A novel Lean-centric readiness model for harnessing Lean capabilities in Industry 4.0 digital technology adoption

Abstract

Purpose: This study addresses the gap in existing Industry 4.0 (I4.0) readiness models, which overlook the foundational role of lean manufacturing (LM) in enabling digital technology adoption. It explores how lean capabilities enhance I4.0 readiness, supporting manufacturing firms leveraging their prior investments in LM for digital transformation.

Design/methodology/approach: This study adopts a systematic literature review (SLR) of 20 I4.0 readiness models to investigate the extent to which LM concepts are incorporated. To reinforce the analysis, a content analysis was conducted using a comprehensive spreadsheet that captured each model’s dimensions. Key readiness dimensions were synthesised alongside assimilated lean concepts. Based on this analysis, a novel lean-centric I4.0 readiness model was developed, comprising six core dimensions and 39 sub-dimensions, which reflect essential lean capabilities aligned with digital transformation.

Findings: The findings reveal a substantial gap in existing I4.0 readiness models in explicitly incorporating core LM concepts. The proposed lean-centric I4.0 readiness model emphasises the need to balance technology, organisational, and process maturity enablers, contrary to models prioritising technological factors alone.

Research limitations/implications: The review is based on the published literature on manufacturing where LM practices may have different degrees of adoption in different manufacturing sectors. Also, the review was confined to the literature published in English, which may limit the generalisability to other regions. Future research can validate this model empirically across diverse manufacturing contexts.

Practical implications: The novel lean-centric I4.0 readiness model developed in the study enables manufacturing firms to assess readiness through a lean lens. It can also aid their understanding of how their existing LM practices enable digital transformation readiness. The model facilitates strategic decision-making, resource allocation, and priority setting, reducing the risk of digital transformation failures.

Originality/value: This is the first study to examine I4.0 readiness models for the extent of integration of LM concepts. The proposed lean-centric I4.0 readiness model with a range of dimensions and sub-dimensions enriches the in-depth integration of LM and I4.0 literature. It offers a foundation for further empirical studies on lean-centric readiness assessment.