Critical Factors of Supply Chain Based on Structural Equation Modelling for Industry 4.0

Abstract

Industrial Revolution 4.0 encourages the digitalization of manufacturing, especially in terms of improving the supply chain processes. Currently, the development of information technology follows the principles of Industrial Revolution 4.0 in the form of interconnections/connections to communicate with machines, transparency, and technical assistance. The presence of a decision support system, COBIT 5, and ISO 9126 are expected to maximize business processes and technology. Thus, relationship analysis needs to be carried out on decision support systems, COBIT 5, and ISO 9126, to determine the relationship of each variable with the supply chain process. Relationship testing can be performed using statistical tool such as Structural Equation Modelling (SEM). The study focuses in analyzing influence of DSS COBIT 5 variables, ISO 9126 functionality, ISO 9126 reliability, and decision support systems on supply chain management. The primary data are based on questionnaires to employees of the furniture manufacturing industry. The results of this study are DSS COBIT 5, functionality ISO 9126, reliability ISO 9126, and decision support systems significantly affecting the supply chain management process. Thus, the industry needs to focus on implementing these factors so that business processes comply with the standards and principles of the industrial revolution 4.0.

Refining the ISO 9126 Model for Enhanced Decision Support System Evaluation in the Manufacturing Industry

“…The implication of choosing these two characteristics is that there will be an impact on the decision support system's user experience, performance, and long-term sustainability. The following describes the characteristics and sub-characteristics of ISO 9126 on decision support systems for the furniture manufacturing industry [21].…”