Implementation Barrier of Industry 4.0 in Ethiopian Manufacturing Industry: A Literature Review

  • Ravindra Pathak Associate Professor,
  • Sunil K Somani, Prof Professor, Department of Mechanical Engineering, Medi-Caps University, Indore, India
Keywords: Industry 4.0, Barriers of Implementation, Developing Economy, Ethiopia

Abstract

Industry 4.0 is opportunity for new job creation and industrial
automation not only for developed counties as well as in developing
and underdeveloped countries. The basic prerequisite of Industry 4.0
is information methodology infrastructure, strong and supportive
government policies and technical skill development for advancement
of industrial sector into the digital revolution.
The main aim of this literature review to examine and identify the
barriers for implementation and applicability of industry 4.0 revolution
in Ethiopian manufacturing Industries and to provide suggestive
proposal about the incapacitating from these barriers to successful
implementation of Industry 4.0 in Ethiopia.
Industry 4.0 has the huge capabilities and strong potential for the
accelerate transformation in the fastest growing economy of Africa.
In Ethiopia Despite is still no definite planning and awareness of the
implementation and awareness of industry 4.0.But for development
and advancement, it is vital for the manufacturing sector in Ethiopia
to examine and identify the implementation barriers of Industry 4.0
and find out the possible solutions for barriers so that it can be easily
implemented in Ethiopia and can be provide guidelines for policy maker.
There are lots of contests regarding Industry 4.0 in the Industrial sector
of Ethiopia. The theory of Industry 4.0 for the Ethiopia is new and not
very well established in related literature and practices and this is the
main motivation for this article. But for future competitiveness and
survival, the concept of Industry 4.0 may be mandatory for Ethiopian
companies for better operational performance and enhance productivity
according to the competitiveness of global market.
This study will help to the industry practitioners and government of
Ethiopia to understand the key execution barriers of Industry 4.0. Most of
the available literature related with the Operation problems connected
with developed countries but none have specifically attempted to
investigate the encounters to the execution of Industry 4.0 in the
developing countries like Ethiopia.

Author Biography

Ravindra Pathak, Associate Professor,

Department of Mechanical Engineering, Medi-Caps University, Indore, India.

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practical use In: Bavernhansl, T., M. ten Hompel and
B Vogel-Heuser, eds 2014. Industry 4.0 in production,
automation and logistics application. Technologies and
Migration 2014; 57-84
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Industries. Boston Consulting Group 2016.
35. Lu Y. Industry 4.0: A survey on technologies, applications
and open research issues. Journal of Industrial
Information Integration 2017; 6: 1-10.
36. LI D, y Zhang C. Excecution smart factory of industrie
4.0: An outlook. International Journal of Distributed
Sensor Networks 2016; 1-10.
37. Bloom N, Sadun R, Reenen VJV. Americans do I.T.
better: US multinationals and the productivity miracle.
American Economic Review, 2012: 102: 167-201.
38. Chryssolouris G, Mavrikios D, Papakostas N et al. Digital
manufacturing: history, perspectives, and Outlook.
Proc. IMech. E. 2009; 223(5): 451-462
39. Charu, Chy, Sameer K. Supply chain management in
theory and practice: a passing fad or a fundamentaln
change. Industrial Management & Data Systems 2000;
100(3): 100-114.
40. Porter My, Millar V. How information gives you
competitive advantage. Harvard Business Review,
1985; 63(4): 149-161.
41. Krishnakumar K. Intelligent systems for aerospace
engineering – An overview. NASA Technical Report
2003. Document ID: 2003010574
42. Zhengxia Wy, Laisheng X. Modern logistics monitoringin Ethiopia: Status, challenges and opportunities.
Global Advanced Research Journal of Food Science
and Methodology 2013; 2(4): 54-59.
14. Peter M, Lamin B. Ethiopia’s economic growth
performance: current situation and challenges. The
African Development Bank Group Chief Economist
Complex 2010; 1(5): 1-5.
15. Henok A, Derk B, Dan C. Ethiopia’s investment prospects:
A sectoral overview. African Review of Economics and
Finance 2013; 4(2): 203- 246.
16. CSA (Central Statistical Agency) Report on the 2nd
quarter of the 2016 manufacturing business survey.
Addis Ababa, Ethiopia 2016.
17. Teshome A. Impact of manufacturing sector on
Economic growth in Ethiopia: A Kaldorian Approach.
Journal of Business Economics and Management
Science 2014; 1(1): 1-8.
18. Rama MR, Simon ZT. Performance measurement of
manufacturing industries in Ethiopia-An analytical
study. Journal of Poverty, Investment and Development
2015; 7.
19. Yaw A, Margaret, Mcmillilan, Jone P et al. Promoting
manufacturing in Africa. Supporting Economic
Transformation. African Transformation Forum, Kigali,
Rwanda 2016.
20. Neil B, Stephen G, Jane K et al. Developing exportbased manufacturing in Sub-saharan Africa. Supporting
Economic Transformation 2016.
21. DAB Development Research and Training PLC. An
overview of Ethiopian manufacturing sector. Addis
Ababa Chamber of Commerce and Sectoral Association,
Addis Ababa, Ethiopia 2015.
22. Tadele F, Shiferaw K. Economic growth and employment
patterns, dominant sector, and firm profiles in
Ethiopia: Opportunities, challenges and prospects.
Swiss Programme for Research on Global Issues for
Development, R4D working paper 2015.
23. Ning H, Liu H. Cyber-physical- social-thinking space
based science and methodology framework for the
Internet of things. Science China Information Sciences
2015; 58, 1-19.
24. Hermann M, Pentek Ty, OttoB. Design principles for
Industrie 4.0 scenarios 49th Hawaii International
Conference on System Sciences (HICSS), IEEE 2016;
3928-3937.
25. Riedl M, Zipper H, Meier M et al. Cyber-physical systems
alter automation architectures. Annual Reviews in
Control 2014; 38(1): 123-133.
26. Zhang W, Zhang Ly, Cai H. Formal Specification of Cyber
Physical Systems: Case Studies Based on Hybrid Relation
Calculus Multimedia and Ubiquitous Engineering.
Lecture Notes in Electrical Engenieering 2014; 308,
45-51.
27. Frazzon E, Hartmann J, Makuschewitz Ty et al. Towards
socio-cyber- physical systems in production networks.
In Proceedings of the 46th CIRP Conference on
Manufacturing Systems 2013; 49-54.
28. Almada L. The Industry 4.0 revolution and the future
of Manufacturing Execution Systems (MES). Journal
of Innovation Management, JIM 2016; 3(4): 16-21.
29. Christopher My, Holweg M. Supply Chain 2.0: managing
supply chains in the era of turbulence. International
Journal of Physical Distribution & Logistics Management,
2011; 41(1): 63-82.
30. Schlechtendahl J, Keinert M, Kretschmer F et al. Making
existing production systems Industry 4.0-ready. Prod.
Eng. Res. Devel. 2015; 9: 143-148.
31. Plattform Industrie 4.0 . Plattform Industrie 4.0, 2014:
Industrie 4.0. Whitepaper FuEThemen. Retrieved
from http:// www.plattformi40.de/sites/default/files/
Whitepaper_Forschung%20Stand%203.%20 April%20
2014_0.pdf.
32. Blanchet M, Rinn T, Thaden G et al. Industry 4.0. The
new industrial revolution. How Europe will succeed.
Hg V Roland Berg. Strategy Consult. GmbH Münch.
33. Schlick J, Stephan P, Loskill My et al. Industry 4.0 in
practical use In: Bavernhansl, T., M. ten Hompel and
B Vogel-Heuser, eds 2014. Industry 4.0 in production,
automation and logistics application. Technologies and
Migration 2014; 57-84
34. Rüßmann M, Lorenz M, Gerbert P et al. Industry 4.0: The
Future of Productivity and Growth in Manufacturing
Industries. Boston Consulting Group 2016.
35. Lu Y. Industry 4.0: A survey on technologies, applications
and open research issues. Journal of Industrial
Information Integration 2017; 6: 1-10.
36. LI D, y Zhang C. Excecution smart factory of industrie
4.0: An outlook. International Journal of Distributed
Sensor Networks 2016; 1-10.
37. Bloom N, Sadun R, Reenen VJV. Americans do I.T.
better: US multinationals and the productivity miracle.
American Economic Review, 2012: 102: 167-201.
38. Chryssolouris G, Mavrikios D, Papakostas N et al. Digital
manufacturing: history, perspectives, and Outlook.
Proc. IMech. E. 2009; 223(5): 451-462
39. Charu, Chy, Sameer K. Supply chain management in
theory and practice: a passing fad or a fundamentaln
change. Industrial Management & Data Systems 2000;
100(3): 100-114.
40. Porter My, Millar V. How information gives you
competitive advantage. Harvard Business Review,
1985; 63(4): 149-161.
41. Krishnakumar K. Intelligent systems for aerospace
engineering – An overview. NASA Technical Report
2003. Document ID: 2003010574
42. Zhengxia Wy, Laisheng X. Modern logistics monitoringin Ethiopia: Status, challenges and opportunities.
Global Advanced Research Journal of Food Science
and Methodology 2013; 2(4): 54-59.
14. Peter M, Lamin B. Ethiopia’s economic growth
performance: current situation and challenges. The
African Development Bank Group Chief Economist
Complex 2010; 1(5): 1-5.
15. Henok A, Derk B, Dan C. Ethiopia’s investment prospects:
A sectoral overview. African Review of Economics and
Finance 2013; 4(2): 203- 246.
16. CSA (Central Statistical Agency) Report on the 2nd
quarter of the 2016 manufacturing business survey.
Addis Ababa, Ethiopia 2016.
17. Teshome A. Impact of manufacturing sector on
Economic growth in Ethiopia: A Kaldorian Approach.
Journal of Business Economics and Management
Science 2014; 1(1): 1-8.
18. Rama MR, Simon ZT. Performance measurement of
manufacturing industries in Ethiopia-An analytical
study. Journal of Poverty, Investment and Development
2015; 7.
19. Yaw A, Margaret, Mcmillilan, Jone P et al. Promoting
manufacturing in Africa. Supporting Economic
Transformation. African Transformation Forum, Kigali,
Rwanda 2016.
20. Neil B, Stephen G, Jane K et al. Developing exportbased manufacturing in Sub-saharan Africa. Supporting
Economic Transformation 2016.
21. DAB Development Research and Training PLC. An
overview of Ethiopian manufacturing sector. Addis
Ababa Chamber of Commerce and Sectoral Association,
Addis Ababa, Ethiopia 2015.
22. Tadele F, Shiferaw K. Economic growth and employment
patterns, dominant sector, and firm profiles in
Ethiopia: Opportunities, challenges and prospects.
Swiss Programme for Research on Global Issues for
Development, R4D working paper 2015.
23. Ning H, Liu H. Cyber-physical- social-thinking space
based science and methodology framework for the
Internet of things. Science China Information Sciences
2015; 58, 1-19.
24. Hermann M, Pentek Ty, OttoB. Design principles for
Industrie 4.0 scenarios 49th Hawaii International
Conference on System Sciences (HICSS), IEEE 2016;
3928-3937.
25. Riedl M, Zipper H, Meier M et al. Cyber-physical systems
alter automation architectures. Annual Reviews in
Control 2014; 38(1): 123-133.
26. Zhang W, Zhang Ly, Cai H. Formal Specification of Cyber
Physical Systems: Case Studies Based on Hybrid Relation
Calculus Multimedia and Ubiquitous Engineering.
Lecture Notes in Electrical Engenieering 2014; 308,
45-51.
27. Frazzon E, Hartmann J, Makuschewitz Ty et al. Towards
socio-cyber- physical systems in production networks.
In Proceedings of the 46th CIRP Conference on
Manufacturing Systems 2013; 49-54.
28. Almada L. The Industry 4.0 revolution and the future
of Manufacturing Execution Systems (MES). Journal
of Innovation Management, JIM 2016; 3(4): 16-21.
29. Christopher My, Holweg M. Supply Chain 2.0: managing
supply chains in the era of turbulence. International
Journal of Physical Distribution & Logistics Management,
2011; 41(1): 63-82.
30. Schlechtendahl J, Keinert M, Kretschmer F et al. Making
existing production systems Industry 4.0-ready. Prod.
Eng. Res. Devel. 2015; 9: 143-148.
31. Plattform Industrie 4.0 . Plattform Industrie 4.0, 2014:
Industrie 4.0. Whitepaper FuEThemen. Retrieved
from http:// www.plattformi40.de/sites/default/files/
Whitepaper_Forschung%20Stand%203.%20 April%20
2014_0.pdf.
32. Blanchet M, Rinn T, Thaden G et al. Industry 4.0. The
new industrial revolution. How Europe will succeed.
Hg V Roland Berg. Strategy Consult. GmbH Münch.
33. Schlick J, Stephan P, Loskill My et al. Industry 4.0 in
practical use In: Bavernhansl, T., M. ten Hompel and
B Vogel-Heuser, eds 2014. Industry 4.0 in production,
automation and logistics application. Technologies and
Migration 2014; 57-84
34. Rüßmann M, Lorenz M, Gerbert P et al. Industry 4.0: The
Future of Productivity and Growth in Manufacturing
Industries. Boston Consulting Group 2016.
35. Lu Y. Industry 4.0: A survey on technologies, applications
and open research issues. Journal of Industrial
Information Integration 2017; 6: 1-10.
36. LI D, y Zhang C. Excecution smart factory of industrie
4.0: An outlook. International Journal of Distributed
Sensor Networks 2016; 1-10.
37. Bloom N, Sadun R, Reenen VJV. Americans do I.T.
better: US multinationals and the productivity miracle.
American Economic Review, 2012: 102: 167-201.
38. Chryssolouris G, Mavrikios D, Papakostas N et al. Digital
manufacturing: history, perspectives, and Outlook.
Proc. IMech. E. 2009; 223(5): 451-462
39. Charu, Chy, Sameer K. Supply chain management in
theory and practice: a passing fad or a fundamentaln
change. Industrial Management & Data Systems 2000;
100(3): 100-114.
40. Porter My, Millar V. How information gives you
competitive advantage. Harvard Business Review,
1985; 63(4): 149-161.
41. Krishnakumar K. Intelligent systems for aerospace
engineering – An overview. NASA Technical Report
2003. Document ID: 2003010574
42. Zhengxia Wy, Laisheng X. Modern logistics monitoringin Ethiopia: Status, challenges and opportunities.
Global Advanced Research Journal of Food Science
and Methodology 2013; 2(4): 54-59.
14. Peter M, Lamin B. Ethiopia’s economic growth
performance: current situation and challenges. The
African Development Bank Group Chief Economist
Complex 2010; 1(5): 1-5.
15. Henok A, Derk B, Dan C. Ethiopia’s investment prospects:
A sectoral overview. African Review of Economics and
Finance 2013; 4(2): 203- 246.
16. CSA (Central Statistical Agency) Report on the 2nd
quarter of the 2016 manufacturing business survey.
Addis Ababa, Ethiopia 2016.
17. Teshome A. Impact of manufacturing sector on
Economic growth in Ethiopia: A Kaldorian Approach.
Journal of Business Economics and Management
Science 2014; 1(1): 1-8.
18. Rama MR, Simon ZT. Performance measurement of
manufacturing industries in Ethiopia-An analytical
study. Journal of Poverty, Investment and Development
2015; 7.
19. Yaw A, Margaret, Mcmillilan, Jone P et al. Promoting
manufacturing in Africa. Supporting Economic
Transformation. African Transformation Forum, Kigali,
Rwanda 2016.
20. Neil B, Stephen G, Jane K et al. Developing exportbased manufacturing in Sub-saharan Africa. Supporting
Economic Transformation 2016.
21. DAB Development Research and Training PLC. An
overview of Ethiopian manufacturing sector. Addis
Ababa Chamber of Commerce and Sectoral Association,
Addis Ababa, Ethiopia 2015.
22. Tadele F, Shiferaw K. Economic growth and employment
patterns, dominant sector, and firm profiles in
Ethiopia: Opportunities, challenges and prospects.
Swiss Programme for Research on Global Issues for
Development, R4D working paper 2015.
23. Ning H, Liu H. Cyber-physical- social-thinking space
based science and methodology framework for the
Internet of things. Science China Information Sciences
2015; 58, 1-19.
24. Hermann M, Pentek Ty, OttoB. Design principles for
Industrie 4.0 scenarios 49th Hawaii International
Conference on System Sciences (HICSS), IEEE 2016;
3928-3937.
25. Riedl M, Zipper H, Meier M et al. Cyber-physical systems
alter automation architectures. Annual Reviews in
Control 2014; 38(1): 123-133.
26. Zhang W, Zhang Ly, Cai H. Formal Specification of Cyber
Physical Systems: Case Studies Based on Hybrid Relation
Calculus Multimedia and Ubiquitous Engineering.
Lecture Notes in Electrical Engenieering 2014; 308,
45-51.
27. Frazzon E, Hartmann J, Makuschewitz Ty et al. Towards
socio-cyber- physical systems in production networks.
In Proceedings of the 46th CIRP Conference on
Manufacturing Systems 2013; 49-54.
28. Almada L. The Industry 4.0 revolution and the future
of Manufacturing Execution Systems (MES). Journal
of Innovation Management, JIM 2016; 3(4): 16-21.
29. Christopher My, Holweg M. Supply Chain 2.0: managing
supply chains in the era of turbulence. International
Journal of Physical Distribution & Logistics Management,
2011; 41(1): 63-82.
30. Schlechtendahl J, Keinert M, Kretschmer F et al. Making
existing production systems Industry 4.0-ready. Prod.
Eng. Res. Devel. 2015; 9: 143-148.
31. Plattform Industrie 4.0 . Plattform Industrie 4.0, 2014:
Industrie 4.0. Whitepaper FuEThemen. Retrieved
from http:// www.plattformi40.de/sites/default/files/
Whitepaper_Forschung%20Stand%203.%20 April%20
2014_0.pdf.
32. Blanchet M, Rinn T, Thaden G et al. Industry 4.0. The
new industrial revolution. How Europe will succeed.
Hg V Roland Berg. Strategy Consult. GmbH Münch.
33. Schlick J, Stephan P, Loskill My et al. Industry 4.0 in
practical use In: Bavernhansl, T., M. ten Hompel and
B Vogel-Heuser, eds 2014. Industry 4.0 in production,
automation and logistics application. Technologies and
Migration 2014; 57-84
34. Rüßmann M, Lorenz M, Gerbert P et al. Industry 4.0: The
Future of Productivity and Growth in Manufacturing
Industries. Boston Consulting Group 2016.
35. Lu Y. Industry 4.0: A survey on technologies, applications
and open research issues. Journal of Industrial
Information Integration 2017; 6: 1-10.
36. LI D, y Zhang C. Excecution smart factory of industrie
4.0: An outlook. International Journal of Distributed
Sensor Networks 2016; 1-10.
37. Bloom N, Sadun R, Reenen VJV. Americans do I.T.
better: US multinationals and the productivity miracle.
American Economic Review, 2012: 102: 167-201.
38. Chryssolouris G, Mavrikios D, Papakostas N et al. Digital
manufacturing: history, perspectives, and Outlook.
Proc. IMech. E. 2009; 223(5): 451-462
39. Charu, Chy, Sameer K. Supply chain management in
theory and practice: a passing fad or a fundamentaln
change. Industrial Management & Data Systems 2000;
100(3): 100-114.
40. Porter My, Millar V. How information gives you
competitive advantage. Harvard Business Review,
1985; 63(4): 149-161.
41. Krishnakumar K. Intelligent systems for aerospace
engineering – An overview. NASA Technical Report
2003. Document ID: 2003010574
Published
2020-07-04