Implementing industry 4.0 for flexibility, quality, and productivity improvement: technology arrangements for different purposes

Abstract

ABSTRACT Productivity, quality, and flexibility are key production targets pursued by companies that adopt Industry 4.0. However, it is unclear how Industry 4.0 technologies can help achieve these different and sometimes competing targets. This study investigates this relationship through a survey of 92 manufacturers. The study employs Exploratory Factor Analysis to define four main technology arrangements based on 18 Industry 4.0 technologies: Vertical Integration, Virtual Manufacturing, Advanced Manufacturing Processing Technologies, and Online Traceability. Then, independent samples tests were conducted to compare the implementation status of these arrangements when manufacturing flexibility, process quality, and productivity are (or are not) pursued as the main production targets. The results show that Vertical Integration is a general-purpose technology arrangement because it supports all targets. On the other hand, Virtual Manufacturing and Online Traceability are specific-purpose arrangements, adopted especially for flexibility and productivity targets, respectively. Advanced Manufacturing Processing Technologies, in turn, is an integrative-purpose technology arrangement since it is adopted when two competing targets are pursued: productivity and manufacturing flexibility. The study ends with a decision model to implement Industry 4.0 based on the production targets a company may pursue. It shows the interconnection and trade-offs between these production targets and the Industry 4.0 technologies adopted.