How Lean and IR 4.0 Ready is your Company?

To meet changing customer demands in a highly competitive environment, the manufacturing industry must be agile, efficient, responsive, and cost-effective. It could be achieved through high levels of digitization and automation. The digital age is defined by rapid technological innovations, changing market needs, and disruptions. Any company that wants to survive must be ready to adapt to this new digital landscape challenge. Digital transformation is a long journey; 70% of companies fail when doing the transformation. This paper aims to present measuring readiness for digital transformation for a company that has implemented Lean approach. Lean and digital transformation share similar aims; thus, they could be applied together to achieve better business performance. Lean 4.0 Assessment tools have been proposed as novel tools to measure both the level of lean implementation and readiness level of Industry 4.0. A chemical manufacturer is selected for the study case. The result shows that this manufacturer is at an intermediate level of implementing Lean 4.0, which means there are still many areas to be improved. Some recommendations are suggested to improve readiness levels specific to the case company. Therefore, further study is conducted to formulate more comprehensive recommendations that could cover different manufacturers.