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Industry 4.0 and the Food Manufacturing Industry

A Conceptual Framework

Written by M. S. Adil, S. Mekanic

Paper category

Master Thesis

Subject

Business Administration>Supply Chain & Logistics

Year

2020

Abstract

Master Thesis: The phenomenon of Industry 4.0 product quality, sustainability and on-time production is currently one of the most concerned issues of the organization. Lean practices have been used to overcome these problems, and implementing them with consistency and awareness is very important to the success of the organization (Sanders et al., 2016). Some companies have successfully implemented most lean practices. However, these organizations are still lagging behind in fully realizing their results. This is where Industry 4.0 comes in. It is a new concept, also known as the fourth industrial revolution (Tortorella & Fettermann, 2017). The previous three industrial revolutions had a huge impact on the manufacturing industry. They enable widespread increases in the productivity and efficiency of the industrial sector. The first industrial revolution occurred in the middle of the 18th century, the second was in the 19th century, and the third was in the 20th century. Industry 4.0 represents the fourth industrial revolution. I4.0 makes extensive use of advanced technologies, and researchers have conducted extensive discussions and studies on it (Pereira & Romero, 2017; Zhou et al., 2015). However, few authors believe that there is still much room for more research on its impact in different manufacturing industries. Industry 4.0 is a concept that embodies the upcoming industrial model and the implementation of various things. These include the implementation of cyber-physical systems (CPS), Internet of Services (IOS), Internet of Things (IOT), big data, cloud manufacturing, augmented reality, and robotics (Pereira & Romero, 2017). The concept of Industry 4.0 was introduced in Germany in 2011, but it has not received much attention. However, it was mentioned again at a meeting in Germany in 2013, which attracted the attention of the German government. After that, the German government made it one of its strategic initiatives (Rojko, 2017). Industry 4.0 is conceived as a smart factory, applying future-oriented machinery and state-of-the-art communication and information systems (Sanders et al., 2016). This revolution will transform the industry into more efficient and effective production, while making communication an important part of it (Luque et al., 2017). However, as mentioned by Sanders et al. (2016), the entire process of implementing I4.0 and making it operational is a cost-intensive process. As with previous revolutions, countries and companies need some time to adapt to the new revolution. However, few countries have introduced policies to implement Industry 4.0 in their manufacturing industries. Germany is at the forefront of its applications, followed by Brazil and Spain (Sanders et al., 2016; Luque et al., 2017; Tortorella & Fettermann, 2017). 2.3. Food manufacturing The manufacturing industries around the world are dominated by large enterprises. Whether it is the automotive, aerospace, or pharmaceutical industries, all of these industries tend to have a large manufacturing plant that faces multiple regions. However, this is not the case in the food manufacturing industry. The food manufacturing industry is made up of small and medium enterprises (SME) and multinational companies (MNC). In addition, unlike other industries, these companies tend to move small manufacturing units closer to consumers (Bolling & Gehlhar, 2005). The food manufacturing industry is composed of a variety of products, which vary in all aspects from production time to delivery time, or whether they are perishable items or not. The production process of these products varies according to their characteristics. In addition, the supply of these products also varies according to their attributes (Dora et al., 2015). In addition, legislation is another issue facing the food manufacturing industry, as these issues vary from region to region. It is important to understand that the food manufacturing industry starts from the farmer and ends with the final consumer (Lawrence & Friel, 2020). The food manufacturing industry produces a wide range of products, and each product has different production processes and supply chain requirements. This implies that different products have different expiration dates and different manufacturing processes. In addition, the product line also depends on the market in which it is produced. Similarly, marketing practices vary by product and market to be sold (Bolling & Gehlhar, 2005). In addition, the products produced by the food manufacturing industry are affordable, convenient and durable. These products include nominally processed foods that can be used in people's daily lives. The industry can mass produce food that can also be cooked at home. The difference between them lies in the characteristics that food manufacturing companies instill in order to achieve goals. These characteristics include shelf life, durability, strong flavor, and low cost (Lawrence & Friel, 2020). Since the food industry is composed of SMEs and multinational companies, it is important to understand the difference between the two and the difference between them. SMEs are small and medium-sized companies that focus on the production and sale of products in a limited area (Dora et al., 2015). Among small and medium-sized enterprises, small enterprises are based on the local area, and medium-sized enterprises are based on the state. In addition, SMEs have some advantages over multinational companies, including the participation of senior management, smaller team sizes, and informal culture and structure. These advantages help these companies make decisions more effectively (Lawrence & Friel, 2020; Dora et al., 2015). Read Less