The South African Journal of Industrial Engineering

Note from the Editor

2024-05-31T12:54:39+00:00

“With the new day comes new strength and new thoughts.” - Eleanor Roosevelt

As we are awaiting the 29 May national election outcome results, it seems that South Africa has underscored the electorate's demand for comprehensive reforms and a commitment to addressing pressing socio-economic challenges, signalling a pivotal shift in the nation's political landscape.

Industrial engineering professionals are at the forefront of transforming South Africa’s economic landscape, particularly within the context of the country’s evolving political arena. As South Africa navigates a period of significant socio-political change, the role of Industrial engineering professionals has never been more critical. Industrial engineering professionals are uniquely positioned to drive efficiency, innovation, and sustainability across various sectors, addressing the urgent needs of a nation striving for inclusive growth and development.

One of the pivotal contributions of industrial engineering professionals is its ability to streamline operations and enhance productivity. This is essential in a country where industries must adapt to new regulations and global competitiveness. Industrial engineering professionals play a crucial role in optimising supply chains, reducing waste, and implementing cutting-edge technologies, thereby ensuring that South African businesses can compete on an international stage.

Moreover, Industrial engineering professionals could be more instrumental in advancing social equity. By designing systems that are not only efficient but also equitable, industrial engineering professionals contribute to creating job opportunities and improving working conditions. This aligns with South Africa’s requirement of reducing unemployment and fostering a more inclusive economy.

In the new political arena, where policy shifts and economic reforms are frequent, the adaptability and problem-solving skills of industrial engineering professionals are invaluable. They are the architects of a resilient economy, capable of weathering political changes while driving sustainable development.

As South Africa looks to the post-election future, the strategic role of Industrial engineering professionals will be a cornerstone in building a prosperous and equitable society. Let us tackle this challenge!

This edition has a total of 11 articles, with 7 from authors with South African connections and the balance from international authors.

If you have suggestions on how we could take this journal forward, please let me know.

Corne Schutte

Editor

IMPLEMENTATION OF HYBRID ARTIFICIAL NEURAL NETWORK AND MULTI-CRITERIA DECISION MODEL FOR THE RANKING OF CRITERIA THAT AFFECT PRODUCTIVITY – A CASE STUDY.

2024-02-26T08:25:01+00:00

This study delves into the often-overlooked factors influencing industrial productivity, focusing on labour and machine maintenance as key drivers. Extensive research was undertaken in a core shop producing automotive components to identify and assess these factors. Using multi-criteria decision models (MCDM) such as analytic hierarchy process (AHP), fuzzy analytic hierarchy process (FAHP), technique for order of preference by similarity to ideal solution (TOPSIS), viekriterijumsko kompromisno rangiranje (VIKOR) method, enterprise distributed application service (EDAS), and Entropy TOPSIS, the study ranked various productivity criteria. Artificial neural networks were then employed to validate these rankings. The research emphasised the significance of manufacturing equipment and raw materials, following the prioritisation of the workforce. Implementing material handling systems aimed at reducing errors and enhancing productivity proved pivotal. As a result of these strategies, non-value-added activities (NVA) decreased by 65.56%, process time improved by 61.03%, waiting time reduced significantly by 66.66%, manpower decreased by 35%, and costs decreased by 45%. These outcomes translated into a notable 23% increase in production levels in the core shop. The study underscores the efficacy of innovative work methods and standardised operating procedures in maximising productivity.

DEVELOPING A VALUE ENGINEERING MODEL FOR A STATE-OWNED ENTERPRISE

2024-04-09T10:56:31+00:00

In this study, a value engineering model for state-owned enterprises was developed using a mixed-method approach, focusing on a South African state-owned enterprise. Key findings highlighted that strong management support, a supportive value engineering culture, an effective value engineering methodology, and an efficient value engineering team are vital enablers for successful value engineering implementation in state-owned enterprises. The study further emphasised the importance of recognising differences between state-owned enterprises and private organisations, as they require tailored value engineering approaches. In addition, the research explored factors influencing value engineering success, identified state-owned enterprise specific barriers, and provided recommendations. These findings offer unique insights into state-owned enterprises, aiding decision-makers, managers, and practitioners. Applying the model and recommendations can enhance state-owned enterprise performance, efficiency, and value realisation.

IMPACT OF RURAL ROAD PROVISION ON EMPLOYMENT

2023-10-18T09:33:06+00:00

This article focuses on the impact of rural road provision on the macroeconomic objective of full employment. It deals with the extent to which roads act as direct generators of jobs during their construction and service periods, and the ways in which effective roads could indirectly stimulate employment opportunities quantitatively and, from a skills perspective, qualitatively. The economic impact analysis (ECIA) of road provision indicates the typical worker–hour requirements for the approximate estimation of employment needs. These estimates can be used whenever detailed estimates are not yet available. The estimates are provided for the construction and operation of (1) basic rural road segments, (2) bridges and viaducts, and (3) intersections, roundabouts (traffic circles), and interchanges. Where road projects contain other physical components, such as tunnels and toll plazas, the former three groups of employment rates could be used in combination with worker–hour estimates for the construction and maintenance of tunnels and toll-related components.

APPLYING SIX SIGMA TO IMPROVE THE DEFECT RATE OF ELECTRONIC COMPONENTS: A SIX SIGMA CASE STUDY

2024-02-19T18:22:04+00:00

This study aimed to improve the touch responses of electronic products. The improvement method was based on six sigma improvement steps. Product quality was improved using define, measure, analyse, improve, control (DMAIC) and statistical quality control methods to reduce the cost and waste of defective products. The project identified five critical processes from the manufacturing process and eight critical to characteristics (CTCs). Then CTCs were identified through the critical to characteristic diagram. The root causes were verified using the experimental plan method, scatter diagram, and double ratio test. This study identified three root causes, namely ‘poor reed touch value’, ‘base cavity width’, and ‘jig precision’. The last two causes were evaluated, and countermeasures were taken to ‘change the size of the base cavity’, ‘change the design of the assembly jig’, and ‘change the process of the assembly jig’. The target rate of the overall product defect rate reached 127%.

THE KEY 4IR SOFT SKILLS FOR THE RAIL SECTOR

2023-11-02T13:37:41+00:00

The Fourth Industrial Revolution (4IR) has brought about significant advancements in technology that have impacted various industries, including the railway sector. This paper explores the implications of the 4IR for the railway industry and identifies the essential soft skills that rail organisations need in order to thrive in this era. A systematic literature review (SLR) was conducted to establish a theoretical foundation, followed by a survey administered to professionals in the rail sector to prioritise the identified soft skills. Comparative methods were employed to analyse the survey data and to determine the relative importance of the 4IR soft skills. The findings revealed a range of key soft skills, such as adaptability, critical thinking, and change management, in which it is crucial that railway professionals excel in the 4IR era. The paper discusses the significance of these soft skills and their potential impact on rail organisations, and provides recommendations for fostering their development. This research contributes to a more nuanced understanding of the soft skills that are necessary for the railway sector’s successful adaptation to the 4IR.

DO SOCIALLY RESPONSIBLE AND RISK-TAILORED PORTFOLIOS WIN? A COMPARATIVE ANALYSIS

2024-01-22T10:04:12+00:00

This study introduces three extensions of the Markowitz portfolio selection model: (1) matching portfolio risk to individual investors’ risk appetite; (2) excluding certain shares; and (3) environmental, social, and governance (ESG) integration. The models are compared to the traditional Markowitz model using empirical data from JSE Limited.

The findings reveal that differentiating portfolios on the basis of risk appetites or exclusions had a limited impact on future returns. However, portfolios differentiated by ESG integration showed significantly higher future returns than the other models or industry investments. The study highlights the superiority of ESG integration and suggests that current portfolio selection models do not fully capture the art of investing.

EVALUATING OPPORTUNITIES FOR FURTHER DEVELOPING THE MEDICAL TECHNOLOGY INDUSTRY IN SOUTH AFRICA: A PRODUCT SPACE ANALYSIS

2024-04-13T12:24:35+00:00

Despite recent gains, South Africa is yet to fully develop its economic potential in the medical technologies industry. Yet it remains uncertain which parts of the extended medical technologies industry South Africa should prioritise. This paper uses the input-output product space (IO-PS) methodology to identify key areas in the medical technologies industry that are likely to unlock the industry’s potential in South Africa. The analysis involved using a hierarchical mapping of the industry as input to the IO-PS analysis. Thereafter, the outputs of the methodology were analysed and interpreted. The most promising products for further development under various scenarios were identified.

ORTHOPAEDIC DEVICE INNOVATION IN SOUTH AFRICA: CASE STUDIES EXPLORING THE EFFECT OF CONTEXT ON KNOWLEDGE DEVELOPMENT AND EXCHANGE

2024-04-08T16:35:14+00:00

Orthopaedic devices comprise a significant portion of the medical devices that are imported into South Africa. Through case studies, we investigated the effect of contextual factors on knowledge development and exchange in the orthopaedic device innovation system, using the technological innovation systems framework. Our findings revealed that the drivers of knowledge development and exchange were inter-sectoral collaboration, availability of resources, affordability of available devices, creating legitimacy for devices, and the positive externalities of allied innovation systems. The main barriers identified were those that hindered inter-sectoral collaboration. The critical roles of the university and of healthcare actors were also highlighted. These findings may be used proactively to address problems in the innovation systems and to develop policy and institutional mechanisms that are aimed at building the domestic medical devices industry.

OPTIMAL PRICING AND PRODUCTION LOT SIZE FOR TWO RATES OF PRODUCTION WITH PRICE-SENSITIVE DEMAND, PRICE BREAK-EVEN POINT, AND PROFIT MAXIMISATION IN HIGHER ORDER EQUATION

2024-01-29T06:57:32+00:00

In the present study, optimal pricing and optimal lot size production policy models with price-sensitive demand of deteriorating products are considered, taking into account two distinct production rates. It is possible to begin production at one rate and then switch to a different rate after a period of time. Such a scenario is appealing, in that a big initial stock of produced goods can be avoided by starting production at a modest pace, thus reducing the initial investment and the holding cost. Further, the fifth-order equation is obtained when the equation for optimal pricing is derived. Maximising the profit is calculated based on a fifth-order equation. Both optimal pricing and production lot size are decision variables, and optimal cycle time is also one of the decision variables for determining price break-even points. As far as information is concerned, no researcher has examined optimal pricing and production lot size policies in two-rates-of-production models for their study.The objective of the present study is to examine the optimal production, optimal pricing, and optimal cycle time to reduce the total cost and to maximise the total profit. Both price break-even point and profit maximisation are considered. An appropriate mathematical model is developed. An illustrative example is provided and numerically validated using a sensitivity analysis. Microsoft Visual Basic 6.0 was used to code the model’s outcome validation.

DEPLOYING BUILT-IN QUALITY TO REDUCE SCRAP IN AN AUTOMOTIVE COMPONENT MANUFACTURER

2024-02-07T12:51:59+00:00

Automotive component manufacturers face global competitive challenges, and the paradigm has shifted from product price as the determining factor of competitiveness to the quality of the product. An automotive component manufacturer was struggling to manage the outflow of defects, and adding inspectors as quality gates to the rear-step bumper production line had severe cost implications. This study aimed to reduce the number of defects by deploying a strategic path of implementing built-in quality. Quality tools were used, and the study’s results included significant manpower reduction, improved quality capability, and reduced scrap rates and reworks.

DEVELOPMENT OF A SUSTAINABLE LEAN COMPETITIVE STRATEGY IN A WATER PUMP COMPANY

2023-11-14T09:18:45+00:00

The manufacturing industry is currently experiencing a shift towards sustainability-driven practices and principles. Company X is one of those that want to improve their competitiveness in the manufacturing industry by implementing sustainability. However, this company experiences obstacles in its production process because production targets still need to be achieved owing to product defects that average 8.97%. This study used the sustainable lean manufacturing approach to help the company to achieve more competitive goals by reducing waste and pollution and creating more efficient production processes. The tools used in this research were process activity mapping (PAM), sustainable value stream mapping (SVSM), and the sustainability index (SI). Based on calculations with sustainability indicators, the company’s SI results amounted to 183%. The pProposed improvements were given to improve the company’s efficiency and to reduce its SI. After repairs had been made, the SI value was reduced to 118%. With the improvement in that value, production efficiency has also improved: the process cycle efficiency (PCE) value has become 90.49%, which means that the company’s production process has become more efficient.