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.
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- 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.
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- Date Issued: 2000
Development of a model of factors promoting team effectiveness in the automotive component industry
- Authors: Hutton, Timothy Strathearn
- Date: 2000
- Subjects: Teams in the workplace , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10833 , http://hdl.handle.net/10948/24 , Teams in the workplace , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa
- Description: The research problem addressed in this study was to determine what makes a work team successful. To achieve this objective a theoretical model of factors promoting team effectiveness was developed, using relevant literature in which models for team effectiveness are described. The theoretical model consisted of the following factors: Individual background factors; Facilitation; Team Factors; Synergy; Team effectiveness; Organisational factors. Each factor of the model was broken down into dimensions that were then analysed using literature identified during the literature study. The theoretical model was then used to develop a questionnaire to test the degree to which managers working for automotive component manufacturers in the Port Elizabeth /Uitenhage magisterial district and falling under Chapter III of the Bargaining Council for the Motor Industry concur. The empirical results obtained indicate a strong concurrence with the theoretical model of factors promoting team effectiveness that was developed in the study. This resulted in the theoretical model being confirmed and being accepted as a model of factors promoting team effectiveness.
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- Date Issued: 2000
Integrating customer requirements in the design of service processes in South African motor dealership
- Authors: Hodgkinson, Peter
- Date: 2000
- Subjects: Automobile industry and trade -- Customer services , Automobile industry and trade -- South Africa , Customer services -- Quality control
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10837 , http://hdl.handle.net/10948/30 , Automobile industry and trade -- Customer services , Automobile industry and trade -- South Africa , Customer services -- Quality control
- Description: The Motor Industry is set in a highly competitive and dynamic global arena constantly shaped by both external and internal forces. From an organisations point of view many of the external or macro forces are largely uncontrollable. Against this backdrop, players in the South African Motor Industry need to find new methods of differentiating themselves from competitors – One manner of performing this strategy is for Motor Dealerships to understand, meet or exceed customer requirements. In this research, the literature survey revealed the concepts of Total Quality Management (TQM) and fail-safing, the meaning of superior customer service and the importance of customer loyalty and retention. Customer service excellence levels of three Williams Hunt dealerships in the Port Elizabeth – Uitenhage metropole were measured by utilizing the SERVQUAL instrument for calibrating service quality. Customer expectations and perceptions were determined by means of the empirical study which yielded a service quality “gap.” From analysis of this gap and related findings, suggested improvements were suggested as a guideline for dealerships to utilise with the aim of improving customer service levels.
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- 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.
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- Date Issued: 2000
Achieving successful implementation of lean manufacturing control systems, to achieve world class status, at Ford Motor Componay of Southern Africa
- Authors: Govender, Shawn Prakash
- Date: 2002
- Subjects: Ford Motor Company of South Africa , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10909 , http://hdl.handle.net/10948/75 , Ford Motor Company of South Africa , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Description: Ford Motor Company embarked on a new engine programme, called the Rocam Engine Programme, in the year 2001. This engine was developed specifically for the European market. The customer demand rate was small initially, but ramped up slowly over time. During the low production volume period, this engine was introduced into the local market to test the publics’ response. The response was overwhelmingly positive. The local market grew considerably in a short space of time. During the same time-period, the European customer demand increased, unexpectedly, by approximately 60 percent. The additional production volume placed an enormous amount of pressure on the Engine Plant facility. Two of the production lines in particular, were taking huge strain. These lines were not producing the demand quantities, and the product quality levels were dropping quickly. The research project is based purely on the lean manufacturing principles and philosophies. The aim of the study is to identify the deficiencies on these two production lines, thereby allowing corrective action to be taken. The research methodology comprised of the following steps: · A literature study was performed to give the reader a better understanding of the principles and philosophies of lean manufacturing. · A second literature study was also performed to get a better understanding of the continuous improvement philosophies of lean manufacturing. · A current state map, which depicts the existing situation on the line, was developed for both production lines. The existing situation was then compared to the fundamental principles and philosophies of a lean manufacturer. In this way the deficiencies were highlighted to management. Several recommendations were made regarding the data obtained in the study. The key ones are as follows: · First-line management needs to be trained and coached into managing their business by using quality, cost and delivery as the key performance metrics. They also have to be trained in team dynamics. This will promote cross-functional brainstorming and problem solving sessions. · The accurate collection and processing of base-measurement data should be treated as cardinal, and road shows by production personnel should be presented every week to top management. This will ensure that data is regularly collected and corrective action is continually taken to improve the current situation. Operating personnel needs to be trained in this discipline. Management needs to be serious about implementing lean production principles by enforcing these road shows. · The objectives of Kaizen, production management and the supporting departments (including maintenance and MP&L) ought to be the same in the interest of maximum productivity i.e. leaning towards world class. · First-line management must develop formal structured plans that will rectify the current on-line situation. Plans must include medium to longterm objective setting. Senior management need to coach the first-line management in this discipline. · Few production systems can be implemented without the necessary infrastructure conducive to supporting it. An infrastructure where production gets involved and takes ownership (policy deployment with regards to lines of communication and responsibility between Area Managers, Production Coordinators, Team Leaders and contractors) is what is required. Lean manufacturing deficiencies on the two production lines have been identified. A detailed implementation plan, which needs to be developed by the Ford Production System department, needs to be given to management. This plan needs to address the identified deficiencies in a timely manner that will assist in the Engine Plant meeting their production targets.
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- Date Issued: 2002
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.
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- Date Issued: 2004
A study of the use of value based management (VBM) by multinational entities in the Eastern Cape motor industry cluster (ECMIC)
- Authors: Blouw, Mbuyiselo Edwin
- Date: 2005
- Subjects: Corporations -- Valuation , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8550 , http://hdl.handle.net/10948/421 , Corporations -- Valuation , Automobile industry and trade -- South Africa
- Description: Management’s response to shareholders’ return on investment as a priority occurs in an increasingly dynamic environment. Accompanying these activities is the need to realign responsibilities and to allocate scarce resources effectively. This is done in order to ensure that companies achieve global competitiveness and increase shareholders’ return on investment. Against this backdrop, local industry needs to find new methods or strategies in order to achieve world-class competitiveness, and to be able to access foreign investment. One way to achieve these goals is through Value Based Management (VBM). The objective of this study is to evaluate the strategic intent of Multinational Entities in applying VBM to increase shareholders’ return on investment. Based on the study, certain factors are critical to ensure the success of VBM. A postal survey to managers in the motor manufacturing and component manufacturing companies was conducted to check the managers’ familiarity with VBM, and their scope, and usage of VBM; and, based on the finding, to evaluate the impact of VBM on companies’ results. The empirical finding was compared with a literature review, and the following findings were made: There is a strong understanding and application of the VBM principle on the part of local entities with Foreign Direct Investment (FDI); Departmental performance is critical to an entity’s overall performance; Based on the study, 23 per cent of the respondents use Economic Value Added (EVA) as an internal reporting measure, and an average of 19 per cent use other metrics; A total of 89 per cent of respondents indicated that they strongly agree with the use of incentives for motivation. The above-mentioned points were covered by means of 4-M framework ― that is: Measurement, Management, Motivation, and Mindset.
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- Date Issued: 2005
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.
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- Date Issued: 2005
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
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- Date Issued: 2005
The identification of a model to promote intrapreneurship in an automotive component company
- Authors: Du Preez, Catherine Amanda
- Date: 2005
- Subjects: Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8549 , http://hdl.handle.net/10948/423 , Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Description: South African organisations are facing a new era of intense global competition. The modern business world is characterised by change and this change presents both challenges and opportunities. As a result, organisations have to become more responsive to change by continuous, rapid and cost-effective innovation through integrating the strengths of the entrepreneurial small firm, such as creativity, flexibility and innovativeness, with the market power and resources of the large firm. Due to the dynamic nature of the automotive industry, it is vital that South African organisations and management identify creativity and innovation as the main sources of sustainable competitive advantage. Sustained competitive advantage is derived from consistently satisfying customers’ wants and needs through innovation. An intrapreneurial philosophy is of key importance to an organisation’s corporate strategy, ensuring that entrepreneurial values are incorporated into the culture of the organisation. This study took place within an automotive component company operating in the Eastern Cape. Based on the theoretical findings of the literature study a questionnaire was developed and distributed to all employees of the company. The objective of the questionnaire was to measure the prevalence of intrapreneurship within the company and based on the findings of the literature study, recommendations on the structure, systems, culture and management styles of the organisation were made. Finally, a model was developed that identifies the importance of innovation, customer-solution centeredness and being market driven as core strategic values.
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- Date Issued: 2005
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.
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- Date Issued: 2006
Key factors required to be classified as a world-class supplier from a South African automotive industry perspective
- Authors: Cook, Gavin Trevor
- Date: 2009
- Subjects: Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9335 , http://hdl.handle.net/10948/935 , Automobile industry and trade -- South Africa
- Description: Over and above the fact that South African automotive business firms do not have the advantages of a major domestic market and are far removed from the major world markets, they face the challenges of operating in a tough and ever-changing environment. This environment is characterised by a global recession, aggressive global competition, high inflation and more demanding customers. To overcome these obstacles and to ensure their continuous success and existence, these domestic firms need to create a competitive advantage. The establishment of such a competitive advantage is dependent on a number of factors which mainly include sourcing from a world-class supplier base in terms of price, quality and service delivery. The main objective and central theme of this study is to determine the factors that are required by a supplier in the South African automotive industry to be classified as a world-class supplier. In support of the main objective, it was necessary to source the reasons why a firm would find it important to trade with a world-class supplier base, and to determine whether the current levels of supplier performance as experienced by buying firms in the Eastern Cape automotive industry, could be regarded as world-class. Furthermore, the study set out to determine the consequences to customer firms of inferior supplier performance, as well as the actions currently taken and support programmes in place to bring suppliers in line with world-class standards. As a starting point to the study, a literature review was undertaken which revealed the definite interdependence between a business firm and the environment in which it operates. The review underlined the need for environmental scanning as a means to proactively manage the impact of environmental changes on a firm. Porter’s value chain and business process re-engineering, as discussed in the study, are also perceived as means to manage environmental changes. The literature study further revealed some of the latest business trends followed by automotive business firms, as well as the expected supplier buy-in to ensure success. A statistical analysis on the quantitative data gathered, grouped specific items (questions) that relate to the study’s main objective with three respective individual supplier performance areas. A confirmatory factor analysis which focused on the three factors, namely quality, pricing and service delivery was carried out to assess the validity of the questions used for gathering the research data. The Cronbach Alphas determined for the three factors portrayed the reliability of the research instrument as acceptable. The empirical study revealed a few main factors that automotive business firms strongly perceive as being key to the establishment of a world-class supplier base. These factors are: a culture of continuous improvement; consistently meeting delivery deadlines by being able to respond to customer schedule changes; quoting fair prices and having respect for business ethics; as well as the consistent application of a quality policy which leads to conformance to specifications and subsequent high levels of product reliability. The empirical study also identified the following benefits enjoyed by customer business firms when trading with a world-class supplier base: Firms are able to be more flexible to customer schedule changes; they receive products that meet specifications; and they are able to operate at lower costs. The empirical findings with regard to the current level of supplier performance in the Eastern Cape Province automotive industry highlighted mainly three problem areas. These are late deliveries; the inability of suppliers to respond to customer schedule changes; as well as a lack of continuous improvement. Late deliveries which lead to production stoppages, with its resultant high costs, as well as the receipt of below-par quality products, were revealed as the main consequences when dealing with suppliers whose performance are not world-class. The main actions taken and programmes or incentives offered by automotive business firms to bring inferior suppliers more in line with world-class performance, include the rewarding of good suppliers by granting them more business; applying formal supplier performance evaluations; and having regular supplier audits.
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- Date Issued: 2009
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.
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- Date Issued: 2011
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.
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- 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
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
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.
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- Date Issued: 2012
An evaluation of changes in capital investment by automotive companies in preparation for the Automotive Production and Development Programme (APDP)
- Authors: Bacela, Bandile Sakhekile
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Capital investments -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8797 , http://hdl.handle.net/10948/d1016075
- Description: To thrive, developing countries depend on high levels of protection being given to key industries such as manufacturing; specifically the automotive and textile industries. South Africa, as a developing country and especially under the emergence of globalisation, has followed suit in terms of developing policies and structures to protect certain critical industries. During an era (1980 to 1989) of high political instability, South Africa experienced isolation from the rest of the world, which resulted in declines in industrial revenues as well as the country’s automotive industry undergoing a stage of perilous stagnation. It was through a protection regime that the automotive industry realised growth, a regime which started slowly in 1989 and accelerated in 1995 with the introduction of the Motor Industry Development Programme (MIDP) (Black, 2001). Through this regime the South African government sought to integrate the South African automotive industry into the global market by improving the competitiveness of this industry (The DTI, 2010). This led to the automotive industry becoming one of the most successful export sectors in South African manufacturing and a large net consumer of foreign currency, totalling R20 billion and R10 billion in imports and exports respectively by 1998 (Damoense and Simon, 2004). Reviews of the government legislation called the MIDP were held in year 1999 and 2002 and in 2008, a successor to the MIDP was named, the Automotive Production Development Programme (APDP) and is set to commence in year 2013 until 2020. Unlike its predecessor, the APDP policy promises to bring greater and more inclusive benefits to the automotive industry as a whole, provided organisations have prepared well to receive it. This study investigated whether organisations have prepared for the upcoming 2013 - 2020 APDP, with specific reference to capital investment in equipment. It determined whether automotive organisations have spent and are going to spend resources in securing equipment and technology in preparation for the introduction of the APDP.
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- Date Issued: 2012
Entrepreneurship : key to organisational performance a case of Volkswagen Group of South Africa
- Authors: Lechaba, Junior
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Bureaucracy -- South Africa , Entrepreneurship -- South Africa , Organizational sociology
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8832 , http://hdl.handle.net/10948/d1019791
- Description: Intrapreneurship expresses organisational activities aimed at increasing quality of products, reducing production cost, capture or creates new product markets, and/or improving processes and services. This research study covers the investigation of potential influences on the intrapreneurial activity within an established organisation, and the possible outcome on financial performance. In the rapidly changing business environment of today, it has become necessary for the organisations to move from boundary-oriented thinking to continuous improvement in order to provide the disruptive competitive advantages necessary to survive and thrive in an environment where the ‘rules of the game’ change quickly in almost all companies and industries (Voelpel, Leibold and Tekie, 2005). Moreover, the automotive industry is no exception to this rule. In general, established companies deal with two significant challenges. First, they have to adapt to the external challenges of constantly changing and developing markets to keep pace with rapid technological evolution, globalisation, and progressively sophisticated competitors (Kemelgor, 2002; Kuratko, Hornsby and Goldsby, 2004). Second, they must deal with the internal challenges of modernising bureaucratic structures and processes, which can lead to slow development, decision-making and an inability to adapt easily to new situations (Hammer and Champy, 1994). In today's context of increasing market globalisation, companies wishing to maintain their competitiveness must innovate constantly (Carrier, 2001). Recognising the importance of meeting these challenges, organisational leaders must create high performance organisations in order to compete in a global mega-economic world. The old ways of doing business as usual and overwhelmed policies and procedures must be rooted out in order for the organisation to compete by identifying and sustaining diversified employees within a global economy (Kennedy, 2010). Companies generally engage in innovation for achieving an increase in quality of products, a reduction in production cost, capture or create new product markets, and reduce the firm’s reliance upon unreliable factors of production (Webster, 2004). There is a growing consensus that established companies must nurture intrapreneurial activity throughout their operations to continue to compete successfully (Sathe, 2003). Numerous authors have suggested intrapreneurship as a method of stimulating innovation and using the creative energy of employees by giving them the resources and independence they need to innovate within the firm (Carrier, 2001; Amo and Kolvereid, 2005). However, there is a certain amount of ambiguity around the concept of intrapreneurship, and this may lead to questions about the difference between intrapreneurship and intrapreneurship (Carrier, 2001). It is therefore important, before introducing the object of this research, to look more closely at the concept on which intrapreneurship is based, and to examine the trends in the research on intrapreneurship. The research conducted by Eesley and Longenecker (2006) suggest that intrapreneurship is a practice of creating new business products and opportunities in an organisation through proactive empowerment and risk-taking. This is considered a key component to organisational success; especially in organisations that operate in rapidly changing industries (Eesley and Longenecker, 2006). Intrapreneurship can manifest itself at every level of the company and regardless of the nature of the position held. Hence, we could have intrapreneurs in technical or non-technical functions; senior, middle or junior management levels; line or staff functions, and manufacturing or service related roles. Beyond this wide perspective, other authors have suggested that intrapreneurship requires a culture built around emotional commitment, autonomy, empowerment, earned respect, and a strong work ethic (Axtell, Holman, Unsworth, Wall, Waterson and Harrington, 2000). They believed intrapreneurship is inseparably connected with leadership, since it involves mobilising teams of people towards a cause much greater than the individuals involved often in the face of significant resistance from status quo preserving forces within and outside the organisation (Seshadri and Tripathy, 2006). Therefore, the failure of organisations to take members inputs on organisational improvement; sanction, promote and encourage risk-taking, empowerment, and improvement actions; give clear organisational direction, priorities, and objectives; and lack of top management support in risk-taking and improvement initiatives, could stifle intrapreneurship (Eesley and Longenecker, 2006). In light of the scope and the group target, intrapreneurship can be considered beneficial for the revitalisation and performance of companies, both large corporations and small and medium-sized enterprises. Previous research conceptualised intrapreneurship in terms of four dimensions that were somewhat distinct in terms of their activities and orientations (Antoncic and Hisrich, 2001): New business venturing; Innovativeness; Self-renewal; and, Proactiveness. The intended contribution of this study is to make use of a self-constructed measuring instrument to demonstrate that intrapreneurship has had a positive influence on corporate performance within an established organisation, in the automotive industry of South Africa. This study can be viewed as a reciprocal contribution to companies seeking to create an intrapreneurial climate aimed, on the other hand at creating high performance organisation and on the other hand to motivate professionals in these companies requiring a wider portfolio of significant knowledge and skills development.
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- Date Issued: 2012