Assessing the impact of the lean manufacturing supplier development practices of an Eastern Cape vehicle manufacturer
- Authors: Botha, Christo Johannes
- Date: 2006
- Subjects: Production management , Automobile industry and trade -- South Africa -- Eastern Cape , Industrial procurement
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8558 , http://hdl.handle.net/10948/480 , Production management , Automobile industry and trade -- South Africa -- Eastern Cape , Industrial procurement
- Description: The world automotive industry has evolved through different manufacturing methodologies over many decades. It originated from craft production, but was transformed to mass production by Henry Ford in response to increased market demand. The methodology developed by Henry Ford made it possible to produce quality vehicles in large numbers and at affordable cost to the general public. However, it cannot deliver a great variety of products to the marketplace. Mass production was overtaken by a new automotive manufacturing methodology developed in Japan after World War II. The methodology, commonly referred to as lean production, yields consistently high quality products at even lower costs, whilst being able to deliver a variety of products to the consumer. The effectiveness of the lean production methodology hinges upon the strength and closeness of the relationships that exist between the assembler and its suppliers. Different models have been developed over time to describe the relationships between automotive assemblers and their suppliers. The lean supply model is generally accepted as an effective way of describing the relationships that exist between an automotive assembler and its first tier suppliers in a lean manufacturing environment. The research study aims at gaining an improved understanding of the relationships that exist between a selected Eastern Cape automotive assembler and its first tier suppliers. The effect of its supplier support practices towards lean manufacturing implementation amongst its first tier suppliers is evaluated. For the selected assembler it is found that the effect of its supplier support practices on lean manufacturing implementation amongst its first tier suppliers is limited by a non-uniform approach followed towards the supplier base. It is shown that opportunities for improvement exist for the selected assembler to develop closer relationships with its first tier suppliers to increase its global competitiveness.
- Full Text:
- Date Issued: 2006
- Authors: Botha, Christo Johannes
- Date: 2006
- Subjects: Production management , Automobile industry and trade -- South Africa -- Eastern Cape , Industrial procurement
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8558 , http://hdl.handle.net/10948/480 , Production management , Automobile industry and trade -- South Africa -- Eastern Cape , Industrial procurement
- Description: The world automotive industry has evolved through different manufacturing methodologies over many decades. It originated from craft production, but was transformed to mass production by Henry Ford in response to increased market demand. The methodology developed by Henry Ford made it possible to produce quality vehicles in large numbers and at affordable cost to the general public. However, it cannot deliver a great variety of products to the marketplace. Mass production was overtaken by a new automotive manufacturing methodology developed in Japan after World War II. The methodology, commonly referred to as lean production, yields consistently high quality products at even lower costs, whilst being able to deliver a variety of products to the consumer. The effectiveness of the lean production methodology hinges upon the strength and closeness of the relationships that exist between the assembler and its suppliers. Different models have been developed over time to describe the relationships between automotive assemblers and their suppliers. The lean supply model is generally accepted as an effective way of describing the relationships that exist between an automotive assembler and its first tier suppliers in a lean manufacturing environment. The research study aims at gaining an improved understanding of the relationships that exist between a selected Eastern Cape automotive assembler and its first tier suppliers. The effect of its supplier support practices towards lean manufacturing implementation amongst its first tier suppliers is evaluated. For the selected assembler it is found that the effect of its supplier support practices on lean manufacturing implementation amongst its first tier suppliers is limited by a non-uniform approach followed towards the supplier base. It is shown that opportunities for improvement exist for the selected assembler to develop closer relationships with its first tier suppliers to increase its global competitiveness.
- Full Text:
- Date Issued: 2006
The development of an integrated value chain cost reduction methodology
- Welman, Abraham Jacobus Frederik
- Authors: Welman, Abraham Jacobus Frederik
- Date: 2013
- Subjects: Corporations -- Finance -- Management , Manufacturing industries -- Cost control , Industrial procurement
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:8775 , http://hdl.handle.net/10948/d1012954
- Description: The reason for the existence of any company is to make a profit, which means increasing turnover and keeping costs as low as possible. Optimisation of the Value Chain and Procurement were identified as the two largest contributors when one needs to improve the bottom line of any company. The purpose of this research was to develop an integrated Value Chain and Procurement cost reduction methodology and system specifications for a software solution which captures, tracks and accurately reports the impact of the improvement initiatives. The main research question was structured as follows: What should the specifications of a software solution be that will integrate the cost reduction processes of the Value Chain and of Procurement, in a manner that will ensure maximum sustainable bottom-line savings for companies in the manufacturing or service industries? The objective was to define the key phases in the Value Chain and Procurement cost reduction process and to determine how and where they integrate. It is important to note that according the literature review and the survey, both the Value Chain and Procurement cost reduction processes consist of seven phases. The phases of the Value Chain cost reduction process were: Phase 1: Budget/ABC costing and data analysis; Phase 2: Generate ideas; Phase 3: Evaluate and approve ideas; Phase 4: Implementation planning and approval; Phase 5: Development of project (idea) specific KPI's; Phase 6: Implementation of ideas; Phase 7: Track and report savings. The phases of the Procurement (Strategic Sourcing) cost reduction process were: Phase 1: Team selection/data collection/spend analysis/work plan development Phase 2: Access requirements/internal and external analysis; Phase 3: Develop strategy/shape value proposition; Phase 4: Screen suppliers, issue RFI/P/Q, implementation planning; Phase 5: Conduct commercial event/negotiate/finalise contract; Phase 6: Implement contract; Phase 7: Contract management/track and reporting. The above two cost reduction processes integrate at each phase of the respective processes and should thus be implemented at the same time due to their interdependencies. Based on the findings of the research it was clear that an integrated Value Chain and Procurement cost reduction process alone is not going to solve the cost reduction problems of companies. It is essential for the successful implementation of the integrated cost reduction process to develop skills and knowledgeable resources to implement the integrated cost reduction process, improve collaboration between the Value Chain and Procurement, and to implement a system to track and report performance during implementation. Further research should include how to adapt the current company processes, structures, procedures and systems in order to gain maximum benefit from the implementation of an integrated cost reduction process. The integrated Value Chain and Procurement cost reduction process, supported by a software system, should improve the success of cost reduction projects in companies. It is, however, important to note that the application of the methodology will vary between industries and that service-related industries might put more emphasis on Procurement cost reduction, while the manufacturing industries might place a bigger emphasis on cost reduction in operations. In conclusion, irrespective of the industries, it is evident that this methodology will enhance the cost reduction results previously obtained from similar efforts.
- Full Text:
- Date Issued: 2013
- Authors: Welman, Abraham Jacobus Frederik
- Date: 2013
- Subjects: Corporations -- Finance -- Management , Manufacturing industries -- Cost control , Industrial procurement
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:8775 , http://hdl.handle.net/10948/d1012954
- Description: The reason for the existence of any company is to make a profit, which means increasing turnover and keeping costs as low as possible. Optimisation of the Value Chain and Procurement were identified as the two largest contributors when one needs to improve the bottom line of any company. The purpose of this research was to develop an integrated Value Chain and Procurement cost reduction methodology and system specifications for a software solution which captures, tracks and accurately reports the impact of the improvement initiatives. The main research question was structured as follows: What should the specifications of a software solution be that will integrate the cost reduction processes of the Value Chain and of Procurement, in a manner that will ensure maximum sustainable bottom-line savings for companies in the manufacturing or service industries? The objective was to define the key phases in the Value Chain and Procurement cost reduction process and to determine how and where they integrate. It is important to note that according the literature review and the survey, both the Value Chain and Procurement cost reduction processes consist of seven phases. The phases of the Value Chain cost reduction process were: Phase 1: Budget/ABC costing and data analysis; Phase 2: Generate ideas; Phase 3: Evaluate and approve ideas; Phase 4: Implementation planning and approval; Phase 5: Development of project (idea) specific KPI's; Phase 6: Implementation of ideas; Phase 7: Track and report savings. The phases of the Procurement (Strategic Sourcing) cost reduction process were: Phase 1: Team selection/data collection/spend analysis/work plan development Phase 2: Access requirements/internal and external analysis; Phase 3: Develop strategy/shape value proposition; Phase 4: Screen suppliers, issue RFI/P/Q, implementation planning; Phase 5: Conduct commercial event/negotiate/finalise contract; Phase 6: Implement contract; Phase 7: Contract management/track and reporting. The above two cost reduction processes integrate at each phase of the respective processes and should thus be implemented at the same time due to their interdependencies. Based on the findings of the research it was clear that an integrated Value Chain and Procurement cost reduction process alone is not going to solve the cost reduction problems of companies. It is essential for the successful implementation of the integrated cost reduction process to develop skills and knowledgeable resources to implement the integrated cost reduction process, improve collaboration between the Value Chain and Procurement, and to implement a system to track and report performance during implementation. Further research should include how to adapt the current company processes, structures, procedures and systems in order to gain maximum benefit from the implementation of an integrated cost reduction process. The integrated Value Chain and Procurement cost reduction process, supported by a software system, should improve the success of cost reduction projects in companies. It is, however, important to note that the application of the methodology will vary between industries and that service-related industries might put more emphasis on Procurement cost reduction, while the manufacturing industries might place a bigger emphasis on cost reduction in operations. In conclusion, irrespective of the industries, it is evident that this methodology will enhance the cost reduction results previously obtained from similar efforts.
- Full Text:
- Date Issued: 2013
Factors influencing the automation of procurement processes at Higher Education Institutions in South Africa
- Authors: Kock, Yolandi
- Date: 2021-04
- Subjects: Automation , Business logistics , Industrial procurement
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51732 , vital:43367
- Description: The main objective of this research was to evaluate the factors that influence the automation of procurement processes at Higher Education Institutions in South Africa. This was appropriate due to the important role that procurement plays in the day to day activities in the higher education environment and the need to fully automate procurement systems to assist in cost saving efforts and process efficiency. The study employed the survey method in the collection of data and questionnaires were the main data collection instrument. Seventy (70) respondents, who all form part of the Purchasing Consortium of Southern Africa (PURCO SA) were targeted to participate in the empirical study. Initial review of the topic revealed limited research into automated procurement systems at higher education institutions in South Africa, but indicated that universities in countries like Ghana, Italy, Kenya and Zimbabwe were more advanced in terms of automation. The study achieved its purpose by reaching both the main and the secondary research objectives successfully, highlighting the factors that influence the automation of procurement processes. The analysis further revealed time and cost savings as well as process efficiencies when using automated procurement systems. The study concludes with recommendations for Procurement Managers and recommendations on future research. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Kock, Yolandi
- Date: 2021-04
- Subjects: Automation , Business logistics , Industrial procurement
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51732 , vital:43367
- Description: The main objective of this research was to evaluate the factors that influence the automation of procurement processes at Higher Education Institutions in South Africa. This was appropriate due to the important role that procurement plays in the day to day activities in the higher education environment and the need to fully automate procurement systems to assist in cost saving efforts and process efficiency. The study employed the survey method in the collection of data and questionnaires were the main data collection instrument. Seventy (70) respondents, who all form part of the Purchasing Consortium of Southern Africa (PURCO SA) were targeted to participate in the empirical study. Initial review of the topic revealed limited research into automated procurement systems at higher education institutions in South Africa, but indicated that universities in countries like Ghana, Italy, Kenya and Zimbabwe were more advanced in terms of automation. The study achieved its purpose by reaching both the main and the secondary research objectives successfully, highlighting the factors that influence the automation of procurement processes. The analysis further revealed time and cost savings as well as process efficiencies when using automated procurement systems. The study concludes with recommendations for Procurement Managers and recommendations on future research. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
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