Smart Factory Advancement in Industry 4.0: Exploring Barriers and Strategic Approaches through Empirical Investigation

Abstract

This study investigates the barriers and strategies related to the installation of smart factories in the manufacturing domain, with a focus on the manufacturing industry integrated with a German company as a case study. Utilizing the Best Worst Method (BWM), 47 performance variables were assessed and ranked in nine key groups, revealing significant factors that influence the installation of the smart factory. Technological challenges, complexity, and integration emerged as critical priorities, emphasizing the essence of robust IT infrastructure and agile software development practices. Additionally, e-waste management and energy efficiency were highlighted as imperative aspects for sustainable smart factory operations. Ethical considerations, including worker safety standards and data governance, were emphasized for ethical and societal sustainability. Theoretical implications elucidate the contribution to existing knowledge by identifying and ranking key barriers, revealing effective strategies, and expanding understanding in specific areas such as e-waste management and ethical supply chain methodology. Practical contributions offer insight to optimize the design and implementation of smart factories, focusing on strategic prioritization, comprehensive planning, and ongoing adaptation. Nevertheless, it is essential to acknowledge limitations, including the reliance on expert opinions, sector-specific applicability, and the need for larger sample sizes. Future research avenues could include cross-industry comparative studies and the incorporation of cutting-edge technology like blockchain and artificial intelligence (AI). Ultimately, this research offers insightful knowledge about the challenges and opportunities of smart factory installation in the manufacturing sector, particularly in Germany. By clarifying identified barriers and adopting recommended strategies, organizations could navigate the complex landscape of smart factory adoption and contribute to the ongoing digital conversion of the industrial sector.