Evaluation of the untapped value creation potential of Baden-Württemberg and German industry in times of digitalization of value creation (Industry 4.0)

Objective

The manufacturing industry in Baden-Württemberg is an important factor in the state's competitiveness and innovative strength. Securing the future of Baden-Württemberg's industry is therefore central. In order to remain successful and competitive in the future, technologies and systems of the so-called "Industry 4.0" that follow lean principles play an essential role nowadays. This study is intended to measure both the intensity of use of lean principles on the input side and the value creation and productivity potential on the output side, as this has been rather poorly investigated to date. It is intended to provide a reliable, up-to-date estimate of the value creation potential that can still be tapped through the use of lean principles - i.e., that has remained untapped to date - in Baden-Württemberg and German industry.

Central results and main findings

The combination of lean principles and Industry 4.0 makes sense for realizing value creation potential. Here, Lean represents the leading concept in most use cases, which is supported, extended and strengthened by the use of digital technologies.
It can be seen that Baden-Württemberg plays a leading role in the implementation of the concepts compared to the other regions and federal states. For example, the state ranks first in the use of lean principles in production. In the application of Industrie 4.0-related technologies, Baden-Württemberg finds itself in the top three ranks.
The use of lean principles has a significant positive impact on the labor productivity of German industrial companies. In addition, the quality of production can be improved through the use of lean principles. The use of Industrie 4.0 technologies also has a positive, but limited impact on labor productivity compared to the potential of lean principles.
. The findings of the study clearly show that significant value creation potential lies in the consistent use of lean principles and Industrie 4.0 technologies. In particular, the consistent use of lean principles in the production environment can generate value creation potential of around €95 billion.

Project duration

• July 2019 to July 2020

Project consortium

• Fraunhofer Institute for Systems and Innovation Research - ISI (subcontracted)
• With the support of the Institute for Production Conservation e.V. - Infpro

Funding by

• Ministry of Economics, Labor and Housing BW

Employees

• Prof. Dr. Steffen Kinkel
• Sebastian Beiner
• Arndt Schäfer