Transformative integration: which success factors lead to effective Industry 4.0 and Lean Six Sigma collaboration?

Abstract

Purpose The purpose of this study is to identify those critical success factors (CSFs) that are required for the successful implementation of Industry 4.0 (I4.0) and Lean Six Sigma (LSS). It aims at delivering a priority order of CSFs that can assist industrial leaders in streamlining their utilization of integrating modular innovation to ramp up operational effectiveness and ensure a competitive edge through integration. Design/methodology/approach This study used a two-stage approach. The identified CSFs were validated through an empirical study using exploratory factor analysis. In the following, the gray-based decision-making trial and evaluation laboratory method was used to quantify the importance of integration dimensions and CSFs. This approach helped in examining the cause-and-effect relationship of different dimensions with factors. Sensitivity analysis was also conducted to validate the established model of prioritization. Findings The findings of the study showed “organizational dimension” as the most influential dimension for I4.0 and LSS integration with the highest weightage of 26.6%. The study found “effective-training and coaching” as the most influential factor among all CSFs, followed by “adequate financial support provision” and “effective collaboration within the supply chain.” Practical implications The findings from this research support the order of importance assigned to the CSFs; from a practical viewpoint, organizations should focus on strengthening the organizational enablers of the advanced I4.0 technologies, i.e. training, funding and supply-chain collaboration, before scaling them out. These foundations enable digital tools to realize tangible operational improvements; from a strategic viewpoint, they provide organizations with a data-guided approach to prioritizing the development of capabilities and the sequencing of the implementation based on the causal pathways that were identified. From a societal viewpoint, integrating LSS and I4.0 practices will contribute to enhancing sustainability, safety and resource efficiency. Originality/value The findings of this study will significantly contribute to the academic perspective in terms of CSF for I4.0 by offering a prioritized set framework on integrating advanced technologies and process improvement methodologies. The methods used here offer a unique way to screen for and rank the importance of variables that affect successful integration.