The National Productivity Institute (NPI) aims to improve productivity across South Africa through various programs. It provides technical support to companies facing challenges like Serco Industries, which was struggling with late deliveries, quality issues, and losing market share. With NPI's help implementing quality management and coaching, Serco improved productivity, increased sales, created new jobs, and secured existing ones. The NPI also assisted Widney Transport Components through a continuous improvement program, helping them reduce lead times, increase on-time delivery, and capture more of the market. The NPI supports companies through initiatives like social plans to prevent job losses and the Workplace Challenge Programme to boost competitiveness.

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/