An Assessment Model for Organizational Adoption of Industry 4.0Based on Multi-criteria Decision Techniques

Demircan Keskin F. , Kabasakal İ. , Kaymaz Y. , Soyuer H.

International Symposium for Production Research 2018 (ISPR2018), Vienna, Austria, 28 - 31 August 2018, pp.85-100

  • Publication Type: Conference Paper / Full Text
  • Doi Number: 10.1007/978-3-319-92267-6
  • City: Vienna
  • Country: Austria
  • Page Numbers: pp.85-100


Through the last decade, Industry 4.0 has been a transformative

wave of change that affects organizations in several aspects. One of the most

crucial elements in this context is the organizational adoption for upcoming

changes. In particular, recent literature involves several maturity models where

various challenges were discussed in several dimensions/pillars. Such models

provide assessments that identify critical aspects that require more intensive

efforts for development. However, a more holistic approach that signifies the

overall organizational readiness has been scarce in previous research. This study

presents an analytical model that provides an overall estimation of organizational

readiness to Industry 4.0. This model is a three-stage model. The first

stage involves the selection of relevant criteria by high/mid-level decision

makers in organizations to be assessed from the criteria pool based on the KPIs

discussed in the literature. In the second stage, the model uses decision makers’

pairwise comparisons for relevant criteria and determines the importance

weights of these criteria using the AHP (Analytic Hierarchy Process) method. In

the last stage, decision-makers evaluate the level of organizations with the group

decision under relevant criteria. The TOPSIS (Technique for Order Preference

by Similarity to Ideal Solution) method with predetermined ideal and negative

ideal solutions is applied using these evaluations to reveal the readiness level of

organizations to Industry 4.0. The model is applied to a company operating in

the apparel industry in Turkey, and organizational readiness level of the company

to Industry 4.0 is evaluated.