Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

ICT in Manufacturing

VIEWS: 238 PAGES: 45

									                   ICT IN MANUFACTURING


                               Prepared by:

       The ICT in Manufacturing Core Team, with contributions from



Riaan Coetzee -CSIR
Francois Denner - CSIR
Johan Eksteen - CSIR
Johann Eloff - Sasol
Dr Evan Govender – SA Breweries
Alan Hirsch – President’s Office
Dr T Morwala – SA Breweries
Wynand van der Merwe - ISETT
1.    Definition and scope

                                     Craft/Culture
                                     Craft/Culture
                                   Clothing/Textiles
                                   Clothing/Textiles
                                   Metals/Minerals
                                   Metals/Minerals
                               Chemicals/Biotechnology
                               Chemicals/Biotechnology
                                     Automotive
                                      Automotive
     Adv. Materials Adv. Products Adv. Production Logistics Cleaner Production
      Adv. Materials Adv. Products Adv. Production Logistics Cleaner Production
                     Information and Communications Technology
                      Information and Communications Technology


Figure 1: Position of ICT as a base for advanced manufacturing

Information and Communication Technologies (ICT) are considered to be key for
an advanced manufacturing strategy. ICT forms the basis for most advances in
manufacturing technologies. The scope of this document is to capture the base
technologies involved across all industry and technology sectors.


                                       Focus Area 11
                                        Focus Area             Focus Area 11
                                                                Focus Area




             Key Solution 11            Key Solution 22
                                         Key Solution                  Key Solution 33
                                                                        Key Solution
              Key Solution




                         Applied                         Applied
                                                          Applied
                          Applied                      Technology 22
                       Technology 11
                        Technology                      Technology



        Base
         Base                       Base
                                     Base                          Base
                                                                    Base
     Technology 11
      Technology                 Technology 22
                                  Technology                    Technology 33
                                                                 Technology


                               Environmental Factors
                                Environmental Factors


Figure 2: Strategic technology map
In order to differentiate between logistics technologies, production technologies
and ICT in Manufacturing we make use of a “strategic technology map”1.


   Base technology – Cannot be use directly to solve significant problems.
   Applied technologies – Number of base technologies used to solve a problem.

A typical example of the application of a modified strategic technology map is
shown in the picture (Figure 3) below.




Figure 3: Modified strategic technology map

In the above example, robotics, together with simulation and modelling, will create
scheduling technologies that are some of the tools that form production
technologies.




1 Modified from “Assessing the utilisation and the effectiveness of investments in science and
   technology using the thrust portfolio approach” (Patterson and Kfir).
2.     Strategic Context

2.1. Consultative Process


                                       Foresight and
                                        Technology
                                        Roadmaps
     Industry and
                                                                                     DTI ICT
      Technology
                                                                                    Diffusion
     Sector Teams
                                                                                     Survey




                    Government                                                                  Organisations,
                                                                    Industry
                    Departments                                                                  Associations
                                                                    Leaders
                                                                                                   and TEI's




                                                                    National and
                        Key National
                                                                    International
                         Initiatives
                                                                       Experts




                                                       Phase 2 Output




Figure 4: The consultative process

The objective of the project was to undertake an extensive consultative process
within the tight project deadlines. Due to the cross-cutting nature of ICT, the team
relied on input and feedback from the industry and technology workshops that
were held as part of Phase 1 and Phase 2 of the Advanced Manufacturing and
Logistics Technology Strategy project. Figure 4 illustrates the flow of the process,
starting with the national and international foresight and technology roadmaps.

Various information sources were investigated and tapped in order to produce this
output:


     National and international foresight and technology roadmap reports.
   Industry and technology sector teams.
   The dti ICT diffusion study done on eight manufacturing sectors. During this
   study, 396 people in various industries and companies were interviewed.
   Various government departments.
   Industry leaders.
   Key national initiatives( DST ICT mission, Advanced Institute for Information
   and Communications Technology, etc.).
   National and international experts in the ICT arena.
   Other organisations such as ISETT, universities and technikons.

The consultation process is ongoing and will not stop with Phase 2. It should be
noted that this is a non–exclusive project and all comments are welcome.

2.2. Key Stakeholders


                                                     ICT in
                                                  Manufacturing




                                  Department of       Department of Public             Department of
     NACI ICT Mission                                                                                           TEI's
                                 Communications         Administration               Trade and Industry




                                                                                           International
                                     Telkom                                  ISETT                         Associations
                                                                                              Donors

  ICT University




                        ICT Technology
                          Roadmaps




                                                       Service Providers                                     Industry




Figure 5: Key stakeholders
During the consultative process, a few key stakeholders were identified (see
Figure 5). They will play a significant role in the success of the project since they
are involved in different aspects of ICT. These stakeholders are:


   Department of Science and Technology (DST)
   NACI
   Department of Trade and Industry (dti)
   Industry
   Department of Communications (DoC).

2.3. Fragmentation

ICT in manufacturing is fragmented throughout various sectors, organisations,
government departments and university departments. This explains the large
number of relatively small ICT initiatives in South Africa. There is a lack of
common goals and no strong ICT leadership to align organisations with a common
goal.

Due to this fragmentation, investments in the various projects rarely have any
significant impact and most of these projects are not addressing an industry need.
Directing all investments towards a common goal could make a huge impact and
have great relevance for the manufacturing sector. Strong ICT leadership is
needed, dictated by the needs of the manufacturing sector.

2.4. Economic Importance of ICT

ICT has the potential to contribute towards income generation and poverty
reduction. It enables countries to capture economic opportunities by increasing
process efficiencies, promoting participation in expanded economic networks and
generating opportunities for job creation.

As developed nations use information technologies for greater levels of
outsourcing, developing nations will experience fewer market barriers and are
more likely to become suppliers in these markets. However, it is necessary for
developing nations to build up the ICT links to integrate themselves into the supply
chains of multi-national companies (MNC). Developed nations also use ICT for
improved manufacturing flexibility and therefore developing nations face increased
competition.
2.4.1.    Country Evidence

An important common characteristic throughout the US economy, and in the EU
nations whose economic performance compares with that of the US, is the
extensive use of ICT. According to a World Bank report, the resurgence of
productivity growth in the US in recent years can be attributed to the adoption and
diffusion of new technologies and to the accelerating pace of product and process
innovations. In particular, the diffusion of ICT has been fundamental.

Evidence suggests that the impact of ICT is not limited to the producing sectors
alone but, as ICT is diffused throughout the economy, its impact becomes
particularly evident in ICT-using sectors.

Due to the cross-cutting nature of ICT, it could be applied to any industry sector.
As a result of this, the amount of ICT investment and spending in a country is
more important for growth performance than the size of the ICT sector.

The implication of the above statement is that a low level of ICT production in a
country may not necessarily inhibit productivity growth, as long as the diffusion of
ICT is widespread and its use is efficient. In other words, nations that have virtually
no production of ICT goods could still benefit substantially by adopting ICT
technologies.

2.4.2.    South African Situation

The SMME sector in South Africa makes up 99,3% of all private sector enterprise
in the country – the remaining 0,7% being made up of large enterprises. In 1998
the South African small- and medium-sized business sector absorbed some 45%
of people employed in the formal market and contributed up to 33% to the gross
domestic product (GDP).

SMMEs represent an important vehicle for addressing the challenges of job
creation, economic growth and equity in South Africa. Throughout the world
SMMEs are playing a critical role in absorbing labour, penetrating new markets
and generally expanding economies in creative and innovative ways. The case
cannot be stronger for South Africa, a country rich in entrepreneurship, yet lacking
in common constructive resources to enable delivery.
              Figure 6: Manufacturing performance (% growth)

The weak manufacturing performance in 1998 and 1999 followed the Asian crisis
which placed pressure on South African industry through increased competition
from Asian products. Figure 5 shows that an increase in manufacturing
performance is needed to stop the year-on-year job losses in the manufacturing
industry.

Various factors have been identified for increasing manufacturing performance.
Increased exports, higher productivity and more foreign investment are some of
the key variables that could influence manufacturing performance. If we consider
the US and European experiences, where the use of ICT increased productivity
growth, it is clear that ICT could play a significant role in increasing manufacturing
performance.

The diffusion of ICT in the manufacturing industry will be of strategic importance to
the country for the following reasons:


   Increased productivity.
   Development of ICT infrastructure and connectivity, one of the main indicators
   that investors look for as an indication of technological development in a
   country.
   The convenience of ICT linkages with multi-national corporations and the ability
   to fit seamlessly into their value chain.
    2.4.3.         Factors Influencing ICT Diffusion

    Some of the key factors that have an influence on ICT diffusion are:


            Connectivity.
            Adoption.
            Usage.
            Policy environment.
            Structure of industry.

    Table 1: UNCTAD key technology development indicators


INDICATOR Telephone           Mobile       Personal     Internet     Internet       Five-year     Television
            lines per         phone       computers    users per    hosts per     investment in    sets per
 COUNTRY
               100          subscribers    per 1 000      1 000      100 000          tele-         1 000
 OR AREA
          inhabitants        per 1 000    inhabitants inhabitants inhabitants   communications    inhabitants
                            inhabitants                                           (millions of
                                                                                    dollars)

Argentina      20.11        121.2         49.2         24.61       389.507      8 309.50          293.4

Australia      51.96        347.6         475.8        320.78      5 829.973    16 829.76         712.7

Botswana       7.68         75.1          31.3         7.51        139.351      164.11            20.4

Brazil         14.87        89.5          36.3         20.83       265.760      35 319.99         324.2

Canada         65.45        223.9         356.5        356.49      5 411.028    18 234.50         734.6

Finland        55.18        651.2         360.1        414.90      8 940.022    4 284.91          650.0

India          2.65         1.9           3.3          2.81        2.349        12 490.74         71.3

South Africa 13.76          132.1         60.1         45.61       420.135      6 005.15          138.5

United         66.44        311.5         510.5        268.27      19 251.416   119 672.71        843.0
States



    Table 1 gives some of the key indicators for connectivity for a country. Regular
    benchmark reports and continuous monitoring are needed to extend the ICT
    diffusion in an industry. South Africa is significantly behind the developed world in
    this area, but fairly far ahead in the developing world.
3.     Global Trends2

3.1. Technologies

Wireless Networks and Satellite Technology

These have evolved to the point where wireless access is generally available.
Use of wireless networks has been made attractive by the emergence of
standards (e.g. Bluetooth and WAP), inexpensive standards-based devices, and a
wide array of digital programmable devices, many of them portable.

Monitoring and Sensing Technology

Monitoring and sensing devices are prevalent in a wide range of applications. For
example, they are used extensively in cars and other vehicles, where they
continuously monitor component performance. They are appearing in personal
medical devices, consumer packaging (including clothing labels) and as part of
smart-highway infrastructure. The list of uses expands daily. Coupled with
wireless networks, this technology is a key foundation of burgeoning telematics,
telemedicine and similar network-based solutions.

Geospatial Technology (including remote sensing)

This is being used in a wide range of applications, from sub-surface mineral
analysis to land-use monitoring and vehicle location tracking. Improvements in
sensor technology, especially in the spatial, spectral, radiometric and temporal
resolution, have allowed the proliferation of feasible applications. Geospatial
technology provides the mapping support required for navigation systems that
form a key part of the rapidly evolving telematics market.

e-commerce (B2B & B2C)

This is defined as sales or purchases over the Internet, with or without on-line
payment, excluding private networks. Dramatically increased computing power,
the rapid growth of broadband networks and out-of-the-box software solutions are



2 Adapted from “ICT Diffusion and Applications in Eight Industry Sectors in South Africa:
     Overview and Synthesis of Main Findings, 2002
the key drivers behind the rapid growth of e-commerce across all sectors of the
economy.

Automation and Control Technologies

Essentially, an automation and control system combines a number of supporting
technologies, coupled with ‘intelligent’ ICT. (ICT is now advancing as the most
basic technology for automation.)

With more powerful processors and smarter lower-cost sensors, robot systems are
becoming more intelligent.     They have long been used in manufacturing
applications and new uses are starting to emerge in entertainment, and the social
and environmental fields, amongst others.

CAD/CAM and Rapid Prototyping Software

3D modelling in particular has long been integral to industrial manufacturing
businesses. With the increased availability of affordable, off-the-shelf software
and improved 3D modelling capabilities, the use of CAD/CAM is growing in a
variety of industries, including clothing and textiles, mining exploration and
production, and building estimation and construction scheduling.

Decision-Support Systems (Smart Systems)

These are computer-based advisory systems to assist decision-makers in product
and process design, tooling and equipment selection, production scheduling and
control, materials management and other areas.

Simulation and modelling are becoming the accepted norm for product and
process design and implementation.

Decision-making “cockpits” and “dashboards” will provide an unprecedented ability
to evaluate the impact of options, alternatives and issues regarding product and
operational performance, based on up-to-the-moment status data from across the
business.
Voice/Speech Recognition

Major advances in speech and voice recognition have tremendously improved the
human-computer interface. These advances, coupled with inference capability,
have allowed the development of intelligent machines driven by a human talking to
a machine and telling it what to do. Current research activities are focusing on
making this type of technology available at low cost.

3.2. Applications

Customer Relationship Management

It is the applications software that allows enterprises to deepen their relationships
with customers through more effective sales management and customer service.
The software includes inbound e-mail management, outbound e-mail marketing
campaign management, call centres, chat groups, voice-over IP (VOIP),
knowledge-based searching, customer self-service and interactive selling
software. ECRM is becoming a cornerstone of e-business implementations.

Enterprise Resource Planning (ERP)

This refers to an integrated suite of business applications that typically includes a
variety of financial and HR management products. At present, most ERP vendors
are actively pursuing e-business integration strategies that include web-enabling
ERP business functions, linking e-business servers to ERP business functions,
and integrating ERP business functions with their business partners.
Convergence between ERP and supply chain management (SCM) applications is
also under way.

Multimedia, Virtual Reality and Augmented Reality Technologies

These technologies combine sound, video, text and graphics into a set of systems,
products and services that are essentially interactive in nature. Multimedia
standards, storage and interface technologies, tools and applications are evolving
at a frenetic pace. Thus, the content side of the information revolution is now in a
position to take advantage of the rapid growth of broadband networks that are
making a wide range of new business applications possible. Such applications are
starting to emerge in all of the targeted sectors.
Knowledge Management

This is a business concept that includes concerted, coordinated and deliberate
efforts to maximise an organisation’s performance by creating, capturing, sharing
and leveraging knowledge from internal and external sources.

Extensible Markup Language (XML) is a metadata language widely used as the
basis for knowledge management in a variety of business applications. A growing
set of XML-based languages is being developed to meet the particular needs of
specific business sectors (e.g. automotive sector, financial reporting).



4.    Current State of ICT in the Manufacturing Sector

The role of ICT in this sector is especially important in South Africa for several
reasons:


     It is the major sector in the economy.
     Up to five years ago, reliable research put the overall amount spent on ICT by
     South African manufacturing firms at about 1%, compared with levels of about
     4% in the developed world.
     The dti has tabled a substantial proposal for a broadened industrial strategy,
     emphasising knowledge-based products and services.

In 1997 this sector accounted for 40% of all computer users, covering a wide
diversity of applications. It constitutes 20% of the total ICT market, making it the
largest industry sector in 1996. Table 2 shows the number of manufacturing
establishments.

The high growth in vendor revenues is due to the widespread adoption of
client/server ERP packages, most notably SAP R/3, as well as EDI (electronic
data interchange). There are only 17 PCs per 100 sector employees.

A survey of several hundred South African firms confirmed concerns about the
application of ICT in the sector. Products developed for sophisticated users in the
developed world are being imported into South Africa, with little or no economic
benefits accruing to the country due to the lack of appropriate skills transfer.
According to research conducted by BMI-Tech, the national installed base of
computers as of December 1998 in the manufacturing sector was as follows:

Mainframes -        10
Midrange   -        6 000
PCs        -        300 000

Of this installed base, 150 000 PCs were Internet-enabled. The value of
transactions conducted (Internet and non-Internet) was R6 000 million, the
majority of which were non-Internet, i.e. they took place over value-added
networks using electronic data interchange (EDI) standards. Most of the EDI
payments are also financially related and not business-related.

Manufacturing is clearly behind in this area. As stated above, a reliable estimate
put the amount spent by the manufacturing sector in this country on IT at 1% of
turnover, compared with a figure of 4% in Europe at the time. There is a definite
need to exploit the new information technologies better in this sector if it is to
become internationally competitive.
Table 2: Number of manufacturing establishments

                                 Sector                         Number of
                                                              establishments
                                                                as at 1996
      Food manufacturing                                      1 970
      Beverages manufacturing                                 221
      Textiles manufacturing                                  682
      Clothing manufacturing                                  1 587
      Leather manufacturing                                   153
      Wood and wood products manufacturing                    1 315
      Furniture manufacturing                                 1 562
      Paper and paper products manufacturing                  436
      Printing and publishing                                 2 015
      Chemicals manufacturing                                 1 003
      Rubber products manufacturing                           199
      Plastic products manufacturing                          1 072
      Other non-metallic mineral products manufacturing       1 351
      Basic iron and steel manufacturing                      145
      Non-ferrous basic metals manufacturing                  110
      Metal products manufacturing                            4 091
      Machinery manufacturing                                 2 899
      Office and accounting machinery manufacturing           142
      Electrical machinery manufacturing                      1 071
      Motor vehicles manufacturing                            1 163
      Transport equipment manufacturing                       261
      Footwear                                                257
      Professional and scientific measuring and controlling   405
      Other manufacturing                                     1 184
      Total                                                   2 5294
5.     Gaps or Issues to be Addressed3

5.1. e-readiness of South Africa

ICT is a key weapon in the war against world poverty. Properly used, it has huge
potential to empower people in developing countries to overcome development
obstacles and achieve economic viability and independence. World leaders in
government, business and society are considering how best to harness the power
of ICT for development. Current thinking on the topic often frames the discussion
in terms of "e-readiness", or how ready a country is to gain the benefits offered by
ICT generally in terms of policy, infrastructure and ground-level initiatives.

There are various different e-readiness methodologies, but the two most
comprehensive are those of McConnel International and Pyramid Research (see
table below).




3 Adapted from: “ICT Diffusion and Applications in Eight Industry Sectors in South Africa:
     Overview and Synthesis of Main Findings”, 2002.
5.2. Cost, Availability and Reliability of Telecommunications Infrastructure

The single most important factor that influences the use of ICT as an business
enabler is the high cost and availability of telecommunications infrastructure. It is
seen as a major cause of competitive disadvantage in a globalising world and it is
SMMEs and rural communities that are mostly affected by this.
5.3. Training

There is a need for increased government involvement in either subsidising
training, promoting training more explicitly, or motivating the Sector Education and
Training Authorities (SETAs) to provide more ICT training.

It is believed that industry associations or other business groupings will be able to
provide better and more relevant ICT training. Courses that were targeted at the
realities in a sector would be far more useful than generic training, which is often
regarded as expensive and over-emphasised.

5.4. Raising Awareness

There is a need for greater public awareness about the benefits of ICT and the
integral links with other sectors. The task of raising awareness of the potential
benefits of ICT rests with all three major role-players, namely:


   The industry sectors themselves.
   The government.
   The ICT sector.

5.5. Information Flows and Common Standards

There is a need to integrate information flows between the different players in the
value chain. The development of common data and transaction standards in the
value chain is very important. This will allow the effective exploitation of business-
to-business and business-to-government e-commerce.

5.6. Unbiased advice and expertise

There is a need to provide appropriate services to SMMEs, who often find
themselves in the position of not having the skills or money to select and install
suitable systems and very often get advice from suppliers that is not necessarily in
the interests of the company.
5.7. Collaboration between the ICT Sector and Other Sectors

If the ICT industry were able to form links at the sector level, the spin-offs could be
considerable. This is of extreme importance for the biotechnology industry due to
its huge dependence on ICT.

5.8. Reducing the “Cost of Ownership” of ICT Solutions

There is an opportunity to develop product and financing innovations that are more
suitable to the needs of South African companies, which are being forced to settle
for the solutions of developed countries, even where such solutions are
inappropriate. The problems are multi-faceted and need to be tackled by cross-
disciplinary teams.

5.9. Incentive Schemes

There is a need to accelerate the use of ICT. Incentives such as tax breaks,
write-offs and import offsets may be a way of increasing the use of ICT. It is also
important to examine why the current incentive schemes are not working.
6.   Recommendations

                                            Industry Se ctors

          Acce ss                             ICT Adoption                            HRD


     Adv ance d            Adv ance d           Adv ance d                               Cle ane r
                                                                       Logistics
     M ate rials           Products             Production                              Production




                                        ICT Ne twork of Exce lle nce


              Industry Knowle dge                                         Industry Knowle dge
                    Sharing                                                  Re positorie s

                                              R+D Coordination

                    Industry/Gov                                          Be nchmarking/
                     Partne rship                                           M onitoring




                                                                                                      Technology Transfer
                                Inte llige nt
                                                                 Adv ance d
                               Syste ms and
                                                                E-comme rce
                                 Robotics

         Adv ance d
         Busine ss                                                                    Inte rface s/
          Syste ms                                                                     Le arning

                                        Adv ance d Computing Lab
                                                                                    M onitoring &
        Collaborativ e
                                                                                      Se nsing
        Te chnologie s
                                                                                    Te chnology

                                                             Syste ms and
                                    Simulation and
                                                             Information
                                      M ode ling
                                                              Standards




                                                 ICT Te chnologie s




Figure 7: The ICT in manufacturing framework

The manufacturing sector consists of a large number of companies in different
industries and sub-sectors, with different levels of ICT usage. The challenge is to
propose recommendations that will have a positive impact on each of these
manufacturing companies. In order to do this, a framework was developed
(Figure 7) and the concept was tested with various people from government
departments, industry and TEIs, and with international experts.
The ICT in manufacturing framework consists of four main areas:


   ICT diffusion – Responsible for SMME development and the diffusion of ICT
   technology.
   ICT in Manufacturing Innovation Network (ICTMIN) – Responsible for
   coordination and knowledge management.
   Advanced computing – Responsible for R&D.
   Grid manufacturing.

It is recommended that an ICT in Manufacturing Innovation Network (ICTMIN) be
created, with a small core team that will use the framework to coordinate and
facilitate activities within the framework, utilising the resources of the network.

The ICTMIN will be a non-exclusive multi-stakeholder network, with
representatives from government, industry, TEIs and other relevant organisations
and associations. Further reference will be made to the ICTMIN and its functions
in the implementation section.

6.1. ICT Diffusion in the Manufacturing Sector


         SMME and Industry Dev elopment


  NAM AC /      CSIR                          GODISA       ISETT /SETA
   BRAIN                                                                                                Adv anced or High Te ch Industry




               Technology Transfe r
                   Programme




   High-te ch Solutions for Low-te ch Implementation                                             High-tech Solutions for High-tech Imple mentation
                          Coordination of Implementation




                                                                                                                           Coordination of Implementation




                                                                     ICT Network of Excellence




Figure 8: ICT diffusion model
         “ICT diffusion is not about the supply of technology, but the management of
         information”
                                                                    Johann Eloff - Sasol


In an attempt to address the large diversity in ICT usage in manufacturing, a
diffusion model (Figure 8) is proposed that will cater for both the leaders and
laggards in ICT usage. The proposed model consists of two implementation
pathways:


   High-tech solutions for high-tech implementation.
   High-tech solutions for low-tech implementation.

The high-tech solutions for high-tech implementation will focus on the diffusion of
advanced computing research solutions to manufacturing industries that are
already using very advanced computing solutions. This will typically consist of
diffusing new advances in simulation and modelling techniques to an industry or
company that is already making use of the technology.

The high-tech solutions for low-tech implementation will focus on the diffusion of
existing technologies into the manufacturing sector. The primary focus or target
will be SMMEs. Various programmes already exist, as part of initiatives by the dti,
to help facilitate the transfer of technology to SMMEs. These programmes have
already achieved great success and are properly resourced, and it is
recommended that they be used as vehicles of implementation.

The stimulation of South African manufacturing SMMEs must be part of an
integrated strategy. A comprehensive strategy should entail the delivery of both a
physical and a virtual infrastructure for the support of both generic and technology-
specific products and services. Training, finance and technology are seen as
important factors in promoting the success of SMMEs, but are not always
accessible to them. There has never been a greater opportunity to harness the
Internet as the primary vehicle for the distribution of information/advice and
support amongst South African SMMEs.

There is clearly much to be done if South African SMMEs are to embrace the
challenges offered by ICT and enter the global digital economy. Companies that
are already trading electronically possess a significant competitive advantage, and
new entrants to this medium will have a much harder job still to compete in order
to grow successful businesses within the new economy.

As mentioned earlier in this section of the report, there are a few key factors that
have an impact on ICT diffusion. It is recommended that the following three
factors be addressed:


   Access.
   ICT adoption/usage.
   HR development.

6.1.1.    Access

A competitive telecommunications environment is essential for a country that
wants to compete in the new economy. According to the dti diffusion study, there
is little doubt that the present restricted competitive environment is damaging the
ability of certain sectors to compete. It further argues that there are a number of
innovative technologies that could be rapidly deployed to improve service levels in
particular circumstances. Innovation is currently being stifled through regulation.

Access to cost-effective, reliable telecommunications infrastructure was cited by all
sectors, across the full range of company sizes, as the single most important
impediment to ICT diffusion within each sector. It is seen as a major cause of
competitive disadvantage in a globalising world.

It is recommended that the ICTMIN work very closely with the Link Centre, which
was responsible for the development of the “Integrated Framework for Universal
Access and Service”.       The Link Centre was also responsible for the
implementation of various multi-purpose telecentres in rural areas.

Further possibilities need to be investigated regarding public-private partnerships
in supplying access to infrastructure, hardware, software and training. The
possibility of providing bundled packages that include ADSL, software, hardware
and training at subsidised rates could be investigated.
6.1.2.    ICT Adoption/Usage

Experience has shown that there are six stages in the adoption by SMMEs of
e-business. All SMMEs can be placed at one of the stages as a representation of
their level of e-adoption. Each stage comes with its own opportunities, but also
with a series of barriers to overcome before the SMME can progress to the
following stage.

Government can promote the adoption of e-business among SMMEs by creating
an enabling environment at each stage to facilitate the movement of SMMEs from
one stage to the next. Therefore, there is a relation between the extent to which
SMMEs can progress and the support available to them at every stage. These
critical stages are illustrated by the e-adoption ladder below.




                                                                                    E-Business
                                                      on
                                                  pti
                                         A   do                        E-Commerce
                                     ICT
                                 E
                          S   MM
                                                           Internet/
                                                             Web


                                        Connectivity


                Applications


 Awareness



Figure 9: e-adoption ladder, modified from the Cisco Framework

In essence, the purpose of the strategy is to drive SMMEs further up the ladder by
creating a supportive and enabling environment. Industry recommends that we
should investigate non-bureaucratic ways of creating incentives for SMMEs to
adopt technology in order to move to the next stage. It is also recommended that
the impact and relevance of the incentive schemes should be measured and
reviewed on a yearly basis.
                     Stage Objective                               Key consideration
1. Awareness                                                  Identifying, highlighting and
SMMEs becoming aware of the benefits that ICT has             showing the opportunities ICT
brought to other businesses and becoming increasingly         provides in the local economic
motivated to understand the extent to which their own         context
businesses could benefit.                                     Potential barriers to
                                                              understanding and acceptance
                                                              Inputs to overcoming the barriers
                                                              Availability of infrastructure and
                                                              support
2. Applications                                               Potential barriers to adoption of
SMMEs using basic applications, such as word                  applications usage
processing and spreadsheeting, thereby covering basic         Inputs to overcoming the barriers
office functions without constant recreation of
documents, but saving and reusing data. Over time, the
SMME will begin to invest in more complex applications,
such as databases.
3. Connectivity/e-mail                                        Barriers to reaching this stage
SMMEs connected to the web and in e-mail contact with         Inputs to overcoming the barriers
customers, partners and suppliers.
4. Internet                                                   Barriers to reaching this stage
SMMEs with credible and effective websites, feeling the       Inputs to overcoming the barriers
commercial benefits and beginning to relate the power
of the Internet to their business potential.
5. e-commerce                                                 Barriers to reaching this stage
SMMEs reshaping their business models to receive and          Inputs to overcoming the barriers
service orders that are taken over the web, and trading
more globally at a significantly higher level.
6. e-business                                                 Barriers to reaching this stage
Significant investment by SMMEs in reorganising their
business around the web and the development of
sophisticated quality systems, the priority of which is the
successful growth and delivery of electronic business.
To fully embrace e-business, SMMEs need to take one           Inputs to overcoming the barriers
more radical step from the previous stage, namely
accepting payment over the web. This step opens the
SMME up to global trading with all the added
complexities of international law and the logistical
demands of overseas distribution.
6.1.3.    Human Resource (HR) Development

To address the shortfall of ICT skills in the country, a Youth Internship Programme
was created as part of the government’s ICT framework, developed through the
SAITIS Project.

The Youth Internship Programme (YIP) provides learners with the opportunity to
be trained and thereafter to be given the opportunity of gaining practical on-the-job
work experience. Internships have typically worked extremely effectively in the
accounting and legal professions, with graduates of the scheme achieving the
required academic qualification and thereafter writing an industry examination,
which allows them to practice the profession.

It is recommended that a very close relationship be established with ISETT, which
is managing the YIP programme. The manufacturing sector has specific training
and skills needs for ICT professionals. These needs can be broken into two types
of skills development:


   Undergraduate training focusing on basic ICT skills.
   Post-graduate training focusing on training in advanced computing.

It is necessary to develop an integrated strategy for the creation of relevant ICT
skills for the manufacturing sector, with inputs from industry, TEIs and the SETAs.
Building on the already successful YIP programme could have a significant impact
on the development of relevant skills for the manufacturing sector in the short
term.

It was strongly emphasised by industry that active participation and leadership (by
industry) is needed in the strategy and design of training programmes and
curriculums, due to the current mismatch of skills and industry needs.

6.2. ICT in Manufacturing Innovation Network (ICTMIN)

As indicated earlier, it is recommended that the ICTMIN should be a non-exclusive
multi-stakeholder network with representatives from government, industry, TEIs
and other relevant organisations and associations.
The main functions of the ICTMIN will as follows (Figure 10):


      Facilitate interaction between government, industry, research organisations
      and other relevant entities.
      Create knowledge repositories and facilitate knowledge transfer from and to
      the manufacturing sector.
      Fund and coordinate research and implementation activities in manufacturing
      Benchmark/Monitor.




                                                                                                                  Implementation Coordination




                                                                                                                                                       Kn
                                                                                                                      r                                     ow
                                                                                                           n   s fe                                              le d
                                                                                                                                                                        ge
                                                                                                  e   T ra                                                                   Tra
                                                                                               dg                                                                                  ns




                                                                                                                                                                                                                                                      C u lt u re / C ra f t s
                                                                                        w le                                                                                            fe r




                                                                                                                                                                                                                                                                                                   A g ri c u lt u r e
                                                                              K    no




                                                                                                                                                                                                                                                                                 C lo t h in g
                  G o v e rn m e n t C o o rd in a t i o n




                                                                                                                                                                                                                                                                                  T e x t ile /
  D PS A



           DST




                                                                                                                                                                                                             In d u s t ry C o o rd i n a t io n

                                                                                                                          ICT Network of Excellence




                                                                                                                                                                                                                                                                                                   A u tom otiv e
                                                                                                                                                                                                                                                                                 C h e m ic a l/
                                                                                                                                                                                                                                                   M a t e ri a ls


                                                                                                                                                                                                                                                                                  B io t e c h
                                                                                                                                                                                                                                                    M e t a ls /
  D oC



           D TI




                                                             Kn
                                                                  ow
                                                                       le d                                                                                                                           fe r
                                                                              ge
                                                                                   Tra                                                                                                      ra   ns
                                                                                         ns                                                                                              eT
                                                                                               fe r                                                                                 dg
                                                                                                                                                                       o     w le
                                                                                                                                                                    Kn

                                                                                                                              R+D Coordination




                                                                                                                           CSIR               TEI's



                                                                                                                                            Service
                                                                                                                          Telkom
                                                                                                                                           Providers




Figure 10: Main functions of ICTMIN
6.2.1.    Government/Industry/Research Partnership

Due to the fragmentation of ICT initiatives and the dilution of the impact, it is
recommended that there should be strong coordination between government
policy and regulation, industry needs, research direction and implementation.

It is further recommended that an Advisory Board should be established with
representatives from government, industry, research organisations and
implementation agencies. The Advisory Board will be responsible for:


   Strategic direction for R&D.
   Strategic direction of ICT diffusion.
   Making sure that the all initiatives are relevant and have an impact in the
   manufacturing sector.

6.2.2.    Knowledge Repositories and Knowledge Sharing

The national Foresight studies on manufacturing and materials indicated the
urgent need for industry-related information systems, with relevant up-to-date
information. This need was further echoed by various workshops that were held
with stakeholders in various industries.

The dti, together with the CSIR, is currently working on a project to create a
dedicated knowledge repository for the chemical industry and will be expanding
the project to other sectors.

It is recommended that this initiative be supported and expanded to include other
industry sectors.

Large businesses in the manufacturing sector also indicated that they have a lot of
knowledge regarding the implementation and development of systems that they
would like to share with smaller businesses, since this is not their core business,
but could be of some value to smaller businesses. One chemical company is also
prepared to share information and learning on its SMME procurement systems,
since it could be used as a model for other companies to adopt. It is
recommended that the ICTMIN facilitate monthly knowledge-transfer seminars
between companies in the manufacturing sector.
6.2.3.        Funding and coordination of research activities in manufacturing




                                               FUNDING




          Knowledge
                                                                                Benchmarking/
         Repositories &
                                                                                 Monitoring
            Sharing


                                            ICT Network of
                                              Excellence




    TEI's            Gov Dept

                                            Advisory Board                      Implementation

   Industry           Other




                                              Competitive
                                            Bidding for R+D
                                               Projects




                                             R+D Network




Figure 11: Funding and coordination of R&D activities

The ICTMIN will manage all funding for ICT in manufacturing. The funding will be
spread across the following activities:


   Running and HR cost of a small core team that will manage the ICTMIN on
   behalf of the Advisory Board.
   A yearly benchmarking report on ICT diffusion in the manufacturing sector.
   Running costs of the various industry knowledge repositories, as well as the
   monthly knowledge-transfer seminars for the industry.
   Implementation and R&D projects.
It is recommended that R&D projects be put up for competitive bidding, due to the
large number of fragmented R&D entities. A panel of impartial evaluators will
evaluate each proposal based on a set of criteria. Projects will be awarded within
30 days of the close of a proposal.

6.2.4.    Benchmarking/Monitoring

It is recommended that the ICT diffusion studies be done on a yearly basis, using
international indicators in order to benchmark South African and other industries
with each other.

It is also recommended that projects and their impact be monitored on a regular
basis and that any learning be fed back to the Advisory Group.

6.3. Advanced Computing

The following possible research areas have been identified the manufacturing
sector:


   Advanced e-commerce.
   Human-machine interfaces, including linguistics.
   Monitoring and sensing technology.
   Systems and information standards.
   Simulation and modelling, including AI, expert systems and decision-support
   systems.
   Collaborative technologies.
   Advanced business systems based on open source software.
   Intelligent systems and robotics.
   Bioinformatics.

It is recommended that this area be further investigated and that there should be
consultation with national and international experts. Further discussion and
consultation is also needed with research organisations in order to assess South
African competences in the above areas.
The possibility of advanced simulation laboratories located across the country also
needs to be investigated, and best practice and experience from other countries
such as India need to be studied.

6.4. Grid Manufacturing

“The Grid” is a catch-all term used to convey what the Internet will become. It can
be described in two simple statements:

Computing and connectivity become a utility-like service

A user plugs into the wall not only to get the connectivity that a phone line or other
telecoms link gives, but also to get access to (distributed) computing power,
critically, with the robustness and ubiquity that most of us have come to expect
from electric power.

Applications, software and storage become services offered over “The Grid”

At its simplest, users will access the data and functionality previously located on
their PC or on a LAN server over the Grid instead. A new class of software-based
services will emerge, ranging from something as basic as remote data back-up to
a global personal tracker that automatically informs product planners about a
shipment delays, no matter where they are or what device (PC, pager, wireless
phone, etc.) they have access to.

The question is what impact “The Grid” will have on the way manufacturing is done
in the future, and what systems would be needed to support the manufacturing
sector when “The Grid” becomes reality.

There is an urgent need to address the future ICT needs of manufacturers today
by starting to invest in technologies that will narrow the digital divide. The
development of a national open-source “Manufacturing Grid” is crucial for the
survival of mostly SMME manufacturers in South Africa. This project hopes to
address the market, economic and technological needs that have been identified
through various workshops and interviews.
7.                        Impact and Relevance to Industry4

                                                Short To Medium Term
                              Technology Focus Are a                                                                     Se ctor Focus Are a




                                   Advanced
                                   Materials                                                                                 Automotive

                                      S16                                                                                     S1,S2,S3

                                        Advanced




                                                                                                                     r
                                                                                                                  yea
                                        Materials
                                                              R1




                                                                                                                n/
                                                                                                            i io
                                                                ml




                                                                                                           mll
                                                                 i lio

                                   Advanced




                                                                                                        R3
                                                                      n/y
                                                                                                                              Chemicals
                                   Products




                                                                                                       ar
                                                                         ear




                                                                                                    /ye
                                                     R




                                   S17,S18
                                                        2m




                                                                                                  on
                                                                                                                              S4,S5,S6




                                                                                              illi
                                                          illi




                                                                                             m
     Other Technologies




                                                              on




                                                                                               3
                                                                /ye




                                                                                                                                               Other Sectors
                                                                                            R
                                                                   ar




                                   Advanced          R 2 mill/pa                                   R 3 mill/pa                 Textiles/
                                                                                  ICT
                                   Production                                                                                  Clothing
                                                               ar
                                                            /ye




                                   S19,S20                                                                                    S10,S11,S12
                                                                                          R
                                                          on




                                                                                        3m
                                                     milli




                                                                              r




                                                                                          illi
                                                                           yea
                                                    1




                                                                                              on
                                                 R




                                                                                                R3
                                                                         n/




                                                                                                /ye
                                                                     i io




                                                                                                   ar
                                                                    mll




                                                                                                    ml




                                    Logistics                                                                               Culture/Crafts
                                                                                                      i lio
                                                                 R1




                                                                                                           n/y




                                       S21                                                                                    S7,S8,S9
                                                                                                              ear




                                    Cleaner                                                                                    Metals/
                                   Production                                                                                  Minerals

                                     S22                                                                                      S13,S14,S15




Figure 12: Summary of short to medium-term industry projects




4         Some Information has been extracted from “ICT Diffusion and ICT Applications in Usage
          Sectors”, March 2002.
                                        Medium To Long Term
                       Technology Focus Area                                                         Sector Focus Area




                            Advanced
                            Materials                                                                     Automotive

                            M16,M17                                                                         M1,M2

                                Advanced




                                                                                         ar
                                                                                      /ye
                                                  R7
                                Materials




                                                                                  lion
                                                    mil




                                                                               mil
                                                       lion




                                                                            R3
                            Advanced
                                                           /ye

                                                                                                          Chemicals
                            Products
                                                              ar




                                                                                            ar
                                                                                         /ye
                                                                                                            M3,M4
                                                R




                        M18,M19,M20,M21




                                                                                       on
                                                  9m




                                                                                   illi
                                                    illi
  Other Technologies




                                                                                 4m
                                                        on




                                                                                                                          Other Sectors
                                                          /ye




                                                                               R
                                                             ar




                           Advanced          R 8 mill/pa                            R 7 mill/pa            Textiles/
                                                                      ICT
                           Production                                                                      Clothing
                                                       ar
                                                    /ye




                        M22,M23,M24,M25,                                                                  M8,M9,M10,
                                                                               R
                                                  on




                                                                            4m




                          M26,M27,M28                                                                    M11,M12,M13
                                              illi




                                                                              illi
                                            4m




                                                                 ar




                                                                                  on
                                                              /ye




                                                                                    /ye
                                         R




                                                                                      R4
                                                           ion




                                                                                       ar




                                                                                                         Culture/Crafts
                                                       mill




                            Logistics
                                                                                          mil
                                                                                             lion
                                                     R2




                        M29,M30,M31,M32                                                                     M5,M6,M7
                                                                                                 /yea
                                                                                                     r




                            Cleaner                                                                        Metals/
                           Production                                                                      Minerals

                            M33,M34                                                                        M14,M15




Figure 13: Summary of medium to long-term industry projects

Details of the relevant projects are given below.
7.1. Automotive

The manufacturer of motor vehicles includes vehicles for the transport of people
and goods, as well as tractors for semi-trailers, and engines for all of these. The
vehicle components sector includes the manufacture of parts and accessories for
motor vehicles and their engines (including electrical equipment) and the
manufacture of vehicle bodies and trailers.

Some basic 1999 statistics show that the automotive sector is a very substantial
sector in South Africa, employing 250 000 people, having projected revenues of
$US20 bn and ranking 20th in the world.

The international automotive sector is undergoing profound changes in two distinct
areas: supplier and customer collaboration, and telematics. ICT is central to both
thrusts and the Internet is the core technology that the industry is using to meet
these needs. For instance, industry analysts expect that, in the US at least, within
the next couple of years upwards of 70% of firms will respond to bids and requests
for quotation on-line.

The South African automotive industry must meet the challenge to become and
thereafter remain a competitive production base within the global automotive
industry and, equally importantly, learn how to enhance South Africa’s
attractiveness as a foreign investment destination.

Table 3: Proposed automotive projects

   Legend                  Description                     Time Period       Notes
            ICT diffusion, including incentive
            schemes and infrastructure solutions                         Focus on
            regarding connectivity for companies in     Short term –     SMME
   S1       industry                                    Medium term      development

            ICT Skills Development and Internship       Short term –     Relevant ICT
   S2       programme                                   Medium term      skills
            Portal or knowledge repository for the
            automotive industry, hosting the
            following type of information: Expertise
            Register, Industry-specific data,           Short term –
   S3       econometrics, policy and regulatory, etc.   Medium term
            Advanced computing to improve the
            following areas: product design,             Medium term –
   M1       production technologies and logistics        Long term
            Automotive accessories technology
            support. All indications are that cars are
            coming out with advanced accessories
            such as digital maps, wireless internet
            connectivity, etc. Stimulation of the
            industry is needed to create service
            providers for the advanced accessories
            technologies.                                Medium term –
   M2                                                    Long term


7.2. Chemical

The South African chemical industry constitutes 25% of the manufacturing GDP,
which in turn constitutes 25% of the total national GDP. It is therefore an
important sector, and its fortunes, or lack thereof, have a major impact on the
overall performance of the country’s economy.

Supply chain management, information systems and manufacturing and
operations have become of increasing importance due to the fierce competition in
the industry.

South Africa should be responding to these trends and drivers as follows:


   Improving operations through better management of the supply chain.
   Improving the efficiency of use and reuse of raw material for environmental
   sustainability.
   Balancing environmental and economic considerations.
   Reviewing R&D with short-, medium- and long-term horizons to leverage the
   capabilities of government, academia and the chemical industry through
   targeted collaborative efforts.
Table 4: Proposed projects for chemicals

     Legend               Description            Time Period              Notes
               ICT diffusion in the chemical
               Industry, including incentive
               schemes and infrastructure
               solutions regarding               Short term –   Focus on SMME
   S4          connectivity                      Medium term    development
               ICT Skills Development and                       Relevant ICT skills for the
               Internship programme for the      Short term –   chemical industry as
   S5          chemical Industry                 Medium term    indicated by Sasol
               Portal or knowledge repository
               for the chemical industry,
               hosting the following type of
               information: Expertise
               Register, industry-specific
               data, econometrics, policy and    Short term –   Already exist but need
   S6          regulatory, etc.                  Medium term    some extension of scope
               Advanced computing in the
               following areas: simulation and
               modelling from molecular level    Medium term
   M3          to process level                  –Long term

               Grid manufacturing (“smart
   M4          plants”)                          Long term


7.3. Cultural/Crafts

The scope covers the craft industry as a manufacturing component of the broader
cultural industry. This would include the rural and urban craft producers, as well as
their interface with the retail market and enabling technologies in the sector.

Considering the low technology base of the craft industry and the high labour
intensity of the sector, our reference to an advanced manufacturing strategy is
relative, and in context, to the existing state of the industry.

The high non-value-added activities along the value chain, together with the poor
technological applications and inadequate supply chain management, reduce the
sector’s commercial viability and economic sustainability. The craft industry is
highly fragmented and characterised by informal systems and processes operating
at subsistence levels. The following problems exist:


   Lack of profitable execution of orders.
   Uncoordinated approach and improper communication networks – inability to
   intercept opportunities.
   Unreliable information database of producers.
   Weak global links.

Table 5: Proposed projects for cultural/crafts

        Legend               Description                 Time Period           Notes
                 ICT diffusion, including incentive
                 schemes and infrastructure              Short term -   Focus on SMME
   S7            solutions regarding connectivity        Medium term    development

                 ICT Skills Development and              Short term -
   S8            Internship programme                    Medium term    Relevant ICT skills
                 Portal or knowledge repository for
                 the craft/cultural industry, hosting
                 the following type of information:
                 Expertise Register, industry-
                 specific data, econometrics, policy     Short term -
   S9            and regulatory, etc.                    Medium term
                 Advanced computing in the
                 following areas: e-commerce and
                 B2B technologies. High-tech
                 solutions for low-tech                  Medium term
   M5            implementation                          - Long term

                 Tele-manufacturing technologies
   M6            for advanced product design             Long term
                 Joint initiative with the Indian
                 Department of Science and
                 Technology to develop a grid
                 manufacturing approach for both
                 countries’ craft industries in order
                 to reach economies of scale and
                 still keep the authenticity and value   Long term
   M7            high                                    (3 years)


7.4. Textiles/Clothing

The clothing manufacturing industry consists of all activities directly involved in the
manufacture of clothing and related articles. Clothing industry sales reached R11
billion in 1999 and have declined slightly since then. The industry currently
employs about 135 000 people.
In developed countries, one of the questions being asked concerns the effect that
ICT in general, and in particular Business-to-Consumer (B2C) or Business-to-
Business (B2B) e-commerce, will have on the clothing sector.

The large number of SME-sized enterprises, many of whom are small cut, make
and trim (CMT) operators, is an important consideration that impacts on the
diffusion of ICT in this sector.

The clothing industry is widely dispersed throughout Europe, but its contribution to
GDP is only significant in a few countries. Italy is a leader in the clothing and
textiles pipeline, and here this industry has been at the forefront of embracing ICT
in its design and production functions, as well as in demand-supply chain
integration.

Quick response (QR) is one of the predominant strategic issues in the Italian
clothing industry, with a number of large retail chains having developed QR
systems with their major clothing manufacturers.

Table 6: Proposed projects for textiles/clothing

       Legend                     Description                   Time Period       Notes
                  ICT diffusion, including incentive
                  schemes and infrastructure solutions                         Focus on
                  regarding connectivity for companies in       Short term –   SMME
  S10             the industry                                  Medium term    development

                  ICT Skills Development and Internship         Short term –   Relevant ICT
  S11             programme                                     Medium term    skills
                  Portal or knowledge repository for the
                  textiles and clothing industry, hosting the
                  following type of information: Expertise
                  Register, industry-specific data,             Short term –   Expansion of
  S12             econometrics, policy and regulatory, etc.     Medium term    Texweb
                  Advanced computing in the following
                  areas: expert systems, decision-support
                  systems and advance intelligent               Medium term
  M8              databases and AI                              – Long term

                  Tele-manufacturing technologies for
  M9              advanced product design                       Long term
                 Joint Initiative with the Indian Department
                 of Science and Technology to develop a
                 grid manufacturing approach for both          Long term
  M10            countries                                     (3 years)
                 Advanced e-commerce technologies for
                 customised/
  M11            personalised manufacturing                    Long term
                 Development of intelligent systems and
  M12            robotics                                      Long term
                 Advanced manufacturing systems to
                 increase responsiveness
  M13


7.5. Metals/Minerals

The dominant producer of platinum group metals (PGM) is South Africa. It is even
more dominant in its share of known reserves. This situation also means that
South Africa’s economy is the one most directly affected by changes in the PGM
market.

Minerals are an integral part of South Africa's economy, with gold, PGM and coal
being the leading products.

Gold has traditionally been the dominant minerals industry, with PGM a distant
second. (Coal is at a similar level.) Based on statistical data from 1980 to 1999,
however, gold production has declined by more than 25% since 1980 and PGM
production has increased by more than 70%. In 1996 the gold industry accounted
for 64% of employment in the minerals sector, i.e. a decline of 29% since 1980.
Also in 1996, the PGM industry accounted for 16,3% of employment in the
minerals sector, which is an increase of 17% since 1980. The export value of gold
has increased by 58% (in nominal terms) since 1980, whereas the export values of
PGM have grown 887% during the same period (1996). Clearly, in South Africa,
the gold and PGM industries are going in different directions.

The capital-intensive nature of mining means that large companies (usually large
multi-nationals) dominate the industry. ICT usage has become very sophisticated
and specialised in the core activities of the companies, with applications such as:


   Sub-surface mapping using geophysical techniques such as seismic waves.
   Ore reserve calculations using statistical techniques for forecasting, based on
   limited data.
   Real-time process control applications to manage refinery operations.
   Aerial surveys using remote-sensing devices.
   3-D plots of mining operations.
   Programs designed to calculate the stresses invoked when mining ore at depth
   and under high pressure (area of rock mechanics).

A very considerable resource base has been brought to bear on these problems
and this effort continues, often in collaboration with other mining companies or
associations.

Table 7: Proposed projects for metals/minerals

         Legend              Description             Time Period         Notes
                    ICT diffusion, including                        Focus on SMME
                    incentive schemes and                           development (not
                    infrastructure solutions        Short term –    sure if it is
   S13              regarding connectivity          Medium term     relevant)
                                                                    Relevant ICT skills
                                                                    for the
                    ICT Skills Development and      Short term –    metals/minerals
   S14              Internship programme            Medium term     industry
                    Portal or knowledge
                    repository for the
                    metals/mineral industry,
                    hosting the following type of
                    information: Expertise
                    Register, industry specific
                    data, econometrics, policy      Short term -
   S15              and regulatory, etc.            Medium term
                    Advanced computing in the
                    following areas: simulation
                    and modelling from molecular
                    level to process level, which
                    will aid product design,        Medium term –
   M14              production and logistics        Long term
                    Tele-manufacturing
                    technologies for advanced
   M15              product design                  Long term
8.     Manufacturing Technology Development

8.1. Advanced Materials

Table 8: Proposed projects for advanced materials

       Legend                    Description                        Time Period           Notes
                 Portal or knowledge repository for
                 advanced materials, hosting the following
                 type of information: Expertise Register,
                 tech-specific data, econometrics, foresight,     Short term –
 S16             policies, regulations, etc.                      Medium term
                 Use of simulation and modelling to study
                 physical properties; as a result of nano-
                 manipulation, looking at the macro effects       Medium Term –
 M16                                                               Long term
                 Identification and development of smart
                 materials as sensors which could be used         Medium – Long
 M17             in robotics and process equipment                term


8.2. Advanced Product Technologies

Table 9: Proposed projects for advanced product technologies

     Legend                   Description                       Time Period           Notes

                ICT Skills Development and Youth            Short term           Relevant ICT
 S17            Internship programme                        Medium term          skills
                Portal or knowledge repository for
                advanced product technologies, hosting
                the following type of information:
                Expertise Register, tech-specific data,     Short term –         Expansion of
 S18            econometrics, foresight reports             Medium term          current portal
                Advanced computing: simulation and          Medium term –
 M18            modelling for identified purposes           Long term
                Tele-manufacturing /collaborative           Medium term –
 M19            design technologies                         Long term
                                                            Medium term –
 M20            Grid manufacturing                          Long term
                Intelligent design and analysis advisors.
                Use of expert systems, decision
                support systems and AI for design           Medium term –
 M21            purposes                                    Long term
8.3. Advanced Production Technologies

Table 10: Proposed projects for advance production technologies

      Legend                   Description                       Time Period          Notes

                 ICT Skills Development and Youth            Short term –         Relevant ICT
  S19            Internship programme                        Medium term          skills
                 Portal or knowledge repository for
                 advanced production technologies,
                 hosting the following type of
                 information: Expertise Register, tech-
                 specific data, econometrics, Foresight      Short term –         Expansion of
  S20            reports                                     Medium term          current portal
                 Advanced computing: simulation and          Medium term –
  M22            modelling for identified purposes           Long term
                 Development of a low-cost, fully
                 integrated manufacturing system that
                 will integrate finance, design, process
                 and logistics into one system for small     Medium term –
  M23            and medium-sized manufacturers              Long term
                 Grid manufacturing development and          Medium term –
  M24            architectural design                        Long term
                 Systems and information standards,
                 including middleware for integrating        Medium term –
  M25            systems                                     Long term
                                                             Medium term –
  M26            Intelligent systems and robotics            Long term
                 Expert systems for machine or process       Medium term –
  M27            operators                                   Long term
                 Advanced automation and control             Medium term –
  M28            technologies                                Long term


8.4     Logistics Technologies

Table 11: Proposed projects for logistics technologies

        Legend                    Description                         Time Period         Notes
                  Portal or knowledge repository for logistics
                  technologies, hosting the following type of
                  information: Expertise Register, tech-
                  specific data, econometrics, foresight,
                  policies, regulations, international             Short term –
  S21             requirements                                     Medium term
                 Advanced computing: advanced simulation      Medium Term –
  M29            and modelling for identified purposes        Long term
                 Monitoring and sensing technologies for      Medium term –
  M30            the movement of goods                        Long term
                                                              Medium term –
  M31            Industry and information flow standards      Long term
                                                              Medium term –
  M32            Advanced e-commerce technologies             Long term


8.4. Cleaner Production Technologies

Table 11: Proposed projects for cleaner production technologies

        Legend                  Description                  Time Period          Notes
                  Portal or knowledge repository for
                  cleaner production technologies, hosting
                  the following type of information:
                  Expertise Register, tech-specific data,                     Expansion
                  econometrics, foresight, environmental     Short term –     of current
  S22             data reports, etc.                         Medium term      portal
                  Advanced computing: simulation and
                  modelling for identified purposes.
                  Includes both process and materials        Medium term
  M33             modelling                                  – Long term      !
                  Development of environmental
                  monitoring grid for monitoring waste and
                  pollutants in real time, mapped on a GIS
                  map. Make extensive use of existing cell
                  phone infrastructure and community         Medium term
  M34             involvement                                – Long term
9.    Implementation Plan

9.1. Alignment with Current Initiatives

Various other initiatives were discovered during the consultative process. Most of
these initiatives are very relevant to ICT in manufacturing, and continued
discussions and information-sharing between this initiative and other initiatives will
be maintained.

These initiatives are the following:


     ICT technology roadmaps (DST)
     e-Strategy Task Team (DoC)
     Universal Access (Wits Link Centre)
     YIP Programme (ISETT)
     e-Government (DPSA)
     Advanced Institute for Information and Communications Technology (DoC)
     South Africa –India Bilateral Agreement (Advanced Computing) (DST)
     NACI ICT Mission (DST)
     Technology Transfer Programmes (dti)
     Cape Information Technology Initiative (CITI).

9.2. Strategy for Implementation

Technology cycles are extremely short in ICT due to the fast paces and high level
of innovation. “Short term” typically describes one year and “long term” three
years. Due to the nature of this technology, it was decided to start the initiative
running and not to wait for the perfect implementation plan, but rather correct
direction while running. This type of approach was echoed by industry which is
concerned that planning the initiative will take too long before any benefits are
seen.
Table 13: Strategy for Implementation

         Description                         Objective                        Due Date
Continued consultation with       Cover key areas of the            1 – 18 November 2002
various stakeholders              recommendation that were
                                  neglected due to tight time
                                  constraints
Advanced computing                Investigate best practices        November 2002 – January
investigation                     worldwide, looking at the US,     2003
                                  UK, Germany and India
National Workshop for ICT in      Create a last opportunity for     February 2003
Manufacturing                     stakeholders to get involved in
                                  the initiative
Establishment of ICTMIN           Formally establish the ICTMIN     April 2003 onwards
                                  with the appointment of core
                                  people


9.3. Projects

In order to build credibility with stakeholders, it is important for the ICTMIN to
identify a few quick-win projects that will have a significant impact on the industry.
These projects were identified during the consultative process:

Table 13: Possible “quick-win” projects

  Thrusts              Projects                Impact measurement                Time-scale
ICT diffusion   Incentive schemes         Increase ICT diffusion by 10%    Short term
                Access                    Increase number of
                YIP programme             manufacturers connected to the
                                          Internet by 10%
                                          100 ICT students to be trained
                                          for the manufacturing industry
Knowledge       Creation of knowledge     Establish three sector portals   Short term
management      repositories              Facilitate monthly seminars
                Facilitation of
                knowledge transfer
Advanced        Grid manufacturing        Develop basic grid               Long term
computing                                 infrastructure

								
To top