Assessing the impact of the lean manufacturing supplier development practices of an Eastern Cape vehicle manufacturer

• Main Author: Botha, Christo Johannes
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2006
• Subjects: Production management; Automobile industry and trade > South Africa > Eastern Cape; Industrial procurement
• Online Access: http://hdl.handle.net/10948/480

The world automotive industry has evolved through different manufacturing methodologies over many decades. It originated from craft production, but was transformed to mass production by Henry Ford in response to increased market demand. The methodology developed by Henry Ford made it possible to produce quality vehicles in large numbers and at affordable cost to the general public. However, it cannot deliver a great variety of products to the marketplace. Mass production was overtaken by a new automotive manufacturing methodology developed in Japan after World War II. The methodology, commonly referred to as lean production, yields consistently high quality products at even lower costs, whilst being able to deliver a variety of products to the consumer. The effectiveness of the lean production methodology hinges upon the strength and closeness of the relationships that exist between the assembler and its suppliers. Different models have been developed over time to describe the relationships between automotive assemblers and their suppliers. The lean supply model is generally accepted as an effective way of describing the relationships that exist between an automotive assembler and its first tier suppliers in a lean manufacturing environment. The research study aims at gaining an improved understanding of the relationships that exist between a selected Eastern Cape automotive assembler and its first tier suppliers. The effect of its supplier support practices towards lean manufacturing implementation amongst its first tier suppliers is evaluated. For the selected assembler it is found that the effect of its supplier support practices on lean manufacturing implementation amongst its first tier suppliers is limited by a non-uniform approach followed towards the supplier base. It is shown that opportunities for improvement exist for the selected assembler to develop closer relationships with its first tier suppliers to increase its global competitiveness.