Opportunities of Sustainable Manufacturing in Industry 4.0
TL;DR: In this article, the authors present a state-of-the-art review of Industry 4.0 based on recent developments in research and practice, and present an overview of different opportunities for sustainable manufacturing in Industry 5.0.
About: This article is published in Procedia CIRP.The article was published on 2016-01-01 and is currently open access. It has received 1276 citations till now. The article focuses on the topics: Sustainable development & Sustainability.
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TL;DR: In this article, the authors explore how rising technologies from Industry 4.0 can be integrated with circular economy (CE) practices to establish a business model that reuses and recycles wasted material such as scrap metal or e-waste.
Abstract: The purpose of this paper is to explore how rising technologies from Industry 4.0 can be integrated with circular economy (CE) practices to establish a business model that reuses and recycles wasted material such as scrap metal or e-waste.,The qualitative research method was deployed in three stages. Stage 1 was a literature review of concepts, successful factors and barriers related to the transition towards a CE along with sustainable supply chain management, smart production systems and additive manufacturing (AM). Stage 2 comprised a conceptual framework to integrate and evaluate the synergistic potential among these concepts. Finally, stage 3 validated the proposed model by collecting rich qualitative data based on semi-structured interviews with managers, researchers and professors of operations management to gather insightful and relevant information.,The outcome of the study is the recommendation of a circular model to reuse scrap electronic devices, integrating web technologies, reverse logistics and AM to support CE practices. Results suggest a positive influence from improving business sustainability by reinserting waste into the supply chain to manufacture products on demand.,The impact of reusing wasted materials to manufacture new products is relevant to minimising resource consumption and negative environmental impacts. Furthermore, it avoids hazardous materials ending up in landfills or in the oceans, seriously threatening life in ecosystems. In addition, reuse of wasted material enables the development of local business networks that generate jobs and improve economic performance.,First, the impact of reusing materials to manufacture new products minimises resource consumption and negative environmental impacts. The circular model also encourages keeping hazardous materials that seriously threaten life in ecosystems out of landfills and oceans. For this study, it was found that most urban waste is plastic and cast iron, leaving room for improvement in increasing recycling of scrap metal and similar materials. Second, the circular business model promotes a culture of reusing and recycling and motivates the development of collection and processing techniques for urban waste through the use of three-dimensional (3D) printing technologies and Industry 4.0. In this way, the involved stakeholders are focused on the technical parts of recycling and can be better dedicated to research, development and innovation because many of the processes will be automated.,The purpose of this study was to explore how Industry 4.0 technologies are integrated with CE practices. This allows for the proposal of a circular business model for recycling waste and delivering new products, significantly reducing resource consumption and optimising natural resources. In a first stage, the circular business model can be used to recycle electronic scrap, with the proposed integration of web technologies, reverse logistics and AM as a technological platform to support the model. These have several environmental, sociotechnical and economic implications for society.,The sociotechnical aspects are directly impacted by the circular smart production system (CSPS) management model, since it creates a new culture of reuse and recycling techniques for urban waste using 3D printing technologies, as well as Industry 4.0 concepts to increase production on demand and automate manufacturing processes. The tendency of the CSPS model is to contribute to deployment CE in the manufacture of new products or parts with AM approaches, generating a new path of supply and demand for society.
467 citations
TL;DR: In this paper, the authors employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries to analyze the Industrial Internet of Things (IIoT) implications according to the Triple Bottom Line (TBL).
Abstract: The Industrial Internet of Things (IIoT) poses several implications on manufacturers in terms of economic, ecological, and social aspects referring to the Triple Bottom Line (TBL) of sustainable value creation. Due to its technical core, the current research focused on its technical fundamentals, whereas the economic discussion is still in its infancy. This paper aims at painting a comprehensive and structured picture of IIoT-related economic, ecological, and social benefits and challenges. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries. Our study contributes to the sparse body of scientific IIoT literature by analysing the IIoT’s implications according to the TBL. We show that, in order to qualify for sustainable industrial value creation, the IIoT requires an extension of the established TBL by three further dimensions, i.e., technical integration, data and information, ...
419 citations
TL;DR: In this article, the authors investigated the impact of Industry 4.0 on the companies operating in Hungary and found that the spread of real-time data across companies, given the availability of appropriate analytical tools and methods, can have a significant impact on the entire company.
Abstract: In the era of industrial digitalization, companies are increasingly investing in tools and solutions that allow their processes, machines, employees, and even the products themselves, to be integrated into a single integrated network for data collection, data analysis, the evaluation of company development, and performance improvement. To study the impact of Industry 4.0 on the company we used Porter’s (1985) value chain model, which is particularly useful when paying particular attention to corporate areas which have a primary role in customer value creation. Since the primary impact of Industry 4.0 is perceived in value-creating processes, and has so far had the greatest transformative effect in this area, the model can be considered to be appropriate. The objective of our research is to discover how companies operating in Hungary interpret the phenomenon of Industry 4.0, what Internet of Things (IoT) tools they use to support their processes, and what critical issues they face during adaptation. We applied a dual methodology in our investigation: We sent an online questionnaire to manufacturing and logistical service companies to investigate the IoT tools they use, and the problems they face, and received 43 answers we could evaluate. We also conducted four expert interviews with manufacturing firms to get deeper insights into the application, critical issues and development phases of IoT tools. During our research, we found that the spread of real-time data across companies—given the availability of appropriate analytical tools and methods—can have a significant impact on the entire company. In the case of CPS (Cyber Physical System), CPPS and Big Data Technologies, companies using them have been evaluated as having a higher level of logistic service, more efficient processes with their partners, improved cooperation between certain logistic functions, and higher market and financial performance and competitiveness. Applying more efficient production processes, and achieving better productivity and economies of scale, might also result in increased economic sustainability. Furthermore, we have found that companies have started on the path to digital evolution, and investments of this type have already begun.
389 citations
TL;DR: Results point to that the current research is aligned with the goals defined by different national industrial programs, but there are research gaps and opportunities for field development.
Abstract: This systematic review intends to identify how sustainable manufacturing research is contributing to the development of the Industry 4.0 agenda and for a broader understanding about the links betwe...
373 citations
Cites background or methods from "Opportunities of Sustainable Manufa..."
...(2008), Stock and Seliger (2016), Kiel et al. (2017) and Müller, Kiel, and Voigt (2018)....
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...…in the sample and main research drivers identified are: • Identify opportunities and challenges in a more holistic perspective (e.g. Prause 2015; Stock and Seliger 2016; Müller, Kiel, and Voigt 2018); • Use of the technological pillars (e.g. Blümel 2013; Stark et al. 2014; Watanabe et al.…...
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...As previously presented, Stock and Seliger (2016) have mapped opportunities to address sustainability in Industry 4.0, and results confirmed that they are being tackled and considered relevant in the field, e.g. Zhang et al. (2017) propose a sustainable product-service business models based on…...
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...As previously presented, there are divergences related to jobs creation, tasks, and competencies required for Industry 4.0, which need to be more explored, as discussed by Stock and Seliger (2016) and Waibel et al. (2017)....
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...…by the ‘Value Creation Networks’, where the business models and organisational infrastructure are fully integrated by CPS, e.g. in the sustainable industrial value creation models presented by Jovane et al. (2008), Stock and Seliger (2016), Kiel et al. (2017) and Müller, Kiel, and Voigt (2018)....
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TL;DR: This study is first of its kind to identify industry 4.0 adoption barriers and develop hierarchical relationships between them using interpretive structural modeling (ISM) and fuzzy MICMAC methodology in the Indian manufacturing context.
373 citations
References
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01 Jan 1998
TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.
Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.
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TL;DR: In this paper, a Gaussian process classifier was used to estimate the probability of computerisation for 702 detailed occupations, and the expected impacts of future computerisation on US labour market outcomes, with the primary objective of analyzing the number of jobs at risk and the relationship between an occupations probability of computing, wages and educational attainment.
4,853 citations
TL;DR: In this article, sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society, to drive and implement corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.
2,360 citations
"Opportunities of Sustainable Manufa..." refers background in this paper
...for the environment or society [19] or they can even fundamentally contribute to solving an environmental or social problem [20]....
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TL;DR: In this paper, the authors propose a framework to position sustainable entrepreneurship in relation to sustainability innovation, which is based on a typology of sustainable entrepreneurship, including social and institutional entrepreneurship.
Abstract: The purpose of this paper is to propose a framework to position sustainable entrepreneurship in relation to sustainability innovation. The framework builds on a typology of sustainable entrepreneurship, develops it by including social and institutional entrepreneurship, i.e. the application of the entrepreneurial approach towards meeting societal goals and towards changing market contexts, and relates it to sustainability innovation. The framework provides a reference for managers to introduce sustainability innovation and to pursue sustainable entrepreneurship. Methodologically, the paper develops an approach of qualitative measurement of sustainable entrepreneurship and how to assess the position of a company in a classification matrix. The degree of environmental or social responsibility orientation in the company is assessed on the basis of environmental and social goals and policies, the organization of environmental and social management in the company and the communication of environmental and social issues. The market impact of the company is measured on the basis of market share, sales growth and reactions of competitors. The paper finds conditions under which sustainable entrepreneurship and sustainability innovation emerge spontaneously. The research has implications for theory and practitioners in that it clarifies which firms are most likely under specific conditions to make moves towards sustainability innovation. The paper makes a contribution in showing that extant research needs to be expanded with regard to motivations for innovation and that earlier models of sustainable entrepreneurship need to be refined. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
1,129 citations
TL;DR: In this paper, the authors provide a historical view of the motivations and means for pursuing industrial symbiosis, defined to include physical exchanges of materials, energy, water, and by-products among diversified clusters of firms.
Abstract: Summary Since 1989, efforts to understand the nature of interfirm resource sharing in the form of industrial symbiosis and to replicate in a deliberate way what was largely self-organizing in Kalundborg, Denmark have followed many paths, some with much success and some with very little. This article provides a historical view of the motivations and means for pursuing industrial symbiosis—defined to include physical exchanges of materials, energy, water, and by-products among diversified clusters of firms. It finds that “uncovering” existing symbioses has led to more sustainable industrial development than attempts to design and build eco-industrial parks incorporating physical exchanges. By examining 15 proposed projects brought to national and international attention by the U.S. President’s Council on Sustainable Development beginning in the early 1990s, and contrasting these with another 12 projects observed to share more elements of self-organization, recommendations are offered to stimulate the identification and uncovering of already existing “kernels” of symbiosis. In addition, policies and practices are suggested to identify early-stage precursors of potentially larger symbioses that can be nurtured and developed further. The article concludes that environmentally and economically desirable symbiotic exchanges are all around us and now we must shift our gaze to find and foster them.
924 citations
"Opportunities of Sustainable Manufa..." refers background in this paper
...cooperation of different factories for realizing a competitive advantage by trading and exchanging products, materials, energy, water [21] and also smart data on a local level....
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