“TOGETHER MOVING THE GAUTENG CITY REGION FORWARD”

AIDC Kaizen promotion and development

African Kaizen Annual Conference

Presentation by:Nkumbuzi Ben-Mazwi

02 July 2018

2

Who is the AIDC

• Established in 2001 by Industry & Gov.

• Established as an industry support centre with a

focus on automotive sector.

• The AIDC is an implementation agency of

provincial government

• Approx. 150 staff across multiple sites

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SA AUTOMOTIVE

Landscape

4

Johannesburg

Where are the

Original

Equipment

Manufacturers,

OEMs,

Located

in

South

Africa ?

Lesotho

UitenhageEast London

Durban

Port

Elizabeth

Rosslyn

Original Equipment Manufacturer

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Auto Sector at a Glance

Source: AIEC, Econometrix, NAAMSA/Lightstone Auto,NAACAM, OICA, SARS

Indicator Performance

2015 2016

ConsumerPrice Index (CPI) 4,6% 6,3%

South Africa’sGrossDomestic Product (GDP) (current prices) R4 049,8 billion R4 337,0 billion

Broader automotive industry contribution to GDP 7,5% 7,4%

Vehicle and componentproduction as % of South Africa’smanufacturingoutput 33,5% 33,0%

Average monthlyemploymentby vehicle manufacturers 31 260 30 953

Automotivecomponentsector employment 82 100 82 000

Capital expenditure– vehicle manufacturers R6,6 billion R6,4 billion

Capital expenditure– componentsector R2,8 billion R2,6 billion

Total South Africannew vehicle sales 617 648 units 547 406 units

Total South Africanvehicle production 616 082 units 599 004 units

South Africa’svehicle production as % of Africa’svehicle production 64% 58,5%

South Africa’sglobal vehicle production ranking 22nd 22nd

South Africa’sglobal vehicle production marketshare 0,68% 0,63%

Vehicle ownership ratio per 1 000 persons 180 180

Total automotive export earnings R151,5 billion R171,1 billion

Automotiveexport value as % of total South Africanexport value 14,6% 15,6%

Numberof export destinations 140 154

Numberof export destinations with export values more than doubling year-on-year 30 52

Topautomotive country export destination in rand value terms Germany Germany

Total South Africanvehicle exports 333 847 units 344 859 units

Value of vehicle exports R101,9 billion R118,1 billion

Topvehicle export destination in volume terms UK UK

Value of automotivecomponent exports R49,6 billion R53,0 billion

Topautomotive export componentcategory in rand value terms Catalytic converters Catalytic converters

Topautomotive trading partner in rand value terms Germany Germany

Topautomotive trading region in rand value terms EU EU

Topcountry of origin for total automotive imports in rand value terms Germany Germany

Topcountry of origin forvehicle imports India India

Source: AIEC, Econometrix, NAAMSA/Lightstone Auto, NAACAM, OICA, SARS

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Component Assembly and Manufacturing

Vehicle Assembly

(OEMs)

Retail Sector

Total Number of Companies

480

Tier 1 (Supply directly to OEMS)

120

Tier 2 -3 (Supply to Tier 1 and 2)

360

Total Number of Jobs 82 790

Total Number of OEM’S 22

Total number of Passenger and Light Commercial OEM’s

7

Total Number of Jobs 29 700

Total Number of Retail Companies

7 500

Total Number of Service and Repairs Companies

1 898

Total number of Fuel and garage stations

4 551

Total Number of Dealerships

1 768

Total Number of Tyre Dealers

1 506

SA Automotive Value Chain

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KAIZEN

AIDC APPROACH

and

AWARD SYSTEM

AIDC Kaizen standardized process flow

Activity 0 1 2 3 4 5 6 7 8 9 10 11 12 13

Train the trainer

Management

and Union Awareness

Company

wide mass awareness

Value Stream

Map

External and

Internal Responsibility

matrix

Orientation

Management

strategy meeting

Internal Project

review meeting (AIDC)

Model Area 1

(A-Team)

Company

MRM

Model Area 2

(B-Team)

Model Area 3

(A-Team)

Rollout

strategy meeting

Customer

satisfaction feedback

report

Implementing

committee monthly project

review meeting

Monthly

champion review meeting

Senior

Project Manager and

Champion Project

Customer

satisfaction feedback

report

Customer

satisfaction feedback

report

Customer

satisfaction feedback

report

SWOT

Implementing committee

Internal Project

review meeting (AIDC)

Internal Project

review meeting (AIDC)

Internal Project

review meeting (AIDC)

Senior

Project Manager and

Champion Project

Senior

Project Manager and

Champion Project

Senior

Project Manager and

Champion Project

Company

MRM

Company

MRM

Company

MRM

Company

MRM

Company

MRM

Company

MRM

Company

MRM

Company

MRM

Model Area 4

(B-Team)

Company

MRM

Management commitment, company and union awareness, monthly review meetings, Recognition, TEI (Total Employee Involvement)

Representatives :

1. JMAC

2. AIM (Host Supplier)

3. The Dti

4. AIDC

5. Suppliers

6. NAACAM

7. ASCCI

8. NAAMSA

KAIZEN INDUSTRY BUY IN

KAIZEN FACILITATORS TRAINING

All facilitators from different companies

Kaizen Kick-off event

TPM Kick-off at Autoliv12 December 2014

*Attended by NAACAM director

AWARD SYSTEM-SCORING CRITERIA

AWARD SYSTEM PANEL OF JUDGES

Representatives – NAACAM, OEM- Mercedes Benz and Lean Institute Africa

KEY NOTE SPEAKERS

AWARD – OVERALLWINNER

AWARD - OPERATOR SHOP-FLOOR WINNER

KEY Stakeholder JICA and LIA (Partnerships)

Award Winners

AWARD SYSTEM-PROCESS

1. Continuous annual recognition and motivation of companies on Kaizen promotion

2. Selection and invitation of companies to participate and show case CI3. Industry and Government support and participation4. Standardised presentations and proccesses for the award5. Scoring Criteria must be defined6. Independent panel of Judges and very knowledgeable on Kaizen7. Key support stakeholders and partners participation8. Define categories of awards eg. Operator/employee and Management

separation9. Recognition and rewarding of excellent achievements by Senior Industry

and Government representatives

AIDC Annual Best Practice Tours

8 Different manufacturing companies attended best practice tour* fully paid for by industry

JICA EXPERT TRAINERS AND APPROACH

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① Identify Abnormality

・ Decide Standard and Criteria

② Detect Abnormality

③ Stop Production by Abnormality

④ Inform Abnormality Immediately

⑤ Quick Countermeasures

⑥ Recurrence Prevention

Abnormality Management Process

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19 M/c in total

Supplier

Re

ceiv

ing

Pro

cess

Supplier

Supplier

Ra

w M

ate

ria

l Sto

re

Wir

e B

ulk

Sto

ck

500

379

Bojan

SLV

Se

als

Crimp Toyota

Smiths

Bosal

Test

Final Test

Final Test

Process test

Packing

Packing

Packing

Toyota

Smiths

Bosal

Raw

Material

Power Cable

Layout Board

Sleeving

Stores Bored

Line Leader

Pro

du

ctio

n

Bo

ard

Module

KIT

TIN

G

EDT

Email

Portal

Delivery Schedule

Production Planner

Production Planner

Supervisor

Purchasing Stagnation –Batch Production

Back & Fourth Movement

Too many operators – Line imbalance

MIFD

PROBLEMS IDENTIFIED FROM MIFD

2. Too many operators – Line imbalance

3. Too much movement

1. Stagnation and bulk production at each stage – total 50 at each stage

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OPERATION TIME

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Operation Time Calculation

Start Finish Total Hrs

Shift Time (Hours) 7:00 15:30 8:30

= 8,5 hours

Shift Time (min) 510 min

Less: Lunch = 30 min

Less: Tea Break = 20 min

Less: MDWT = 10 min

Total Available Time 450 min

Reprogramming of Robot and forging machine

STANDARDISED WORK CHART (BEFORE)

STANDARDISED WORK COMBINATION TABLE (BEFORE)

Above Takt

STANDARDISED WORK CHART (AFTER)

28.5% CT improvement CT now within TAKT TIME

STANDARDISED WORK COMBINATION TABLE (AFTER)

Challenges

• Commitment and leadership from an organisation leader, management and Government.

• Resources availability in terms of budget, qualified and experienced personnel.

• Kaizen Sustainability and Total Employee Involvement (TEI)

• National Government involvement and Prioritisation of Kaizen at Policy level

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THANK YOU

Nkumbuzi Ben-Mazwi

AIDC

Making excellence an attitude