International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 4 No. 3 [September 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
REVIEW PAPER: ENHANCING MANUFACTURING FLEXIBILITY IMPLEMENTATION THROUGH INDUSTRY
4.0 TECHNOLOGY
Mohd Ghazali Maarof 1*, Gusman Nawanir2 and Muhammad Fakhrul Yusuf3
1 2 3 Faculty of Industrial Management, University Malaysia Pahang, Gambang, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 3 August 2022 Revised date : 30 August 2022 Accepted date : 4 September 2022 Published date : 10 September 2022
To cite this document:
Maarof, M. G.., Nawanir, G., & Yusuf, M. F. (2022).REVIEW PAPER:
ENHANCING MANUFACTURING FLEXIBILITY IMPLEMENTATION THROUGH INDUSTRY 4.0
TECHNOLOGY. International Journal of Business and Economy, 4(3), 290- 302.
Abstract: The current business environment is often characterized by dynamic market environment. This dynamic market which caused uncertainty in the market demand was due to globalization, fierce market competition, and advancement in the technology. Such uncertainty requires some sort of internally based flexibility known as manufacturing flexibility. This research paper discussed on manufacturing flexibility and investigated how industry 4.0 technology can help manufacturing firms to become more flexible. A review research approach based on past studies have been employed in this study. The main body of this review is based on two sources of database, SCOPUS, and Google Scholar. Manufacturing flexibility is a concept known to equipped businesses to confront with market uncertainties and finding the right match between product’s specification and market needs. Thus, it is used by businesses to become more flexible and dynamic in its operation. Advancement in technology such as industry 4.0 bring new hopes for manufacturers to operate in a more flexible operation. Nine technologies under the umbrella of industry 4.0 have been discussed in this research. Future studies should conduct in-depth qualitative approach to study how industry 4.0 technology can help to enhance manufacturing flexibility implementation in the manufacturing industry.
Furthermore, there is also needs to conduct analysis of other contributing factors that can contribute to implementing manufacturing flexibility especially those that focused on the developing countries. The result from this research is expected to provide guidance for manufacturers to implement manufacturing flexibility more effectively in their firm.
1. Introduction
The current business environment is often characterized by dynamic market changes that is caused by globalization, fierce market competition, and advancement in the technology. Such market turbulence has caused worldwide market uncertainties as there are a shift in the customers preferences and market demand. Such volatility in the business environment requires the ability of the manufacturing firms to anticipate changes that is going to take place and take necessary preparation or action to mitigate those changes.
Overcoming uncertain market demand requires some sort of internally-based flexibility known as manufacturing flexibility (Tan & Lim, 2019). Although manufacturing flexibility concept has been accepted by many researchers as a crucial competitive priority, the actual implementation of manufacturing flexibility remain scattered (Enrique et al., 2022; Long et al., 2017; Pérez-Pérez et al., 2018). Firms are still struggling to implement manufacturing flexibility and in some cases are facing challenges to achieve its real objective (Gothwal & Raj, 2017). Furthermore, past studies indicate that identifying the requirements needed to implement manufacturing flexibility effectively and efficiently requires more attention by the academic researchers (Harsch & Festing, 2020; Mishra et al., 2018). Better ways to align the internal manufacturing capabilities with changes in the external environment is needed (Wei et al., 2017). Therefore, this research work will review how manufacturing flexibility implementation can be enhance by using industry 4.0 technology as the enabling factor.
This study offers several significant contributions with regards to the practical and the body of knowledge. Industry practitioners can learn how Industry 4.0 technology can be used to increase the manufacturing flexibility competencies in the organization. Interested parties such as relevant policy maker, researchers and technologists can gain better understanding on how processes flexibility can be enhanced by using the industry 4.0 technology. Furthermore, the industry practitioners can learn the required adaptation practices that can enable them to strategize plans to expedite the flexibility implementation and identify potential improvement areas. Ultimately, this research study is expected to extend knowledge about the technological factors that can improve manufacturing flexibility implementation towards a more effective and efficient production system.
Based on the preceding discussions the research team aims to answer the following research questions.
RQ1. What is manufacturing flexibility?
RQ2. What is the industry 4.0 technologies that can support manufacturing flexibility implementation?
RQ3. How those technologies can support the manufacturing flexibility implementation.
Keywords: manufacturing, flexibility, uncertainty, industry 4.0, turbulence.
2. Methodology
This study is done based on the literature review conducted by past researchers that is related to how industry 4.0 technologies have been used to implement manufacturing flexibility. To start with, the author has formulated appropriate research questions to help with the review.
Next, the author has devised the searching strategy which consists of their sub-processes namely identification, screening (inclusion and exclusion criteria) and eligibility.
Formulation of the Research Questions
The formulation of the research questions was based on the research gap identified by the author in the introduction section. It has been identified that many manufacturing firms are struggling to implement flexible manufacturing operation. This triggered the author to study how industry 4.0 technology can be used to implement flexibility in the manufacturing processes. To do that, firstly, the author has defined the term “manufacturing flexibility”. Next is to identify the industry 4.0 technology that can be applied to enhance manufacturing flexibility competencies. Lastly, the author tries to search information on how industry 4.0 technology have been used in the industry to improve manufacturing flexibility.
Searching Strategies
The first step during the searching process is to identify the main keywords. Few keywords were identified namely manufacturing flexibility, flexible manufacturing system, and industry 4.0. The aims for these keywords are to provide options for selected database to search for review on the related articles. Two main databases were used in the study namely google scholar and Scopus. Scopus database has the ability to be a leading databases in literature review due to several advantages such as it has advance searching functions, comprehensive sources (indexing more than 5000 publishers), and have multidisciplinary focus (Martín- Martín et al., 2018). The selection of the Google Scholar as the supporting search engine, on the other hand, is because it has enormous documents that are available in the database related to scholarly items. The range of publication was limited to anything that is after the year 2015.
The searching process using SCOPUS databases resulted in a total of 19 articles by using the string TITLE-ABS-KEY (“manufacturing flexibility” AND “industry 4.0”). Later the author has gone through all the articles to see the appropriateness and types of industry 4.0 technology used. The result was shown in Table 1.
Later the author used the Google Scholar to search for more articles that discussed about how industry 4.0 has been used to support manufacturing flexibility implementation. For that reason, the author has used the string “manufacturing flexibility” AND “industry 4.0” to look up for the related articles. The range of publication was also set to between 2022 until 2015.
The result showed that there are 144 articles that discussed under these topics. Same as the case of the SCOPUS database, the author has gone through all the articles manually and filter only information that are related to the use of industry 4.0 to enhance manufacturing flexibility.
3. Result of the Literature Review Manufacturing Flexibility
Manufacturing flexibility is a concept that emerged during the early 1980s in response to the global search for more reliable and cost-effective production system. During that time the demand for customized products have increased, bringing along lots of uncertainties. These uncertainties require manufacturers to deal effectively with the volatile demand and changing customer requirements. Therefore, developing an efficient, adaptable, and flexible manufacturing system are needed to remain competitive in the market.
Through flexibility implementation, manufacturers can increase their resilience in confronting the challenges in the volatile market environment. In fact past literatures on manufacturing flexibility have recognized the importance of manufacturing flexibility as a key competitive weapon for organizations operating in a highly uncertain and turbulent environment (Enrique et al., 2022).
Manufacturing flexibility can be categorized into three major groups: inbound, in-house and outbound (Sushil, 2018). In-house flexibility refers to the organization’s capability to absorb the changes that happened while converting those raw materials and components into a finished product. Various in-house flexibility dimensions can take place such as labour flexibility, equipment flexibility, routing flexibility, material-handling flexibility, input-quality flexibility, and expansion flexibility.
Various meaning was given to manufacturing flexibility. This depends on the contexts and the adaptation needs that has happened in the environment. This study employed the definition of manufacturing flexibility as “the ability of the organization to utilize its internal resources effectively and efficiently to produce variety of products or services that can meet various customers’ requests regardless of the environmental uncertainty with minimum effect to the overall cost and objective” (Maarof et al., 2022).
Industry 4.0 Technology
The emerging concept of Industry 4.0 represents a technological innovation in the control of the industrial value chain. The Fourth Industrial Revolution enable manufacturing process to produce a nearly autonomous production system known as the "cyber-physical production systems" or smart factories (Chauhan et al., 2021; Ghobakhloo, 2018; Hirsch-Kreinsen et al., 2019). This kind of manufacturing system is capable of self-controlling and self-configuring to enhance production based on the use of data analytics (Lu & Weng, 2018) driven by the advancement in the informational and communication technology (ICT). Thus, a more flexible, efficient and decentralized manufacturing processes can be attained (Fragapane et al., 2020;
Peruzzini et al., 2017).
Table 1 summarized the literature review on industry 4.0 usage in relation to manufacturing flexibility implementation.
Table 1: Table of Findings
The following subsection will be discussed in more details about each of the industry 4.0 technology.
3.2.1 Big Data Analytics (BDA)
Big data analytics are used to examine a massive amount of raw data in a timely fashion. Big data analytics helps organizations harness their data and to uncover hidden patterns, correlations, and other insights. More importantly big data analytics can be used to support manufacturing flexibilities requirements at shop floor levels to control production volume, type of process, product variety and others (Enrique et al., 2022).
Authors Method BDA AgR SIM IOT CC CS VHI AM AuR Enrique et al. (2022) -
Brazil
Qualitative/
Interview
X X X X
Fragapane et al.
(2020) - Norwich
Qualitative X
He & Bai (2021) - China
Literature review
X X X X
Cortés et al. (2021) - Mexico
Case Study X
Benfriha et al. (2021) - Germany
Experimental X X X X X X
Enrique et al. (2021) - Brazil
Literature review
X X
Bueno et al. (2020) - Brazil
Literature review
X X X X
Bortolini et al. (2020) - Italy
Experimental/
Case Study
X X X X X X X X X
Mantravadi et al.
(2020) - Germany
Case Study X X X
Luscinski & Ivanov (2020) - Poland
Experimental X X X
Jermsittiparsert &
Boonratanakittiphumi (2019) - Thailand
Quantitative/
Survey
X X
Palominos et al.
(2019) - Germany
Experimental X
Damiani et al. (2018) - Italy
Qualitative X
3.2.2 Augmented Reality (AgR)
Augmented reality (AR) is the integration of digital information with the user's environment in real time. This virtual and augmented realities formed the major components of Industry 4.0 to enable a digitized construction environment for content management system (Damiani et al., 2018). AR uses visualize computer graphics within real circumstances to superimposes digital data onto the existing environment, bridging the digital and physical worlds, that allow for an interactive application. This helps designers the flexibility to learn how to simulate a virtual reality to transfer knowledge of intelligent manufacturing systems(He & Bai, 2021).
3.2.3 Simulation (SIM)
Simulation is the most widely used modelling tool which give the flexibility and convenience in designing, planning and analyzing complex manufacturing systems (Joseph & Sridharan, 2011). A simulation is the imitation of the operation of a real-world process or system over time which can help to optimize the design of a manufacturing system to match both production and market requirements with minimum penalty impact (Luscinski & Ivanov, 2020). This condition helps in providing alternative solutions in a relatively shorter period.
3.2.4 Internet of Things (IOT)
Internet of Things (IoT) is a modern manufacturing concept that adopted the global cutting- edge Internet-based information infrastructure for data acquisition and sharing. It allows manufacturing system to be able to sense, interconnect, and interact with each other so that manufacturing operation can be carried out automatically (Wan et al., 2018). IOT is closely related to the Internet, mobile communication networks, wireless sensor networks, and radio- frequency identification (RFID) technologies in managing complex manufacturing system (Hsu & Yeh, 2017).
3.2.5 Cloud Computing (CC)
Cloud computing relates to the management of huge data volumes in open systems. “Cloud”
refers to the use of Internet for communication network, distributed storage, and delivery of computational services. It used store data in an internet server provider which can be easily retrieved through remote access. The data storage service infrastructures often supports end- to-end cross-company business processes and flexible business networks (Yu et al., 2015).
Cloud system also facilitates the flexibility to integrate different devices as they do not need to be physically near to each other to share information and coordinate activities (Thoben et al., 2017). In addition, data stored by the cloud service provider can be mined using smart correlations and probability calculations algorithms to produce new knowledge (Kagermann, 2015).
3.2.6 Cyber Security (CS)
Cybersecurity refers to the management of security on the digital information systems and devices against data breach or manipulation. Cybersecurity issue is important to handle loss of critical data, such as corporate data about customers, employees, trade secrets, and intellectual property source files to third-party that can cause a company losing its competitive advantage (A. Raj et al., 2020). Hackers could pose serious threats on the data security. Therefore, there is a need for greater information consistency, data reliability, information privacy and security for improved product traceability and information security (Kamble et al., 2020). Among the
common cybersecurity method is by investing on the antivirus software or using protecting passwords approach. Usage of biometric authentication, blockchain technology (Milian et al., 2019) and Web of Things (Ghobakhloo, 2018) can offer greater flexibility, security and integrity to the cybersecurity system across different platforms within the entire supply chain.
3.2.7 Vertical and Horizontal System Integration (VHI)
A horizontally integrated company involves connecting all parts of the supply chain within the production facility, across multi-site operations, and to third-party partners in the supply chain, both upstream and downstream. The digital interconnection between the entire supply chains and customers in real-time allows data exchange and data analysis to happen (Veile et al., 2020) (Erasmus et al., 2020). This also means achieving the smart factory concept in which intelligent machines and products can introduce unprecedented levels of automation, flexibility, and operational efficiency into production processes (Pérez-Lara et al., 2020).
A vertically integrated company, on the other hand, keeps as much of its value chain in-house, from product development to manufacturing, marketing, sales, and distribution. Vertical integration involves connecting all business units and processes within their organisation at the enterprise-level systems with the factory floor in order to support the entire layer of the operations to be executed correctly and efficiently (Pérez-Lara et al., 2020).
3.2.8 Additive Manufacturing (AM)
Additive Manufacturing (AM) technology is a term used to refer to the technology capable to produce complex 3D physical objects directly from a 3D computer models (Eyers et al., 2018).
It involves the process of applying layer-by-layer deposition of material in a geometrically defined, three-dimensional space using 3D printer. This support flexibility in operation management through customization of part production with the option to produce customized parts in a smaller size, small volumes and very complex parts (Baumers & Holweg, 2019;
Hannibal & Knight, 2018).
3.2.9 Autonomous Robots (AuR)
The use of industrial robots has seen robots are becoming more autonomous, flexible, and cooperative which allows human to work safely side by side (Kang et al., 2021). The raising usage of the autonomous mobile robots and mobile manipulators have supported the development of the much-needed autonomous industrial automation known as the smart factories. The exchange of information and data were made possible through the integration of other intelligent technology such as Internet of Things (IoT), Artificial Intelligence, or Big Data. For instance, autonomous robots that has been programmed with artificial intelligence has enable robots to recognize and learn from their surroundings and make decisions independently (Da Silva et al., 2020).
Use of Industry 4.0 Technology to Enable Manufacturing Flexibility
Industry 4.0 has make possible smart decisions through real-time communication and cooperation between human, machines, and sensors (Bueno et al., 2020). Such smart technology are needed in producing customized products with different product mix and fluctuating production volume (Lu & Weng, 2018).
The digitalisation of data and fast information exchange using real-time interconnected machines intelligent systems can promote the establishment of a highly potentially smart and dynamic production systems. This can help manufacturing firms to monitor and control their production operation effectively and improve their flexibility capability to address the issue of uncertainties in the market demand (Contador et al., 2020; Szalavetz, 2017).
The Industry 4.0 technology able to provide a flexible means for the manufacturing firms to build, design, deliver, use, and operate a reconfigurable manufacturing system (Wang et al., 2016). The use of smart objects such as cyber-physical systems (CPSs), Internet of Things (IoT), big data analytics and cloud computing that are based on real-time information can provide dynamic feedback to the production process (Rojko, 2017). Early detection of inconsistencies can help manufacturers to take immediate corrective action to mitigate the effect and prevent worse scenarios from happening. In addition, it gives the manufacturing firms the flexibility to make necessary adjustment in response to the changes that happened in the internal and external environment (Yeo & Grant, 2017). For example, use of Internet of Things (IoT)), Cyber-Physical System (CPS) and cloud computing together with high speed ICT infrastructure can help manufacturers to make better prediction about the future demand and supply requirements (Kang et al., 2016).
The application of smart devices such as the Internet of things (IoT) and autonomous robots can help manufacturing firms to minimize direct human involvement in repetitive and life treating production process some execution of the production process (Vaidya et al., 2018).
Furthermore, use of smart devices can allow the interoperable of the human resources, the smart products, and machine networks to connect, communicate, and operate together with other system to allow for a more flexible production system (Hartmann & Halecker, 2015;
Medaglia & Serbanati, 2010; Meng et al., 2020). For instance, the use of Cyber-physical system (CPS) together with Internet of Things (IoT), big data analytics, and cloud computing allows for more data integration between humans, conveyors, machines and sensors with the information systems to control a physical process in real time (Frank et al., 2019; Tao et al., 2019; Wang et al., 2016).
The flexibility of the production system can be enhance with the use of the cloud computing system to analyse, and interpret massive data generated by the IoT devices to produce meaningful feedback to the manufacturing system on real time (Meng et al., 2020; Thoben et al., 2017; Wang et al., 2016). This can provide some flexibilities to redesign the manufacturing process workflow without much hassle (Schwarzmüller et al., 2018). Thus manufacturing firm can take advantage for lesser operation cost, better product quality, better utilization of human skills, lower inventory requirements and higher efficiency rate (Yeo & Grant, 2017).
4. Conclusion
This study has managed to give answer to the gap in understanding the use of industry 4.0 technology in enhancing the manufacturing flexibility implementation. Findings from this research could contribute new knowledge to scholars to fulfil the empirical gaps in the study area. Such review could help to overcome crucial issues on lack of studies on how to implement manufacturing flexibility effectively and efficiently especially under volatile market condition.
This review hopefully could facilitate relevance policymakers and funders to have better understandings and emphasis in helping the manufacturers to adopt industry 4.0 technology into their production operation.
The review offers several recommendations for future studies. This includes the need to conduct in-depth qualitative studies in enhancing manufacturing flexibility implementation and need analysis of other contributing factors that focused on the developing countries. Last but not least, it is suggested to conduct research on the challenges, and impact of industry 4.0 technology towards manufacturing flexibility.
5. Acknowledgement
This research was funded by Universiti Malaysia Pahang (UMP) through a research grant (RDU200338). The authors would like to thank the university for this support.
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