Evaluating the contribution made by works order close-out meetings at Nampak Flexible Ndabeni

Maritz, S. I. (2008-12)

Thesis (MBA (Business Management))--Stellenbosch University, 2008.

Thesis

ENGLISH ABSTRACT: The aim of this paper was to prove the contribution of the Works Order Close-Out Meeting process at Nampak Flexible Ndabeni, through the development of a Close-Out Meeting contribution evaluation model. Although the value of the Close-Out Meeting process is intuitively understood, a formal measurement would underscore the importance of the process. Using a funnel-based analysis, a total of 63 Close-Out Meeting findings was identified for formal benefit review and were categorised into five finding groups. For each of these five groups a contribution measurement methodology was developed. The methodology was rooted in sound management and ERP theory and then applied to the findings in each group. The following key groups were identified and discussed: Incorrect standards. The importance of correct standards was shown, and the potential misstatement due to incorrect standards was quantified. The analysis showed that effective, ongoing variance review can identify errors in standards and that changes can be initiated and authorised in a short timeframe. ERP process review. Findings that specifically addressed lack of proper process were reviewed and real benefit was calculated for three categories, namely information misstatement, risk mitigation and productivity gains. Formulas were developed and applied for the benefit calculation. The analysis showed it is dangerous to assume that processes are cast in stone or fundamentally sound, and that the Close-Out review process not only identifies deficiency of these processes, but initiates corrective action. Shop floor process review. The investigation into findings that addressed process conformance showed that in most cases the process breakdowns related to the accuracy of information captured into the ERP. The impact of poor information, process non-conformance and corrective action was clearly shown. Actions to improve performance. Targeted actions to improve production performance were subdivided into actions that improved productivity and actions that reduced the risk of recurrence of a negative event. Benefits were calculated using established methods, and in both cases the benefit was substantial. Business decision confirmation. The Close-Out Meeting sometimes forced analysis that did not lead to action but to a better understanding of the business reality. What was shown is that the ability to identify, list and analyse findings of this nature added value. By expanding the benefit analysis beyond a simplistic implementation of corrective action, the scope of benefits was increased. The study achieved several objectives. The analysis showed that corrective actions taken by management have a scientific base and that the implementation of corrective actions delivered real business value. This allowed the business to place the Close-Out Meetings in the correct context, as the business could conclude that Close-Out Meetings were fundamental to its continued success. From a theoretical point of view the body of knowledge around Close-Out Meetings was expanded, while the results also supported the Nampak ERP value case. Close-Out Meetings at Nampak Flexible delivered clear, measurable benefits when discussion points were converted to actions that were acted upon by the business. The value was of such a nature to confirm the importance of Close-Out Meetings as a component of good ERP-manufacturing practice.

AFRIKAANSE OPSOMMING: Die doel van hierdie werkstuk was om die bydrae van die "Works Order Close-Out Meeting" proses by Nampak Flexible Ndabeni te bewys met behulp van 'n "Close-Out Meeting" evaluasiemodel. Alhoewel die waarde van die "Close-Out Meeting"-proses intuitief aanvaar word, aksentueer die ontwikkeling van 'n formele maatstaf die belangrikheid van die proses. 'n Evaluasieproses het 'n totaa1 van 63 bevindinge opgelewer vir analise. Die bevindinge is ingedeel in vyf groeperings en vir elke groepering is 'n ste1 maatstawwe ontwikkel ten einde die bydrae van die bevindinge te meet. Hierdie maatstawwe was gebaseer op bestaande, aanvaarde ERP- en bestuursteorie. Die volgende vyf groepe was geidentifiseer en bespreek. Foutiewe standaarde. Die belangrikheid van akkurate standaarde in die stelsel is bewys, en die skaal van informasiefoute as gevolg van verkeerde standaarde is gekwantifiseer. Daar is bewys dat effektiewe, voortdurende variasie-analise foute kan identifiseer en dat die nodige korrektiewe aksie vinnig implementeerbaar is. ERP-proses. Bevindinge wat voortspruit uit swak prosesse is geidentifiseer en die waarde van die korrektiewe aksie is op drie vlakke geanaliseer, naamlik informasiefoute, risikobeheer en produktiwiteitsverbetering. Formules is ontwikkel en toegepas om die waarde van die korrektiewe aksie te bepaal. Daar is bewys dat dit gevaarlik is om aan te neem dat besigheidsprosesse fundamenteel korrek is, en dat die "Close-Out Review"-proses nie net foutiewe prosesse uitgewys het nie, maar ook die nodige korrektiewe aksie gedryf het. Fabrieksvloerproses. Die ondersoek na bevindinge wat prosesafwykings uitgewys het, het aangedui dat afwykings meestal voorgekom het as gevolg van foutiewe informasie in die ERP-stelsel. Die impak van foutiewe informasie, prosesafwykings en inisiatiewe om die akkuraatheid van informasie te verbeter is duidelik gewys. Produksieverbetering. Bevindinge wat gelei het tot inisiatiewe om produksie te verbeter is verdeel tussen produktiwiteitsverbetering en risikobeheer. Die waarde van die inisiatiewe is bereken met die gebruik van ontwikkelde metodes en in beide gevalle was die resultate baie positief. Ondersteuning by besluitneming. Die "Close-Out Meeting"-proses het somtyds gely tot analise wat nie aanieiding gegee het tot korrektiewe aksie nie, maar wel daartoe gelei het dat bestuur se begrip van besigheidsrealiteit verbeter het. Daar is bewys dat 'n proses wat besigheidsinformasie aan bestuur kan weergee ter ondersteuning van bestuursbesluite, waardevol is. Die mate van voordeel wat uit die proses stem is vergroot deur die waarde-analise uit te brei sodat dit meer is as die blote analise van korrektiewe aksie. Die berekende voordeel uit die "Close-Out Meeting"-proses is groter wanneer die hestek van die voordeel vergroot word om meer as net die direkte waarde van korrektiewe aksie in te sluit. Die studie het voldoen aan verskeie doelwitte. Daar is bewys dat bestuursaksie 'n wetenskaplike basis het en die uitvoer van hierdie aksies besigheidswaarde toevoeg. As gevolg hiervan kon die besigheid "Close-Out Meetings" in die regte konteks plaas en tot die slotsom kom dat hierdie proses 'n fundamentele drywer van besigheidsukses is. Ten slotte is die teorie oor "Close-Out Meetings" uitgebrei en die resultate het ook die waarde onderskryf wat Nampak uit sy ERP-implementasie gekry het. "Close-Out Meetings" by Nampak Flexible het duidelike meetbare voordele opgelewer wanneer die probleme wat geidentifiseer is gelei het tot korrektiewe aksie. Die waarde was van so 'n aard dat die belangrikheid van "Close-Out Meetings" as 'n komponent van goeie vervaardigingsbestuur in 'n ERP-konteks duidelik bewys is.

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