A case study approach to assess the growth towards world class at EH Walton Packaging (Pty) Ltd

• Main Author: Piron, Susan
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2008
• Subjects: Total quality management; Manufacturing resource planning
• Online Access: http://hdl.handle.net/10948/d1018759

The Printing and Packaging Industry in South Africa has become very competitive over the last decade. Imports and the move towards environmentally friendly packaging have put additional strain on certain sectors of this industry. EH Walton Packaging (Pty) Ltd is one of oldest converters in the industry, established in 1845, and has always been a leader with regards to new technology. It has grown from a small, family business to one of the biggest and most respected in South Africa, but it is still a private company. Due to the rapid growth the shareholders approved a multi-million rand expansion project in 2000. After completion the anticipated increase in shareholder value did not materialize, even though the production facility is always busy. The objective of this research study is to demonstrate to senior management that quality does not end with accreditation of ISO 9001:2000, but that total quality management is invaluable as a business strategy to reach world class manufacturing standards and to sustain organisational excellence. The research will investigate the origins and development of total quality management and world-class manufacturing and extract the most important elements that form the basis of sustainable competitiveness, as well as research done on the reasons why businesses fail. These elements will be further investigated, with special emphasis on the African/South African environment. Research showed that sustained excellence in business and quality is based on customer focus, guided by strategic planning, with leadership at the core, enhanced by philosophy, employee improvement and involvement, and quality assurance. Failure of achieving excellence is best summarized by Deming’s Seven Deadly Sins. The case study approach that was followed to determine the status of total quality elements within the company yielded contrasting results. A number of the “sins” were identified as present in the business strategy; levels of leadership varies from traditional Summary to high performance; understanding of where the company is heading is fragmented; there are no social programs in place and training only concentrates on apprenticeships and not on developing shop floor skills – to mention a few. Surprising is the world-class orientation with regards to customers; but again, this is contrasted with the lack of active customer satisfaction initiatives. The study concludes that although many negative aspects exist and that the prevailing culture does not appear to support change towards world-class growth, there is an element of positive energy among employees. Most of the employees who participated in the study believe that the company has a bright future. It is these attitudes that must be used to drive change, with a clear vision, good strategies and world-class leaders.