ENHANCING ENTERPRISE PERFORMANCE IN THE CLOTHING AND TEXTILE INDUSTRY IN NORTHERN KWAZULU NATAL

ENHANCING ENTERPRISE PERFORMANCE IN THE CLOTHING AND TEXTILE INDUSTRY IN NORTHERN KWAZULU NATAL Presentation By ILO/Swiss Project OCTOBER 2004

THE OBJECTIVE • To demonstrate that the industry in South Africa can withstand difficult global trading conditions • To build confidence in the prospect of survival and growth, through a focussed programme of co-operative endeavour at enterprise level

THE RATIONALE • An industry too important and strategically placed to sacrifice • 120,000 jobs at stake, many in non metropolitan areas • Contributes 1.5% to GDP • Cost of creating jobs is comparatively low

THE TARGET • The toughest environment • Enterprises in Newcastle and Ladysmith

Labour Costs Werner International 2002

Productivity Coughlin, Rubin and Darga (2001) – mens casual shirt

THEOPTIONS • Two options: • Pursue slash and burn and low wage policies OR • Promote decent work, and build industry capability through skills development and world class manufacturing practices

Participants

BASELINE SURVEY • Assessments conducted in each enterprise to identify quantifiable performance improvement opportunities across the supply chain • Maturity of best operating practices assessed • Teamwork • 5S • Visual Performance Measurement • Focused Improvement Strategies • Training needs • HR/IR best practice • Climate and Risk assessment

Assessment Overview WORLD 100% CLASS  Hospitech; Charnaud Potential Savings (R’s) 250 – 500k : Charnaud 500 – 1000k : Hospitech; Leisureknit 1000k + : Allwear, Derlon, Sandown, Trump (Within 1 year of rollout)  Frame  Trump 75% PERFORMANCE  Sandown; Derlon Perf. Prac. Trump 75 1,7 Sandown 68 1,1 Leisureknit <50 1,0 Hospitech 1 89 1,0 Frame 82 2,1 Derlon 68 1,2 Allwear 67 1,5 CPC 89 1,1  Allwear  Leisureknit 50% 1 2 3 4 5 PRACTICES

IMPLEMENTATION PLAN • Each enterprise develops a comprehensive implementation plan • Jointly developed and signed off by management and shopstewards • Identifies a pilot site • Appoints an implementation team • Sets performance improvement targets • Identifies performance improvement measures

CAPACITY BUILDING • A college • A nine month programme of focused training • Training targeted at • Implementation teams • Supervisors • Managers and shop stewards • Shop floor trainers

CAPACITY BUILDING • Training focus • world class manufacturing • best operating practices • quality assurance • supervisor development • performance management • HR/IR best practices

Consultancy support • Training backed by on site consultancy support • On site blitz focused improvement programmes

Approach College Review & Train Improvement Projects Implement Best Practices Advise and Train on Site

Project Oversight • Project Steering Committee • Senior management • union • DOL • Employer Association • SETA • Local Councils • ILO

Project Outcomes • Measurable improvement in production efficiencies, product quality and people development • Discernable advances in individual and organisational competencies • Improvement in HR/IR practices and organisational climate

2.1 Enterprise Level Measures (1) OE/OEE : Absenteeism : Staff Turnover Due to new FM?

2.2 Enterprise Level Measures (2) Yarn cutting knives Training Days: Safety Incidents

4.1 ILO C&T College Training Programme (Sept. – Dec. 2004)

ENHANCING ENTERPRISE PERFORMANCE IN THE CLOTHING AND TEXTILE INDUSTRY IN NORTHERN KWAZULU NATAL