Evaluating the Factors that are Affecting the Implementation of Industry 4.0 Technologies in Manufacturing MSMEs, the Case of Peru

Chung-Jen Huang,Yi-Hsien Huang,Elisa Talla Chicoma

doi:10.3390/pr7030161

Abstract

The micro, small, and medium enterprises (MSMEs) sector plays a very crucial role in the economic and social development of Peru. Unfortunately, the tough access to the use of technologies is one of the weaknesses of this type of enterprises, which implies a low technological intensity production, according to the new technological trends. This study analyzes the factors that are affecting the implementation of Industry 4.0 technologies in Peruvian micro, small, and medium enterprises. According to the findings from the semi-structured interviews, it has identified four factors that respond to the main question of this research—lack of advanced technology, lack of financial investment, poor management vision, and lack of skilled workers. Data from 49 enterprises from the manufacturing sector were used for the assessment. The surveys conducted on business managers were evaluated using a multi-criterion decision-making method by the analytic hierarchy process. The findings of the study generate some recommendations that could be beneficial for the sectors involved with micro, small, and medium enterprises in Peru.

Highlights

Manufacturing is a production business and its primary objective is to convert raw material into quality goods that have a value in the market place and as a result, generated profit
In the case of medium, small, or micro enterprises the production is in low volume and as a consequence, the number of manual activities is in higher proportion
We examined the difficulties that MSMEs are facing in the application of Industry 4.0 technologies and with the support of the analytic hierarchy process (AHP) method the most relevant factor will be determined

Summary

Introduction

Manufacturing is a production business and its primary objective is to convert raw material into quality goods that have a value in the market place and as a result, generated profit. Factors such as system efficiency, product quality and reliability, productivity and lower cost, and efficient and effective management techniques contributing to increasing that profit [1]. This industry has been experiencing many changes to improve efficiency in order to produce products with higher quality and become more competitive in the market [1]. The fusion of manufacturing with these new technologies is enabling a game-changing transformation in terms of manufacturing models and approaches [6], leading to a new concept called Industry 4.0

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