This document summarizes a study on implementing Lean Manufacturing (LM) as a business strategy at an automobile company in South Africa, Company X. The study aimed to assess LM implementation at Company X, identify limitations affecting it, and recognize wastes in the production process. Data was collected through questionnaires with 61 employees and interviews with 15 managers. Results showed that LM principles were implemented, with employee involvement being highest. Continuous improvement and customer focus were key drivers. Lack of management commitment and LM understanding limited implementation. Recommendations included leadership coordination, quality and customer focus as core drivers, addressing limitations, and using LM for competitive advantage when backed by goals and quality management.

1. Implementing Lean Manufacturing as a Business
Management Strategy to eliminate waste:
The case of an Automobile company
Authors:
Mr. Eric Mikobi Bakama
Mr. Sambil Charles Mukwakungu (PRESENTER)
Prof. Nita Sukdeo
FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT
Department of Quality and Operations Management
Presented by Sihle Mankazana

2. INTRODUCTION

3. INTRODUCTION
S.C. MUKWAKUNGU & C. MBOHWA – 2016
3

4. INTRODUCTION

5. AIM & OBJECTIVES
(1)To assess the implementation of LM at
company X;
(2)To highlight the limitations that can
affect the implementation of LM at
company X and finally;
(3)To identify wastes that currently occur in
company's X production process to
understand better how LM can be
beneficial to the company.
This study aims to evaluate and
determine how improvement in
business operations can be
achieved in company X's current
production processes using lean
principles.

6. RESEARCH APPROACH
The mixed-
methods
sequential
explanatory
design
POPULATION
3 different
departments of
company X:
• Production,
• Maintenance /
Engineering,
• Human Resource
SAMPLING
• Non-probability sampling (convenience
sampling)
• QUANT: 61 respondents from company X
 foreman, supervisors, technicians,
artisans and general workers
• QUAL: 15 participants through
unstructured interviews with senior
management, quality control managers
and engineers, plant engineers
DATA ANALYSIS
• QUANT: Methods of central tendencies
(means) have been used with software
Microsoft Excel and SPSS 26.
• QUAL: Nvivo (release 1.0) was used to
analyse qualitative data.
QUANTITATIVE ANLYSIS Qualitative ANLYSIS
DATA COLLECTION
• QUANT: Questionnaire with 2 main parts:
(a)The Lean implementation (Lean principles
implementation, lean drivers, benefits and
barriers) (b) Types of waste in the company.
• QUAL: Unstructured interviews and
observations were used for the qualitative
approach

7. QUANTITATIVE RESULTS
Lean implementation principles
• Literature helped develop the list of
lean principles used to assess the
LM implementation in company x
• Respondents were asked to rate the
level of adoption on each of the lean
principles listed based on their
current manufacturing practices.
• The results show that LM principles
is implemented in company X
• Employee involvement and
workforce commitment lead
scores with a mean of 3.94 and
3.98, respectively. This shows a
significant commitment on the side
of company X as they consider their
employees critical in the automobile
industry as the customers' safety is
also crucial.
1 2 3 4 5
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Figure 1:

8. QUANTITATIVE RESULTS
Lean systems enablers
• The respondents were asked to
indicate the forces that influenced
their decision to implement LM.
• Figure 2 illustrates the driving factors
that force respondents from
Company X to implement LM.
• Most of respondents identified the
organization's continuous
improvement program as a
significant Lean systems enabler.
• Other factors such as the customer
focus have also been highlighted,
which should also be considered
critical since businesses exist for
customers and are the primary
consumers.
Figure 2:

9. QUANTITATIVE RESULTS
Limitations of Lean System
implementation
• Implementing LM can be an
excellent achievement for company
X.
• Various limitations should be
considered.
• Using mean scores, Figure 3
highlights those limitations
developed from literature on LM.
• Most respondents found that senior
managers' lack of accountability
and adequate knowledge of LM
are significant implementation
limitations. Knowing LM is one
thing, and implementing is another.
1 2 3 4 5
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Figure 3:

10. QUALITATIVE RESULTS
• During the interviews, respondents
were given a list of various waste
sources that happened in the
company during the production
process based on the observations
conducted by the researchers for 2
weeks between 10h00 and 12h00
then 14h00 and 16h00 (Fig 4).
Figure 4: Observed waste sources @ company X
Respondents were asked to provide the
probable cause of the waste and potential
actions that can be taken to minimize the waste.
This exercise was interesting as it allowed
respondents not just to know the problem but
provide a possible solution to it.

11. QUALITATIVE RESULTS
LM Success factors at company X
• Most respondents favoured
continuous improvement.
• They believed that the company
should continuously challenge them
to improve and be innovative.
• Other respondents believed that
flexibility in conducting their work is
also essential. Everyone would
know exactly what happens at a
specific production stage, and they
can intervene should there be a
need to.
• Alternatively, respondents have also
mentioned teamwork and the
development of KPIs as necessary
to a successful LM system.
Figure 5: Respondents' success factors at company X

12. RECOMMENDATIONS
• This study explored the implementation of LM at company X, an automobile company in South
Africa
• LM is beneficial to implement as a business strategy rather than at the process operation level
only.
• Leadership must be at the forefront of its implementation through coordination of teams managed
by project managers at planning and implementation phases.
• The focus is product quality and customer satisfaction as the core drivers.
• The study indicates that the success of LM implementation at the business strategy level pivots
on lean enablers being the drivers of performance.
• Lack of management commitment; lack of understanding at various levels in the organization are
just a few of the listed limitations that can hinder the implementation of LM at company X.
• Lastly, LM, when backed by clear company goals, well-defined quality objectives and fully
implemented quality management systems, LM can be such an excellent tool for company X's
competitive advantage.

13. ACKNOWLEDGMENT
• The authors would like to thank
T. Rakubu, N.P. Mtimunye and
L. Ramoba for their
contributions to this work in data
collection and observations.
• Thus study would not have
seen the day without their input.
BIG THANK YOU
TO THEM!

14. A
THANK YOU

ANY QUESTIONS?