Abstract

The digitization of the manufacturing industry, 10 years after the introduction of the Industry 4.0 concept, is still one of the most demanding tasks for the companies, especially for SMEs. As one of the biggest barriers in new business model implementation, the lack of strategy and workforce skills is frequently mentioned in the literature. The high level of investments it requires and the perception of high risks with unclear future benefits can be avoided with readiness factor calculation. This paper presents a novel model for readiness factor calculation, oriented to process planning and based on decision support systems. The model enables the definition of the optimal strategic plan for the digitization with the use of decision support systems (analytic hierarchy process) and through the use of statistical methods implemented within the model it minimizes the influence of human subjectivity and quantification of qualitative criteria. This innovative approach enables the understanding of the transition process to new technology-enabled business models, in this case oriented towards process planning. The useability and reliability of the model is proven in a case study of a metal machining company.

Highlights

  • Process planning is one of the key stages in the product lifecycle

  • The novel and innovative readiness factor calculation method based on decision support systems, in this case the analytic hierarchy process, is a very effective and accurate tool in the definition of a strategic plan for the digital transition towards the implementation of Industry 4.0

  • With the use of knowledge provided being evaluated through statistical methods by an experienced expert group, the influence of human subjectivity is minimized and the evaluation of qualitative criteria in the readiness factor calculation method quantified, which answers RQ3

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Summary

Introduction

Process planning is one of the key stages in the product lifecycle. The accuracy of the decision-making level at this point impacts the future cost of manufacturing and the product quality [1]. As any other phase of manufacturing and design, process planning is required for certain changes and the complete digitization in terms of the Industry 4.0 concept, as the current trends on the market suggest, in order to retain the level of competitiveness [2]. In order to avoid additional costs, minimize risks, and increase the value of future benefits, an optimal strategy plan has to be defined [3]. This can be provided by the readiness factor calculation, as the starting point which gives the company an overview of the current position compared to the ideal model/work environment by Industry 4.0 principles. The readiness factor calculation should be a quantitative and objective evaluation of Industry 4.0 features (elements) in a certain company [4]

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