Smart factory adoption for a dairy factory in South Africa

Smart Factories are a key component of Industry 4.0 and have over the last few years become a relevant topic in manufacturing across all industries. The dairy industry is no different and many of the leading dairy manufacturers have adopted many Smart Factory components and technologies. These Smart Factory components and technologies have led to change in the workplace compared to the traditional way of manufacturing. With any organisational change, it is important to consider the impact that it has on the employees of the organisations and what their attitudes and perceptions towards these changes are. When understanding employees’ attitude and perceptions of changes or factors with regard to technological changes in the workplace, organisations can manage and improve the adoption of Smart Factory Adoption. There is limited research on Smart Factory adoption in the dairy manufacturing industry in South Africa. A conceptual model was proposed based on a literature study, identifying the main factors that influence the adoption of a Smart Dairy Factory. A hypothesised model was tested by conducting a research study with a sample of employees from different hierarchical levels in a dairy factory. The questionnaire was distributed to employees and management in the organisation. The results and insights obtained, determined the factors that influence the adoption of a Smart Dairy Factory in South Africa. This study identified that the independent factors of Individual Factors, Job Security, Perceived Benefits, Trust, Company Culture towards new innovations/technologies, Company Culture with employee involvement towards new innovation/technologies, Cost and Resources, Employee perceived value of Skills and Training and Organisational Skills and Training development all have a significant positive effect on Smart Dairy Adoption. The study further identified that the Job Level of employees have a significant effect on all of the factors influencing the Smart Dairy Adoption. This is a significant finding due to the fact that management, in general, is responsible for implementing Smart Factory technologies, whereas the general workforce are the ones accepting and being affected most by the change.Thesis (MBA) -- Faculty of Business and Economic Sciences, NMU Business School, 202