This mounting pressure has shown both positive and negative effects on
employee satisfaction. This research will deal with the investigation of such
effects specifically in the supplier environments.
The concept of suppliers operating satellite operations within an OEM’s plant,
is a relatively new concept in South Africa. In a personal interview with Mrs
Letchmee Naidoo, the Branch Manager of the East London’s Customs Office,
the law currently forbids such a practice, as there are implications pertaining
to the revenue structure for imported goods. In other countries such as Japan,
United States of America or the European countries, this concept has been
implemented for quite some time. According to Mr. Klaus Ladzik, Logistics
Manager for the Faurecia Group in Germany, the concept of line-side supply
within a motor manufacturer has been successfully implemented in many
manufacturing plants around the world.
At the Daimler-Chrysler plant in East London an “Industrial Park” has been set
up on site, with much resistance from the South African Revenue Services
(SARS), but it facilitates just-in-time supply.
This assembly line side supply poses the question as to what factors
management should focus on to motivate individuals operating in satellite
operations. According to Herzberg’s “Hygiene Theory” the following factors
increase job satisfaction as well as motivation:
• Achievement;
• Recognition for accomplishment;
• Challenging work;
• Increased responsibility; and
• Growth and development.
The absence of the above factors can contribute to the effect of de-motivation,
according to Herzberg’s model (Hellriegel, Jackson & Slocum, 1999:471).
The National Clearinghouse on Child Abuse and Neglect Information
published an article, Increasing job satisfaction and preventing burnout
retrieved April, 25, 2001 from Http://www.calib.com/nccanch/database,
regarding increasing job satisfaction and preventing burnout effects. The
article deals with the positive effects of job satisfaction as well as the causes
for burnout. The article states that one of the causes for employee burnout is
the excessive contact with the client. This factor plays an important role in the
employees of line side suppliers, as contact with the client is the order of the
day.
1.2 Main problem
WHAT ARE THE EFFECTS OF ASSEMBLY LINE-SIDE SUPPLY ON
INDIVIDUALS EMPLOYED IN SATELLITE OPERATIONS WITHIN OEM’S ?
1.2.1 Sub-problems
• What does the literature study reveal about influences/forces that affect
employees’ satisfaction at work?
• What does a literature study reveal are the differences of the factors
that lead to satisfaction and create a meaningful workplace in a
manufacturing environment?
• What are the effects of employees being removed from their normal
working environment and moved to satellite manufacturing sites within
OEM’s?
• What do knowledgeable people feel are the effects of satellite
manufacturing on employees? How can management ensure that the
above influences do not significantly affect the employees’ ability to
operate effectively?
1.3 Delimitation of research
The research is limited to the following areas:
1.3.1 Organisation to be researched
The research is specifically directed to Faurecia SAI Automotive Autoplastic
(Pty) Ltd, East London plant. The Faurecia Group has five plants in South
Africa, with each unit operating independently. Subsequently, each plant is
considered to be an independent business unit. Only the East London plant is
considered for the study.
1.3.2 Level of management
This report deals mainly with the operational levels in the organisation and
therefore middle management is the main source of information. The
research will therefore concentrate on the operational aspects of line-side
supply and the effects on the individuals involved therein. However, middle
and top management will also be interviewed in order to gather accurate and
holistic information. In most cases, middle and top management have been
involved in operational matters at some stage of their career and have been
promoted. Their input is thus highly relevant to the investigation at hand.
1.4 Methodology
The research discussion will start with the study of theories and models
relating to manufacturing, to give the reader a better understanding of the
manufacturing structures adopted in automotive manufacturing. The literature
study will investigate the relevant theories and models relative to Faurecia’s
business structure. This will be covered in Chapter Two.
In Chapter Three the author will illustrate the 22 key factor model in detail. In
Chapter Four the author will interview employees by means of a questionnaire
regarding line-side supply. The questionnaire and questions will be based on
information gleaned from the literature study.
In Chapter Five, the results of the questionnaire will be analysed. Statistical
analysis, as well as the author’s observations, will be explained to solve the
sub-problems and ultimately the main problem of the study. In Chapter Six
conclusions and recommendations will be illustrated by the author’s own
model.
1.5 Definition of terms
In order for ease of reading the following terms will be discussed:
1.5.1 Manufacturing process
According to Slack, Chambers, Harland, Harrison & Johnston, (1995:140),
there are “general approaches” to manufacturing. The type and structure of
the operation dictate the type of process applied. Because of the nature of
Faurecia’s business, this clearly determines the type of manufacturing
process being implemented. The argument is focused on the current process
type and top management’s ideal process type and therefore its effects on the
employees. According to Slack et al (1995:140), the most common
manufacturing processes are:
• Project processes;
• Jobbing processes;
• Batch processes;
• Mass processes; and
• Continuous processes.
Because of the limitations of the study and the nature of Faurecia’s operation,
the manufacturing system relevant to the study is batch processing. This type
of operation plans and schedules production runs in variable batches or lot
sizes, which are synchronized to achieve maximum output (Aquilano &
Chase, 1991:641).
1.5.2 Synchronized manufacturing
The Venture Industries Handbook (2000:5) defines synchronized (or
synchronous) manufacturing as: “Helping people to learn how to: produce the
right product at the right time, in the right quantities, based on customer
needs.” The fundamental concepts of synchronous manufacturing are
described as follows:
• Customer driven in cost, quality and service;
• People doing the work, managing the workplace;
• Flexible production based on pull systems, short production runs and
zero defects;
• Team approach with flexible, skilled workers working together;
• Mutual respect for one another; and
• Decisions and actions based on facts.
Adendorff, Botes, de Wit, Loggerenberg and Steenkamp (1997:138) note that
synchronous manufacturing “…finds applications where components and sub-
assemblies of finished products are manufactured by the same plant.” This
statement is appropriate for the plant in East London, as different processes
are used within the same organisation. Adendorff et al (1997:138) go on to
describe synchronous manufacturing as a product manufacturing process that
is matched to the production structure of the OEM in order to deliver a
finished product and limit the work in progress.
The Venture Industries Handbook (2000:20) describes other main features of
a synchronized plant. One feature referred to is empowerment i.e. giving
decisional power to the people who are in close contact with the operation.
The second main feature referred to, is the ability to identify problems quickly
and to solve them in the shortest possible time.
The main objective of a synchronized system is to generate an organisation,
which can compete in the global village. The organisation empowers its
people, provides long-term success and security and develops a harmonious
climate amongst its employees. In South Africa there is a need for positive
organisational climates. Siegel (1999:20) explains that seventy-seven percent
(77%) of South Africans have been exposed to negative experiences and
behaviour in the workplace. A positive atmosphere in the workplace is
conducive to positive labour relations. In South Africa, labour relations play an
important role as the country’s political situation impacts heavily on the
productivity levels of organisations (Anstey, 1999:55).
1.5.3 Just-In-Time
The just-in-time theory is a component of both lean and synchronous
manufacturing, but its core concepts form an important basis for both lean and
synchronous manufacturing. Todd (1995:10) defines just-in-time as the
process that “…involves the progressive reduction and elimination of relevant
wastes by exposing fundamental problems… so they don’t keep on re-
occurring.”
There are basic ground rules for just-in-time production: Todd (1995:10)
identifies these as follows:
• Partnership sourcing (or supplier alliance);
• Zero defects (no waste);
• Make today what will be shipped tomorrow; and
• Involve everyone to eliminate any kind of waste.
Just-in-time is an essential basis for synchronous manufacturing, as waste
reduction is an important aspect of productivity improvement.
1.6 Summary
In this chapter the main problem and sub-problems have been identified. The
key terms were explained to introduce the reader to the topic being studied.
Methods of research have been illustrated. The discussion will now focus on
related theories on job satisfaction in the workplace.
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