Smart Factories and Indian MSME

Abstract

The development of smart factories in the MSME sector poses various challenges in its implementation. We identified ten such challenges for implementing smart manufacturing systems in the Indian MSME sector, based on a systematic literature review and discussion with experts from both industry and academia. Then, we applied Fuzzy-ISM (Fuzzy Interpretive structural modeling) for identifying strengths, while building relationships between these challenges. We developed an ISM digraph to demonstrate how these challenges drive one another. Our analysis shows that data security and trust issues, along with external competition are the most critical challenges with medium driving power and low dependence. We believe that our findings would help the management make more informed decisions and develop mitigation strategies with more individual focus or level focus.