Integration of industry 4.0 technologies to overcome lean manufacturing barriers in Sri Lanka’s apparel sector

Abstract

Purpose This study aims to examine how Industry 4.0 (I4.0) technologies can enable Lean Manufacturing (LM) practices in Sri Lanka’s apparel industry. Although LM has been widely adopted to improve efficiency and reduce waste, persistent barriers such as frequent product changes, limited real-time visibility and infrastructural constraints have restricted its full potential. The purpose of this research is to explore how advanced digital solutions, including Internet of Things (IoT), real-time analytics and augmented/virtual reality (AR/VR), can address these barriers and enhance the competitiveness and sustainability of apparel manufacturing in a dynamic global market. Design/methodology/approach A qualitative single-case study design was used to provide an in-depth understanding of digital–lean integration. The research was conducted in collaboration with a leading Sri Lankan apparel manufacturer. Data were collected through on-site factory observations, semi-structured interviews with managers and employees and examination of company records. Using Yin’s (2018) case study methodology as a guiding framework, the study analyzed how selected I4.0 technologies were implemented alongside lean tools and how these interventions addressed identified operational inefficiencies. Findings The study found that I4.0-enabled solutions significantly enhanced lean practices by improving production workflow transparency, defect detection and downtime reduction. Tools such as IoT-linked dashboards, electronic Kanban systems and automated performance monitoring minimized non-value-adding activities and reduced bottlenecks. AR/VR applications demonstrated potential for training and machine setup, while predictive maintenance improved equipment reliability. However, the research also identified persistent shortcomings, including data confidentiality issues, workforce adaptability challenges and high capital investment requirements. The findings highlight both the opportunities and practical limitations of integrating digital technologies into lean environments. Research limitations/implications The research was limited to a single case study of a large apparel manufacturer in Sri Lanka, which constrains the generalizability of findings. Data confidentiality policies restricted access to detailed financial information, preventing quantitative analysis of productivity gains and return on investment. Future studies could extend this research by including multiple firms across varying scales and geographies, enabling comparative insights. Broader empirical studies that quantify the financial outcomes of digital–lean integration would provide further validation and support for industry-wide adoption. Practical implications For practitioners, the study offers a roadmap for integrating I4.0 technologies with lean practices in apparel manufacturing. The evidence suggests that digital lean tools can enhance transparency, improve workflow efficiency and support more accurate decision-making. Managers should prioritize investments in IoT-enabled monitoring, predictive maintenance and digital visual management systems while addressing workforce readiness through training programs. Attention must also be given to cybersecurity and change management to ensure sustainable implementation. These findings are particularly relevant for resource-constrained firms seeking to maximize operational efficiency while navigating global competitive pressures. Social implications The integration of I4.0 and LM in Sri Lanka’s apparel sector holds broader social benefits by safeguarding employment in a critical export industry that provides livelihoods for over 300,000 workers. Enhanced productivity and competitiveness contribute to economic stability and foreign exchange earnings. Moreover, digital lean practices can reduce waste, contributing to environmental sustainability and aligning with global sustainable development goals. By strengthening the resilience of the apparel sector, these advancements can help sustain jobs and improve working conditions, particularly in developing country contexts where apparel remains a cornerstone of industrial growth. Originality/value This study provides one of the first in-depth examinations of how I4.0 technologies can act as enablers of LM in the Sri Lankan apparel industry. Unlike prior studies that treat lean and digital transformation as separate trajectories, this research highlights their synergies and tradeoffs in practice. By capturing both the benefits and shortcomings of digital lean tools, the paper contributes to theory by extending understanding of lean–I4.0 integration in emerging economy contexts. It also offers practical value by providing industry-specific insights that can inform managers’ strategic decisions on digital transformation.