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Critical success factors to improve direct labour productivity

An increase in the global competitiveness has forced manufacturing organisations to re-look their facility from a labour productivity standpoint. Leveraging a manufacturing operation into a competitive avantage must at all times support the organisation’s objective. It is therefore critical that the operation reviews its strategy so that it fulfils the ever changing needs in the market. Purpose – The main objective of this research is to identify the critical success factors to improve direct labour efficiency within Johnson Controls Automotive South Africa (Pty) Ltd (JCI). Design/methodology/approach – A combination of a comprehensive literature review and visits to the Uitenhage plant and head office were employed in the study. JCI practices were observed to highlight the level of direct labour productivity. This was followed by interviewing relevant and key personel who had an involvement in achieving direct labour productivity in the plant. A questionnaire-based research approach was adopted for this purpose and a total of 83 valid survey responses were received from staff in the Uitenhage plant, together with head office staff who directly supported the plant. The questionnaire was designed to identify and test perceptions of employees, regarding the factors of production, identified as sub variables. The research aim was to determine the most practical and effective strategies to improve direct labour productivity. Results were analysed and interpreted after which recommendations were formulated. Findings – Several critical success factors identified as sub variables were tested to understand their impact on direct labour productivity. Empirical results showed that organisational culture, leadership culture, employee engagement, communication and skills, development and training, had a significant effect on direct labour productivity. Respective ratings of these elements were discussed with the focus of improving this going forward. Research limitations/implications – Continued scepticim within JCI about the benefits of direct labour productivity to their business is one of the fundamental limitations this research faces. Originality/value – The novelty of the research project stems from the realization of key factors contributing to the improvement of direct labour productivity within the JCI enviroment. The results would provide JCI with indicators and guidelines for a successful implementation of direct labour productivity initiatives in the Uitenhage plant.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8846
Date January 2015
CreatorsBrown, Conrad Andrew
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatviii, 120 leaves, pdf
RightsNelson Mandela Metropolitan University

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