Impact of Industry 4.0 and Lean Manufacturing on the Sustainability Performance of Plastic and Petrochemical Organizations in Saudi Arabia

Abstract

Plastic and petrochemical industries are lagging behind in terms of environmental sustainability performance because of the nature of these industries. Although plastic and petrochemical industries have adopted lean manufacturing and/or Industry 4.0 technologies, more efforts are needed to enhance sustainable development. The purpose of this study is to explore the integrated impact of Industry 4.0 technologies and lean manufacturing on the sustainability performance of plastic and petrochemical industries in Saudi Arabia. Moreover, it investigates the casual relationship between Industry 4.0 technologies and sustainability performance as well as the direct linkage between Industry 4.0 and lean manufacturing. A questionnaire is used as the primary instrument for collecting data from 112 plastic and petrochemical organizations. A hypothesized relationship is formulated and then analyzed using the structural equation modeling (SEM) approach. The outcome of the analysis shows that Industry 4.0 and lean manufacturing have a positive impact on sustainability performance. The study also presents a list of valid constructs for Industry 4.0 technologies, lean manufacturing, and sustainability performance. Furthermore, the study shows that the plastic and petrochemical industries in Saudi Arabia acknowledge and recognize the contribution of Industry 4.0 technologies and lean manufacturing principles to the protection of the environment as a dimension of sustainability performance.

The synergy of Lean Manufacturing methodology in the context of Industry 4.0: An integrative review

“…Most benefits are associated with using technologies to support LM principles and tools (Hurta & Noskievičová, 2021), (Ghaithan, et al, 2021), (Mofolasayo, et al, 2022) emphasize the use of I4.0 technologies to develop and enhance Lean tools and methodologies, the use of CPS (Cyber-Physical System) devices that allow connecting and managing all plant systems generating e-Kanban's (means "signaling" and proposes the use of cards to indicate and monitor the progress of production within the industry) that assist in decision making efficiently and in real-time (Marinelli, et al, 2021).…”

“…The works presented by the authors (Pagliosa, et al, 2021), (Schumacher, et al, 2021), (Ghobakhloo, 2021), (Ghaithan, et al, 2021), (Silvestri, et al, 2022), (Reyes, et al, 2021) reiterate that IoT and CPS technologies, very present in I4.0, are fundamental to connect factories to the Internet. On the other hand, LM is all about identifying and eliminating waste in the production process using tools like Kaizen, et al, ("fail-safe" in Japanese).…”

“…Because a proper VSM application requires a large amount of information that is almost always outdated, incorporating of CPS can provide more accurate data for management decisions to prioritize continuous improvement and initiatives based on more realistic scenarios. (Pagliosa, Tortorella, & Ferreira, 2021), (Schumacher, Schmid, Bildstein, & Bauernhansl, 2021), (Ghobakhloo, 2021), (Ghaithan, Khan, Mohammed, & Hadidi, 2021), (Silvestri, Gallo, & Silvestri, 2022), (Reyes, Mula, & Diaz-Madronero, 2021)…”

Business transformation through sustainability based on Industry 4.0

“…The digital connection between customers and suppliers via I4.0 powers information management and integrates the supply chain, bringing opportunities in all three dimensions of TBL ( Bag et al., 2018 ). The "data sharing" axis contemplates actions that make the flow of information and deliveries faster, orders more assertive, improve inventory management, and reduce waste ( Ghaithan et al., 2021 ). The "logistics monitoring" axis is important because it provides more robustness, resilience, and agility to logistics systems via I4.0.…”

Enhancing the Decision-Making Process through Industry 4.0 Technologies

“…These developments naturally impact the performance of companies that have become more agile to comply with new market requirements. To this end, many companies are seizing the opportunities offered by emerging technologies, especially those related to Industry 4.0 [1], and many works have studied the relationships between Industry 4.0, lean or continuous improvement and their impact on social systems or, more generally, on sustainability issues [2][3][4][5][6].…”