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    Comparative analysis of the implementation of Toyota Production System between a tier-one and tier-two supplier
    (2024-05) Govender, Prenisha; Dewa, Mendon
    The Toyota Production systems (TPS) is a methodology that is widely used in the manufacturing automotive industry. The Toyota pyramid model consists of four levels which can be dissected into the first level of philosophy, the second level named process, the third pillar of people and partners, and lastly the problem-solving level. These are also characterised by 14 principles of the model. However, many suppliers face challenges in implementing these principles from the Toyota pyramid model due to lack of knowledge, understanding or available framework for easy implementation and guidance. This study aims to conduct a comparative analysis of the level of implementation of the 14 principles of the Toyota pyramid model by a tier-one and tiertwo supplier. This study also identified areas of strengths and weakness and made provisions for continuous improvement initiatives at each supplier for future work. A quantitative research methodology with a questionnaire as the research instrument, was adopted for this study. A 5-point Likert type scale was used to elicit responses from 25 research participants from the tier-one and tier-two suppliers. Data analysis was conducted through descriptive values of the means, skewness and kurtosis, and an independent sample t-test was used as an inferential tool to establish the relationship between the tier-one and tier-two supplier. Value stream mapping was also deployed to identify the current production processes and kaizen bursts that characterized the two organisations. The results from the comparative analysis of the level of implementation of the Toyota pyramid model revealed that tier-one supplier was demonstrating better performance than tier-two supplier in the implementation of the 14 principles. In addition, the results demonstrated that principle 1, from the philosophy level had a higher mean or was stronger for each supplier. On the hand, principle 8 and principle 12 were found to be weaker in each supplier respectively. The areas of improvement which were highlighted in the kaizen bursts on the value stream map were addressed and kaizen implementation was undertaken. These improvement initiatives included rebalancing a seat-cover assembly line and deployment of an andon management system at the tier-one supplier to improve line efficiency and line management. A framework was also proposed for the tier-two supplier to bridge the gap in its practice for implementation of the Toyota pyramid model principles. Additional principles were added to this framework to ensure an easier and understandable methodology and framework to be referred to for suppliers and companies to improve.
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    Improving competitiveness through the application of cost estimation models
    (2021-12-01) Naicker, Prianca; Olanrewaju, Oludolapo Akanni
    Optimal costing decisions are required in order to ensure that organisations are globally competitive. The case study company is a global affiliate based in Durban, KwaZulu-Natal, South Africa and is involved in the manufacture and assembly of automobiles and automotive components. It was noticed that cost estimation models were only introduced at an advanced stage in the project life cycle. The concept of cost estimation and its application to improve various factors of a business has been investigated previously and existing evidence could be utilised to support further study in the field. Therefore, the aim of the study was to improve the quality of sourcing decisions by means of the introduction of a parametric cost estimation model and business process re-engineering. A case study approach was adopted. The first objective was to develop an overview of the current sourcing processes and understand the factors which influenced sourcing decisions. The methods used included the generation of a Standard Operating Procedure (SOP) for the current sourcing process, an online survey and interviews. It was concluded that there was a need to develop a detailed SOP which identified and included all impacted departments. The second objective was to redesign the sourcing process. It was concluded that the current sourcing processes did not take cost estimates into account at the early stages of the project life cycle and the inability to accurately predict costs consequently negatively impacted the cost competitiveness of the organisation. The third objective was to develop and implement a parametric cost estimation model. The model was created using Microsoft Excel. The results revealed that the Parametric Cost Estimation Model (PCEM) needed to focus on small injection moulded components as they were the highest contributor to the high Cost Index Manufacturing (CIM), which made the organisation globally uncompetitive. The results revealed that with the introduction of the PCEM and the revised sourcing process, the selected component was competitively priced.Recommendations were made for continuous process improvement and a roadmap for the further introduction of cost estimation models. Further research could also be conducted to develop an optimal cost estimation model based on analogous costing techniques or to develop a comprehensive database for other complex commodities.