Empirical analysis on factors affecting smart factory establishment in south Korean Ppuri companies

Abstract

In the Fourth Industrial Revolution, the manufacturing industry is expected to achieve the “smart factory.” The status of such smart factories has been rarely analyzed empirically; hence, this study identified factors affecting its establishment in Ppuri companies, that is, base manufacturing industries. The results show that the volition of a CEO and the size of a company are the most important factors for a smart factory, which is an innovative and initiative investment. This study divided manufacturing business activities into five classes– product process design, operation management, quality control, facility management, and distribution, procurement and logistics–and analyzed each smart factory level factors. Six major industry types (i.e. casting, molding, plastic processing, welding, surface treatment, and heat treatment) were identified that comprised the Ppuri industry with different smart factory establishment levels depending on individual industry characteristics. An analysis of the factors of smart factory establishment showed that a company with a higher portion of production manpower has a lower level of smart factory establishment level. The results may imply that the production site has a strong negative opinion on smart factory establishment. © Rushing Water Publishers Ltd. 2019.