scholarly journals Effectiveness of the Design of Experiments (DoE) on variation reduction : empirical evidence for the automotive component-manufacturing sector in South Africa

2012 ◽  
pp. 50-55
Author(s):  
Robert Walter Zondo ◽  
Keyword(s):  
South Africa ◽  
Design Of Experiments ◽  
Business Performance ◽  
Manufacturing Sector ◽  
Middle Level ◽  
Manufacturing Companies ◽  
Process Variability ◽  
Automotive Component ◽  
Variation Reduction ◽  
Component Manufacturing

In today’s modern manufacturing environment, any process variability is an attack on quality and throughput. Variability reduction is paramount and necessary if higher levels of quality are to be obtained. Hence, this study evaluates the effectiveness of the Design of Experiments (DoE) as a strategic tool for reducing variation in the automotive component manufacturers in South Africa. As with the evolution of the manufacturing process, methods to identify and eliminate process variability are developed. Most of these methods are based on statistical DoE. A DoE is a test or series of tests that enables the experimenter optimise the yield of a process or minimise variability. Consequently, this study focuses on the effectiveness of DoE for variability reduction in the automotive sector in South Africa. Of the 193 individuals identified for participation, 164 completed the questionnaires. Middle-level Managers from four automotive component manufacturing companies in the eThekwini District Municipality participated in the study. The study investigated production and the related experiences of the automotive component manufacturing companies that have adopted a DoE strategy. Descriptive and correlation were used to analyse data. The results indicates that DoE reduces product variation in the automotive component manufacturers in South Africa. In order to maximise performance, a comprehensive variability reduction policy must be developed, which aligns DoE tools to business performance. DoE has the ability to screen a large number of variables to find important ones during product reformulation process in the Product and Development functional areas.

scholarly journals Incentives for the manufacturing sector: what South Africa can learn from Malaysia and Singapore

2015 ◽  
Vol 8 (1) ◽  
pp. 105-124
Author(s):  
Lenatha Wentzel ◽  
Kerry De Hart
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Foreign Investment ◽  
Manufacturing Sector ◽  
South African Government ◽  
Manufacturing Companies ◽  
The South ◽  
African Government ◽  
Similarities And Differences

The expansion of the manufacturing sector is one of the South African government’s focus areas for economic growth and employment creation. The research on which this article is based identified additional incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. The incentives provided to manufacturing companies by the governments of Malaysia and Singapore and those provided by the South African government are compared in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for additional incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in the country.

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 Factors influencing the adoption of management accounting practices (MAPs) by small and medium enterprises (SMEs) in the manufacturing sector in Durban

2020 ◽  
Author(s):  
◽  
Mbali Portia Msomi
Keyword(s):  
South Africa ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Management Accounting ◽  
External Factors ◽  
Critical Factors ◽  
Factors Influencing ◽  
Start Up ◽  
Medium Enterprises

Most countries recognise small and medium enterprises (SMEs) as a key element in strengthening the economy and in reducing the high unemployment rate that is currently prevailing globally and especially in South Africa. Although these enterprises contribute significantly towards the economy, they often fail to survive beyond their start-up phase due to a number of challenges affecting their business life-cycle. These challenges stem from both internal and external factors and, if not curbed during the initial phase of the enterprise, they may cause the business to fail prematurely. Common causes of failure include, but are not limited to, difficulties encountered in gaining access to start-up capital; a lack of entrepreneurship or business management skills; a lack of appropriate business education along with a lack of any culture of innovation or of networking skills amongst their owner/managers. Finally, there is frequently a failure to adopt management accounting practices (MAPs). It is with this last issue that this research is concerned. MAPs are techniques used to provide management with financial and non-financial information to facilitate the planning, controlling and decision making process of an organisation. These techniques are recognised to improve business performance and sustainability substantially, and the application of these techniques is often seen as determining the success or failure of an enterprise. However, there has been some concern around the adoption of MAPs amongst manufacturing SMEs, especially in the South African context. Hence, the aim of this study was to explore the critical factors influencing the adoption of MAPs by SMEs in the manufacturing sector in South Africa using a case study of businesses located in and around Durban. The aim was also to provide informative guidelines to promote the facilitation of MAP practices. A quantitative research approach was adopted involving non-probability, purposive sampling to ensure that the relevant participants were chosen. A sample consisting of 202 participants was considered appropriate for a population with over 1050 manufacturing SMEs registered in Durban (Department of Trade and Industry report 2016/17). A questionnaire was used to collect data from the participants in the study. A pilot test was conducted to ensure that the research instrument was adequately prepared. The data collected were analysed using the Statistical Package for the Social Sciences (SPSS) version 26.0, and the results were presented using graphs, tables and charts. The results of the study showed that both traditional and contemporary MAPs are regarded as relevant in this changing business environment. Manufacturing SMEs still see the significance of using traditional MAPs, although with the new industrial revolution taking over globally, more sophisticated new MAPs have been implemented by several manufacturing SMEs, and this has proved more effective in their gaining a competitive edge and demonstrating innovation and thus in achieving market success. The findings of this study are therefore in a position to contribute towards promoting the adoption of appropriate up-to-date MAPs that are more technically advanced to meet current management needs. The findings also revealed that the key internal factors identified by the respondents in this adoption process were: the owner’s business experience and skills, the firm’s structure, its size, and changes in the firm’s size. Amongst the external factors, the results of the study showed that competition, technology, market innovation, market success, and networking with other businesses, were regarded as the predominant factors influencing the adoption of MAPs by manufacturing SMEs in the Durban area. Although the study was able to identify these critical factors influencing the adoption of MAPs, the results were limited to those views expressed by the responding stakeholders from manufacturing SMEs located in the Durban area, and therefore can only be generalised with caution. The study recommends that both traditional and contemporary MAPs should be adopted upon the inception of a business, and that the relevant stakeholders should invest in educating themselves so that they can have a better understanding of the available MAPs, and their adoption and implementation within their business processes. The study further recommends that manufacturing SMEs identify and adopt the most appropriate MAPs to promote cost effective measures, optimise business performance and ensure sustainable growth. The effective adoption of MAPs would also be aided if stakeholders were to make more use of government supporting agencies allowing them to benefit from further financial assistance, mentorship and training of staff.

Assessing lean implementation and benefits within Indian automotive component manufacturing SMEs

2020 ◽  
Vol 27 (3) ◽  
pp. 1042-1084 ◽  
Author(s):  
Saumyaranjan Sahoo
Keyword(s):  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Management Practices ◽  
Manufacturing Sector ◽  
Shop Floor ◽  
Automotive Component ◽  
Content Type ◽  
Study Approach ◽  
The Status ◽  
Component Manufacturing

PurposeThe purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits, motivation, and challenges of implementing lean manufacturing practices.Design/methodology/approachThe research objectives were achieved by conducting a qualitative multicase study approach. Fourteen Indian automotive component manufacturing small and medium-sized enterprises (SMEs) were chosen based on their different product offerings as well as differing approaches to the introduction and implementation of lean initiatives. Data were collected through in-depth, semistructured interviews supported by shop-floor observations.FindingsThe findings from the present study suggest that some of the participating automotive component manufacturing SMEs have a relatively good understanding of lean concepts and philosophy. However, there is room for further improvement for most SMEs. Major top five lean practices being implemented were found to be cellular manufacturing, total productive maintenance, 5S, work standardization, and quality management practices. Also, leadership and organizational culture were found to be crucial factors for the success of lean manufacturing.Research limitations/implicationsThe fact that the data collected for the research study is based on subjective business evidence obtained from company representatives comprises the main limitation of the present study. So, the results should be considered with caution, as far as the lean adoption in Indian automotive component manufacturing sector is concerned.Practical implicationsBased on the present study, suggestions can be made regarding the successful adoption of lean principles, not only for the participating SMEs but also for the whole of the automotive component manufacturing sector. More specifically, by determining the strength and weakness of automotive component manufacturing SME's effort to adopt lean, suitable managerial initiatives can be undertaken by these companies as well as the whole sector to fully adopt lean and derive the respective benefits.Originality/valueThis paper explores the status of lean adoption in Indian automotive component manufacturing SMEs. Considering the unique characteristics of the automotive component manufacturing industry, the present research would be helpful for making strategies to implement lean in automotive component manufacturing industry setups.

scholarly journals Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Manufacturing Sector

Mathematics ◽  
2021 ◽  
Vol 9 (22) ◽  
pp. 2973
Author(s):  
Fernando Gimeno-Arias ◽  
José Manuel Santos-Jaén ◽  
Mercedes Palacios-Manzano ◽  
Héctor Horacio Garza-Sánchez
Keyword(s):  
Customer Satisfaction ◽  
Human Resources ◽  
Structural Equation ◽  
Business Performance ◽  
Corporate Performance ◽  
Manufacturing Sector ◽  
Human Resources Management ◽  
Manufacturing Companies ◽  
Mediating Role ◽  
Food And Beverage

Although in recent decades corporate social responsibility (CSR) has been subjected to numerous studies in management and marketing literature about its impact on business results, the mechanism by which it affects performance has not been established. There is a lack of consensus when it comes to explaining how CSR actions are related to firm performance. Our research helps to understand this relationship through mediating effects such as CSR-oriented human resource management and customer satisfaction because employees and customers are critical stakeholders of companies and contribute directly to the determination of the corporate results. Through a study on a sample of small and medium-sized Spanish food and beverage manufacturing companies, and by using partial least squares structural equation modelling (PLS-SEM), we found that CSR does indeed impact business performance when CSR actions are mainly oriented towards more efficient management of human resources and customer satisfaction. In this way, the results lead us to conclude that depending on the stakeholder to which these actions are oriented, a specific orientation of the company’s CSR policy can be more efficient in corporate performance.

Structural Mediation Model of Information System and Sustainable Performance of UAE Manufacturing Sector

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Mohamed Ahmed Darwish Abdulla Larii ◽  
◽  
Fatma Ahmed Lari ◽  
Mohamed Ahmed Darwish Abdulla Lari ◽  
◽  
...  
Keyword(s):  
Information System ◽  
Manufacturing Sector ◽  
Organisational Culture ◽  
The Body ◽  
Mediating Effect ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Mediation Model ◽  
Sustainable Performance ◽  
The Relationship

This study intends to find out the mediating effect of organisational culture on the relationship between information system and sustainable performance of manufacturing sector in UAE. This study used AMOS-SEM software to develop mediation model that linking the mediating relationships between Information System, Organisational Culture and Sustainable operation Performance. Data was collected through questionnaire survey among the operation staff of Abu Dhabi manufacturing companies. A total 250 questionnaires were distributed however 205 were returned and only 200 are valid which indicates a response rate of 80%. The analysis found that TPS has positive but not significant effect to SP; OIS has positive but not significant effect to SP; FMW has a positive and significant effect on SP; SDS has a negative and not significant effect to SP and SP has positive but not significant effect OC. For the path relationship between the four exogenous variables (TPS, OIS, SDS, and FMW) and the mediator variable (OC), the results are TPS has positive and significant effect to OC; OIS has positive but not significant effect to OC; FMW has positive and significant effect to OC and SDS has positive and not significant effect to OC. Collectively, the five exogenous constructs (TPS, OIS, SDS, FMW and OC) explained 89% variation in operational performance and 86% of the variation in organisational culture. However, for a mediator, it was found that OC has no significant mediating effect on the relationship between TPS and SP; OC has no significant mediating effect on the relationship between OIS and SP; OC has no significant mediating effect on the relationship between SDS and SP and OC has no significant mediating effect on the relationship between FMW and SP. it can be concluded that there is a positive relationship between information system dimensions and operational performance. However organizational culture has no contributing any mediating effect to the relationship. These findings have contributed to the body of knowledge and could be shared among the UAE manufacturing practitioners.

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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