Effective Integration of Lean Operations and Industry 4.0

Abstract

This chapter discusses how to employ Lean principles and augment Lean practices by adopting Industry 4.0 technologies. Industry 4.0 connects the real world with virtual reality using a combination of technologies including cyber physical system (CPS), cloud computing, Internet of Things (IoT), big data and analytics, robotics, and other smart technologies. Industry 4.0 signifies a disruptive shift in the way that organizations compete and do business. Integration of Industry 4.0 is often a capital-intensive effort where long-term benefits justify the high upfront costs, training, and other time investments in the short-term. Production of connected vehicles in this regard comes with a new infrastructure of a call center that enables effective response to incidents, creation of a dealer infrastructure and preparedness that allows the organization to become more customer facing, and possibly allowing factories to better assess products on the road directly, implementing design changes.