Transition Towards More Circular Manufacturing Systems : The prerequisites for a successful progression with the support of Industry 4.0

Abstract: As the awareness of the impact of human activities on the environment, economy, and society has been brought to spotlight during the last decades, sustainable development has gained ever-increasing attention around the world. While industrial revolutions are critical for the efficiency of meeting customer needs, it is also crucial to address and reverse the depletion of Earth’s resources. That is why the concept of circular economy has been introduced and implemented in the manufacturing sector, which aims for a shift in paradigm towards closed-loop “systems that are restorative or regenerative by intention and design”. However, while bringing forward an amplitude of opportunities, there are challenges and barriers in the implementation of the principles of circular economy in manufacturing systems. This is where another area of science can contribute: Industry 4.0. Industry 4.0 refers to the incorporation of technological advancements in all stages of the life cycle to provide meaningful and real-time information, in order to aid decision-making regarding different functions of the manufacturing systems, i.e., business model, product design, and supply chain. It has been proven in literature that there are major opportunities in merging Industry 4.0 with circularity principles. However, there is a research gap on what the prerequisites are for a successful transition towards a more circular manufacturing system with the support of digital technologies. This research attempts to fill in this gap by conducting a qualitative study, interviewing practitioners and academics involved in real-life cases of such transitions. The study contributes to the existing body of knowledge by suggesting a list of seventeen prerequisites, categorised into three themes of cultural, organisational and business-related, and technical prerequisites. The main audience of this study is the manufacturing companies who want to increase their chances of success when embarking on a transition towards more circular manufacturing systems.