SUNConferences, 27th Annual Conference of the SA Institute for Industrial Engineering

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BENCHMARK INDICATORS FOR COMPETITIVENESS ANALYSIS OF TIER 2 AUTOMOTIVE INDUSTRY
Opeyeolu Timothy Laseinde, Grace Mukondeleli Kanakana

Last modified: 2016-09-16

Abstract


The importance of micro economic drivers is well established globally, and leading economies are largely driven by small and medium scale enterprises. The paper seeks to determine major internal benchmarks for determining competitiveness of tier 2 manufacturers who in turn supply automotive components to tier 1 enterprises, who are the only approved suppliers recognized by Original Equipment Manufacturers (OEM). This is against the backdrop that the automotive industry contributes largely to South Africa’s GDP and as such, its lower tier need to be strengthened. The study sampled tier 2 automotive component suppliers and initial competitiveness assessments were conducted. The relevance and suitability of different competitiveness benchmarking parameters were revealed based on tested Key Performance Indicators (KPI). To achieve higher competitiveness, lower tier automotive component manufacturers are advised to promote workplace cooperation, improve employee working conditions and apply productivity improvement systems that will boost efficiency and improve product quality.


Keywords


Benchmark, Indicators, Competitiveness, Automotive, South Africa