The Factors of Smart Factory Construction- Empirical Evidence from Korean Metal Working Firms

Abstract

The Smart Factory is being proposed as a challenge for the manufacturing industry in the 4th Industrial revolution. In the absence of empirical analysis of the status of smart factories, we try to analyze the factors of building a smart factory in the metalworking industry, which is the base of the manufacturing industry. As a result, the CEOs' intentions and firm size are the main factors for innovative and leading investment activities such as smart factories. Also, we find that the level of the smart factory is different according to the industrial characteristics as analyzing the factors of smart level into five working areas (Product Process Design, Operation Management, Quality Management, Equipment Management, and Procurement & Logistics). In analyzing factors of smart factory construction plan, the firm with high production manpower makes a plan on the low level of the smart plant. It shows that the negative aspects of smart factory construction are strong at the production site.