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The Faculty of Engineering at Stellenbosch University is one of South Africa's major producers of top quality engineers. Established in 1944, it currently has five Engineering Departments.

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Alternative technologies for the production of high carbon ferromanganese: A techno-economic Evaluation
(Stellenbosch : Stellenbosch University, 2020-12) Sithole, Ntokozo Aphelele; Bam, Wouter; Steenkamp, Joalet Dalene; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: The manganese resource (land-based) in South Africa is currently the largest, accounting for 75% of the global resource. Ore exporting has increased from 50% of the total sales in 1997 to around 85% in 2016 and the trend seems to be increasing (Directorate Mineral Economics, 2017). Furthermore, manganese smelters have either reduced capacity or shut down completely due to operational costs. Van Zyl (2017) explored the various aspects that limit growth in the mineral value chain (Van Zyl, 2017). One of the barriers that were identified in the beneficiation of manganese is the high cost of electricity required for ore smelting. Ferromanganese in South Africa is produced using Submerged-arc furnace (SAF) technology which relies heavily on electricity during production. The current study aimed to identify and compare alternative furnace technologies that can or could produce HCFeMn. The main criterion is to substantially reduce the reliance on electricity during production. The objective of the study was to make use of a literature review in the ferromanganese industry and the ironmaking industry to identify suitable alternative furnace technologies. Alternative technologies will then be compared using a techno-economic evaluation to assess the financial performance of each furnace when compared to the current technology the SAF. The evaluation consisted of mass and energy balances of the HCFeMn process and economic models. Furthermore, the sensitivity of the economic model results in response to deviations in CAPEX and OPEX estimates was investigated. The SAF was compared to the BF that was identified in the ferromanganese industry and the COREX® that was identified in the ironmaking industry. Both technologies commercially produce FeMn and/or pig iron. The BF relies on coke and the COREX® relies on coal. Mass and energy balance model results indicate that SAF recovers the least amount of manganese at 82.8% and the COREX®recovers the most at 84.1%. Fixed capital costs make the SAF the most attractive, the COREX® and BF cost 35% and 37% more, respectively. Annual production costs per ton of alloy for the COREX® on average over the project life are over 26% lower than both furnaces. The COREX® had the highest NPV (R 11 430.46) and IRR (33.11%) with the lowest discounted payback period of 7 years. The SAF NPV was 33% lower, IRR 5.04% lower, and DPBP 1 year longer than the COREX®. The BF performed the worst financially. In all three scenarios, the COREX® yielded a positive NPV, meaning the probability of a 15% return is 1. Furthermore, manganese recoveries as low as 79.7% still yield an NPV 38% higher than the SAF base case. Sourcing of technical and economic data was a challenge, the BF model had outdated HCFeMn process data available. The COREX® has no data published for the HCFeMn process, data can be obtained from thermochemical modelling, laboratory or pilot plant scale tests. Process data specific for the COREX® could improve the quality of the model outcomes of the. Collaborations with Mintek and industry partners are recommended to obtain better quality technical and economic data.
An analysis of possible effects of developmental pricing: A simulation study of the polypropylene industry in South Africa
(Stellenbosch : Stellenbosch University, 2017-03) Gova, Webster; Bam, Wouter; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Beneficiation of locally extracted minerals to produce fully processed, highvalue utility products is currently limited in South Africa. However, in the polypropylene value chain, locally mined coal is fully beneficiated to produce petroleum equivalent fuels and chemicals. The polypropylene value chain contributes fully processed, high utility products for use in various sectors of the economy, including the plastics industry. The Departments of Mineral Resources (DMR), Trade and Industry (DTI), have respectively identified the petroleum and plastics industries as some of the priority industries for intervention in the beneficiation strategy. The polypropylene upstream industry is currently dominated by China, with capacity representing 19% of global supply, while South Africa only accounts for 1%. However, the current capacity in South Africa represents 53% of polypropylene supply on the African continent. The current study investigated possible effects of a cost-plus developmental pricing policy as a beneficiation strategy in the polypropylene upstream industry. The study focussed on evaluating possible effects of cost- plus pricing on the future attractiveness for investment in capital projects to expand polypropylene production capacity in South Africa. The study demonstrated a systematic approach combining simulation and decision models to account for unavailability of full information and high uncertainties in estimates for quantitative appraisals during industrial policy analysis. The study combined value chain analysis using the global value chain (GVC) framework and Monte Carlo (MC) stochastic simulation methodologies to evaluate the possible impact of developmental pricing. The GVC framework was used to analyse the polypropylene upstream value chain with respect to governance and input/output structure. The MC simulation was applied to a discounted cash- flow (DCF) model on net present value (NPV). The approach presented in this research accounts for limited or asymmetric information, high competition and uncertainty in the local polypropylene industry. In addition, this systematic approach to industrial policy analysis appears to be useful in achieving beneficiation strategy objectives in highly competitive, highly regulated globalised industries. This can enable policy-makers to identify measurable impacts in formulating policies for beneficiation strategies. In South Africa, beneficiation strategies for the polypropylene and plastics industry can focus on identifying other raw materials to compete with existing value chains in order to stimulate more upstream competition. This can allow local production of more internationally competitive upstream products and offer better prices to the downstream industries.
Comparing sustainable development potential of metal beneficiation industries by using publicly available sustainability information
(Stellenbosch : Stellenbosch University, 2016-12) Du Plessis, Johan Andre; Bam, Wouter; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: South Africa has the largest mineral endowment in the world, yet the value it derives from these vast resources remains below potential. This is a direct result of the lack of local beneficiation of these resources (i.e. local valueaddition to resources) . This has led the South African government, and governments of other countries facing similar challenges, to pursue increased local beneficiation of its resources. As a result, policy-makers in South Africa and abroad are now faced with the expensive and time consuming process of selecting viable industries that can be developed to increase local beneficiation. The advent of mainstream corporate sustainability reporting and the subsequent flood of sustainability information into the public domain has now produced an opportunity to make use of this information to effectively select potential industries for which detailed feasibility studies can be done. More specifically, this project aimed to investigate the possibility of developing a framework that makes use of publicly available sustainability information to rapidly, and at a high level, compare potential metal beneficiation industries. This allows prioritisation of feasibility studies on industries showing the most local development potential. The framework is composed of 18 equally-weighted indicators; 6 for each of the three dimensions of sustainable development. The indicators are constructed from 30 sub-indicators selected from the GRI G4 sustainability reporting guidelines and 10 sub-indicators developed specifically for the framework. The indicators are aggregated using non-compensatory multi-criteria aggregation to produce a single index value for each sustainability dimension, thus allowing comparison of industries in terms of only three index values. Table 3.4 presents a summary of the indicators used in the framework. In order to test the utility and shortcomings of the framework, platinum beneficiation was used as case study. More specifically, the local production of catalytic converters and platinum jewellery was compared. The catalytic converter industry was found to be superior in the economic and social dimensions with 92 per cent and 81 per cent confidence, respectively. The platinum jewellery industry was found superior in the environmental dimension with 71 per cent confidence. The confidence intervals were calculated from 10 000 iterations in a Monte Carlo simulation conducted to quantify the impact of input uncertainty on the outputs generated by the framework. The superiority of the catalytic converter industry in two of the three dimensions supports the current development policy priorities in South Africa with much focus being placed on further development of the automotive industry. Based on the results generated by applying the framework to the platinum industry, it was concluded that the framework successfully facilitates the comparison of potential industries. The ease-of-use of the framework, rapid generation of results and hierarchical indicator structure (which allows efficient analysis of the results) were identified as some of the strengths of the framework. Some weaknesses identified included the possibility of subjectivity and embedded effects in input data that may distort the results generated and the dependence of the framework on publicly available information. It is recommended that further testing of the framework by application to more case study industries be done to ensure the framework indeed captures all necessary effects and adequately compares the industries. Further, broadening the framework to more explicitly include important and unique local factors is cited as a possible improvement that can be investigated in further studies. Finally, based on the successful comparison in this study, it is recommended that the framework be applied to more potential industries as to identify new opportunities and promote their development in South Africa.
Designing a conceptual model for the management of in-Kind donations in NGOs
(Stellenbosch : Stellenbosch University, 2021-12) Goff, Robyn; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Within recent years, the number of in-kind donations moving from donors to non-governmental organisations (NGOs) has increased, with corporate dona- tions accounting for the majority of these donations. Estimates have shown that in-kind donations make up 60%-70% of the total donations given by corpo- rations to NGOs. Many NGOs are primarily resourced and sustained through in-kind donations; therefore, these donations are valuable and needed. How- ever, in-kind donations are not nearly as versatile as cash and often result in specific operational challenges. One of the most common challenges NGOs encounter is the misalignment of the donation to the actual need of the NGO. NGOs thus face the decisions of either redistributing the donation, selling the donation for cash-in-hand, storing the donation or disposing of the donation. With the recent increase in attention on corporations’ need to improve their sustainability practices, many are using NGOs as alternative channels to distribute their surplus or unsaleable products instead of disposing of these products in landfills. These products tend to be either highly specialised prod- ucts that may not be appropriate for the needs of most NGOs or be donated in large quantities that may be more than sufficient for the needs of one NGO, resulting in the operational challenges previously stated. Many NGOs focus on enhancing the well-being of communities by provid- ing much-needed goods and services to the most vulnerable and thus directly impacting society’s social and economic development. By providing NGOs with the appropriate resources and donations needed to fulfil their missions, their impact on society can significantly increase. This study aims to contribute to the effective management of in-kind dona- tions by developing a conceptual model that focuses on increasing the visibility of the needs of an NGO to effectively solicit appropriate donations and, in turn, reduce the amount of waste in the donation process. A design science research process (DSRP) methodology was utilised in the study in order to develop a conceptual solution artefact that aligns with the research aim and objectives. The study consists of a detailed literature review that provided the context of the research problem. The literature review also identified challenges of the current process, relevant stakeholders in the process and existing artefacts that address the management of in-kind donations. The solution capabilities and objectives of the desired solution artefact were thus defined from the theoretical outputs of the literature review. A detailed analysis of 27 existing artefacts compared to the identified so- lution capabilities and objectives were conducted. Several limitations in the artefacts ability to address the solution objectives were identified. This analy- sis and identification of limitations provided the foundation for the design and development of the conceptual solution artefact. The research’s final phase employed a combination of verification and val- idation processes involving subject matter experts and stakeholders of the donation management process. The conceptual solution artefact was refined based on the input from the evaluation and is presented as an architecture model. The evaluation of the conceptual solution artefact deemed the model valuable and appropriate in solving the research problem.
Developing a database of merger and acquisition transactions : towards insights into industry trends and drivers
(Stellenbosch : Stellenbosch University, 2020-03) Heathcote, Terry Wayne; Bam, Wouter; Grobbelaar, Sara; Stellenbosch University. Faculty of Industrial Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Mergers and Acquisitions (M&A) have experienced great fluctuations in activity throughout history, with the characteristics of deal trends changing constantly throughout time. Studies in the field focus greatly on the determinants of waves in merger activity, commonly testing proposed theories by empirical means. Few studies find a consensus on appropriate proxy use in determinant analyses and as a result, often find discord with prior findings in literature. Through a systematic quantitative literature review, aimed at identifying the traditionally studied M&A activity characteristics and drivers, lists of synthesized activity and determinant variables were established. Using these outputs as information requirements for envisioned analyses, a data warehouse was developed and populated with a sample of data gathered for domestic deals in the USA during the years 1998 to 2018, between listed acquirers and targets. Using the Database Life Cycle and Data Warehouse Architecture, an information storage facility, capable of driving M&A activity and determinant analysis, was developed. M&A trends were analyzed for the sample in terms of identified activity characteristics. Recent years show a steep increase in average deal value, giving way to an era of mega-mergers. The total value of the cash and stock as well as cash only payments has increased significantly from the stock only payment dominance in the late 1990’s and early 2000’s. In an evaluation of traditionally studied M&A determinants, a holistic approach is taken in considering a variety of proxies, while acknowledging established theoretical classifications. By applying methods in feature selection, a refined set of relevant determinant proxies were identified and subsequently analyzed using multiple linear regressions. The resulting models for annual deal volume and value proved to support both the Neoclassical and Macroeconomic theories of M&A, with little evidence supporting the Behavioral theory. The approach to determinant analysis proved to be effective in improving predictive ability for models, while initially considering a broad variety of determinant proxies recognized in literature. However, additional proxies for Firm-Level theories could be introduced in the future, using the same or a similar approach to analyses. This could provide a more comprehensive evaluation of determinants in the field.
Developing a framework to assess day hospital maturity
(Stellenbosch : Stellenbosch University, 2017-03) Henning, Lizan; Bam, Wouter; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: The development and distribution of day hospitals in South Africa is still a relatively new concept for which there are no fully-established or developed operational guidelines. In the highly competitive private hospital industry, healthcare leaders and managers require structured guidance on how to operate and manage day hospitals appropriately, in order to facilitate the realisation of organisational goals and the development of enterprise maturity and performance. To address this need, this research study reviews best practices of the day hospital industry in order to propose a maturity model framework for day hospitals within the private healthcare sector of South Africa. The purpose of this maturity model is to provide a framework that enables day hospitals to assess and potentially advance their capability maturity in pursuit of increased efficiency, performance and profitability. An in-depth literature study of the interconnected fields of the problem forms the foundation of the framework. The three key fields studied include: the context of the day hospital industry; the fundamentals of maturity models; and best practices within the day hospital industry. The framework is developed through integrating these three domains which are relevant to the stated research problem. The resulting framework consists of four maturity stages portraying progressive maturity. The framework further consists out of five main focus areas constituting twenty sub-dimensions. These sub-dimensions are obtained from investigating all the various best practices of the day hospital industry. The framework was refined and validated based on interviews and questionnaires completed by four subject matter experts within the day hospital industry. The validation process demonstrated that the framework addresses the identified problem by providing a maturity model that enable day hospitals to assess their capability maturity in pursuit of increased efficiency, performance and profitability. Thus, this research study makes a contribution to the day hospital industry by providing a framework that enables day hospital managers to assess the maturity of their facility, and identify weaknesses that prohibits day hospital efficiency.
Developing a framework to assess healthcare facilities’ essential medicine management practices
(Stellenbosch : Stellenbosch University, 2019-12) Muatunga, Ndahambelela Ndapewa Ndeshiahfela; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Access to essential medicines is a fundamental human right; yet, millions of people die each year from diseases that could be treated with modern medicines. A lack of access to essential medicines remains the most serious public healthcare problem globally, with approximately 30% of the world's population not having access to essential medicines. This figure rises to over 50% in the poorest parts of Africa and Asia. Frequent stock-outs and shortages of medicines continue to deny quality healthcare treatment to lowincome populations. Medicine management seeks to find an optimal way to ensure access to essential medicines given various constraints. The absence of adequate assessment tools and frameworks that measure medicine management performance at a facility level, makes it difficult for decision-makers to make informed decisions to improve access to essential medicines. To address this need, a maturity model was developed to assess essential medicine management performance in public healthcare facilities. A maturity model is a framework that is used to describe the evolution of a system over time through the assessment of its processes. Maturity models provide a wellstructured approach to achieving tangible transformation and continuous improvement. The developed model intends to identify opportunities for improvement that extend access to essential medicines. The maturity model in this study was developed using a three-phase approach that integrated essential medicine management dimensions into maturity model architecture. The model is based on extensive literature reviews on essential medicines, medicine management, and maturity models. The review of literature on essential medicine at facility level helped to define the dimensions of the maturity model. Medicine management literature was also reviewed to identify the key practices that ensure access to essential medicine in healthcare facilities. Finally, maturity model literature was reviewed to identify the appropriate maturity model architecture which formed the basis of the maturity model developed. The maturity model was re ned and validated by subject matter experts to ensure that the theoretical basis of the model was sound. The validation process found that the developed maturity model adequately measures the performance of essential medicine management at a facility level. The maturity model developed in this research study provides an alternative assessment method to traditional quantitative performance measurement methods in the healthcare sector and helps healthcare facilities focus on the various practices that drive essential medicine management performance to increase access to essential medicine.
Developing stage theory: an industrial management approach to validate an organizational life cycle developing theory
(Stellenbosch : Stellenbosch University, 2016-03) Viljoen, Anika; Schutte, C. S. L.; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Process Engineering.
ENGLISH ABSTRACT: Kenneth Boulding (1950) developed the first concept of an organizational life cycle model in 1950 (Ionescu and Negrusa, 2007). Ever since, discussions of this concept have developed within many disciplines, including management, education, sociology, psychology and marketing. Some organizational experts are of opinion that no organization progresses through a discrete set of development growth stages, while others have modernized Boulding’s (1950) original life cycle model to accommodate the growth changes seen in organizations today (Penrose, 1959). Marc van der Erve (2013), an organizational philosopher and expert, developed a stage theory which focuses on the growth of natural organizations (Van der Erve, 2013). Although his developed theory is based upon natural sciences (thermodynamics) and the social sciences (particularly sociology), he states that it can be applied to business organizations as well. He is of the opinion that his developed stage theory can predict the future success of organizations. The study is set out to investigate these claims and to determine whether Van der Erve’s (2013) theory can be accepted and is feasible in the industry today. The main discussion however will focus on the investigation of Van der Erve’s development stage theory and the comparison thereof with already existing life cycle models. Together with the main project statement, the study aims to answer two objectives, namely: - Firstly: The investigation of Van der Erve’s (2013) development stage theory and the comparison thereof with already existing life cycle models. - Secondly: Determining whether an organization is successful if its organizational life stage is aligned with the specific leadership role, as presented by Van der Erve (2013). Moreover, in order to answer the above mentioned objectives, the study attempts to formulize a proposed hypothesis on which various organizations will be tested on by evaluating them against certain variables. The hypothesis specifically examines the relationship between organizational life cycle stages, leadership roles, competitive strategy in the market and financial performance of an organization The motivation for this study derives from the research done by Van der Erve (2013) stating that the successful performance, as measured by its revenue growth, of any organization can be predicted if the right leadership role is in line with the respective organizational growth stage of the organization. The focus of this research is to offer a variety of ideas, measures, and empirical facts on how organizations grow and develop throughout their life cycle, and if, as stated in the newly developing stage theory, can predict the success of any organization. The study concludes by stating that the formulating hypothesis can neither be accepted nor rejected when analysing and investigating the four chosen organizations operating in the technology industry. Two organizations, in the service-based technology industry, showed significant correlation between the two factors, developing stage and leadership role, which resulted in a successful performance for the organizations. While the two organizations in the product-based technology industry showed similarities of a product life cycle. Together with the proven formulated hypothesis, interesting results and conclusions were seen in the outcomes of all four organizations under investigation. It can thus be said that the development theory can be applicable to some organizations in the technology theory, but research must be expanded to determine whether it is valid in other industries as well.
Development of a decision support system for assessing alternative agriculture land uses: A case study of the Stellenbosch wine region
(Stellenbosch : Stellenbosch University, 2018-03) De Villiers, Jeanne-Mari; Bam, Wouter; Van Eeden, Joubert; Schutte, C. S. L.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: The South African wine industry is one of the oldest wine industries in the world apart from Europe and the Mediterranean. The wine industry, according to SAWIS (2015), is one of the biggest agriculture exporters and was responsible for 1.2% of the national GDP in 2013. Of the total contribution of R36.1 billion to the GDP, almost R20 billion (53%) was created in the Western Cape. By volume, South Africa is the eighth-largest national wine producer in the world (SAWIS, 2015a). According to SAWIS (2015) increased production costs and an increased number of competitors have placed mounting pressure on the profitability margins of the South African wine industry. The current drought coupled with the increasing pressure on profitability margins, requires wine estates to re-evaluate their business strategies to ensure economic sustainability. Therefore, many wine estates are investigating diversification opportunities. It is however a complex task to undertake and many wine farmers do not have the adequate experience outside of the wine industry. Thus, there exists an opportunity to develop a decision support system (DSS) that will aid farmers with the decision-making process regarding alternative selection. This study focussed on providing agricultural decision-makers, who are considering to adopt an agricultural diversification strategy, with a set of considerations to evaluate land use alternatives in a particular area by making use of a decision support system (DSS). Agriculture diversification refers to farms that are participating in diversification of agricultural activities where income is generated from more than one agricultural enterprise. This study specifically focussed on crop alternatives (thus excluding other opportunities such as livestock). A set of considerations that agricultural decision makers can use to guide them during the decision-making process had to be identified. It was crucial that it should be a holistic set that includes aspects regarding the whole farming operation and not just one aspect such as climate when evaluating the suitability of crops for a specific region. The identified considerations are not bound to a specific area and are therefore applicable to all regions. The identified considerations together with design requirements that had to be developed were incorporated into the design of the DSS model. Both the set of identified considerations and the design requirements had to be in accordance with literature and inputs from experts to ensure that the best possible DSS could be designed. The developed DSS uses user inputs to compare different land use alternative types with one another per consideration. The Stellenbosch area was used as a case study scenario for the application of the developed DSS. An internal validation was performed by creating different scenarios to test the logical workings and coding of the developed DSS. Subject matter experts were consulted thereafter to validate the developed DSS and to evaluate and thus incorporate reliability and credibility into the DSS.
Effective knowledge dissemination from universities: an evaluation of technology transfer offices and the environments in which they operate
(Stellenbosch : Stellenbosch University, 2019-12) Jansen van Rensburg, Merten Secundus; Bam, Wouter; Schutte, C. S. L.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Measures of the research that is generated by universities are commonly used to determine the subsidies that governments pay to universities. Universities can also develop research into technologies that can be sold to industry, in order to supplement the income from government subsidies and student fees. In some cases, researchers at universities have to make trade-off decisions regarding whether to focus on publishing the research (to possibly increase government subsidies) or to focus on research that can be sold to industry. Both of these foci may be legitimate ways of disseminating the research done at universities. The purpose of this study is to develop a framework that supports the evaluation of the knowledge dissemination determinants at universities, with a focus on university TTOs and the environments in which they operate. The framework identifies the concepts relevant to the operation of TTOs that affect knowledge dissemination. The concepts can be grouped into the themes of: (1) Goals of the University, (2) Intellectual Capital, (3) IPR, (4) Funding, (5) Incentives, (6) Info-Culture, (7) Info-Structure, (8) Infrastructure and finally (9) Dissemination. Two primary case studies, Stellenbosch University and KU Leuven, are conducted using the framework. Secondary case studies are selected to compare the primary case studies to. These secondary case studies include: (1) universities that are located in similar environments, and (2) universities that are similarly ranked, but operate in different environments. The aim is to identify factors and behaviours that increase the effectiveness of knowledge dissemination from universities in these different environments. This study thus makes two contributions. Firstly, it presents a framework that can be used to evaluate knowledge dissemination determinants from universities. Secondly, it uses this framework to identify various patterns of these determinants and the observed performance related to these determinants in various cases. This adds to the growing literature exploring the determinants of the knowledge dissemination related performance of university.
Evaluating the developmental potential of the automotive industry in South Africa: A product space and location framework approach
(Stellenbosch : Stellenbosch University, 2021-03) Laing, Mare; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: There has been and still is much controversy regarding the effectiveness of industrial policies to develop industries, but in the case of the South African automotive industry, the industry is regarded as being defined by industrial policies. Since the implementation of the first industrial policy program in 1995, the Motor Industry Development Programme (MIDP), the automotive industry has grown to become one of the most significant contributors to South Africa's GDP. The MIDP was followed by the Automotive Production and Development Plan (APDP) in 2013 and the revised APDP in 2021, for which the aim has been to develop the local automotive value chain. The South African Automotive Masterplan (SAAM) was developed as the automotive vision for 2035 but can only be realised if sufficient industrial policies supporting the plan's objectives are put in place. Although the South African automotive industry is regarded as an example where industrial policy programs were mostly successful, industrial policymaking is still regarded as a "learn by doing" or a "doomed to choose" process. Therefore, it can be assumed that there is still a need for more decision support tools. Thus, this study aimed to evaluate how the Input-Output Product Space (IO-PS) framework and Location Determinants Evaluation Framework (LDEF) could support policy decision making by applying the frameworks to the South African automotive industry and what the strengths and the weaknesses of these frameworks are. Firstly, the IO-PS framework was applied to the South African automotive value chain, and automotive body parts were identified as a possible development area. Secondly, the LDEF was used to determine the location success factors needed to make South Africa a viable location for manufacturing automotive body parts. The output from the frameworks was evaluated, and it was concluded that the IO-PS supports decision- making in selecting opportunities with the highest probability of structural growth. However, it is not successful in identifying products that cannot be exported due to physical attributes. The LDEF was deemed to successfully guide the consideration of location-, market- and location interaction success factors, although the process of applying the LDEF is cumbersome and time-consuming. Other strengths and shortcomings were identified, and areas for future work were suggested.
The evaluation of innovation for inclusive development projects
(Stellenbosch : Stellenbosch University, 2017-03) Botha, Louisa; Grobbelaar, Sara; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Innovation for inclusive development aims to not only produce products and services for base of the pyramid (BoP) markets, but also to improve innovative capacity and empower those in marginalised communities. Although a wide range of actors aim to support innovation for inclusive development, they lack proper methods to assess the impact that these projects have. This study sets out to develop a framework and tool to guide the evaluation of University-driven Technology-based Innovation for Inclusive Development (UTIID) projects in order to evaluate performance, identify weaknesses and classify project outcomes. A systematic literature review is conducted to identify an evaluation approach from the extant literature that may best be able to evaluate UTIID projects. Based on the review, a process-level, innovation system (IS) approach, namely the component-function approach is identified as the most appropriate approach for the evaluation of UTIID projects. This approach is focused on the components within a system and the changes that occur through the interaction of the components in the system functions. An empirical study is conducted on 16 UTIID projects from four different universities in the Western Cape region of South Africa. These case studies are used for several purposes (1) to investigate the current state of monitoring and evaluation in UTIID projects; (2) to map the inputs, outputs and outcomes of these projects in order to construct a typology; and (3) to validate the use of the component-function approach as an UTIID project evaluation approach. The empirical findings reveal that there are no incentives for UTIID projects to perform outcome evaluations. Several inputs, outputs and outcomes were identified for the studied UTIID projects and these were synthesised into a typology. The application of the component-function analytical framework to the 16 UTIID projects indicated that the component-function analytical framework was an effective method to evaluate the system performance, identify system weaknesses and to propose tools to address the systemic weaknesses within UTIID projects. Lastly, the developed typologies and component-function analytical framework are used to assemble an UTIID project evaluation tool that enables the evaluation of UTIID projects at a systems level and classify project outcomes.
Exploring innovation for inclusive development dynamics from an innovation systems perspective
(Stellenbosch : Stellenbosch University, 2018-03) Van der Merwe, Edward; Grobbelaar, Sara; Bam, Wouter; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Food security is still a pervasive problem, nowhere more so than in sub-Saharan Africa (SSA). Industrial crop (IC) expansion has been at the centre of a debate as to whether ICs are assisting or hindering the quest for a more food secure future. These conflicting views, outlined in a review of pertinent literature, highlight the need for further study into the topic. A review of the literature revealed that food security in the context of SSA is a complex issue and a function of integrated social, economic, and physical systems. To understand this complex system better, it is proposed that a computer-based model is constructed to simulate the dynamics of the system. Models that simulate food security or food security related issues were therefore reviewed and the absence of a simulation that modelled food security from the household level perspective was uncovered. Various modelling attributes and techniques were subsequently reviewed, and system dynamics was chosen as the most appropriate modelling methodology to tackle the research problem under consideration in this study. The software package Vensim was selected as the modelling medium. For the development of the model, Malawi was identified as a suitable country to serve as the case study for this research inquiry. A conceptual model was created explaining the system feedbacks observed in Malawi through causal loop diagrams. The formal simulation was then developed from the conceptual model. It was found that the cultivation of ICs contribute to food security in Malawi. This is largely the result of increased credit options available to smallholder farmers who engage in IC cultivation. Smallholders who cultivate multiple crops are generally more food secure than those who monocrop in cases where limited land is available. This is because mixed-crop farmers are less vulnerable to climate variability. In some cases, mixed cropping leads to staggered income sources and expenses, this reduces the amount of time between harvests and leads to briefer episodes of food shortages overall. Cassava, a plant resilient to extreme weather conditions, is an important food crop in combatting food insecurity. Tobacco, a high-value crop which is well suited to climatic conditions in much of Malawi, remains a lucrative option for smallholder farmers. Contractual agreements between leaf companies, sugar millers, and smallholder farmers could, however, be improved. It is recommended that a regional-level model is developed to capture the effects of higher level system dynamics on smallholder farmers to be used in conjunction with this model. Keywords: food security; industrial crops; computer modelling; Malawi; system dynamics.
A feasibility study for titanium recycling in South Africa
(Stellenbosch : Stellenbosch University, 2016-12) Durr, Johan Frederik Wilhelm; Oosthuizen, Gert Adriaan; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: In this study, the possibility of titanium recycling in South Africa is explored. Inspired by recent beneficiation processes for the production of titanium from South Africa's vast mineral resources, this study identified the opportunity to create sustainable value from the inevitable influx of scrap, once these beneficiation strategies have been implemented. The objectives were to research all methods capable of recycling titanium, map their process chains, and model them financially. Furthermore, a feasibility framework was to be created, which serves the purpose of showing when each recycling method becomes financially feasible. Finally, a business case was to be created after choosing the best recycling alternative in South Africa at the time of the study. A background study was done at Hansens Engineering in Port Elizabeth, to gain insight into a state-of-the-art waste-to-resource process through their in-house aluminium recycling operations. Eight methods of recycling titanium are identified in the literature review, namely washing and briquetting swarf, precision casting, thermal degreasing, ferrotitanium production, vacuum-arc remelting (VAR), electron beam cold hearth melting (EB CHM), plasma arc cold hearth melting (PA CHM) and mill product production. Each process is modelled financially, by use of a factorial method, which utilises equipment, operating labour, waste treatment, utilities and raw material costs as input variables to estimate total fixed capital investment and total manufacturing costs. A ten-year NPV analysis on each process is done, which is used to conduct the feasibility study, which consists of break-even analysis, scenario analysis, and the creation of the feasibility framework. The break-even analysis determines the yearly volume of scrap required to make each recycling method financially feasible. By use of this, the feasibility framework is created. The break-even volumes are contextualised by use of benchmark components. This is used to represent the break-even points of each recycling method in terms of an amount of components, as opposed to a volume of titanium scrap. The financial feasibility models are also used to perform scenario analysis using pessimistic and optimistic hypothetical swarf availabilities, based on South African titanium trade statistics. Based on the collective feasibility study results, it is found that only two of the eight recycling processes are financially feasible at present, namely washing and briquetting swarf, and precision casting. The best option for recycling titanium at present is identified as precision casting, which shows a positive NPV of R650.55 million and R81.96 million in the optimistic and pessimistic hypothetical scrap availabilities, respectively. Uncertainty analysis is performed on this process through the use of Monte-Carlo simulation. Input variables are varied over probable ranges, or by fitting distributions on historical data, to predict the probability of having a positive NPV after the analysis period. The results showed that when recycling titanium through precision casting, one can be almost 99% certain of having a positive NPV after ten years, when implementing either a 150% fixed profit margin or a selling price of R1000 per casting. By this, a business case for titanium recycling in South Africa is created.
Identifying an optimum path to developing the South African automotive industry
(Stellenbosch : Stellenbosch University, 2022-12) Lubbe, Frederik Karl; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: The automotive industry is a key contributor to the South African economy and has had strong government support through multiple incentive programmes since the introduction of the Motor Industry Development Plan (MIDP) in 1995. Despite this support, the South African automotive industry remains a second-tier contender in global value chains and is not yet capable of competing with the established automotive economies of the world. The introduction of the South African Automotive Masterplan to 2035 (SAAM2035) aims to transform the industry into being globally competitive. South Africa exports most of its locally produced vehicles and many of its key export markets have signalled intention to introduce internal combustion engine (ICE) vehicle bans as they move to a greener future. This research project aimed to analyse the South African automotive value chain to identify the products that have potential to be developed to a globally competitive level. Once a component was selected, the aim was to identify and evaluate the factors which impact location decisions for the activity. The research made use of both quantitative and qualitative frameworks. The Input-output Product Space (IO-PS) and the Location Determinants Evaluation Framework (LDEF) were applied to the research problem. The output of the IO-PS is a set of metrics which the researcher used to decide on a promising component to focus on. The LDEF used the selected product as input and utilises a qualitative approach involving a product-specific literature review as well as consultations and interviews with industry experts to identify key factors impacting location decisions for the product. The application of the IO-PS framework, in consideration with the SAAM2035 objectives, identified lithium-ion battery (LIB) packs as a promising component to develop. The LDEF analysed the location determinants relevant to LIB pack manufacturing and the state of these determinants in South Africa in order to rank the criticality of the factors. Ports and infrastructure management, manufacturer incentives and electricity supply were identified as critical constraining factors. The findings highlight the critical factors which need to be addressed in order to ensure that South Africa will be able to competitively manufacture LIB packs.
Identifying barriers to growth in mineral value chains: an analytical framework approach
(Stellenbosch : Stellenbosch University, 2017-03) Van Zyl, Hermanus Jacobus; Bam, Wouter; Steenkamp, Joalet Dalene; Schutte, Cornelius Stephanus Lodewyk ; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: South Africa’s comparative advantage in mineral processing brought by its immense wealth in mineral resources, has in recent years failed to fully translate to a national competitive advantage due to particular constraints. This hinders the local industry from capturing a more prominent share of the further-processed mineral market and transitioning the country to a stronger economic position through enabling South Africa to derive greater value from its mineral resources. The mineral processing industry often finds itself going through various changes, with new barriers to growth constantly presenting themselves. Adapting to the ever-changing mineral production environment is a common struggle for many stakeholders involved in this complex field. Furthermore, each production phase has a very specific set of barriers and opportunities which are inherent to their environment and context within the chain. The key barriers to economic growth and business development which restrain participants within the value chain, has not yet been sufficiently identified nor has their extent and impact on the industry properly been established. It is discovered through literature, that no consistent system or guidelines exist which enables researchers or policymakers to systematically identify the barriers that are hindering the various stages of the value chain’s expansion and growth. It is thus unclear how prominent certain problems are in specific mineral industries. A comprehensive framework is thus required that can be applied to any mineral value chain (MVC) to identify the custom set of barriers faced in the different sectors comprising the chain and provide a better understanding of these barriers. The aim of this thesis was thus to develop such a framework which would allow its user to identify and analyse current barriers to growth in each of the stages of MVCs. The identified barriers are sector specific and thus cater directly to the role players actively involved in the chain. This allows for specialized barrier analysis for each firm in an MVC that is distinct and relates specifically to them. Three primary framework design requirements were identified to achieve this aim, namely: identify and describe the MVC environment, identify barriers in the MVC, and prioritize the barriers. Six different approaches for describing and investigating value chains were reviewed in order to identify the current research gap and limitations of similar frameworks. These issues were addressed through the inclusion of 20 tools to fulfil each of the framework requirements. The tools were partitioned into six framework phases, with each phase focusing on a specific element of analysis. In order to convey the utility of the framework, it was applied to a case study, namely the South African manganese industry. Four different production sectors were identified in the chain within the scope of the study, namely the mining, alloy manufacturing, EMD and EMM production sectors. Through an iterative process of interviews and surveys, 31 barriers to growth were identified across these four sectors, with Oversaturated market being the most significant impediment, followed closely by the rising costs of electricity, labour and transport. Through expert analysis based on the results generated from the case study, it was concluded that the framework successfully facilitates the identification of barriers within a MVC. The validators concurred that the proposed framework addresses a specific need within the industry and is a useful tool for its stakeholders. The holistic and systematic approach to a multi-faceted and complex subject was identified as the framework’s primary strength. All the shortcomings that were identified, were reviewed and addressed by reworking the framework where applicable.
Investigating the integration of public and private pharmaceutical supply chains
(Stellenbosch : Stellenbosch University, 2018-12) Botes, Jessica; Bam, Wouter; De Kock, Imke; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Health supply chains in low and medium-income countries are constantly strained due to a lack of resources and infrastructure, poor management and supply-side shortages. This often results in health care facilities experiencing stockouts, leaving patients without access to certain medicines. It is therefore important to recognise that the efficient functioning of pharmaceutical supply chains is a fundamental priority, as the failure to deliver certain important medicines can result in numerous lives being lost. These problems have led to the implementation of various approaches by a number of healthcare organisations to address and alleviate the strain experienced by pharmaceutical supply chains. Although these approaches have had a mostly positive impact, the overall results have been disappointing. Therefore, new and innovative approaches are required to improve the supply of medicines. In order to address the need for better functioning pharmaceutical supply chains and improved medicine supply, this study investigates the potential for the integration of public and private pharmaceutical supply chains. Specifi- cally, the study proposes a framework to assist developing countries to identify opportunities for public-private integration in pharmaceutical supply chains. The purpose of the framework is to: (i) determine a pharmaceutical supply chain's current integration level; (ii) identify opportunities for integration; (iii) determine the risks and benefits of the opportunities; and (iv) prioritise the identified opportunities.
Investigating the mechanisms that influence healthcare outcomes in sub-Saharan African countries
(Stellenbosch : Stellenbosch University, 2019-04) Conway, Jenna-Dawn; Bam, Wouter; De Kock, Imke; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Sub-Saharan Africa experiences some of the poorest health care outcomes in the world. With the combination of a high burden of disease and a severe lack of resources, the health systems in SSA face immense pressure to perform under difficult circumstances. The need to drive efficiency and gain an in depth understanding of health systems in SSA is thus clear. In order to make improvements to health systems, an understanding of the way in which health systems function and the components which they are made up of and influenced by is required. The complexity of health systems is not only due to the number of components which make up a health system but due to the interactions with factors which extend beyond the health system. The significant impact of contextual impacts on the health care outcomes of an area must be recognised along with the way in which these interact and influence a health system. The ability to therefore map the way in which mechanisms influence health care outcomes over an area as large as SSA is found to be an inexhaustible task, therefore an approach is developed in order to facilitate the identification of health care outcome bottlenecks in a specific area. In order to gain an in depth understanding of factors that make up a health system, an analysis of existing conceptual frameworks of health systems is carried out. This analysis results in the emergence of nine over arching areas to consider when analysing a health system; along with five performance measure categories. A systematic literature review is carried out in order to populate the understanding of health systems in relation to the components identified in terms of a SSA setting. The review considers an extensive array of literature in order to gain a broad understanding of the factors attributed to influencing health care outcomes in SSA. From the analysis of the conceptual frameworks along with the results from the systematic literature review, a series of challenges and complexities within health systems are highlighted. In order to address these a number of tools are investigated to develop a method by which to identify bottlenecks found in health systems. The recognition of the complexity of health systems and the emphasis placed on contextual factors is reiterated as the recognition of over arching health system factors such as lack of resources is found to be well researched and recorded. Thus the contribution of over arching health system factors is less valuable than the ability to recognise specific factors. In order to facilitate health care outcome improvements and identify mechanisms which influence these outcomes, an approach to identify bottlenecks in district health systems emerges. The approach consists of the following stages: (i) Select a physical area or location; (ii) Select a health care outcome; (iii) Identify the population at risk; (iv) Interpret available data to identify bottlenecks; (v) Discuss process of care identified as the bottleneck; (vi) Discuss factors relating to the bottleneck identified; and (vii) Identify stakeholders and roleplayers to be involved in planning and change management. The approach is seen to contribute to the initiation of interventions as it hopes to identify a point in the health system which needs improvement. Extensive literature on planning and implementing interventions exists, therefore this approach makes no effort to contribute hereto but is a decision making tool as to where effort in health systems can be directed toward. An illustrative case study is carried out in order to demonstrate the way in which the approach can be populated and to facilitate the study validation. Subject matter experts are consulted in order to improve upon and approve the results of the study and the emergent approach. This study makes a contribution by illustrating the complexity of health systems and suggests an approach which may be followed in order to facilitate the identification of mechanisms affecting health care outcomes in specific settings.
A management tool for the due diligence stage of M&A transactions
(Stellenbosch : Stellenbosch University, 2020-03) Bhagwan, Vivek; Grobbelaar, Sara; Bam, Wouter; Stellenbosch University. Faculty of Industrial Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Organisations are under constant pressure to sustain themselves and grow in an environment that is characterised by increasing competition, a changing socio-economic landscape, and shrinking geographical boundaries. In order to remain a player or an industry leader, it is imperitave for companies to achieve real growth. Mergers and Acquisitions (M&A) is an external mechanism for organisations to achieve real growth. There are different stages in a typical M&A transaction. In this regard, the due diligence stage of a M&A transaction is a critical intitial stage to evaluatinging whether or not to proceed with a deal. Further, it provides essential information that is used in setting negotiating parameters, determining bid prices and providing a basis for initial integration recommendations. A higher probability of success can be secured for a deal in circumstances where the due diligence stage of a M&A transaction is managed effectively. This research aims to solve three key issues within a M&A deal by focussing on the due diligence stage. Firstly, this research aims to provide a systematic approach to managing the due diligence process. Secondly, this research aims to address the significant constraints, specifically cost and time, facing the due diligence process. Lastly, this research endeavours to address the risk factors associated with an M&A deal. By addressing these three issues in combination, this research aims to increase the probability of success for a deal by ensuring that the due diligence process is adequate and comprehensive. To address these aims, this research develops a conceptual framework and due diligence management tool for the due diligence stage of M&A transactions. The outcomes of two literature reviews are used to develop a conceptual framework. To assist in the development of the framework, a Grounded Theory Methodology is followed. In this regard Jabareen’s Conceptual Framework Analysis method is employed. The eight phases in this method are covered systematically throughout this research to develop the conceptual framework. The conceptual framework consists of four components. The two core components of the framework provide the user with guidelines and best practices for managing the due diligence process and conducting the due diligence review, whilst the two minor components of the framework illustrate how the due diligence stage of a M&A transaction should support the overall deal, both before and after the deal is completed. The conceptual framework is validated through the outcomes of semi-structured interviews which are conducted with professionals working within the M&A field. The feedback from these interviews are used to address any issues and implement practical industry procedures within the framework. The validated framework is used in conjunction with Gillman’s Integrated Due Diligence Approach to create the due diligence management tool. The tool enables users to design a due diligence process which is specific to the needs of that transaction whilst ensuring that all important aspects required to ensure the success of a transaction are considered. The tool is evaluated through the application of a case study involving a M&A transaction in the engineering industry in South Africa. The unique contribution of this study is in the form of the conceptual framework and the due diligence management tool. The systematic approach used in the development of the framework and the management tool allows for further development and expansion. It is recommended that future work focus on the implementation of the management tool, with a view to refining the effectiveness of the tool.
Project portfolio management best practice and implementation: A South African perspective
(Stellenbosch : Stellenbosch University, 2017-03) Oosthuizen, Chiara; Grobbelaar, Sara; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
ENGLISH ABSTRACT: Organizations are constantly under pressure to innovate and grow! by successfully executing their business strategies.The ever Pincreasing rate of change in technology has implications for product lifecycles, cost pressures, expectations of higher quality and a larger variety of products and services. These trends result in mounting pressures and a huge increase in complexity, as the drivers of innovation must be managed to achieve a competitive advantage. Project Portfolio Management (PPM) is a solution for managing the complexities of multi projects, and is theorized to assist an organization in achieving this competitive advantage through the implementation of business strategy, balancing portfolios, maximizing value, and ensuring resource adequacy.There is however, a lack of empirical evidence regarding the employment and success of PPM approaches in South Africa. This study presents and validates a framework, and it analyses the link between PPM implementation and!PPM!success in achieving!strategic objectives. The framework is constructed from a thorough literature review regarding the factors of good practice in PPM. This thesis identifies and investigates three areas of PPM!literature: (1) success criteria (2) success factors and (3) challenges in PPM. To address the lack of empirical research in this field for the South African context, the framework and identified areas of literature were!empirically tested. This was done using a mixed methodology approach consisting of two stages: (1) quantitative (surveys) and (2) qualitative (interviews). The! quantitative results from the surveys were based on 342 respondents, yielding a response rate of 17%. The data from the surveys were analysed and followed by 4 interviews to gain better insight and understanding into the results of the surveys. This study contributes to the investigation of the relationship between the best practices of project portfolio management as well as its success. This!study creates a solid platform upon which future studies in the field of project portfolio management can be built.

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