Ralis Report Ralis Report Findings and Proposals Mesopatner Dr.Jorg Meyer Metal Casting Technology Station Ralis Report Metal Casting Technology Station.

Ralis ReportRalis Report

Findings and Proposals

Mesopatner

Dr.Jorg Meyer

Metal Casting Technology Station Metal Casting Technology Station Ralis Report Ralis Report

Findings and Proposals

Mesopartner

Dr.Jorg Meyer-Stamer

Metal Casting Technology Station (MCTS) 2/37

What is RALIS, or What is RALIS, or Rapid Appraisal of Rapid Appraisal of Local Innovation SystemsLocal Innovation Systems??

A methodology to get, within a short period of time, – an overview of the main features of a local innovation

system, or the competitiveness of a sector in a given region

– a number of proposals for practical activities to strengthen the local innovation system and thus improve competitiveness

Metal Casting Technology StationMetal Casting Technology Station


Main insights underlying RALISMain insights underlying RALIS

Innovation is a main driver of growth and prosperity Innovation is driven and supported by a variety of

factors in innovation systems There is a highly relevant regional dimension to

innovation systems Territorial innovation systems tend to suffer from

– disconnection or – fragmentation

Connecting or de-fragmenting a territorial innovation system helps to unleash growth potentials

RALIS offers an answer to the question: How to do that?


How do we find those answers? How do we find those answers?

Talking to stakeholders in the innovation systems– individually (interviews) – groupwise (miniworkshop)

• facilitating direct communication among stakeholders on the spot

... using specific tools – structured interviews– various miniworkshop formats


What did we do? What did we do?

25 face-to-face interviews (GP, WC, MP, KZN)3 telephone interviews (GP, LIM)5 mini-workshops (GP) = 60 contacts in 6 days of fieldwork


Company interviews and visitsCompany interviews and visits


MiniworkshopsMiniworkshops


RALIS Exercise: FindingsRALIS Exercise: Findings


The RALIS view at innovation systems: The RALIS view at innovation systems: The Four Pillar Model The Four Pillar Model

CompaniesFrameworkconditions

Technologyinstitutions

Educationinstitutions

Innovation


Findings on companies: Current status Findings on companies: Current status

Strengths: The foundry industry is

currently doing well > strong demand for foundry products

A lot of capacity that is not utilised

Optimistic perception in industry regarding ability to compete against international firms, including those from China

Weaknesses: Process efficiency still not on par Limited capital expenditure Little need to do marketing Limited ambition of many

medium-sized businesses to grow – barriers to growth, e.g.

introduction of second shift Next to no strategic management Group think has paralysed firms

in Jhb about skills, risk etc.


Findings on companies: Technology and Findings on companies: Technology and innovation innovation

Strengths: Some firms are upgrading

some equipment and processes, especially in the automotive parts sector

Some firms can show really great products

Weaknesses: Only some companies are under

strong competitive pressure that forces them to constantly upgrade

Companies depend mainly on suppliers and some experts for technology transfer / innovation

Majority of companies is experience-based (trial and error) rather than science-based

Very little benchmarking Technology institutions are weak

or irrelevant to industry


Findings on companies: Collective Findings on companies: Collective action action

Only in some cases is there informal collaboration between very few companies on technical issues

The South African Institute of Foundrymen (SAIF)– is not very effective beyond training and, to a limited

extent, lobbying – runs successful social events, while technical

seminars are poorly attended.


Findings on companies: Future Findings on companies: Future perspectiveperspective

Companies need to collaborate more to address shared issues – Foundries in the Western Cape need to be involved

Companies should be more concerned with medium- and long-term perspectives, and conduct long-term planning – There is a good chance that the foundry industry will

consolidate to a critical mass of competitive companies– Among the three main drivers of the industry, mining and

infrastructure look solid in the medium term, while automotive depends on HQ decisions of OEMs and is thus unpredictable


Findings on framework conditions Findings on framework conditions

Positive message: MIDP is highly relevant for

automotive parts producers

Negative message: Government does not respond

adequately to the export rush in the scrap sector

The electrical supply problem is a major issue for the industry


Findings on training and skills (1)Findings on training and skills (1)

There is a shortage of skills at all levels There is a particular shortage of maintenance and non-

foundry staff (e.g. electricians) The unit standards have been draw up, but have been

waiting for approval for more than two years now What is available are mostly generic courses that are

not adapted to the needs of the foundry industry


Findings on training and skills (2)Findings on training and skills (2)

The foundry industry pays little attention to the attraction of new talent – the industry is competing for talent, and is probably

losing – the impact of increasing global recruitment in

technical fields is not yet adequately understood Demand for students from higher education exists, but

supply is very limited Students at tertiary level suffer from formal and life skills

deficiencies


Findings on Metal Casting Technology Findings on Metal Casting Technology Station Station

Few people in the industry are aware of the Technology Station

The TS is known as a training provider, not as a technology institution

There is a (wrong) perception that the TS targets primarily low-end, low-tech clients


Myths that we encountered Myths that we encountered

Myth No. 1: The foundries are by and large

competitive, and can compete internationally even without TQM systems

Fact: Leading foundries in SA

understand the enormous competitive pressure in the world market, the need to constantly upgrade, and to manage processes more consistently.



Myth No. 2: India and China are

competitive because of low wages and mediocre quality, and they are particularly competitive on small high volume products

Fact: In India and China, a massive

upgrading process is underway, and competitiveness is increasingly based on technology and other factors.



Myth No. 3: The foundry industry is a dirty

and declining industry.

Fact: The foundry industry in SA is

growing in terms of output.



Myth No. 4: The skills shortage must be

addressed by government / SETA, and formal education will solve the skills problem

Fact: The skills shortage must be

addressed primarily by the industry. MERSETA will respond to robust proposals by industry. The foundry industry is an experience-based industry, and its future depends on its ability to transfer the tacit knowledge of experienced employees.



Myth No. 5: Government is standing in the

way of a positive development of the foundry industry

Fact: The foundry industry is flying

below the radar screen, for instance in terms of environmental issues. Certain government initiatives, like MIDP, are a boon for companies in the industry.


Recommendations for the Technology Recommendations for the Technology Station Station


Improve the focus of the Metals Casting Improve the focus of the Metals Casting Technology StationTechnology Station

Update the business plan to reflect findings of the RALIS

Target key issues in foundries:– metallurgy, – sand, – core making

Shift energy from one-on-one interaction towards one-on-many interventions

Market the services and offerings of the MCTS better to industry


Recommendations for MCTS regarding Recommendations for MCTS regarding practical trainingpractical training

Undergo MERSETA training on procedures and offerings

Become a MERSETA accredited training providerConnect graduate students with industry for

research project (dissertations, etc.)


An excellent technology stationAn excellent technology station

Technology station to provide its services to other provinces

Requires additional funding and support from Tshumisano / Department of Science and Technology, UJ to increase its capacity

The MCTS should become a centre of excellence in some specific foundry related areas

MCTS should assist other specialised centres of excellence to be established elsewhere (with support from Tshumisano)


Recommendations for SAIF Recommendations for SAIF


Strengthen the capacity of the SAIFStrengthen the capacity of the SAIF

Conduct a survey under members to understand poor turn-out at technical meetings– Adapt events to address needs of members

Closer co-operation between SAIF and WCIFSAIF should become a professional body with full-time

executive and support– In order to better lobby on issues like scrap– To better represent the industry and its needs to

financiers, investors, government and buyers


Improve practical training / Improve practical training / apprenticeships: Tasks for SAIF apprenticeships: Tasks for SAIF

Several firms already involved in skills development that are willing to work with other firms and stakeholders– Better co-ordinate and share info on available training– Leverage existing goodwill and support further

investmentArrange special training courses on specific topics like costing

– Work with firms to bring in international specialists for training

Lobby for the development of a national skills development plan specific to the foundry industry

Industry should lobby with MERSETA to have the unit standards finalised


Recommendations that involve Recommendations that involve collaboration between the Technology collaboration between the Technology Station and SAIF Station and SAIF


Improve practical training / Improve practical training / apprenticeships: Tasks for SAIF apprenticeships: Tasks for SAIF and MCTSand MCTSPromote better uptake of learnerships and vouchers

MCTS to engage with industry and MERSETA to organise groups for special training events.


Promote benchmarking practices Promote benchmarking practices between firmsbetween firms

SAIF / MCTS should promote benchmarking between firms

Technology station / Tshumisano to support benchmarking exercise by partially funding an expert

Present the concept of a competitiveness club at the next SAIF technical meeting


Further needs for action (1)Further needs for action (1)

SAIF, MCTS and others to lobby with government on the scrap issue and other regulatory issues

SAIF should engage more actively in the NFTN development process

The industry and supporting agencies (MCTS, CSIR, IDC, MERSETA) need to become more active in:– technology demonstration and promotion (cleaner

production, new technology etc.)– attracting talent into the industry at a younger age– Using study tours to raise interest of learners


Further needs for action (2) Further needs for action (2)

Middle and upper management development is receiving very little attention at the moment relating to succession planning, strategic management, or specific topics like costing

MCTS to become a focal point for government support to industry – and SAIF the focal point for industry to government interaction


Conclusion and Summary: Possible Conclusion and Summary: Possible quick-win activitiesquick-win activities

MCTS: Connect graduate students with industry for research project (dissertations, etc.)

SAIF: Conduct a survey under members to understand poor turn-out at technical meetings– Adapt events to address needs of members

There are several firms already involved in skills development that are willing to work with other firms and stakeholders– Better co-ordinate and share information on available

training– Leverage existing goodwill and support further investment

Present the concept of a competitiveness club at the next SAIF technical meeting


Thank you for your attention! Thank you for your attention!


The RALIS Team The RALIS Team

Shawn Cunningham 082 902 4200Mpho Dibakoane 073 888 7599Adrie El-Mohamadi 082 902 4083John Lawson (Cape Town)083 266 8796Mpho Mabotja 082 431 5441Dr Jorg Meyer-Stamer 072 466 1422Richard Seymore-Wright 083 297 1006Farouk Varachia 082 788 4816Henning Viljoen 072 111 3996

Ralis Report Ralis Report Findings and Proposals Mesopatner Dr.Jorg Meyer Metal Casting Technology Station Ralis Report Metal Casting Technology Station.

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