OPTIMIZING GLOBAL COST-TO-SERVE THROUGH ROBOTICS AND DIGITAL SMART FACTORIES: A MULTI-PLANT MANUFACTURING MODEL
Keywords:
Industry 4.0, Cost-to-Serve Optimization, Smart Factories, Global Manufacturing, RoboticsAbstract
This article examines the optimization of global cost-to-serve in manufacturing through the implementation of robotics and digital smart factories. In the context of Industry 4.0, we present a comprehensive framework for multinational manufacturers to leverage advanced technologies across their global plant networks. Our research, based on extensive literature review and empirical data from multiple countries, addresses key considerations including technology selection, implementation strategies, workforce development, and network optimization. The article reveals significant benefits, including an average 30% reduction in labor costs, 25% increase in overall equipment effectiveness, and 18% reduction in overall cost-to-serve. However, challenges such as high initial investment, workforce reskilling, and technology integration complexities are also identified. The proposed decision-making framework guides manufacturers through assessment, technology mapping, cost-benefit analysis, implementation planning, network optimization, and continuous monitoring stages. This article provides valuable insights for manufacturing companies seeking to enhance their global competitiveness through the strategic adoption of Industry 4.0 technologies.
References
M. E. Porter and J. E. Heppelmann, "How Smart, Connected Products Are Transforming Competition," Harvard Business Review, vol. 92, no. 11, pp. 64-88, Nov. 2014. [Online]. Available: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
R. Y. Zhong, X. Xu, E. Klotz, and S. T. Newman, "Intelligent Manufacturing in the Context of Industry 4.0: A Review," Engineering, vol. 3, no. 5, pp. 616-630, Oct. 2017. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S2095809917307130
A. G. Frank, L. S. Dalenogare, and N. F. Ayala, "Industry 4.0 technologies: Implementation patterns in manufacturing companies," International Journal of Production Economics, vol. 210, pp. 15-26, Apr. 2019. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S0925527319300040
C. Merschmann and U. W. Thonemann, "Supply chain flexibility, uncertainty and firm performance: An empirical analysis of German manufacturing firms," International Journal of Production Economics, vol. 130, no. 1, pp. 43-53, Mar. 2011. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S0925527310004068
L. D. Xu, E. L. Xu, and L. Li, "Industry 4.0: state of the art and future trends," International Journal of Production Research, vol. 56, no. 8, pp. 2941-2962, 2018. [Online]. Available: https://www.tandfonline.com/doi/full/10.1080/00207543.2018.1444806
S. S. Kamble, A. Gunasekaran, and S. A. Gawankar, "Sustainable Industry 4.0 framework: A systematic literature review identifying the current trends and future perspectives," Process Safety and Environmental Protection, vol. 117, pp. 408-425, Jul. 2018. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S0957582018301629
H. Lasi, P. Fettke, H.-G. Kemper, T. Feld, and M. Hoffmann, "Industry 4.0," Business & Information Systems Engineering, vol. 6, no. 4, pp. 239-242, Aug. 2014. [Online]. Available: https://link.springer.com/article/10.1007/s12599-014-0334-4
T. Stock and G. Seliger, "Opportunities of Sustainable Manufacturing in Industry 4.0," Procedia CIRP, vol. 40, pp. 536-541, 2016. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S221282711600144X
S. Tiwari, H. M. Wee, and Y. Daryanto, "Big data analytics in supply chain management between 2010 and 2016: Insights to industries," Computers & Industrial Engineering, vol. 115, pp. 319-330, Jan. 2018. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S0360835217305508
M. Brettel, N. Friederichsen, M. Keller, and M. Rosenberg, "How Virtualization, Decentralization and Network Building Change the Manufacturing Landscape: An Industry 4.0 Perspective," International Journal of Mechanical, Aerospace, Industrial, Mechatronic and Manufacturing Engineering, vol. 8, no. 1, pp. 37-44, 2014. [Online]. Available: https://publications.waset.org/9997144/how-virtualization-decentralization-and-network-building-change-the-manufacturing-landscape-an-industry-40-perspective
J. Lee, B. Bagheri, and H.-A. Kao, "A Cyber-Physical Systems architecture for Industry 4.0-based manufacturing systems," Manufacturing Letters, vol. 3, pp. 18-23, Jan. 2015. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S221384631400025X
B. Esmaeilian, S. Behdad, and B. Wang, "The evolution and future of manufacturing: A review," ResearchGate, Apr. 2016. [Online]. Available: https://www.researchgate.net/publication/301346190_The_evolution_and_future_of_manufacturing_A_review
L. Monostori et al., "Cyber-physical systems in manufacturing," CIRP Annals, vol. 65, no. 2, pp. 621-641, 2016. [Online]. Available: https://www.researchgate.net/publication/306426761_Cyber-physical_systems_in_manufacturing
World Economic Forum, "The Future of Jobs Report 2020," World Economic Forum, Geneva, Switzerland, Oct. 2020. [Online]. Available: https://www.weforum.org/reports/the-future-of-jobs-report-2020
Deloitte, "2019 Deloitte and MAPI Smart Factory Study," Deloitte Insights, 2019. [Online]. Available: https://www2.deloitte.com/us/en/insights/industry/manufacturing/driving-value-smart-factory-technologies.html
