Assessment of Nampak’s implementation of world class manufacturing strategy within the Nampak Plastic Rigids division

Masha, Lerato Kennilworth (2014-04)

Thesis (MBA)--Stellenbosch University, 2014.


ENGLISH ABSTRACT: World Class Manufacturing (WCM) was first introduced into Nampak in 1990, and since then, there have been three attempts by the organisation to re-implement WCM in the organisation. In the last 23 years, 1990-2013, no formal assessment has been done with regard to evaluating whether the introduction of WCM was effective or not in the organisation, according to the goals and objectives set when the projects were initially implemented. The aim of this research report was to evaluate whether the implementation of WCM was effective in the Nampak Plastic Rigids (PRs) clusters and the study focused on only three operations namely; Nampak Tubes, Closures and Megapak. Secondly, the research aimed to establish what elements were required to successfully implement and sustain WCM in an organisation. Through the research it was established that in order to implement and sustain WCM successfully the following elements are required; strategy alignment, strategy implementation or execution, benchmarking, employee involvement, change management and the correct selection of continuous improvement tools and tactics. The three operations selected in the study were then evaluated against these elements through a survey, in order to gauge their alignment against each element. The research found that none of the three operations met the ideal state of 85 per cent in aligning themselves to the six elements. Nampak Tubes was the only operation that came close to the required ideal level of 85 per cent, as the operation had re-implemented WCM in 2011 and as a result, the operations performance in terms of the selected KPIs was better than that of the other two. However, on average none of the three operations reached the 85 per cent ideal range. This was an indication that the PRs were not aligned to the required six elements in their attempt to implement WCM, and despite the three previous attempts, success had not been achieved. The elements could prove complex as regards their comprehension and implementation as guided by the literature review and research, thus leadership should take careful note of the relationship between all of them. The organisational leadership is responsible for ensuring that the WCM strategy is driven centrally and adopted by all the stakeholders in the organisation, as all the elements require a leadership intervention. World Class Manufacturing is more than a concept or a project; it is a philosophy which should be treated as a way of life, if organisations are to be successful in being competitive.

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