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					 Durban Automotive Cluster
An introduction to the plan for 2007 – 2009

The DAC started 2007 with a renewed set of objectives and accompanying business
plan. The new plan aligns all the DAC’s activities with three sets of goals important to
both sets of stakeholders in the Public-Private Partnership, namely the member firms
and the eThekwini Municipality.


The relationship between these objectives, along with the key focus areas, are
outlined below.




                                        Membership
Alltube                            Federal Mogul Friction Products   Navago Machine Components
Aunde                              Federal Mogul Valves              PFK Electronics
Automotive Manufacturing &         Feltex Automotive Leathers        Plastamid
Coating                            Feltex Automotive Trim            Ramsay Engineering
Avlock International               Feltex Fehrer                     CI Shurlok
BEHR Engine Cooling                GUD Filters                       Smiths Manufacturing
Bell Equipment                     Hesto Harnesses                   Steelbank Merchants
Bloxwich                           Hulett Aluminium                  Toyota SA
Brace Able Manufacturing           I&J Component Manufacturers       Trellicor
Commercial Elastic                 Kaymac Structural Foam            Van Ryn Rubber Holdings
Dunlop Tyres International (Dbn)   Maritzburg Engineering            Venture SA
Duys Component Manufacturers       Microfinish                       Webroy
Faurecia Interior Systems          Morecare Engineering Services




                                               June 2007                                         1
Business Plan Focus Areas for 2007 - 2009
Executive
   Annual performance review          -   Annual assessment of performance of the industry & DAC
   Annual General Meeting             -   Formal function to report on performance of the industry & DAC
   Resource centre                    -   Best practice; automotive trends; automotive research papers;
                                           automotive trade data; quality, environmental & health & safety
                                           standards; workshop & selected training material
   Interaction with institutions      -   To support effectively & efficiently attaining DAC objectives

Supplier Competitiveness                                Human Resource Development
Develop purchasing skills in support of                 Senior management workshop
improving supplier management &                           Aligning HR with operational objectives
competitiveness                                           Overview of the DAC’s HR initiatives
  Best practice procurement workshops
  Specialised automotive purchasing courses            Training for HR managers
  Procurement forum                                       Core principles of lean manufacturing
                                                           Using HR to support lean manufacturing
Facilitation of growth
                                                        Supervisory training
   Promotion of a member profile database
                                                          Core principles of lean manufacturing
   Awareness of support in the area of
                                                          Importance of these principles in improving
    government supply side support programmes
                                                           organisational competitiveness
                                                          Alignment of management & the shop floor in
Joint auditing of suppliers
                                                           respect of organisational strategies
   Collaborative supplier development relationships
   Collaborative auditing relationships                Joint training
   Development & mentoring of auditors on ‘core           Training for supervisors on ‘soft skills’
    tools’ to be imparted to suppliers                     OSHAS18000, ISO14001, TS16949 & ‘core
                                                            tools’
Joint procurement of commodity items                       Broader courses covering subjects such as
   Establishing cost benchmarks for commodity              problem solving & lean thinking.
    items & services
   Negotiation of pricing of commodities & services    In-service training
                                                           Learner workshops on industry & life skills
Special interest groups                                    HR manager workshop on learner placements
  Support groups of firms working on short term           Skills retention through collecting data on
   challenges such as ISO 14001 implementation              learners who have successfully completed
                                                            placements & are available for re-employment

                                                        Stakeholder interface
                                                           Collaborative relationship with regulatory
                                                            bodies & educational institutions.

Logistics Coordination                                  Industry Transformation
Newsletters                                             Development of SMEs owned by PDIs
  Notification of important issues such           as     Benchmarking of performance to establish
   infrastructure & port related problems.                 operational deficiencies
                                                          Twinning between large firms & BEE SMEs to
Stakeholder interface                                      provide support in areas of deficiency
   Interaction with regulatory bodies, freight           Provide guidance when interventions are
    forwarders, port operations, various shipping          undertaken at the firms
    lines, & logistics service providers
                                                        Identification of SMEs owned by PDIs
Lean logistics workshops                                  Information sharing workshop to educate SMEs
  Two day sessions run at host plants                     on the requirements of the industry
  Value stream mapping, change management,               Survey & evaluate suitability of SMEs for
   achieving basic stability, creating continuous          inclusion in the development programme
   flow, making materials flow, creating level pull,
   lean warehousing & lean logistics                    Blockages & opportunities research
                                                           Identify blockages & opportunities to BBBEE in
Supply chain management network workshops                   the industry
  Best practice consolidation & movement of               Make recommendations with regards to the
   freight upstream & downstream                            advancement of BBBEE, including a specific
                                                            focus on direct empowerment
Freight rate negotiations & special projects
   Secure preferential sea freight rates               Facilitation of BEE opportunities
   Logistics cost margin benchmarking                     An annual survey to establish the BBBEE
   Logistics optimisation practice checklist               progress of the industry
   Recycling & joint procurement of packaging             Best practice workshops in the BBBEE seven
   Consolidation & movement of finished goods              indicators in support of improving performance
                                                            in each
Provision of logistics expertise
   Internal & external logistics expertise provided    Participation in national industry
    to the Technical Steering Committee &               transformation initiatives
    Workgroups.

                              Durban Automotive Cluster - June 2007                                          2
Competitiveness Benchmarking
There are 146 firms in the global competitiveness database against which
firms can benchmarked.


Firms participating in the KwaZulu-Natal chapter of the South African
Benchmarking Club (SAABC), which is aligned with the DAC participate in or
benefit from the following additional activities:

          Annual competitiveness benchmarking assessment and report
          Quarterly best practice workshops hosted by best performers in
           identified areas
          Newsletters on the latest competitiveness findings
                                                                                                    Total inventory holding levels in operating days

Sources of data                                                            45
                                                                                                                                      41.17
                                                                           40
   South Africa
                                                                           35          33.50


   Western Europe                                                         30
                                                             No. of days





                                                                           25
    Australia
                                                                                                               20.30                                          19.92
                                                                           20

   Central Europe
                                                                           15


   Asia Pacific                                                           10


                                                                               5
   USA
                                                                               0
                                                                                    South Africa         SA upper quartile        Central Europe           Asia Pacific


                                                                                   Average automotive customer return rate (0km failures returned by customers)
                                                             1000
Sub-sector information                                                                                                                 915
                                                                    900


   Trim                                                            800

                                                                    700
   Electronics
                                      Parts per million




                                                                    600


   Heat Transfer                                                   500

                                                                    400
   Glass
                                                                    300
                                                                                       261
                                                                                                                                                               215
   Components                                                      200

                                                                    100
   Precision Machining                                                                                        11
                                                                           0
                                                                                   South Africa         SA upper quartile        Central Europe            Asia Pacific
   Harnesses

   Foundry/forge                                                                  Absenteeism rate (excluding holiday but including all compassionate & sick leave)
                                                                           6

   Metal fabrication
                                                                                                                                      5.01
                                                                           5
   Metal form/press
                                                                           4
   JIT assembly                                                                      3.33
                                                          Percent




   Other (paint and rubber)                                               3



                                                                                                              2.00                                            1.99
                                                                           2



                                                                           1



                                                                           0
                                                                                   South Africa         SA upper quartile        Central Europe           Asia Pacific
                               Durban Automotive Cluster - June 2007                                                                                                      3
                Governing Structure
                The DAC is an industry driven initiative, drawing on the leadership and
                expertise of individuals from a broad range of member firms and using it to
                identify and address a wide variety of challenges confronting the industry.


                The Executive Committee is responsible for determining the strategic direction
                and overseeing the finances of the Public-Private Partnership, while the core
                programmes and identified interventions are overseen by committees of
                industry representatives that meet on a regular basis.


                This process is facilitated by an independent facilitation team from B&M
                Analysts, the same company that runs the South African Automotive
                Benchmarking Club (SAABC).


                                                                     Executive Committee
                                                                                                     1
                                                 Zamo Xaba (Human Resources Dir, Kaymac Group)
                                                 Christo Roets (Purchasing Manager, Aunde) 2
                                                 Laurie Coetzee (Commercial Director, Smiths Manufacturing)
                                                 Johnny Frankiskos (Managing Director, Federal-Mogul Friction Products)
                                                 Alan Holmwood (Snr General Man, Toyota)
                                                 Hassim Jamal (Managing Dir, Commercial Elastic)
                                                 Cyril Khambula (Human Resources Dir, Toyota)
                                                 Lino Pucillo (General Man, Toyota)
                                                 Shunnon Tulsiram (Head Dept Econ Devp, eThekwini Municipality)
                                                 Ted Waldburger (Chief Executive Officer, Behr)
                                                 Nigel Ward (Snr General Ma., Toyota)
                                                                                                                    3
                                                 Chief Facilitator: Douglas Comrie (Operations Dir, B&M Analysts)
                                                                                                                                        1
                                                 Facilitator: Thabani Shale (DAC Man, B&M Analysts) 3                                        Chairperson
                                                                                                                                        2
                                                 Dr Justin Barnes (Managing Dir, B&M Analysts) 3                                             Vice chairperson
                                                                                                                                        3
                                                                                                                                             Non-voting member




      Supplier                          Logistics                       Human Resource                           Industry                      Competitiveness
   Competitiveness                    Coordination                       Development                          Transformation                    Benchmarking
Christo Roets (Aunde) 1          Laurie Coetzee (Smiths) 1          Zamo Xaba (Kaymac Group) 1            Cyril Khambula (Toyota) 1         Paul Kenny (Smiths) 1
John Shaw (Bloxwich)             Blair Helm (Aunde)                 Trish Sims (Bloxwich)                 Hassim Jamal (Comm. Elastic)      Sean Ellis (B&M Analysts) 3
Manuel Ferreira (PFK)            Keith Lambert (Behr)               Mary van Niekerk (Duys)               Patrick Chetty (Kaymac)
Andrew Turner (Ramsay)           Steve Crocker (Duys)               Alan Blades (Federal Mogul)           Graham Randall (Kaymac)
Wade Botha (Smiths)              Kevin Ellis (Kaymac)               Yureshini Hirday (Hesto)              Trusha Pillay (Maritzburg Eng.)
Selvin Konar (Smiths)            Gordon Reddy (Kaymac)              Niri Santhilal (Hesto)                Phiwo Thango (Morecare Eng.)
Clive Randall (GUD)              John Chandler (Hesto)              Johan van Niekerk (Hullets)           Paul Kenny (Smiths)
Neil Woolridge (Hesto)           Dave Watts (Logistics Advisor)3    Kylie Griffin (PFK)                   Warren Greenslade (Smiths)
Patrick Chetty (Kaymac)          Thabani Shale (B&M Analysts) 3     Chrissy Berichon (Toyota)             Thabani Shale (B&M Analysts) 3
Russell Curtis (DIPA) 3                                             Stuart Forbes (Toyota)
Thabani Shale (B&M Analysts) 3                                      Toni Acton (Behr)
                                                                    Thabani Shale (B&M Analysts) 3




                Contact Details
                Information on the programmes or membership may be obtained from
                Douglas Comrie (douglas@bmanalysts.com or 031 765 3870)




                                                     Durban Automotive Cluster - June 2007                                                               4

				
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