Development of a continuous improvement framework for a small scale steelmaking company

Date
2018-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The South African steelmaking industry is currently sailing through a turbulent economic period characterised with commodity price instability and competition from European and Asian markets. This research study focuses on creating a production cost advantage for a local steelmaking organisation through the implementation of a continuous improvement (CI) framework. Implementing CI activities focuses on product value creation by systematic identification and elimination of process waste in the production process on a continuous basis. Through a systematic literature review on the applications of lean manufacturing in South Africa, the research identified that there was limited application of continuous improvement techniques in steelmaking sector. The study further investigated the development of the South African steel industry and applications of Industrial Engineering (IE) principles to the industry. Findings of this review buttressed the absence of IE systematic research for steelmaking in South Africa. To understand continuous improvement, the student used conceptual framework analysis (CFA), a non-deterministic research tool that provides a method to conceptualise a specific subject. The identified concepts of continuous improvement are: CI process management, organisational infrastructure and supportive framework, and CI techniques. These three concepts were used to construct a CI implementation framework for Unica Iron and Steel Company in Hammanskraal, Pretoria. The implementation framework consists of a cycle with six CI process management steps which include process audit, identification of areas of improvement, improve, optimise, sustain and review. The framework is based on the following CI techniques: Lean Manufacturing, Toyota Production System, Six Sigma and Theory of Constraints. To successfully implement CI activities the organisation should have proper channels of communication between line employees, supervisors and operational managers as organisational infrastructure and supportive framework aspects. To assist in the validation of the CI implementation framework, Technomatix simulation software was used. From the results obtained through simulation, the first improvement cycle revealed 78% improvement in throughput per shift.
AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse staalvervaardigingsbedryf vaar tans deur 'n onstuimige ekonomiese tydperk wat gekenmerk word deur die prysstabiliteit en die mededingendheid van die Europese en Asiatiese markte. Hierdie navorsingstudie fokus op die skep van 'n produksiekostevoordeel vir 'n plaaslike staalproduksie organisasie deur die implementering van 'n deurlopende verbetering (DV) raamwerk. Die implementering van DV-aktiwiteite fokus op produkwaarde-skepping deur die stelselmatige identifisering en eliminering van prosesafval in die produksieproses op 'n deurlopende basis. Die navorsing het deur middel van 'n sistematiese literatuuroorsig oor die toepassings van maer produksie in Suid-Afrika, bepaal dat beperkte toepassings in die staalvervaardigingsektor tans bestaan. Die studie het verder ondersoek ingestel na die ontwikkeling van die Suid-Afrikaanse staalindustrie en toepassings van bedryfsingenieurswese (BI) -beginsels vir die bedryf. Bevindinge van hierdie oorsig beklemtoon die afwesigheid van sistematiese navorsing in BI vir staalvervaardiging in Suid- Afrika. Om deurlopende verbetering te verstaan, het die student konseptuele raamwerkanalise (KRA) gebruik, 'n nie-deterministiese navorsingsinstrument wat 'n metode bied om 'n spesifieke onderwerp te konseptualiseer. Die geïdentifiseerde konsepte van deurlopende verbetering is: DV prosesbestuur, organisatoriese infrastruktuur en ondersteunende raamwerk, en DV tegnieke. Hierdie drie begrippe is gebruik om 'n DV - implementeringsraamwerk vir Unica Iron and Steel Company in Hammanskraal, Pretoria, op te stel. Die implementeringsraamwerk bestaan uit 'n siklus met ses DV prosesbestuurstappe wat proses-oudit insluit, identifisering van verbeteringsareas, verbeteringe, optimisering, en onderhoud. Die raamwerk is gebaseer op die volgende DV tegnieke: Lean Manufacturing, Toyota Produksie Sisteem, Ses Sigma en Theory of Constraints. Om die DV-aktiwiteite suksesvol te implementeer, moet die organisasie behoorlike kommunikasiekanale hê tussen lynwerknemers, toesighouers en operasionele bestuurders as organisatoriese infrastruktuur en ondersteunende raamwerk aspekte. Die validering van die DV implementeringsraamwerk was gedoe deur Technomatix simulasie sagteware te gebruik. Uit die resultate van die simulasie was die bevinding dat die eerste verbeteringsiklus 'n verbetering van 78% in deursetverhoging per skof lewer.
Description
Thesis (MEng)--Stellenbosch University, 2018.
Keywords
Six sigma (Quality control standard), Continuous improvement process, Lean manufacturing, Steel industry and trade, Theory of constraints (Management)
Citation