Transcript An Overview of RALIS - University of Johannesburg

Ralis Report
Metal Casting Technology Station
Ralis Report
and Proposals
Findings andFindings
Proposals
Mesopartner
Dr.Jorg Meyer-Stamer
Mesopatner
Dr.Jorg Meyer
Metal Casting Technology Station
What is RALIS, or Rapid Appraisal of
Local Innovation Systems?
 A methodology to get, within a short period of time,
– an overview of the main features of a local innovation
system, or the competitiveness of a sector in a given
region
– a number of proposals for practical activities to
strengthen the local innovation system and thus
improve competitiveness
Metal Casting Technology Station (MCTS) 2/37
Main insights underlying RALIS
 Innovation is a main driver of growth and prosperity
 Innovation is driven and supported by a variety of
factors in innovation systems
 There is a highly relevant regional dimension to
innovation systems
 Territorial innovation systems tend to suffer from
– disconnection or
– fragmentation
 Connecting or de-fragmenting a territorial innovation
system helps to unleash growth potentials
 RALIS offers an answer to the question: How to do that?
Metal Casting Technology Station (MCTS) 3/37
How do we find those answers?
 Talking to stakeholders in the innovation systems
– individually (interviews)
– groupwise (miniworkshop)
• facilitating direct communication among
stakeholders on the spot
 ... using specific tools
– structured interviews
– various miniworkshop formats
Metal Casting Technology Station (MCTS) 4/37
What did we do?



=
25 face-to-face interviews (GP, WC, MP, KZN)
3 telephone interviews (GP, LIM)
5 mini-workshops (GP)
60 contacts in 6 days of fieldwork
Metal Casting Technology Station (MCTS) 5/37
Company interviews and visits
Metal Casting Technology Station (MCTS) 6/37
Miniworkshops
Metal Casting Technology Station (MCTS) 7/37
RALIS Exercise: Findings
Metal Casting Technology Station (MCTS) 8/37
The RALIS view at innovation systems:
The Four Pillar Model
Innovation
Companies
Framework
conditions
Technology
institutions
Education
institutions
Metal Casting Technology Station (MCTS) 9/37
Findings on companies: Current status
Strengths:
 The foundry industry is
currently doing well > strong
demand for foundry products
 A lot of capacity that is not
utilised
 Optimistic perception in
industry regarding ability to
compete against international
firms, including those from
China
Weaknesses:
 Process efficiency still not on par
 Limited capital expenditure
 Little need to do marketing
 Limited ambition of many
medium-sized businesses to
grow
– barriers to growth, e.g.
introduction of second shift
 Next to no strategic management
 Group think has paralysed firms
in Jhb about skills, risk etc.
Metal Casting Technology Station (MCTS) 10/37
Findings on companies: Technology and
innovation
Strengths:
 Some firms are upgrading
some equipment and
processes, especially in the
automotive parts sector
 Some firms can show really
great products
Weaknesses:
 Only some companies are under
strong competitive pressure that
forces them to constantly
upgrade
 Companies depend mainly on
suppliers and some experts for
technology transfer / innovation
 Majority of companies is
experience-based (trial and error)
rather than science-based
 Very little benchmarking
 Technology institutions are weak
or irrelevant to industry
Metal Casting Technology Station (MCTS) 11/37
Findings on companies: Collective
action
 Only in some cases is there informal collaboration
between very few companies on technical issues
 The South African Institute of Foundrymen (SAIF)
– is not very effective beyond training and, to a limited
extent, lobbying
– runs successful social events, while technical
seminars are poorly attended.
Metal Casting Technology Station (MCTS) 12/37
Findings on companies: Future
perspective
 Companies need to collaborate more to address shared
issues
– Foundries in the Western Cape need to be involved
 Companies should be more concerned with medium- and
long-term perspectives, and conduct long-term planning
– There is a good chance that the foundry industry will
consolidate to a critical mass of competitive companies
– Among the three main drivers of the industry, mining and
infrastructure look solid in the medium term, while
automotive depends on HQ decisions of OEMs and is
thus unpredictable
Metal Casting Technology Station (MCTS) 13/37
Findings on framework conditions
Positive message:
 MIDP is highly relevant for
automotive parts producers
Negative message:
 Government does not respond
adequately to the export rush
in the scrap sector
 The electrical supply problem
is a major issue for the
industry
Metal Casting Technology Station (MCTS) 14/37
Findings on training and skills (1)
 There is a shortage of skills at all levels
 There is a particular shortage of maintenance and nonfoundry staff (e.g. electricians)
 The unit standards have been draw up, but have been
waiting for approval for more than two years now
 What is available are mostly generic courses that are
not adapted to the needs of the foundry industry
Metal Casting Technology Station (MCTS) 15/37
Findings on training and skills (2)
 The foundry industry pays little attention to the attraction
of new talent
– the industry is competing for talent, and is probably
losing
– the impact of increasing global recruitment in
technical fields is not yet adequately understood
 Demand for students from higher education exists, but
supply is very limited
 Students at tertiary level suffer from formal and life skills
deficiencies
Metal Casting Technology Station (MCTS) 16/37
Findings on Metal Casting Technology
Station
 Few people in the industry are aware of the Technology
Station
 The TS is known as a training provider, not as a
technology institution
 There is a (wrong) perception that the TS targets
primarily low-end, low-tech clients
Metal Casting Technology Station (MCTS) 17/37
Myths that we encountered
Myth No. 1:
 The foundries are by and large
competitive, and can compete
internationally even without
TQM systems
Fact:
 Leading foundries in SA
understand the enormous
competitive pressure in the
world market, the need to
constantly upgrade, and to
manage processes more
consistently.
Metal Casting Technology Station (MCTS) 18/37
Myths that we encountered
Myth No. 2:
 India and China are
competitive because of low
wages and mediocre quality,
and they are particularly
competitive on small high
volume products
Fact:
 In India and China, a massive
upgrading process is
underway, and
competitiveness is
increasingly based on
technology and other factors.
Metal Casting Technology Station (MCTS) 19/37
Myths that we encountered
Myth No. 3:
 The foundry industry is a dirty
and declining industry.
Fact:
 The foundry industry in SA is
growing in terms of output.
Metal Casting Technology Station (MCTS) 20/37
Myths that we encountered
Myth No. 4:
 The skills shortage must be
addressed by government /
SETA, and formal education
will solve the skills problem
Fact:
 The skills shortage must be
addressed primarily by the
industry. MERSETA will
respond to robust proposals
by industry. The foundry
industry is an experiencebased industry, and its future
depends on its ability to
transfer the tacit knowledge of
experienced employees.
Metal Casting Technology Station (MCTS) 21/37
Myths that we encountered
Myth No. 5:
 Government is standing in the
way of a positive development
of the foundry industry
Fact:
 The foundry industry is flying
below the radar screen, for
instance in terms of
environmental issues. Certain
government initiatives, like
MIDP, are a boon for
companies in the industry.
Metal Casting Technology Station (MCTS) 22/37
Recommendations for the Technology
Station
Metal Casting Technology Station (MCTS) 23/37
Improve the focus of the Metals Casting
Technology Station
 Update the business plan to reflect findings of the
RALIS
 Target key issues in foundries:
– metallurgy,
– sand,
– core making
 Shift energy from one-on-one interaction towards oneon-many interventions
 Market the services and offerings of the MCTS better to
industry
Metal Casting Technology Station (MCTS) 24/37
Recommendations for MCTS regarding
practical training
 Undergo MERSETA training on procedures and
offerings
 Become a MERSETA accredited training provider
 Connect graduate students with industry for
research project (dissertations, etc.)
Metal Casting Technology Station (MCTS) 25/37
An excellent technology station
 Technology station to provide its services to other
provinces
 Requires additional funding and support from
Tshumisano / Department of Science and Technology,
UJ to increase its capacity
 The MCTS should become a centre of excellence in
some specific foundry related areas
 MCTS should assist other specialised centres of
excellence to be established elsewhere (with support
from Tshumisano)
Metal Casting Technology Station (MCTS) 26/37
Recommendations for SAIF
Metal Casting Technology Station (MCTS) 27/37
Strengthen the capacity of the SAIF
 Conduct a survey under members to understand
poor turn-out at technical meetings
– Adapt events to address needs of members
 Closer co-operation between SAIF and WCIF
 SAIF should become a professional body with full-time
executive and support
– In order to better lobby on issues like scrap
– To better represent the industry and its needs to
financiers, investors, government and buyers
Metal Casting Technology Station (MCTS) 28/37
Improve practical training /
apprenticeships: Tasks for SAIF
 Several firms already involved in skills development that
are willing to work with other firms and stakeholders
– Better co-ordinate and share info on available training
– Leverage existing goodwill and support further
investment
 Arrange special training courses on specific topics like costing
– Work with firms to bring in international specialists for
training
 Lobby for the development of a national skills development plan
specific to the foundry industry
 Industry should lobby with MERSETA to have the unit
standards finalised
Metal Casting Technology Station (MCTS) 29/37
Recommendations that involve
collaboration between the Technology
Station and SAIF
Metal Casting Technology Station (MCTS) 30/37
Improve practical training /
apprenticeships: Tasks for SAIF
and
MCTS
Promote better
uptake
of learnerships and vouchers

 MCTS to engage with industry and MERSETA to
organise groups for special training events.
Metal Casting Technology Station (MCTS) 31/37
Promote benchmarking practices
between firms
 SAIF / MCTS should promote benchmarking between
firms
 Technology station / Tshumisano to support
benchmarking exercise by partially funding an expert
 Present the concept of a competitiveness club at the
next SAIF technical meeting
Metal Casting Technology Station (MCTS) 32/37
Further needs for action (1)
 SAIF, MCTS and others to lobby with government on the
scrap issue and other regulatory issues
 SAIF should engage more actively in the NFTN
development process
 The industry and supporting agencies (MCTS, CSIR,
IDC, MERSETA) need to become more active in:
– technology demonstration and promotion (cleaner
production, new technology etc.)
– attracting talent into the industry at a younger age
– Using study tours to raise interest of learners
Metal Casting Technology Station (MCTS) 33/37
Further needs for action (2)
 Middle and upper management development is
receiving very little attention at the moment relating to
succession planning, strategic management, or specific
topics like costing
 MCTS to become a focal point for government support
to industry – and SAIF the focal point for industry to
government interaction
Metal Casting Technology Station (MCTS) 34/37
Conclusion and Summary: Possible
quick-win activities
 MCTS: Connect graduate students with industry for research
project (dissertations, etc.)
 SAIF: Conduct a survey under members to understand poor
turn-out at technical meetings
– Adapt events to address needs of members
 There are several firms already involved in skills development
that are willing to work with other firms and stakeholders
– Better co-ordinate and share information on available
training
– Leverage existing goodwill and support further investment
 Present the concept of a competitiveness club at the next
SAIF technical meeting
Metal Casting Technology Station (MCTS) 35/37
Thank you for your attention!
Metal Casting Technology Station (MCTS) 36/37
The RALIS Team









Shawn Cunningham
Mpho Dibakoane
Adrie El-Mohamadi
John Lawson (Cape Town)
Mpho Mabotja
Dr Jorg Meyer-Stamer
Richard Seymore-Wright
Farouk Varachia
Henning Viljoen
082 902 4200
073 888 7599
082 902 4083
083 266 8796
082 431 5441
072 466 1422
083 297 1006
082 788 4816
072 111 3996
Metal Casting Technology Station (MCTS) 37/37