Industry 4.0 readiness assessment for micro small and medium-sized enterprises (MSMEs)

Micro Small and Medium-sized Enterprises (MSMEs) are vital to the economy, contributing significantly to Gross Domestic Product (GDP) and employment. MSMEs need to adopt industry 4.0 to improve operational efficiency, productivity, and market competitiveness. However, budget and time restrictions, low awareness, lack of relevant expert human resources, and fear of picking the wrong solution results in slower adoption of industry 4.0 in MSMEs. MSMEs need a comprehensive assessment process and a defined roadmap with step-by-step strategies to transition to industry 4.0. This study presents a novel industry 4.0 assessment approach that prioritises MSMEs' goals and aims to improve execution of suggested roadmap. The validation conducted for an MSME in India shows that the proposed assessment methodology provides a practical and detailed assessment for identifying requirements and addressing challenges in MSMEs. The initial implementation of the technology roadmap generated through the proposed assessment approach has resulted into significant benefits to the company in terms of increase in industry 4.0 level and customer satisfaction.