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Digital Waste – misjudged element of value stream in lean manufacturing
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Management, Industrial Design and Mechanical Engineering, Industrial Management. University of Gävle, Center for Logistics and Innovative Production.
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The increasing prevalence of digital technologies in manufacturing is aimed at enhancing and streamlining traditional lean processes. However, the rapid automation of manufacturing brings about challenges due to a limited understanding of production waste mechanisms by practitioners. There is growing concern about the potential emergence of digital waste as a result of the influence of digital technologies on lean manufacturing. This thesis aims to examine the role of digital waste within the overall waste in digitalized lean manufacturing, as well as the impact of technologies on lean waste and practices.

The thesis is driven by three research questions and comprises five papers that stem from five individual studies. The initial study explores the potential classification of uncollected and unprocessed data as a novel manifestation of Muda, or digital waste. The subsequent study seeks to assess the capability of implementing ERP at a supply chain level to amplify latent lean efficiencies within entities. Lastly, the third study delves into the perceived impacts of soft management practices, employee behaviors, the integration of digital technologies in manufacturing facilities, and their connection to the emergence of digital waste. The fourth study delves into the digital waste generated by companies with automated lean practices, while the fifth study explores the factors contributing to digital waste within the European manufacturing sector.

The findings uncover the existence of a novel type of waste, known as digital waste, which may originate from either the product itself or the production process. The findings reveal that the use of ERP technology has a significant impact on identifying hidden lean potential across three categories: unlocked hidden lean potential in an unconnected ERP system, unlocked hidden lean potential in a connected ERP system, and hidden lean potential in a shared ERP system. Furthermore, the study indicates that various aspects such as top management leadership, middle management involvement, employee education, corporate social responsibility focus, innovation, knowledge sharing, work-family balance, psychological capital, job satisfaction, and career commitment, which fall under soft lean management practices, are positively influenced by the digital transformation process. Conversely, soft lean management practices, such as employee training, creativity, discretionary effort, turnover intention, and proactivity, appear to be negatively impacted by digital transformation. Additionally, the final results suggest the existence of digital waste in supplier-related lean practices (specifically, automated JIT delivery) within product-oriented and service-oriented technologies, as well as in internally related lean practices (specifically, automated set-up) within process-oriented technologies. Furthermore, evidence of digital waste is observed in customer-related lean practices, particularly those involving digitally engaged customers, across product-, service-, and process-oriented technologies. Finally, the study reveals that a majority of European manufacturers collect and process data for multiple purposes.

The research presented in this thesis adds significant value to the ongoing discourse surrounding lean waste by engaging in a theoretical discussion of both physical and digital waste in the context of technological advancements. This thesis contributes to the discourse surrounding the automation of lean methodologies across product, process, and system domains, while also examining the influence of digital transformation on lean management practices. Furthermore, it investigates the role and consequences of Enterprise Resource Planning (ERP) systems in lean production. In practical terms, the thesis validates the presence of a novel type of waste that can impact the cost management of manufactured products, fosters transparency for digital collaboration, and advocates for increased investment in technologies and specialized personnel to offer analytical services in conjunction with manufacturing products.

Abstract [sv]

Den ökande förekomsten av digital teknik inom tillverkningsindustrin avser att för-bättra och effektivisera traditionella leanprocesser. Den snabba automatiseringen av tillverkningsprocesserna medför utmaningar beroende på användarnas begränsade förståelse för mekanismerna bakom produktionsslöseriet. Det finns en växande oro för en potentiell uppkomst av digitalt slöseri som resultat av digital teknik i lean tillverkning. Avhandlingen syftar till att undersöka förekomsten av digitalt slöseri i digitaliserad lean tillverkning, och teknikens inverkan på slöseri och metoder.

Avhandlingen omfattar tre forskningsfrågor och består av fem vetenskapliga artiklar, baserade på fem separata studier. Den första studien undersöker huruvida insamlade och obearbetade data kan betraktas som en ny form av slöseri kallad muda, eller digitalt spill eller slöseri. Den andra studien syftar till att utvärdera Enterprise Resource Planning System, (ERP). Det vill säga, implementeringsförmågan på försörjningskedjenivå för att kunna förbättra den dolda leanpotentialen hos olika enheter. Slutligen fördjupar den tredje studien de upplevda effekterna av mjuka ledningsmetoder, de anställdas beteende, integrationen av digital teknik i tillverkningsanläggningar och deras koppling till uppkomsten av digitalt slöseri. Den fjärde studien fördjupar sig i det digitala slöseri som genereras av företag med automatiserade lean-metoder, medan den femte studien utforskar de faktorer som bidrar till digitalt slöseri inom den europeiska tillverkningssektorn.

Resultaten avslöjar förekomsten av en ny typ av avfall, känd som digitalt avfall eller spill, som kan härröra antingen från själva produkten eller från produktionsprocessen. Resultaten visar att användningen av ERP-teknik har en betydande möjlighet att identifiera en dold lean potential i tre kategorier: olåst, dold lean potential i ett icke-uppkopplat affärssystem, olåst, dold lean potential i ett anslutet ERP-system och dold lean potential i ett delat ERP-system. Studien pekar vidare på att olika aspekter såsom ledarskapet i högsta ledningen, engagemanget från mellanchefer, medarbetarutbildning, fokus på företagens sociala ansvar, innovation, kunskapsdelning, balans mellan arbete och familj, psykologiskt kapital, arbetstillfredsställelse och karriärengagemang, som faller under mjukt lean ledarskapspraxis, påverkas positivt av den digitala transformationsprocessen. Omvänt tycks mjuk lean ledarskapspraxis, såsom utbildning av anställda, kreativitet, individuell prestation, ansträngning, personalomsättning och proaktivitet, påverkas negativt av digital transformation. Förutom detta tyder de slutliga resultaten på förekomsten av digitalt slöseri i leverantörsrelaterad lean praxis - särskilt automatiserad Just-In-Timeleverans - inom produkt- och tjänsteorienterade tekniker, såväl som i internt relaterad lean praxis, särskilt automatiserad installation inom processorienterade teknologier. Det finns också bevis på digitalt slöseri i kundrelaterad lean praxis, speciellt den som omfattar digitalt engagerade kunder, med produkt-, tjänste- och processorienterade tekniker.

Den forskning som presenteras i denna avhandling tillför viktig kunskap om leanslöseri genom sitt engagemang i en teoretisk diskussion om fysiskt och digitalt slöseri i samband med tekniska framsteg. Avhandlingen bidrar till diskursen kring automatisering av lean-metoder inom produkt-, process- och systemdomäner, samtidigt som inflytandet av digital transformation på lean managementpraxis behandlas. Dessutom undersöks rollen och konsekvenserna av ERP-system i lean produktion. Rent praktiskt validerar avhandlingen förekomsten av en ny typ av slöseri, som påverkar kostnadshanteringen för nytillverkade produkter.  Avhandlingen främjar också transparens för digitalt samarbete och ökade investeringar i teknik och specialiserad personal för att erbjuda analytiska tjänster i samband med tillverkning.

Place, publisher, year, edition, pages
Gävle: Gävle University Press , 2024. , p. 94
Series
Doctoral thesis ; 49
Keywords [en]
lean waste, Muda, digital waste, digital lean manufacturing, digital transfor-mation, lean automation
Keywords [sv]
lean slöseri, muda, digitalt slöseri, digital lean tillverkning, digital transformation, lean automation
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hig:diva-44392ISBN: 978-91-89593-38-1 (print)ISBN: 978-91-89593-39-8 (electronic)OAI: oai:DiVA.org:hig-44392DiVA, id: diva2:1865512
Public defence
2024-09-03, 12:108, University of Gävle, Gävle, 13:00 (English)
Opponent
Supervisors
Available from: 2024-08-09 Created: 2024-06-05 Last updated: 2024-08-09Bibliographically approved
List of papers
1. Digital Muda - The New Form of Waste by Industry 4.0
Open this publication in new window or tab >>Digital Muda - The New Form of Waste by Industry 4.0
2020 (English)In: Proceeding International Conference on Operations and Supply Chain Management (OSCM), ISSN 2407-2273, Vol. 13, no 3, p. 269-278Article in journal (Refereed) Published
Abstract [en]

Lean management is an approach where value is created through the reduction of waste. Eight forms of waste were identified by the Toyota Company as worth considering while managing an efficient production process: overproduction, waiting, transport, over processing, inventory, movement, defects, and unused creativity. Modern manufacturing plants are being transformed by Industry 4.0, the fourth industrial revolution, which promotes a wide variety of technological solutions to increase innovativeness and competitive advantages. Technological solutions are created on the basis of data that must be analyzed to enable manufacturers to be more strategic in the decision-making process and generate new profit channels through data analytics. A conceptual framework was developed to investigate if the inefficient usage of data has a negative impact on manufacturing performance through the decision-making process. Semi-structured interviews were conducted in two leading manufacturing companies in Sweden that are following lean principles. A new form of waste, digital waste, was defined. This paper suggests considering digital waste as a new type of muda (waste), which is its theoretical contribution. From a practical perspective, the results of the paper encourage practitioners to pay extra attention to data analytics, work on the reduction of digital waste and establish new revenue channels based on data analysis. Download full PDF  Get metrics  Rate article

Place, publisher, year, edition, pages
OCSM, 2020
Keywords
lean management, digitalization, digital waste, muda, data processing
National Category
Other Engineering and Technologies
Research subject
Intelligent Industry
Identifiers
urn:nbn:se:hig:diva-32122 (URN)10.31387/oscm0420268 (DOI)000533606900005 ()2-s2.0-85086406029 (Scopus ID)
Available from: 2020-04-08 Created: 2020-04-08 Last updated: 2024-06-05Bibliographically approved
2. Digital collaboration within the supply chain: unlocking the hidden lean potential
Open this publication in new window or tab >>Digital collaboration within the supply chain: unlocking the hidden lean potential
2021 (English)In: International Journal of Advanced Operations Management (IJAOM), ISSN 1758-938X, E-ISSN 1758-9398, Vol. 13, no 1, p. 1-20Article in journal (Refereed) Published
Abstract [en]

Collaboration in a supply chain plays an important role for manufacturing companies that are simultaneously implementing lean and running enterprise resource planning (ERP) systems. This research aims to discover whether the usage of ERP at a supply chain level can boost internal hidden lean potential. Empirical data were obtained from three manufacturing cases in Sweden. The results show that ERP technology usage has a significant impact on discovering hidden lean potential of three types: unlocked hidden lean potential in an unconnected ERP system, unlocked hidden lean potential in a connected ERP system, and unlocked hidden lean potential in a shared ERP system. The findings indicate manufacturers should devote more effort to ensuring active usage of ERP systems internally as well as externally with their customers and suppliers. The transparency and collaboration provided by an ERP system will help these companies become leaner.

Place, publisher, year, edition, pages
Inderscience, 2021
Keywords
lean manufacturing, digital technologies, supply chain, enterprise resource planning, ERP, information exchange, waste, collaboration, business strategy
National Category
Economics and Business
Identifiers
urn:nbn:se:hig:diva-35817 (URN)10.1504/IJAOM.2021.113663 (DOI)2-s2.0-85102786325 (Scopus ID)
Available from: 2021-05-19 Created: 2021-05-19 Last updated: 2024-06-05Bibliographically approved
3. The significance of employee behaviours and soft management practices to avoid digital waste during a digital transformation
Open this publication in new window or tab >>The significance of employee behaviours and soft management practices to avoid digital waste during a digital transformation
2023 (English)In: International Journal of Lean Six Sigma, ISSN 2040-4166, E-ISSN 2040-4174, Vol. 14, no 1, p. 1-32Article in journal (Refereed) Published
Abstract [en]

Purpose: The purpose of this study is to investigate the perceived effects between soft management practices, employee behaviours and the implementation of digital technologies in manufacturing plants, as well as how these relate to the emergence of digital waste.

Design/methodology/approach: This paper uses case-based research. Data was collected in two large manufacturing companies based in Norway and Sweden through semi-structured interviews with two management representatives and four shop-floor employees. The data was used to evaluate 29 variables describing lean- and total quality management (TQM)-associated employee behaviours and soft management practices, in light of digital transformation.

Findings: The results suggest that several variables were positively influenced by the digital transformation process. These were top management leadership, middle management involvement, employee education, corporate social responsibility focus, innovation, knowledge sharing, work-family balance, psychological capital, job satisfaction and career commitment. Training employees, creativity, discretionary effort, turnover intention and proactivity appear to be negatively influenced by digital transformation The findings also indicate that several soft management practices and employee behaviours were not only influenced by manufacturing digitalization but also themselves influenced the process. The potential for digital waste creation was also detected in several variables, including reward and recognition and training employees.

Practical implications: Managers, practitioners and academics may learn about the importance of certain managerial practices and employees’ behavioural needs during the digital transformation process. The findings may help in prioritizing TQM and soft lean management practices and certain employee behaviours during the digital transformation and in creating awareness of digital waste.

Originality/value: This study builds on several existing studies discussing the impact of digital transformation on soft management practices and employee behaviours. It provides insights from a lean and TQM angle and offers a means of prioritizing certain practices and behaviours during a digital transformation. This study also highlights the significance of digital waste. 

Place, publisher, year, edition, pages
Emerald, 2023
Keywords
Digital transformation; Digital waste; Digitalization; Employee behavior; Lean management; Non-utilized talent; TQM
National Category
Economics and Business
Identifiers
urn:nbn:se:hig:diva-38198 (URN)10.1108/ijlss-07-2021-0127 (DOI)000766095200001 ()2-s2.0-85125963032 (Scopus ID)
Available from: 2022-03-21 Created: 2022-03-21 Last updated: 2024-06-05Bibliographically approved
4. The Significance of Digital Waste in the Automation of Lean Practices
Open this publication in new window or tab >>The Significance of Digital Waste in the Automation of Lean Practices
2023 (English)In: Quality Management Journal, ISSN 1068-6967, Vol. 30, no 2, p. 121-134Article in journal (Refereed) Published
Abstract [en]

Lean manufacturing has experienced massive changes under the influence of Industry 4.0 as the automation of lean practices has become common among manufacturing companies in many countries and across different industries. Automating lean practices promises several opportunities for growth and competitiveness. One of the acknowledged key advantages of lean automation has been the significant reduction of waste. Meanwhile, there is also discussion of a new form of waste: digital waste. However, do companies consider digital waste a part of production waste? It is also unclear if the automation of lean practices is a trigger for digital waste with a negative impact on value creation. This paper aims to investigate companies with automated lean practices and the digital waste generated by these practices. The research is based on three case studies of manufacturing companies based in Sweden. The originality of the study identifies and highlights the significance of various forms of digital waste, which is of academic and practical relevance. The study indicates that there is digital waste in supplier-related lean practice—automated JIT delivery—specifically in product-oriented and service-oriented technologies. There is digital waste in internally related lean practice—automated set-up—specifically in process-oriented technologies. Finally, there is digital waste in customer-related lean practice—digitally involved customers—in product-, service-, and process-oriented technologies.

Place, publisher, year, edition, pages
Taylor & Francis, 2023
Keywords
automation; digital waste; digitalization; lean
National Category
Economics and Business
Identifiers
urn:nbn:se:hig:diva-41131 (URN)10.1080/10686967.2023.2171323 (DOI)001293022300004 ()2-s2.0-85148371646 (Scopus ID)
Available from: 2023-03-06 Created: 2023-03-06 Last updated: 2024-09-11Bibliographically approved
5. Waste under the impact of digital technologies: Evidence from European manufacturing survey (EMS)
Open this publication in new window or tab >>Waste under the impact of digital technologies: Evidence from European manufacturing survey (EMS)
2022 (English)In: The proceedings of the 29th international EurOMA conference, 2022Conference paper, Published paper (Refereed)
Abstract [en]

This paper is based on European Manufacturing Survey collected in 2019 for five countries -Sweden, Spain, Croatia, Austria, and Slovenia. The study reveals that majority of companieshave technologies that allow them automatically to collect data. Companies are also using thedata for different purposes, and often more than one purposes. We also found that many ofcommonly used digital technologies are also associated with automatically collected data.Although the literature suggests that ignorance of data collection may lead to defects, we findno connection to actual waste in this study.

Keywords
Lean Waste, Digital Waste, Digital Technologies
National Category
Other Mechanical Engineering Production Engineering, Human Work Science and Ergonomics Business Administration
Research subject
Intelligent Industry
Identifiers
urn:nbn:se:hig:diva-40041 (URN)
Conference
29th International EurOMA Conference, 1-6 July 2022, Berlin
Available from: 2022-09-29 Created: 2022-09-29 Last updated: 2024-06-05Bibliographically approved

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