Lessons learned from Industry 4.0 implementation in the German manufacturing industry

2019 ◽  
Vol 31 (5) ◽  
pp. 977-997 ◽  
Author(s):  
Johannes W. Veile ◽  
Daniel Kiel ◽  
Julian Marius Müller ◽  
Kai-Ingo Voigt

Purpose Industry 4.0 is assumed to yield extensive industry-spanning opportunities. However, exploiting these opportunities requires a targeted implementation of Industry 4.0. The purpose of this paper is to generate a deeper understanding of relevant implementation action. Existing recommendations are mostly general, highly aggregated and difficult to grasp. Yet, specific and concrete actions that need to be taken to accelerate the realization of Industry 4.0 are essential. Design/methodology/approach The article uses 13 semi-structured in-depth expert interviews as the source of empirical data. The interviews were conducted with managers from Industry 4.0-experienced German manufacturing companies. All interviews are analyzed using qualitative content analysis. Findings The study reveals relevant and targeted aspects for Industry 4.0 implementation: the development of Industry 4.0-specific know-how, securing financial resources, integrating employees into the implementation process and establishing an open-minded and flexible corporate culture. Further aspects include comprehensive planning processes, cooperation with external partners, proper handling of data interfaces, interdisciplinary communication, an adaptable organizational structure and data security. Research limitations/implications The paper is limited to German manufacturing enterprises and should be transferred to other industries and countries. Practical implications The study supports managers to effectively implement Industry 4.0 within their organizations and consequently benefit from Industry 4.0 and derives recommendations for future research. Originality/value The paper is among the first to give specific and concrete examples for lessons learned from Industry 4.0 implementation, directly obtained from industrial application.

2019 ◽  
Vol 31 (5) ◽  
pp. 1085-1115 ◽  
Author(s):  
Ting Zheng ◽  
Marco Ardolino ◽  
Andrea Bacchetti ◽  
Marco Perona ◽  
Massimo Zanardini

Purpose The purpose of this paper is to investigate how much the Italian manufacturing companies are ready to be concretely involved in the so-called “Industry 4.0” (I4.0) journey. In particular, this paper focuses on analyzing the knowledge and adoption levels of specific I4.0 enabling technologies, also considering how organizations are involved and which are the main benefits and obstacles. Design/methodology/approach A descriptive survey has been carried out on a total of 103 respondents related to manufacturing companies of different sizes. Data collected were analyzed in order to answer five specific research questions. Findings The findings from the survey demonstrate that Italian manufacturing companies are in different positions in their journey toward the I4.0 paradigm, mainly depending on their size and informatization level. Furthermore, not all the business functions are adequately involved in this transformation and their awareness about this new paradigm seems quite low because of the absence of specific managerial roles to guide this revolution. Finally, there are strong differences concerning both benefits and obstacles related to the adoption of I4.0 paradigm, depending on the technology adoption level. Research limitations/implications Future research should focus on developing case studies about pilot I4.0 practitioners in order to understand the root cause of successful cases. Both managerial and practical references should be developed, helping Italian manufacturing enterprises to consolidate and strengthen their position in global competitive market. Finally, it would be interesting to carry out the same study in other countries in order to make comparisons and suitable benchmark analyses. Originality/value Despite scholars have debated about the adoption of technologies and the benefits related to the I4.0 paradigm, to the best of authors’ knowledge, only a few empirical surveys have been carried out until now on the adoption level of I4.0 principles in the manufacturing sector of a specific country.


2018 ◽  
Vol 11 (2) ◽  
pp. 174-201 ◽  
Author(s):  
Gabriella Engström ◽  
Kristina Sollander ◽  
Per Hilletofth ◽  
David Eriksson

PurposeThe purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.Design/methodology/approachThis paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.FindingsThe findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.Research limitations/implicationsThe study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.Practical implicationsThe drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.Originality/valueThis is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.


2015 ◽  
Vol 21 (3) ◽  
pp. 665-691 ◽  
Author(s):  
Saja Ahmed Albliwi ◽  
Jiju Antony ◽  
Sarina Abdul halim Lim

Purpose – The purpose of this paper is to explore the most common themes within Lean Six Sigma (LSS) in the manufacturing sector, and to identify any gaps in those themes that may be preventing users from getting the most benefit from their LSS strategy. This paper also identifies the gaps in current literature and develops an agenda for future research into LSS themes. Design/methodology/approach – The following research is based on a review of 37 papers that were published on LSS in the top journals in the field and other specialist journals, from 2000 to 2013. Findings – Many issues have emerged in this paper and important themes have cited which are: benefits, motivation factors, limitations and impeding factors. The analysis of 19 case studies in the manufacturing sector has resulted in significant benefits cited in this paper. However, many gaps and limitations need to be explored in future research as there have been little written on LSS as a holistic strategy for business improvement. Practical implications – It is important for practitioners to be aware of LSS benefits, limitations and impeding factors before starting the LSS implementation process. Hence, this paper could provide valuable insights to practitioners. Originality/value – This paper is based on a comprehensive literature review which gives an opportunity to LSS researchers to understand some common themes within LSS in depth. In addition, highlighting many gaps in the current literature and developing an agenda for future research, will save time and effort for readers looking to research topics within LSS.


2021 ◽  
Vol 92 ◽  
pp. 04006
Author(s):  
Petra Domanižová ◽  
Nikola Janíčková

Research background: Industry 4.0, also known as the Fourth Industrial Revolution, describes the digitisation of the manufacturing industry. The transition to 4.0 is crucial for manufacturing companies to maintain a competitive advantage and take advantage of new opportunities. This article contributes to research with a framework for the description, analysis, and classification of Canvas B.M. for 4.0. Purpose of the article: The following report provides a review of the literature to expand our knowledge of how Industry 4.0 affects business models. This article aims to specify and map the level of knowledge about the Canvas business model and its application in the new revolutionary era of the digital world in the manufacturing industry 4.0. The findings deepen the understanding of how 4.0 affects the manufacturing industry, B.M., and the behaviour of the current economic environment. Methods: A literature review. Then the comparison of the author’s views on the use of the business model, innovation, and adaptation under the influence of digitisation. The literature survey was conducted in articles indexed in the Web of Science and Scopus to carry out a critical analysis of collected data and the exposition of some conclusions and future research opportunities. Findings & value added: A lot of research in the field of industry 4.0 using Canvas B.M., but very often, the view of the Czech business environment is neglected. Focusing on this area may lead to future research. This literary review focuses on the latest literature.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nóra Obermayer ◽  
Tibor Csizmadia ◽  
Dávid Máté Hargitai

Purpose The purpose of this paper is to discover how Hungarian manufacturing companies interpret technology and human resources as driving forces and barriers in terms of Industry 4.0 implementation. Design/methodology/approach The authors conducted 23 semi-structured interviews with corporate leaders and applied qualitative content analysis using Atlas.ti software. Findings The authors formulated a new definition of Industry 4.0 which emphasises the role of human factors. The authors identified driving forces (efficiency with speed/information flow/precision) and barriers (technology compatibility, human fears and lack of digital skills) in terms of Industry 4.0 implementation and developed the DIGI-TEcH performance management dimensions. Research limitations/implications Comparison with other countries is limited. Given the exploratory and qualitative nature, further quantitative research would be needed to generalise results. Finally, only manufacturing companies are examined. Practical implications It provides empirical evidence to practitioners to understand concerns about technology and human resource in terms of Industry 4.0 implementation. In addition, corporate performance management can be extended by the developed DIGI-TEcH dimensions. Originality/value This paper reveals key evidence for the uptake of technology and human factors in terms of Industry 4.0 implementation and their impacts on corporate operation and performance. It also provides an insight into a specific country context, which can be a useful benchmark for other Central and Eastern European countries.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hung Nguyen ◽  
George Onofrei ◽  
Dothang Truong

PurposeResearch has extensively focused on the cultural differences in supply chain collaboration while neglecting the importance of cultural similarities and compatible goals among supply chain members. With the rise of global supply chain network, the choice of supply chain orientation is critical. This study argues that performance differences between these configurations highlight managerial implications for sustainable development.Design/methodology/approachDrawing from uncertainty reduction and cognitive social capital theories, this study developed a taxonomy of manufacturing firms based on process alignment between cultural compatibility and supply chain communication. The empirical data used in this study were drawn from the Global Manufacturing Research Group (GMRG) survey project, with data collected from 680 manufacturing companies, across various industry sectors and countries.FindingsThere appeared to be consistent three major configurations: the Proactive, the Initiative and the Reactive. Manufacturers distanced themselves based mainly on communication with customers on events and proprietary information. Communication-cultural compatibility taxonomies influence differently on operations and financial performance. The Initiative, who excelled in communication practices gained significant improvement in efficiency and delivery measures. While Reactive lagged, Proactive aligned in both capabilities to experience higher payoffs in operational and financial measures. The findings offer a step-by-step approach where manufacturers intensify communication with partners for better efficiency and delivery measures, then align cultural practices to obtain financial, quality and innovation performance.Research limitations/implicationsIt will be fruitful for future research to examine the evolution of longitudinally. A comparison between developed and developing economies will be of interest.Practical implicationsThe findings provide a step-by-step decision-making process for supply chain communication and offer guidance especially for global supply chain managers.Originality/valueThis study adds greater comprehensiveness and richness to the information exchange literature on performance by process aligning to enhance cultural compatibility.


Sensors ◽  
2020 ◽  
Vol 20 (23) ◽  
pp. 6783
Author(s):  
Tahera Kalsoom ◽  
Naeem Ramzan ◽  
Shehzad Ahmed ◽  
Masood Ur-Rehman

The evolution of intelligent manufacturing has had a profound and lasting effect on the future of global manufacturing. Industry 4.0 based smart factories merge physical and cyber technologies, making the involved technologies more intricate and accurate; improving the performance, quality, controllability, management, and transparency of manufacturing processes in the era of the internet-of-things (IoT). Advanced low-cost sensor technologies are essential for gathering data and utilizing it for effective performance by manufacturing companies and supply chains. Different types of low power/low cost sensors allow for greatly expanded data collection on different devices across the manufacturing processes. While a lot of research has been carried out with a focus on analyzing the performance, processes, and implementation of smart factories, most firms still lack in-depth insight into the difference between traditional and smart factory systems, as well as the wide set of different sensor technologies associated with Industry 4.0. This paper identifies the different available sensor technologies of Industry 4.0, and identifies the differences between traditional and smart factories. In addition, this paper reviews existing research that has been done on the smart factory; and therefore provides a broad overview of the extant literature on smart factories, summarizes the variations between traditional and smart factories, outlines different types of sensors used in a smart factory, and creates an agenda for future research that encompasses the vigorous evolution of Industry 4.0 based smart factories.


2019 ◽  
Vol 2 (1) ◽  
pp. 157-179
Author(s):  
Guidong Wang

Purpose With the increase of state capital, corporate total factor productivity (TFP) has a tendency to jump up at first and then slowly decrease. Generally, no significant “productivity paradox” can be observed in China’s manufacturing industry. With the increase of export density, corporate TFP also shows a trend of initial jump growth and subsequent slow decline. This paper aims to discuss these issues. Design/methodology/approach Using the 1996–2013 China Industrial Enterprise Database, this paper studies the monopolistic behavior of Chinese manufacturing enterprises through the measurement of TFP and corporate monopoly power. Findings Results show that China’s manufacturing monopoly enterprises are generally innovation-oriented rather than rent-seeking. However, there are certain differences between diversified types of monopoly enterprises: the ones with state capital are more inclined to innovate than those without, whereas the ones with export delivery value are more inclined to seek rent than those without. Originality/value Therefore, the government should implement differentiated policies for diversified types of monopoly enterprises, and do so in a targeted manner fully reflecting the containment of rent-seeking and the encouragement of innovation.


2016 ◽  
Vol 17 (1) ◽  
pp. 148-167 ◽  
Author(s):  
Mariachiara Barzotto ◽  
Giancarlo Corò ◽  
Mario Volpe

Purpose – The purpose of this paper is twofold. First, to explore to what extent being located in a territory is value-relevant for a company. Second, to understand if a company is aware of, and how it can sustain, the territorial tangible and intangible assets present in the economic area in which it is located. Design/methodology/approach – The study presents an empirical multiple case-study, investigating ten mid-/large-sized Italian companies in manufacturing sectors. Findings – The results indicate that the sampled manufacturing companies are intertwined with the environment in which they are embedded, both in their home country and in host ones. The domestic territorial capital has provided, and still provides, enterprises with workers endowed with the necessary technical skills that they can have great difficulty in finding in other places. In turn, companies support territorial capital generation through their activities. Research limitations/implications – To increase the generalisability of the results, future research should expand the sample and examine firms based in different countries and sectors. Practical implications – Implications for policy makers: developing effective initiatives to support and guide a sustainable territorial capital growth. Implications for managers and investors: improving managerial and investors’ decisions by disclosing a complete picture of the enterprise, also outside the firm boundaries. Originality/value – The study contributes to intangibles/intellectual capital literature by shedding light on the importance of including territorial capital in a company’s report to improve the definition of the firm’s value. Accounting of the territorial capital would increase the awareness of the socio-economic environment value in which companies are located and its use.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Diego Matricano ◽  
Laura Castaldi ◽  
Mario Sorrentino ◽  
Elena Candelo

PurposeOrganizational culture plays a central role when dealing with the issue of digital business transformation (DBT). Managers handling a DBT and involved in digital strateging are expected to modify the organizational culture of firms to make it more fitting with the paradigm of digital economy and having more chance of success. Thus, it is noteworthy to inspect the role they can have over DBTs. Accordingly, the purpose of this paper is to investigate the behavior that managers assume when they approach DBTs by investigating whether they act as mentors/facilitators or entrepreneurs/innovators, as coordinators or decision makers.Design/methodology/approachTo achieve the above purpose, ten case studies about manufacturing firms have been selected. Case studies, retrieved by the Digital Innovation Observatories of the School of Management of the Politecnico di Milano, are studied and analyzed by means of a qualitative content analysis on textual data. This allows getting specific insights into organizational culture before and after DBT and about the role played by managers.FindingsAchieved results disclose that managers need to modify the organizational culture of their firms to handle a successful DBT. However, firms can assume different organizational culture and thus the role assumed by managers handling a DBT can change as well.Originality/valueTo the authors knowledge, this paper is among the first that aim to investigate the role that mangers assume when handling DBTs. In particular, originality lies in the fact that assumed roles are rebuilt in reference to their ability to modify organizational culture.


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