Firm Competitiveness

The DCC Firm Competitiveness Programme has a number of objectives which includes the following:

  • Improve cost competitiveness in the areas of process, logistics and raw materials;
  • Improve energy efficiency and more effectively manage supply to operations;
  • Improve internal regulatory related processes;
  • Increase availability of identified operational, technical and advanced skills;
  • Effective cluster-wide engagement with HIV and AIDS; and,
  • Promote HSE best practices.

In support of meeting these objectives, the Firm Competitiveness TSC is responsible for the implementation/execution of the activities listed below.
 

Development and Retention of Technical Skills 

  • The scarcity of technical skills is of major concern to all industry participants and needs to be addressed in order to benefit both the local industry and the national economy.
  • The purpose of this intervention is to align the industry with tertiary institutions so as to increase the quality and quantity of skilled persons entering the industry.
  • Current issues being addressed include curriculum concerns, technical expertise and lecturing capabilities, firm-level relations, duration of placements, industry awareness, curriculum input from chemical firms and capacity building.
  • Some of the intended outputs are to increase the placement of P1 and P2 and related students at firms and improve the alignment between higher education institutions and industry.

Development of Operator Skills

  • Operators at firms are responsible for the crucial value-adding activities required to manufacture quality products. It is thus vital that operator skills are developed on a continual basis. In addition, a focus on continuous improvement is imperative to firm survival, with the input of operators crucial to ensuring that this environment exists.
  • It is with this in mind that this intervention, focusing on the development of operator skills, aims to increase the skills of operators to a suitable level where they are have the necessary knowledge to manufacture effectively, and also contribute towards the competitiveness upgrading of the industry individual contribution, a vital aspect of continuous improvement.

Promotion of Advanced Skills

  • For any industry to grow it is vital that advanced skills are supported and retained. This initiative will entail a coordinated approach to the promotion of advanced skills development, as well as the retention of these skills so as to limit the shortage of skills being experienced.
  • The initiative will consider projects for students as well as bursaries for advanced research as proposed methods for overcoming this problem.

Comprehensive HIV & AIDS Programmes at a Firm Level 

The prevalence of HIV and AIDS in the South African workforce poses a serious risk to the competitiveness of the labour intensive chemical industry. HIV and AIDS is consequently as much a corporate responsibility as a social problem. The absence of reliable information on HIV and AIDS prevalence in the chemical industry in KZN makes an accurate estimate of the current HIV and AIDS status amongst DCC members almost impossible.

In response to this the DCC has forged relationships with a variety of different parties, inlcuding the South African Business Coalition on HIV and AIDS (SABCOHA), to improve the DCC's ability to understand and mitigate the impact of HIV and AIDS within DCC member companies

  • Assist member companies to implement comprehensive HIV and AIDS workplace programmes, including facilitating and providing treatment and care for HIV+ employees
  • Drive down the costs associated with HIV and AIDS programmes through joint action
  • Increase knowledge sharing and partnership amongst member companies

At the end of 2009, the DCC revisited all of the Programme components in an effort to improve the effectiveness of the Programme, as well as to ensure it's sustainability in 2010 and beyond.  The Programme has subsequently been expanded to a 12-step Programme:

Step 1:  Baseline Assessment 
  • The main objective of the baseline assessment is to estimate the level of risk within an organisation in terms of HIV & AIDS
  • The baseline assessment will be conducted by SABCOHA with the assistance of a suitable servce provider
Step 2:  Knowledge, Attitudes and Sexual Practices (KAP) Survey
  • The purpose of the KAP survey is to determine the workforce's current knowledge of HIV & AIDS and their sexual practices, to identify existing myths and misconceptions, to identify barriers to behaviour change and to measure behaviour and attitude change
  • The KAP survey will be conducted by a service provider identified by SABCOHA
Step 3-6:  Capacity Building
  • Management Training
  • Steering Committee Training
  • Champion Training
  • Peer Education Training
  • SABCOHA will be providing all of the above training components through a contracted service provider
Step 7:  Awareness and Education 
  • Communication is a critical aspect of the success of any HIV & AIDS workplace programme
  • Participating companies run awareness and education campaigns internally with the assistance of the DCC, SABCOHA and the appointed service provider
Step 8:  Company Aftercare and Support
  • SABCOHA will provide two days of coaching support to the participating company's HIV & AIDS Champions (per annum)
  • SABCOHA will also provide two days of additional support to the participating company\\\'s peer educators (per annum)
Step 9:  Voluntary Counseling and Testing
  • Voluntary counseling and testing (VCT) is done on-site at each participating company and provides employees with an opportunity to find out what their HIV status is
  • The VCT session is preceded by a short group awareness session, whereafter individuals consenting to be tested will receive pre- and post test counseling
Step 10:  Pre-HAART Treatment
  • HIV positive employees with a CD4 count above 350 will  receive vitamin supplements and immune boosters through their Occupational Health Clinics
Step 11:  HAART Treatment
  • HIV positive employees with a CD4 count below 350 will receive treatment from local public health system clinics or semi-private hospitals of their choice
  • The DCC is negotiating with the eThekwini District Health to have three of the participating company\\\'s clinics accredited as 'down-referral' sites.  Stabilised HIV positive employees will then be able to access treatment through these Occupation Health Clinics
Step 12:  Monitoring and Evaluation
  • Participating companies will receive various reports from SABCOHA, the service providers and the clinics in order to be able to monitor the effectiveness of the Programme

Energy Efficiency  

  • With the current strains on energy supply being faced by all of South Africa, including the chemical industry, there is potential benefit to be gained from shared learnings in the field of energy savings.
  • Intended outputs include the establishment of energy saving networks and 10% efficiency gains.
  • Current primary focus areas include technical training sessions, site audits and the publication of energy newsletters as a means for sharing energy-related information.

Benchmarking and Knowledge Sharing

  • The long-term objective of this programme includes the completion of firm-level benchmarking activities and the creation and maintenance of a regional and international benchmarking database.
  • A further aim is the establishment and promotion of a platform from where participating firms can share manufacturing best practices as well as improving firm-level knowledge of World Class Manufacturing processes and practices.
  • Initially a pilot benchmarking project will be conducted and from that a more comprehensive project will be formed in order to meet the long-term objectives of the programme. The benchmarking overview is outlined below.

Benchmarking Overview
The firm level competitiveness benchmarking analyses that take place annually comprise two integrated components, namely a customer benchmark and a like-with-like comparative benchmark. These components allow B&M Analysts to accurately present a value chain picture of the competitiveness of a company in terms of:

  • The ability to understand and meet customer demands
  • Match and exceed comparator/competitor performance levels

The firm-level benchmarking methodology, as well as the market driver approach and the associated operational performance measures are outlined below:

The ability to meet and exceed comparator/competitor performance is evaluated using a ‘market driver’ methodology. While economic & financial measures such as sales, profitability, employment, ROI & cost of sales are measured as indicators of past performance, the measures listed below under the various market drivers represent the heart of the competitive analysis.

Market Driver Operational Performance Measures
Cost Control ♦Total Inventory Holding
♦Raw Materials Inventory Holding
♦Work in Progress Inventory Holding
♦Finished Goods Inventory Holding
Quality ♦Customer Return Rates
♦Internal Reject, Rework & Scrap Rates
♦Return Rates to Suppliers
Value Chain Flexibility ♦Customer Lead Times (ex-finished goods & ex-production)
♦Delivery Frequency to Customers
♦Manufacturing Throughput Times
♦Machine Changeover Times
♦Production Time Lost to Machine/Tool Changeovers
♦Bottleneck Capacity Utilisation Rates
♦Lead Time Performance of Suppliers
♦Delivery Frequency from Suppliers
Value Chain Reliability ♦On Time & In-full Delivery to Customers
♦Production Time Lost to Materials Unavailability
♦Age of Capital Equipment
♦Maintenance Profile
♦On Time & In-full Delivery from Suppliers
Human Resource Development ♦Literacy & Numeracy Level
♦Employee Development/Training
♦Suggestion Schemes
♦Accident Frequency Rates
♦Labour Unrest Downtime
♦Employee Turnover Levels
♦Absenteeism Rates
♦Employee Output
♦HIV&AIDS Interventions
Product Development ♦R&D Expenditure & Source of R&D
♦Contribution of New Products to Total Sales
♦Life Cycle Profile of Product Range