Analysis of Barriers to Implement Lean Manufacturing Principles and Industry 4.0 Technologies Concurrently in Indian Manufacturing Organizations

Abstract

Industries all over the world are practicing Lean Manufacturing (LM) techniques during the last twenty years and have significantly reduced the wastes from the shop floor level to enterprise level activities. On the other hand, the industrial settings are elevated to the next level with the help of Industry 4.0 technologies. Despite this transition, Small and Medium Enterprises (SMEs) face challenges like technological constraints, financial limitations and regulatory complexities. To address this issue, the present study aims to analyse the barriers for implementing LM and Industry 4.0 concurrently in SMEs across process, product and service industries in the southern part of India. In addition, the driving forces and strategies were also analysed to understand the perception towards LM and Industry 4.0. A questionnaire-based survey methodology is adapted to carry out the research. The survey method is intended to highlight the barriers faced by Indian SMEs while implementing LM and Industry 4.0 technologies. Though 43% of the surveyed SMEs already started practicing LM and Industry 4.0 techniques, remaining still requires directions to adapt these techniques. A novel approach adapting hypothesis testing and Principal Component Analysis (PCA) was used to prioritize the identified barriers. Analysis on the survey results show that the majority of the barriers are related to standards, knowledge and awareness on LM and Industry 4.0. The results provide an overview of Indian SMEs’ present status on LM and Industry 4.0 adaption, and important aspects to be focused by the organizations’ management and academicians for the successful implementation.