Effects of Lean Tools and Industry 4.0 technology on productivity: An empirical study

Purpose:

In the 4th Industrial Revolution era, companies are increasingly adopting strategies to maximize the potential of Industry 4.0 technologies. Many organizations integrate established Lean and Six Sigma tools to support the effective deployment of these innovations. Although existing literature explores the interplay between Industry 4.0 and Lean methodologies, there is limited focus on their direct impact on productivity. This study bridges that gap by analyzing how Industry 4.0 technologies and Lean and Six Sigma practices influence overall productivity, emphasizing two dimensions: operational efficiency, achieved through process optimization and waste reduction, and financial performance, centered on profitability and economic sustainability.

Methodology:

The investigation is conducted through an empirical study involving surveys of industrial companies in a central region of Portugal. The analysis of the research results includes the application of statistical tests, such as exploratory factor analysis, and the use of structural equation modeling techniques for confirmatory analysis.

Findings:

The results indicate that Industry 4.0 immediately impacts productivity. On the other hand, the influence of Lean and Six Sigma tools on productivity may not be immediate. Still, when analyzed over a more extensive time, their impact becomes more significant.

Originality/value:

This paper contributes significantly by presenting an empirical study that examines the impact of Lean tools and Industry 4.0 technologies on productivity. While the existing literature mainly consists of literature reviews or empirical analyses linking Lean tools and Industry 4.0, this study uniquely addresses the connection between these two concepts and productivity through an empirical study. Additionally, the findings emphasize that the influence of both Lean tools and Industry 4.0 on productivity is contingent on the duration since their implementation.