The readiness of Malaysia manufacturing companies in implementing Industry 4.0

Tan, Yon Shern (2018) The readiness of Malaysia manufacturing companies in implementing Industry 4.0. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

Manufacturing industries play an important role in the development of Malaysia economy. The challenges of manufacturing industries from environment, social, technology and economy are initiated the integration of technology into the production to improve the efficiency of operation. The transformation of manufacturing industries into Industry 4.0 used to improve the competitive advantage of manufacturing players in Malaysia. The readiness of manufacturing industries in Industry 4.0 can reflect the connection of the company structure with the dimensions of Industry 4.0. It helps to determine the capability of companies from the organizational structure to implement Industry 4.0. Ultimately, it effectively indicates the development of companies in the direction of Industry 4.0. The companies are consisted of GLCs, National, SMEs and Multinational which covers all the manufacturing companies in Malaysia. From the model, it reflects the challenges of implementing Industry 4.0 for companies which can be used as reference to counter the weakness parts. A solid questionnaire is constructed to collect the feedbacks from relevant companies. Through the research, it is found that Malaysia manufacturing companies are incompatible in some dimensions. While companies have been actively engaged with IoT to upgrade the production and provide customer-oriented service. At the same time, organizational structure of companies gradually fast adapting to the new development of technologies. The high investment cost has lowering the willingness of companies to invest in Industry 4.0 which resulted most of the companies are no progress in the implementation of Industry 4.0. The companies also showed low implementation of cloud service and standard security to protect the database of companies from stealing. It is mainly caused by high cost of cloud computing service and low awareness to the adoption of big data analytics. The manufacturing companies shows positive motivation toward the development of Industry 4.0 from beginner level.

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