Perceived production planning and control problems at Cataler South Africa.

Abstract

The business environment is dramatically changing. Companies today face the challenge of increasing competition, expanding markets, and rising customer expectations. This increases the pressure on companies to lower costs in the entire supply chain, shorten throughput times, reduce inventories, expand product choice, provide more reliable delivery dates, better customer service, improve quality, and efficiently coordinate global demand, supply and production. Process improvement and the need for it move fast in today’s competitive markets. Methodologies used in business for advancement and remaining competitive are enterprise resource planning and lean. This study was concerned with the perceived production planning control problems at Cataler South Africa. Cataler South Africa manufactures catalytic converters for the Toyota market. The objectives of the study were to evaluate the inventory system, procurement of raw materials, to determine the impact of the need to place urgent orders of raw material, to establish an effective production planning schedule and to ensure timeous delivery of products to customer. The study employed an exploratory research using qualitative methods to analyse the responses of 15 participants at senior level. Several initiatives were identified which would enable the organisation to pursue an effective production planning system. Strategic recommendations were made for the production control department. In terms of implementation, it was recommended that Cataler South Africa commence with inventory policy objectives, supplier and customer delivery monitoring and visualisation, training and communication at all levels to redesign the production control processes and to change the way the department conducts its daily duties.