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EVALUATING THE FACTORS INFLUENCING SMART MANUFACTURING USING
THE DEMATEL METHOD
Conference Paper · March 2023
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EVALUATING THE FACTORS INFLUENCING SMART
MANUFACTURING USING THE DEMATEL METHOD
Fawaz M. Abdullah, Abdulrahman M. Al-Ahmari, and Saqib Anwar
Industrial Engineering Department, College of Engineering, King Saud University, P. O. Box 800, Riyadh 11421,
Saudi Arabia;
[email protected];
[email protected];
[email protected] Abstract: and steam (First Industrial Revolution). With the
The decision-making trial and evaluation assistance of electricity, division of labor and mass
laboratory (DEMATEL) method has been manufacturing was implemented (Second Industrial
extensively used to discover critical factors of Revolution)—the advancement of electronic and
essential systems in various industries. This method information technology systems and the mechanization of
is effective for determining the cause-and-effect production (third industrial revolution). The emergence of
relationship in complex problems. The paper aims to the Internet of Things (IoT) defines the fourth industrial
utilize the DEMATEL approach to investigate the revolution, usually known as I4.0.[1, 2]. The numerous
factors influencing manufacturing strategy outputs' industrial revolutions are presented in Figure 1. Figure 1
(MSOs') adoption of Industry 4.0 (I4.0) technologies. shows that the rate at which procedures have been
It assesses the interdependent relationships among revolutionized over the past two centuries has increased.
MSO factors from the perspective of academic and Additionally, with each industrial revolution, production
industry experts. MSOs include cost, quality, has become more sophisticated and productive.
delivery, flexibility, performance, and I4.0 is a breakthrough wave that enables businesses to
innovativeness, which motivate the organization to adapt rapidly and effectively to customer needs. In 2011,
achieve a competitive edge. The results demonstrate academics and practitioners founded the I4.0 to enhance
that cost, quality, and performance are the most the manufacturing industry's competitiveness, which
influential factors for MSOs. brought I4.0 to the public's attention [3]. I4.0 means that
automation technologies like cyber-physical systems
Keywords: Industry 4.0 Technologies, Smart (CPS), the Internet of Things (IoT), and cloud computing
Manufacturing, Manufacturing strategies, Multi-criteria are being used in the manufacturing industry [3]. The
decision-making, and DEMATEL method original motivation behind this concept, which designers
may refer to as “flexible integration of the global value
chain," was to create products that accurately reflected the
Introduction customer's requirements [4, 5].
Keywords: Industry 4.0 Technologies, Smart
Manufacturing, Manufacturing strategies, Multi-criteria
decision-making, and DEMATEL method. The
introduction of manufacturing facilities powered by water
Fig 1. Historical development of the industry
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A manufacturing strategy is a set of policies designed This study adopted a methodology similar to that in
to maximize performance while balancing competing [12]. This study selected experts regarding knowledge and
success criteria to complete the manufacturing task experience level [12]. Experts with a minimum
specified by a corporate strategy. Top management professional experience of ten years, as suggested by [13],
ensures a consistent manufacturing strategy in which all in academia, industry, or both were considered acceptable
manufacturing policies are designed to complement or [13]. Experts should have deep knowledge of
support the corporate strategy [6]. The manufacturing manufacturing strategies with particular emphasis on
sector has become a critical competitive differentiator for manufacturing strategy competitive outputs. Besides that,
businesses [7]. Therefore, a company's leadership must experts should be familiar with I4.0 technologies using
develop a production plan. Improving manufacturing practice or theory, as recommended by [14].
outputs is a crucial part of any manufacturing strategy,
and implementing this plan requires choosing how to To clarify the research, experts were interviewed
best match manufacturing goals with business goals [8]. individually, and those who could not participate in person
Manufacturing strategy outputs are cost, quality, because of their location were interviewed online. The
delivery, performance, flexibility, and innovation [9]. authors began by identifying thirty experts who met the
The manufacturing strategy outputs, or competitive criteria above. They received an initial email explaining
priorities, are centered on strengthening the the purpose of the study and confirming their participation.
organization's intended competitive capabilities [10]. Twenty of them responded positively to the email. In the
This paper aims to determine the factors influencing end, however, only seventeen experts completed the
MSOs' adoption of I4.0 technologies. questionnaires.
As the complexity of manufacturing increases, Figure 2 presents the summary of manufacturing
manufacturers are looking for more effective decision- strategy outputs and their descriptions. In summary,
making. A practical solution requires understanding the collecting and screening influencing factors came out with
problem's causal relationship, the implication of the most six MSOs related to industry 4.0 technologies. This was
effective approach, and implementing an effective action accomplished by collecting and analyzing relevant
plan. DEMATEL is generally utilized to establish a literature. Previous studies [15-18] show that the MSOs
cause-and-effect relationship between the dependent include cost, quality, delivery, flexibility, performance, and
factors. This method helps develop a structural model to innovativeness.
examine the interrelationships of complex factors in
extensive and comprehensive studies [11]. These factors I4.0 will depend on data capture and exchange
are ranked based on the type of relationship they throughout the supply chain. I4.0 includes “new
represent and the extent to which they influence one technologies that combine the physical, digital, and
another. This method converts interdependencies into a biological worlds" These technologies could boost
group of causes and effects using matrices and identifies economic and organizational efficiency by connecting
the critical factors of a complex structure system using billions of individuals to the internet. Studies show [8, 19-
impact relationship diagrams. 23] the I4.0 technologies are loT, cloud manufacturing
(CM), Big Data, automation and industrial robotics (AIR),
This research follows the following structure: The additive manufacturing (AM), augmented reality (AR),
methodology is discussed in Section II. This paper's simulation, and cybersecurity (CS).
findings and analysis are presented in Section III.
Conclusions are presented in Section IV.
The DEMATEL helps evaluate experiential marketing
tactics. The DEMATEL helps visualize complex causal
Research Methodology relationships with matrices or digraphs. The matrices or
digraphs show contextual relationships between system
elements, where a numeral denotes influence.
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Fig 2. Manufacturing strategy outputs
The DEMATEL method Step 1: Determine the direct-relation
(Average) matrix: Each participant was first
The Decision-making Trial and Evaluation Laboratory asked to assign an integer score between 0 and
(DEMATEL) approach was created between 1972 and 4 to characterize how strongly they believed
1976 by the Science and Human Affairs Program (SHAP) two factors influenced one another, as shown
of the Battelle Memorial Institute of Geneva [24]. The in Table 1.
method, based on graph theory, has been used to collect the
Table 4. DEMATEL measuring scale
knowledge of experts and show the causal relationship
Influence
between complicated components through a graphical Linguistic Terms Symbol.
score
diagram [25]. By analyzing the visual relationship between
No influence NO 0
entities and their groupings, the DEMATEL method can
Very low influence VL 1
assist in prioritizing factors depending on the type of
Low influence L 2
interaction and determining the degree of their effect on
High influence H 3
other factors.
Very high influence VH 4
The DEMATEL method procedures can be
expressed as follows:
A respondent's estimation of how much variable i ଵ
influences variable j is represented by the notation ݔ The ܽ[= ܣ ] = σு
ୀଵ ݔ (1)
ு
diagonal elements are all zeroed out when i = j. Using the
formula ݔ = [ݔ ], where k is the total number of Step 2: Calculate the normalized initial direct-
relation matrix. Initial direct correlation matrix D
UHVSRQGHQWVDQGN+D n×n non-negative matrix can
is normalized by
be established for each respondent. That's why we have
matrices labeled ܺଵ , ܺ ଶ ܺ ଷ , … ܺ ு From H respondents.
The average matrix A = [ܽ ] can be built like this to D = m ×A (2)
include the thoughts of all H respondents:
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Where, factor i when j = i. In other words, (ݎ +ܿ ) indicates the
m=݉݅݊
ଵ
,
ଵ
൨ , ݅, ݆ €{1,2, . . , ݊} (3) relevance of factor i to the entire system. In contrast, the
௫ σ
ೕసభ ೕ ௫ σసభ ೕ difference (ݎ - ܿ ) represents the overall effect that factor
i has on the system. Specifically, factor i is a net cause if
Each element in matrix D is between 0 and 1. (ݎ - ܿ ) is positive, whereas factor is an effect if (ݎ -ܿ ) is
negative.
Step 3: Determine the total relationship matrix. Results and Discussion
The total-influence matrix T is calculated using
Eq. (5), where I is a n x n identity matrix. The Evaluation of the six criteria Cost(C), Quality(Q),
element of ݐ Represents the indirect effects of Delivery(D), Flexibility(F), Performance (P) and
factor i on factor j, and the matrix T represents the Innovativeness(I). The DEMATEL method is
overall relationship between each pair of system employed to assess the impact of each criterion.
factors. Respondents were then tasked with evaluating the
interrelationships between each factor using the five
ܶ = ݈݅݉ ( ܦ+ ܦଶ + ڮ. +ܦ ) scores listed in Table 1. Table 2 displays initial direct
ୀஶ relationships for all response matrices. Table 3 shows
the normalized direct-relation matrix, while Table 4
σஶ
ୀଵ ܦ
(4) illustrates the degree of influence of each factor. The
factors performance (P), flexibility (F), and
Where innovativeness (I) is divided into the cause group. The
effect criteria group comprises cost (C), quality, and
σஶ ଶ
ୀଵ ܦ = ܦ+ ܦ+ ܦ ڮ
delivery (D).
Among the factors that contribute to market
= D (1 + ܦଵ + ܦଶ + ܦ ڮିଵ competitiveness. Cost is the most influential factor for
MSOs, and the past literature supports this finding [26].
=D(1 െ )ܦଵ + (1 െ ()ܦ1 + ܦଵ + ܦଶ + Costs are reduced when production costs, such as
ܦ ڮିଵ ) overhead, training, and value-added, are effectively
managed. The second critical factor in MSOs ' market
= D(1 െ )ܦଵ + (1 െ )ܦ competitiveness is quality. Other enablers appear
moderately important to MSOs when adopting I4
T= D(1 െ )ܦଵ (5) technologies (Table 4).
Understanding the most common critical MSOs
Define r and c as n×1 and 1×n vectors representing requires rigorous consideration of their causes.
the sum of rows and the sum of columns of the total However, effect factors are those that other factors with
relation matrix T, respectively. comparatively little effort can influence. Flexibility is
the most cause factor that must be considered to keep
the organization competitive with others.
ݎ[ = ݎ ]×ଵ = ൣσୀଵ ݐ ൧ (6)
×ଵ
Effect groups are factors that are easily influenced by
ܿ = [ܿ ]×ଵ = ൣσୀଵ ݐ ൧ଵ× (7) other factors. However, it is still necessary to analyze the
effect factors that could have severe consequences for the
outputs of manufacturing strategies. The cost has the
Assuming ݎ Is the sum of the ith row in matrix T, ݎ
highest (ݎ +ܿ ) value (21.09) among all effect groups, as
The direct and indirect effects of component i on the
shown in Figure 3 (cause-effect relationship diagram).
other factors are summarized. If ܿ represents the total of Moreover, its influence degree (ܿ ) has the highest value
the jth column in matrix T, then ܿ Indicates the direct among all outputs (10.62). As shown in Figure 4, quality
and indirect effects of factor j on the other factors. (ݎ + and delivery also significantly influence manufacturing
ܿ ) represents the total effects delivered and received by strategies as effect factors.
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TABLE I. TABLE 5. INITIAL DIRECT-RELATIONSHIPS FOR ALL MATRIX OF RESPONSES
C Q D F P I
C 0.00 3.21 2.21 2.21 2.79 2.93
Q 3.14 0.00 1.71 1.93 3.14 1.86
D 2.07 1.50 0.00 1.50 1.21 1.14
F 2.50 2.36 2.21 0.00 2.71 2.64
P 3.00 3.21 1.71 2.43 0.00 2.50
I 2.86 2.14 1.43 2.79 2.43 0.00
TABLE II. TABLE 6. THE NORMALIZED DIRECT-RELATION MATRIX
MSOs C Q D F P I
C 0.00 0.25 0.17 0.17 0.21 0.23
Q 0.24 0.00 0.13 0.15 0.24 0.14
D 0.16 0.12 0.00 0.12 0.09 0.09
F 0.19 0.18 0.17 0.00 0.21 0.20
P 0.23 0.25 0.13 0.19 0.00 0.19
I 0.22 0.16 0.11 0.21 0.19 0.00
TABLE III. TABLE 7. THE INFLUENCE DEGREE OF ALL FACTORS
cause-effect
MSOs affected degree (࢘ ) influence degree (ࢉ ) centrality(࢘ +ࢉ ) Category
degree(࢘ - ࢉ )
C 10.47 10.62 21.09 -0.15 Net effect
Q 9.56 9.98 19.54 -0.42 Net effect
D 6.27 7.63 13.90 -1.36 Net effect
F 9.84 8.78 18.63 1.06 Net cause
P 10.26 9.87 20.13 0.40 Net cause
I 9.49 9.02 18.51 0.47 Net cause
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