A performance measurement system for industry 4.0 enabled smart manufacturing system in SMMEs- A review and empirical investigation

Sachin S. Kamble, Angappa Gunasekaran, Abhijeet Ghadge and Rakesh Raut

International Journal of Production Economics, 2020, vol. 229, issue C

Abstract: The smart manufacturing systems (SMS) offer several advantages compared to the traditional manufacturing systems and are increasingly being adopted by manufacturing organizations as a strategy to improve their performance. Developing an SMS is expensive and complicated, integrating together various technologies such as automation, data exchanges, cyber-physical systems (CPS), artificial intelligence, internet of things (IoT), and semi-autonomous industrial systems. The Small, Medium and Micro Enterprises (SMMEs) have limited resources and therefore, would like to see the benefits from investments before allowing adopting SMS. This study uses a combination of exploratory and empirical research design to identify and validate the performance measures relevant to the evaluation of SMS investments in auto-component manufacturing SMMEs based in India. The study found that an Industry 4.0 enabled SMS offer more competitive benefits compared to a traditional manufacturing system. The planned investments in SMS can be evaluated on ten performance dimensions namely, cost, quality, flexibility, time, integration, optimized productivity, real-time diagnosis & prognosis, computing, social and ecological sustainability. Proposed novel Smart Manufacturing Performance Measurement System (SMPMS) framework is expected to guide the practitioners in SMMEs to evaluate their SMS investments.

Keywords: Smart manufacturing system; Industry 4.0; Performance measurement; SMMEs; Automotive industry; Digital transformation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:229:y:2020:i:c:s0925527320302176

DOI: 10.1016/j.ijpe.2020.107853

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