Evaluation of the Barriers in the Adoption of Automated Technology by the Manufacturing Sector: A Case from India

Abstract

The advent of Industry 4.0, i.e., automated manufacturing, has shifted the paradigm of the manufacturing process. With the assistance of computers, the automated manufacturing technique increases the production capability along with improved precision. Enhancement of production capability with industrial automation technology has provided a competitive edge for the manufacturing firm. With such automation, it becomes easy for a manufacturing firm to meet the dynamic market demand. However, automated production is not affordable for many industries, as it requires a huge upfront investment. The shift toward automated manufacturing began in developed countries a decade ago; however, the developing countries are still relying on conventional manufacturing. To cope with the global manufacturing trend, it becomes necessary for the manufacturing sectors in developing countries to adopt automated manufacturing techniques. However, many challenges hamper the industrial shift toward automated manufacturing. Considering the challenges, this study intends to identify, evaluate, and prioritize the challenges in adopting automation technology in the Indian context. With the assistance of a literature survey and expert interaction, nine critical challenges the Indian industries face in the adoption of automated technology are identified. Then, using the best–worst method (BWM), these challenges are prioritized based on their weight. An increase in unemployment, less versatility and unpredictable cost are identified as the three most prominent challenges Indian industries face in the implementation of automation. From the outcomes, the study suggests some implications for managers, which may make the automation feasible.