Lean and Industry 4.0 - Synergies and Challenges

Abstract: The purpose of this study is to investigate the relationship of two significant concepts withinthe manufacturing industry. Namely, the widely popular Lean production and the arising Industry 4.0. The lack of a common framework concerning their relationship requires further exploration, as stated by several researchers. For companies to stay competitive within a changing market it is of importance to adapt to new technologies, indicating that the understanding of this relationship is essential, as Lean production is extensively used in industries today. To increase the understanding of the concepts and their relationship three research questions were formulated, as followed: RQ 1: How can Industry 4.0 support Lean production? RQ 2: How can Lean production support the implementation of industry 4.0? RQ 3: What are the challenges of implementing Industry 4.0 in Lean production? The study was conducted using qualitative research methods such as the narrative literature review and thematic analysis, allowing for the identification of themes and structuring of the study in a narrative approach. Second-hand data was collected through academic databases using search terms highly relevant to the research questions. The theoretical framework of the study provides a foundation for the understanding of the concepts. Whereas the results are centered around the relationship of Industry 4.0 and Lean production with themes relevant to the research questions and subthemes to follow. The analysis highlights important aspects of the results in relation to the theoretical framework, while also discovering insights connecting the research questions together. The conclusion presents aspects of how Industry 4.0 technologies can support Lean production through factors such as increased continuous improvement, support of people, improved JIT, Kanban, maintenance and communications. Where the general benefits will be productivity, quality and speed of introducing new products, adapting to high variability of market demand. Furthermore, describing how Lean production can support the implementation of Industry 4.0, as the degree of Lean maturity directly influences the efficiency of Industry 4.0 implementation. The employment of Lean principles such as continuous improvement, focus on people and standardization can result in a more effective implementation and utilization of Industry 4.0. Challenges of implementing Industry 4.0 in Lean production such as the risk of counterproductive implementation because of the lack of common framework, limitations of certain Lean practices, Lean professionals and ICT professionals limited knowledge of eachother's fields and the understanding of how to apply Industry 4.0 based on lean principles. Lastly, recommendations are offered for companies aspiring to implement Industry 4.0, as they should evaluate their current level of Lean maturity in order to understand when it is most efficient to incorporate the new technologies. Companies seeking to aid their Lean objectives should concentrate on technologies such as IoT and CPS as they seem to have the most positive impact on Lean. In addition, recommending further research regarding the relationship of Industry 4.0 readiness and Lean maturity, exploring which degree of Lean maturity to efficiently integrate and utilize certain Industry 4.0 technologies and when to implement certain Industry 4.0 technologies to aid the advancement of Lean maturity.