Evaluating Industry 4.0 Readiness and Investment Feasibility in an SME Industrial Factory

This study evaluated the Industry 4.0 readiness and investment feasibility of a small to mediumsized enterprise (SME) industrial factory. Using a comprehensive matrix, the assessment identified the factory’s current potential and resources, highlighting areas for improvement. Financial analysis confirmed the investment’s viability, with a positive net present value (NPV), an internal rate of return (IRR) above the discount rate, and payback periods within the system’s lifespan. The benefits, calculated at 5.41 times the cost, indicate significant economic value. The findings suggest that the SME is wellpositioned to enhance its Industry 4.0 readiness through smart automation investments, boosting competitiveness and ensuring long-term viability. The study concludes that these investments will lead to substantial productivity and operational efficiency gains.