SMME Support Structure
Improving Productivity,
Profitability and
Competitiveness
NAFCOC RE-LAUNCH
CONFERENCE: BOJANALA
DIS...
PRESENTATION OUTLINE
NPI Mandate
Overview of NPI Strategic Thrusts
Local Case Study: Turn Around Strategies
Local Case...
MANDATE
 Tasked with the responsibility of improving
productivity in all spheres of the nation’s economic
and community l...
STRATEGIC THRUSTS
 Enterprise productivity and competitiveness
 Micro-small enterprises productivity
capabilities
 Publ...
SOCIAL PLAN PROGRAMME
The programme is an initiative of the Jobs
Summit, aimed at reducing retrenchments
and creating new...
SOCIAL PLAN PROGRAMME (cont
 it aims to prevent job losses and a decline in
employment by promoting negotiations on
secur...
WHAT DOES IT COST?
This support initiative is partially funded
by the state, which pays 65% of the
consulting costs. The ...
PHASE 1 – PREVENTING JOB LOSSES
Through the National Productivity Institute’s social
plan technical support facility, we ...
PHASE 2 – MANAGING RETRENCHMENT
Following notification by the company, the
Department of Labour will:
 Provide counselli...
PHASE 3 – JOB CREATION
The Department of Provincial and Local
Government will help by:
 Developing regional and local ec...
PROCESS OVERVIEW
SERCO INDUSTRIES
Serco Industries started up 20 years ago. The
business grew steadily and by the late 1990's was
the lead...
THE PROBLEM
After an indepth analysis, the NPI
determined the following problems:
 Late delivery
 Low productivity
 Cl...
NPI’s SOLUTION
Implementation of quality management and
production methods
Management were coached
Supply chain develop...
THE IMPACT
As Serco's performance improved, clients expressed approval of the
positive developments and started to place ...
HIGHLIGHTS
64 jobs secured
34 new jobs created
14 learnerships
created
75% full order on-time
delivery to clients
WORKPLACE CHALLENGE PROGRAMME
Workplace Challenge Programme-
Supply side measure of the DTI
Aimed at improving productiv...
WIDNEY TRANSPORT COMPONENTS
Widney’s core business is the
manufacture of aluminium framed
sliding windows for the transpo...
STEPS FORCONTINUOUS
IMPROVEMENT
Participated in the Alberton Cluster since late 2003
Leadership commitment and labour bu...
RESULTS
Reduced lead time from 6 weeks to 3 weeks
No customer rejects, from 3000 (internal rejects in 2001)
Increase in...
HIGHLIGHTS
Widney is the first company worldwide to
design and manufacture plastic windows to
the rail market.
Innovatio...
END!
THANK YOU FOR YOUR
ATTENTION!
RELEVANT INFORMATION:
Telephone: (011) 848-5300
National Productivity Institute: www.np...
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Nafcoc Conference'v3_24Aug06.PPT

Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - Nafcoc Conference'v3_24Aug06.PPT

  • 1. SMME Support Structure Improving Productivity, Profitability and Competitiveness NAFCOC RE-LAUNCH CONFERENCE: BOJANALA DISTRICT Rustenburg Civic Centre By: Conrad Sebego-Principal Consultant
  • 2. PRESENTATION OUTLINE NPI Mandate Overview of NPI Strategic Thrusts Local Case Study: Turn Around Strategies Local Case Study: Continuous Improvement
  • 3. MANDATE  Tasked with the responsibility of improving productivity in all spheres of the nation’s economic and community life.  Governed by a tripartite Advisory Council drawn from government, labour and business.  Our offices Johannesburg, Durban and Cape Town.
  • 4. STRATEGIC THRUSTS  Enterprise productivity and competitiveness  Micro-small enterprises productivity capabilities  Public sector efficiency and effectiveness  Knowledge Management and Research  Strategic Leadership on Productivity
  • 5. SOCIAL PLAN PROGRAMME The programme is an initiative of the Jobs Summit, aimed at reducing retrenchments and creating new jobs:  it applies when large scale retrenchments look likely (50 people or 10% of the organisation’s labour force) because retrenchment on this scale can affect the sector, regional or national interests
  • 6. SOCIAL PLAN PROGRAMME (cont  it aims to prevent job losses and a decline in employment by promoting negotiations on security of employment  It aims to lessen the social and economic impact on individuals, regions and the national economy A social plan approach is vital when there is a reasonable possibility of developing alternatives that could save jobs
  • 7. WHAT DOES IT COST? This support initiative is partially funded by the state, which pays 65% of the consulting costs. The company pays the balance. Companies that cannot afford to contribute 35% should submit a special application for a 100% funded intervention.
  • 8. PHASE 1 – PREVENTING JOB LOSSES Through the National Productivity Institute’s social plan technical support facility, we can:  Establish Future Forums to identify problems, working collaboratively with labour and management on the future of the company  Save the jobs of workers facing retrenchment by providing technical assistance and support  Develop strategies to turn the company around  Improve the company’s performance through better marketing, operations and financial strategies  Assist companies to assess their performance and detect early signs of decline
  • 9. PHASE 2 – MANAGING RETRENCHMENT Following notification by the company, the Department of Labour will:  Provide counselling of affected workers  Present life skills techniques in compiling a resume, interview behaviour, etc.  Provide information on accessing opportunities for employment, small, medium and micro enterprises and provincial projects  Provide contact details for organisations of learning or financing small business  Assist with skills development
  • 10. PHASE 3 – JOB CREATION The Department of Provincial and Local Government will help by:  Developing regional and local economies  Regenerating local economies affected by large scale retrenchment
  • 11. PROCESS OVERVIEW
  • 12. SERCO INDUSTRIES Serco Industries started up 20 years ago. The business grew steadily and by the late 1990's was the leading supplier of insulated trucks in the country. New competitors emerged using lower prices and faster turnaround from their under-utilised facilities, and were able to capture a significant share of Serco's traditional market. Serco was in distress and facing the real provide assistance in turning the company around.
  • 13. THE PROBLEM After an indepth analysis, the NPI determined the following problems:  Late delivery  Low productivity  Clients complained of poor quality  Lack of reporting systems and ineffective planning  Accepted inferior products from suppliers  Ineffective customer relations
  • 14. NPI’s SOLUTION Implementation of quality management and production methods Management were coached Supply chain development saw lead times and quality improve. Accurate specifications were developed and used to ensure products were delivered "right first time". Researching the market and identifying customer issues affecting relationships and sales
  • 15. THE IMPACT As Serco's performance improved, clients expressed approval of the positive developments and started to place more orders with the company. Turnover increased from R30.5 million in 2002/3 to R 45.0 million in 2004/5. Innovative thinking resulted in the development of new, technologically advanced trailers. Production increased from 12 units per months to 17 units per month A target of 80% "right first time" on completed products has been achieved. Improved workforce morale and greater motivation at management levels
  • 16. HIGHLIGHTS 64 jobs secured 34 new jobs created 14 learnerships created 75% full order on-time delivery to clients
  • 17. WORKPLACE CHALLENGE PROGRAMME Workplace Challenge Programme- Supply side measure of the DTI Aimed at improving productivity and competitiveness of enterprises by:  Increasing collaboration between management and workers  Implementing Best Operating Practices  Sharing and disseminating lessons
  • 18. WIDNEY TRANSPORT COMPONENTS Widney’s core business is the manufacture of aluminium framed sliding windows for the transport industry. Widney services three main customers namely: automotive industry, bus industry and rail industry.
  • 19. STEPS FORCONTINUOUS IMPROVEMENT Participated in the Alberton Cluster since late 2003 Leadership commitment and labour buy-in was crucial for success from the onset Established minibusiness areas and necessary support structures Created visual display mechanisms Agree on performance and productivity improvement measures Generate standars judiciously and maintain them Conducted regular audits Problem solving sessions are active and functional Sharing of benefits due to improvements
  • 20. RESULTS Reduced lead time from 6 weeks to 3 weeks No customer rejects, from 3000 (internal rejects in 2001) Increase in productivity of 10% Increase in on-time delivery of 8% Bus assembly time reduced from a week to one day 100% pass rate on related training and improvement programme (ABET) Increased worker participation 10 Learner-ships completed; personnel retained as staff Absenteeism at less than 2.5% Clearer focus on the customer.
  • 21. HIGHLIGHTS Widney is the first company worldwide to design and manufacture plastic windows to the rail market. Innovations harvested from employees resulted in R3500 saving on the cost of making the product. Captured close to 70% of the market share. Employees empowered to make improvements and implement their ideas.
  • 22. END! THANK YOU FOR YOUR ATTENTION! RELEVANT INFORMATION: Telephone: (011) 848-5300 National Productivity Institute: www.npi.co.za Social Plan: www.turnaroundsolutions.co.za Workplace Challenge: http://dev.absol.co.za/publisher%5Fwpc/

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