The Role of Lean Production Practices and Industry 4.0 Implementation in Indonesian SMEs

Abstract

This study to examined the practice of industry 4.0 and lean production implementation in Indonesia SMEs, therefore the result can be used to identify the aspect of industry 4.0 which is affecting lean production, identify their roles in the business performance and provide direction to the business practices in implementing industry 4.0 for Indonesia SMEs.

The study utilized the Statistical Package Pocket Social Sciences (SPSS) version 22.0 software. The respondents are owner, director, manager and, acting manager from 25 SMEs and, the statements of questioner the role of lean production practices and, industry 4.0 implementation in Indonesia SMEs, the questions of interview of lean production practices, however, it used only four from nine indicators of industry 4.0.

The growth of SMEs in Indonesia increased post of 1997-1998 monetary crisis also during the covid pandemic, the SMEs continues to increase of prior studies analyzed about the importance of lean manufacturing for SMEs and the challenge of Industry 4.0 within SMEs in Indonesia, however, there is no study analyze about lean production practice and industry 4.0 implementation in Indonesia SMEs.

The results of this study revealed that within Indonesia SMEs there were positive and simultaneous influences on lean production practices and industry 4.0 implementation. Influence in industry 4.0 implementation exception product design, the majority of respondents are SMEs who have never conducted research and development for their production.