Decoding Lean with Industry 4.0 Transformation: A Model comprising of ROI, Operational Efficiency and Human Capability as Systemic Success Factors in Indian Manufacturing setup

Abstract

The production processes can be improved by integrating the Lean Manufacturing principles with Industry 4.0 technologies. It helps an organization to stay competitive in the long run. In this paper, the DEMATEL approach was used to analyze the interrelationships among nineteen Critical Success Factors (CSFs) that affect the optimal integration of Lean and Industry 4.0. The direct-relation matrix estimated from expert evaluation revealed that the ROI and Operational Efficiency are the most critical CSFs. It was observed that the Top Management Support has a greater causal significance. It indicates that the commitment of leadership is paramount in driving strategic orientation and resource deployment in such transformation initiatives. The results show a balanced system with ten causal and nine effect factors. The causality factors primarily comprise considerations of financial and operational performance and innovation capacity as the fundamental motivators for Lean– Industry 4.0 integration. On the contrary, human resource development and organisational culture present themselves as significant effect factors as domains that require constant and active reflection once strategic and operational underpinning have been established. The research presents a practical perspective for manufacturing companies seeking to create clear pathways in their Lean–Industry 4.0 adoptions to align technology development with human resource capability generation.