An Analysis of Critical Success Factors Using Analytical Hierarchy Process for Implementation of Lean with Industry 4.0 in SMEs

Abstract

AbstractIn the present technological era, small and medium enterprises (SMEs) aim to enhance productivity with improve quality and reduce costs. They are focusing on value-adding activities through lean manufacturing, but there is a need to access technologies through the fourth industrial revolution for overall organization performance. The purpose of this paper is to identify and rank the critical success factors for effective implementation of lean with industry 4.0 in SMEs. The analytical hierarchy process technique is selected to identify the most important CSF which needs to focus more, while the implementation phase. The total 12 critical success factors (CSFs) are identified through literature review and clustered into four dimensions: Management, technological, organizational, and economics. A hierarchical structure has been developed based on these CSFs. The finding of the study shows that CSFs dimension ‘technological’ is found most important for SMEs to successfully implement lean production with industry 4.0. This is followed by the CSFs dimension ‘management’. From level 3 CSFs, digital manufacturing found most significance, followed by top management support. The present study will provide an accurate decision tool to the SMEs to implement lean with industry 4.0 technologies in a more effective and systematic way for organization benefits.KeywordsLeanIndustry 4.0Critical success factorsAnalytical hierarchy process