribution of 96 questionnaires to the respondents involving DRB-HICOM Automotive manufacturing firm. In terms of conducting the required data analysis, Statistical Package for Social Science (SPSS) version 22 was used. Result shows that all related constructs have a significant yet strong relationship between Industry 4.0 and quality performance. It is hoped that this initial Industry 4.0 work will help to spur future research about implementation of Industry 4.0, across the boards among many industrial sectors.


Author(s):  
Roderick Walden ◽  
Stefan Lie

The adoption of new technology is key for any manufacturer wanting to stay relevant as the world transitions to Industry 4.0. The advance of additive manufacturing (AM) technologies—an important element of Industry 4.0—has become part of a globally accepted reality. However, conventional design practice and knowledge generation inside a manufacturing firm must evolve. Technology-driven innovation must embrace knowledge-directed design work that is aimed at forecasting and utilizing the potential of new technologies. The chapter includes two projects, both of which were manufactured using additive manufacturing laser sintering technology. Analysis of the projects positions them at either end of a wider spectrum of product design practice that more aptly captures the way design and industry must operate for technology-driven innovation and Industry 4.0. A place for conventional design for manufacture remains though the case studies indicate differences in the setting of values to inform practice, requiring new methods for creating and managing design knowledge in the future.


2019 ◽  
Vol 31 (5) ◽  
pp. 1117-1141 ◽  
Author(s):  
Lisa Bosman ◽  
Nathan Hartman ◽  
John Sutherland

Purpose Investing in Industry 4.0 is an important consideration for manufacturing firms who strive to remain competitive in this global economy, but the uncertainty and complexity of where to focus technology investments is a problem facing many manufacturers. The purpose of this paper is to highlight a region of manufacturing firms in the Midwest USA to investigate the role of firm size, access to funds and industry type on decision to invest in and deploy various Industry 4.0 technologies. Design/methodology/approach A survey was developed, piloted, and deployed to manufacturing companies located in the Midwest USA, specifically, Indiana, USA. A total of 138 manufacturing firms completed the full survey. The survey participants were requested to rank order the various technology categories with respect to previous historical spending, workforce capabilities and anticipated return on investment. The survey was supplemented with publically available data. Due to the use of rank-order data to identify Industry 4.0 priorities, a non-parametric analysis was completed using the Kruskall Wallis test. Findings The findings suggest that manufacturers with less than 20 employees and/or less access to funds (sales less than $10m) prioritize digital factory floor technologies (e.g. technology directly impacting productivity, quality and safety of manufacturing processes). Larger manufacturers with 20 or more employees and/or access to more funds (sales greater than or equal to $10m) prioritize enterprise support operations technologies. Originality/value Research studies and reports tend to lump manufacturing’s perspective of Industry 4.0 into one homogenous group, and rarely acknowledge the limited participation of “smaller” Small and medium-sized enterprises, which account for the far majority of manufacturing firms in the USA. The value of this study is on the “novelty of approach,” in that the data collection and analysis focuses on heterogeneity of manufacturing firms with respect to size, access to funds and industry type. The findings and recommendations are beneficial and relevant to organizations supporting Industry 4.0 efforts through workforce development and economic development initiatives.


Author(s):  
Tri Wisnuasih Pratiwi

The purpose of this article examines changes in the technological capabilities of the supplier firms in the automotive sector after the introduction of Industry 4.0. The Industry 4.0 policy has recently been introduced to revive the manufacturing industry and promote competitiveness in the global market. Questionnaire data were collected from 32 supplier firms of the automotive component industry in Indonesia. The questionnaire was designed to measure variables, including production, investment, innovation, and linkage capabilities. The result shows that the Indonesian supplier firms, mainly large firms, are engaged in Industry 4.0, which affects their capabilities. Production capabilities have been improved among most firms, including large, small, and medium enterprises. There is an improvement in the volume of production and the quality of products. However, Indonesian small and medium firms acknowledged the limitation of investment and innovation capabilities. Compared with large firms, small and medium firms have limited resources that hinder them from investing in technology or human capital. During the introduction of advanced technologies, supplier firms' linkage relationship and their customers remain relatively stagnant. Moreover, in terms of linkages, in which the arrangement between assemblers and suppliers has been set, the automotive firms are highly independent.


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