Purpose This paper aims to gain empirical insights into the relationship between lean production and digitalization within Industry 4.0 from a process-theoretical perspective. Following an initial report at the European Lean Educators Conference 2021 conference, the authors searched for explanations as to why digital lean tools stagnate, whereas production improves continuously. Design/methodology/approach This paper is based on a qualitative case study in a Norwegian processing industry company over a period of 18 months from 2020 to 2022. Findings Process theory offers explanations of why digitalization and lean can change over time. Despite agile development, digitalization is still characterized by centralization and programmatic planning. Lean production is decentralized, with long-term and continuous change processes. This creates challenges for coordination between digitalization and lean. Practical implications Organizations should strive for coordination and collaboration between central and local decision makers and between digital and business process competence. Digital systems should have built-in flexibility for local setup, and local managers need sufficient competence to set up systems that are aligned with continuous improved production. Originality/value This study contributes empirical insights into real-life industry challenges to a literature that has until now been theoretical and focused on potential synergies.

PurposeThis study explores how information and communication technologies (ICT) can contribute to empowerment in an Industry 4.0 setting.Design/methodology/approachThe results are based on a case study of a Norwegian manufacturing organisation that has highly automated production and an integrated ICT platform. Data analysis was guided by the Smith and Bititci (2017) framework for performance measurement and management.FindingsWhen powered by advanced ICT, the performance measurement system matures. The design and development of the ICT platform also reinforce the organisation's existing performance management practices. Empowerment is strengthened when automated collection, analysis and reporting of performance data free up middle managers' time so that they, together with operators, can drive continuous improvement.Research limitations/implicationsThe findings are limited to a single case study and require further testing for transferability to other organisations. Future research should explore whether performance management practices are also reinforced by ICT in more command- and control-oriented organisations.Practical implicationsThe paper suggests an alternative strategy of Industry 4.0 transformation for organisations committed to empowerment. Such organisations should rely on in-house, iterative ICT development and build digital competence broadly.Originality/valueThis article contributes to the understanding of how performance measurement and management are interrelated and evolve in the context of Industry 4.0. To the best of the authors’ knowledge, highlighting the role of middle managers in empowering operators through continuous improvement is novel in the performance measurement and management literature.

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Purpose This paper aims to explore how manufacturing organisations’ performance measurement and management (PMM) systems are evolving when digital technologies (DTs) are deployed. It focusses on the operational level, asking whether DTs are used to promote command-and-control or empowerment-oriented performance management. Design/methodology/approach The findings are based on a single case study from a department of a Norwegian electrochemical plant. The department recently implemented a performance measurement system (PMS) supported by DTs to capture, analyse and visualise close-to-real-time performance data on individuals and teams. The authors analysed both the management practices associated with the new PMS and how those related to other PMM-subsystems in the organisation. Findings When seen in isolation, the new PMS was used to promote empowerment and operators reported a significant increase in perceived psychological empowerment. However, other parts of the organisation’s PMM system remained control-oriented, so that the overall balance between control and empowerment remained stable. Practical implications New PMSs might be added to support local needs and create arenas for empowerment without disturbing the overall balance in the PMM system. Originality/value Building on the insights from the case study, the authors propose that DTs may be deployed to promote both command-and-control and empowerment within different PMM subsystems in the same organisation. Hence, the deployment of DTs is likely to have contradictory effects, which are best understood through a “system of systems” perspective on PMMs.

SAMMENDRAG En viktig ledelsesutfordring er å sikre at kortsiktige mål og prioriteringer i den daglige driften bygger oppunder organisasjonenes langsiktige strategi. En rekke styringsverktøy i ulike grener av faglitteraturen har blitt foreslått for å sikre denne koblingen. I dette kapittelet undersøkes hvordan styringsverktøyet «Hoshin Kanri» kan benyttes sammen med «balansert målstyring» («The Balanced Scorecard», BSC) for å sikre at enhetenes kortsiktige mål bidrar til å realisere organisasjonens strategi. BSC er det mest velkjente og brukte styringsverktøyet. Styrken til BSC er hvordan en kan kommunisere organisasjonenes langsiktige mål på en balansert måte ved hjelp av de fire perspektivene: økonomi, kunder, interne prosesser og laering og vekst. Hoshin Kanri (HK), som opprinnelig kommer fra Japan, er betydelig mindre kjent. Det er et helhetlig styringssystem innen kvalitetsledelse og har blitt mer populaert de siste årene sammen med ledelseskonseptet «Lean». Styrken til HK er hvordan det involverer ledere og ansatte i utrulling av strategien igjennom en iterativ prosess hvor de i felleskap prioriterer kortsiktige mål som bygger oppunder den langsiktige strategien.Eksisterende litteratur diskuterer på teoretisk grunnlag hvordan HK og BSC kan utfylle hverandre, men det er utført svaert lite empirisk forskning på samspillet mellom verktøyene. I dette kapittelet bidrar jeg med en casestudie fra en norsk vareproduserende organisasjon. Her viser jeg konkret hvilke roller BSC og HK har i et kombinert styringssystem, og hvordan de er koblet sammen. HK inkluderer teknikker som kan øke engasjementet blant ansatte og bidra til å forankre strategien. Ved hjelp av en målmatrise kalt «X-matrix» tydeliggjør HK koblingen mellom organisasjonens langsiktige strategiske mål og kortsiktige mål på lavere nivå i organisasjonen. I casen viser det seg at de som har jobbet systematisk med å implementere et kombinert styringssystem, opplever en bedre strategisk kobling til den daglige driften og økt engasjement blant ansatte. I diskusjonen identifiserer jeg noen ledelsesfaktorer som har bidratt til å øke den strategiske koblingen og identifiserer behovet for videre forskning. Til slutt tilbyr jeg en konklusjon hvor jeg anbefaler ledere å utforske og vurdere HK som et styringsverktøy da det er mer fleksibelt enn BSC.