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Enhancing the Role of the Kaizen Suggestion Tool in South African Lean Automotive Companies of the Eastern Cape

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Enhancing the Role of the Kaizen Suggestion Tool in South African Lean Automotive Companies of the Eastern Cape ENHANCING THE ROLE OF THE KAIZEN SUGGESTION TOOL IN SOUTH AFRICAN LEAN AUTOMOTIVE COMPANIES OF THE EASTERN CAPE By ADEDEJI, Adeyemi Charles Submitted in fulfilment of the requirements for the award of the degree of Philosophiae Doctor in Operations Management at the Nelson Mandela Metropolitan University December, 2011 Promoter: Professor Koot Pieterse Declaration I, Adedeji Adeyemi Charles, student number 208094596, hereby declare that the thesis for the award of the degree of Doctor Technologiae by research is my own work and that it has not previously been submitted for assessment or completion of any postgraduate qualification to another university or for another qualification. Adeyemi Charles Adedeji Date:.................................................. ii Abstract The Toyota manufacturing system, aptly referred to as Lean manufacturing, has received a reasonable appreciation and awareness over the past decade in South African industry. This production phenomenon constitutes an organizational culture that encourages world-class production success through the liberation of factory resources, while employees are empowered and encouraged to contribute ideas for the improvement of processes and products. However, despite lean awareness and the crucial role of employee participation in the suggestion of ideas in world-class organizations, the performance level of lean manufacturing in South African industry is largely devoid of the Kaizen suggestion tool, particularly in the automotive companies of the Eastern Cape. The aim of this research was to proffer appropriate recommendations, improved awareness, understanding and practice for the improvement of the Kaizen suggestion principle in the automotive companies of the Eastern Cape. The research primarily focused on the ‘management/employees’ paradigm within the organisational context. The methodology employed in the study included a thorough review of the relevant literature and a questionnaire, which was developed and administered to both the management and employees of the thirty automotive components suppliers in Eastern Cape. The target companies constituted the units of analyses and therefore provided the opportunity for a detailed investigation of the links between management and employees as well as a submission of ideas for operational and organisational processes as established in the literature review. Epistemologically, the research is objectivist and paradigmically, positivist. However, some qualitative aspects of the data were relevant to the study and, therefore, were used in a complementary manner. The case approach utilized mixed methods by applying a range of data collection techniques and evidence from iii multiple sources while the sampling technique was sequential, involving both purposive and stratified random sampling. The study reveals the apparent lack of a systematic mechanism for the practice and administration of the Kaizen suggestion tools in most Eastern Cape automotive companies. This demerit is found to have negatively affected maximum employee participation and involvement in organizational decision making within the Province. The study has established a basic level of awareness and understanding among employees/employers relations that the Kaizen suggestion scheme is a vital tool for delivering strategic objectives in the management of decision making and organizational growth. The study strongly advocates the inclusion of employee suggestion systems as part of the organizational process. iv Acknowledgements I give all glory and thanks to the Almighty God who gave me the grace, strength and needed human support to complete this research. I sincerely acknowledge that this research would not have been possible without an enablement from God and the support of many people. May I express my heart felt thanks to my promoter/supervisor Professor Koot Pieterse who has demonstrated a rare sort of kindness that has never before been shown to me. He deserves my gratitude for stimulating and sharpening my research skills, for personal advice, friendship and invaluable inputs into this work. To you, Koot, I say a big thank you. I sincerely hope that my personal and professional relationships with you will be sustained in the years ahead. I am also grateful to the Head of Department, Ann Lourens for her confidence in my research capabilities. My thanks also go to Dr Jaques Pietersen of the Statistics Unit and Professor Okoh, who provided the necessary assistance for my data analysis and edited the thesis respectively. I would like especially to thank Mr Kevin Okolie, Daddy Fred Eboru, Dr. & Attorney Olowookorun, Dr. & Mrs. Ojodu, Dr. & Mrs Fagbuyi, Dr. & Mr. Adeyemi and their family for their labour of love, prayers and support throughout my programme. Kevin, I will always remember you and your input into this research. I also thank my colleaques in the Department of Industrial Engineering, namely, Karl Van der Merwe and Andrew Murray. Chantel Koekemoer, the amiable secretary, is equally appreciated. v I acknowledge with thanks the contributions and support of my brethren in the Redeemed Christian Church of God, Redemption Sanctuary, Port Elizabeth. Thank you all for your prayers and support. My special thanks go to my beloved wife, Mobolaji Elizabeth Adedeji for her encouragement, love, care and understanding through thick and thin during this study. Your unequal love and prayers gave me momentum throughout the period of this endeavour. Thank you my love. I show here, my appreciation to the Postgraduate Scholarship Scheme of the Nelson Mandela Metropolitan University, Port Elizabeth for providing additional funding for my studies. vi Dedication This thesis is dedicated to the Almighty God. vii Table of Contents Declaration ................................................................................................................ ii Abstract .................................................................................................................... iii Acknowledgements .................................................................................................. v Dedication ............................................................................................................... vii Table of Contents .................................................................................................. viii List of figures ......................................................................................................... xvi List of tables ........................................................................................................ xviii Chapter 1 : PROBLEM AND ITS SETTINGS ...................................................... 1 1.1 Background .......................................................................................................... 1 1.2 THE PROBLEM DEFINITION .............................................................................. 5 1.2.1 Main problem ................................................................................................. 5 1.3 AIM AND OBJECTIVES OF THE STUDY ............................................................ 6 1.4 RESEARCH LIMITATION ................................................................................... 7 1.5 DEFINITIONS AND OVERVIEW OF SELECTED CONCEPTS ........................... 7 1.5.1 Globalization and Organizational Competitive Edge ...................................... 7 1.5.2 Organization Structure, Leadership and Employee Engagement .................. 9 1.5.3 Lean principles in the Organizational paradigm ........................................... 13 1.5.4 Employees’ Empowerment and Involvement in Suggestion Scheme ........................................................................................................ 14 viii 1.5.5 Employees’ Empowerment, Training, and Motivational Incentives. .................................................................................................... 16 1.6 KEY ASSUMPTIONS ......................................................................................... 19 1.7 SIGNIFICANCE OF THE RESEARCH ............................................................... 20 1.8 THE RESEARCH DESIGN ................................................................................ 22 1.8.1 Research Methodology ................................................................................ 22 1.9 The structure of the thesis .................................................................................. 23 Chapter 2 : THE CASE FOR EMPLOYEE EMPOWERMENT AND PARTICIPATION IN THE SUGGESTION SYSTEM ................................................ 27 2.1 Introduction ........................................................................................................ 27 2.2 The World-Class manufacturing paradigm ......................................................... 29 2.3 Lean and its bearing on employees’ empowerment and participation in the suggestion system .................................................................................... 38 2.3.1 The Employee suggestion scheme – Kaizen Teian ..................................... 40 2.4 Continuous improvement (Kaizen) ..................................................................... 46 2.5 The 5 Principles of Lean Production .................................................................. 49 2.6 Toyota’s 14 Principles of Lean Production ......................................................... 51 2.7 Tools in Lean Production...................................................................................
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