Modelling the use of Industry 4.0 technologies with lean manufacturing

Abstract

The lean manufacturing approach has the potential to lower production costs and increase productivity through the reduction of various forms of waste. It is evident that lean manufacturing as a business model offers stable financial performance and overall good business performance. The fourth industrial revolution or Industry 4.0 (I4.0) includes the use of evolving technologies such as cloud computing, blockchain technologies, Internet of Things, big data analysis, additive manufacturing, simulation and others. In this paper a thorough analysis of literature is conducted. Based on the findings, a theoretical model for I4.0 technologies application with lean manufacturing is developed. The model depicts an enterprise and the possible solutions for improving business performance with I4.0 technologies and lean manufacturing. The main goal of this paper is to challenge the idea of I4.0 application with the lean approach in order to achieve higher competitiveness. I4.0 technologies often require expensive infrastructure and extensive financial investments, but including lean into the “equation” it is possible to “reap” the benefits of these technologies at a lower cost. The limitations of the model are addressed and future research is proposed.