The term Industry 4.0 refers to making manufacturing smarter by applying advanced information systems and innovative technologies, ranging from the Industrial Internet of Things (IIoT) to robotics and artificial intelligence.

As Industry 4.0 has evolved how factory systems work, creating what is known as the Fourth Industrial Revolution, continuous process improvement methodologies such as Lean Six Sigma have become increasingly useful.

The data-driven approaches used by Lean Six Sigma (or Lean and Six Sigma, separately) are bolstered by innovative Industry 4.0 technology. At the same time, process improvement can help organizations better leverage innovative technologies, particularly data collection and analysis.

“Merely applying technology to automate a process rarely works,” according to the Association for Manufacturing Excellence (AME), writing about the use of Lean in Industry 4.0. “Because Lean is the foundation for streamlining work and eliminating waste, it remains critical to successful automation, including the deployment of Industry 4.0 technologies.”

What is Industry 4.0?

Unlike past industrial revolutions, Industry 4.0 involves not just one leap forward in innovation but rather the confluence of many. They include sensors that collect and transmit data as part of the Internet of Things (IoT), Software as a Service (SaaS), the cloud, robotics and cognitive technologies such as machine learning and artificial intelligence.

AME offers examples of Industry 4.0, including machine tools that alert operators when they veer out of spec or components that transmit data to manufacturers on how consumers use them. For consumers, smart technology includes refrigerators that offer an alert when you are almost out of an important item or smart cars that parallel park.

From a historical perspective, the iterations of the industrial revolution are as follows.

  • Industry 1.0 – In the late 19th century, water- and steam-powered machines increase production capabilities
  • Industry 2.0 – Electricity emerges in the early 20th century, becoming the primary source of power and far easier to use than water and steam
  • Industry 3.0 – Creation of the transistor and integrated circuit chip led to automated machines, computers and software systems
  • Industry 4.0 – Innovations in communications technology have eliminated the barrier of distance and geography. Connectivity has led to smart systems that have changed manufacturing and business

The goal of organizations working with Industry 4.0 technology is to synchronize intelligent machines within the entire end-to-end process, including suppliers, manufacturing and delivery of goods. This also involves optimizing and integrating systems governing inventory, logistics and transport.

Industry 4.0 and Lean Six Sigma, if used to enhance each other, can lead to many benefits.

How Industry 4.0 Supports Lean Six Sigma

The distinguishing characteristic of Industry 4.0 is that it merges innovative technology that has changed how organizations operate. One of the key innovations are the sensors used in IoT. These sensors allow for data collection at all levels in the value chain. That data is then used for more sophisticated and granular analysis.

This more precise data can help reinforce the data-driven approaches of Lean Six Sigma, according to a paper published by the International Journal on Advanced Science, Engineering and Information Technology.

“Industry 4.0 enables real-time planning of production plans, along with dynamic self-optimization,” the paper states. Further, the authors point out that advanced analytics “improve the performance of Lean Six Sigma projects” with faster data collection and analysis.

That, in turn, leads to faster identification of waste and the root causes of variations that can lead to mistakes.

Lean Six Sigma in Support of Industry 4.0

Lean Six Sigma combines two process methodologies – Lean and Six Sigma. Lean focuses primarily on eliminating waste and all non-value-adding parts of a process, with value defined as what benefits the end user.

Six Sigma offers tools and techniques that can eliminate defects and errors in a process, reducing variation and allowing for more consistency in creating quality products.

Tools and techniques found in both methods can help with Industry 4.0 processes. As pointed out by AME, using advanced technology to enhance a process is still, at the end of the day, a process that can be made better with process improvement.

Arc Advisory Group suggests that value stream mapping is a useful tool in Industry 4.0. Using a value stream map involves mapping out the current process in detail, which helps to identify areas where waste and errors are occurring.

In the AME report, Industry 4.0 is called transformative but also a “logical extension of what Lean and Six Sigma have been addressing for decades; that is: manufacturers cannot afford waste or variability.” They suggest coupling Lean Six Sigma methodologies with new technology will lead to more waste and flaws being “highlighted instantly.”

Some also argue that process improvement, in which people play a key role, will keep organizations focused on customers and how their employees fit into the process as they transition to Industry 4.0.

For example, as pointed out by Arc Advisory Group, manufacturers should make employee education on Industry 4.0 part of the transition process, as well as supporting efforts by Kaizen teams to find practical applications for new technology.