9th IFAC Conference on Manufacturing Modelling, Management and

9th
9th IFAC
IFAC Conference
Control Conference on
on Manufacturing
Manufacturing Modelling,
Modelling, Management
Management and
and
9th IFAC
Control
9th IFAC
Control Conference
Conference on
on Manufacturing
Manufacturing Modelling,
Modelling, Management and
Management and
Berlin, Germany, August 28-30, 2019 Available online at www.sciencedirect.com
Control
Berlin,
9th IFAC
Control
Berlin, Germany, August
Conference
Germany, 28-30,
28-30, 2019
on Manufacturing
August 2019 Modelling, Management and
Berlin,
Berlin, Germany,
Control Germany, August
August 28-30,
28-30, 2019
2019
Berlin, Germany, August 28-30, 2019 ScienceDirect
IFAC PapersOnLine 52-13 (2019) 1236–1241
Contributions
Contributions of
of Industry
Industry 4.0
4.0 to
to quality
quality management
management –– A SCOR perspective
Contributions of Industry 4.0 to quality management –– A
A SCOR
SCOR perspective
perspective
Contributions of Industry 4.0 to
Contributions of Industry 4.0 toJulian quality
quality management
management – A
A SCOR
SCOR perspective
perspective
Contributions of Industry 4.0 toJulian qualityM. Müller*
M. management
Müller* – A SCOR perspective
Julian M. Müller* 
Julian M.
Julian M. Müller*
Müller*
*Salzburg University Julian M. of Applied
Müller*Sciences, 5412
*Salzburg
*Salzburg University
University of Applied Sciences, 5412 5412
ofjulian.mueller@fh-salzburg.ac.at)
Applied Sciences,
Puch/Salzburg, *Salzburg Austria, (e-mail:
University  ofjulian.mueller@fh-salzburg.ac.at)
Applied Sciences,
Sciences, 5412 5412
Puch/Salzburg, *Salzburg Austria, (e-mail:
University of Applied
Puch/Salzburg, Austria, (e-mail: julian.mueller@fh-salzburg.ac.at)
Puch/Salzburg,
Puch/Salzburg, *Salzburg Austria,
Austria, (e-mail:
(e-mail:ofjulian.mueller@fh-salzburg.ac.at)
University Applied Sciences, 5412
julian.mueller@fh-salzburg.ac.at)
Puch/Salzburg, Austria, (e-mail: julian.mueller@fh-salzburg.ac.at)
Abstract: Industry 4.0 is a concept for future industrial value creation, aiming to generate economic,
Abstract:
Abstract: Industry
Industry 4.0 is
is aa concept
4.0benefits, concept for future industrial value creation, aiming
aiming to generate economic,
ecological
Abstract: and social
Industry 4.0 is relatingfor
aa concept for to future
the Triple
future
industrial
industrial BottomvalueLine creation,
value of sustainability.
creation, aiming
to
This
to
generate
shall beeconomic,
generate achieved
economic,
ecological
Abstract:
ecological and
Industry social
and social 4.0benefits,
is
benefits, relating
concept
relating for to the
future Triple
to the Triple industrial Bottom
Bottom Line
value
Line of sustainability.
creation, aiming
of sustainability. This
to shall
generate
Thisand shall be achieved
economic,
through
ecological
Abstract: horizontal
and
Industry socialand
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benefits,
is a interconnection
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Triple the
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papers
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Keywords: Industry 4.0, Industrial Internet of Things, Lean Management, Quality Management,
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Copyright © 2019 IFAC 1253
 2019 IFAC MIM
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In response, the research question addressed by this paper is
the following:
What is the current state of application of Industry 4.0
regarding quality management, relating to different domains
of the supply chain?
In order to better understand the implications of Industry 4.0,
the paper takes a SCOR model perspective and devotes itself
to the implications Industry 4.0 has on quality management.
As the SCOR model represents a well-established model to
describe activities in operations management for research and
practice alike, the results can be compared and extended
accordingly. Especially quality management can be seen as
one of the pillars of improving productivity and therefore
contributing to lean principles.
2. THEORETICAL BACKGROUND
Lean management is often seen as the last trend before the
emergence of Industry 4.0, and its interconnection with
Industry 4.0 remains scarcely regarded. Whereas digitization
of processes and technologies for horizontal and vertical
interconnection of processes are vital for the emergence of
Industry 4.0, they are somehow opposing the concept of lean
management. For instance, investments in IT infrastructure
has not only a financial aspect, but also increases the
complexity and thereupon the failure probability of
manufacturing systems. Therefore, the gains made in the
understanding of lean management in the regard of Industry
4.0 are not easy to predict. Especially, short-term investments
and challenges can lead to long-term gains, whereas gains in
the overall supply chain might be gained, but not at the
individual manufacturing plant (Buer et al., 2018; Kolberg
and Zühlke, 2015; Sanders et al., 2016; Sony, 2018;
Tortorella and Fettermann, 2018). Merging research on
Industry 4.0 and lean management is hereby still seen to be in
its initial stages, calling for research from several research
articles (Leyh et al., 2017a; Leyh et al., 2017b; Santana et al.,
2017).
Comparably to lean management, research relating to
Industry 4.0 in respect to quality management is still in its
infancy. Several researchers point out the necessity for
merging the research disciplines (Foidl & Felderer, 2015;
(Gunasekaran et al., 2019; Jayaram, 2019). In response, this
paper is among the first to empirically show applications of
Industry 4.0 technologies in quality management.
So far, Industry 4.0-related research has mainly focused on
technological functionalities and potentials rather than those
actually experienced in practice, requiring to combine
economic and technological perspectives (Kiel et al., 2017).
However, contributing to a more efficient production and
industrial value creation in general is one of the central
claims in the concept of Industry 4.0, requiring to further
elaborate on merging the research disciplines of Industry 4.0,
quality management, and lean management (Kagermann et
al., 2013; Kiel et al., 2017; Lasi et al., 2013; Müller et al.,
2018b; Müller et al., 2019b).
1254
3. RESEARCH DESIGN
3.1 Method
Owing to the lack of prior systematic research in the field of
effects that Industry 4.0 and implications for quality
management, it was decided to generate a first holistic
overview of current areas of application of Industry 4.0-
technologies within quality management. A quantitative
research design using questionnaires was chosen to generate
a broad overview. Intending to generate a first overview of
areas of application for Industry 4.0-solutions, the data is then
presented in a descriptive manner.
3.2 Sample description
To address the research question of this paper, 204
production plants worldwide of a German industrial
enterprise were regarded. The production plants regarded can
be seen to have a leading role regarding Industry 4.0 within
the company. Further, the rather broad sample of 204
production plants is able to generate a holistic view on the
topic.
Following the support of several local representations in
countries worldwide, six countries from Europe and Asia
were selected: China, Germany, the Czech Republic, Spain,
Serbia, and India. From these 204 manufacturing plants, 89
are located in China, 59 in Germany, 36 in the Czech
Republic, eleven in Spain, seven in Serbia, and two in India.
Representatives from the respective quality management
departments were asked to assess current Industry 4.0
solutions regarding their contribution to quality management
within the SCOR model.
The data was collected in mid-2017, recipients were selected
via the central quality management department of the
German industrial enterprise regarded.
3.3 Description of the questionnaire
The questionnaire was developed together with the quality
management department of the German industrial enterprise
regarded. In order to increase the reliability and robustness of
the questionnaire, it was developed together with experts in
several rounds, attempting to combine the views of academic
and practice within the questionnaire. Several pre-tests were
conducted that led to better introductory texts for the
participants and to the refinement of several items.
The central quality department of all production plants
regarded located in Germany supported the distribution of the
questionnaires, sharing its database of contacts for quality
managers at the respective production plants. The
questionnaires were distributed via email to the recipients.
The respondents of the questionnaire were asked in which if
the following disciplines in quality management Industry 4.0-
solutions would already be used, relating to the elements of
the SCOR-Model (Plan, Source, Make, Deliver, Return).
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Plan  Customer Service

 Capacity Planning  Packaging return
 Quantity forecasts  Transport
 Order planning 4. FINDINGS
 Supplier Development (Strategic) In this chapter, the paper presents the findings in the form of
Source five figures, relating to the six categories described in section
2.3. before. The data shown relates to the frequency of usage
 Material sourcing of Industry 4.0-solutions in the respective dimensions of the
SCOR model.
 Material supply
In the following, Figure 1 shows the usage of Industry 4.0-
 Material data connection solutions in the “Plan” dimension of the SCOR model.
 Missing parts management
 Expediting
 Incoming goods inspection
 Supplier Development
Make
Fig. 1. Usage of Industry 4.0-solutions in the “Plan”
 Production planning dimension of the SCOR model
 Production fine-tuning Figure 1 illustrates that Industry 4.0-solutions are foremost
used in capacity and order planning or quantity forecast,
 Employee qualification relating to the “Plan” dimension of the SCOR model. More
 Machinery and processing capabilities strategic tasks, represented by “supplier development” in the
“Plan dimension of the SCOR model, are comparably less
 Working plans regarded.
 Production tickets Subsequently, Figure 2 shows the usage of Industry 4.0-
solutions in “Source” dimension of the SCOR model.
 Process FMEA
 Quality assurance
 Transport
 Traceability
Deliver
 Customer order management
 Change management
 Dispatch Fig. 2. Usage of Industry 4.0-solutions in the “Source”
dimension of the SCOR model
 Customs processing
 Haulage
Figure 2 shows that operative tasks in the “Source”
 Transport
dimension which directly related to production, such as
 Customer documentation material data connection supply or sourcing, are primarily
addressed by existing Industry 4.0-solutions. Tasks
 Packaging associated to production, such as expediting and supplier
development are comparably less addressed. This finding
Return
within the “Source” dimension is comparable to what was
 Traceability found for the “Plan” dimension, i.e., that operative tasks are
addressed more than strategic tasks by existing Industry 4.0-
 Complaint Management solutions.

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In the following, Figure 3 illustrates the usage of Industry
4.0-solutions in the “Make” dimension of the SCOR model.
Fig. 3. Usage of Industry 4.0-solutions in the “Make”
dimension of the SCOR model
As illustrated by Figure 3, in the “Make” dimension of the
SCOR model, tasks addressed by existing Industry 4.0-
solutions are much more evenly distributed among
production-related functions within the SCOR model or
associated tasks. A clear distinction, as for example found for
the “Plan” and “Source” dimensions, cannot be found for the
“Make” dimension.
Further, Figure 4 shows the usage of Industry 4.0-solutions in
the “Deliver” dimension of the SCOR model.
Fig. 4. Usage of Industry 4.0-solutions in the “Deliver”
dimension of the SCOR model
Figure 4 subsumes that in the “Deliver” dimension within the
SCOR model, existing Industry 4.0-solutions are
predominantly used for customer order management and
change management. In comparison, logistics functions, such
as transport or dispatch, are comparably less addressed by
existing Industry 4.0-solutions.
Last, Figure 5 shows the usage of Industry 4.0-solutions in
the “Return” dimension of the SCOR model.
1256
Fig. 5. Usage of Industry 4.0-solutions in the “Return”
dimension of the SCOR model
By looking at Figure 5, it becomes obvious that traceability is
the predominant task within the “Return” dimension of the
SCOR model addressed by existing Industry 4.0-solutions.
Complaint management and customer service, which can
both be regarded as closely related, are also named more
often than packaging return and transport, i.e., logistics-
related tasks.
In sum, it can be concluded that Industry 4.0-related solutions
within this sample are foremost found within production-
related tasks or operative functions that lead to process
improvements. More strategically oriented objectives of
Industry 4.0-solutions are less found within the sample.
Further, applications that unfold across the supply chain or
logistics applications of Industry 4.0 are comparably less
used within this sample.
5. DISCUSSION
Overall, the paper shows that in the “Plan” dimension of the
SCOR model, planning and scheduling tasks are named
predominantly to be supported by existing Industry 4.0-
solutions. In the “Source” dimension of the SCOR model,
tasks related to production itself are supported by existing
Industry 4.0-solutions.
Further, in the “Make” dimension within the “SCOR” model,
tasks cannot be separated clearly regarding their existing
support by Industry 4.0-solutions, whereas in the “Deliver”
dimension, especially logistics related function are
predominantly named. In the last dimension of the SCOR
model, the “Return” dimension, traceability and complaint
management are named foremost by the respondents as
currently supported tasks by existing Industry 4.0. solutions.
Thereby, the paper shows that different functions are
predominantly supported in the five dimensions within the
SCOR model by existing Industry 4.0-solutions, relating to
more production-oriented, planning-oriented, or logistics-
oriented tasks. Only in the “Make” dimension are tasks quite
evenly distributed among several functions.
This also relates to the currently dominating perspective of
Industry 4.0. solutions on production itself, whereas tasks
associated Supply Chain Management, extending the
boundaries of the respective factory, are considerably less
regarded (Müller et al., 2018b). Comparably, many Industry
4.0-based solutions are rather aiming for process efficiency,
often relating to production itself, rather than to more
2019 IFAC MIM
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strategically oriented tasks (Müller et al., 2017). However,
this current application of Industry 4.0-based solutions
neglects several strategic potentials of the concept, that
require an application across the supply chain, and also a
usage in strategic tasks (Kagermann et al., 2013; Kiel et al.,
2017; Müller et al., 2018a).
6. CONCLUSION
By investigating the five dimensions within the SCOR model
regarding their current support of existing Industry 4.0-
solutions, the paper also offers perspectives on where to
further develop quality management into lean management
approaches. This relates to, for instance, traceability, or
scheduling and planning-related tasks, that can be
significantly reduced by Industry 4.0 and thereby positively
contribute to lean management.
On the other hand, lean approaches in terms of logistics
processes and packaging, i.e., reducing waste processes, have
been significantly less regarded. Here, the paper shows
possible paths for future research in order to investigate these
potentials for lean management.
For managerial practice, the paper is able to show that
companies still neglect strategic potentials of Industry 4.0-
solutions. Further, potentials that require an application of
supply chain management and logistics tasks, should be
approached more in the future in order to make several
potentials of the concept Industry 4.0 accessible. In essence,
horizontal and vertical interconnection is at the heart of
Industry 4.0, a feature that is often referred to, but not
realized in many cases.
Therefore, companies are recommended to extend current in-
house, production-oriented and efficiency-improving
applications of Industry 4.0 for more strategically-oriented,
supply chain-spanning potentials. Although the first group of
potentials is often more easy to access, as applications across
the supply chain or those of strategic nature require more
changes in organizational structure, thinking, and supplier
collaboration (Birkel et al., 2019; Kiel et al., 2017; Müller et
al., 2017). However, only a full-scale application of Industry
4.0, i.e., also across the supply chain and tapping strategic
potentials of the concept, is necessary and recommended
(Kagermann et al., 2013; Müller et al., 2018a).
From a theoretical perspective, this distinction of Industry
4.0-based applications so far also gives opportunities for
future research. For instance, it could be further uncovered
why several Industry 4.0-based solutions are used, or not, and
how those can be unfolded across the supply chain.
In sum, paper provides a first insight regarding potential
contributions of Industry 4.0-solutions in quality
management. Without going in to further details of the
respective technologies used or the exact applications for the
specific tasks, the paper generates a general overview in this
regard. Still, future research should attempt to investigate
which exact technologies are used in what context, also
including the exact contributions and benefits of these
applications, based on the findings described above.
1257
By using a broad sample of 204 manufacturing plants
worldwide, the generalizability of the findings can be ensured
to a certain extent. However, as the 204 manufacturing plants
only relate to a single German industrial enterprise, results
might be limited in this regard. Therefore, future research
should attempt to expand the findings in this regard, for
instance, by investigate multiple organizations in different
industry sectors.
Additionally, future research could better explore the
maturity stages of Industry 4.0-technologies used. At the
current stage, the paper is only able to show whether or
whether not Industry 4.0-technologes are used accordingly,
but not their extent and maturity stage. Although all
respondents were introduced which technological solutions
should be considered and which ones not, and their general
knowledge of Industry 4.0 could be ensured, responders
might relate to different technological levels within Industry
4.0. However, literature still lacks a clear framework for this
purpose, which is a further recommendation for future
studies.
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