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Performance improvement of the toolmakers of the Western Cape through the application of the order fulfilment process and activity based costing

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The South African Government has set a target to halve poverty and unemployment
by 2014. In an attempt to achieve this target a number of projects were initiated, one
of which is the National Tooling Initiative (NTI). Local structures were established to
encourage co-operation and competitiveness among the Small Micro and Medium
Enterprises (SMMEs) by using the cluster concept. Consequently the Western Cape
Tooling Initiative (WCTI) was formed to focus on and address the needs of the
toolmakers in the Western Cape.
It was highlighted during the interview with the Chief Executive Officer (CEO) of the
WCTI that some of the toolmakers are limited in terms of the size of orders they could
handle due to lack of capacity. Discussions and research showed that in addition to
the cluster initiative, a model such as the Order Fulfilment Process (OFP) could be
used to encourage toolmakers to play a role in the activities within the OFP which
they are strong in and collectively tender for contracts which they cannot fulfil on their
own. Coupled to the OFP, it was decided that activity based costing would be used to
assist with the cost allocation of the activities along the OFP. Furthermore, some of
the activities within the OFP would be centralised i.e. order taking and invoicing,
while others would be decentralised i.e. manufacturing and distribution.
The research study showed that although the office of the WCTI is fully established,
there is a need to better understand and analyse the actual state of the toolmakers,
their profile and capability. Once this information is available, the WCTI would be in a
better position to make meaningful decisions about the appropriate plan of action.
Concurrently, the WCTI need to also learn about the business opportunities that are
available to the toolmakers and begin to exploit them.
The aim of the study was to help improve the performance of the toolmakers through
co-operation by using the order fulfilment process model complemented by activity
based costing. The objective of the research project was to develop a framework that
should be used by the WCTI to encourage co-operation among the toolmakers to
improve their competitiveness. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse regering het aan hulself die doelwit gestel om teen 2014
armoede en werkloosheid te halveer. In ‘n poging om hierdie doelwitte te bereik, is ‘n
aantal projekte van stapel gestuur, waarvan die “National Tooling Initiative” (NTI) een
is. Plaaslike strukture is gevestig om samewerking en mededinging aan te moedig
tussen die klein-, mikro- en medium- sake-ondernemings (SMMEs) deur die gebruik
van ‘n groeperingskonsep. Gevolglik is die “Western Cape Tooling Initiative” (WCTI)
tot stand gebring om te fokus op die behoeftes van die gereedskapmakers in die
Wes-Kaap en hul behoeftes aan te spreek.
In ‘n onderhoud met die Hoof Uitvoerende Beampte van die WCTI is aandag daarop
gevestig dat sommige van die gereedskapmakers beperk word in terme van die
grootte van bestellings wat hulle kan hanteer as gevolg van hul gebrek aan
kapasiteit. Gesprekke en navorsing het getoon dat ‘n model soos die bestellingvoltooingsproses
(Order Fulfilment Process (OFP)) gebruik kan word om
gereedskapmakers aan te moedig om ‘n rol te speel in die aktiwiteite binne die OFP
waarin hulle sterk is en gesamentlik tenders in te dien vir kontrakte wat hulle nie op
hulle eie kan hanteer nie. Tesame met die OFP, is daar besluit dat
aktiwiteitsgebaseerde kosteberekening gebruik sou word om te help met die bepaling
van koste-allokasie van die aktiwiteite binne die OFP. Verder sal sommige van die
aktiwiteite van die proses gesentraliseer word, naamlik die neem van bestellings en
fakturering, terwyl ander gedesentraliseer sou word, naamlik vervaardiging en
verspreiding.
Die navorsingstudie het getoon dat, alhoewel die kantoor van die WCTI ten volle
gevestig is, daar steeds ‘n behoefte bestaan om die werklike toestand van die
gereedskapmakers, hulle profiel en kapasiteit te begryp en te ontleed. Wanneer
hierdie inligting beskikbaar is, sal die WCTI in ‘n beter posisie wees om
betekenisvolle besluite te neem rakende die gepaste plan van aksie. Verder moet die
WCTI ook hulself vergewis van die sakemoontlikhede wat vir die gereedskapmakers
beskikbaar is en dit begin benut.
Die oogmerk van die studie was om die werkverrigting van die gereedskapmakers
deur samewerking te verbeter deur middel van die OFP wat ondersteun word deur
aktiwiteitsgebaseerde kosteberekening. Die doel van die navorsingsprojek was om ‘n
raamwerk te ontwikkel wat deur die WCTI gebruik kan word om samewerking onder
die gereedskapmakers aan te moedig en hul mededingendheid te verbeter.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/822
Date03 1900
CreatorsRamashala, Palesa Agnes
ContributorsVon Leipzig, Konrad H., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
RightsStellenbosch University

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