scholarly journals A Comprehensive Framework for the Analysis of Industry 4.0 Value Domains

2019 ◽  
Vol 11 (10) ◽  
pp. 2960 ◽  
Author(s):  
César Martínez-Olvera ◽  
Jaime Mora-Vargas
Keyword(s):  
Value Creation ◽  
Mass Customization ◽  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Dynamics Model ◽  
Sustainability Issue ◽  
Managerial Implications ◽  
Medium Enterprises ◽  
Comprehensive Framework ◽  
Value Creation Process

Industry 4.0 aims to ensure the future competitiveness of the manufacturing industry by providing Companies with the ability to react to rapid product changes and disturbances, efficiently and reliably, through re-configurability. In this paper, we explore the value creation process within Industry 4.0, with special emphasis on its relationship with mass customization and the sustainability issue. Based on the identified research gaps and opportunities derived from a literature review of relevant concepts, we propose the development of the Customer-Product-Process-Resource (CPPR) 4.0, a comprehensive framework that puts the value proposition-creation-capture cycle proper of an Industry 4.0 environment, in the context of a manufacturing organization’s customer-product-process-resources views. The usefulness of the proposed framework is exemplified by using it to derive system dynamics model of the mass customization paradigm. A discussion of the managerial implications of the obtained results for both the sustainability and the case of Small-to-Medium Enterprises (SMEs) is offered at the end of the paper.

scholarly journals An Entropy-Based Formulation for the Support of Sustainable Mass Customization 4.0

2020 ◽  
Vol 2020 ◽  
pp. 1-21
Author(s):  
César Martínez-Olvera
Keyword(s):  
Energy Consumption ◽  
Mass Customization ◽  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Discrete Event ◽  
Energy Productivity ◽  
Event Simulation ◽  
Managerial Implications ◽  
Optimal Resource ◽  
Information And Communication

Industry 4.0, an information and communication umbrella of terms that includes the Internet of Things (IoT) and cyber-physical systems, aims to ensure the future of the manufacturing industry competing in a proper environment of mass customization: demand for short delivery time, high quality, and small-lot products. Within this context of an Industry 4.0 mass customization environment, success depends on its sustainability, where the latter can only be achieved by the manufacturing efficiency of the smart factory-based Industry 4.0 transforming processes. Even though Industry 4.0 is associated with an optimal resource and energy productivity/efficiency, it becomes necessary to answer if the integration of Industry 4.0 elements (like CPS) has a favorable sustainability payoff. This requires performing energy consumption what-if analyses. The original contribution of this paper is the use of the entropy-based formulation as an alternative way of performing the initial steps of the energy consumption what-if analyses. The usefulness of the proposed approach is demonstrated by comparing the results of a discrete-event simulation model of mass customization 4.0 environment and the values obtained by using the entropy-based formulation. The obtained results suggest that the entropy-based formulation acts as a fairly good trend indicator of the system’s performance parameters increase/decrease. The managerial implications of these findings are presented at the end of this document.

scholarly journals An Entropy-Based Formulation for Assessing the Complexity Level of a Mass Customization Industry 4.0 Environment

2020 ◽  
Vol 2020 ◽  
pp. 1-19 ◽  
Author(s):  
César Martínez-Olvera
Keyword(s):  
Mass Customization ◽  
Industry 4.0 ◽  
Discrete Event ◽  
Complexity Measures ◽  
Event Simulation ◽  
Manufacturing Complexity ◽  
Original Contribution ◽  
Managerial Implications ◽  
Product Customization ◽  
System Operating

It has been stated that Industry 4.0’s goal is, among others, the sustainable success in a market characterized by exigent and informed consumers demanding personalized products and services, where the level of manufacturing complexity increases with level of product customization. Even though different manufacturing complexity measures have been developed, there seems to be a lack of a comprehensive metric that address both the mass customization variety-induced complexity, and the complexity derived from the adoption of the Industry 4.0 paradigm. The main original contribution of this paper is the development of an entropy-based (entropic) formulation to address this last issue. Its validity and usefulness is put to the test via a discrete-event simulation study of a mass customization production system operating within an Industry 4.0 context. Our findings show that the entropic formulation acts as a fairly good trend indicator of the system’s performance parameter increase/decrease, but not as an estimator of the final values. A discussion of the managerial implications of the obtained results is offered at the end of the paper.

scholarly journals Logistics Response to the Industry 4.0: the Physical Internet

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Marinko Maslarić ◽  
Svetlana Nikoličić ◽  
Dejan Mirčetić
Keyword(s):  
Value Creation ◽  
Value Chain ◽  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Business Models ◽  
Decision Makers ◽  
Logistics System ◽  
Global Logistics ◽  
Physical Internet ◽  
Organization Of Production

Abstract Today’s mankind and all human activities are constantly changing and evolving in response to changes in technology, social and economic environments and climate. Those changes drive a “new” way of manufacturing industry. That novelty could be described as the organization of production processes based on technology and devices autonomously communicating with each other along the value chain. Decision-makers have to address this novelty (usually named as Industry 4.0) and try to develop appropriate information systems, physical facilities, and different kind of technologies capable of meeting the future needs of economy. As a consequence, there is a need for new paradigms of the way freight is move, store, realize, and supply through the world (logistics system). One of the proposed solutions is the Physical Internet, concept of open global logistics system which completely redefines current supply chain configuration, business models, and value-creation patterns.However, further detailed research on this topic is much needed. This paper aims to provide a balanced review of the variety of views considered among professionals in the field of Physical Internet with the final aim to identify the biggest challenges (technological, societal, business paradigm) of proposed new logistics paradigm as a practical solution in supporting Industry 4.0.

scholarly journals Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small & medium enterprises: a PLS-model

2021 ◽  
Vol 2 (13 (110)) ◽  
pp. 55-66
Author(s):  
Ni Luh Putu Hariastuti ◽  
Pratikto Pratikto ◽  
Purnomo Budi Santoso ◽  
Ishardita Pambudi Tama
Keyword(s):  
Value Creation ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Critical Phenomenon ◽  
Sustainable Manufacturing ◽  
Production Equipment ◽  
Equation Modeling ◽  
Sustainable Value ◽  
Medium Enterprises

Sustainable manufacturing is a critical phenomenon in the process of creating sustainable value. This is a way to increase innovation and resource quality. On the other hand, the partnership strategy is an important factor in efforts to improve company performance. The involvement of the partnership strategy is one of the factors that strengthen the achievement of sustainable values. Furthermore, this affects the sustainability of a manufacturing company's competitiveness, including Small and Medium Enterprises (SMEs). In this study, we focus on creating sustainable value and the role of partnership strategies in improving the business performance of SMEs engaged in the metal manufacturing industry. The Partial Least Squares (PLS) approach to Structural Equation Modeling (SEM) is used to evaluate relationships and effects based on survey data from small and medium industries. The results show that the creation of sustainable value, including products, processes, production, equipment, organization, and human values, has a significant impact (β=0.522; ρ<0.001) on increasing the competitiveness of small and medium enterprises. The effect of sustainable value creation on sustainable competitiveness is fully moderated by the partnership strategy (β=0.179; ρ=0.03), especially in the technology & equipment, and human resources. Apart from being a moderating variable, the partnership strategy has also been shown to significantly act as a partial mediating variable (β=0.135; ρ<0.05) for sustainable value creation in enhancing competitiveness. The partnership strategy's simultaneous involvement proves that the partnership strategy plays an important role in value creation to increase the competitiveness of sustainable manufacturing SMEs

scholarly journals Firms' Technological Capabilities toward the Introduction of Industry 4.0: The Case of Supplier Firms in the Indonesia Automotive Industries

2021 ◽  
Vol 5 (1) ◽  
pp. 94-105
Author(s):  
Tri Wisnuasih Pratiwi
Keyword(s):  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Global Market ◽  
Technological Capabilities ◽  
Large Firms ◽  
Quality Of Products ◽  
Medium Enterprises ◽  
Medium Firms

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.

Critical Success Factors of High Performance Work System (HPWS) Practices: Findings from Malaysian SMEs

2020 ◽  
Vol 11 (1) ◽  
pp. 162-162
Author(s):  
Noor Hassanah Husin ◽  
Nur Naha Abu Mansur ◽  
Nur Naha Abu Mansur ◽  
Beni Widarman Yus Kelana
Keyword(s):  
High Performance ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Success Factor ◽  
Good Reliability ◽  
Work System ◽  
Critical Success ◽  
Innovative Work ◽  
High Performance Work System ◽  
Medium Enterprises

Innovation plays a major role and is a crucial component of the organization’s growth. Creativity and innovation have become increasingly popular as key contributors to firm success in the last few decades or so. The incoming technology of Industrial Revolution 4.0 forced many companies to be innovative to compete in technological era. However, many SMEs are not ready and less innovative. Furthermore, there is lack of research focus on HPWS implementation amongst SMEs indicates that further research must be conducted along these lines. Therefore, this study aim to investigate the effect of high performance work system (HPWS) towards innovative work behaviour of employees in small and medium enterprises. This study used quantitative approach to identify the critical success factor of high performance work systems (HPWS) in Malaysian small and medium enterprises (SME) manufacturing industry. This study used descriptive analysis to analyze the data. Five-point Likert scales items ranging from (1-strongly disagree, 5 – strongly agree) employed for measuring the HPWS. Therefore, the total of 81 items survey questions were adapted to obtain the respondents for SME manufacturing industry. Reliability analysis shows that all the HPWS dimensions have very good reliability with Cronbach’s alpha value range from 0.884 to 0.976. According to Tang et al (2014), Cronbach’s alpha range between 0.70 and 0.80 considered as good reliability whereby 0.80 and 0.90 considered as very good reliability. Result also showed that selective staffing has the highest mean score followed by employee participation, which are 3.951 and 3.833 respectively. This proved that selective staffing is most important critical success factor in the HPWS implementation for Malaysian SME manufacturing industry. Keywords: high performance work system, work engagement, innovative work behaviour, small and medium enterprise.

scholarly journals Differences in Disclosure of Integrated Reports at Energy and Non-Energy Companies

Energies ◽  
2021 ◽  
Vol 14 (5) ◽  
pp. 1253
Author(s):  
Maja Piesiewicz ◽  
Marlena Ciechan-Kujawa ◽  
Paweł Kufel
Keyword(s):  
Ownership Structure ◽  
Value Creation ◽  
Energy Sector ◽  
Financial Data ◽  
Integrated Reporting ◽  
Creation Process ◽  
And Performance ◽  
Energy Companies ◽  
The Impact ◽  
Value Creation Process

Integrated reports combine financial and non-financial data into a comprehensive report outlining the company’s value creation process. Our objective is to find the completeness of disclosures, which is a crucial aspect of an integrated report’s quality. This study contributes to the integrated reporting examination by identifying quantitative and qualitative gaps when applying Integrated Reporting standards, focusing on the energy sector. We conducted the study on 57 published integrated reports of listed companies in Poland. The content of each report was examined for 49 features divided into eight areas. We identify the strengths and weaknesses of current reporting performance and the impact of the company’s sector on reports’ quality. We noted that there are significant differences among the areas. The major problems concern implementing IIRC’s framework on the connections between the business model and the organization’s strategy, risks, opportunities, and performance. Our research also noted that the level of specific disclosures might be related to a company’s ownership structure. We investigated the significance of differences among companies from the energy and non-energy sectors using statistical methods. As a result of the study, we obtained that disclosures’ completeness depends on the operation sector. The companies in the energy sector publish higher-quality integrated reports than companies in the other sectors.

scholarly journals Next Generation Industrial IoT Digitalization for Traceability in Metal Manufacturing Industry: A Case Study of Industry 4.0

Electronics ◽  
2021 ◽  
Vol 10 (5) ◽  
pp. 628
Author(s):  
Michail J. Beliatis ◽  
Kasper Jensen ◽  
Lars Ellegaard ◽  
Annabeth Aagaard ◽  
Mirko Presser
Keyword(s):  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Careful Consideration ◽  
Added Value ◽  
Shop Floor ◽  
Circuit Boards ◽  
Next Generation ◽  
Road Map ◽  
Industrial Iot ◽  
Production Cycles

This paper investigates digital traceability technologies taking careful consideration of the company’s needs to improve the traceability of products at the production of GPV Group as well as the efficiency and added value in their production cycles. GPV is primarily an electronics manufacturing service company (EMS) that manufactures electronic circuit boards, in addition to big metal products at their mechanics manufacturing sites. The company aims to embrace the next generation IoT technologies such as digital traceability in their internal supply chain at manufacturing sites in order to stay compatible with the Industry 4.0 requirements. In this paper, the capabilities of suitable digital traceability technologies are screened together with the actual GPV needs to determine if deployment of such technologies would benefit GPV shop floor operations and can solve the issues they face due to a lack of traceability. The traceability term refers to tracking the geolocation of products throughout the manufacturing steps and how that functionality can foster further optimization of the manufacturing processes. The paper focuses on comparing different IoT technologies and analyze their positive and negative attributes to identify a suitable technological solution for product traceability in the metal manufacturing industry. Finally, the paper proposes a suitable implementation road map for GPV, which can also be adopted from other metal manufacturing industries to deploy Industry 4.0 traceability at shop floor level.

scholarly journals Factors that Inhibit Sustainable Adoption of Industry 4.0 in the South African Manufacturing Industry

2021 ◽  
Vol 13 (3) ◽  
pp. 1013
Author(s):  
Whisper Maisiri ◽  
Liezl van Dyk ◽  
Rojanette Coeztee
Keyword(s):  
South African ◽  
Education System ◽  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Youth Unemployment ◽  
Small Scale ◽  
The South ◽  
Qualitative Descriptive ◽  
Cultural Construct ◽  
Sub Saharan

Industry 4.0 (I4.0) adoption in the manufacturing industry is on the rise across the world, resulting in increased empirical research on barriers and drivers to I4.0 adoption in specific country contexts. However, no similar studies are available that focus on the South African manufacturing industry. Our small-scale interview-based qualitative descriptive study aimed at identifying factors that may inhibit sustainable adoption of I4.0 in the country’s manufacturing industry. The study probed the views and opinions of 16 managers and specialists in the industry, as well as others in supportive roles. Two themes emerged from the thematic analysis: factors that inhibit sustainable adoption of I4.0 and strategies that promote I4.0 adoption in the South African manufacturing industry. The interviews highlighted cultural construct, structural inequalities, noticeable youth unemployment, fragmented task environment, and deficiencies in the education system as key inhibitors. Key strategies identified to promote sustainable adoption of I4.0 include understanding context and applying relevant technologies, strengthening policy and regulatory space, overhauling the education system, and focusing on primary manufacturing. The study offers direction for broader investigations of the specific inhibitors to sustainable I4.0 adoption in the sub-Saharan African developing countries and the strategies for overcoming them.

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