This study focuses on optimising operations effectiveness and capacity at a heavy engineering plant, namely Heavy Engineering Vereeniging, a division of DCD–DORBYL (Pty) Ltd. The implementation and adoption of technology was included in the investigation. The company operates from 2 premises in Vereeniging and Vanderbijlpark (Gauteng), and consists of 5 factory buildings. A literature review was conducted to ascertain current industry best practises and technology implementation initiatives. This review included a discussion on the following aspects: Capacity and its utilisation, flexible technology and advanced manufacturing systems, technology in manufacturing, capacity expansion and scheduling, factory layouts, technology and capacity utilisation in a South African context, and finally future trends in capacity and technology at Heavy Engineering Vereeniging. Data collection from within the organisation was done via the issuing of a questionnaire and conducting interviews with various management and supervision employees. The gathered data was analysed for employees’ opinions on current utilisation of capacity and use of technology, as well as suggestions regarding improved working methods, factory layout and the implementation of new technology. The quantitative data was analysed using the Statistical Package for the Social Sciences software, with the provided descriptive statistical test results used for the identification of possible trends and further interpretation. It was found that current capacities and equipment are being well utilised, but not to their optimal level. The well entrenched management information systems, measurement systems and operating procedures currently in use will aid to increase the level of utilisation of the available capacity and equipment. The implementation of technology and latest best practises within the operation will gain HEV a competitive edge, ensuring their future sustainability and market leadership. However, this implementation must be done with the input and buy in of the work force. The variances in perceptions and attitudes between the various job functions, discovered during the statistical analysis, must be taken into cognisance during any capacity optimisation or technology implementation initiative. Continued capital expenditure and the current drives in research and development need to be maintained to further ensure sustainability. Various inefficiencies were identified and recommendations were made to improve the current operation’s effectiveness and factory layout, primarily by decreasing operating inefficiencies. The recommendations were made based on the results of the study and included the expenditure involved in their execution. Financially viable options, calculated using payback periods and net present values (NPV), included the purchase of phased array ultrasonic testing equipment, horizontal SAW for longitudinal flanges and a modular type furnace. Other options, which could improve operations effectiveness, but not returning financially positive results, included the moving of the Hausler roll into the main fabrication workshop and the moving of the Sachems drills to alongside the lathes. A number of new processes and initiatives were recommended, for which cost comparisons to current similar practices could not be performed. These included the full production implementation of the punch through tandem arc submerged arc welding for wind turbine tower manufacture, implementation of a customer interfacing and communication platform and internal communication display boards. Current practises regarding touch time measurements for welding and drilling were validated. By undertaking these recommendations, it was felt that HEV would continue to be wepositioned to capture the predicted ongoing growth in the mining market in which they currently operate, and to fully benefit from the future upturn in the energy market. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.

This study focuses on optimising operations effectiveness and capacity at a heavy engineering plant, namely Heavy Engineering Vereeniging, a division of DCD–DORBYL (Pty) Ltd. The implementation and adoption of technology was included in the investigation. The company operates from 2 premises in Vereeniging and Vanderbijlpark (Gauteng), and consists of 5 factory buildings. A literature review was conducted to ascertain current industry best practises and technology implementation initiatives. This review included a discussion on the following aspects: Capacity and its utilisation, flexible technology and advanced manufacturing systems, technology in manufacturing, capacity expansion and scheduling, factory layouts, technology and capacity utilisation in a South African context, and finally future trends in capacity and technology at Heavy Engineering Vereeniging. Data collection from within the organisation was done via the issuing of a questionnaire and conducting interviews with various management and supervision employees. The gathered data was analysed for employees’ opinions on current utilisation of capacity and use of technology, as well as suggestions regarding improved working methods, factory layout and the implementation of new technology. The quantitative data was analysed using the Statistical Package for the Social Sciences software, with the provided descriptive statistical test results used for the identification of possible trends and further interpretation. It was found that current capacities and equipment are being well utilised, but not to their optimal level. The well entrenched management information systems, measurement systems and operating procedures currently in use will aid to increase the level of utilisation of the available capacity and equipment. The implementation of technology and latest best practises within the operation will gain HEV a competitive edge, ensuring their future sustainability and market leadership. However, this implementation must be done with the input and buy in of the work force. The variances in perceptions and attitudes between the various job functions, discovered during the statistical analysis, must be taken into cognisance during any capacity optimisation or technology implementation initiative. Continued capital expenditure and the current drives in research and development need to be maintained to further ensure sustainability. Various inefficiencies were identified and recommendations were made to improve the current operation’s effectiveness and factory layout, primarily by decreasing operating inefficiencies. The recommendations were made based on the results of the study and included the expenditure involved in their execution. Financially viable options, calculated using payback periods and net present values (NPV), included the purchase of phased array ultrasonic testing equipment, horizontal SAW for longitudinal flanges and a modular type furnace. Other options, which could improve operations effectiveness, but not returning financially positive results, included the moving of the Hausler roll into the main fabrication workshop and the moving of the Sachems drills to alongside the lathes. A number of new processes and initiatives were recommended, for which cost comparisons to current similar practices could not be performed. These included the full production implementation of the punch through tandem arc submerged arc welding for wind turbine tower manufacture, implementation of a customer interfacing and communication platform and internal communication display boards. Current practises regarding touch time measurements for welding and drilling were validated. By undertaking these recommendations, it was felt that HEV would continue to be wepositioned to capture the predicted ongoing growth in the mining market in which they currently operate, and to fully benefit from the future upturn in the energy market. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.

The study focuses on the use of information systems in the Heavy Engineering industry in South Africa and the decision to make, buy or rent information systems. Special focus was placed on the factors that influence the decision to make, buy or rent information systems. It is undeniable that changes in the competitive environment, such as technological advances and globalisation, are driving organisations toward new ways of operating. In striving to become flexible, lean, and more competitive, organisations have been increasingly swift to externalise support service functions. Every organisation must adapt to the current economic environment, the technology available in its industry and consider the risk and rewards within the industry framework. Organisations should carefully analyse the impact of their decisions, especially in consideration of the extent to which organisational competencies and competitive advantage could be affected. An extensive literature study was conducted on the factors that influence the decision to make, buy or rent. The literature study portrays the ideal state or methodologies for acquiring information systems and the best practices used in evaluating the best option for the organisation. The literature indicated the criteria for evaluating the decision to make, buy or rent information systems are the business need, in–house experience, project skills, project management and the time frame. These criteria can be broken down into the factors that have an influence on the decision, competitive advantage, security, skills, expertise, available resources, cost, time, implementation, support, maintenance, performance, quality, documentation, vendor issues, size of organisation, expected annual transactions, software control, functionality, productivity and increased turnover. Calculating the benefit that can be achieved from information systems must also include measures to incorporate the total benefit, not only the financial benefit. The balance scorecard approach measures the total return accompanying an investment in information systems, broken down into four sections, the financial perspective that measures the tangible outcomes, the customer perspective that measures customer value (quality, delivery and skill), the internal process perspective that measures the internal processes that add value and have the greatest impact on strategy and finally the learning and growth perspective that measures the intangible assets which focuses on human capital. Information systems form part of the corporate strategy, competitive positioning and must be aligned with the overall strategy of the organisation. A survey was done to determine the opinions about the different options managers/organisations have to consider when seeking to fulfil organisational requirements for information systems. Methodological issues as well as considerations with regard to gathering the data were discussed. A questionnaire was designed to collect data to obtain the information needed to solve the research problem. The internal consistency of the questionnaire was tested and it was found that a moderate to high level of consistency exists. The survey results were then presented in frequency tables and were analysed using descriptive statistics as well as inferring possible trends or conclusions based on relationships between certain responses on specific related questions and referring to the literature study. A framework was compiled from the literature study and empirical study that can be used for the purpose of decision–making in the make, buy or renting of information systems in the heavy engineering environment in South Africa. Benefits from purchasing software from a vendor include competitive advantage, available resources, implementation of the system, support to the system, system performance, documentation and training, and business functionality. Benefits from open source offerings include the size of the organisation and the number of expected annual transactions by the organisation. Benefits from SaaS (Software as a service) include competitive advantage, expertise, system performance and business functionality. Benefits from the outsourcing of development and other IT functions include competitive advantage, security, skills, available resources, implementation of the system, support to the system, system performance, documentation and training, business functionality and technical functionality. Benefits from developing in–house all or part of the effort include competitive advantage, security, skills, expertise, available resources, time, implementation of the system, support to the system, maintenance and upgrades, system performance, quality, documentation and training, business functionality, technical functionality, productivity improvements and increased turnover. Overall the linkage between the literature study and the empirical study concludes / Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.

The study focuses on the use of information systems in the Heavy Engineering industry in South Africa and the decision to make, buy or rent information systems. Special focus was placed on the factors that influence the decision to make, buy or rent information systems. It is undeniable that changes in the competitive environment, such as technological advances and globalisation, are driving organisations toward new ways of operating. In striving to become flexible, lean, and more competitive, organisations have been increasingly swift to externalise support service functions. Every organisation must adapt to the current economic environment, the technology available in its industry and consider the risk and rewards within the industry framework. Organisations should carefully analyse the impact of their decisions, especially in consideration of the extent to which organisational competencies and competitive advantage could be affected. An extensive literature study was conducted on the factors that influence the decision to make, buy or rent. The literature study portrays the ideal state or methodologies for acquiring information systems and the best practices used in evaluating the best option for the organisation. The literature indicated the criteria for evaluating the decision to make, buy or rent information systems are the business need, in–house experience, project skills, project management and the time frame. These criteria can be broken down into the factors that have an influence on the decision, competitive advantage, security, skills, expertise, available resources, cost, time, implementation, support, maintenance, performance, quality, documentation, vendor issues, size of organisation, expected annual transactions, software control, functionality, productivity and increased turnover. Calculating the benefit that can be achieved from information systems must also include measures to incorporate the total benefit, not only the financial benefit. The balance scorecard approach measures the total return accompanying an investment in information systems, broken down into four sections, the financial perspective that measures the tangible outcomes, the customer perspective that measures customer value (quality, delivery and skill), the internal process perspective that measures the internal processes that add value and have the greatest impact on strategy and finally the learning and growth perspective that measures the intangible assets which focuses on human capital. Information systems form part of the corporate strategy, competitive positioning and must be aligned with the overall strategy of the organisation. A survey was done to determine the opinions about the different options managers/organisations have to consider when seeking to fulfil organisational requirements for information systems. Methodological issues as well as considerations with regard to gathering the data were discussed. A questionnaire was designed to collect data to obtain the information needed to solve the research problem. The internal consistency of the questionnaire was tested and it was found that a moderate to high level of consistency exists. The survey results were then presented in frequency tables and were analysed using descriptive statistics as well as inferring possible trends or conclusions based on relationships between certain responses on specific related questions and referring to the literature study. A framework was compiled from the literature study and empirical study that can be used for the purpose of decision–making in the make, buy or renting of information systems in the heavy engineering environment in South Africa. Benefits from purchasing software from a vendor include competitive advantage, available resources, implementation of the system, support to the system, system performance, documentation and training, and business functionality. Benefits from open source offerings include the size of the organisation and the number of expected annual transactions by the organisation. Benefits from SaaS (Software as a service) include competitive advantage, expertise, system performance and business functionality. Benefits from the outsourcing of development and other IT functions include competitive advantage, security, skills, available resources, implementation of the system, support to the system, system performance, documentation and training, business functionality and technical functionality. Benefits from developing in–house all or part of the effort include competitive advantage, security, skills, expertise, available resources, time, implementation of the system, support to the system, maintenance and upgrades, system performance, quality, documentation and training, business functionality, technical functionality, productivity improvements and increased turnover. Overall the linkage between the literature study and the empirical study concludes / Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.