Improving manufacturing Efficiency in the industry 4.0 era: empirical evidence from the manufacturing companies

Abstract

Purpose -This study aims to examine the effect of virtual manufacturing (VM) on improving manufacturing efficiency to achieve sustainable business practices through focusing on cost reduction, the prediction of needed resources in the implementation processes, and mitigating Environmental, Health, and Safety (EHS) risks in the industry 4.0 environment. Design/methodology/approach -This study uses the technique for order preference by similarity to ideal solution (TOPSIS) to examine the effect of VM on improving manufacturing efficiency to achieve sustainable business practices. The study relied on a sample of 25 automotive industry companies. There are several criteria used to assess the effect of VM on managing the costs of production and reducing EHS risks in industry 4.0.