## 4 Methodology Design and Internal Logistics Level Evaluating Method
### Defining Levels for Evaluation and Characterisation Indicators
#### 4.2.1 Levels for Evaluation  
The theoretical foundations (CMMI model and Industry 4.0. readiness models for companies) for two important areas play an important role in determining the number and defining individual levels for evaluation using this methodology. These areas were the most inspiring for defining levels, and the levels of readiness were determined in a similar manner for our methodology.  
There are, therefore, a total of six levels for this methodology (five levels of readiness + zero level) which describe the maturity of the company depending on specific indicators. The levels are of an ascending nature. The methodology is designed so that companies can naturally develop the readiness of their internal logistics processes according to the levels. Levels are set to cover a company's readiness assessment as appropriately as possible. Therefore, as a compromise, they work with a certain set number and definition. Too small a number will not create an objective detailed evaluation, too large a number of levels, on the other hand, will create small variations between the levels and the evaluation becomes unnecessarily complicated. It would be difficult for company employees to answer questions, as the differences in the answers to questions would be minimal and could lead to wrong answers. A zero level is also included in the level design. The main idea for designing a zero level is not only to include it as the worst level, but the primary criterion is that the processes are not defined at all for this level. Furthermore, the levels are graded, the ascending principle is maintained with certain links between them. There are therefore six levels of readiness with the following summarised characteristics:  
* Level 0 Uncontrolled Processes not explicitly defined
* Level 1 Controlled Certified process management
* Level 2 Controlled Digitised data collection (from processes), implementation of automation
* Level 3 Controlled Data Source
* Level 4 Controlled Processes are automated, with limited human intervention
* Level 5 Controlled Processes are automated, manually checked only.  
More detailed descriptions of each level are provided in Appendix A--Description of the required levels for evaluation.  
Set levels and their definitions are designed so that the highest levels, i.e., level 4 and especially level 5, represent the highest readiness and correspond to Industry 4.0. principles. In particular, Level 5 is designed so that it fully fulfils the vision, mission and assumptions of Industry 4.0. That is, the company has not only partially applied technologies, which  
\begin{table}
\begin{tabular}{l l} \hline \hline
**Business Attribute** & **Assumption and Limitations** \\ \hline Type of production & Especially serial and large-scale production \\ Business size & Medium-sized enterprise and large enterprise \\ Industries & Automotive, engineering, electrical engineering \\ Level of logistics technologies & Without limits \\ Information ensuring logistic processes & Without limits \\ Representative of the company & Thorough knowledge of logistics processes \\ \hline \hline \end{tabular}
\end{table}
Table 6: Assumptions and limitations of the methodology for its practical application.  
can be in level 3 or level 4, but a comprehensive coverage of the entire internal logistics area.