4th African International Conference on Industrial Engineering and Operations Management

Analytical Factors for the South African Foundry Industry: A Benchmarking Study

Kulani Mageza, Boitshoko Kaelo Sedumedi & Xiaowei Pan
Publisher: IEOM Society International
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Track: Optimization
Abstract

The South African foundry industry is in a state of decline. From 2010 to 2020, almost 37 foundries were closed, resulting in 123 operational foundries from 160 foundries. A benchmarking study was done using analytical factors to determine how competitive SA (South Africa) foundries were compared to those in other countries. Notably, an attempt was made to map the analytical factors, such as capacity utilisation, labour productivity, process yield, and energy cost, of SA foundries and compare them to Chinese foundries. Questionnaires were formulated to acquire primary data from SA foundries and China. In South Africa, 11 out of 14 foundries responded to the questionnaires administered through face-to-face interviews, whereas in China, one out of three foundries responded through email. On average, data from SA foundries indicate that they are uncompetitive in gating systems, scrap casting, labour productivity, capacity utilisation, and energy costs. In conclusion, based on these analytical factors, Chinese foundry has a competitive edge over SA foundries and the EU; consequently, buyers may prefer to acquire casting from china due to lower production cost, which translates into cheaper casting. It is recommended that SA foundries invest in upskilling their workforces, adopt casting simulation software, and participate in energy efficiency programmes to improve their competitiveness.

Published in: 4th African International Conference on Industrial Engineering and Operations Management, Lusaka, Zambia

Publisher: IEOM Society International
Date of Conference: April 4-6, 2023

ISSN/E-ISSN: 2169-8767