Preparing South African Manufacturers for Major Projects

1. Preparing South African Manufacturers for Major Projects

3. Misconception of Status • The South African nature: • Optimistic • Superficial in dealing with detail • Over-Estimate • Own Ability • State of Readiness • We are “World Leaders” in Crisis Management • Over-promise and under-deliver

4. Situation • We always think of delivery…….We promise improvement, and then focus on getting units to the door, and ?....….. • Reality shows that Quality prevents / disrupts delivery with => • Serious impact on the customer’s experience and cost • Threatening the company’s own financial security • Under-performance & reputation damage

5. The Doom Cycle Rob production line of resource, to repair => Further delay, more defects from line…. vicious cycle. PASS

6. Situation Underestimate…. • Impact of: • Design change • Lack of operational, robust quality systems • Detailed process planning • Cost associated with: • Inadequate / poor production preparation • Defect repair • How quickly CASH problems cripple the company • Training in advance

7. Case: Project Delivery 12 month delay 18 month delay

8. Fundamental Concerns Skills base has been lost in the period of inactive manufacture Shortage of knowledge Shortage of experience

9. Status of essential needs Dormant period- almost 20 Yrs • Experienced Engineers • Experienced Hard Skills: • Artisans • Skilled Workforce • Supplier base

10. Status of essential needs • One Generation is LOST in essential skills of Rail Manufacturing. • The young have just started • and are inexperienced. • Critical mass of skilled and experienced people for major projects, have not yet been developed.

11. Case: Project Delivery INTERVENTIONS • Training • Production Control • Quality Gates • “My Problem” activity (People involvement) Focussed rescue intervention: UCW, TOSHIBA Weld School Piping Skill Electric Skill Inspectors Skill

12. Corrective Action Massive effort to save projects by: • Mitsui (MARS, VENUS) • UCW • TOSHIBA (Japan Expert Support) Cost impact on customer and contractor due to delay Cost impact of developing essential needs DURING contract delivery period NOW FUNDEMENTAL SKILL JUST AGAIN DEVELOPED

13. Imperatives • QC Network • Defect feedback & root cause analysis & eliminate • Detailed work instructions, quality key points defined • Trained people working as teams

14. Imperatives • Detailed Task List and progress tracking • Detailed parts management • Capable Shop Floor Leaders

15. ARE WE READY ? • Have to ENSURE we retain Skill & Experience • Pre-production preparation • Project Management • Core skills development Before we start manufacture • LIMIT the amount of change at project start Sustainability of business is directly linked to the stability of demand.

16. ARE WE READY ? • Yes and No……. • We have pockets of excellence available in SA manufacturing industry • Require people training and development; investment by industry who hope to participate, without certainty of actually doing so • It is too late to start development & training, after the contract is awarded • There is much to do……… • We will succeed! • We are South African! • We have expert support available

17. THANK YOU