Over the last few decades, companies around the world have been looking to improve their production methods, seeking a balance between quality, time and costs. This quest for continuous improvement is the objective of Lean methods. If we take a closer look at the industrial world, we can see that increasingly rapid technological advances are forcing factories to adapt to remain competitive. We talk about industry 4.0. What is the link between Lean Manufacturing and Industry 4.0? How can these concepts be combined to benefit industrial players?
Before getting into the heart of the matter, here are a few reminders about the concepts we are talking about in this article.
The concept of "Lean manufacturing" is attributed to Toyota. Indeed, after the Second World War, the company completely revised its way of producing vehicles to meet the growing demands of customers. With its success, this philosophy quickly spread throughout the world.
Lean consists of optimizing the entire production chain without putting customer requirements in second place. Thus, we seek to improve the production flow as a whole. For example, we make sure to reduce the rate of scrap, or to avoid unnecessary movements. But lean is not just about that. The idea is to provide a good basis for operational excellence by creating a culture of continuous improvement and empowering employees.
The concept of Industry 4.0 involves the use of innovative technologies in factories. This covers technologies such as the Industrial Internet of Things (IIoT), cloud, edge computing as well as other key concepts such as machine-to-machine communication (M2M) and cyber-physical systems (CPS).
Indeed, the foundation of the fourth industrial revolution lies in automation. The exchange of data collected by the above-mentioned technologies serves the purpose of making industrial practices more efficient and autonomous.
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Thus, faced with the technological challenges of the current industrial context, the so-called "Lean" methods have also evolved.
At the crossroads between industry 4.0 and lean manufacturing, Lean manufacturing 4.0 is also called "Lean Automation", "Smart Lean" or "Lean industry 4.0".
In order to maximize their chances of achieving operational excellence, it is in the best interest of plants to implement lean methods coupled with Industry 4.0 tools.
Indeed, the data retrieved in real time allows an ideal collaboration between humans and machines, which provides a global view of production and allows operators to make the necessary adjustments in real time.
In fact,a study by BCG shows that companies that combine lean and Industry 4.0 can achieve a 40% cost reduction. In other words, the combination of lean and industry 4.0 can double the savings achieved compared to the application of each of them separately.
The Lean Manufacturing 4.0 approach amplifies the benefits of each of these concepts separately. Here are some examples:
In the digital age, it has never been easier for manufacturers to get a clear picture of their customers' needs. For example, advanced data analysis (including artificial intelligence) allows for trending and even prediction of future customer needs and requirements.
Another example is mass customization. Today, customers have relatively advanced customization options, which is made possible by the integration of automated and semi-automated robots into production lines.
Thus, one of the key concepts of lean, "just in time", is reinforced by the technological levers of Industry 4.0.
A continuous improvement program on a production line can selectively change a variable, test it in real time and review the results accordingly. New technologies such as simulation tools allow manufacturers to test their assumptions in the virtual world first, before implementing them in the physical world.
This is another way to reinforce a key lean concept through Industry 4.0 tools.
Although Lean Manufacturing 4.0 is a valuable tool for achieving operational excellence, we feel it is essential to mention certain limitations. Indeed, it is important to keep in mind that Lean Manufacturing 4.0 is a philosophy, an ideal to strive for, and not a model to be replicated at all costs.
The superposition of new technologies can ultimately make the operation of a production line more expensive. In addition, this requires an increase in the skills of both operators and managers. The shortage of skills on the market is a major concern for manufacturers who are struggling to recruit their talents.
If in-house skills upgrades are not possible, plants must rely on external expertise to maintain these technologies. In both cases, these are costs to be taken into consideration.
Read more on this subject: Talent management, a key strategy for manufacturers.
Lean methodologies have helped companies around the world improve their productivity and customer experience. Now, thanks to the technologies driven by Industry 4.0, manufacturers have a clearer understanding of the entire value chain to identify improvement opportunities and ultimately gain a competitive advantage.
It is therefore no longer one or the other of these concepts that should be considered, but rather the combination of these two visions. Lean manufacturing 4.0 is still in its infancy, especially since we are already talking about the fifth industrial revolution.
