INTEGRATING SIMULATION-BASED OPTIMIZATION, LEAN, AND THE CONCEPTS OF INDUSTRY 4.0

Nowadays, due to the need of innovation and adaptation for the mass production of customized goods, many industries are struggling to compete with the manufacturing sector emerging in different countries around the world. The understanding and implementation of different improvement techniques is necessary in order to take part in the so-called fourth industrial revolution, Industry 4.0. This paper investigates how two well-known improvement approaches, namely lean and simulation-based optimization, can he combined with the concepts of Industry 4.0 to improve efficiency and avoid moving production to other countries. Going through an industrial case study, the paper discusses how such a combination could be carried out and how the different strengths of the three approaches can be utilized together. The case study focuses on how the efficiency of a production site can be increased and how Industry 4.0 can support the improvement of the internal logistics on the shop floor.