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Positive Effect of Industry 4.0 on Quality and Operations Management

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

Positive Effect of Industry 4.0 on Quality and Operations

Management
https://doi.org/10.3991/ijoe.v17i09.24717

Hanane Rifqi(), Abdellah Zamma, Souad Ben Souda, Mohamed Hansali

HASSAN II University, Casablanca, Morocco
hanane.rifqi.14@gmail.com

Abstract—the last decade has witnessed the birth of technological advances

such as the IoT, artificial intelligence, machine learning and augmented reality.
These technologies have driven the transition to Industry 4.0 where they have
enabled the digitization of manufacturing with potential gain. Also Industry 4.0
has given birth to several new hybrid concepts as well as several management
operations to take advantage and become more efficient by using IoT and these
new technologies. In our paper, we discuss the effect of Industry 4.0 on manage-
ment and quality practices by answering the following questions based on the
literature review: What is the positive effect of Industry 4.0 on quality improve-
ment and operations management? How does Industry 4.0 integrate concepts
(Lean, Six Sigma, Supply Chain ...) to create new paradigms?

Keywords—Industry 4.0, Technologies, Quality Improvement, Quality 4.0,

Lean Manufacturing, Six Sigma, Big Data, IoT, review.

1 Introduction

Industry 4.0 represents a transformation in how manufacturing companies do busi-

ness and a significant opportunity to apply innovation to companies, industries, and
economies[1].In this context that today's manufacturing companies must produce the
highest quality products in order to meet the ever-increasing demands of customers and
still be competitive.
The integration aspects of Industry 4.0, rising customer expectations, global compe-
tition and ever-increasing product complexity are the reasons why quality management
has become indispensable in today's companies and quality has become an integral part
of corporate goals, strategies and policies [2].
Industry 4.0 is a very large area that includes: production processes, efficiency, data
management, consumer relationship, competitiveness, and much more. At the same
time, it is evident that Industry 4.0 has become a new topic for management scholars
and business economics disciplines and a number of contributions covering various
problems and aspects that have been published [3].
It was assumed that the term "4.0" combined with other words had been used by
researchers to determine new concepts that were defined by the authors of the paper as

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

"Industry 4.0 sub-papers". As a result, a list of Industry 4.0-based concepts was identi-
fied [4, p. 0].
This article will discuss the effect of Industry 4.0 and its technologies on operations
management, especially for the lean, supply chain management and six sigma concepts
that have been able to take advantage of the digitalization and the specific tools of In-
dustry 4.0 to meet the new environmental challenges. Also, the evolution of quality
towards the new concept 'quality 4.0' will be discussed. This new perspective of quality,
which can allow companies to see an increase in efficiency of 80% and an increase in
productivity of 50% [5].
This paper includes four sections to allow a detailed view on the relevance of Indus-
try 4.0 on quality improvement and management methods. After this introduction, the
second section includes a literature review on the three main axes which are industry
4.0, quality development and various management methods. In the third section we
outline the context of Industry 4.0 to create hybrid models such as Quality 4.0, Lean
Sigma 4.0 and other operational management models. A conclusion and research per-
spectives will be presented in the fourth and last section.

2 Literature review

2.1 Industry 4.0

"Industry 4.0", "Production 4.0", Integrated Industry" "Digital Factory", "Intercon-

nected Factory", "Smart Factory, "Digital Manufacturing," " and "Human-Machine Co-
operation "are all names that refer to the fourth industrial revolution [6]that first ap-
peared in Germany [7]. From industry 1.0 with the discovery of coal to the fourth rev-
olution where digitalization is its main feature, several factors that led to this transition
such as: competition, globalization, and consumer demands.
Industry 4.0 is very well known by the diversification and power of its tools and
techniques, such as Internet of Things IoT, Big data analytics, artificial intelligence,
Deep learning, etc. (see figure 1)[8, p. 0], [9]. These technologies that have made net-
works and products more intelligent [10] and also have participated in the emergence
of several concepts such as Lean Six Sigma4.0, Lean 4.0, sustainability 4.0, agile 4.0,
maintenance 4.0, logistics 4.0, supply Chain Management 4.0, quality 4.0 and others
that are trying to be adapted to this new digital environment.
The use of Industry 4.0 tools and techniques has been proven in the literature via the
huge number of publications. The proven benefits have encouraged researchers and
industrialists to produce and participate in the research of this field where the papers
production on Industry 4.0 during the year 2019 on the databases of both Wos and
SCOPUS journals has witnessed a significant increase compared to the last years [4].

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

Fig. 1. The different Industry 4.0 technologies [11]

For the results published in the literature and which concern the industrial environ-
ment, the companies which follow the industry 4.0 can minimize their costs of logistics
between 10% and 30%, the costs of production between 10% and 30%, the costs related
to the management of quality from 10% to 20% [12], and by respecting the require-
ments of the industry 4.0 standard companies will have an impact on [13]:

• Conditions of qualification,
• Quality of work,

New ways of organizing work and modifying many interactions in the man-machine
interface that we can guess as new forms of collaborative work in the context of a digital
factory.

2.2 Quality improvement & control

Quality is an old term that was born with human and represents a perfect image of
the wished good. However, nowadays quality and its achievement has become a chal-
lenge for all types of industries. Adding that the factors that allow the efficiency
achievement and the competitiveness maintain in the organizations possess a quality
obtained at lower costs, by the minimization of the wastes, the optimization of the chain
of the value and a quality mainly oriented to the customer [14]. This is achieved through
the deployment of quality management and operations management models, quality
management systems, quality control improvements, the development of quality

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

improvement or customer satisfaction plans and strategies, or the deployment of quality

improvement methods.
In the beginning, the roots of many quality improvement approaches can be traced
back to production quality control thinking that emerged in the early 1920s [15], via
the statistical theory which is applied for the protection of the quality aspect of the
products. In 1924, Dr. Shewhart was able to develop a quality control chart which is
later in 1940 framed in the theory of Statistical Process Control (SPC) by the father of
quality Dr. Deming, towards more developed quality management practices by Japa-
nese industries in the 1950s as in all nations, to 1960s where quality control and man-
agement became a choice for industries [16], [17]. From this period to the present day
a set of systems, methods, models, approaches and tools have been invented in favor of
quality improvement. In addition, the last decades have seen many methods of quality
control that have been studied as well as many researches are conducted in the field of
quality control for the purpose of improving the production rate and efficiency and to
reduce costs [18].
Quality control is one of the four concepts of quality management [2] which groups
several techniques, generally statistical, applied to improve the quality of the manufac-
turing process by a very reduced variability [19]. Currently, one of the major challenges
in the manufacturing industry is a fast and accurate inspection that guarantees the high-
est standards and quality requirements at a very competitive price [20]. Even for the
supply chain of any company, it is judged efficient and optimized mainly according to
the quality control factor [21].
In the industry 4.0 era, quality like all other concepts can benefit from the new tech-
nologies for a better exploitation of the new sources and the important number of data
collected, especially to detect defects that were previously undetectable. The literature
also offers many studies and papers that address the gaps in quality control and quality
assurance through the deployment of the CPS that can identify and route products and
participate in the management of gauges and tools [22]. However, the quality control
also meets several challenges during its integration with this new paradigm "industry
4.0" either in the lack of information feedback, the required data quality, the low pro-
cessing capacity, the lack of connection between the operator and the system and other
challenges related to the improper use of technologies or data exploitation [23].

2.3 Operation management

The product customization with high quality, reduced deadlines and prices, indus-
trial digitalization, environmental considerations and other factors have forced today's
companies to think about adopting operations management approaches in order to
properly manage the operations of the different processes that they manage. Especially
since operations represent one of the three strategic functions of any organization (see
figure 2). This means that it is a vital element in achieving the organization's strategy
and ensuring its long-term survival, in particular because operations focus on the pro-
cess effectiveness and efficiency [24], [25].
The operation management OM can probably be considered as a mixture of behav-
ioral and natural sciences [26]. This management can reduce lead times either in

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

production or delivery, reduce time to develop and commercialize new products, flexi-
bly adapt production capacity and finally improve reliability and reduce costs, as well
as improve the quality of services and products [27], [28]. To accomplish these goals,
there exist different operations management approaches that allow the improvement of
several processes, where we introduce the most general ones such as the Business Pro-
cess Management BPM approach, World Class Manufacturing WCM approach, Total
Quality Management TQM approach, Lean Six Sigma LSS approach, Total Productive
Maintenance TPM approach, Supply Chain Management SCM approach, etc.

Organization

Finance Operations Marketing

Fig. 2. The three strategic functions of any organization [24]

With each industrial revolution, the concepts of MO are evolving between traditional
and modern models, where the field of management does not cease to improve and
incorporate new concepts, approaches and methodology [29]. The MO uses as a basis
the results of scientists from different fields, from those of Adam Smith to the use of
modern information and communication technologies [30], as there are researches that
have associated different approaches like lean production, business process reengineer-
ing (BPR), SCM and e-business closely with MO [31].
In operations departments, quality is one of the main concerns especially since qual-
ity control is part of the main operations management functions and within its different
approaches we find a set of approaches that are dedicated to quality management. These
approaches that are initiated by various experts such as Taguchi, Deming, Shewhart,
Juran, and others, they have established the basis of the quality approach practiced in
the different sectors [32], as well as by their participation in the foundations of quality
management and continuous improvement

3 Quality and management in the industry 4.0 era

3.1 Quality 4.0

The term "quality 4.0" is one of the concepts related to the emergence of Industry
4.0 where the new technologies allow a real-time control via IoT with no required hu-
man intervention. This term which was predicted by Watson (1998) more than 20 years
ago, for an automated quality through developed machines as well as through the in-
creasing availability of telecommunication technologies, personal computing, Internet
and networks [33]. Industry 4.0 has also enabled the transformation of the quality to a

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predictive quality, that is predicting the accurate state and outcome of the product from
the start [34].
Quality 4.0 Q4.0 is a strong new revolution of quality. However, it will not replace
its traditional methods, but rather improve and develop them through automation, con-
nectivity and digital access capacity. For example, the SPC should be improved in terms
of efficiency and productivity[35]. We can also consider that Q4.0 is the digitalization
of the Total Quality Management TQM and its impact on the quality of technologies,
processes and people [36]. Its application can take different aspects, Sader et al. [37]
provide a framework for integrating Industry 4.0 and its features with TQM and its
principles, where integration, inter-connectivity and big data can participate in improv-
ing the implementation of quality management approaches (see figure 3 ).
The term quality 4.0 includes not only the combination of TQM and Industry 4.0 but
rather several benefits related to quality. Nenadál [38] unveiled a set of characteristics
related to the new concept quality 4.0 where we find that:

• Quality 4.0 is a general term that describes a new approach to managing all quality
requirements via data.
• Industry 4.0 addresses all issues related to quality and its management in the digital
age.
• Quality 4.0 includes four main areas to be addressed and which are: development,
design, production, service and finally the corporate culture.
• Human knowledge for the evolution from traditional quality to Quality 4.0
• Quality 4.0 effectively combines the methods and tools of quality management with
the new technologies of Industry 4.0 (machine learning, Internet of Things, cloud
computing, artificial intelligence, big data, etc.) (see table 1)

Fig. 3. The TQM Framework in the Industry 4.0 Era [37]

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Paper—Positive Effect of Industry 4.0 on Quality and Operations Management

Table 1. Benefits of applying industry 4.0 technologies in quality

I 4.0 Technologies Advantages and benefits
Creating a safety and quality culture through the proper execution of tasks by finding
levers within processes that can ensure alignment and consistency throughout the or-
Machine learning ganization Creating a safety and quality culture through the proper execution of tasks
by finding levers within processes that can ensure alignment and consistency
throughout the organization [34].
Exploiting text analytics tools dedicated to big data to measure and analyze customer
satisfaction by quality professionals [55]
Data science and statistics: problem solving through prediction, model generation and
viable solutions, identification of relationships through aggregation, dynamic model-
Big data and Big
ing and real-time pipelines [34].
Data Analytics
Improving the quality management approach implementation through the use of Big-
Data [37].
Exploiting data-mining principles in smart manufacturing to improve product and
process quality [56].
Ease of defect detection by categorizing defects [20].
Deep Learning Improving product quality through complex pattern recognition and prediction (Neu-
ral Networks and Deep Learning) [34].
enabling automation of sequence control, quality control and safety monitoring [57].
Internet of things Improving the quality assurance process efficiency through the Industrial Internet of
IoT things (IIoT) and its functionalities [58], for example, performing quality audits using
drones connected to IoT networks [59].
Big data, AI, predictive software is a new type of problem solving tool seems to be a
Artificial Intelli-
new frontier for people working in the quality field [22].
gence
Making complex quality decisions [34].
New technologies such as RFID and AutoID: reducing counterfeiting through prod-
uct traceability and effective communication, as well as increasing quality and effi-
ciency by providing detailed information in real time [60][55] and allowing a mis-
take-proof for purchases and minimizing quality issues related to incorrectly pur-
chased parts, since purchase orders are automatically loaded with the required parts,
when inventory levels are low [51] [55].
Blockchain: Contributing to ensure data quality, trust and developing a quality cul-
ture through continuous monitoring that allows the authorization of transactions that
meet quality objectives [34].
Smart sensors: ensuring product quality control [37].
Other technologies ERP systems: meeting future research challenges in the Industry 4.0 era [2].
and techniques CAQ (Computer Aided Quality) systems: enabling better management of quality data
variety. [61].
Závadská and Závadský [40] presented the advantages of a collection of specific in-
dustry 4.0 technologies of which we have outlined those that can participate in the
quality improvement
• Management of non-compliance by using smartwatches;
• Management of non-compliance, quality control, change management, dispatch
and handling through the use of smart glasses;
• Virtual reality simulation will be a standard technology in product development and
continuous improvement.

According to the surveys conducted by the research company LNS, most manufac-
turing companies will need to be transformed to Industry 4.0 including the conversion
of quality management to Quality 4.0 [36]. This smart quality will enable intelligent
monitoring and diagnosis, real-time decision making and automatic tracking of equip-
ment and materials, especially for processes that have become more volatile and

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complex [39],also a prediction which states that within five years smart gloves will be
most commonly used for quality control, shipping and handling [40].
In the quality 4.0 era, quality professionals will be more able to have responses and
solutions on product robustness, process excellence, customer satisfaction, new product
development risks, traceability and transparency [41]. However, they must be informed
about the quality management developments and this new trend "Quality 4.0" where its
integration often involves external consultants [42].

3.2 Management Methodologies with the industry 4.0

In this new digital environment, Industry 4.0 is experiencing the existence and the
support of a multifaceted set of management concepts, tools and approaches aimed at
achieving operational excellence. This excellence vision leads manufacturing leaders
to confront a myriad of constantly evolving challenges[43] and during this fourth rev-
olution various changes in all aspects of management, both internally and externally
within the relationships with all the ecosystem actors in which the company operates
[3]. From this perspective, the literature suggests the best management practices for
companies which are ready for the fourth industrial revolution.These practices make
smart companies with smart employees, with a climate of innovation and learning, add-
ing that these factors develop the capabilities that successfully manage overall business
facing the globalization [44].
Moreover, operations management has been witnessing changes, improvements and
a strengthening with the emergence of the industry 4.0, which is known by an immense
production of data and by a highly developed tools and technologies. Moreover, to
manage operations in this environment which has become increasingly complex, con-
nected and rapidly changing, it is necessary to know and learn how to use these new
technologies and develop cognitive skills that generate the wisdom and knowledge that
they will need to make better decisions and to optimize processes, since they are the
key characteristics in operations management [45]. On the other hand, today, we meet
a multitude of operations management concepts and improvement tools proving a sig-
nificant impact on the industrial environment, such as lean and agile manufacturing,
sustainability, six sigma, Business Process Reengineering (BPR) and other multipur-
pose tools.
The interaction of these management concepts with industry 4.0 has allowed them
to benefit from digitalization and from the new technologies [46]. Lean Manufacturing
and Lean Six Sigma are two examples that have benefited from this revolution by im-
proving their tools and by using new technologies in their implementations.
For technology exploitation, the interaction of Lean tools with Big Data Analytics,
virtual simulation, the Cloud, and augmented reality have digitized and improved Just
in Time concept to Just in Time 4.0 (JIT 4.0) and this is the case for Kaizen 4.0, Kanban
4.0, Poka-Yoke 4.0, Value Stream Mapping 4.0 (VSM 4.0) and Total Productive
Maintenance 4.0 (TPM 4.0) [47] (see table 2) [48] to have the potential to be connected,
intelligent and easy to implement. In addition, Industry 4.0 offers new techniques and
tools that can be solutions in Lean projects [49], [50], as they can participate in the
stabilization and support of the implementation of its principles [51]. They also enable

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real-time data collection throughout the value chain, and the IoT allows different pro-
cesses to be fed in real time via the exploitation of cognitive algorithms [52].

Table 2. Lean tools before and after industry 4.0

Tool before industry 4.0 Tool with industry 4.0
Kanban: tool used to pull the production that E-Kanban Systems: new virtual kanban system recog-
means we don't produce if only we need with the nized automatically via sensors or by the utilization of
necessary quantity. this system works with the active RFID tag which linked to the company facility’s
cards and kanban boards wireless LAN
Poka-yoke: devices to eliminate production errors Automation in Error-Proofing: interconnected by bar
and human error code scanners, electric fastening tools and RFID tags
Standardized work: creating the best practice of a Augmented Reality based work standardization: with
process usually through lessons learned augmented reality we can use 3D information from in-
dustrial Digital Mock-Up to elaborate standards
Heijunka: a method for leveling the production by Digitized Heijunka: displays with graphical user inter-
converting customer orders into smaller, regular faces GUI which are linked to MES and the production
batches line
Total Productive Maintenance (TPM): support predictive maintenance: By the use of the augmented
production and quality through the availability of reality and sensors to detect before failure the abnor-
machines, equipment and processes mal conditions

These Industry 4.0 benefits and solutions will support companies in becoming "lean"
without having to "strive to become lean."[53]. Finally, the synergy between the two
concepts "industry 4.0" and "lean" must be considered a new concept aiming at opera-
tional excellence as Lean focuses on the waste elimination to accelerate the physical
flows and industry 4.0 aims at accelerating the informational flows [54, p. 0].
Also, the informational flows and data in LSS projects play a very important role,
especially since most of the six sigma methodology tools are purely statistical tools.
The amount of data available is growing rapidly, which provides opportunities to im-
prove each phase of the famous DMAIC LSS roadmap and to consolidate its applica-
bility in the modern data era [62]. However, LSS tools are still unable to process the
voluminous data produced by Industry 4.0 technologies, yet BDAs in LSS projects con-
tribute to the improvement of quality, processes, supply chain, profit, customer satis-
faction [63] and its use has been increasingly established due to its contribution to ac-
celerating the process of extracting key information from Big Data [64]. Not only BDAs
that can positively influence LSS, but other technologies can also be called during each
phase of DMAIC to improve the implementation results that were previously thought
unattainable. In brief, Industry 4.0, IoT and Lean Six Sigma create an absolutely auton-
omous supply chain with an ideal process flow, highly optimized and free of waste and
defects [21].
The SCM has taken in the industry 4.0 context several more names like Internet of
Things, Supply Chain 4.0, E-Supply Chain, digital supply network (DSN), E-logistics,
or Logistics 4.0 where industry 4.0 increases the automation and digitization of manu-
facturing, creates a digital process to facilitate the interactions between all company
parts[65] and this combination can influence by advancing the operational intelligence
of the production network and end customer loyalty. Adding that SCM 4.0 creates

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competitive advantage from product supply and availability, cost reduction and market
share increase [66].
these benefits are gained through new technologies exploited within the SC, e.g. IoT
makes SC management more efficient, Blockchain technology allows real-time track-
ing and improvement of passengers and goods throughout the SCM, CC assimilation
promotes cooperation among SC members, etc [67]. In addition, Industry 4.0 itself
helps industries integrate actions to protect and control the environment by converting
supply chains to sustainable supply chains 4.0 [68], on condition that the I4.0 potential
is understood through a successful adoption and diffusion of its new technologies [69].

4 Conclusion

Industry 4.0 has transformed the perspective of many concepts where companies
must understand the influence and impact of its adoption as well as the adoption of
different technologies that provide a power that was never attainable. Today, the search
for operational excellence requires companies to take advantage of the concepts and
tools that exist today.
Operations management and quality have also benefited from this revolution, with
this article we strive to address the positive influence of Industry 4.0. A literature review
on the influence of new technologies and big data analytics to force and improve quality
by detailing the effect of several technologies (either for specific or for common use)
and how industry 4.0 can participate in achieving quality 4.0. Moreover a set of char-
acteristics related to the new quality 4.0 concept is described.
Furthermore, we describe the effect on several concepts of operations management
and more precisely on Lean and its toolbox (Kaizen, Kanban, Poka-Yoke, Value Stream
Mapping VSM and Total Productive Maintenance TPM), Lean Sigma and Supply
Chain Management. We have also discussed the different new advantages given by
Industry 4.0 either in the big data processing or in the use of the new technologies.
This paper deals mainly with the bright side of Industry 4.0 concerning quality and
operations management, but it does not deal with the risks related to the implementation
of Industry 4.0 and the use of its new technologies, the obstacles related to the work in
these new conditions, etc. Industry 4.0 as a concept will be an essential element in all
companies, but it is necessary to study well the knowledge related to this context before
starting this digital transition. But the literature need more research on this new revolu-
tion and questions that not yet answered by industrials and researchers. In addition, in
this Industry 4.0 context, we need to examine how well the existing theory is repre-
sentative of talent management [70].
As a research perspective, we plan to study the negative effect of Industry 4.0 again
on quality and operations management. Then, the realization of a survey concerning the
adoption of the solutions of the industry 4.0 in the same context of the quality and the
management of the operations where the companies of the north of Africa will be our
target of studies especially to detect the limits and the obstacles which prevent them to
take advantage of this new powerful revolution.

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0181

6 Authors

Hanane Rifqi ENSET Mohammadia, SSDIA Laboratory, HASSAN II University,

Casablanca, Morocco.
Abdellah Zamma ENSET Mohammadia, SSDIA Laboratory, HASSAN II Univer-
sity, Casablanca, Morocco.
Souad Ben Souda ENSET Mohammadia, SSDIA Laboratory, HASSAN II Univer-
sity, Casablanca, Morocco.
Mohamed Hansali Department of economics and management, HASSAN II Uni-
versity, Casablanca, Morocco.

Article submitted 2021-06-11. Resubmitted 2021-07-17. Final acceptance 2021-07-17. Final version pub-
lished as submitted by the authors.

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