Page 11 - KZN Business Sense 10.5 Lead story Raksha Laghari- eBook

WHAT SOUTH AFRICAN MANUFACTURING

FIRMS CAN LEARN FROM THE UK?

Mbongeni Ndlovu, Illovo Head of Trade more than South Africa with only and open innovation. Clustering market share and upgrading market representing 45% of its
and Industrialisation at TWIMS double the workforce. allows for close collaboration opportunities. For instance, goods exported.
Our visit came at a time of between interconnected Toyota UK has a fully automated Inclusivity Requires Inclusive
erving as the Toyota Wessels economic stagnation in the UK. companies, suppliers, and metal stamping line in its Leadership: A lack of racial
Institute for Manufacturing The country is grappling with institutions, as exhibited by factory manned by robots and and gender diversity remains
SStudy (TWIMS) faculty stagflation, high inflation and Toyota UK, whose key suppliers Automated Guided Vehicles a challenge in the UK’s
lead for this year’s Gordon slow growth. The UK entered are within 50km of its operations. (AGV). British Sugar’s employees manufacturing sector, with
Institute of Business Science’s a recession in late 2023, and Open innovation in mostly focus on production firms struggling to attract
(GIBS) MBA global immersion while GDP rose 0.6% in Q2 manufacturing refers to planning and maintenance as the younger, more diverse talent.
to the United Kingdom (UK) 2024, it remains only 2.3% a collaborative approach majority of sugar mill production One of the firms we visited had
was a privilege. The UK module where companies go beyond is automated. In contrast to South
is part of the Manufacturing above pre-pandemic levels, their internal research and Africa, where technologies are 80:20 gender split in senior
management in favour of males
trailing the Eurozone and the
Focus MBA Programme. resisted if seen as job-destroying
It took place from 4 to13 USA. Inflation, which averaged development (R&D) capabilities with the effects of constraining with only one person of colour
October 2024. The objectives 8% in 2023, appears to be and engage external partners such competitiveness and limiting in a senior executive role. South
of the Global Module are stabilising. Additionally, the as other businesses, universities, our upgrading opportunities. Africa faces similar issues, but
threefold: to examine another UK’s policy environment has and research institutions to However, these decisions in firms that emphasise inclusive
country’s economy as well as seen uncertainty over the past develop new products, processes, leadership and diversity are better
its positioning in the global decade following the 2016 Brexit and solutions. Despite the global the UK are carefully evaluated positioned to draw from a wider
context, to visit and benchmark referendum, which has had sugar glut over the past decade through Payback Period and talent pool.
that country’s manufacturers lasting impacts on trade and with sugar supply outstripping Return on Investment (ROI) In addition to exposing our
and manufacturing support political stability. Since the Brexit demand, and depressing global analysis. In South Africa, where students to the fun and social
institutions and meet interesting vote, the UK has had six Prime sugar prices; British Sugar’s labour costs are relatively low, aspects of life in the UK,
and knowledgeable individuals Ministers in eight years. Liz Truss financial performance has some technologies adopted in including partaking in punting
who are passionate about had a historically short tenure remained consistent due to the UK may not be as investment and Pimm’s in Cambridge, the
manufacturing and its role in resigning in October 2022 after its implementation of several attractive. Each technology GIBS MBA global immersion
developing society. These trips, serving only 45 days in office! innovations, including producing decision requires careful to the UK reinforces the core
ultimately, allow MBA students Key Lessons from the UK a wide array of co-products from evaluation of costs and benefits. principles of the Manufacturing
to expand their horizons its sugar beet mill. In addition The Role of Industrial and Focus curriculum developed
and allow them to reflect on Lean Operations and to sugar, the mill produces Trade Policies to Enhance
their MBA journey and their Supply Chain Management co-products such as animal Competitiveness: The UK’s by TWIMS. Through firsthand
present and future role as a Remain Foundational: Lean feed, topsoil, electricity, Limex commitment to net-zero carbon exposure to cutting-edge
manufacturing business leader manufacturing is the foundation (a liming product), bioethanol, emissions by 2050, with specific technologies, lean manufacturing
within a global context. of the UK’s technological and and medicinal cannabis. British targets and incentives for practices, and sustainability
sustainability advancements. initiatives in leading UK
This year, we focused on the Companies like Toyota UK excel Sugar’s innovations have been manufacturers and society to companies, students were
UK’s western midlands, starting in continuous improvement facilitated by adopting lean decarbonise by 2030, provides a equipped with the tools and
in Manchester, the birthplace of through their Kaizen approach. factory management, which clear framework that encourages motivation to drive innovation,
the Industrial Revolution, and For example, Toyota UK’s they learnt from companies long-term investment in operational excellence, and
engaging with leading academics Business Retention and like Toyota UK and from sustainability. Policy certainty inclusive leadership in South
at the Global Development Customisation (BRC) is an partnering with other companies, helps firms like Toyota UK and African industries.
Institute (GDI) and the University innovation introduced by the UK like Air Liquide and Jazz British Sugar make informed In the future, we aim to expand
of Manchester. We visited to remanufacture and customise Pharmaceuticals, who have product and energy transitions our global immersion program
world-class manufacturers like vehicles. The centre’s business better expertise in marketing and decisions. South African to developing countries such as
Toyota UK and British Sugar and model is highly profitable as it selling the coproducts that British manufacturers could benefit Thailand, Turkey, Egypt, Ghana,
explored future manufacturing rapidly refurbishes vehicles, with Sugar produces. British Sugar’s from similar policy stability and Kenya. These regions provide
trends at the Institute for a quick turnaround, based on diversification into co-products and incentives that promote diverse business environments and
Manufacturing (IfM), University Toyota UK’s existing Just-in-Time is an example of open innovation innovation in green technologies. benchmarks, allowing our MBA
of Cambridge. Manufacturing model. The lean and driving resilience, which is a Conversely, Brexit’s negative students to experience different
The UK’s manufacturing principles that drive innovation strategy that could apply to South impact on UK exports highlights stages of industrial development
sector differs significantly from and advancement in the UK are African agribusinesses. the importance of regional trade and learn from developed and
South Africa’s. With an annual the same foundational principles Balancing Technology and agreements and avoiding policy emerging economies. 
output of around $267 billion, of Lean Manufacturing that Employment Requires Careful disruptions that could hamper
manufacturing accounts for are prerequisites to enhancing Evaluation of Costs and growth. Some estimates suggest https://twimsafrica.com
approximately 10% of the UK’s operational efficiency in South Benefits: UK firms are more that Brexit will cost the UK
economy and employs around 2.6 African firms. willing to adopt technologies economy between 4% to 5% in
million people. Despite its smaller Clustering and Open Innovation that may displace workers, GDP losses per year over the
share of the economy, the UK is Provide an Ecosystem for understanding that efficiency next 15 years due to the increase
a manufacturing powerhouse, Growth: The UK’s manufacturing gains often translate to long-term in cost of trade to the EU. The
producing around nine times job creation due to increased EU is the UK’s largest export
ecosystem thrives on clustering

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