scholarly journals The impact of gainsharing in the automotive parts manufacturing industry of South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Robert W.D. Zondo
Keyword(s):  
South Africa ◽  
Capital Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Manufacturing Companies ◽  
High Productivity ◽  
Automotive Parts ◽  
Parts Manufacturing ◽  
The Impact

The majority of South Africans expect greater prosperity that can be accomplished through greater employment, high productivity and wage increases. Increased productivity can finance higher wages without burdening the customer with higher selling prices. Consequently, there should be strong co-operation between management and labour to improve productivity, thereby ensuring the survival of South African companies. To achieve this objective, organisations find themselves turning to their employees for creative suggestions and ideas on better ways of doing things. This sentiment underpins the concept of gainsharing. Gainsharing is a formula-based company-wide programme that offers employees a share in the financial gains of a company as a result of its improved performance. This motivation boosts a company’s productivity and radically reduces the cost of waste, spoilage, rejects and rework. This study examined the impact of a gainsharing programme on the improvement of labour productivity in the automotive parts manufacturing sector. The study investigated the production and related experience of two automotive parts manufacturing companies (referred to as A and B in this study) that have adopted a gainsharing strategy. The two companies operate in the eThekwini District Municipality in KwaZulu-Natal. It assessed if gainsharing is responsible for company labour productivity improvements. The investigation was achieved by collecting pre- and post-gainsharing quarterly data for spoilage, absenteeism, capital investment and labour productivity. Gainsharing improves labour productivity and reduces spoilage and absenteeism rates. In order to maximise performance, a comprehensive performance policy must be developed, which aligns pay (and other incentives) to performance. The study uncovered the strengths and weaknesses of gainsharing for labour productivity improvement in South Africa.

scholarly journals The impact of Training and Assessment Register (TAR) on productivity in the automotive parts manufacturing organisation in South Africa

2019 ◽  
Vol 17 ◽  
Author(s):  
Robert W.D. Zondo
Keyword(s):  
South Africa ◽  
Manufacturing Sector ◽  
Training Model ◽  
Productivity Improvement ◽  
Quarterly Data ◽  
Customer Complaints ◽  
Automotive Parts ◽  
Two Phases ◽  
Parts Manufacturing ◽  
The Impact

Orientation: Organisations are confronted with the challenge of competency among its employees for productivity improvement. They implement strategies that improve employee skills proficiencies for higher productivity. These can also be achieved by implementing a training model that develops employee’s skills and knowledge so that they become the specialists in their work areas. This sentiment underpins the concept of employee Training and Assessment Register (TAR).Purpose: This study evaluates the influence of TAR on productivity in automotive parts manufacturing organisation in South Africa.Motivation for the study: The South African manufacturing sector has a low level of productivity compared to its counterpart industries in the Asian and Western countries. The sector experiences the lack in short to medium term growth in productivity.Research design, approach and methods: The automotive parts manufacturing company that has used a TAR strategy for productivity improvement participated in the study. The study objectives were achieved by examining the production and related experiences in the company. The collection of data was carried out in two phases. This includes the collection of pre- and post-quarterly data for spoilage, overtime and customer complaints. The pre-TAR results were quarterly data reflecting the company’s performance over the three-year period prior to the implementation of TAR. This company operates in the eThekwini District Municipality in KwaZulu-Natal.Main findings: The results established that spoilage rate has a relationship with company productivity. Any decrease in spoilage rate would result to an increase in company productivity. However, the overtime and customer complaints do not statistically have a relationship with company productivity.Contribution: This article uncovers the strengths and weaknesses of TAR on productivity in the automotive parts manufacturing organisation in South Africa.

scholarly journals The influence of a 360-degree performance appraisal on labour productivity in an automotive manufacturing organisation

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Robert W.D. Zondo
Keyword(s):  
Performance Appraisal ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Appraisal System ◽  
Productivity Improvement ◽  
Automotive Manufacturing ◽  
Performance Appraisal System ◽  
Automotive Parts ◽  
Parts Manufacturing

Background: South Africa’s (SAs) decline in labour productivity in the manufacturing sector is a cause for concern. The sector turns to employees for innovative productivity improvement initiatives. Employees need to know what activities they are currently performing that need to improve. This is where a 360-degree performance appraisal system plays a growing role. The 360-degree performance appraisal is a valuable tool that provides an opportunity for employees to work together to identify strengths and areas that need improvement. Aim: This study investigates the influence of a 360-degree performance appraisal system for the improvement of labour productivity in the automotive parts manufacturing sector in SA. Settings: The study investigated the production and related experiences of an automotive parts manufacturing company that has adopted a 360-degree strategy. The company operates in the eThekwini district Municipality in KwaZulu-Natal. It assessed if 360-degree performance appraisal is responsible for the company’s labour productivity improvements. Methods: The investigation was achieved by collecting pre- and post-360-degree quarterly data for spoilage, absenteeism, capital investment and labour productivity. Results: The 360-degree performance appraisal has no influence on labour productivity improvement. However, past capital investment plays a significant role in labour productivity increase. Results also showed a relationship between spoilage rate and labour productivity improvement. Conclusion: In order to maximise performance, a comprehensive performance policy must be developed, which aligns employee appraisal to performance. The study uncovered the strengths and weaknesses of a 360-degree performance appraisal system for labour productivity improvement in SA.

scholarly journals Evaluating the effectiveness of a gainsharing programme for labour productivity improvement

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Robert W.D. Zondo
Keyword(s):  
Performance Appraisal ◽  
South African ◽  
Labour Productivity ◽  
The United States ◽  
Manufacturing Companies ◽  
Appraisal System ◽  
The South ◽  
Productivity Improvement ◽  
Automotive Parts ◽  
Parts Manufacturing

Orientation: Companies are faced with the challenge of promoting innovation for productivity improvement among employees. They create a work environment that promotes worker participation for productivity improvement. This sentiment underpins the concept of gainsharing.Purpose: This study evaluated the effectiveness of a gainsharing programme for productivity improvement in automotive parts manufacturing companies in South Africa (SA).Motivation for the study: SA’s labour productivity, in the manufacturing sector, is low when compared with Korea, the United States of America, Taiwan, Japan, France and the United Kingdom. Hence, this study focused on gainsharing, given the low labour productivity levels in the South African manufacturing industries.Research design, approach and method: The two automotive parts manufacturing companies that have adopted a gainsharing strategy participated in the study. A third automotive parts manufacturing company that has adopted the 360-degree performance appraisal system was included for comparative purposes. These companies operated in the eThekwini District Municipality in KwaZulu-Natal. Study objectives were achieved by collecting pre- and post-quarterly data for spoilage, absenteeism, capital investment and labour productivity.Main findings: Results established that gainsharing improves productivity and reduces spoilage and absenteeism rates.Managerial implication: The South African companies are encouraged to revise their reward philosophies and develop strategies, policies and practices that help achieve productivity goals and support organisational change.Contribution: Gainsharing is a desirable alternative as it contributes to raising the competence levels and productivity improvement of an organisation. As a comparison, the 360-degree performance appraisal does not have an impact on labour productivity.

scholarly journals Neo-liberalization: the impact of Chinese exports on South Africa’s sociopolitical economy

2017 ◽  
Vol 15 (1) ◽  
pp. 124-131
Author(s):  
Samuel Augustine Umezurike ◽  
Chux Gervase Iwu ◽  
Lawrence Ogechukwu Obokoh ◽  
Chinelo Augustine Umezurike
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Quota System ◽  
Realist Theory ◽  
Standards Of Living ◽  
Liberal Approach ◽  
The Impact

On gaining independence, one of the first steps it took was to open its doors to various socio-economic dynamics. It is fair to say, therefore, that South Africa’s neo-liberal approach was necessitated by the nation’s desire to diversify its economy in multiple sectors and, therefore, permit foreign direct investment into the country. To most researchers, this has resulted in near deindustrialization leading to gross job losses and reduced standards of living. Essentially, this paper, relying on realist theory, delves into one of the issues, i.e., the demise of the manufacturing sector in South Africa to deliver the poignant explanation pertaining to South Africa’s sociopolitical economy. The authors find that the presence of China’s finished products in South Africa’s market has emboldened and continues to debilitate its manufacturing industry. A major concern is that South Africa’s attempts to soften this effect on its manufacturing sector through its protectionist policy – precisely the application of the quota system on imported goods – will not go too far considering the limitations placed on South Africa by virtue of its membership in organizations such as WTO and BRICS.

scholarly journals THE IMPACT OF INDUSTRY REVOLUTION 4.0 TOWARDS THE READINESS OF EMPLOYEE IN MANUFACTURING SECTOR IN JOHOR BAHRU, MALAYSIA

2021 ◽  
Vol 6 (24) ◽  
pp. 27-33
Author(s):  
Mohd Khairulnizam Zahari ◽  
Wan Norsyafawati W. Muhamad Radzi
Keyword(s):  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Employee Performance ◽  
Manufacturing Industries ◽  
Manufacturing Companies ◽  
Performance Effect ◽  
Technology Changes ◽  
Manufacturing Growth ◽  
The Impact ◽  
The Relationship

Industry Revolution 4.0 is an important upcoming concept for our current manufacturing industry. Industry Revolution 4.0 (IR4.0) can change the manufacturing industry to the next level and also enhance the image of the country. The purpose of this research is to study the readiness of the employees towards the implementation of IR4.0 in manufacturing industries in Johor Bahru, Malaysia. The objective of the research is how the technology, changes in consumers’ behaviour and environment, and employee performance effect the readiness of employees in the manufacturing sector to implement IR4.0. The current problems are facing by Malaysia are the dependability of foreign labours for production in manufacturing industries and Malaysian manufacturing growth still stuck in Industry 2.0. This research is a quantitative method and used questionnaires to collect data. Total 333 questionnaires were distributed to manufacturing companies in Johor Bahru. Based on the regression analysis result, the relationship between the changes in consumers’ behaviour and environment and employee performance is compatible with the readiness of employees in implementing IR4.0. However, the relationship between technology and the dependent variable was less compatible. Therefore, our country should enhance the usage and level of technology to implement IR4.0 to enhance the readiness of employees in the manufacturing industry.

scholarly journals Labour Productivity Improvement in an Automobile Component Manufacturer Machine Shop using Lean Tools

2019 ◽  
Vol 8 (11) ◽  
pp. 2915-2920
Keyword(s):  
Automotive Industry ◽  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Labour Productivity ◽  
Shop Floor ◽  
Business Growth ◽  
Productivity Improvement ◽  
Automotive Parts ◽  
Parts Manufacturing

Productivity Improvement has become an important goal for today’s automotive industry, as the customer demand is increasing every day. Organisation takes this as an opportunity to improve the business potential. Implementation of lean manufacturing tool results in productivity improvement and cost reduction in several companies. There is a strong correlation between productivity and labour productivity. Labour productivity improvement has a direct impact on business growth. This article presents a case study on application of lean manufacturing tool “Eliminate Combine Rearrange Simplify (ECRS)” in the manufacturing industry. This work is carried out in a medium scale automotive parts manufacturing company where all kinds of machining operation is taken place and the output of the product is supplied to vehicle manufacturer. This case study is illustrating increase in labour productivity in an automobile component machining line by applying the ECRS technique. Vertical Machining centre, Combination of tool, man and machine concept is used for implementing ECRS technique in the machining line. After implementation there is significant increase in labour productivity and reduction in throughput time and saving of space on the shop floor.

Fuzzy based association between China’s service industry and downstream manufacturing industry with liberalization effects

2021 ◽  
Vol 40 (4) ◽  
pp. 8463-8476
Author(s):  
Ling Yang ◽  
Linyue Li
Keyword(s):  
Manufacturing Industry ◽  
Service Industry ◽  
Firm Heterogeneity ◽  
Manufacturing Sector ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Performance Criteria ◽  
Manufacturing Companies ◽  
Manufacturing Productivity ◽  
The Impact

In this work, we study the impact of China’s services sector liberalization reform on the country’s manufacturing sector. In this paper we propose Fuzzy based association between service industry and Manufacturing Industry with performance evaluation of Manufacturing Industry based on different performance criteria. The results analysis of proposed work suggest that there is: a extremely important and constructive relationship between the existence of reserved services suppliers and the efficiency of downstream manufacturing companies; a constructive (yet unsteady) relationship between the existence of overseas services suppliers and manufacturing efficiency; and a important and adverse relationship between the extent of state-owned services providers and manufacturing productivity. Curiously, our results also suggest that given the unstable association between the presence of foreign services providers and manufacturing performance, overall imported services (including foreign services providers operating in China) have a highly significant and positive association with manufacturing productivity. In addition, taking into account firm heterogeneity, such as AI (artificial intelligence), our results suggest that there is no difference in the above effects of China’s services sector’s liberalization between those manufacturing firms that engage in importing and exporting and the manufacturing firms that do not.

The impact of applying the Common Customs Tariff on the armenian export of Cut and Polished Gems to Russia

2019 ◽  
pp. 33-41
Author(s):  
V. L. Harutyunyan ◽  
S. V. Dokholyan ◽  
A. R. Makaryan
Keyword(s):  
Manufacturing Sector ◽  
Practical Implication ◽  
Dominant Role ◽  
New Technology ◽  
Manufacturing Companies ◽  
Medium Term ◽  
Diamond Cutting ◽  
Global Trends ◽  
The Common ◽  
The Impact

The presented study discusses the issues of applying the Common Customs Tariff (CCT) rates of the Eurasian Economic Union (EAEU) on rough diamonds and the impact thereof on the exports of stones cut and polished inArmeniaand then exported toRussia.Aim. The study aims to identify the possible strategies Armenian diamond cutting and polishing companies could adopt as a response to the application of the CCT rates on rough diamonds and how it would affect exports to various destinations, namely to Russia.Tasks. The authors analyze the current state of the gems and jewelry sector and substantiate the need to either integrate it into the jewelry manufacturing sector or to apply various strategies to facilitate exports to either Russia or other destinations in the medium term in response to the application of the CCT rates.Methods. This study uses general scientific methods of cognition, including analytical and methodological approaches and elements of forecasting. Possible strategies the Armenian diamond cutting and polishing companies could adopt in the medium term in response to the application of the EAEU CCT rates are determined using the analytical research method, forecasts in the context of the developments in the Armenian gem processing and jewelry market and global trends, statistical data on the imports and exports of cut and polished gems and jewelry for 2014–2018 published by the UN Comtrade Statistics.Results. Statistics on the exports of processed diamonds from 2014 to 2018 highlights the issue associated with the loss of competitiveness suffered by Armenian companies (mainly in comparison with Indian diamond cutters). The major global trends in the diamond cutting and polishing business indicate that it could be virtually impossible for Armenian cutters and polishers to compete with Indian companies in the medium term if they do not comes to investing in new technology to achieve operational efficiency. For these companies, it is important not to lose the Russian market due to an increase in the tariff rate and concentrate on the processing of gems that are larger than 1 carat. Another strategy to avoid an increase in the customs tariff rates would depend on the Armenian government’s ability to negotiate with Russia in respect of direct imports of diamond stones from Russian manufactures. Two other options for Armenian cutters involve focusing on cutting and polishing of rubies, sapphires, emeralds, etc. or integrating into the jewelry sector either by being the primary supplier or by considering this business as a channel to sell processed diamond stones by setting up their own jewelry manufacturing companies.Conclusions. With CCT going into effect in January 2021 and India’s dominant role in the diamond cutting and polishing business, Armenia needs to carefully consider all of the strategies the Armenian companies could adopt, as discussed above. As a member state of the EAEU, Armenia freely exports to Russia, however, further exports to Russia would depend on Armenia’s ability to ensure that cost-effective operations are in place, or to concentrate on the processing of precious gems rather than diamonds, or to switch to the manufacturing of jewelry items as a major export item.Practical Implication. The findings of this study could be of interest to the Ministry of Economy of the Republic of Armenia and Business Armenia that could be used in elaborating the strategy for the development of Armenian gems and jewelry sector of the economy.

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