An investigation into the integration of industry 4.0 with lean management in supply chain to advance productivity

Abstract

This study investigated the implementation techniques that an organisation can follow to advance supply chain process efficiency by integrating lean management and Industry 4.0 initiatives in its procurement process for research equipment. The study reviewed models of integration for both Industry 4.0 and lean management approaches and suggests a seamless, integrative approach that can be implemented by organisations in a practical manner. The higher education sector spends a substantial percentage on purchases of research equipment and related services annually, and then face multiple challenges regarding supply chain processes such as deficiencies in implementation of internal controls relating to supply chain management and procurement. These inefficiencies affect major research activities by having long lead times for research equipment and thus delaying the research process. A survey was conducted to evaluate the efficiency of a procurement process for research equipment among the users of this process. It was found that there were various issues and inefficiencies in the procurement process and ERP system such team responsiveness, order accuracy, time taken to prepare and approve requisition and asset registration time. Moreover, a review of literature from practical cases where lean management and Industry 4.0 were implemented in supply chain processes was done to provide grounded practical recommendations. The study proposes solutions from lean management and Industry 4.0 to improve supply chain efficiency for the procurement process and develops key performance indicators for tracking of performance and efficiency. The recommendations are grounded on digitalization enablers and lean management, with an integrative approach. The study further makes a contribution by proving a blueprint that can be followed by an organisation to investigate supply process efficiency, identify areas of improvement, propose solutions, provide an implementation plan, and provide tracking mechanism. The novelty of this research is that it proposes a practical approach of integrating industry 4.0 and lean management, not only from the point of theoretical framework but real-world application. In summary, this study investigates supply chain efficiencies, tests the implementation of integration models for Industry 4.0 and lean management, and develop recommendations aimed at improving the supply chain efficiency, in a practical manner.