SPECIFICS OF IMPLEMENTING SMART MANUFACTURING IN INDUSTRIAL SMALL AND MEDIUM-SIZED ENTERPRISES: BENEFITS AND LIMITATIONS
Keywords:
smart production, small and medium enterprises, industrial Internet of things, artificial intelligence, blockchain technology, automation, production, data processing.Abstract
Hryshko N.Ye, Solodkov D.Ye, Hryshko V.M. SPECIFICS OF IMPLEMENTING SMART MANUFACTURING IN INDUSTRIAL SMALL AND MEDIUM-SIZED ENTERPRISES: BENEFITS AND LIMITATIONS
Purpose. The aim of the article is to determine the mechanisms for solving the technological and technical limitations of data management during the automation of the production process at industrial enterprises, as well as the economic advantages and limitations created by the introduction of smart production at small and medium-sized industrial enterprises.
Methodology of research. The theoretical and methodological basis of the research is the scientific works of leading scientists and practicing entrepreneurs regarding the features and technology of implementing smart production at industrial enterprises. The following general scientific methods were used in the research process: comparison – to study the approaches of the largest producing countries to the management and stimulation of the development of smart production; analysis and synthesis – to analyse the state of implementation of smart production at small and medium-sized industrial enterprises; abstract and logical – for expressing own assumptions and formulating conclusions, graphic – for visual illustration of the conceptual model of optimization of software and hardware of SMEs for data processing of enterprises.
Findings. It has been established that the leading technologies forming the system of smart production - the industrial Internet of Things, neural networks based on artificial intelligence and blockchain technology – solve the following technological limitations that existed under the centralized server infrastructure: infrastructure overload due to the increase in the consumption of computing resources (solved as a result of optimization the speed of transaction accounting due to the introduction of artificial neural networks based on artificial intelligence); problems of stakeholder authentication and platform compatibility (solved as a result of automating registration of participants, transactions and as a result of automating the execution of transactions due to smart contracts within the framework of open blockchain technology); insufficient integrity and confidentiality of the data register as a result of compatibility and authentication problems (solved due to the technology of distributed accounting of transactions (blockchain), which allows to avoid falsification of data). It was found that the main economic advantage as a result of the implementation of the mentioned technologies within the framework of the smart production system is the possibility of mass customization of production at the level or almost at the level of the costs of standard mass production. It is specified that these technologies are appropriate for implementation by high-tech industrial enterprises producing products with high added value.
Originality. The theoretical aspects of establishing direct and indirect economic benefits from the implementation of a smart production system at industrial small and medium-sized enterprises, approaches to optimizing production in the direction of product customization have gained further development.
Practical value. Formulated approaches and recommendations for solving problems related to data processing during the automation of the production process - as a set of technological limitations, as well as an approach for solving technological limitations for the manufacture of customized products can be used at innovation-oriented industrial enterprises, in particular, medium and small ones.
Key words: smart production, small and medium enterprises, industrial Internet of things, artificial intelligence, blockchain technology, automation, production, data processing.References
Khan, A.A., Laghari, A.A., Li, P., Dootio, M.A. and Karim, S. (2023), “The collaborative role of blockchain, artificial intelligence, and industrial internet of things in digitalization of small and medium-size enterprises”, Sci Rep 13, 1656, DOI: https://doi.org/10.1038/s41598-023-28707-9
Rakshit, S. and Islam, N. (2022), “Influence of blockchain technology in SME internationalization: Evidence from high-tech SMEs in India”, ScienceDirect, Vol. 115. 102518, available at: https://www.sciencedirect.com/ science/article/pii/S0166497222000657?via=ihub (access date February 1, 2024).
Justice, Akpan I., Paul, Udoh E.A. and Adebisi, B. (2022), “Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic”, Journal of Small Business & Entrepreneurship, Vol. 34, no. 2, available at: https://www.tandfonline.com/doi/full/10.1080/08276331.2020.1820185?scroll= top&needAccess=true. (access date February 1, 2024).
Zhai, Peng, Jingsha, He, and Nafei, Zhu (2022), “Blockchain-Based Internet of Things Access Control Technology in Intelligent Manufacturing”, Applied Sciences, Volume 12, no. 7: 3692. DOI: https://doi.org/10.3390/app12073692
Smart Manufacturing Market 2023-2032. Precedence Research: web site. available at: https://www.precedenceresearch.com/smart-manufacturing-market. (access date February 11, 2024).
Ocident, Bongomin, Aregawi, Yemane, Brendah, Kembabazi, Clement, Malanda, Mwewa Chikonkolo Mwape, Nonsikelelo Sheron Mpofu and Dan Tigalana (2020), “Industry 4.0 Disruption and Its Neologisms in Major Industrial Sectors: A State of the Art”, Journal of Engineering, Vol. 2020, Article ID 8090521, DOI: https://doi.org/10.1155/2020/8090521
Corporate Finance Institute (2024), “Mass Customization: The use of standardization and scale economies to deliver wide-market goods and services tailored to suit specific customer’s requirements”, available at: URL: https://corporatefinanceinstitute.com/resources/management/mass-customization/. (access date February 4, 2024).
Wall Street Mojo (2024), “What Is Mass Customization?”, available at: https://www.wallstreetmojo.com/mass-customization/ (access date February 4, 2024).
Skitsko, V.I. (2016), “Industry 4.0 as an Industrial Production of the Future”, Investytsii: praktyka ta dosvid, no 5, pp. 33-40, available at: http://nbuv.gov.ua/UJRN/ipd_2016_5_8. (access date February 6, 2024).
Issues in Science and Technology (2024), “Who Will Set the Rules for Smart Factories?”, available at: https://issues.org/who-will-set-the-rules-for-smart-factories/ (access date February 12, 2024).
The Verkhovna Rada of Ukraine (2017), The Law of Ukraine on the basic principles of ensuring cyber security of Ukraine № 2163-VIII, Vidomosti Verkhovnoi Rady Ukrainy, no. 45, Article 403.
Cabinet of Ministers of Ukraine (2020), Order of the Cabinet of Ministers of Ukraine “On the Approval of the Concept of the Development of Artificial Intelligence in Ukraine” dated 02.12.2020 No. 1556-p., available at: https://zakon.rada.gov.ua/laws/show/1556-2020-%D1%80#Text (access date February 12, 2024).
Ministry of Education and Science of Ukraine (2020), Horizon 2020, available at: https://mon.gov.ua/ua/nauka/yevrointegraciya/ramkovi-programi-z-doslidzhen-ta-innovacij-gorizont-2020-ta-gorizont-yevropa-ta-iniciativi-yevropejskoyi-komisiyi-yevropejskij-zelenij-kurs/gorizont-2020 (access date February 19, 2024).
Diia.Business (2020), “EU program “Horizon Europe” 2021-2027”, available at: https://business.diia.gov.ua/horizon-europe (access date February 12, 2024).
Research and innovation (2022), “Ukraine’s association agreement to Horizon Europe and Euratom Research and Training Programmes enters into force”, available at: https://research-and-innovation.ec.europa.eu/news/all-research-and-innovation-news/ukraines-association-agreement-horizon-europe-and-euratom-research-and-training-programmes-enters-2022-06-09_en (access date February 12, 2024).
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
