Automotive component manufacturers face significant competitive challenges in the global market and are constantly looking for means to improve their competitive advantage. Organisations then often acquire lean tools as an attractive option to achieve this. Research has however highlighted that the underlying “Lean Culture” is what is really necessary for organisations to achieve and maintain a competitive advantage. According to Rother (2010) lean implementation can be seen as a project or an initiation of an on- going development process where learning is taking place. This implementation implies a change in organisational culture from its existing state to a state where it reflects a lean culture. The literature review into Lean highlights the importance of establishing a Lean Culture. This research relied on an existing Lean Culture Causal Framework to assess cultural readiness for lean implementation at an automotive component manufacturer in Port Elizabeth (Company X). This was done utilising an empirical study which relied on an existing questionnaire associated with the said Lean Culture Causal Frame work. This Framework focuses on four broad categories of leadership actions; Awareness, Engagement, Consistency and Accountability.

There is an overwhelming body of literature that exist in the subject of employee engagement. More and more studies are still conducted in this phenomenon as it had proved to produce high returns for organisations when mastered.The universal definition of this concept has not been found, various scholars continue to provide different views on how it should be defined. These definitions however bear common themes such as energy, taking initiative, going an extra mile, being grossly involved in the task, organisational citizenship, involvement, satisfaction, connection and enthusiasm which are caused by a feeling of being taken care of by the employer. It is clear from these that there is a reciprocal relationship between employer and employee which is claimed to have a link to profits and staff retention; as a result employers are increasingly devising strategies to engage the employees in order to reap the said benefits. The purpose of this study is to facilitate employee engagement and staff retention a motor manufacturing company in the Eastern Cape. In order to archive that the study assessed the level of engagement of artisans by means of a questionnaire focusing on factors such as meaningful work, organisational culture, social relationships, rewards and recognition and career development as these are repeatedly identified in the literature as key drivers of employee engagement. An imperial study was done on these drivers as well as on the existing company engagement programs to identify the employee’s perception of their effectiveness. The result of the study proves that artisans of this company are engaged and that all the drivers above were confirmed to have influence employee engagement and staff retention. The study however the study found that there is a split on the effectiveness of the existing engagement programs in the company with only less than 50% saying they were effective. A strong relationship was found to exist between all the factors that were studied and employee engagement and staff retention.

Lean manufacturing provides a fundamental basis for competitiveness in the auto component sector. The implementation and sustainability of the lean philosophy are important aspects when deciding on the adoption of the lean concept within organisations. Various barriers to implementation present themselves during and after lean implementation. These barriers are often related and in some instances they may be converted from an impediment into an enabler of lean within companies. The impact of unions as a negative or positive influence forms a central focus of this research. The influences on the perception of unions and their constituents are studied in relation to other barriers in order to determine their relevance in the Eastern Cape auto sector. A research questionnaire was constructed in line with the selected research design. The application of triangulation in the research design allows for greater depth in the responses from the participants in this research. The quantitative analysis combined with the qualitative thematic analysis provides an excellent means to explore and understand these selected barriers to lean in great detail. It can be concluded that automotive trade unions in the Eastern Cape are a barrier to implementation; however the factor that influences lean the most is the incorrect perception of lean due to ineffective leadership practices among organisational and union leaders, among other barriers. The impact of unions on the acceptance of a lean culture has far-reaching implications for the auto sector that requires a specific implementation approach in order to change perceptions and gain the requisite interest alignment among unions and their constituents.

The focus of this study revolved around the impact of the Motor Industry Development Programme (MIDP) on the automotive component manufacturers in the greater Durban area. The research objectives were to determine whether the introduction of MIDP has contributed to an increase in throughput for the automotive component manufacturers, to determine whether the introduction of MIDP has led to increased employment levels within the automotive component manufacturing industry and lastly to determine whether MIDP has resulted in increased investment in the automotive component manufacturing industry in KwaZulu-Natal. This study analysed the data received from 30 respondents, who as a pre-requisite, were employed within the component manufacturing industry in KwaZulu-Natal. The population sample was attained through the use of the author’s supplier database at Smiths Manufacturing (Pty) Ltd, a tier 1 automotive component manufacturer to the original equipment manufacturers in South Africa. A self-completion questionnaire, which was quantitative in nature, was distributed to the participants and a two week data collection period was allotted. The collected data was analysed using SPSS statistical software, the results of which revealed that MIDP was of significant importance to automotive component manufacturers in KwaZulu-Natal. It further revealed that there was a direct relationship between employment, investment and throughput with the introduction of MIDP. The same findings were evident for similar programmes in India and China.It is recommended that a similar study be conducted in Gauteng and the Eastern Cape, which are the other automotive component manufacturing hubs in South Africa. Furthermore, MIDP will be replaced by the APDP during 2013, and it is recommended. / Thesis (MBA)-University of KwaZulu-Natal, Durban, 2012.

There has never been an age in which change did not take place. However, the increase in the unpredictability of many factors of the 21st century means that organisations are susceptible to, and must embrace change. This results in an increase in the pace at which organisations may have to deal with change. This research study evaluates the interventions considered to bring about optimal change within organisations. In order to complete this study it was necessary to address the fundamentals of change management, tools utilised to manage change and the current theoretical models that assist organisations in managing change. The study took place within the Eastern Cape as it is regarded as the second fastest growing economy in South Africa. The researcher used the automotive cluster as the population for the study as it is the largest industry within the Eastern Cape. Based on the theoretical findings of a literature survey a questionnaire was developed and distributed to a randomly selected sample in the automotive cluster. The objective of the questionnaire was to evaluate the theory used and to develop a process model of change management. The results of the empirical study were statistically analysed and interpreted. Among the most important findings of the research was the fact that organisations in the Eastern Cape do not follow any specific theoretical model for managing change and very few organisations have a formal change management policy. Although the respondents to the survey acknowledged that it is imperative to engender an awareness of change management principles, especially among top management, the majority does not adhere to this principle because it is too time consuming! This research study highlights a number of areas where the management of change can be improved and presents a practical process model that can be adapted and used by the majority of organisations within the East Cape Motor Industry Cluster.

Today‘s customers expect zero defects with just-in-time (JIT) delivery from their suppliers, for the specified quantities, as a matter of standard practice. More importantly, customers expect companies to help them know what they need in terms of quantities and quality now, and for the future. No other change process adds long-term value as quickly as zero defects. Companies failing to embrace this quality culture face difficult challenges. To achieve this level of performance requires tremendous focus in an organisation and throughout its supply base. Business models around the world are changing dramatically from the "Source Local" to the "Source Anywhere and Build Anywhere" model (Cummins, 2008: 19). Companies have shifted away from a hierarchical, one-dimensional, supply chain entity to a fragmented network in favor of strategic partnerships with external entities. Many businesses facing such models are experiencing challenges and, if not managed correctly, can find themselves struggling to compete in this new landscape. Thus, when price concessions are so stringent, quality has to suffer. To reduce costs, suppliers are forced to seek less expensive ways to produce parts and components. Does this mean the use of different, less expensive materials? Does this mean less skilled labor? Does this mean production shortcuts? Or does this mean that suppliers just bite the bullet and pay the price? Once all the costs have been extracted from the supply chain, the only thing left to suffer is quality. The underlying objective of this research is to investigate the impact of delivery performance for a selected part at General Motors South Africa. In order to develop a research strategy to deal with, and solve, the main problem, the following research questions have been identified: a) What can be learned from literature about the impact of quality costs? b) Why is this specific part a suitable candidate for a cost investigation? c) What are the processes involved if a defect occurs? d) How can the cost be estimated? e) What effect does poor supplier quality have on productivity? This dissertation aims to investigate the problems and challenges General Motors South Africa are facing pertaining to the delivery performance of a selected part. The dissertation will also strive to highlight the impact of poor supplier quality on productivity and the related cost implications. Conclusions and recommendations will furthermore be outlined.

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.

The present study investigated the attitudes of middle managers towards organisational change within the automotive industry in South Africa. As a result of global recession, the automotive industry has been going through a series of changes but at a very slower pace. An empirical investigation was undertaken using a sample of seventy two (72) middle managers drawn using the cluster sampling technique. An organisational change attitude questionnaire adjusted to suit the automotive industry environment was employed to collect data. The findings of the study indicated that middle managers have positive attitudes towards technological change (59%), Innovative Change (84%) and Total Quality Management (65%) However, middle managers indicated that they have negative attitudes towards re-organisation. There was moderate significant relationship between factors influencing attitudes (administration, participation, communication and the threats and benefits) and the attitudes portrayed. Factors such as administration of the change process, threats and benefits of the outcomes as well as opportunity for personal growth were found to be highly influential to middle managers attitudes towards change. In all cases, demographic variables such as gender, age and experience played a significant role in the views of middle managers towards organisational change. Key words: Attitudes, organisational change, middle managers, factors influencing attitudes and automotive industry.

Thesis (MA (Political Science))--University of Stellenbosch, 2010.