Revolutionizing manufacturing: A framework for Industry 4.0

A study by Bingjie Ding, Xavier Ferràs Hernández & Núria Agell Jané, which appeared in the operations management journal Production Planning & Control, reveals that Industry 4.0 — which transforms traditional manufacturing systems into intelligent models using technology solutions such as 3D printing or AI — supports both lean and agile manufacturing systems.  

In lean manufacturing systems, which focus on reducing waste and maximizing productivity using mass production methods, the technology enhances cost competitiveness. In agile manufacturing systems, which favor flexible and responsive models that allow dynamic responses to changes in demand, it improves flexibility. 

New technologies can connect lean and agile systems to achieve greater cost-efficiency and flexibility

In the study — the first of its kind — the authors conducted a systematic literature review to identify the potential benefits of adopting Industry 4.0 technologies in existing lean or agile manufacturing systems. They also examined the possibilities of overcoming the trade-offs between changing market demand and manufacturing costs, and asked whether lean and agile productions could co-exist within the same structure. 

The results of the research reveal that Industry 4.0 technologies can and do connect lean and agile systems to achieve simultaneous cost-efficiency and flexibility.  

A framework for Industry 4.0

The authors have developed a six-step framework that describes the relationship between the systems and will help managers implement the findings into organizational practice: 

1. Industry 4.0 supports agile manufacturing 

Industry 4.0 technologies can support and further enhance the agile manufacturing system. The research classified six Industry 4.0 technology agility enablers that help manufacturers achieve agility:  

• Smart manufacturing systems that revolve around machine-to-human collaboration will help to achieve agility, interoperability, configurability, programmability and protectability. 
• Agile and efficient manufacturing resource allocation that enables companies to cope with market change. 
• Enhanced flexibility with manufacturing control systems. 
• Flexibility in data management (collection and conversion). 
• Collaborative relationships between humans and machines to facilitate design change during development. 
• Reduce time to market with innovative product development processes. 

2. Agile manufacturing facilitates industry 4.0 

A well-established agile manufacturing system enhances the implementation of Industry 4.0 technologies.  

The study’s results illustrate that companies that embrace agility and are able to implement rapid reconfiguration of labor and material resources are more likely to use manufacturing agility as a foundation for developing Industry 4.0 technologies.  

3. Industry 4.0 and agile manufacturing integration improves competitiveness 

The authors conclude that the integration of Industry 4.0 technologies and agile manufacturing mainly enhances cost-competitiveness in performance.  

4. Industry 4.0 supports lean manufacturing 

Industry 4.0 technologies can support and further develop lean manufacturing practices. 

During product development, manufacturing technologies that can build bespoke products with a short lead time, such as 3D printing, are a key contributor to Industry 4.0 in lean management systems. The use of innovations such as big data allows manufacturers to provide more tailored products and solutions.  

5. Lean manufacturing facilitates Industry 4.0 

Well-established lean manufacturing practices facilitate the implementation of Industry 4.0 technologies.  

The authors’ assessment found that companies that embrace and implement lean practices are also more likely to adopt Industry 4.0 technologies. Conversely, those without established, robust design and improvement practices are less likely to adopt new technologies. The results also showed that, when combined with Industry 4.0, lean production leads to improvements in operational performance.  

6. Industry 4.0 and lean manufacturing integration improves competitiveness 

The authors conclude that the integration of Industry 4.0 technologies and lean manufacturing mainly enhances cost-competitiveness in performance.  

Coexistence for improvement 

This framework, say its authors, illustrates how both agile and lean manufacturing systems can co-exist in one system if Industry 4.0 is present as the key infrastructure.  

The Internet of Things (IoT), cloud computing, 3D printing and artificial intelligence are already common within manufacturing. Implementing these and other increasingly accessible Industry 4.0 technologies could allow manufacturers to produce competitive, responsive and innovative products — without the trade-offs.