**7. Value analysis**

The sustainable value analysis tool (SVAT) [80] is applied to each of the production systems to confirm the results of the hierarchies. The purpose of SVAT is to analyse multiple forms of value across the entire life cycle through the dimensions of economic, social and environmental sustainability. SVAT may be implemented in four steps:

**75**

**Table 4.**

*A Sustainability Assessment of Smart Innovations for Mass Production, Mass Customisation…*

4.Analysis of value uncaptured and exploration of value opportunities.

For the first step, a modular product is assumed. At the beginning of life, this modular product may be mass produced, mass customised or be the output of DDM in a business context. The use phase at the middle of life is assumed to be the same for all production processes. The modular product is also assumed to be fit for disassembly into modules for end of life treatment such as remanufacture, refur-

**Tables 4**–**6** describe value captured and value uncaptured for each production

The value opportunity for each production system may be associated with an Industry 4.0 innovation. Value opportunities are identified through new activities and relationships. Each identified value uncaptured may be analysed to find its source. Reducing value uncaptured through potential solutions leads to value

The value opportunities for mass production include incorporating 'pull' into the production system, finding an activity or relationship to utilise overproduction, entering into relationships to better enable product recovery as well as improving

**Middle of life (MOL) End of life** 

Unsatisfied needs leading to waste Increased

Economies of scale for distribution and retail, standard service and maintenance

Understanding of consumer,

product use data

number of consumers

Lack of customization/ personalization

Overproduction Potential satisfaction of a large

**(EOL)**

Uniform treatment

capacity required due to waste from MOL

Information about product location

Product availability in large quantities

Product recovery not enabled – reliance on third parties

*DOI: http://dx.doi.org/10.5772/intechopen.88897*

1.Product life cycle definition;

2.Description of value captured;

bishment or recycling.

opportunities.

Value uncaptured

system based on the literature.

**Mass production Beginning of** 

Value captured Economies of

Value destroyed

Value missed

Value surplus

Value absence

*SVAT analysis for mass production.*

**life (BOL)**

Large throughput leading to more pollution

Push production, inflexible product and process design

Labour shortages, stoppages and breakdowns, high risk in tangible asset investment

scale, standard product and process design

3.Identification of value uncaptured; and

*A Sustainability Assessment of Smart Innovations for Mass Production, Mass Customisation… DOI: http://dx.doi.org/10.5772/intechopen.88897*

1.Product life cycle definition;

*Mass Production Processes*

**Method of production Financial** 

Across products

*Hierarchy levels for mass production, mass customization and DDM.*

No modularity across products

Household Return on

Corporate Working

Mass customization Modularity

**74**

hierarchies.

**Table 3.**

**Method of production**

**Table 2.**

Direct digital manufacturing (DDM)

Mass customization

Direct digital manufacturing (DDM)

**7. Value analysis**

review of mass production, mass customization and DDM, **Table 2** indicates the corresponding level of most impact for each of these production systems in the

**Industry 4.0 innovation/technical development Financial need Environmental** 

**needs hierarchy**

Mass production Discrete Tangible assets Waste Stable workforce

Intangible assets

Intangible assets

investment (ROI)

capital

**need**

Production based on a pull principle

M2M (resource efficiency)

Augmented reality

**Social need**

Eco-design Adaptable

Eco-design Adaptable

**Environmental needs hierarchy**

Process Tangible assets Waste Skilled workforce

Resource efficiency

Material efficiency **Social needs hierarchy**

Collaborative workforce

Collaborative workforce

workforce

workforce

Cobots (discrete)/ augmented reality (process)

Localised sourcing of

Mobile devices

material

Using **Table 2** of the needs with the most impact on the method of production, it is now possible to use the descriptions of the Industry 4.0 innovations and match them to these needs to indicate where the greatest sustainability benefit may be

The sustainable value analysis tool (SVAT) [80] is applied to each of the production systems to confirm the results of the hierarchies. The purpose of SVAT is to analyse multiple forms of value across the entire life cycle through the dimensions of economic, social and environmental sustainability. SVAT may be implemented in four steps:

**6.2 Integrating manufacturer needs with industry 4.0 innovations**

achieved. The result is shown in **Table 3**.

Mass production Condition monitoring/

codes

*Matching industry 4.0 innovations to methods of production.*

predictive maintenance

Intelligent resource management connecting machine and plant for mass DDM (corporate)

RFID, NFC technology/QR

2.Description of value captured;

3.Identification of value uncaptured; and

4.Analysis of value uncaptured and exploration of value opportunities.

For the first step, a modular product is assumed. At the beginning of life, this modular product may be mass produced, mass customised or be the output of DDM in a business context. The use phase at the middle of life is assumed to be the same for all production processes. The modular product is also assumed to be fit for disassembly into modules for end of life treatment such as remanufacture, refurbishment or recycling.

**Tables 4**–**6** describe value captured and value uncaptured for each production system based on the literature.

The value opportunity for each production system may be associated with an Industry 4.0 innovation. Value opportunities are identified through new activities and relationships. Each identified value uncaptured may be analysed to find its source. Reducing value uncaptured through potential solutions leads to value opportunities.


The value opportunities for mass production include incorporating 'pull' into the production system, finding an activity or relationship to utilise overproduction, entering into relationships to better enable product recovery as well as improving

#### **Table 4.** *SVAT analysis for mass production.*


#### **Table 5.**

*SVAT analysis for mass customization.*


**77**

**Author details**

Hana Trollman1

\* and Frank Trollman2

1 Loughborough University, Loughborough, United Kingdom

\*Address all correspondence to: h.trollman2@lboro.ac.uk

provided the original work is properly cited.

2 University Hospitals of Leicester NHS Trust, Leicester, United Kingdom

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

*A Sustainability Assessment of Smart Innovations for Mass Production, Mass Customisation…*

product design to reduce use phase impacts. Reducing labour shortages and lower

The value opportunities for mass customization include improving resource efficiency, entering into relationships to fully utilise product distribution and collection, and the provision of suitable information to those engaged in end of life

The value opportunities for DDM centre on relationships with designers for improvements at all life cycle stages. New relationships should be developed for

The main contribution of this chapter is the assessment of smart production innovations related to Industry 4.0 to determine the most beneficial for mass production, mass customization and direct digital manufacturing, respectively, taking

SVAT yields the same conclusions, although less refined, as the manufacturer

Manufacturers should consider their strategic sustainability needs based on

into consideration the three dimensions of sustainability (**Table 3**).

their production system when selecting smart production innovations.

needs hierarchies in respect of Industry 4.0 innovation selection.

risk related to the high tangible asset investment would also be a target.

*DOI: http://dx.doi.org/10.5772/intechopen.88897*

both supply chain and reverse logistics.

treatment of products.

**8. Conclusion**

**Table 6.** *SVAT analysis for DDM.*

#### *A Sustainability Assessment of Smart Innovations for Mass Production, Mass Customisation… DOI: http://dx.doi.org/10.5772/intechopen.88897*

product design to reduce use phase impacts. Reducing labour shortages and lower risk related to the high tangible asset investment would also be a target.

The value opportunities for mass customization include improving resource efficiency, entering into relationships to fully utilise product distribution and collection, and the provision of suitable information to those engaged in end of life treatment of products.

The value opportunities for DDM centre on relationships with designers for improvements at all life cycle stages. New relationships should be developed for both supply chain and reverse logistics.
