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The Fourth Industrial Revolution or Industry 4.0 is extremely relevant and important in manufacturing for several reasons. Failing to adopt the technology of the Fourth Industrial Revolution can cause organizations to fall behind, as their operations are not digitized enough in benchmarking competitors. A major industry as bicycle manufacturing needs to be transformed into a digital factory in order to keep up with the evolving technology. The objectives of this research are in designing a 3D digital mock up and Augmented Reality (AR) for bicycle frame production in the form of digital factory for increasing production capability by decreasing the break-even point whilst avoiding Covid-19 contraction using Tecnomatix Plant Simulation and Unity 3D programs. This research constructed three alternative digital factory layouts that are designed by using a 3D simulation program. The risk of Covid-19 contraction points and the three layouts of cost per unit are analyzed. The results show that the break-even point of the first to the third layouts with Automated Guided Vehicle (AGV) are 26,580, 26,322 and 25,354 units respectively. The result of the risk about Covid-19 contraction points from the first to the third layout with AGV are 21,272, 2,872 and 0 points respectively. This means the most appropriate layout for bicycle frame production is the third layout due to the best break-even point that can significantly avoid Covid-19 contraction. The benefit of this research is to integrate a 3D digital mock up, AR and Cobot including AGV to assist the resilience of operations with a dynamic industrial environment.
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