Analyzing Industry 4.0 Models With Focus On Lean Production Aspects
Analyzing Industry 4.0 Models With Focus On Lean Production Aspects
Since the beginning of the first Industrial Revolution in the middle of the 18th century
and the development of steam engines as well as the increased use of hydropower,
strong efforts have been made by industrial nations such as Germany or the United
States of America to create a basis for their economy’s growth [1]. One of the most
important foundations was and still is the linking of value chains within a factory and
even beyond the companies’ borders [2]. To achieve this in an appropriate way still large
planning effort is necessary which can be supported by lean management concepts.
However, these concepts can only partially deal with the challenges of appropriate
linking value chains. When focusing lean management especially in light of the ongoing
digitalization of business the need for new and adequate forms of communication in
order to support these value chains or even whole value networks within and throughout
all partners in the value networks still emerges up to date [2]. Hence, the implementation
of lean management concepts is not primarily based on technical solutions, which are
nevertheless elementary, but rather on structures in the form of architectures and stan-
dards that simplify and standardize business processes.
However, considering the evolution of technology, digitalization provides manifold
opportunities to support or even renew business processes. These advanced techno-
logical opportunities, especially the merging of the physical with the digital world,
result in new fundamental paradigm shifts affecting all industry sectors. Companies
must handle global digital networks, improve automation of individual or even of all
business processes, and reengineer existing business models to gain momentum in
digital innovation. The prevailing and steady high dynamics in everyday business show
that constant changes and adjustments (to which also digitalization belongs) will be no
exception, but rather the rule in the future economy [3–6].
To appropriately deal with this, adjusted management and communication concepts
have become highly important. In broad parts of society, the Internet of Things
(IoT) has already established itself as an interlinked communication network to connect
people, “things” and also whole value chains. Examples include package tracking, vital
data logging via Smart watch or Smart Home control within the domestic environment.
This development is accompanied by increasingly short and individual life cycles of
products which consequently lead to new production requirements. Transferring the
approaches of IoT to companies resulted in the concept of Industry 4.0 by connecting
especially the production itself with the internet; leading to an increasing digitization of
products and systems associated with their interconnectedness [7–9].
An analysis using the “Google Trends” tool (Fig. 1) shows that the interest in the
field of Industry 4.0 has never been as significant as in the last couple of years. This
also indicates the increasing international perception of the term Industry 4.0.
However, especially for those companies willing to use/integrate Industry 4.0
aspects in their production this is not a trivial task. Therefore, to support companies
acting in the field of Industry 4.0 different reference models, frameworks or Industry
4.0 architectures have emerged. Using these “tools” should enable companies to
structure their business processes appropriate regarding Industry 4.0 requirements.
This is where the present paper comes in. As extended paper of Leyh et al. [10] we
set up a study to analyze selected architectural/reference models of Industry 4.0.
Moreover, those models should be characterized according to the basic principles of
lean management/lean production since these approaches offer since the 1980’s
appropriate measures to optimize production. Thus, in our opinion, those principles
should be addressed by/included in Industry 4.0 models as well. Our study was driven
by two research questions:
Q1: What organizational and technical reference models for Industry 4.0 exist?
Q2: What relationship can be established between the encountered models and Lean
Production?
116 C. Leyh et al.
100
as a percentage of the total number
Proportion of search queries
80
60
40
20
0
2012 2013 2014 2015 2016 Years
Industrie 4.0 Industry 4.0
Fig. 1. Search queries for the terms “Industrie 4.0” and “Industry 4.0” on Google since 2012
2 Conceptual Background
Networked/linke
d and
Use of communicating
electronics (enterprise)
Introduction of assembly and IT systems using
work-sharing for automation Internet
mass production purposes technology
Introduction of
mechanical using electric
production energy Starting at the
Starting in the
plants using mid of the 20th beginning of the
water and steam century 21st century
power Starting at the
end the 19th
century
Starting in mid
of the 18th
century
A universal definition for the term Industry 4.0 does not exist. Therefore, we
deduced a working definition to serve as the foundation for our research which we also
used in other related Industry 4.0 studies of ours (e.g. [3, 8]):
Industry 4.0 describes the transition from centralized production towards one that is very
flexible and self-controlled. Within this production, the products and all affected systems, as
well as all process steps of the engineering, are digitized and interconnected to share and pass
information and to distribute this along the vertical and horizontal value chains and beyond in
extensive value networks.
However, the fact that companies have not yet implemented many parts of Industry
4.0 is shown in Table 1.
Benefits for
high incremental fundamental high
the company
BPR
Management
commitment
the company
Impact on
TQM/
Lean Mgt.
Kaizen
low low
The term Kaizen describes the continuous improvement process, which never ends
and the sum of the changes contributes to the long-term success of the company. The
Total Quality Management (TQM) is also leads to a long-term change in values of the
entire workforce, which contributes to process improvement. The approach of Business
Process Reengineering (BPR) requires the highest management deployment but brings
the greatest benefit to the company at the same time. It refers to the radical change and
a fundamental reorganization of processes with the aim of achieving greater synergies
and the avoidance of waste. For the reorganization, the organizational structure of the
company plays a central role. Due to the size of the changes, it can be assumed that this
approach is only used for major strategic transformations such as the introduction of
completely new product ranges, a fundamental reorientation of the company or even a
structural change in the entire production system [20].
3 Literature Analysis
As shown in Sect. 2 Industry 4.0 and lean management/lean production are both
complex concepts which seem to have some connecting points and similarities. To
investigate these aspects, we set up a study approach to contrast those two concepts.
Since lean production is a mature concept and Industry 4.0 is an emerging topic we set
up a systematic literature review to identify current papers dealing with the aspects of
Industry 4.0. More specifically, a distinction is made between narrative articles and
those that examine statistical and mathematical questions according to [23]. Narrative
articles provide definitions for the most important terms and concepts.
Mathematical-statistical papers provide comprehensive insights into existing research
results and support a more deductive approach [24]. This resulted in a systematic
literature review that is explained in the following subsection. After identifying and
analyzing the Industry 4.0 articles we compared and contrasted identified Industry 4.0
frameworks and models with important aspects and approaches of lean
management/lean production which is discussed later-on.
3.1 Methodology
The systematic literature analysis is intended to answer research question 1 and is based
on four steps according to [25] and [26]:
Step 1 – Selection of databases and search terms: To get a broad overview of the
topic we selected the databases ScienceDirect (www.sciencedirect.com) as well as
Academic Search Complete (www.ebsco.com/products/research-databases/academic-
search-complete) and Business Source Complete (www.ebsco.com/products/research-
databases/business-source-complete). In addition, we used Google Scholar to identify
articles may be not listed in scientific databases. The search fields for the database
search were limited to abstract, title and keywords. The search terms themselves
resulted from a short preliminary search according [26] and were afterwards discussed
with researchers at the respective university institutes. This resulted in the following
search string:
TITLE-ABSTR-KEY(“industrie 4.0” OR “industry 4.0” OR “fourth industrial
revolution” OR “smart factory” OR “digital factory”) and TITLE-ABSTR-KEY
(“framework” OR “scheme” OR “structure” OR “model”)
Step 2 – Implementation of practical screening criteria: With the help of step 2 and
step 3, journal papers, conference papers and reports shall be classified. Considering
the practical screening criteria, no temporal restriction was applied. In addition, the
search was focused on articles in German as well as English, in which a general
reference model for Industry 4.0 (or at least to a large extent Industry 4.0 concepts,
frameworks or approaches) are presented. Therefore, articles were excluded which deal
only indirectly with Industry 4.0 or only with a partial specific aspect of Industry 4.0
such as Big Data and do not classify this into a reference scheme. All identified papers
were transferred in the literature management program Zotero (www.zotero.org).
Afterwards, using the tools functionality a duplication check was performed.
Analyzing Industry 4.0 Models 121
Considering lean production only three articles (Tables 4 and 5 in Appendix, Nos.
4, 6, and 11) are actively addressing those principles and incorporating them into an
Industry 4.0 setting to a full extent (in regard to our criteria). Although lean production
is often seen (as discussed in Sect. 2) as one of the foundations for Industry 4.0 most
related concepts in the identified 31 articles are either taken on only marginal aspects of
lean production or are not at all addressing these principles in combination with
Industry 4.0. However, only one article (Tables 4 and 5, No. 11) out of the mentioned
three articles fosters a production environment and actually incorporates lean pro-
duction principles and approaches in an Industry 4.0 reference model. Also those
authors present those principles as main point of their model.
In the second part of the in-depth analysis of the papers regarding the Industry 4.0
implementation requirements (criteria 8–11) it is noticeable that considering all articles,
that provide a holistic Industry 4.0 model, vertical integration is the main subject in 13
out of those 15 articles. Whereas, the integration and consideration of employees as the
main paper topic is addressed the least. Thus, it can be assumed that the automation and
therefore often the replacement of human labor are often given more emphasis.
However, in the discussion of the concept of Industry 4.0 human replacement is not the
main goal. Moreover, the employees should be qualified to work with the Industry 4.0
technologies and instruments and be a “valuable support and cooperation partner” for
the smart production floor. The aspects of product life cycle management and espe-
cially the consistency of engineering from factory planning to the final stage of the
product life cycle are included and discussed regarding at least a certain
section-by-section consistency in four articles with a really high emphasis (Tables 4
and 5, Nos. 4, 13, 15 and 18). Especially in the description of the Digital Eco-Factory
by Matsuda et al. (Tables 4 and 5, No. 13 and 15) this is especially explained as the
main subject in the production sector. However, this small number of hits shows that
there is still a need for further discussion and higher emphasis of the specific aspect of
Industry 4.0.
Summing this up, we could identify several models and frameworks addressing the
complex field of Industry 4.0 and therefore, provide a first answer to research question
Q1. However, not all models are dealing with this topic in a holistic way but rather
focusing on specific aspects or requirements of Industry 4.0. Hence, a common goal
could be identified throughout all papers. The (explicit or indirect) stated goal is always
to reduce the cost per unit produced. It was also crucial for all models and often
discussed in the papers that for a further development and appropriate implementation
of Industry 4.0, the communication in the three relationships man-man, machine-man
and, above all, machine-machine are seen as especially important. From this, the
machine-machine communication gains an even larger impact since in Industry 4.0
environments this communication and information sharing are the essential foundation
for the autonomous machine decisions. As a first conclusion from these aspects the use
of appropriate information and communication technology (ICT) is a crucial factor in
Industry 4.0 environments as it is also stated by several authors (e.g., [4, 6, 8, 11]).
124 C. Leyh et al.
Appendix
Additional possibility to download the assessment of all articles and the respective ref-
erence list: https://tu-dresden.de/bu/wirtschaft/isih/ressourcen/dateien/isih_team/pdfs_
team/Supplementary-Material.pdf.
Analyzing Industry 4.0 Models 125
Industry 4.0
General criteria implementation
aspects ([9])
Employees as a conductor
Lean production principle
PLCM / consistency of
Horizontal integration
Business application
(H) consideration
Manufacturing
4.0 suitability
environment
in a factory)
engineering
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aspects
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