The Challenges of Industry 4.0 Transformation

Various companies perceive that the transformation to Industry 4.0 will lead to an increased complexity in technology implementation and a big investment without strategic guidance offered. Against this background, the research aims to define worldview from stakeholder in manufacturing and supply chain as the initial step to formulate the guidance for Industry 4.0 transformation by using operational excellence principle. The combination of Soft System Methodology and INDI 4.0 readiness model are developed for tackling complex, adaptive challenges in Industry 4.0 transformation using the lighthouse companies in Indonesia. A rich picture of INDI 4.0 and operational excellence, as the original contribution is identified, by using four main principles of Lean Six Sigma as the most important factors for the transformation, including waste elimination, defect elimination, autonomous and total productive maintenance.