Current Status and Key Factors For The Evolution of The National Industry Towards Industry 4.0

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Current status and key factors for the evolution of the national industry
towards industry 4.0
Technical Report · January 2021

DOI: 10.13140/RG.2.2.21580.03205
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Current status and key factors for the evolution of the
national industry towards industry 4.0
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FINAL REPORT
Research Project: PI-1939-USAL
Current status and key factors

for the evolution of the National Industry
towards Industry 4.0
Salimbeni, Sergio1
Instituto de Ciencia y Tecnología, Facultad de Ingeniería, Universidad del Salvador.
Lavalle 1854, Ciudad Autónoma de Buenos Aires, Argentina. sergio.salimbeni@usal.edu.ar
January, 2021
1
S. Salimbeni
Institute of Science and Technology. Faculty of Engineering
Universidad del Salvador
Buenos Aires, Argentina
__________________________________________________________________________________________________________
Sergio Salimbeni p.1
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CONTENTS
Abstract ........................................................................................................................................................ 4
1. Introduction .............................................................................................................................................. 5
2. Literature Review ..................................................................................................................................... 8
2.1. The beginning .................................................................................................................................... 8
2.2. First computers ................................................................................................................................. 8
2.3. Digitization and Digitalization ........................................................................................................... 8
2.4. Industry 4.0 ....................................................................................................................................... 8
2.5. RAMI 4.0 ............................................................................................................................................ 9
2.6. Maturity Models ............................................................................................................................. 11
3. Methodology .......................................................................................................................................... 13
4. Results .................................................................................................................................................... 16
4.1. Descriptive data analysis ................................................................................................................. 16
4.2. Research Questions and Answers ................................................................................................... 17
5. Future Research Work and Conclusions ................................................................................................. 21
Appendix 1 – Questionnaire ....................................................................................................................... 22
1.1. Questions (40) ................................................................................................................................. 22
1.2. Classification ................................................................................................................................... 22
Appendix 2 – Overall Analysis (n=100) ....................................................................................................... 23
2.1. Overall Analysis: Characterization................................................................................................... 23
2.2. Overall Analysis: Dimensions & Factors .......................................................................................... 24
2.3. Overall Analysis: Five Dimensions ................................................................................................... 25
2.4. Overall Analysis: Dimensions by Role.............................................................................................. 26
2.5. Overall Analysis: 32 Factors (n=100) ............................................................................................... 27
Appendix 3 – Manufacturing vs. Service Industries.................................................................................. 28
3.1. Manufacturing vs. Service Industries: 32 Factors ........................................................................... 28
3.2. Manufacturing vs. Service Industries: Smart Working & Organization ........................................... 29
3.3. Manufacturing vs. Service Industries: Information Systems ........................................................... 30
3.4. Manufacturing vs. Service Industries: Base Technologies .............................................................. 31
3.5. Manufacturing vs. Service Industries: Smart Value Chain .............................................................. 32
Appendix 4 – Micro & Small vs. Medium & Big .......................................................................................... 33
4.1. Micro & Small vs. Medium & Big: 32 Factors .................................................................................. 33
4.2. Micro & Small vs. Medium & Big: Smart Working & Organization ................................................. 34
4.3. Micro & Small vs. Medium & Big: Information Systems ................................................................. 35
4.4. Micro & Small vs. Medium & Big: Base Technologies ..................................................................... 36
4.5. Micro & Small vs. Medium & Big: Smart Value Chain ..................................................................... 37
Appendix 5 – Manufacturing ...................................................................................................................... 38
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5.1. Manufacturing: Five Dimensions .................................................................................................... 38
5.2. Manufacturing: 32 Factors .............................................................................................................. 39
5.3. Manufacturing: Dimensions by size ................................................................................................ 41
5.4. Manufacturing: Factors by size ....................................................................................................... 41
Bibliography................................................................................................................................................ 42
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Keywords: 4th Industrial Revolution, Industry 4.0, Digital

Transformation, SMEs, Robots, Production, Maturity
Models.
Abstract
JEL classification: O3, O39
Industry 4.0 represents a special challenge for
companies in general and for SMEs in particular.
This study examines the awareness, readiness,
and ability of companies to meet this challenge.
The lack, up to date, of a detailed and
quantitative study in Argentina, is what has
motivated this work.
For one and a half years first phase, 328

documents were read, 48 of which were
selected for a deeply analysis, studying 29 of
them in particular. In the second phase, a 40
questionnaire was prepared. 450 forms were
sent to randomly selected companies, receiving
146 responses. Incomplete questionnaires, or
those that did not fit into the characterization
sought, were discarded, leaving 100 suitable
surveys for the study. Later, the data analysis
was performed through spreadsheets and the
help of an statistical software.
It was found out that the development of I4.0 in

Argentina is at a level of 2.49 (on a scale from 0
to 5). The best performance is found for
Information Systems, with an overall average
value of 2.76 out of 5. The worst performance,
among the 5 defined dimensions, was for Smart
Manufacturing, with a score of 2.27 out of 5.
Contrary to what was hypothesized at the

beginning of this study, there is not enough
statistical evidence to confirm a verifiable
difference between the average I4.0 rate of
development of the service and manufacturing
sectors. However, if each dimension is analyzed
separately, a better performance is verified in
those of Smart Working and Organization
(Manuf: 2.7 vs. Service 2.2) and Information
Systems (also Manuf: 2.7 vs. 2.2).
When analysed according to the size of the

company, it was verified a marked difference in
the development of micro and small companies,
with respect to medium and large ones. The 5
dimensions are more developed in the cases of
medium and large companies more than in
micro and small ones.
This research work was carried out in Argentina

between July 2018 and January 2021.
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Mauricio Macri. ... in Argentina it

is something that is on the radar,
but still few implement", said
1. Introduction Gustavo Nieponice, senior partner
and managing director of BCG.
The steam engine, invented towards the end of "They slow down because there is
the 18th century, and its impact, mainly on the uncertainty about how real the
textile industry and transport, marks the 1st business is going to be and
industrial revolution. Towards the end of the because more than A strong
19th century, the use of oil and electricity in investment requires a change in
machines used for scale production, marks the the way of doing things, and this
beginning of the 2nd industrial revolution. The also creates fear. The obstacles
so-called 3rd industrial revolution, in the mid- today are the lack of qualified
20th century, was determined by the invention personnel and the lack of
of the semiconductor, digital technologies, infrastructure to put these
computers, and then, the Internet. technologies into operation,
"Nieponice said. 74% of
Autonomous communication between different executives believe that additional
devices without human intervention, the fusion training and ongoing training are
between technology and biology, the most appropriate measures to
nanotechnology, biotechnology, and artificial manage change. " (La Nación,
intelligence, inaugurate a new era: the 4th February 23, 2018)
industrial revolution (Krajewski, Ritzman y
Malhotra. 2008).
The 4th industrial revolution, which was oriented The 4th industrial revolution is characterized by
to manufacturing industries at the beginning, the processes of automation and digitization,
it´s also currently in service-companies, and it is electronics, and information technologies; 3D
called: Industry 4.0. printing, the development of online sales
services, medical examinations from home, food
“The phenomenon of Industry 4.0 was orders sent directly from the store to the
mentioned for the first time in 2011 in Germany, refrigerator, among many others, will have a
as a proposal for the development of a new significant impact on changes in SMEs (Sommer,
concept of German economic policy based on 2015).
high-tech strategies” (Mosconi, 2015).
“… 76% of the respondents
In other countries, mainly in the United States, it stated that the evolution of
is more commonly known as “Smart Factory”. Industry 4.0 (as it was named in
Germany) is part of the senior
According to its announcements, the Argentine management discussions, but
Government considers Industry 4.0 as a factor of only 30% of the respondents
development and competitiveness for the stated that their companies
national industry. implemented concrete
“Industry 4.0: Government initiatives. We are talking about
introduces a plan to modernize advanced robots, industrial
the economy. The government Internet, simulation, services in
will launch in the coming weeks a "the cloud", cybersecurity,
strategy to modernize the additive manufacturing,
Argentine economy through the augmented reality, Big Data and
integration of knowledge-based analytics. " (Infosepp, year 5 ·
services into production No. 21 2015)
processes. The plan drawn up by
the Ministry of Production, led by
Francisco Cabrera, is so significant Other important components of Industry 4.0
for the ruling party that it could be are: IoT (Internet of Things), IoD (Internet of
presented in the coming weeks by Devices), IoS (internet of Services), IoP (Internet
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of people) and IoE (internet of Energy) which in

turn generate new ones; concepts such as Smart
City, Smart Product, Smart Mobility among Industry 4.0 is introducing new technologies,
many others. which are changing the role of employees and
the work they do, allowing interactions between
According to the author Michael Rüßmann the different elements of the industrial
(2015), the future of productivity and growth in company, from customer needs to the delivery
manufacturing industries will have an impact on of finished products. The introduction of these
nine factors: (1) Big Data and Analytics, (2) new technologies and the integration of other
Autonomous robots, (3) Simulation, (4) enablers of Industry 4.0 will have a
Integration vertical and horizontal Systems, (5) sociotechnical impact (Kadir 2017).
Industrial IoT, (6) Cyber-security, (7) the “cloud”,
(8) additive manufacturing and (9) augmented
reality. Research hypothesis:
The authors analyze the possible impact of ▪ The evolution towards Industry 4.0 in
Industry 4.0 and determined that this 4th argentine companies, would be awfully
industrial revolution will bring benefits in 4 expensive at the beginning, so, it is
areas: (1) Productivity, (2) Income growth, (3) expected to be fully implemented only
Employment, (4) investments. for extremely specific cases, at least in
Finally, they believe that “Manufacturers must the next five years.
establish priorities and improve the workforce. ▪ It is required a strong investment and a
Vendors must take advantage of technologies. change in the modality of work in the
Infrastructure and education need to adapt … industry.
Adapt school curricula, training and university ▪ The obstacles today, are the lack of
programs and strengthen business approaches qualified personnel and infrastructure,
to increase IT-related skills and innovation in order to deploy those new
capabilities of the workforce …” (Michael technologies.
Rüßmann, Markus Lorenz, Philipp Gerbert, ▪ More than a half of executives believe
Manuela Waldner, Jan Justus, Pascal Engel, and that additional training and continuing
Michael Harnisch (April 09, 2015) BCG Industry education are the most appropriate
4.0: The Future of Productivity and Growth in measures to manage this change.
Manufacturing Industries (Report).
“… smart objects communicate. Research questions:

An Internet of objects and services
is created. The physical world and ▪ To what extent could the profitability of
the virtual world merge into the Argentine company improve with
cyber-physical systems "(The the migration to the Industry 4.0
Platform Industry 4.0 interest model?
group - Bundesverband ▪ What would be the new work
Informationswirtschaft, modalities and what kind of skills would
Telekommunikation und neue be necessary in the new engineers and
Medien e.V., 2015 - qualified personnel?
Telekommunikation und neue ▪ Would continuous training help with
Medien e.V., 2015). that change?
▪ What kind of infrastructure should be
improved?
Industry 4.0 brings us closer to new paradigms
for the industrial management of SMEs. The
incorporation of all the new technologies would General purpose:
reduce the cost and make the systems simpler
than the current ERP (Enterprise Resource Industry 4.0 represents a special challenge for
Planning). However, SMEs are not well equipped companies in general and for SMEs, in particular.
to face these new technologies applied to This study examines the awareness, readiness,
production planning and control (Moeuf 2017). and ability of companies to meet this challenge.
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level of preparation of the Argentine industry to

face it, and key factors for its full introduction.
Specific objectives:
▪ Qualify the company’s profitability

improvements with the migration to
Industry 4.0.
▪ Define the new work modalities and This research work was developed in Argentina
what kind of skills would be necessary since July 2018 to December 2020. It included
in the new engineers and qualified micro, small, medium, and large companies,
personnel. both from manufacturing and service industries.
▪ Identify what kind of professional These characterizations are detailed in the
training and education would be methodology section.
necessary for this new era. ……………………………………………………………………
▪ Determine what type of infrastructure,
mainly technological, should be gotten
or improved.
Originality / value:
Deepen the knowledge about the existing

deficits and gaps, in Argentine industry,
regarding human, organizational, and
technological infrastructure factors.
Expected Results / Contributions:
This research project is expected to identify the

main factors of Industry 4.0 and how they will
affect industrial companies, their profitability,
ways of working and organizational structure.
The scientific contribution will also be a

reference framework for the design of change
processes from industrial work systems to
Industry 4.0.
It will also be able to provide new knowledge for

different subjects of the Industrial Engineering
career, such as: Logistics, Industrial Processes,
Business Administration, Industrial Processes,
Organization of Production, Industrial Projects,
Business Economics, Human Resource
Management and Organization of production.
Research project justification:
The current trend of automation and data

exchange between machines in manufacturing
technologies, including cyber-physical systems,
Internet of Things and Artificial Intelligence, is
called Industry 4.0. The almost null development
of Industry 4.0 in Argentina deserves a deep
study of its bases, concepts and implications,
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transformation of societies (Ford & Baum,

2. Literature Review 1997).
2.1. The beginning

2.3. Digitization and Digitalization
Digital transformation is the change associated
with the application of digital technologies in all "Digitization" can be defined as the conversion
aspects of human society. The term Digital of information from analog to digital, that is, to
comes from digit, and refers to the binary binary format. This involves the representation
system, and the action of the conversion to said of signals, sounds, images and objects with
system is called Digitization. discrete values. Virtually, all industrial and
service sectors have been strongly favored by
In 1703, Gottfried Wilhelm von Leibniz, a this data conversion.
German mathematician, developed the concept
that would become known as "digitization", Unlike Digitization, Digitalization is defined as
which he published in his article "Explication de the "process" of induced change within
l'Arithmétique Binaire". It was developed as a industries in general. This process has facilitated
base-2 number system, that is, it represented the development of several of the phenomena
two values: 1 or 0. The system was later currently known as the IoT (Internet of Things),
improved and complemented by George Boole Industrial Internet of Things (IIoT), Big data (BD),
(1854), British mathematician (Boolean Blockchain and Artificial Intelligence (AI).
algebra), Claude Elwood Shannon (1938 ),
A common mistake is to define digitalization as
American mathematician and engineer
the intensive use of Information Technology (IT);
recognized for his work a book entitled "The
however, it is an even more deep change, which
mathematical theory of communication" and
not only transforms the company, but also
George Stibitz, American scientist known for his
brings organizational and social changes (Ford &
work in the 1930s and 1940s on the
Baum, 1997).
development of digital logic circuits, using
electromechanical relays such as switches.
2.4. Industry 4.0

2.2. First computers
Digital technologies have been becoming key
factors for those companies seeking to achieve
The first electronic, analogue computer was
their goals (Nylén and Holmström 2015). The
introduced by Bulgarian-born John Atanasoff in
application of these technologies to business is
1939. With a grant and the assistance of a
called Digital Transformation, and when Digital
graduate student, Clifford Berry, he built the
Transformation reaches the industry it is known
prototype of the Atanasoff Berry Computer
as the 4th industrial revolution.
(ABC) in November of that time. year. Stibitz is
also considered one of the pioneers of digital At the 2011 Hannover fair, and for the first time,
computing, through the development of the first this phenomenon is mentioned as Industry 4.0
electromechanical computer, which worked ”(Matt 2020) (Qin, Liu, and Grosvenor 2016)
with relays. (Sanders, Elangeswaran, and Wulfsberg 2016).
The term I4.0 describes the revolution in the
The digitization process accelerated with the
manufacturing industry around the world (Matt
development of personal computers such as the
2020).
Simon in 1950, Apple II in 1977, and the IBM PC
in 1981. The focus of I4.0 is the combination of
production, information technology and the
With the introduction of the World Wide Web
Internet (Matt 2020). I4.0 is the integration and
(www), the scope, size, scale, speed and effects
interaction of technologies, both in the digital
of digitization fundamentally changed, leading
and physical domains, which differentiate it
to a greater acceleration in the process of
from other industrial revolutions (Demartini and
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Tonelli 2018); smart objects communicate with 3. Machine-Machine Communication: it is a

each other and create an Internet of objects and generic concept that refers to the exchange of
services. The physical world and the virtual information or communication in data format
world are integrated into cyber-physical systems between two remote machines.
(Sommer 2015).
4. Additive Manufacturing: Additive or 3D
There are new techniques, tools and printing is a group of additive manufacturing
technologies that make up the I4.0, such as technologies where a three-dimensional object
Cloud Computing, Mobile Technologies, is created by superimposing successive layers of
Communications between Machines and material.
Additive Printing (Figure 1); However, it could be
said that the pillars of I4.0 are AI (Artificial 5. Advanced robotics: they are robots capable of
Intelligence), CPS (Cyber-physical Systems) and working without human supervision and in turn
CC (Cloud Computing). automate other robots so that they are also
automatic.
A key factor in the development of I4.0 has been
the IoT (Internet of things), particularly, the IIoT 6. Big Data and analytics: refers to a set of data
(Industrial Internet of Things). Broadly speaking, with a volume and complexity of such
IIoT is the application of instruments, sensors magnitude that they require non-traditional
and devices connected to machines and computer applications.
processes in industrial environments (IIoT 7. Industrial Internet of Things (IIoT): refers to
Industrial IoT use cases and applications n.d.). the interconnection between physical objects in
an industrial environment, through electronic
devices that allow the collection and exchange
of data.
8. Cognitive Computing: refers to the use of

hardware and / or software that imitates the
functioning of the human brain, helping them to
make decisions. (Lee et al., 2018).
9. Cybersecurity: is the practice of protecting

computers, servers, mobile devices, electronic
systems, networks and data from malicious
attacks. It is also known as information
Figure 1 - Base Technologies. Source: S. Salimbeni technology security or electronic information
security.
10. CBS cyber-physical systems: a cyber-physical

Two levels of I4.0 have been differentiated in system is a mechanism controlled or monitored
recent years, (Rauch, 2020). The first level of I4.0 by computer-based algorithms and tightly
is primarily technology-driven and is the integrated with the Internet, where mechanical
foundation for the second level, called I4.0 + systems collaborate with computer systems
which incorporates AI. (Armando W. Colombo, Thomas Bangemann,
Stamatis Karnouskos, Jerker Delsing, Petr Stluka,
The technologies associated with I4.0 can be
Robert Harrison, Francois Jammes, 2014).
summarized as follows (Lydon, 2019):
1. Cloud computing: use of software,

applications, services, and data shared between 2.5. RAMI 4.0
different locations and remotely hosted
systems.
2. Mobile technologies: it is a technology that There are two basic requirements to build an
goes where the user goes. It consists of portable I4.0 platform (Lin et al. 2018): first, the definition
two-way communications devices, computing of a communication structure and second, the
devices, and the network technology that development of a common language with its
connects them. own signs, alphabet, vocabulary, syntax,
grammar, semantics, and culture.
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Similarly, it is essential to achieve connectivity which deals with transmitting and receiving data
and interoperability between devices; she is one and should answer the question: how can my
of the most salient characteristics of the Digital client and my company access the data? (5)
Transformation applied to the industry (Leitão, “Integration”, which is the link between the
Colombo, and Karnouskos 2016). For this physical layer and the digital world and answers
reason, the I4.0 platform architecture was the question: what parts of my product are
created in 2013, which was called RAMI4.0. It digitized? and finally the (6) "Asset" or asset,
was developed by three industry associations: which are the physical or intangible "things" in
BITKOM, VDMA and ZVEI and is currently led by the real world and answers the question: how to
BMWi and BMBF (DKE Deutsche Kommission integrate my product or service into the process
Elektrotechnik Elektronik Informationstechnik in to take it to the real world? The representation
DIN und VDE 2018). of this axis makes clear the participation of each
“Asset” in the final business strategy.
RAMI4.0 is a three-dimensional map that shows
how to approach I4.0 in a structured way and The second axis belongs to the Life Cycle of the
ensures that everyone interested in I4.0 Value Stream, which is based on the IEC 62.890
understands each other. It is a service-oriented standard (STANDARD_RAMI40-IEC62890 (Life
architecture that combines all the elements and Cycle Value Stream) - 2017 - (68) .pdf n.d.). Each
components of IT (Information Technology) in a company has a series of activities in its
layered and life cycle model. processes, which add value; that is the so-called
Value Stream. In turn, each organization has its
RAMI4.0 breaks down complex processes into suppliers and clients, who also have their Value
easy-to-understand packages, which include Stream; This set forms the so-called Value
data privacy and IT security, among others. Its System. The value flow of a company is
representation is observed in Figure 2. represented by its “Life Cycle”, that is, the
different phases through which it inevitably
passes. RAMI4.0 represents this Life Cycle of the
Value Stream in two large Phases called: "Type"
and "Instance" (Fig.3). The "Type" in turn has
two subphases: Development and Maintenance;
the Instance phase also has two subphases:
Production and Maintenance. For example, for
an engine manufacturer, in the Type phase, the
Development sub-phase would be made up of
all the steps of a product development, while
the next sub-phase, Maintenance, refers to the
Figure 2 - RAMI 4.0. Source: S. Salimbeni
maintenance of the design, that is, for example,
design updates, hardware and / or software
“updates” and “upgrades”. In the Instance
This architectural reference model is phase, already belonging to Operations, the
represented in three dimensions: (1) Layers (of Production sub-phase refers, in this example, to
enterprise architecture), (2) Life Cycle of the the manufacture of the engine, while the
Value Stream and (3) Levels of Hierarchy. Maintenance (Instance) sub-phase refers to the
after-sales services corresponding to said
The first axis, Layers, has 6 levels, namely: (1) engine. It can be observed in Figure 3.
“Business”, which refers to the company's
business strategy and answers the question:
how much is my client willing to pay for my
product? (2) "Functional", which defines the role
of "assets" within the I4.0 system and answers
the question: what is my product supposed to
do? (3) "Information", which refers to organized
data and should answer the question: what data
should my product provide? This point is
especially important as it begins to define the Figure 3 - Layers-Value Flow Life Cycle. Source: S. Salimbeni
so-called Smart Products. (4) "Communication",
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6. Culture Knowledge sharing: Open-innovation

and cross company collaboration, Value of ICT in
The third axis, Hierarchy Levels, is based on the company.
ISO / IEC 62264 (Manufacturing Architecture
Product) standards (Batchkova, Gocheva, and 7. People: ICT (information and communication
Georgiev 2017) and the RAMI4.0 model extends technologies) competences of employees,
the hierarchy levels at the bottom, adding a openness of employees to new technology,
seventh level "Product" or "Workpiece". In this autonomy of employees.
axis we have then "Hierarchy Levels": the (1) the
8. Governance: Labor regulations for I40,
Connected World, (2) the Company, (3) the
Suitability of technological standards, Protection
Work Center, (4) the Station, (5) the Control
of intellectual property.
Device, (6) the Field Device and (7) the Product.
9. Technology: Existence of modern ICT,
Utilization of mobile devices.
2.6. Maturity Models
As will be seen later in this document, the model
This research project sought, fundamentally, a proposed in this work consists of 5 dimensions
starting base for a subsequent study about and 32 factors. Everything proposed by
readiness and maturity levels. Various models Schumacher has been considered.
have been studied. They were the basement
and foundations for the construction of the
instrument of the present research project. In specific industries, like automotive, were
found out interesting models. Gökalp (2017)
talks about the various well-accepted generic
One of the models that were analyzed during Software Process Capability/Maturity Models2
this research, was that proposed by Schumacher (SPCMMs), such as ISO/IEC 15504 - also termed
(2018). He has designed the following as Software Process Improvement and
Dimension Exemplary maturity structure: Capability dEtermination (SPICE) replaced with
ISO 33000 series and CMMI-DEV (Capability
1. Strategy Implementation: I40 roadmap, Maturity Model Integration for Development)
Available resources for realization, Adaption of model.
business models.
Several benefits have been seen from these
2. Leadership: Willingness of leaders, SPCMMs, such as cost savings, increased
Management competences and methods, employee engagement, predictable and
Existence of central coordination for I40. improved quality and productivity. Due to the
3. Customers: Utilization of customer data, interest in these issues, many initiatives based
Digitalization of sales/services, Costumer’s on these SPCMM have been proposed which are
Digital media competence. applicable for various domains.
4. Products: Individualization of products,

Digitalization of products, Product integration Digitalization is significantly essential, but many
into other systems. companies are not well-prepared for that
5. Operations: Decentralization of processes, challenge. Various phases need to be taken so as
Modelling and simulation, Interdisciplinary, to make an enterprise smarter. In the way of
interdepartmental collaboration. digitalization and achieving Industry 4.0, a well-
structured roadmap and planning, will help all
kind of industries, especially SMEs with limited
2
Development of an Assessment Model for
Industry 4.0: Industry 4.0-MM. Ebru Gökalp
Baskent University
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financial and technological resources (Hamzeh,

2018).
On the other hand, Professor Erwin Rauch and

his team, have developed an interesting model,
called Smart SME 4.0 Implementation Toolkit
(Rauch, 2020).
Four dimensions have been defined in that

model:
1. Information technology: Equipment

infrastructure, IT system, Information sharing,
and Cloud based.
2. Production and operations: Innovation

management, Data analytics, Horizontal/vertical
data integration and Expert system.
3. Automation: Overall Equipment

Effectiveness, Man-machine interaction,
Autonomous process, and M2M Machine
connectivity.
4. Human resource: Technical and Non-

technical.
This model has also been considered in this

research work, and the dimensions raised here
have had a great influence, mainly due to the
similarities between small Italian and Argentine
industries.
On the other hand, some other authors, like

Hofmann and Rusch (2017), proposed only two
dimensions, focusing to logistic industries.
Based on those studies, 5 dimensions of I4.0

were defined in this work, each one with its
respective variables, totaling 32 factors. A more
detailed explanation is provided in the next
section.
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people to interview (Glaser & Strauss, 1967).

From this perspective, the number of cases
studied is unimportant as underlined (Taylor &
3. Methodology Bogdan, 1987). According to Valles (2002, p.72),
“the key lies in the master criterion of
Approach: heterogeneity and in the flexible, iterative,
continuous nature of qualitative sampling”.
Qualitative-quantitative. (Hernández Sampieri,
Fernández Collado, C. y Baptista Lucio, 2010) Quantitative stage: the survey is administered to
a group of industries / people called the sample,
Perspective: with the aim of identifying trends in attitudes,
opinions, behaviors, or characteristics of a larger
Industrial engineering. group of individuals called the population
Research scope - type of work: (Creswell, 2009).
Exploratory and descriptive, with participant The following sequence is followed to obtain the
observation and structured questionnaire; contacts: (a) the survey is sent to 450 contacts
presence in the scenarios where the observation from 100 different enterprises; (b) finally it was
takes place, interacting with the people who gotten 100 cases that fully and validly answer
experience them day by day. the survey (n = 100).
Design:
Non-experimental, transactional exploratory Processing and analysis techniques.

type. Qualitative stage. The analysis follows the
Theoretical framework: approach of Creswell (2009).
Reading cards, mapping method, conceptual Quantitative stage. The “e-survey” platform was
maps. used to carry out web surveys by generating a
matrix of data from the responses. It was
Data collection technique: converted for further processing with a
spreadsheet and statistic software.
Qualitative stage: in-depth interviews. In-depth
interviews are a contribution to the researcher's
learning about circumstances that he cannot
observe directly, for that reason his Process:
interlocutors in these conversations are true, Industry 4.0 is a concept dating back to 2011,
collaborating not only with the contribution of therefore, the available literature on the
their points of view but with knowledge about implementation of Industry 4.0 enablers is
“what it happens and the way other people something limited. This project intends to use a
perceive it ”[3] (Taylor & Bogdan, 1987, p.103). pragmatic approach to address this literature
Quantitative stage: survey. This type of gap and industry need, by conducting multiple
standardized interview is carried out by means industrial studies and exploratory pilot studies
of a structured questionnaire, which makes it to investigate and answer the proposed
possible to compare different responses to the research questions.
same question and quantify each of the results The results of studies dealing with these issues
obtained [4] (García Ferrando, 1996, p.178). are examined in the framework of a systematic
Through this technique we try to validate the review and compared against the objective of
hypotheses. the study in question.
The questionnaire for this research project From the idea of the investigation the problem
contains 40 Likert questions with 5 items scale. has arisen. A literature review was carried out
Samples and the Theoretical Framework was developed.
Once the scope of the study was visualized, the
Qualitative stage: the theoretical sampling elaboration of hypotheses and definition of
strategy is used to select the industries and variables was carried out. The main method
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
used to answer the research questions is the

case studies. In order to increase the
generalizability of the findings, other industrial In the second phase, a 40 questionnaire was
companies were investigated and analyzed prepared.
using the same approach.
The collected data were transferred to
On that occasion, a non-experimental design electronic spreadsheets for analysis, both in MS
was carried out, obtaining the necessary data to Excel™ and Minitab™.
achieve the objectives, using primary sources,
which is why it was necessary to carry out a field
research work in its natural context.
Data collection techniques will differ according

to the specific objective of the investigation. The
techniques used for each objective are detailed
below: (1) in-depth interviews, (2) personalized
surveys, (3) online surveys, and observation.
The methodology used is based on a qualitative

approach and from the perspective of industrial
engineering. The scope of the research is Figure 4 – Data. Source: S. Salimbeni
exploratory and descriptive. The methodology,
for the theoretical framework has been search Pilot tests, for the survey instrument, were
and bibliographic management with reading conducted. 450 forms were sent to randomly
cards, mapping method and use of the pentagon selected companies, receiving 146 responses.
method. Incomplete questionnaires, or those that did not
fit into the characterization sought, were
It was carried out in two phases (fig. 5): (1) a
discarded, leaving 100 suitable surveys for the
review of the literature regarding Industry 4.0
study. Through spreadsheets and the help of
and its technologies was carried out and (2) a
survey was carried out in argentine industries. statistical software (Minitab™) the data analysis
was performed.
In the first phase, 328 documents were read, 48
of which were selected for a deeply analysis, Validity and consistency tests were carried out.
studying 29 of them in particular; one of the All the details are in the following Annexes.
most important was the German
Standardization Roadmap Industrie 4.0, version
3.
Bibliographic
Said work was carried out as follows: (1) In PHASE review and
identification
PHASE Polling and
1 2 data analysis
academic databases with a search string through of
technologies
the combination of the operator “or” between

the keywords, they collected the references that
met the following criteria: (a) they were Figure 5 - Research phases. Source: S. Salimbeni
published in conference proceedings, articles,
magazines, series of books and books between
2017 and 2020; (b) contained at least one of the
Based on the studies carried out, 5 dimensions
search terms in the abstract, title and / or
for I4.0 analysis were defined, with their
keywords. (2) Duplicates removed. (3) Those
respective variables, totaling 32 factors, as
which did not have full texts available were
discarded. (4) Documents that defined Industry illustrated in Figure 6.
4.0 outside the scope of this research work were
excluded. (5) They were classified according to
the research questions. (6) The collected
documents were analyzed and the
corresponding data of interest for the research
questions were collected.
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Figure 6 - Dimensions and factors. Source: S. Salimbeni
During the survey, each factor was weighted

from 1 to 5, (1) not implemented, to (5) Fully
implemented. (fig. 7)
Figure 7 - On line questionnaire. Source: S. Salimbeni
……………………………………………………………………
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
A correlation study was carried out

between variables within each dimension
4. Results in order to test the representativeness of
each of these factors within its dimension
4.1. Descriptive data analysis
and even between them.
The 100 samples were classified according

to: (1) the role of the respondent, (2) the
size of their company, (3) the region in Figure 10 - Correlation analysis. Source: S. Salimbeni
which the company is located, (4) the type
of industry, (5) if said company is national
or multinational, (6), (7) and (8) are Then the results of each dimension were
characterization questions of the compared, according to the size of the
respondent. company and the industry to which it
Questions from (9) to (40) are the 32 belongs.
variables used to analyze the I4.0 level.
The main classification used for the In order to ensure whether the similarities
analysis is the one shown in the following or differences between said Means were
figure: statistically acceptable, Two sample T-tests
and CI were performed. Before applying
micro
the T-test, Normality tests were
µ & small
samll performed.
size
medium
m & Big
Enterprises big
manufacturing
industry
service
Figure 8 – Classification. Source: S. Salimbeni
Figure 11 - Normality test. Source: S. Salimbeni
The 32 variables were grouped into 5

dimensions, as developed in the theoretical
framework.
An Alpha Cronbatch test was performed

for each set of questions.
Figure 9 - Cronbatch test. Source: S. Salimbeni
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
4.2. Research Questions and

Answers
Due to the pandemic situation and

limitations of interviews and surveys, some
of the questions posed at the beginning of
this work have not been answered.
However, scientific evidence has been
obtained on several of the variables that it
had been proposed to investigate.
4.2.1. To what extent could the profitability

of the Argentine company improve with
the migration to the Industry 4.0
model?
No performance assessment was possible,

so it is not possible to answer this
question. This answer is pending for the
Figure 12 - Two sample T test. Source: S. Salimbeni second stage of this study, which begins on
February 1, 2021.
4.2.2. What would be the new work

modalities and what kind of skills would
be necessary in the new engineers and
qualified personnel?
There is not enough development in

transversal skills nor adequate training,
obtaining an average value of 2.4 / 5.0.
Process management is currently the most

developed, although it barely reaches a
value of 3.1 / 5.0.
Figure 13 - Mann-Whitney tes. Source: S. Salimbeni
Agile methodologies are better positioned
than expressed in our previous hypotheses.
It also was done a Mann-Whitney so as to

Test Medians.
We show below the most important

results, but details are also shown in the
respective annexes of this document.
Figure 14 - Smart Working & Organization dimension.
Source: S. Salimbeni
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Figure 18 - Base Technologies dimension. Source: S.

Salimbeni
Figure 15 - Smart Working & Organization dimension.

4.2.3. Would continuous training help with

that change?
During in-depth interviews, 8 out of 10

were found to agree that ongoing training
is the way to go.
Figure 19 - Base Technologies dimension. Source: S.
Salimbeni
4.2.4. What kind of infrastructure should

be improved?
c. Smart Value Chain
a. Information Systems
Figure 20 - Smart Value Chain dimension. Source: S.

Salimbeni
Figure 16 - Information Systems dimension. Source: S.

Salimbeni
Figure 21 - Smart Value Chain dimension. Source: S.

Figure 17 - Information Systems dimension. Source: S. Salimbeni
Salimbeni
d. Smart Manufacturing
b. Base Technologies
Figure 22 - Smart Manufacturing dimension. Source: S.

Salimbeni
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
6. Total by size
Figure 23 - Smart Manufacturing dimension. Source: S.

Salimbeni
5. Total by industry
Figure 26 - Five dimensions by size. Source: S. Salimbeni
oadmap Industry 4.0

Fle ible Manufacturing Training mul skills
redic ve Maintenance Innova on inicia ves
Smart energy rocess Management
M S Agile Management
Sensoring Collabora on etworks models
Intelligent roducts C M
Machines controlled by roducts
emote monitoring of roducts M
roduct trazability (on clients) LM
Digital integra on with clients QM
Digital Integra ons with suppliers SM
Materials and parts trazability IoT
Figure 24 - Five dimensions by Industry. Source: S. Salimbeni Simula on / Digital twin

/A
CC
Big Data and Analy cs
D C S / Cobots
Informa on Security
Medium Big Micro Samll
Figure 27 - 32 Factors by size. Source: S. Salimbeni

oadmap Industry 4.0
Fle ible Manufacturing Training mul skills
redic ve Maintenance Innova on inicia ves
Smart energy rocess Management
M S Agile Management
Sensoring Collabora on etworks models
Intelligent roducts C M Size Industry

Machines controlled by roducts Mi cro & Sa ml l Medi um & Bi g Serv.& Others Ma nufa cturi ng
Smart Working & Organization 2,44 2,89 2,62 2,74
emote monitoring of roducts M
Information System 2,28 3,25 2,57 3,02
roduct trazability (on clients) LM Base Technologies 2,10 2,57 2,38 2,26
Digital integra on with clients QM Smart Value Chain 2,17 2,72 2,45 2,42
Digital Integra ons with suppliers SM
Smart Manufacturing 1,84 2,86 2,11 2,49
Materials and parts trazability IoT
Simula on / Digital twin
/A
CC
Big Data and Analy cs
Figure 28 - 5 Dimensions by Size and Industry. Source: S.
D C S / Cobots
Informa on Security
Salimbeni
Ma nufa cturi ng Serv. thers
Figure 25 – 32 Factors by industry. Source: S. Salimbeni
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Figure 29 - I4.0 Dimensions for Manufacturing sector.

Figure 30 - I4.0 Dimensions for Manufacturing sector.

……………………………………………………………………
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
medium and large companies more

than in micro and small ones.
5. Conclusions • All the above are summarized in the
fig. 28, 29 & 30.
• All the results shown below are

based on statistical tests, having
carried out tests of normality,
consistency and hypotheses, 6. Future Research Work
among others. Everything was done
with MS Excel™ and Minitab™
software. Due to the impossibility of completing
• The development of I4.0 in some in-depth interviews, due to the
Argentina is at a level of 2.49 (on a pandemic during 2020, the evaluation of
scale from 0 to 5). This indicates the impact of I4.0 on the enterprise
that its development is halfway. profitabilities is pending for a future study.
• About the 5 proposed dimensions,
It is also proposed to improve the
the best performance is found for
characterization and segmentation of the
Information Systems, with an
surveys in order to carry out a more
overall average value of 2.76 out of
detailed and precise study.
5.
• The worst performance, among the In a future research work a model of
5 defined dimensions, was for degree of maturity will be developed.
Smart Manufacturing, with a score
of 2.27 out of 5.
• Contrary to what was hypothesized
at the beginning of this study, there ……………………………………………………………………
is not enough statistical evidence to
confirm a verifiable difference
between the average rate of
development of the service and
manufacturing sectors.
• However, if each dimension is
analysed separately, a better
performance is verified in those of
Smart Working and Organization
(Manuf: 2.7 vs. Service 2.2) and
Information Systems (also Manuf:
2.7 vs. 2.2).
• When analysed according to the
size of the company, there is
confirmed a marked difference in
the development of micro and small
companies, with respect to medium
and large ones. The 5 dimensions
are more developed in the cases of
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Appendix 1 – Questionnaire
1.1. Questions (40)
1.2. Classification
Role Qty. Employees Industry National /
Multinational
CEO-Mngr Sup-Other m&S M&B Serv. Manuf
CEO - VP Manager Supervis Other micro Small Medium Big Service Manufac Other National Multinat
or turing (i.e. ional
agro, oil,
SWO Smart Working & Organization
ISM Information System
BTS Base Technologies
SVC Smart Value Chain
SMG Smart Manufacturing
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Appendix 2 – Overall Analysis (n=100)
2.1. Overall Analysis: Characterization
Company size
44,0% 29,0%
18,0%
9,0%
1 a 15 16 a 100 101 a 300 >300
Industry
28 28
19 25
Manufacturing Oli, Gas, Energy, Chemical

Agro, Food … Logistic & other servicies
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
2.2. Overall Analysis: Dimensions & Factors
I4.0
Smart Working & Information Smart

Base Technologies Smart Value Chain
Organization Systems Manufacturing
Materials
Roadmap I4.0 CRM IoT Sensoring
trazability
Digital Int.
Training I4.0 ERP CC MES
w/suppliers
Innovation Big Data / Digital Int.

PPM Smart energy
iniciatives Analytics w/clients
Process Predictive
PLM CPS Product trazability
Management maintenance
Remote
Information Flexible
Agile Management EQM monitoring of
Security manufacturing
products
Machins
EHSM 3D controlled by
products
Intelligent
VR / AR
products
Simulation / Digital
Twin
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
2.3. Overall Analysis: Five Dimensions
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
2.4. Overall Analysis: Dimensions by Role
CEOs & Managers Supervisors & others
0,0% 50,0%
45,0%
25,0%
40,0%
20,0% 5,0%
0,0%
15,0% 25,0%
20,0%
10,0% 15,0%
10,0%
5,0%
5,0%
0,0% 0,0%
ot i mpl emented Somethi ng Modera tel y Qui te Ful l y ot i mpl emented Somethi ng Modera tel y Qui te Ful l y
i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented
0,0% 40,0%
5,0%
25,0%
0,0%
20,0%
25,0%
15,0% 20,0%
15,0%
10,0%
10,0%
5,0%
5,0%
0,0% 0,0%
ot i mpl emented Somethi ng Modera tel y Qui te Ful l y ot i mpl emented Somethi ng Modera tel y Qui te Ful l y
i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented i mpl emented
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
2.5. Overall Analysis: 32 Factors (n=100)
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Appendix 3 – Manufacturing vs. Service Industries
3.1. Manufacturing vs. Service Industries: 32 Factors
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
3.2. Manufacturing vs. Service Industries: Smart Working & Organization
3.2.1. T-Test & Mann-Whitney Test
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
3.3. Manufacturing vs. Service Industries: Information Systems
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
3.4. Manufacturing vs. Service Industries: Base Technologies
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
3.5. Manufacturing vs. Service Industries: Smart Value Chain
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Appendix 4 – Micro & Small vs. Medium & Big
4.1. Micro & Small vs. Medium & Big: 32 Factors
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
4.2. Micro & Small vs. Medium & Big: Smart Working & Organization
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
4.3. Micro & Small vs. Medium & Big: Information Systems
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
4.4. Micro & Small vs. Medium & Big: Base Technologies
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
4.5. Micro & Small vs. Medium & Big: Smart Value Chain
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Appendix 5 – Manufacturing
5.1. Manufacturing: Five Dimensions
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
5.2. Manufacturing: 32 Factors
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
5.3. Manufacturing: Dimensions by size
5.4. Manufacturing: Factors by size
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
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Technical Report · January 2021

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Research Project: PI-1939-USAL

Current status and key factors

Instituto de Ciencia y Tecnología, Facultad de Ingeniería, Universidad del Salvador.

Lavalle 1854, Ciudad Autónoma de Buenos Aires, Argentina. sergio.salimbeni@usal.edu.ar

Keywords: 4th Industrial Revolution, Industry 4.0, Digital

For one and a half years first phase, 328

It was found out that the development of I4.0 in

Contrary to what was hypothesized at the

When analysed according to the size of the

This research work was carried out in Argentina

Mauricio Macri. ... in Argentina it

of people) and IoE (internet of Energy) which in

“… smart objects communicate. Research questions:

level of preparation of the Argentine industry to

▪ Qualify the company’s profitability

Deepen the knowledge about the existing

Expected Results / Contributions:

This research project is expected to identify the

The scientific contribution will also be a

It will also be able to provide new knowledge for

Research project justification:

The current trend of automation and data

transformation of societies (Ford & Baum,

2.1. The beginning

2.4. Industry 4.0

Tonelli 2018); smart objects communicate with 3. Machine-Machine Communication: it is a

8. Cognitive Computing: refers to the use of

9. Cybersecurity: is the practice of protecting

10. CBS cyber-physical systems: a cyber-physical

1. Cloud computing: use of software,

6. Culture Knowledge sharing: Open-innovation

4. Products: Individualization of products,

financial and technological resources (Hamzeh,

On the other hand, Professor Erwin Rauch and

Four dimensions have been defined in that

1. Information technology: Equipment

2. Production and operations: Innovation

3. Automation: Overall Equipment

4. Human resource: Technical and Non-

This model has also been considered in this

On the other hand, some other authors, like

Based on those studies, 5 dimensions of I4.0

people to interview (Glaser & Strauss, 1967).

Non-experimental, transactional exploratory Processing and analysis techniques.

used to answer the research questions is the

Data collection techniques will differ according

The methodology used is based on a qualitative

the combination of the operator “or” between

Figure 6 - Dimensions and factors. Source: S. Salimbeni

During the survey, each factor was weighted

Figure 7 - On line questionnaire. Source: S. Salimbeni

A correlation study was carried out

The 100 samples were classified according

Figure 8 – Classification. Source: S. Salimbeni

Figure 11 - Normality test. Source: S. Salimbeni

The 32 variables were grouped into 5

An Alpha Cronbatch test was performed

Figure 9 - Cronbatch test. Source: S. Salimbeni

4.2. Research Questions and

Due to the pandemic situation and