A life cycle cost analysis method accelerating IoT implementation in SMEs

Yuya Mitake; Yusuke Tsutsui; Salman Alfarihi; Mar'Atus Sholihah; Yoshiki Shimomura

doi:10.1016/j.procir.2021.11.240

A life cycle cost analysis method accelerating IoT implementation in SMEs

Yuya Mitake^*
, Yusuke Tsutsui
, Salman Alfarihi
, Mar'Atus Sholihah
, Yoshiki Shimomura

^*Corresponding author for this work

Laboratory of Industrial Management and System Design

Tokyo Metropolitan University

Research output: Contribution to journal › Conference article › peer-review

7 Citations (Scopus)

Abstract

The implementation of Internet of Things (IoT) technology in the manufacturing industry is continuing to grow, as shown by the extensive research, development, and standardization regarding IoT technology. However, a deficiency of IoT-related knowledge and experience is still a serious barrier to decision-making in IoT implementation, especially in small and medium enterprises (SMEs). This study develops a method to clarify the impact of IoT implementation on life cycle costs to support decision-making of IoT implementation in SMEs. The results demonstrated that the proposed method can foster an understanding of the economic impacts of the IoT implementation through the calculation of return on investment.

Original language	English
Pages (from-to)	1424-1429
Number of pages	6
Journal	Procedia CIRP
Volume	104
DOIs	https://doi.org/10.1016/j.procir.2021.11.240
Publication status	Published - 2021
Event	54th CIRP Conference on Manufacturing Ssystems, CMS 2021 - Patras, Greece Duration: 22 Sept 2021 → 24 Sept 2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure

Keywords

IoT
SMEs
decision making support
life cycle cost

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10.1016/j.procir.2021.11.240

Cite this

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title = "A life cycle cost analysis method accelerating IoT implementation in SMEs",

abstract = "The implementation of Internet of Things (IoT) technology in the manufacturing industry is continuing to grow, as shown by the extensive research, development, and standardization regarding IoT technology. However, a deficiency of IoT-related knowledge and experience is still a serious barrier to decision-making in IoT implementation, especially in small and medium enterprises (SMEs). This study develops a method to clarify the impact of IoT implementation on life cycle costs to support decision-making of IoT implementation in SMEs. The results demonstrated that the proposed method can foster an understanding of the economic impacts of the IoT implementation through the calculation of return on investment.",

keywords = "IoT, SMEs, decision making support, life cycle cost",

author = "Yuya Mitake and Yusuke Tsutsui and Salman Alfarihi and Mar'Atus Sholihah and Yoshiki Shimomura",

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doi = "10.1016/j.procir.2021.11.240",

language = "English",

volume = "104",

pages = "1424--1429",

journal = "Procedia CIRP",

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TY - JOUR

T1 - A life cycle cost analysis method accelerating IoT implementation in SMEs

AU - Mitake, Yuya

AU - Tsutsui, Yusuke

AU - Alfarihi, Salman

AU - Sholihah, Mar'Atus

AU - Shimomura, Yoshiki

PY - 2021

Y1 - 2021

N2 - The implementation of Internet of Things (IoT) technology in the manufacturing industry is continuing to grow, as shown by the extensive research, development, and standardization regarding IoT technology. However, a deficiency of IoT-related knowledge and experience is still a serious barrier to decision-making in IoT implementation, especially in small and medium enterprises (SMEs). This study develops a method to clarify the impact of IoT implementation on life cycle costs to support decision-making of IoT implementation in SMEs. The results demonstrated that the proposed method can foster an understanding of the economic impacts of the IoT implementation through the calculation of return on investment.

AB - The implementation of Internet of Things (IoT) technology in the manufacturing industry is continuing to grow, as shown by the extensive research, development, and standardization regarding IoT technology. However, a deficiency of IoT-related knowledge and experience is still a serious barrier to decision-making in IoT implementation, especially in small and medium enterprises (SMEs). This study develops a method to clarify the impact of IoT implementation on life cycle costs to support decision-making of IoT implementation in SMEs. The results demonstrated that the proposed method can foster an understanding of the economic impacts of the IoT implementation through the calculation of return on investment.

KW - IoT

KW - SMEs

KW - decision making support

KW - life cycle cost

UR - https://www.scopus.com/pages/publications/85121572895

U2 - 10.1016/j.procir.2021.11.240

DO - 10.1016/j.procir.2021.11.240

M3 - Conference article

AN - SCOPUS:85121572895

SN - 2212-8271

VL - 104

SP - 1424

EP - 1429

JO - Procedia CIRP

JF - Procedia CIRP

T2 - 54th CIRP Conference on Manufacturing Ssystems, CMS 2021

Y2 - 22 September 2021 through 24 September 2021

ER -

A life cycle cost analysis method accelerating IoT implementation in SMEs

Abstract

UN SDGs

Keywords

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