Contents
Preface…………………………………………………………………………………………..xv
Acknowledgment………………………………………………………………………….xix
About the Authors………………………………………………………………………..xxi
1 Research Approaches and Main Results on Manufacturing
SMEs in South Africa ………………………………………………………….1
1.1 Introduction……………………………………………………………………………..1
1.1.1 Manufacturing SMEs Productivity Problems: Research
Trends and Challenges 2
1.1.2 Research Methodology…………………………………………………….6
1.1.3 Research Findings……………………………………………………………7
1.2 The Background of Manufacturing SMEs…………………………………….7
1.2.1 The Definitions of Manufacturing SMEs…………………………..14
1.2.2 Manufacturing Systems ………………………………………………….17
1.2.3 Manufacturing Process……………………………………………………18
1.2.4 Competitive Priorities as Operational Capabilities and
Value-Adding Drivers for the Manufacturing SMEs 19
1.2.4.1 Operational Capabilities ……………………………………..19
1.2.4.2 Value-Adding Activities ………………………………………22
1.3 Case Study Results: Companies A, B, C, and D………………………….23
1.3.1 The Reality of Manufacturing: How Company A Is
Dealing with Factors Influencing Productivity in Its
Business 23
1.3.1.1 Manufacturing at Company A………………………………23
1.3.1.2 Vision………………………………………………………………..23
1.3.1.3 Mission………………………………………………………………23
1.3.1.4 Background of the Company……………………………….23
1.3.1.5 Background of the Manufacturing Process in
Company A………………………………………………………..26
1.3.1.6 Challenges Facing the Manufacturing Process of
Company A………………………………………………………..28
1.3.2 Manufacturing at Medium-Sized Company B:
Inefficiencies due to Failure of Management 31
1.3.2.1 Challenges Experienced by Company B……………….33
1.3.3 Case of Packaging Operation at Company C …………………..34
1.3.3.1 Vision………………………………………………………………..34
1.3.3.2 Mission………………………………………………………………34
1.3.3.3 Background of the Company……………………………….35
1.3.3.4 Background of the Manufacturing Process in
Company C 36
1.3.3.5 The Manufacturing Process Followed in
Company C………………………………………………………..37
1.3.3.6 Challenges Facing the Manufacturing Process of
Company C 38
1.3.4 Manufacturing at Medium-Sized Company D:
Inefficiencies due to Failure of Management 40
1.3.4.1 Challenges Experienced by Company D……………….42
1.4 Summary of Case Study Results……………………………………………….42
1.5 Book Delineation……………………………………………………………………44
References……………………………………………………………………………………..45
2 Productivity Theory and Work Study: Groundwork Theories….53
2.1 Introduction……………………………………………………………………………53
2.2 Productivity and Work Study Theory: Groundwork Theories………53
2.2.1 Productivity Theory……………………………………………………….53
2.2.1.1 Evolution of Productivity Theory…………………………53
2.2.1.2 Productivity Concept…………………………………………..54
2.2.1.3 Productivity Applications…………………………………….62
2.2.2 Work Study Theory………………………………………………………..67
2.2.2.1 Historical Origin of Work Study…………………………..67
2.2.2.2 Work Study Concept ………………………………………….70
2.2.2.3 Work Study Applications……………………………………..73
2.3 Critical Review of Work Study and Productivity Theory……………..75
2.4 Summary………………………………………………………………………………..76
References……………………………………………………………………………………..77
3 Effectiveness versus Efficiency in Manufacturing SMEs: A
Productivity Perspective…………………………………………………….85
3.1 Introduction……………………………………………………………………………85
3.2 Effectiveness versus Efficiency Concept…………………………………….85
3.2.1 Effectiveness in Manufacturing SMEs……………………………….87
3.2.2 Effectiveness Applications………………………………………………90
3.2.3 Efficiency in Manufacturing SMEs……………………………………93
3.2.4 Efficiency Applications…………………………………………………..96
3.3 Application of Machine and Employee Utilization Using
Effectiveness and Efficiency 98
3.4 Critical Review of the Nexus between Efficiency and
Effectiveness in Productivity 103
3.5 Summary………………………………………………………………………………104
References……………………………………………………………………………………104
4 Factors Influencing Productivity in Manufacturing SMEs…….109
4.1 Introduction………………………………………………………………………….109
4.2 Factors Influencing Productivity in Manufacturing SMEs…………..109
4.2.1 Physical Capital ………………………………………………………….. 110
4.2.1.1 Human Resources…………………………………………….. 110
4.2.1.2 Material…………………………………………………………… 111
4.2.1.3 Machinery……………………………………………………….. 111
4.2.1.4 Building …………………………………………………………. 112
4.2.1.5 Location………………………………………………………….. 112
4.2.1.6 Finance…………………………………………………………… 113
4.2.2 Technological Capital …………………………………………………. 113
4.2.2.1 Tangible Assets ……………………………………………….. 113
4.2.2.2 Intangible Assets……………………………………………… 114
4.2.3 Management Challenges ……………………………………………… 117
4.3 Understanding of Physical Capital in Manufacturing SMEs……….. 118
4.4 Understanding of Technological Capital in Manufacturing SMEs….. 120
4.5 Understanding of Management in Manufacturing SMEs…………….122
4.6 Case Study Findings and Results on Factors Affecting
Productivity in Manufacturing SMEs in South Africa 123
4.7 Summary………………………………………………………………………………124
References ……………………………………………………………………………………124
5 Identifying the Environment for Manufacturing SMEs…………129
5.1 Introduction………………………………………………………………………….129
5.2 Factors to Consider When Selecting the Environment for
Manufacturing SMEs 130
5.2.1 Noise…………………………………………………………………………. 131
5.2.2 Pollution……………………………………………………………………..133
5.2.3 Vibration……………………………………………………………………..134
5.2.4 Hazardous Working Conditions…………………………………….135
5.2.5 Excessive Temperature…………………………………………………137
5.2.6 Dust……………………………………………………………………………138
5.2.7 Unavailability of Personal Protective Clothing………………..140
5.2.8 Poor Lighting …………………………………………………………….. 141
5.2.9 Poor Employee Posture……………………………………………….. 143
5.2.10 Poor Air Quality………………………………………………………….. 145
5.3 Standard Working Procedures In Ensuring a Safe and Healthy
Environment in Manufacturing SMEs 147
5.3.1 Understanding of Ergonomics………………………………………. 147
5.3.2 Understanding of Good Housekeeping ………………………… 149
5.4 Case Study on Identifying the Environment for Manufacturing
SMEs in South Africa 151
5.5 Summary……………………………………………………………………………… 152
References …………………………………………………………………………………… 153
6 Work Study Techniques: Method Study………………………………163
6.1 Introduction………………………………………………………………………….163
6.2 WS Characteristics in Manufacturing SMEs………………………………163
6.2.1 Traits of WS Specialists in Manufacturing SMEs………………163
6.2.2 Expertise of the WS Specialists in Manufacturing SMEs…..164
6.2.3 WS and Relations with Management in Manufacturing
SMEs 165
6.2.4 WS and Relations with Supervisors in Manufacturing
SMEs………………………………………………………………………….. 167
6.2.4.1 WS and Relations with Supervisors……………………. 167
6.2.4.2 Misconception of Supervisors With Regard To
WS Specialists Interference 169
6.2.4.3 Management Guidelines to Supervisors With
Regard To WS Specialists’ Interference 170
6.2.4.4 Effective Communication by WS Specialists to
Ensure That the WS Specialist Adheres to the
Following Rules 170
6.2.5 WS and Relations with Workers in Manufacturing SMEs…. 171
6.2.6 WS and Relations with Trade Unions in Manufacturing
SMEs 171
6.3 Method Study ……………………………………………………………………… 172
6.3.1 Method Study Procedure……………………………………………… 172
6.3.1.1 Select………………………………………………………………. 173
6.3.1.2 Recording ……………………………………………………….. 173
6.3.1.3 Analytical Examination………………………………………177
6.3.1.4 Development and Selection of Alternative
Solution……………………………………………………………177
6.3.1.5 Definition ……………………………………………………….. 179
6.3.1.6 Implementation ………………………………………………. 179
6.3.1.7 Maintenance …………………………………………………… 179
6.3.2 Method Study (Qualitative Techniques) ………………………… 179
6.3.2.1 Method Study Preliminary Survey Studies…………181
6.3.2.2 Benchmarking…………………………………………………189
6.3.2.3 Brainstorming………………………………………………… 191
6.3.2.4 Method Study Process Charts and Time Scale
Diagrams and Films 194
6.3.2.5 Process Chart Based on Time Scale (Multiple
Activity Chart) 197
6.3.2.6 Flow Diagrams……………………………………………….. 197
6.3.2.7 Film Technique……………………………………………….198
6.3.2.8 Value Stream Mapping ……………………………………199
6.3.2.9 Cause-and-Effect Diagram………………………………..201
6.3.2.10 Business Process Reengineering……………………….202
6.4 Analysis of Current Applications of Method Study in
South Africa 203
6.5 Summary………………………………………………………………………………204
References……………………………………………………………………………………204
7 Work Measurement (WM) Techniques………………………………..211
7.1 Introduction…………………………………………………………………………. 211
7.2 Work Measurement……………………………………………………………….212
7.2.1 WM Procedure…………………………………………………………….212
7.2.1.1 Select……………………………………………………………….212
7.2.1.2 Recording………………………………………………………… 214
7.2.1.3 Analytical Examination…………………………………….. 214
7.2.1.4 Measure………………………………………………………….. 214
7.2.1.5 Compile………………………………………………………….. 215
7.2.1.6 Implementation……………………………………………….. 215
7.2.1.7 Define…………………………………………………………….. 215
7.2.2 WM Techniques (Quantitative)……………………………………… 215
7.2.2.1 Time Study……………………………………………………… 215
7.2.2.2 Work (Activity) Sampling…………………………………..220
7.2.3 Predetermined Motion Time Systems ……………………………237
7.2.4 Analytical Estimating……………………………………………………237
7.2.5 Comparative Estimating (Benchmarking)……………………….238
7.2.6 Synthesis……………………………………………………………………..239
7.2.7 Value Stream Mapping (Quantitative)……………………………..240
7.2.8 Statistical Improvement Techniques……………………………….242
7.2.9 Business Process Reengineering …………………………………..244
7.3 Analysis of Current Applications of Work Measurement in
South Africa 244
7.4 Summary………………………………………………………………………………245
References……………………………………………………………………………………245
8 Impact of Work Study on Physical Capital for Productivity
in Manufacturing SMEs……………………………………………………249
8.1 Introduction………………………………………………………………………….249
8.2 The Impact of Method Study Tools on Manufacturing SMEs…….. 251
8.2.1 Preliminary Surveys Used in Method Study for Human
Resources 251
8.2.2 Brainstorming Used in Method Study for Human Resources….. 252
8.2.3 Method Study Process Charts and Time Scale,
Diagrams, and Films for Human Resources 254
8.2.4 Flow Diagram for the Environment……………………………….256
8.2.5 Flow Process Chart for Material…………………………………….257
8.2.6 Process Flow Chart (Machinery/Equipment Type) for
Machinery or Equipment 258
8.2.7 Film Technique for Employee, Material, Machine,
Finance, Location, and Environment 259
8.2.8 Value Stream Mapping (Qualitative)……………………………….261
8.2.9 Cause-and-Effect Diagram for Environment……………………262
8.3 Work Measurement Techniques………………………………………………264
8.3.1 Preliminary Surveys Used in Method Study for Human
Resources 264
8.3.2 Time Study for Human Resources, Material, and
Machinery…………………………………………………………………..266
8.3.3 Work (Activity) Sampling for Human Resources,
Material, and Machinery 267
8.3.4 Predetermined Motion Time Systems for Employees……….268
8.3.5 Analytical Estimating for Human Resources, Material,
and Machinery 269
8.3.6 Comparative Estimating (Benchmarking)……………………….270
8.3.7 Synthesis……………………………………………………………………..270
8.3.8 Value Stream Mapping (Quantitative)……………………………..271
8.4 Case Study Results and Analysis for South African SMEs…………..272
8.4.1 Company A (Small Company)……………………………………….272
8.4.2 Company B (Medium Company)……………………………………273
8.4.3 Company C (Small Company)……………………………………….273
8.4.4 Company D (Medium Company)………………………………….. 274
8.5 Comparative Analysis and Discussion…………………………………….. 274
8.6 Summary………………………………………………………………………………275
References ……………………………………………………………………………………278
9 Impact of Work Study on Technological Capital for
Productivity in Manufacturing SMEs…………………………………287
9.1 Introduction………………………………………………………………………….287
9.2 Work Study and Tangible Assets in Relation to the Productivity
of Manufacturing SMEs 287
9.3 Work Study and Intangible Assets in Relation to the
Productivity of Manufacturing SMEs 289
9.3.1 Software……………………………………………………………………..290
9.3.2 Technological Tools……………………………………………………..290
9.3.3 Technological Systems………………………………………………….290
9.3.4 Innovation ………………………………………………………………….292
9.3.5 Networking ………………………………………………………………..292
9.3.6 Technological Skills …………………………………………………….293
9.4 Case Study Findings and Analysis for South African SMEs………..294
9.5 Comparative Analysis and Discussion …………………………………….294
9.6 Summary………………………………………………………………………………296
References ……………………………………………………………………………………296
10 The Impact of Work Study on Management in Relation to
Productivity of Manufacturing SMEs…………………………………301
10.1 Introduction………………………………………………………………………….301
10.2 Method Study on Management in Relation to Productivity of
Manufacturing SMEs 303
10.2.1 Benchmarking……………………………………………………………..303
10.2.2 Brainstorming Used in Method Study for Employees by
Management in Manufacturing SMEs 304
10.2.3 Preliminary Survey………………………………………………………304
10.2.4 Method Study Process Charts………………………………………..305
10.2.4.1 Process Charts in Manufacturing SMEs 305
10.2.4.2 Flow Diagram…………………………………………………306
10.2.4.3 Filming Techniques…………………………………………307
10.3 Work Measurement on Management in Relation to
Productivity of Manufacturing SMEs 308
10.3.1 Time Study……………………………………………………………….308
10.3.2 Work (Activity) Sampling……………………………………………309
10.3.3 Predetermined Motion Time Systems………………………….. 310
10.3.4 Analytical Estimating…………………………………………………. 310
10.3.5 Comparative Estimating (Benchmarking)……………………. 312
10.3.6 Synthesis………………………………………………………………….. 312
10.3.7 Statistical Process Control………………………………………….. 313
10.3.8 Value Stream Mapping………………………………………………. 314
10.3.9 Statistical Process Control………………………………………….. 315
10.3.10 Business Process Reengineering as a Technique
for Both Method Study and Work Measurement on
Management in Manufacturing SMEs 316
10.4 Case Study Results and Analysis for South African
SMEs 317
10.4.1 Company A (Small Company)………………………………………. 317
10.4.2 Company B (Medium Company)…………………………………… 318
10.4.3 Company C (Small Company)……………………………………….320
10.4.4 Company D (Medium Company)…………………………………..321
10.5 Comparative Analysis and Discussion……………………………………..323
10.6 Summary………………………………………………………………………………326
References……………………………………………………………………………………326
11 Presentation and Report Writing in Manufacturing SMEs…….333
11.1 Introduction …………………………………………………………………………333
11.2 The Nature of Presentations Provided by Work Study
Specialists in Manufacturing SMEs 333
11.2.1 Kinds of Presentations in Manufacturing SMEs ……………..334
11.2.2 Guidelines to Follow When Presenting in Manufacturing
SMEs 335
11.2.3 Presentation Procedures in Manufacturing SMEs……………. 335
11.3 Report Writing Provided by Manufacturing SMEs……………………..336
11.3.1 The Purpose of Report Writing in Manufacturing SMEs…..336
11.3.2 Kinds of Reports Used in Manufacturing SMEs………………337
11.3.3 The Format of Report Writing in Manufacturing SMEs…….337
11.4 Report Writing on Case Studies Investigations Conducted in
Manufacturing SMEs in South Africa 338
11.5 Comparative Analysis and Discussion……………………………………..339
11.6 Summary………………………………………………………………………………339
References……………………………………………………………………………………340
12 Conclusion and Further Research Studies…………………………..343
12.1 Summary …………………………………………………………………………….343
12.2 Concluding Remarks……………………………………………………………..345
12.3 Further Research Studies………………………………………………………..346
Index………………………………………………………………………………………….. 347