Key Performance Indicators and Industry 4.0 – A structured framework for monitoring the implementation of digital technologies

Concerns regarding digital transformation have forced manufacturing organizations to rethink their operations and processes to gain a competitive advantage. For several companies, the design and implementation of indicators are deemed crucial for better management and control of emerging concepts and ideas regarding digital technologies. Despite the quick shift towards digital transformation has captured the attention of both the industry and academia, very few efforts have been made to streamline useful indicators able to monitor the implementation of Industry 4.0 (I4.0) technologies. Owing to these considerations, this paper attempts (i) to design and implement several Key Performance Indicators able to monitor the evolution of core processes that will benefit from the I4.0 technologies, and (ii) to provide an easy-to-use approach that can be implemented in practice to guide decision-makers in the diffusion, adoption, and performance evaluation of I4.0 technologies. The effectiveness and practicality of the methodology are illustrated using a case study concerning an industrial project implemented in a leading international company in the power generation industry.