Conceptualizing Smart Manufacturing Readiness-Maturity Model for Small and Medium Enterprise (SME) in Malaysia

Abstract

Manufacturing enterprises today are forced to face radical challenges in the disruptive concepts of Smart Manufacturing (SM) and Industry 4.0 to stay competitive. Most Multinational Enterprise (MNEs) have initiated their journey towards adopting SM. As a mainspring of many manufacturing economies, Small and Medium-Enterprise (SMEs) are still struggling to understand the complexity offered in SM, and many of them are not ready to embrace the concept of SM. To overcome this, SMEs first need to assess their readiness and maturity before embarking on an SM journey. The existing available readiness assessment model seems to be suitable for MNEs, and there is still a lack of tailored models that suit SMEs. This paper sought to pinpoint the conceptual framework from the review of the existing readiness-maturity assessment and identify the gap of existing model as well as proposed a tailored model framework that are suitable for SMEs. Ultimately, this model will be used to pursue a comprehensive scholarly study across Malaysia. The proposed model is enhanced with 4M attributes as the dimension and embedded with the characteristic of Industry 4.0 build component to help the SME’s overcome the possible uncertainties in adopting SM concept.

I4.0 assessment and roadmap: a case study in a medium-sized company in the consumer goods sector

“…According to [14], the main barriers/obstacles to implementing Industry 4.0 in SMEs are related to the skill set of people, that is, skilled labor, and economic analysis/benefits that can be achieved from the use of new technologies. In light of competitiveness, this scenario needs to change, and SMEs will move forward and learn quickly to appreciate and implement emerging technologies and digital practices [9]. [15] comment, in their study, that there are still few studies related to I4.0 application and concepts in SMEs.…”

“…The application of a maturity model can serve as a guide to help SMEs achieve maturity in its explicit sphere and help them move in the right direction [9]. The maturity model shows a trend, and each model has its own forms, dimensions, and criteria.…”

“…Considering the initial challenges, maturity assessments stand out as an integral tool for manufacturing companies, especially SMEs [9], as SMEs have more difficulty in extracting the full potential of I4.0. A good and structured maturity model enables the initialization of the digital development process and helps to decrease uncertainties and risks about the technologies to invest in [10].…”

“…Maturity models can be used to guide SMEs to move in the right direction and reach maturity. A proper transformation plan as well as measuring its maturity index are essential to ensure a stepwise transition and to achieve a complete and successful transformation [9].…”

A Capability Maturity Model for Intelligent Manufacturing in Chair Industry Enterprises

“…Su Qingfu and others, based on the Chinese national standard, established an evaluation model of intelligent manufacturing capability maturity, combined with the characteristics of the automobile industry, adding the fields of culture, supply chain, and logistics capabilities, and proposed an evaluation index of intelligent manufacturing capability maturity unique to the automobile industry [25]. The model proposed by Syed Radzi Bin Rahamaddulla and others is enhanced with 4M attributes as the dimension and embedded with the characteristics of Industry 4.0 components to help SMEs overcome the possible uncertainties in adopting the SM concept [26]. Shan Wu and others constructed a composite dual innovation capability model for intelligent manufacturing enterprises, and provided model evaluation indicators for a reference.…”