Operational performance improvement by reducing waste in aluminum window production with industry 4.0 technologies

Main Article Content

Satthachai Kaewkongphan
Panutporn Ruangchoengchum

Abstract

This research aimed to study factors that affect operational performance of aluminum window production and introduce guidelines for improving operation by reducing waste in the aluminum window production with industry 4.0 technologies. A set of questionnaires is a research instrument for collecting data from the sample comprises 140 parcels the aluminum window production worker, and the data were analyzed by a Structural Equation Model (SEM). The study found that factors of waste and industry 4.0 technology are factors that influence on operational performance. Hence, the guidelines for improving operation by reducing waste in the aluminum window production with industry 4.0 technologies are 1. Applying real-time sensor technology into machine to control production from head office 2. Installing automatic sensor technology to identify products with re-layout of production and stock area 3. Installing 5G to assist transferring data via cloud computing, as well as 4. Applying cloud computing with head office for analysis data and production plan. As a result, production can increase quantity of finished goods to 1,400 units per day that also increase profit margin to 25%.

Article Details

How to Cite
Kaewkongphan, S., & Ruangchoengchum, P. (2023). Operational performance improvement by reducing waste in aluminum window production with industry 4.0 technologies. Kasetsart Applied Business Journal, 17(26), 72–88. retrieved from https://so04.tci-thaijo.org/index.php/KAB/article/view/258812
Section
Research article

References

จักรกฤช ยั่งยืน และ ปณัทพร เรืองเชิงชุม. (2559). การลดความสูญเปล่าในกระบวนการเชื่อมประกอบรถเข็นด้วยแนวคิดลีนของบริษัท ดี-พัฒนะมงคล จำกัด จังหวัดระยอง. วารสารเกษตรศาสตร์ธุรกิจประยุกต์, 10(12), 1-18.

ธีรชาติ คงสมัย และ จุฑามาศ ทวีไพบูลย์วงษ์. (2564). มุมมองของพนักงานในอุตสาหกรรมอิเล็กทรอนิกส์ เขตเศรษฐกิจพิเศษ ภาคตะวันออก ด้านความพร้อมของบริษัทในการเข้าสู่ยุคอุตสาหกรรม 4.0. วารสารบริหารศาสตร์ มหาวิทยาลัยอุบลราชธานี, 10(1), 1-22.

ฝ่ายบัญชี ธุรกิจผลิตหน้าต่างอลูมิเนียม. (2565). ข้อมูลการผลิตและรายงานงบกำไรขาดทุน. ขอนแก่น:บริษัท ทรัพย์ทวีอิเล็คทริค.

พุฒิชาด ลันคำ. (2564, 25 มิถุนายน). แนวโน้มธุรกิจ/อุตสาหกรรม ปี 2564-2566: ธุรกิจก่อสร้าง. https://www.krungsri.com/th/research/industry/industry-outlook/Construction-Construction-Materials/Construction-Materials/IO/io-construction-materials-21

สุวรรณา พลภักดี. (2564). การลดความสูญเปล่าในกระบวนการผลิตน้ำดื่มบรรจุขวด. Ladkrabang Engineering Journal, 38(3), 77-90.

Agus, A., & Hajinoor, M. S. (2012). Lean production supply chain management as driver towards enhancing product quality and business performance: Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), 92-121.

Arunagiri, P., & Gnanavelbabu, A. (2014). Identification of major lean production waste in automobile industries using weighted average method. Procedia Engineering, 97, 2167-2175.

Brettel, M., Friederichsen, N., Keller, M., & Rosenberg, M. (2014). How virtualization, decentralization and network building change the manufacturing landscape: An Industry 4.0 Perspective. International Journal of Information and Communication Engineering, 8(1), 37-44.

Buer, S. V., Strandhagen, J. O., & Chan, F. T. (2018). The link between Industry 4.0 and lean manufacturing: mapping current research and establishing a research agenda. International Journal of Production Research, 56(8), 2924-2940.

Chiarini, A., & Kumar, M. (2021). Lean Six Sigma and Industry 4.0 integration for Operational Excellence: Evidence from Italian manufacturing companies. Production Planning & Control, 32(13), 1084-1101.

Chiarini, A., Baccarani, C., & Mascherpa, V. (2018). Lean production, Toyota Production System and Kaizen philosophy: A conceptual analysis from the perspective of Zen Buddhism. The TQM Journal, 30(4), 425-438.

Cronbach, L. J. (2004). My current thoughts on coefficient alpha and successor procedures. Educational and Psychological Measurement, 64(3), 391–418.

Dombrowski, U., Richter, T., & Krenkel, P. (2017). Interdependencies of Industrie 4.0 & lean production systems: A use cases analysis. Procedia Manufacturing, 11, 1061-1068.

Drath, R., & Horch, A. (2014). Industrie 4.0: Hit or hype? [industry forum]. IEEE Industrial Electronics Magazine, 8(2), 56-58.

Fatorachian, H., & Kazemi, H. (2018). A critical investigation of Industry 4.0 in manufacturing: theoretical operationalisation framework. Production Planning & Control, 29(8), 633-644.

Fettermann, D. C., Cavalcante, C. G. S., Almeida, T. D. D., & Tortorella, G. L. (2018). How does Industry 4.0 contribute to operations management?. Journal of Industrial and Production Engineering, 35(4), 255-268.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

Frank, A. G., Mendes, G. H. S., Ayala, N. F., & Ghezzi, A. (2019). Servitization and Industry 4.0 Convergence in the Digital Transformation of Product Firms: A Business Model Innovation Perspective. Technological Forecasting and Social Change, 141, 341-351.

Gilchrist, A. (2016). Industry 4.0: The industrial internet of things. Springer: Heidelberg.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2006). Multivariate data analysis (6th ed.). Uppersaddle River, New Jersey: Pearson Education International, Inc.

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: A Multidisciplinary Journal, 6(1), 1-55.

Jeschke, S., Brecher, C., Meisen, T., Özdemir, D., & Eschert, T. (2017). Industrial internet of things and cyber manufacturing systems, in Jeschke, S., Brecher, C., Song, H. and Rawat, D. B. (Eds), Industrial Internet of Things. Springer: Heidelberg (pp. 3-19).

Khanchanapong, T., Prajogo, D., Sohal, A. S., Cooper, B. K., Yeung, A. C., & Cheng, T. C. E. (2014). The unique and complementary effects of manufacturing technologies and lean practices on manufacturing operational performance. International Journal of Production Economics, 153, 191-203.

Kline, R. B. (2015). Principles and practice of structural equation modeling (4thed.). New York: Guilford Press.

Kolberg, D., Knobloch, J., & Zühlke, D. (2017). Towards a lean automation interface for workstations. International Journal of Production Research, 55(10), 2845-2856.

Lee, J., Bagheri, B., & Kao, H. A. (2015). A cyber-physical systems architecture for industry 4.0-based manufacturing systems. Manufacturing Letters, 3, 18-23.

Liao, Y., Deschamps, F., Loures, E. D. F. R., & Ramos, L. F. P. (2017). Past, present and future of Industry 4.0-a systematic literature review and research agenda proposal. International Journal of Production Research, 55(12), 3609-3629.

Lu, Y. (2017). Industry 4.0: A survey on technologies, applications and open research issues. Journal of Industrial Information Integration, 6, 1-10. https://doi.org/10.1016/j.jii.2017.04.005

Meredith, J. R., & Shafer, S. M. (2013). Operation management. Singapore: John Wiley & Sons.

Mourtzis, D. (2022). Introduction to cloud technology and Industry 4.0. In Design and Operation of Production Networks for Mass Personalization in the Era of Cloud Technology (pp. 1-12). Elsevier: Amsterdam, Netherlands.

Mrugalska, B., & Wyrwicka, M. K. (2017). Towards lean production in industry 4.0. Procedia Engineering, 182, 466-473.

Müller, J. M., Buliga, O., & Voigt, K. I. (2018). Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, 132, 2-17.

Riezebos, J., Klingenberg, W., & Hicks, C. (2009). Lean production and information technology: Connection or contradiction?. Computers in Industry, 60(4), 237-247.

Rossini, M., Costa, F., Tortorella, G. L., & Portioli-Staudacher, A. (2019). The interrelation between Industry 4.0 and lean production: an empirical study on European manufacturers. The International Journal of Advanced Manufacturing Technology, 102(9), 3963-3976.

Sanders, A., Elangeswaran, C., & Wulfsberg, J. P. (2016). Industry 4.0 implies lean manufacturing: Research activities in industry 4.0 function as enablers for lean manufacturing. Journal of Industrial Engineering and Management, 9(3), 811-833.

Schumacker, R. E., & Lomax, R. G. (2004). A beginner's guide to structural equation modeling. New York: Psychology Press.

Schütze, A., Helwig, N., & Schneider, T. (2018). Sensors 4.0–smart sensors and measurement technology enable Industry 4.0. Journal of Sensors and Sensor systems, 7(1), 359-371.

Shahin, M., Chen, F. F., Bouzary, H., & Krishnaiyer, K. (2020). Integration of Lean practices and Industry 4.0 technologies: smart manufacturing for next-generation enterprises. The International Journal of Advanced Manufacturing Technology, 107(5), 2927-2936.

Siguaw, J. A., & Diamantopoulos, A. (2000). Introducing Lisrel: A guide for the uninitiated. Introducing LISREL, 1-192.

Tabachnick, B. G., & Fidell, L. S. (2007). Experimental designs using ANOVA (pp. 724). Belmont, CA: Duxbury Press.

Taherdoost, H. (2019). What is the best response scale for survey and questionnaire design; review of different lengths of rating scale/attitude scale/Likert scale. International Journal of Academic Research in Management, 8(1), 1-10.

Taj, S., & Morosan, C. (2011). The impact of lean operations on the Chinese manufacturing performance. Journal of Manufacturing Technology Management, 22(2), 223-240.

Thoben, K. D., Wiesner, S., & Wuest, T. (2017). “Industrie 4.0” and smart manufacturing-a review of research issues and application examples. International Journal of Automation Technology, 11(1), 4-16.

Tortorella, G. L., Giglio, R., & Van Dun, D. H. (2019). Industry 4.0 adoption as a moderator of the impact of lean production practices on operational performance improvement. International Journal of Operations & Production Management, 39(6/7/8), 860-866.

Tortorella, G. L., Miorando, R., Caiado, R., Nascimento, D. & Portioli Staudacher, A. (2018). “The mediating effect of employees’ involvement on the relationship between Industry 4.0 and operational performance improvement”, Total Quality Management & Business Excellence. https://doi.org/10.1080/14783363.2018.1532789

Wan, J., Cai, H., & Zhou, K. (2015, January). Industrie 4.0: enabling technologies. In Proceedings of 2015 international conference on intelligent computing and internet of things (pp.135-140). https://doi.org/10.1109/ICAIOT.2015.7111555

Wang, S., Wan, J., Li, D., & Zhang, C. (2016). Implementing smart factory of industrie 4.0: an outlook. International Journal of Distributed Sensor Networks, 12(1), 1-10.

Xu, L. D., Xu, E. L., & Li, L. (2018). Industry 4.0: state of the art and future trends. International Journal of Production Research, 56(8), 2941-2962.

Zuehlke, D. (2010). SmartFactory—Towards a factory-of-things. Annual Reviews in Control, 34(1), 129-138.