Toward Human-Centered Smart Production Systems : Evidence from Behavioral Experiments

More than ten years after the introduction of the concept of Industry 4.0, tremendous efficiency and resilience capabilities remain unharnessed. The human perspective in particular has been detached from development in smart production systems. The European Commission therefore introduced its vision of Industry 5.0 in 2021 to refine Industry 4.0 concept with human-centeredness, sustainability and resilience. Although research has demonstrated that several dynamic phenomena that diminish production performance, such as lead time syndrome (LTS) and the bullwhip effect, are attributable to biased human decision-making, most models in operations practice and theory still assume that human behavior is rational. This study is intended to fill this research gap by exploring the impact of cognitive biases on human-decision making in production planning and control. This study is one of the first based on empirical evidence from human behavioral experiments. Our findings clearly demonstrate that the cognitive biases active in various decision-making situations cause both experts and non-experts to deviate systematically from the rational optimum in their decision-making