Lean and Digitalization—Contradictions or Complements?

Part 1: Lean ProductionInternational audienceLean has been the dominant production paradigm for the past few decades. With its focus on reducing complexity, lean suggests to limit the use of digital technologies on the shop floor. Recent advancements in digital technologies, however, promise significant improvements through its ability to manage complexity. This apparent conflict raises the question as to whether these two paradigms—lean and digitalization—contradict or complement each other. Furthermore, there is ambiguity about whether or not firms should excel in lean before investing in digitalization. This paper contributes to this discussion through an empirical investigation of this relationship. It draws on survey data from Swiss manufacturers as well as consecutive interviews with selected firms. The analyses indicate a positive correlation between the digital maturity and the lean maturity of firms. This relationship is discussed from two perspectives: first, how digitalization can support lean and, second, how lean can support digitalization. Furthermore, the different characteristics of companies of different maturities in lean and digitalization are examined. It is concluded that a favorable organizational culture and some specific continuous improvement practices help the mature implementers of lean and digitalization to achieve superior operational performance

Coordinating knowledge creation: A systematic literature review on the interplay between operational excellence and industry 4.0 technologies

In the process of creating new knowledge, literature has scarcely studied how bodies of knowledge arising from different sources should be coordinated to enhance performance. In particular, the present research focuses on two sources of newly created knowledge, i.e., operational excellence and Industry 4.0, to understand whether they should be implemented sequentially or simultaneously. Operational excellence refers to the implementation of practices such as just in time, total quality management, and Six Sigma that help a firm to create knowledge that facilitates waste reduction and customer value improvement. Industry 4.0 refers to the implementation of new technologies such as artificial intelligence, big data, robotics, Internet of Things, and laser cutting that help a firm to create knowledge to improve overall business performance. We identified and analyzed 30 papers published in 13 peer-reviewed journals and conference proceedings in the field of operations management. Our findings based on the systematic literature review suggest that the interplay between operational excellence and Industry 4.0 can be categorized into four groups: (1) Industry 4.0 supports operational excellence; (2) operational excellence supports Industry 4.0; (3) complementary; and (4) no interdependence. Majority of the papers under study are in the first category, suggesting Industry 4.0 technologies as enabler of operational excellence