International Journal of Sustainable Development and

Planning
Vol. 19, No. 3, March, 2024, pp. 1195-1201
Journal homepage: http://iieta.org/journals/ijsdp

Implementation of Lean Manufacturing Principles and Fast Structured Logic Methods in the
Organizational Culture: Addressing Challenges and Maximizing Efficiency
Svetlana Sergeeva1 , Nadezhda Belova2 , Rustem Shichiyakh3 , Anna Bobrova4* , Irina Vaslavskaya5 ,
Nadezhda Bankova6 , Ekaterina Vetrova7 , Hafis Hajiyev8
1
Department of Scientific and Practical Projects and Information, Moscow Metropolitan Governance Yury Luzhkov
University, Moscow 107045, Russia
2
Department of Economics and Planning in Refining, Commerce and Logistics, Rosneft Oil Company PJSC, Moscow 117997,
Russia
3
Department of Management, Kuban State Agrarian University, Krasnodar 350044, Russia
4
Higher School of Economics and Management, South Ural State University (National Research University), Chelyabinsk
454080, Russian Federation
5
Higher School of Economics and Law, Kazan Federal University, Kazan 420008, Russia
6
Department I-11 "Foreign Language for Aerospace Specialties", Moscow Aviation Institute, Moscow 125993, Russia
7
Department of Finance and Business Analytics, The Kosygin State University of Russia, Moscow 117997, Russia
8
Department of Finance and Audit, Azerbaijan State University of Economics (UNEC), Baku AZ1001, Azerbaijan

Corresponding Author Email: [email protected]

Copyright: ©2024 The authors. This article is published by IIETA and is licensed under the CC BY 4.0 license
(http://creativecommons.org/licenses/by/4.0/).

https://doi.org/10.18280/ijsdp.190337 ABSTRACT

Received: 20 July 2023 Currently, the concept of lean manufacturing has covered almost the entire global industry and
Revised: 15 January 2024 all its sectors. This is due to the effectiveness of this concept, since with its application, along
Accepted: 20 February 2024 with increased productivity and quality, more products are produced with the same amount of
Available online: 29 March 2024 resources and at lower costs. Today, lean manufacturing in the context of Industry 4.0 is
relevant for achieving the principles of sustainable development. The purpose of the study is
to analyze the features of lean manufacturing in the context of Industry 4.0 to achieve the
Keywords: principles of sustainable development. The paper considers the main theoretical aspects of the
lean manufacturing, Industry 4.0, introduction of lean manufacturing in industrial enterprises and examines the essence and
industrial Internet of Things, virtual characteristics of Industry 4.0. Based on an expert survey, Industry 4.0 technologies have been
reality identified for the implementation and support of lean manufacturing. The study concludes that
the introduction of Industry 4.0 technologies, such as enterprise resource planning systems,
industrial Internet of Things, automation and robotics, augmented and virtual reality, and radio
frequency identification in industrial enterprises, into lean manufacturing not only lead to a
reduction in losses but also serves as the best way to eliminate them. Flexible forecasting of
changes in the supply and demand of a product helps to plan production volumes more
accurately, which allows manufacturers to avoid further surpluses and losses.

1. INTRODUCTION Numerous manufacturing companies are interested in

reducing losses, increasing productivity, and improving
The industry of Russia, Kazakhstan, Belarus, and product quality indicators [3].
Azerbaijan currently has a significant number of issues, where New opportunities for the development of the LM
the main problem is the low level of profitability of business management concept have emerged in connection with the
entities [1]. The low level of financial and technical support of spread of digital technologies and the beginning of the fourth
enterprises often combined with an inefficient personnel industrial revolution, called Industry 4.0. If we summarize the
management system, slow down the process of updating and research findings, many manufacturing companies are focused
reproducing competitive production. As world experience on finding newer and innovative technological solutions.
shows, enterprises need to reach a new level of management Some of the ongoing social, cultural, and economic changes
and production process, introducing the latest management have proved to be so breakthrough that they have contributed
approaches that fully meet modern requirements [2]. Lean to the initiation of revolutionary changes in various industries
manufacturing (LM), a management concept aimed at [4-7].
eliminating all types of losses and achieving maximum Thus, the relevance of the paper and the formulation of the
efficiency in the use of material, labor, and other resources in problem lie in the possibility of achieving the principles of
production can become such a management technology. sustainable development based on the implementation of the

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concept of LM in the context of Industry 4.0. situations. To accelerate the implementation process and
The novelty of our work is in the description of the obtain the desired results, some researchers recommend
possibility of using modern Industry 4.0 technologies to applying the basics of constraint management theory, i.e.,
support LM. As the practice of production management based starting the implementation process not along the entire
on the principles of sustainable development shows, it is production chain but in the bottlenecks of the production
difficult for business entities to make informed decisions on system [22].
LM implementation at Russian enterprises in the absence of The application of LM basics can give significant results.
appropriate methodological tools. The advantage of LM is that the concept consists of 80%
The purpose of the paper is to analyze the possibilities of organizational features and only 20% technological features
Industry 4.0 technologies for the introduction and support of [23].
LM. While in the late 1980s, LM was used mainly to reduce costs,
In this paper, we tried to answer the following research today we are talking about a green approach to achieving the
question: What are the main technologies of Industry 4.0 that principles of sustainable development by an enterprise based
can be used to implement and support LM? on the use of technological achievements of Industry 4.0 [24].
The paper is organized as follows. The next section provides Therefore, one of the main tasks of LM at present is the
a review of the literature on the LM concept in industrial integration of individual business operations into a single,
enterprises at present, as well as the essence and characteristics fully optimized system where all components are effective,
of Industry 4.0. Further, the research method and the results of including production, marketing, distribution, and
the study are presented and discussed. The conclusions show transportation [25-27].
the potential of using Industry 4.0 technologies to support LM.
These data complement existing research on this issue. At the 2.2 The essence and characteristics of Industry 4.0
end of the paper, the limitations of the study are defined.
Currently, the fourth industrial revolution is taking place,
called Industry 4.0, which is focused on system integration and
2. THEORETICAL BASIS networking using digital technologies [28]. Thus, the
automatic exchange of information in the production process
2.1 Theoretical aspects of the implementation of LM in between people, machines, and information technology (IT)
industrial enterprises systems within an industrial enterprise or between various IT
departments operating in the enterprise is ensured [29, 30].
LM refers to a management concept that focuses primarily Due to Industry 4.0, business owners have better control
on optimizing business processes [8]. The goal of LM is to over the production process and access to all aspects of their
minimize costs and maintain high quality at a minimum cost. activities, which allows them to increase efficiency and
It is believed that the LM core is a process of eliminating optimize processes [31]. Another great advantage is the
losses that do not carry value for the buyer but consume increased flexibility of production, which is made possible by
resources. According to LM theory, the activities of any minimizing the time required to adapt machines to new
enterprise can be divided into two groups: operations and requirements. Production tools record all cases of reduced
processes that add value to the consumer and operations and efficiency and waste, which allows manufacturers to increase
processes that do not add any value to the consumer [9]. production efficiency and gain a decisive competitive
Initially, LM technologies were used in industries advantage [32].
producing discrete product categories characterized by With the beginning of the fourth industrial revolution, new
discontinuity of the production process over its entire length. technologies and concepts appeared, without which Industry
However, later this concept was adapted to continuous 4.0 could not function. The first of these concepts is the
production and found its application in trade [10], services Internet of Things (IoT) [33] This idea is a combination of
[11], healthcare [12], and the public sector [13, 14]. various objects, ranging from not only the ones directly
The introduction and development of LM technologies in connected to the Internet, such as computers, smartphones, or
production provide some advantages, which include reducing tablets, but also household appliances and electronics, to large
production losses; reducing the cost of production; increasing production lines, machine tools, and robots that are used in
productivity while reducing labor costs; improving product various industries [34] The advantages of such solutions
quality; and increasing profitability [15]. include saving time, reducing costs, and speeding up the flow
To implement the LM concept, the following tools are used: of information and increasing the efficiency of employee use,
1) delivery exactly on time (the Just in Time system) [16]; 2) which leads to increased production efficiency [35, 36].
extraction system and custom work (the Kanban system) [17]; Industry 4.0, combining the fields of technological
3) rapid equipment changeover (Single-Minute Exchange or innovation and the concepts of value chain organization, is
Die, SMED) [18]; 4) total productive maintenance system (the revolutionizing almost all sectors of the manufacturing
TPM system) [10]; 5) workplace streamlining (the 5S method) industry. The use of automation and robotics tools makes it
[19]; 6) error protection (Poka-Yoke) [20]; 7) standard possible to develop and improve modern production lines [37].
operating procedures (SOP); 8) quality improvement (the The driving force of change also includes the employees of
Kaizen system) [21], and others. companies with interdisciplinary technical knowledge and
The implementation of LM is a long process that brings communication skills and the ability to work in a team, which
changes not only to a company's production concept but also allows them to use and implement new solutions to create
to the mentality of employees. It is accompanied by employee more flexible production lines. Due to these changes,
training, the formation of an initiative group for companies have the opportunity to achieve better results,
implementation, holding meetings to find possible solutions, increase competitiveness, and acquire new customers.
and support for consultants in difficult transformation

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3. METHODS was determined, according to the scores given by the experts.

3.1 Research approach 3.4 Data analysis

Following the described approaches to the features of LM For a more objective analysis of the data obtained during
in the context of Industry 4.0, to achieve the principles of the expert survey, the degree of consistency of expert opinions
sustainable development, a qualitative and quantitative with mathematical processing of the results was measured
approach to research was chosen as the most appropriate using the Kendall concordance coefficient (W):
method for the study of complex phenomena in the context of W=12S/n2(m3-m), where S is the sum of the squares of
heterogeneity and uncertainty of initial information. deviations of all estimates of the ranks of each of the
To identify Industry 4.0 technologies that can be used to technologies of Industry 4.0 from average value; n is the
implement and support LM, a qualitative case study was number of experts; and m is the number of technologies being
considered the most appropriate research strategy. The evaluated.
resulting data are more informative and voluminous compared Further, the information obtained during the expert survey
to a simple quantitative study since they provide a higher level was processed to determine the weights with the construction
of detail, which facilitate the collection of information and of a rank transformation matrix and subsequent calculation of
feedback from the expert pool. the arithmetic mean of the individual weights for each of the
technologies. The final weight values determine the
3.2 Empirical context importance of a particular Industry 4.0 technology from the
experts' point of view.
Following the purpose of the study, we conducted a In data analysis, the triangulation method was used for the
selection of scientific sources, which was carried out using the validity and reliability of the results of the empirical study. The
Russian Scientific Citation Index (RSCI) and the international triangulation was performed through the triangulation of
Web of Science and Scopus databases, using the keywords researchers, when several researchers participated in the
"digital technologies", "lean manufacturing", and "Industry project and each of them took part in the processing of
4.0". information. After that, a discussion was held on each topic,
We also studied the experience of companies in Kazakhstan, and information agreed upon by all participants of the study
Azerbaijan, and Belarus to analyze and compare the was entered into the report. The triangulation process made it
organizational culture of modern enterprises. possible to increase the reliability of the expert survey data and
improve the quality of the information received. All the results
3.3 Data collection obtained from the study were recorded in the research report.

The data was collected between April 10 and July 10, 2023,
by analyzing the scientific literature on the research problem, 4. RESULTS
selecting an expert pool, following an expert survey by e-mail,
and processing and analyzing the survey results. Based on the results of the field study (expert survey),
Emails offering to participate in the survey were sent to 52 Industry 4.0 technologies were identified that could be used to
experts from Kazakhstan, Russia, Belarus, and Azerbaijan. implement and support LM (Table 1).
The criterion for selecting the expert pool was the availability
of publications on the research problem in peer-reviewed Table 1. Key Industry 4.0 technologies for implementing and
publications of at least three papers. The experts were supporting LM
contacted via email and given 10 calendar days to complete
the survey. 47 people agreed to take part in the survey, after No. Industry 4.0 Technologies Rank Weight
which they received emails with a question that we were Enterprise resource planning (ERP)
1 1 0.34
interested in after completing the analysis of the research systems
literature. In the emails, the experts were asked to justify the 2 Industrial IoT (IIoT) 2 0.22
Automation and robotization of
answers in any format. 3 3 0.17
industry
In order to ensure a higher response rate and mitigate 4 Augmented reality (AR) 4 0.11
potential non-response bias, we implemented a systematic 5 Virtual reality (VR) 5 0.08
reminder and follow-up process. Initially, a reminder was sent 6 Digital twins 6 0.05
to all experts who had not yet responded two days after the Radio Frequency Identification
7 7 0.03
initial deadline for the survey. Subsequently, two follow-up (RFID) technology
emails were sent, each spaced two days apart, to those who Notes: 1. Compiled based on the expert survey; the value of the concordance
still had not responded. This approach was designed to coefficient W=0.74 (p<0.01), which indicates a strong consistency of expert
opinions.
encourage maximum participation while respecting the time
and availability of the experts.
All survey participants had been warned about the purpose 5. DISCUSSION
of the survey and knew that the organizers of the study were
planning to publish its results in a generalized form. In the context of Industry 4.0, most enterprises use a wide
After receiving expert responses, we sent a second email to range of IT systems and software offered by the market. The
the experts, where we asked them to arrange different Industry implementation and use of integrated IT systems in various
4.0 technologies used to implement and support LM in a types of enterprises has gradually become a standard, without
particular order, assigning points, depending on the level of which it is difficult to imagine the functioning of a company.
their importance. After that, the rank of each of the parameters Based on the study of companies' experience, it was

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determined that several Kazakh enterprises began to integrate • there is a significant increase in productivity due to
digital technologies into their production processes. For efficient and effective planning,
example, the Aktogay branch of the AK Altynalmas JSC, a • more efficient planning is provided, which, for example,
producer of gold bars, uses artificial intelligence to remotely allows for better organization of material flow management
control the grinding process, as does GL (Azerbaijan), which and reduction of excess stocks,
uses AI to analyze seismic data at deposits. Engineers from • it becomes possible to react quickly in case of a shortage
MapData, the Minsk research and development (R&D) office of materials or raw materials (due to constant monitoring),
of MapBox, also achieved serious success: they use computer which means that they improve the order fulfillment process
vision in tasks of recognizing the traffic situation on a video and increase timeliness,
stream. The Maker LLP in the machine-building industry • effective human resource management is ensured,
achieved complete automation from design to production. The information about employees is safe, and all actions related to
Prommashkomplekt LLP implemented a high-tech automated human resources, payroll, or working hours are performed
complex to produce railway wheels. efficiently.
An integrated IT system in a broad sense can be defined as ERP II class systems are focused on external integration and
an IT system designed and organized according to a modular business partners. The main purpose of using the system is to
principle. It covers the entire enterprise, and therefore all areas maximize profits and maintain a stable and competitive
of its activity. This makes integrated IT systems universal position in the market. Simply put, the ERP II system is an
systems, i.e., with functions corresponding to most enterprises. integrated management system that combines CRM and ERP
The group of integrated IT systems that support enterprise systems, additionally using Internet communication [36].
management also includes ERP class systems that allow one The next Industry 4.0 technology that has an impact on LM
to comprehensively manage an organization by integrating all is the IIoT. Its main element is the creation of systems of
levels of company management. These systems are extremely combined sensors and actuators operating in a common
useful in planning and interpreting all the processes taking network. To be able to fully satisfy customers, many
place in the company. automation companies offer solutions specifically prepared for
The main tasks of an ERP system are to operate in the IIoT applications in the industry. Due to the IIoT, access to
following areas [35]: planning, for example, forecasting huge amounts of data can be carried out much faster and more
demand for a given product; procurement and storage, i.e., efficiently than ever before. Many innovative companies have
supply chain management in general; control, i.e., comparing started to implement the IIoT using smart connected devices
expected effects and results with those achieved by the in their factories. The IIoT creates a connection between
company; integration of the company's system with supplier devices and the enterprise. It uses sensors, advanced analytics,
systems or clients; reporting and documentation; finance; and and intelligent decision-making. Oil and gas companies were
human resource management. the first to develop an infrastructure in which sensors,
The progressive development of communications advanced analytics, data processing, and automation were
technologies means that integrated IT systems are also used to support LM [33].
developing and opening new communication opportunities. The most important IIoT capabilities affecting LM include:
Thus, ERP systems have expanded their capabilities and ERP • the growing intelligence of sensors that detect and
II class systems have been created, which, in addition to all the analyze data (and then send it further through various types of
capabilities of ERP systems, have an additional Internet communication gateways),
communication capability. • distributed processing system, installation of PLCs
The architecture of the ERP II system, which includes (programmable logic controllers) closer to machines that
modules of the traditional ERP system, has been expanded control and reduce overload and increase flexibility and
with an additional set of features. The central element of the production efficiency,
ERP II architecture is the ERP system, which is based on a set • the ability to select the optimal parameters of the
of additional systems. The customer relationship management production process due to sensor data,
(CRM) system has expanded the functions of the sales and • integration of the iIoT infrastructure with new
distribution module. The supply chain management (SCM) technologies, for example, robotics, VR, software, AI, drones,
system supports the production and supply logistics module. etc. within the framework of Industry 4.0 assumptions.
This has expanded the support of processes within the Researchers believe that future maintenance solutions will
company with information from business partners, which be able to predict equipment failures, which will reduce
makes it possible to manage the resources not only of one production downtime by up to 70%. They also estimate that
company but also of all cooperating partners in the supply companies implementing the IIoT will increase their
chain. PLM (product life management) is an extension efficiency by up to 30%, reducing maintenance costs by 30%
designed to manage the product lifecycle. The system includes [33].
product design and production, quality management, and Another Industry 4.0 technology that has an impact on LM
product market assessment. The subsystem, whose task is to is the robotization of industry. Researchers note that LM and
support strategic enterprise management, is called SEM robotization support each other and make it possible to obtain
(strategic enterprise management). Its tasks include strategic a stable, optimal production process. This is achieved by
planning, capital investments, and financial consolidation. It is eliminating unnecessary steps and stabilizing the cycle time
mainly based on the data warehouse and the information [37].
contained therein [36]. The introduction of robotics into a manufacturing company
Support for LM when using an ERP II class system in the allows [37] for increasing efficiency and quality, improving
company includes reducing operating costs by simplifying production scale, and continuous improvement of production
business processes, as well as reducing management and processes. An industrial robot, when properly implemented,
operating costs. In industrial enterprises: makes it possible to implement LM. The most important

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aspect is the implementation method, which considers in real time and optimize production processes based on this
accessibility, flexibility, and reliability when using robots on data. Currently, it is one of the standard technologies used by
workstations or production lines. large manufacturing companies, as well as companies in the
The use of industrial robots at production stations and lines automotive and aerospace industries. An example is Ford's
very often makes it possible to offer various concepts of European subsidiary, which has implemented virtual
solutions even at the design stage. Industrial robots are manufacturing technologies to create a safe and efficient work
indispensable in areas where the implementation of the environment. VR was used in combination with motion
principles of the LM concept is most justified, i.e., in the so- capture and 3D printing. This made it possible to optimize the
called bottlenecks of production, where reliability and highly workplace and reduce the number of injury-related accidents
developed preventive diagnostics are of the greatest by 70%. Ergonomic problems of employees also decreased by
importance. Robotization of production processes is 90% [38].
equivalent to LM adoption, since it allows for reducing However, currently, only large companies use virtual
production time and reproducibility of quality, increasing technologies and take advantage of their competitive
work efficiency, and improving communication and advantages. The widespread use and acceptance of VR require
information flow [32]. This is possible provided that the better devices and software at a lower price [39].
robotic cell is integrated into a holistic and harmoniously Experts called the so-called digital twins, or virtual copies
interacting system where the robot itself is an executive of systems, processes, or physical objects, another means of
element [28]. supporting LMin an industrial enterprise. All changes
When implementing LMin an industrial enterprise, the main occurring in a real object are recorded by sensors and reflected
possibility of AR is to reduce downtime caused by breakdowns in its digital copy. This allows one to understand the processes
or other problems during production. Using AR systems, an during the actual use of the facility, effectively carry out
employee, after superimposing a virtual image on a real one, remote control, predict events, detect failures at an early stage,
can immediately notice the defect and, due to the instructions, and control component wear [31]. Digital twin technologies
carry out immediate repairs. In the absence of a repair or are used by enterprises to test new products before they are put
maintenance manual, the employee can contact a specialist into mass production and use, which facilitates development
who instructs them on an ongoing basis to solve the problem. and improvement. Digital twins are created due to the
Such assistance may take place even when the employee and development of the IoT and sensors. The transmitted data
the specialist are in different countries. Using AR opens up a creates real-time feedback between physical objects and their
new way of servicing machines. This is done to minimize the digital twins. Machine learning and AI are increasingly being
risk of making any mistake. Service technicians can scan the used in this field [31, 40].
code on the replacement part very quickly to obtain further The expert called RFID the latest technology in Industry 4.0,
instructions leading to proper installation. Due to this aimed at supporting LMin an industrial enterprise. This is a
technology, maintenance specialists do not need special method that allows wireless identification of objects using
training for machine maintenance and repair [34]. radio waves.
AR allows one to create virtual products before they are Currently, RFID is used in industrial processes, logistics,
manufactured. This provides great convenience because it is production management, and everyday life. The main task of
possible to assess whether the product is correct and meets all RFID is the identification and categorization of a particular
previously expected specifications as early as the production object in such areas of industrial production as process
planning stage, which saves a lot of time. In another situation, automation and the identification of products, tools, machines,
after detecting defects, one should make corrections and create and materials. This ensures efficient flow, facilitates
another prototype. In the automotive industry, huge amounts management processes, and increases the efficiency of
of money are invested in design systems using AR and VR. operations. This method supports management at various
They allow one to obtain various data, from visual and stages of the product development process.
acoustic simulations and tactile sensations to testing
prototypes exclusively with AR and VR systems. This gives
great opportunities and allows companies to create projects 6. CONCLUSIONS
even for several years ahead [29].
AR is also used in the company's internal logistics. Using In this paper, answers were given to the following research
barcodes, it is very easy to trace, record, and document the path questions: whether it is possible to consolidate the interests of
of each semi-finished product in the production shop, from the the main stakeholders and what are the main modern
very beginning to the placement of the finished product in the technologies of Industry 4.0 that can be used to implement and
warehouse. Due to the use of barcodes, the employee will support LM.
quickly find the location of the products in the warehouse. The As our results showed, the implementation of the LM
goal is to replace widely used scanners. This speeds up the concept helps not only to reduce losses but also to find the best
operation of the company inside the warehouse and provides way to eliminate them and to search for such options that will
information to office employees without the need for their allow working with nothing to reduce. Flexible forecasting of
verification. changes in the supply and demand of a particular product helps
However, despite the growing popularity and number of to plan production volumes more accurately, which avoids
implemented AR systems for industrial enterprises, these are further surpluses and losses. Another way to build LM can be
only innovative solutions. The daily use of AR is still a long the adaptation of technological advances in Industry 4.0, such
way off. as ERP systems, IIoT, automation, robotics, AR, VR, and
VR, when implementing LMin an industrial enterprise, can RFID.
be used to monitor production lines and the enterprise. Special Despite the theoretical and practical contributions, this
systems, the so-called digital twins, are used to monitor data study is partially limited by the size of the expert sample and

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