Factors affecting customer retention at an automative manufacturing organisation
- Authors: Yam, Bonga Sherperd Elvis
- Date: 2013
- Subjects: Consumer satisfaction , Customer relations , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8809 , http://hdl.handle.net/10948/d1018573
- Description: South African vehicle manufacturers are under immense competition from vehicle manufactures from India and China. The global financial crises also put these organisations under intense pressure and this resulted in these organisations having to start seeing the need to focus on issues that affect customer retention. The way that business is done in the 21st Century is forcing organisations to implement strategies that are geared towards increasing customer retention and growing the business. Organisations need to build relationships with their customers with the hope that these customers will in turn extend their stay with the organisation when an opportunity to replace their vehicles arises or keep on servicing with them. In order to establish a good relationship with customers, organisations need to understand customer expectations by being customer orientated and by providing customers with value. The primary objective of this study is to improve customer retention for a selected vehicle manufacturer after the warranty and service plans have expired, by investigating the relationship between customer service quality, customer loyalty, and customer retention. The results obtained from the 64 respondents who participated in the survey revealed that although all the above-mentioned variables play a role in increasing customer retention, customer service quality exerts the most influence. The study also highlights areas that should be improved, as well as recommendations on how to improve them. Recommendations for future research are also provided.
- Full Text:
- Date Issued: 2013
- Authors: Yam, Bonga Sherperd Elvis
- Date: 2013
- Subjects: Consumer satisfaction , Customer relations , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8809 , http://hdl.handle.net/10948/d1018573
- Description: South African vehicle manufacturers are under immense competition from vehicle manufactures from India and China. The global financial crises also put these organisations under intense pressure and this resulted in these organisations having to start seeing the need to focus on issues that affect customer retention. The way that business is done in the 21st Century is forcing organisations to implement strategies that are geared towards increasing customer retention and growing the business. Organisations need to build relationships with their customers with the hope that these customers will in turn extend their stay with the organisation when an opportunity to replace their vehicles arises or keep on servicing with them. In order to establish a good relationship with customers, organisations need to understand customer expectations by being customer orientated and by providing customers with value. The primary objective of this study is to improve customer retention for a selected vehicle manufacturer after the warranty and service plans have expired, by investigating the relationship between customer service quality, customer loyalty, and customer retention. The results obtained from the 64 respondents who participated in the survey revealed that although all the above-mentioned variables play a role in increasing customer retention, customer service quality exerts the most influence. The study also highlights areas that should be improved, as well as recommendations on how to improve them. Recommendations for future research are also provided.
- Full Text:
- Date Issued: 2013
An analysis of the sustainability of the lean manufacturing implementation at Volkswagen Group South Africa
- Authors: Williams, Anand
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Lean manufacturing -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8901 , http://hdl.handle.net/10948/d1020992
- Description: This research report examines the changing nature of the organisation of work, in particular, the production methods in the South African automotive industry. The competition in the local and global markets has increased significantly in recent years. The increased complexity of products and individuality of customers pose strong challenges for the automotive manufacturers, (OEM – Original Equipment Manufacturers), with regard to product Quality, Cost and Delivery. For these challenges, Volkswagen Group South Africa, has defined objectives that, when met, will contribute towards establishing it as a leading automotive brand. It is aligned to the Volkswagen Group AG, Strategy Mach18, increased vehicle production and the creation of long-term delighted customer base. To achieve these objectives, the Volkswagen Production System (VPS) is an imperative component of the Volkswagen Group South Africa (VWGSA) production strategy. The core elements consist of, “Cycle”, “Flow”, “Pull” and “Perfection”. These are the four fundamentals on which Lean Manufacturing is built, as first introduced and described by the Toyota Production System. Lean manufacturing is a whole-systems approach that creates a culture in which everyone in the organisation continuously improves the process and production. Volkswagen Group South Africa is facing increased competition in the South African and global marketplace. A search of the internet revealed that extensive research has been conducted into Lean manufacturing in South Africa. However, no research is noted with regard to the sustainability of Lean manufacturing at Volkswagen Group South Africa. The aim of this study is to analyse the sustainability of the lean manufacturing implementation at VWGSA.
- Full Text:
- Date Issued: 2012
- Authors: Williams, Anand
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Lean manufacturing -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8901 , http://hdl.handle.net/10948/d1020992
- Description: This research report examines the changing nature of the organisation of work, in particular, the production methods in the South African automotive industry. The competition in the local and global markets has increased significantly in recent years. The increased complexity of products and individuality of customers pose strong challenges for the automotive manufacturers, (OEM – Original Equipment Manufacturers), with regard to product Quality, Cost and Delivery. For these challenges, Volkswagen Group South Africa, has defined objectives that, when met, will contribute towards establishing it as a leading automotive brand. It is aligned to the Volkswagen Group AG, Strategy Mach18, increased vehicle production and the creation of long-term delighted customer base. To achieve these objectives, the Volkswagen Production System (VPS) is an imperative component of the Volkswagen Group South Africa (VWGSA) production strategy. The core elements consist of, “Cycle”, “Flow”, “Pull” and “Perfection”. These are the four fundamentals on which Lean Manufacturing is built, as first introduced and described by the Toyota Production System. Lean manufacturing is a whole-systems approach that creates a culture in which everyone in the organisation continuously improves the process and production. Volkswagen Group South Africa is facing increased competition in the South African and global marketplace. A search of the internet revealed that extensive research has been conducted into Lean manufacturing in South Africa. However, no research is noted with regard to the sustainability of Lean manufacturing at Volkswagen Group South Africa. The aim of this study is to analyse the sustainability of the lean manufacturing implementation at VWGSA.
- Full Text:
- Date Issued: 2012
The development of best practice guidelines for the contingency management of health-related absenteeism in the motor manufacturing industry
- Authors: Werner, Amanda
- Date: 2005
- Subjects: Sick leave , Absenteeism (Labor) , Contingency theory (Management) , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:9379 , http://hdl.handle.net/10948/160 , Sick leave , Absenteeism (Labor) , Contingency theory (Management) , Automobile industry and trade -- South Africa
- Description: The research problem in this study was to identify best practices for the contingency management of health-related absenteeism. To achieve this goal, the following actions were taken: A literature study was conducted to identify the scope and impact of health-related absenteeism on organisations and the legal parameters within which health-related absenteeism should be managed. A literature study was also conducted to identify strategies to prevent and reduce health-related absenteeism and strategies to ensure the continuous provision of products and services in periods of high absenteeism. The theoretical study focused on the management of absenteeism, wellness, ill-health/mental problems and HIV/AIDS, as well as contingency strategies aimed at maintaining production and service provision. iii The findings from the literature study were integrated into a model of best practices for the contingency management of health-related absenteeism. This model was used as a basis for the development of a survey questionnaire to determine whether senior human resources practitioners, occupational health practitioners or line managers, who were responsible for the management of health-related absenteeism in organisations, agreed with the best practice guidelines developed in the study. The survey was conducted in the motor and motor component industry in the Nelson Mandela Metropolitan Municipality and Buffalo City Metropole. The empirical results from the study showed a strong concurrence with the best practices guidelines developed in the study, with the exception of the strategies aimed at maintaining undisrupted production and service provision during periods of high absenteeism. In particular, disagreement was shown with regard to alternative work arrangements such as flexible work-hours, a compressed workweek, telecommuting and job-sharing. Absenteeism, in general, is an issue that organisations are challenged with on a daily basis. The proliferation of various diseases, specifically HIV/AIDS, is contributing to this problem. An integrated and strategic approach is required to deal effectively and constructively with the immediate and expected future impact of health-related issues on absenteeism. Organisations could use the best practices guidelines, identified in this study, as a mechanism to benchmark how well they manage health-related absenteeism
- Full Text:
- Date Issued: 2005
- Authors: Werner, Amanda
- Date: 2005
- Subjects: Sick leave , Absenteeism (Labor) , Contingency theory (Management) , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:9379 , http://hdl.handle.net/10948/160 , Sick leave , Absenteeism (Labor) , Contingency theory (Management) , Automobile industry and trade -- South Africa
- Description: The research problem in this study was to identify best practices for the contingency management of health-related absenteeism. To achieve this goal, the following actions were taken: A literature study was conducted to identify the scope and impact of health-related absenteeism on organisations and the legal parameters within which health-related absenteeism should be managed. A literature study was also conducted to identify strategies to prevent and reduce health-related absenteeism and strategies to ensure the continuous provision of products and services in periods of high absenteeism. The theoretical study focused on the management of absenteeism, wellness, ill-health/mental problems and HIV/AIDS, as well as contingency strategies aimed at maintaining production and service provision. iii The findings from the literature study were integrated into a model of best practices for the contingency management of health-related absenteeism. This model was used as a basis for the development of a survey questionnaire to determine whether senior human resources practitioners, occupational health practitioners or line managers, who were responsible for the management of health-related absenteeism in organisations, agreed with the best practice guidelines developed in the study. The survey was conducted in the motor and motor component industry in the Nelson Mandela Metropolitan Municipality and Buffalo City Metropole. The empirical results from the study showed a strong concurrence with the best practices guidelines developed in the study, with the exception of the strategies aimed at maintaining undisrupted production and service provision during periods of high absenteeism. In particular, disagreement was shown with regard to alternative work arrangements such as flexible work-hours, a compressed workweek, telecommuting and job-sharing. Absenteeism, in general, is an issue that organisations are challenged with on a daily basis. The proliferation of various diseases, specifically HIV/AIDS, is contributing to this problem. An integrated and strategic approach is required to deal effectively and constructively with the immediate and expected future impact of health-related issues on absenteeism. Organisations could use the best practices guidelines, identified in this study, as a mechanism to benchmark how well they manage health-related absenteeism
- Full Text:
- Date Issued: 2005
Exploring the motivational factors of millennials in the automotive sector in South Africa
- Authors: Walters, Ashraf
- Date: 2020
- Subjects: Automobile industry and trade -- South Africa , Employee motivation
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/50709 , vital:42388
- Description: Motivation in the workplace is the willingness of employees to exert high levels of effort in achieving the organisations goals and objectives. Motivation has been studied by psychologists and organisational experts throughout the ages and was consistently found that motivated employees provide organisations with improved productivity and a competitive edge. Millennials, born between the years of 1980 and 2000, are the biggest cohort since the baby boomer to enter the workplace. A significant amount of research was done on the characteristics of millennials but there is a limited amount of empirical research done on understanding and potentially improving motivation of millennials. The automotive industry is a key player and contributor to South Africa’s gross domestic product and employs a great number of people in direct and indirect jobs throughout the value chain. Against this backdrop, research was conducted within the automotive sector in the Gauteng and Eastern Cape (Nelson Mandela Bay) regions in South Africa aimed at exploring motivation under the context of leadership, communication, social responsibility, rewards and, given the tech savvy nature of millennials, the use of technology. This study was conducted under the positivistic paradigm, which employed a quantitative approach, by means of a questionnaire survey. The study and review of the literature by the researcher found that millennials value leadership which supports, and guides as oppose to enforces. Communication, which is transparent, concise but frequent. They are willing to make personal sacrifices working for an organisation who genuinely cares about Environment.Furthermore, millennials demand using technology to improve efficiency and interestingly, regards career development more than money as the most important and rewarding aspect. By understanding the motivational factors of millennials, Leaders can be equipped to keep them engaged, motivated and highly productive, after all, they are not only the future, but are fast becoming the present.
- Full Text:
- Date Issued: 2020
- Authors: Walters, Ashraf
- Date: 2020
- Subjects: Automobile industry and trade -- South Africa , Employee motivation
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/50709 , vital:42388
- Description: Motivation in the workplace is the willingness of employees to exert high levels of effort in achieving the organisations goals and objectives. Motivation has been studied by psychologists and organisational experts throughout the ages and was consistently found that motivated employees provide organisations with improved productivity and a competitive edge. Millennials, born between the years of 1980 and 2000, are the biggest cohort since the baby boomer to enter the workplace. A significant amount of research was done on the characteristics of millennials but there is a limited amount of empirical research done on understanding and potentially improving motivation of millennials. The automotive industry is a key player and contributor to South Africa’s gross domestic product and employs a great number of people in direct and indirect jobs throughout the value chain. Against this backdrop, research was conducted within the automotive sector in the Gauteng and Eastern Cape (Nelson Mandela Bay) regions in South Africa aimed at exploring motivation under the context of leadership, communication, social responsibility, rewards and, given the tech savvy nature of millennials, the use of technology. This study was conducted under the positivistic paradigm, which employed a quantitative approach, by means of a questionnaire survey. The study and review of the literature by the researcher found that millennials value leadership which supports, and guides as oppose to enforces. Communication, which is transparent, concise but frequent. They are willing to make personal sacrifices working for an organisation who genuinely cares about Environment.Furthermore, millennials demand using technology to improve efficiency and interestingly, regards career development more than money as the most important and rewarding aspect. By understanding the motivational factors of millennials, Leaders can be equipped to keep them engaged, motivated and highly productive, after all, they are not only the future, but are fast becoming the present.
- Full Text:
- Date Issued: 2020
Assessing the impact of the transition from MIDP to APDP in the South African automotive industry
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
Strategic analysis of the South African motor manufacturing industry's changing business environment
- Authors: Stockwell, Cecil
- Date: 2000
- Subjects: Automobile industry and trade -- South Africa , Automobile industry and trade -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10840 , http://hdl.handle.net/10948/36 , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management
- Description: Introduction: The South African economy has shown very little economic growth and car sales declined steadily from 1988 till they increased slightly in 1999. 2000 saw the economy recovering from a recession, and motor vehicle sales increasing. In order for the South African motor manufacturing industry to remain viable, the manufacturers, who must operate within the framework of the Motor Industry Development Plan, face increasing international competition as the large motor firms from around the world strive to gain a foothold in Africa in anticipation of an “African Renaissance.” South African manufacturers have to develop appropriate strategies to ensure profitability and survival in the new millennium. This entails a thorough analysis of the changing business environment the industry finds itself trading in.
- Full Text:
- Date Issued: 2000
Strategic analysis of the South African motor manufacturing industry's changing business environment
- Authors: Stockwell, Cecil
- Date: 2000
- Subjects: Automobile industry and trade -- South Africa , Automobile industry and trade -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10840 , http://hdl.handle.net/10948/36 , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management
- Description: Introduction: The South African economy has shown very little economic growth and car sales declined steadily from 1988 till they increased slightly in 1999. 2000 saw the economy recovering from a recession, and motor vehicle sales increasing. In order for the South African motor manufacturing industry to remain viable, the manufacturers, who must operate within the framework of the Motor Industry Development Plan, face increasing international competition as the large motor firms from around the world strive to gain a foothold in Africa in anticipation of an “African Renaissance.” South African manufacturers have to develop appropriate strategies to ensure profitability and survival in the new millennium. This entails a thorough analysis of the changing business environment the industry finds itself trading in.
- Full Text:
- Date Issued: 2000
Development of a co-operative stakeholder framework for employment growth in the South African automotive sector
- Authors: Smith, Owen Christo
- Date: 2013
- Subjects: Cooperative societies -- South Africa , Job creation -- South Africa , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8884 , http://hdl.handle.net/10948/d1020799
- Description: Manufacturing has been identified by the Department of Trade and Industry as an important sector to drive economic growth in South Africa. The automotive manufacturing sector in particular has seen significant support from the DTI in the form of incentives to produce motor vehicles and components. South Africa is faced with a high unemployment rate and one of the strategies of the Government is to drive economic growth by supporting the automotive manufacturing sector. One of the spill-over targets is to increase employment creation in the industry. The automotive manufacturing sector consists of a diverse list of stakeholders representing motor vehicle manufacturers, component manufacturers, labour unions, government departments and industry associations. The Motor Industry Development Programme delivered significant progress in the number of vehicles produced in South Africa and the biggest growth was in the export of vehicles. Employment creation on the other hand did not see the same levels of growth as motor vehicle and component production. The purpose of this study was to identify and clarify what the variables are that influence employment creation and to develop a co-operation framework that would guide the automotive cluster stakeholders to work on employment creation initiatives as a collective. The survey questionnaire results representing the perception of managers showed that: - DTI Incentives schemes linked to employment creation; - Productivity, Technology and employment; - The role of competitiveness in the auto cluster; - Labour Union Collective bargaining; - Investment climate and infrastructure; - Education and skills development; does have an influence on employment creation in the automotive cluster.
- Full Text:
- Date Issued: 2013
- Authors: Smith, Owen Christo
- Date: 2013
- Subjects: Cooperative societies -- South Africa , Job creation -- South Africa , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8884 , http://hdl.handle.net/10948/d1020799
- Description: Manufacturing has been identified by the Department of Trade and Industry as an important sector to drive economic growth in South Africa. The automotive manufacturing sector in particular has seen significant support from the DTI in the form of incentives to produce motor vehicles and components. South Africa is faced with a high unemployment rate and one of the strategies of the Government is to drive economic growth by supporting the automotive manufacturing sector. One of the spill-over targets is to increase employment creation in the industry. The automotive manufacturing sector consists of a diverse list of stakeholders representing motor vehicle manufacturers, component manufacturers, labour unions, government departments and industry associations. The Motor Industry Development Programme delivered significant progress in the number of vehicles produced in South Africa and the biggest growth was in the export of vehicles. Employment creation on the other hand did not see the same levels of growth as motor vehicle and component production. The purpose of this study was to identify and clarify what the variables are that influence employment creation and to develop a co-operation framework that would guide the automotive cluster stakeholders to work on employment creation initiatives as a collective. The survey questionnaire results representing the perception of managers showed that: - DTI Incentives schemes linked to employment creation; - Productivity, Technology and employment; - The role of competitiveness in the auto cluster; - Labour Union Collective bargaining; - Investment climate and infrastructure; - Education and skills development; does have an influence on employment creation in the automotive cluster.
- Full Text:
- Date Issued: 2013
Investigating the impact of supply chain technologies within automative supplier clusters
- Authors: Schultz, Lance Craig
- Date: 2013
- Subjects: Business logistics -- Technological innovations , Inventory control , Production management , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8918 , http://hdl.handle.net/10948/d1021093
- Description: Organisations are constantly expected to be more competitive while working in an environment in which time and cost are limited, thereby preventing such organisations from taking the time required to be responsive. The supply chain provides a critical linkage between various organisations which should seek collective opportunities to improve performance. It is, therefore, important that organisations understand that conventional knowledge and methods will not serve unless there is a concerted focus on improvement of organisational performance toward fulfilling increased expectations, not just maintaining that which is comfortable. A more sustainable approach may be the introduction of supply chain best practice. An optimal supply chain is one that continuously strives to reduce unnecessary cost and eliminate waste, thereby increasing the percentage of time that may be devoted to value-adding activities. Supply chain technology principles were assessed and the application thereof, sought to understand its efficiency and effectiveness. This study was intended to identify supply chain cost dimensions with a focus on the optimal use of supply chain technology. Within the current supply chain context, the use of Information and Communication Technology (ICT) was explored to identify opportunities. A supply chain audit tool (SCAT) was developed which had proven to be an effective tool to analyse it’s logistics functions. Implementation of remedial tools through the SCAT could result in a leaner, cost optimal and more value-adding process. The result of conducting individual organisational improvements is expected to result in an overall improvement in the total supply chain. These supply chain cost drivers were rooted in cost, quality, safety and product performance. Recommendations on further improvements were also offered.
- Full Text:
- Date Issued: 2013
- Authors: Schultz, Lance Craig
- Date: 2013
- Subjects: Business logistics -- Technological innovations , Inventory control , Production management , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8918 , http://hdl.handle.net/10948/d1021093
- Description: Organisations are constantly expected to be more competitive while working in an environment in which time and cost are limited, thereby preventing such organisations from taking the time required to be responsive. The supply chain provides a critical linkage between various organisations which should seek collective opportunities to improve performance. It is, therefore, important that organisations understand that conventional knowledge and methods will not serve unless there is a concerted focus on improvement of organisational performance toward fulfilling increased expectations, not just maintaining that which is comfortable. A more sustainable approach may be the introduction of supply chain best practice. An optimal supply chain is one that continuously strives to reduce unnecessary cost and eliminate waste, thereby increasing the percentage of time that may be devoted to value-adding activities. Supply chain technology principles were assessed and the application thereof, sought to understand its efficiency and effectiveness. This study was intended to identify supply chain cost dimensions with a focus on the optimal use of supply chain technology. Within the current supply chain context, the use of Information and Communication Technology (ICT) was explored to identify opportunities. A supply chain audit tool (SCAT) was developed which had proven to be an effective tool to analyse it’s logistics functions. Implementation of remedial tools through the SCAT could result in a leaner, cost optimal and more value-adding process. The result of conducting individual organisational improvements is expected to result in an overall improvement in the total supply chain. These supply chain cost drivers were rooted in cost, quality, safety and product performance. Recommendations on further improvements were also offered.
- Full Text:
- Date Issued: 2013
Strategy formulation, alignment and implementation to ensure that Behr is competitive internationally : a case study
- Authors: Samuels, Donald
- Date: 2006
- Subjects: Automobile industry and trade -- South Africa , Competition, International , Globalization , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8761 , http://hdl.handle.net/10948/600 , http://hdl.handle.net/10948/d1011685 , Automobile industry and trade -- South Africa , Competition, International , Globalization , Strategic planning
- Description: South Africa’s transition to democracy in 1994 has heralded a re-entry into the global economy. This has meant that for the first time in more than 40 years of isolation because of “apartheid” policies, South African companies are facing global competition. The South African automotive industry has undergone major changes over the past few years. All the assemblers are now either wholly or partially owned by overseas parent companies. Under globalisation, foreign ownership of locally owned suppliers has also been escalating. The Behr strategy and values were examined to determine whether they are consistent with companies operating in the international environment. The literature study was conducted by using textbooks, periodicals and the internet. The empirical study was conducted by means of a questionnaire addressed to the Behr executives. The results of this empirical study were then directly correlated to the theoretical aspects. Distinctive competences, market growth and product development strategies were identified and comparisons made with theory.
- Full Text:
- Date Issued: 2006
- Authors: Samuels, Donald
- Date: 2006
- Subjects: Automobile industry and trade -- South Africa , Competition, International , Globalization , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8761 , http://hdl.handle.net/10948/600 , http://hdl.handle.net/10948/d1011685 , Automobile industry and trade -- South Africa , Competition, International , Globalization , Strategic planning
- Description: South Africa’s transition to democracy in 1994 has heralded a re-entry into the global economy. This has meant that for the first time in more than 40 years of isolation because of “apartheid” policies, South African companies are facing global competition. The South African automotive industry has undergone major changes over the past few years. All the assemblers are now either wholly or partially owned by overseas parent companies. Under globalisation, foreign ownership of locally owned suppliers has also been escalating. The Behr strategy and values were examined to determine whether they are consistent with companies operating in the international environment. The literature study was conducted by using textbooks, periodicals and the internet. The empirical study was conducted by means of a questionnaire addressed to the Behr executives. The results of this empirical study were then directly correlated to the theoretical aspects. Distinctive competences, market growth and product development strategies were identified and comparisons made with theory.
- Full Text:
- Date Issued: 2006
The impact of the Dieselgate vehicle emmissions scandal on customer equity in the South African automotive industry
- Authors: Pillay, Sylvester Deenan
- Date: 2020
- Subjects: Automobile industry and trade -- Germany , Automobile industry and trade -- Law and legislation -- Germany , Automobile industry and trade -- South Africa , Automobiles -- Motors -- Exhaust gas , Brand choice -- South Africa , Customer preferences -- South Africa , Consumer satisfaction -- South Africa , Brand loyalty -- South Africa , Consumer behavior -- South Africa , Dieselgate
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/149304 , vital:38823
- Description: Prominent German automotive manufacturers had been tampering with emissions for some time before it became public knowledge in September 2015. It is then that that the term ‘Dieselgate’ was coined in reference to the scandal. As the scandal became public knowledge, manufacturers accused of emissions cheating faced challenges on several fronts, including legal, financial and environmental. While the ‘backlash’ as a result of the scandal was apparent in other countries, it was not as apparent in South Africa. This research paper set out to explore the impact that the Dieselgate scandal had in South Africa in terms of customer equity. Data analysis was undertaken using a two-pronged approach. The first of these was analysis of vehicle sales data using a paired t-test. This was to understand whether sales had seen a decline pre-, as well as post-scandal. The results point to a sales decline, this highlights that Dieselgate was a factor even though other, unexamined factors, were not investigated. The second instrument used was a customer equity questionnaire, this provided insight into the real opinions of consumers in South Africa about the affected brands. The analysis revealed that the affected manufacturers operating in South Africa had seen no negative effects in terms of customer equity. Based on the results, it could be said that market factors, which was not part of the research, play a great role in consumers’ preferences or mindsets. Additionally, manufacturers can operate with a degree of latitude in certain markets. This is based on market factors in a specific market as well as the regulations imposed and enforced in that market. Lastly, customer equity is a complex theory that includes a multitude of converging theories. Based on this fact, it is currently difficult to evaluate customer equity in its entirety in a single paper. A comprehensive model is yet to be developed that can effectively measure customer equity in an all-encompassing way.
- Full Text:
- Date Issued: 2020
- Authors: Pillay, Sylvester Deenan
- Date: 2020
- Subjects: Automobile industry and trade -- Germany , Automobile industry and trade -- Law and legislation -- Germany , Automobile industry and trade -- South Africa , Automobiles -- Motors -- Exhaust gas , Brand choice -- South Africa , Customer preferences -- South Africa , Consumer satisfaction -- South Africa , Brand loyalty -- South Africa , Consumer behavior -- South Africa , Dieselgate
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/149304 , vital:38823
- Description: Prominent German automotive manufacturers had been tampering with emissions for some time before it became public knowledge in September 2015. It is then that that the term ‘Dieselgate’ was coined in reference to the scandal. As the scandal became public knowledge, manufacturers accused of emissions cheating faced challenges on several fronts, including legal, financial and environmental. While the ‘backlash’ as a result of the scandal was apparent in other countries, it was not as apparent in South Africa. This research paper set out to explore the impact that the Dieselgate scandal had in South Africa in terms of customer equity. Data analysis was undertaken using a two-pronged approach. The first of these was analysis of vehicle sales data using a paired t-test. This was to understand whether sales had seen a decline pre-, as well as post-scandal. The results point to a sales decline, this highlights that Dieselgate was a factor even though other, unexamined factors, were not investigated. The second instrument used was a customer equity questionnaire, this provided insight into the real opinions of consumers in South Africa about the affected brands. The analysis revealed that the affected manufacturers operating in South Africa had seen no negative effects in terms of customer equity. Based on the results, it could be said that market factors, which was not part of the research, play a great role in consumers’ preferences or mindsets. Additionally, manufacturers can operate with a degree of latitude in certain markets. This is based on market factors in a specific market as well as the regulations imposed and enforced in that market. Lastly, customer equity is a complex theory that includes a multitude of converging theories. Based on this fact, it is currently difficult to evaluate customer equity in its entirety in a single paper. A comprehensive model is yet to be developed that can effectively measure customer equity in an all-encompassing way.
- Full Text:
- Date Issued: 2020
Determinants of foreign direct investments in the motor industry in South Africa
- Authors: Onceya, Siyabulela
- Date: 2011
- Subjects: Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11459 , http://hdl.handle.net/10353/545 , Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Description: The recent surge in foreign capital inflows into developing countries has generated interest among researchers wanting to analyse the major determinants of Foreign Direct Investments in the motor industry (FDIsm). This dissertation investigates the determinants of FDI in the motor industry in South Africa. The underpinning theoretical literature in this study is the Micro-level theory of FDI and the Eclectic theory as well as empirical literature from several authors. The study used quarterly time series data, which covers the period 1994q1- 2008q4. FDIs are modeled as the function of economic growth, interest rates, exchange rate, education and the openness of the country. The variables in the model are tested for stationarity. Cointegration analysis was also used to test for long run relationships between the variables. The trace and the maximum eigenvalue tests suggest that there are at least two cointegration relationships, an error correction modelling technique is used to establish the determinants of foreign direct investment. The error correction model was estimated which provided both long run and short run parameter estimates. The results show that economic growth, education and the openness of the country are positively related to foreign direct investment in the motor industry. Interest rates and exchange rates negatively affect foreign direct investment in the motor industry in South Africa. The results of this study are also supported by the impulse response and variance decomposition tests. The policy recommendation that emanate from this study is that efforts should be made to boost the level of economic growth in order to enhance and attract more foreign investors. It is therefore important for the government to purse policies that will encourage economic growth.
- Full Text:
- Date Issued: 2011
- Authors: Onceya, Siyabulela
- Date: 2011
- Subjects: Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11459 , http://hdl.handle.net/10353/545 , Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Description: The recent surge in foreign capital inflows into developing countries has generated interest among researchers wanting to analyse the major determinants of Foreign Direct Investments in the motor industry (FDIsm). This dissertation investigates the determinants of FDI in the motor industry in South Africa. The underpinning theoretical literature in this study is the Micro-level theory of FDI and the Eclectic theory as well as empirical literature from several authors. The study used quarterly time series data, which covers the period 1994q1- 2008q4. FDIs are modeled as the function of economic growth, interest rates, exchange rate, education and the openness of the country. The variables in the model are tested for stationarity. Cointegration analysis was also used to test for long run relationships between the variables. The trace and the maximum eigenvalue tests suggest that there are at least two cointegration relationships, an error correction modelling technique is used to establish the determinants of foreign direct investment. The error correction model was estimated which provided both long run and short run parameter estimates. The results show that economic growth, education and the openness of the country are positively related to foreign direct investment in the motor industry. Interest rates and exchange rates negatively affect foreign direct investment in the motor industry in South Africa. The results of this study are also supported by the impulse response and variance decomposition tests. The policy recommendation that emanate from this study is that efforts should be made to boost the level of economic growth in order to enhance and attract more foreign investors. It is therefore important for the government to purse policies that will encourage economic growth.
- Full Text:
- Date Issued: 2011
Future scenarios in the automotive industry as a result of the social impact of industry 4.0 in the period up to 2033
- Authors: Nongendzi, Siyabonga
- Date: 2019
- Subjects: Automobile industry and trade -- South Africa , Technological innovations -- Economic aspects Labor supply -- Effect of technological innovations on Information technology -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/42836 , vital:36698
- Description: With increasing human population growth, rising GDP levels, and more affluent lifestyles, the human race is progressively consuming, leading to an ever-increasing demand for renewable and non- renewable resources. The problem of resource scarcity is, therefore, emerging because it is questionable whether economic growth in a world with finite natural resources can be sustained. One of the objectives of this work is to analyse the potential of industrial 4.0 applications to achieve a more sustainable South African automotive industry. Even if the economy is still locked up in a system that favours the linear traditional production model, stricter environmental standards, a scarcity of resources and changing consumer expectations will force entities to find alternatives. New technologies can be used to trace materials through the value chain and to track the status of the product during its life cycle. Companies are beginning to capitalize on the potential of emerging technologies to more sustainably reorganise production, services, business models or entire organizations. What is certain is that many expect that the fourth industrial revolution will have a substantial effect on jobs worldwide as advanced robotics, artificial intelligence and automation are becoming more influential. Digitisation has a full impact on both the automotive industry and society. Automation we’ve seen in the past has intensified. Digitisation has an ongoing and unprecedented effect on the operation of firms. It impacts all aspects from development to manufacturing and logistics and challenges business models and changes the place of work and the way we work. For this reason, a well- developed infrastructure and skilled workforce are key factors in transforming the industry successfully. From a South African point of view, qualification is a key challenge for industry 4.0 and requires decisive action. The challenge of skills in the manufacturing sector is growing as the industry becomes more digital. The plans of manufacturers to drive productivity improvements and capitalise on the fourth industrial revolution could be eroded because the education system is struggling to provide the right quantity and quality of skills to meet the needs of the sector. Manufacturers will need to keep investing in training current employees to keep up with new processes in line with company needs. One major challenge is to increase the digital skills of current and, in particular, older workers, by creating an offer of digital training. The research study aimed to develop insights into the future of the South African automotive industry by constructing two scenarios towards 2033: Worst case; South African automotive industry did little to change current linear traditional production mode trends in 2033; This narrative has seen the sector fall into the nightmare of its own dystonia. Best case; South African automotive is a success in 2033; The South African automotive industry finds its competitive global niche. And even with breakthroughs in robotics and artificial intelligence, there is a major disruption in employment throughout the world, South Africa has succeeded in creating a small but intelligent base for youth who can recognise and exploit opportunities on the global market. Industry 4.0 has a high potential to ensure more sustainable production methods.
- Full Text:
- Date Issued: 2019
- Authors: Nongendzi, Siyabonga
- Date: 2019
- Subjects: Automobile industry and trade -- South Africa , Technological innovations -- Economic aspects Labor supply -- Effect of technological innovations on Information technology -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/42836 , vital:36698
- Description: With increasing human population growth, rising GDP levels, and more affluent lifestyles, the human race is progressively consuming, leading to an ever-increasing demand for renewable and non- renewable resources. The problem of resource scarcity is, therefore, emerging because it is questionable whether economic growth in a world with finite natural resources can be sustained. One of the objectives of this work is to analyse the potential of industrial 4.0 applications to achieve a more sustainable South African automotive industry. Even if the economy is still locked up in a system that favours the linear traditional production model, stricter environmental standards, a scarcity of resources and changing consumer expectations will force entities to find alternatives. New technologies can be used to trace materials through the value chain and to track the status of the product during its life cycle. Companies are beginning to capitalize on the potential of emerging technologies to more sustainably reorganise production, services, business models or entire organizations. What is certain is that many expect that the fourth industrial revolution will have a substantial effect on jobs worldwide as advanced robotics, artificial intelligence and automation are becoming more influential. Digitisation has a full impact on both the automotive industry and society. Automation we’ve seen in the past has intensified. Digitisation has an ongoing and unprecedented effect on the operation of firms. It impacts all aspects from development to manufacturing and logistics and challenges business models and changes the place of work and the way we work. For this reason, a well- developed infrastructure and skilled workforce are key factors in transforming the industry successfully. From a South African point of view, qualification is a key challenge for industry 4.0 and requires decisive action. The challenge of skills in the manufacturing sector is growing as the industry becomes more digital. The plans of manufacturers to drive productivity improvements and capitalise on the fourth industrial revolution could be eroded because the education system is struggling to provide the right quantity and quality of skills to meet the needs of the sector. Manufacturers will need to keep investing in training current employees to keep up with new processes in line with company needs. One major challenge is to increase the digital skills of current and, in particular, older workers, by creating an offer of digital training. The research study aimed to develop insights into the future of the South African automotive industry by constructing two scenarios towards 2033: Worst case; South African automotive industry did little to change current linear traditional production mode trends in 2033; This narrative has seen the sector fall into the nightmare of its own dystonia. Best case; South African automotive is a success in 2033; The South African automotive industry finds its competitive global niche. And even with breakthroughs in robotics and artificial intelligence, there is a major disruption in employment throughout the world, South Africa has succeeded in creating a small but intelligent base for youth who can recognise and exploit opportunities on the global market. Industry 4.0 has a high potential to ensure more sustainable production methods.
- Full Text:
- Date Issued: 2019
Increasing competitiveness through the enhancement of logistics processes in the South African automotive industry
- Authors: Njokweni, Thobela
- Date: 2005
- Subjects: Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10939 , http://hdl.handle.net/10948/418 , Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Description: Logistics has become one of the automotive industry's most crucial sub-sectors. Previously, logistics had to step aside to make way for production considerations. Today it is regarded as being every bit as crucial as production in the global village. Advancement of logistics in South Africa is crucial because original equipment manufacturers are producing to developed world standards but are having to cope with low developing world logistics standards. The logistics processes that need to be enhanced in order for the South African automotive industry to be more competitive were investigated. To examine the main problem, three sub-problems were identified. The first sub-problem that has been identified dealt with logistics processes that will enhance the competitive advantage of the South African automotive industry. The second sub-problems looked at key logistics opportunities and threats to the environment in which South African motor manufactures trade. They were investigated by assessing the nature of the South African motor manufacturing industry. Finally, the third sub-problem investigated conclusions that can be arrived at concerning the appropriateness and strategic value of the analysis.
- Full Text:
- Date Issued: 2005
- Authors: Njokweni, Thobela
- Date: 2005
- Subjects: Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10939 , http://hdl.handle.net/10948/418 , Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Description: Logistics has become one of the automotive industry's most crucial sub-sectors. Previously, logistics had to step aside to make way for production considerations. Today it is regarded as being every bit as crucial as production in the global village. Advancement of logistics in South Africa is crucial because original equipment manufacturers are producing to developed world standards but are having to cope with low developing world logistics standards. The logistics processes that need to be enhanced in order for the South African automotive industry to be more competitive were investigated. To examine the main problem, three sub-problems were identified. The first sub-problem that has been identified dealt with logistics processes that will enhance the competitive advantage of the South African automotive industry. The second sub-problems looked at key logistics opportunities and threats to the environment in which South African motor manufactures trade. They were investigated by assessing the nature of the South African motor manufacturing industry. Finally, the third sub-problem investigated conclusions that can be arrived at concerning the appropriateness and strategic value of the analysis.
- Full Text:
- Date Issued: 2005
Tailoring a lean product development framework for the South African automotive industry
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech (Operations Management)
- Identifier: vital:9605 , http://hdl.handle.net/10948/1660 , Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61% of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the iv automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
- Full Text:
- Date Issued: 2011
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech (Operations Management)
- Identifier: vital:9605 , http://hdl.handle.net/10948/1660 , Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61% of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the iv automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
- Full Text:
- Date Issued: 2011
Tailoring a lean product development framework for the South African automotive industry
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:8792 , http://hdl.handle.net/10948/d1015737
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61percent of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
- Full Text:
- Date Issued: 2011
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:8792 , http://hdl.handle.net/10948/d1015737
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61percent of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
- Full Text:
- Date Issued: 2011
An evaluation of a strategy of lean manufacturing as a means for a South African motor vehicle assembler to achieve core competence
- Authors: Maritz, Louis Wiehahn
- Date: 2000
- Subjects: Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10834 , http://hdl.handle.net/10948/26 , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Description: South African businesses are facing unforeseen opportunities and threats following the country’s remarkable political transformation that culminated in its first non-racial, democratic elections in April 1994 (Krüger, 1997: 138). The objective of this paper was to understand what core competences a South African motor vehicle assembler requires to survive this era of declining protectionism and increasing competition. It is argued in this paper that organisations that want to compete with the best in the world market needs to adopt lean manufacturing principles. This paper is concerned with the core competences of an organisation and how an organisation identifies and utilises these in order to become a lean enterprise. The qualitative research method was identified as the most appropriate for the study. Two methods of data collection were used i.e. interviews with senior and middle management and a detailed literary study on the subject. The senior management interviews were aimed at identifying what they perceived to be the core competences a motor vehicle assembler requires in order to be a world-class lean manufacturing enterprise. The literary study was the base for the understanding of core competence and lean manufacturing. Finally, a second round of interviews with middle management was conducted to obtain clarity on the perceived role of middle management in the selected organisation’s quest to be a lean manufacturing concern. This paper concludes that if an organisation wants to survive it needs to identify and assess its core competences. These competences need to be developed or discarded in the organisation’s aims to be a lean manufacturing enterprise by eliminating all forms of non-value added activity. The programmes or projects that the selected organisation embarked on were primarily driven from the top down, placing middle management in the centre with the resistance coming from the lower levels in the organisation. Middle management should be given the necessary tools to overcome the resistance and assist the company to make smooth transitions.
- Full Text:
- Date Issued: 2000
- Authors: Maritz, Louis Wiehahn
- Date: 2000
- Subjects: Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10834 , http://hdl.handle.net/10948/26 , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Description: South African businesses are facing unforeseen opportunities and threats following the country’s remarkable political transformation that culminated in its first non-racial, democratic elections in April 1994 (Krüger, 1997: 138). The objective of this paper was to understand what core competences a South African motor vehicle assembler requires to survive this era of declining protectionism and increasing competition. It is argued in this paper that organisations that want to compete with the best in the world market needs to adopt lean manufacturing principles. This paper is concerned with the core competences of an organisation and how an organisation identifies and utilises these in order to become a lean enterprise. The qualitative research method was identified as the most appropriate for the study. Two methods of data collection were used i.e. interviews with senior and middle management and a detailed literary study on the subject. The senior management interviews were aimed at identifying what they perceived to be the core competences a motor vehicle assembler requires in order to be a world-class lean manufacturing enterprise. The literary study was the base for the understanding of core competence and lean manufacturing. Finally, a second round of interviews with middle management was conducted to obtain clarity on the perceived role of middle management in the selected organisation’s quest to be a lean manufacturing concern. This paper concludes that if an organisation wants to survive it needs to identify and assess its core competences. These competences need to be developed or discarded in the organisation’s aims to be a lean manufacturing enterprise by eliminating all forms of non-value added activity. The programmes or projects that the selected organisation embarked on were primarily driven from the top down, placing middle management in the centre with the resistance coming from the lower levels in the organisation. Middle management should be given the necessary tools to overcome the resistance and assist the company to make smooth transitions.
- Full Text:
- Date Issued: 2000
Development of a Human Resource development strategy for the Border-Kei motor industry cluster
- Authors: Maritz, Andre
- Date: 2000
- Subjects: Manpower policy , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management , Personnel management -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10832 , http://hdl.handle.net/10948/23 , Manpower policy , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management , Personnel management -- South Africa
- Description: DaimlerChrysler’s investment of R 1.4 billion in its East London Plant has resulted in the formation and development of an industry cluster, with DaimlerChrysler as the main industry driver. The rest of the cluster is made up of suppliers to the motor industry, as well as organisations involved in attracting and stimulating economic development in the region. The investment by DaimlerChrysler signalled the entry of DaimlerChrysler South Africa (DCSA) into global markets, supplying right-hand drive C-Class vehicles to the rest of the world. As a global player, world-class quality standards are expected of DCSA and, in turn, their suppliers. World-Class skills are therefore expected of the employees from all of the organisations within the cluster. This factor poses a challenge to South African organisations who are subjected to and challenged by the legislation that seeks to address and correct the societal imbalance of the past. The research problem addressed in this study was two-fold. The first objective was to determine whether or not there was a competitive advantage to be gained by being part of an industry cluster. The second objective was to determine how suppliers to DCSA from within the cluster developed world-class skills despite the constraints imposed upon them by South African legislation. To achieve these objectives, a theoretical study was conducted on existing conditions within clusters worldwide, as well as on methods being implemented by global organisations to develop world-class skills. An empirical study, covering the topics of competitive advantage and developing world-class skills, was developed and sent to suppliers of DCSA to test the degree of concurrence between methods implemented in the Border-Kei Motor Industry Cluster and global organisations elsewhere in the world. The results of the empirical study indicated a strong concurrence in many of the factors, and essentially only differed in instances where a cluster was more developed.
- Full Text:
- Date Issued: 2000
- Authors: Maritz, Andre
- Date: 2000
- Subjects: Manpower policy , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management , Personnel management -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10832 , http://hdl.handle.net/10948/23 , Manpower policy , Automobile industry and trade -- South Africa , Automobile industry and trade -- Management , Personnel management -- South Africa
- Description: DaimlerChrysler’s investment of R 1.4 billion in its East London Plant has resulted in the formation and development of an industry cluster, with DaimlerChrysler as the main industry driver. The rest of the cluster is made up of suppliers to the motor industry, as well as organisations involved in attracting and stimulating economic development in the region. The investment by DaimlerChrysler signalled the entry of DaimlerChrysler South Africa (DCSA) into global markets, supplying right-hand drive C-Class vehicles to the rest of the world. As a global player, world-class quality standards are expected of DCSA and, in turn, their suppliers. World-Class skills are therefore expected of the employees from all of the organisations within the cluster. This factor poses a challenge to South African organisations who are subjected to and challenged by the legislation that seeks to address and correct the societal imbalance of the past. The research problem addressed in this study was two-fold. The first objective was to determine whether or not there was a competitive advantage to be gained by being part of an industry cluster. The second objective was to determine how suppliers to DCSA from within the cluster developed world-class skills despite the constraints imposed upon them by South African legislation. To achieve these objectives, a theoretical study was conducted on existing conditions within clusters worldwide, as well as on methods being implemented by global organisations to develop world-class skills. An empirical study, covering the topics of competitive advantage and developing world-class skills, was developed and sent to suppliers of DCSA to test the degree of concurrence between methods implemented in the Border-Kei Motor Industry Cluster and global organisations elsewhere in the world. The results of the empirical study indicated a strong concurrence in many of the factors, and essentially only differed in instances where a cluster was more developed.
- Full Text:
- Date Issued: 2000
A case study of the strategic nature of DaimlerChrysler South Africa's corporate social investment programmes in the local communities of the Border-Kei region in the Eastern Cape Province
- Authors: Mak'ochieng, Alice Atieno
- Date: 2004
- Subjects: DaimlerChrysler , Automobile industry and trade -- South Africa , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape , Industries -- Social aspects -- South Africa -- Eastern Cape , Social responsibility of business -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1165 , http://hdl.handle.net/10962/d1002781 , DaimlerChrysler , Automobile industry and trade -- South Africa , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape , Industries -- Social aspects -- South Africa -- Eastern Cape , Social responsibility of business -- South Africa -- Eastern Cape
- Description: Corporate social responsibility has become the business issue of the 21st century. Heightened expectations of the business sector, globalisation and increased media attention on the role of business in society are casting an intense spotlight on this issue. As a result, pressure has built on business to play a larger role in bringing about socio-economic development to many local communities where they operate. While for a long time companies have been involved in the community on a philanthropy basis, many companies today are reassessing the manner in which they conduct their corporate social responsibility programmes. Many companies are including corporate social responsibility issues into their strategic planning process and overall corporate strategy. Emphasis is given to certain strategic indicators that must be present in order for a company to be said to have taken a strategic approach to corporate social responsibility. This study adopted a critical-realist approach using a case study method to evaluate DaimlerChrysler South Africa’s corporate social investment programmes in the local community of the Border-Kei region against these strategic indicators. This new form of engagement is even challenging for a multinational corporation, which may feel that it is only obliged to assist the local community where its corporate headquarters is located. But as companies derive an everlarger share of revenue and profits from international operations, multinational companies are being called upon to redefine “community”, by looking beyond local, domestic and geographical communities to include those in regions where they have factories or factories operated by key suppliers. This study found that DCSA was strategically involved and had a good relationship with its local community. However, the company needs to be more connected with the rural communities to make local projects more successful especially after handover.
- Full Text:
- Date Issued: 2004
- Authors: Mak'ochieng, Alice Atieno
- Date: 2004
- Subjects: DaimlerChrysler , Automobile industry and trade -- South Africa , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape , Industries -- Social aspects -- South Africa -- Eastern Cape , Social responsibility of business -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1165 , http://hdl.handle.net/10962/d1002781 , DaimlerChrysler , Automobile industry and trade -- South Africa , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape , Industries -- Social aspects -- South Africa -- Eastern Cape , Social responsibility of business -- South Africa -- Eastern Cape
- Description: Corporate social responsibility has become the business issue of the 21st century. Heightened expectations of the business sector, globalisation and increased media attention on the role of business in society are casting an intense spotlight on this issue. As a result, pressure has built on business to play a larger role in bringing about socio-economic development to many local communities where they operate. While for a long time companies have been involved in the community on a philanthropy basis, many companies today are reassessing the manner in which they conduct their corporate social responsibility programmes. Many companies are including corporate social responsibility issues into their strategic planning process and overall corporate strategy. Emphasis is given to certain strategic indicators that must be present in order for a company to be said to have taken a strategic approach to corporate social responsibility. This study adopted a critical-realist approach using a case study method to evaluate DaimlerChrysler South Africa’s corporate social investment programmes in the local community of the Border-Kei region against these strategic indicators. This new form of engagement is even challenging for a multinational corporation, which may feel that it is only obliged to assist the local community where its corporate headquarters is located. But as companies derive an everlarger share of revenue and profits from international operations, multinational companies are being called upon to redefine “community”, by looking beyond local, domestic and geographical communities to include those in regions where they have factories or factories operated by key suppliers. This study found that DCSA was strategically involved and had a good relationship with its local community. However, the company needs to be more connected with the rural communities to make local projects more successful especially after handover.
- Full Text:
- Date Issued: 2004
A knowledge management framework for automotive component manufactures in the Eastern Cape
- Authors: Lingham, Nathan
- Date: 2011
- Subjects: Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8606 , http://hdl.handle.net/10948/1592 , Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Description: It is estimated that each direct job in the automotive industry supports at least 5 indirect jobs in the global community, resulting in more than 50 million jobs to the global auto industry (Ellis, 2006). In South Africa the automotive sector, as an employer, is widely viewed to be second only to mining. In the automotive industry globally, it is being discovered that knowledge, as opposed to “data” or “information”, is becoming harder to locate as a knowledge-bleed is occurring due to the phenomenon of the “brain drain”, retirement of experienced professionals, changing work behaviours among the younger generations and the general lack of infusion of new talent into the South African automotive industry over the past decade (Liebowitz, 1999). This realisation has spawned a growing interest in the concept of knowledge management (KM). KM is the development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing and use of knowledge critical for decision making. The effective use of KM helps organisations to improve the quality of their decision making and correspondingly to reduce costs and increase efficiency (Kinicki and Kreitner, 2008). Most automotive Original Equipment Manufacturers (OEMs) have made some attempt at KM initiatives, and these attempts have been well-documented. However, among the automotive component suppliers, limited evidence exists of attempts at KM (Piderit, 2007). No standard KM application framework could be established in the literature for industry practitioners in automotive component manufacturers within the Eastern Cape. The aim of this research study is therefore to develop a framework for the application of KM in automotive component manufacturers within the Eastern Cape. The research consisted of a study of the knowledge management literature and the subsequent development of a knowledge management framework and empirical evaluation of the framework in the automotive component supply industry of the Eastern Cape. In conclusion the report presents a knowledge management framework which converts a company assessment to recommended corrective actions to be implemented and also presents the author’s findings, conclusions and recommendations derived from the study.
- Full Text:
- Date Issued: 2011
- Authors: Lingham, Nathan
- Date: 2011
- Subjects: Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8606 , http://hdl.handle.net/10948/1592 , Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Description: It is estimated that each direct job in the automotive industry supports at least 5 indirect jobs in the global community, resulting in more than 50 million jobs to the global auto industry (Ellis, 2006). In South Africa the automotive sector, as an employer, is widely viewed to be second only to mining. In the automotive industry globally, it is being discovered that knowledge, as opposed to “data” or “information”, is becoming harder to locate as a knowledge-bleed is occurring due to the phenomenon of the “brain drain”, retirement of experienced professionals, changing work behaviours among the younger generations and the general lack of infusion of new talent into the South African automotive industry over the past decade (Liebowitz, 1999). This realisation has spawned a growing interest in the concept of knowledge management (KM). KM is the development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing and use of knowledge critical for decision making. The effective use of KM helps organisations to improve the quality of their decision making and correspondingly to reduce costs and increase efficiency (Kinicki and Kreitner, 2008). Most automotive Original Equipment Manufacturers (OEMs) have made some attempt at KM initiatives, and these attempts have been well-documented. However, among the automotive component suppliers, limited evidence exists of attempts at KM (Piderit, 2007). No standard KM application framework could be established in the literature for industry practitioners in automotive component manufacturers within the Eastern Cape. The aim of this research study is therefore to develop a framework for the application of KM in automotive component manufacturers within the Eastern Cape. The research consisted of a study of the knowledge management literature and the subsequent development of a knowledge management framework and empirical evaluation of the framework in the automotive component supply industry of the Eastern Cape. In conclusion the report presents a knowledge management framework which converts a company assessment to recommended corrective actions to be implemented and also presents the author’s findings, conclusions and recommendations derived from the study.
- Full Text:
- Date Issued: 2011
Improving service quality at automotive dealerships
- Lekhelebana, Vuyokazi Anneline
- Authors: Lekhelebana, Vuyokazi Anneline
- Date: 2013
- Subjects: SERVQUAL (Service quality framework) , Automobile industry and trade -- South Africa , Customer services -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8804 , http://hdl.handle.net/10948/d1017204
- Description: The highly competitive landscape of the automotive industry places increasing pressure on automotive dealerships to continually improve the quality of services rendered to customers. Understanding customer expectations and customer perceptions is key to making improvements in areas that matter most to the customer. It is against this background that this study was conducted. The aim of this research was to measure service quality at automotive dealerships. The literature review focused on the gaps model which resulted in the SERVQUAL measuring tool. The SERVQUAL instrument is supported by literature as the optimal instrument for measuring service quality. The 22-item questionnaire was adapted and used to solicit feedback from customers on their expectations and perceptions of the service rendered by dealerships across the five SERVQUAL dimensions; namely, tangibles, reliability, responsiveness, empathy and assurance. Gaps between customer expectations and perceptions were calculated as an indication of areas where customer expectations were met, unmet or exceeded. In order to identify priorities for improvement, each of the SERVQUAL dimensions was ranked in order of importance by the customer. Convenience sampling was used as a sampling technique. A total of 142 Volkswagen owners who had their vehicles serviced or repaired at a franchised dealership were surveyed. The reliability of the SERVQUAL questionnaire was tested by calculating the Cronbach’s Alpha coefficient for each of the five dimensions. The calculation yielded an average coefficient of 0.83, indicating a high reliability of the measuring instrument and the data collected. The overall gap score of -0.7 indicates that customer expectations exceeded customer perceptions. The lowest customer perceptions and the largest gaps were reported in the reliability and responsiveness dimensions. These two dimensions were also rated as the most important dimensions customers use for evaluating service quality. This formed the basis for recommending that dealership employees and management focus most of their efforts on improving the reliability and responsiveness dimensions.
- Full Text:
- Date Issued: 2013
- Authors: Lekhelebana, Vuyokazi Anneline
- Date: 2013
- Subjects: SERVQUAL (Service quality framework) , Automobile industry and trade -- South Africa , Customer services -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8804 , http://hdl.handle.net/10948/d1017204
- Description: The highly competitive landscape of the automotive industry places increasing pressure on automotive dealerships to continually improve the quality of services rendered to customers. Understanding customer expectations and customer perceptions is key to making improvements in areas that matter most to the customer. It is against this background that this study was conducted. The aim of this research was to measure service quality at automotive dealerships. The literature review focused on the gaps model which resulted in the SERVQUAL measuring tool. The SERVQUAL instrument is supported by literature as the optimal instrument for measuring service quality. The 22-item questionnaire was adapted and used to solicit feedback from customers on their expectations and perceptions of the service rendered by dealerships across the five SERVQUAL dimensions; namely, tangibles, reliability, responsiveness, empathy and assurance. Gaps between customer expectations and perceptions were calculated as an indication of areas where customer expectations were met, unmet or exceeded. In order to identify priorities for improvement, each of the SERVQUAL dimensions was ranked in order of importance by the customer. Convenience sampling was used as a sampling technique. A total of 142 Volkswagen owners who had their vehicles serviced or repaired at a franchised dealership were surveyed. The reliability of the SERVQUAL questionnaire was tested by calculating the Cronbach’s Alpha coefficient for each of the five dimensions. The calculation yielded an average coefficient of 0.83, indicating a high reliability of the measuring instrument and the data collected. The overall gap score of -0.7 indicates that customer expectations exceeded customer perceptions. The lowest customer perceptions and the largest gaps were reported in the reliability and responsiveness dimensions. These two dimensions were also rated as the most important dimensions customers use for evaluating service quality. This formed the basis for recommending that dealership employees and management focus most of their efforts on improving the reliability and responsiveness dimensions.
- Full Text:
- Date Issued: 2013