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