MUSHUNJE TICHAFA R1103090W

i

A DISSERTATION SUBMITTED IN PARTIAL FULFULMENT OF T HE

REQUIREMENT FOR THE MASTER OF BUSINESS ADMINISTRATI ON

DEGREE

2013

GRADUATE SCHOOL OF MANAGEMENT

UNIVERSITY OF ZIMBABWE

SUPERVISOR: DR.D. MARAVANYIKA

AN EVALUATION OF THE IMPACT OF IMPLEMENTING ADVANCED

MANUFACTURING TECHNOLOGY ON OPERATION EFFIENCY IN

ROOF TILE MANUFACTURING INDUSTRY IN ZIMBABWE: CASE OF

ZIMTILE (2009- 2013).

TICHAFA MUSHUNJE REGISTRATION N O:

R1103090W

i

Dedication

To my late parents Christina and Christopher and my loving wife Choice and sons Tafi

and Tinashe thank you for your support and patience as you spent most of the time

alone while I was doing my studies.

ii

Declaration I ……………………………………………………………………………. do hereby declare

that this dissertation is the result of my own investigation and research, except to the

extent indicated in the Acknowledgements, References and by comments included in

the body of the report, and that it has not been submitted in part or in full for any other

degree to any other university.

________________ _____________

Student’s signature Date

________________ _____________

Supervisor’ Signature Date

iii

Acknowledgement

My sincere gratitude goes to the Lord the All Mighty for providing me with the necessary

resources and wisdom to see me through my Masters in Business Administration

studies at the University of Zimbabwe.

My admiration goes to my supervisor, Dr Denis Maravanyika who guided me in

compiling this dissertation. His expertise and patience made it possible to finish and

submit the dissertation on time. My gratefulness is also extended to all Graduate School

lectures and supporting staff for their unwavering support and encouragement and

Group 5 members for their encouragement and contributions.

I would also want to extend my most felt appreciation to my brothers and sisters

particularly DR. Mushunje for sponsoring my studies and my wife and children for their

support and encouragement.

Lastly but not least special thanks go to Rumbidzai Muzvidziwa for assisting with the

lay outs and to Zimtile staff for participating in the study.

iv

Abstract

The primary objective of this study was to evaluate the impact of implementing

advanced manufacturing technologies (AMTs) on operational efficiencies at Zimtile.

Literature points to the fact that successful implementation of AMTs enhances

operational efficiencies which leads to reduction in lead time, improved customer

satisfaction, profitability and market share. Notably the available literature on AMTs

implementation is from technologically advanced countries. Unfortunately, none of the

literature that was reviewed relates to Zimbabwe manufacturing sector. Therefore, the

present research attempted to bridge this knowledge gap by studying the impact of

implementing AMTs in roof tile manufacturing in Zimbabwe.

Qualitative research methods based on a single case study of Zimtile was used.

Purposive sampling strategy was employed to select 15 respondents at Zimtile. Data

was collected through face-to-face interviews with managers. Data analysis was a

mixture of analytic text and data displays.

The study concluded that Zimtile failed to attain a positive impact on operational

efficiencies and consequently, also failed to realise the expected benefits of

implementing AMTs. The failure is attributed to the unavailability of key success factors

for implementing AMTs at Zimtile. The key success factors, that were not available at

Zimtile included, strategic fit, conducive corporate culture, adequate technical skills, and

senior management commitment. In view of these conclusions the study recommends

that; Zimtile creates an enabling environment for AMTs implementation, conducts an

environment impact assessment and enhance chances of achieving benefits of

implementing AMTs through addressing quality issues and adopting manufacturing best

practices.

v

List of Content

Dedication i

Declaration ii

Acknowledgement iii

Abstract iv

Table of Contents vi

List of Tables xi

List of Figures xii

Acronym xiii

vi

Table of Contents

CHAPTER 1 ............................................................................................................................... 1

1.0 INTRODUCTION.................................................................................................................. 1

1.1 INTRODUCTION ................................................................................................................... 1

1.2 Background to Study .................................................................................................................. 1

1.2.1 Macro Analysis .................................................................................................................... 2

1.2.2 Micro Analysis: Porter’s 5 Forces Analysis ..................................................................... 4

1.2.3. Background to Study- The Case Study Organization ..................................................... 6

1.2.4 Zimtile Swot Analysis ...................................................................................................... 11

1.3 OPERATION OVERVIEW OF ZIMTILE ................................................................................. 12

1.3.1 Production: ......................................................................................................................... 12

1.4 Problem Statement ................................................................................................................... 14

1.5 Research Objectives ............................................................................................................ 14

1.5.1 Sub Objectives: .................................................................................................................. 15

1.6 Research Questions ................................................................................................................. 15

1.7 Research Proposition ............................................................................................................... 15

1.8 Justification of Study ................................................................................................................ 15

1.9 Scope of Research ................................................................................................................... 16

1.10 LIMITATION ............................................................................................................................ 16

1.11 STRUCTURE OF THE RESEARCH .................................................................................... 16

CHAPTER 2 ..............................................................................................................................18

2.0 LITERATURE REVIEW .......................................................................................................18

2.1 INTRODUCTION ...................................................................................................................... 18

2.2Definitions of AMTs ............................................................................................................... 18

2.3 Classification of AMT ............................................................................................................... 19

2.3.1 Process Technology; ......................................................................................................... 20

2.4SUCCESS FACTORS FOR IMPLEMENTING AMT .............................................................. 20

vii

2.4.1 Strategic Fit ........................................................................................................................ 21

2.4.2 Senior ................................................................................................................................. 22

2.4.3 Organizational Structure ................................................................................................... 23

2.4.4 Corporate Cultural ................................................................................................................. 23

2.4.5 Human Factor: ................................................................................................................... 25

2.4.6 Size of Orgainisation: ............................................................................................................ 26

2.4 .7 Technological .................................................................................................................... 26

2.5 AMT IMPLEMENTATION PREDICTIVE MODEL .................................................................. 27

2.6 Operational Efficiency .............................................................................................................. 28

2.7 BENEFITS OF AMTS ............................................................................................................... 28

2.7.1 Flexibility ................................................................................................................................ 29

2.7.2 Productivity ............................................................................................................................ 31

2.7.3 Product Quality; ..................................................................................................................... 31

2.7.4 Cost Reduction .................................................................................................................. 32

2. 8 AMT Use and Performance .................................................................................................... 33

2.9 SOURCES OF COMPETITIVE ADVANTAGE....................................................................... 34

2.9.1 Porters Five Forces Model of Competitive Advantage ................................................... 34

2.9.1.1 Limitations of Porter’s Five Forces Model .................................................................... 35

2.9.2 Resource Based View Model for Competitive Advantage ............................................. 35

2.10 DISADVANTAGES OF AMTS ............................................................................................... 37

2.11 Chapter Conclusion ................................................................................................................ 38

CHAPTER THREE ....................................................................................................................39

3.0 RESEARCH METHODOLOGY ...........................................................................................39

3.1 INTRODUCTION ...................................................................................................................... 39

3.2 RESEARCH DESIGN .............................................................................................................. 40

3.3 RESEARCH PHILOSOPHY .................................................................................................... 40

3.3.1 Quantitative approach ................................................................................................. 41

viii

3.3.2 Qualitative approach .................................................................................................... 41

3.3.3 Selecting the suitable approach ................................................................................. 42

3.4 RESEARCH STRATEGY ................................................................................................... 42

3.4.1 Survey ........................................................................................................................... 43

3.4.2 Experiment ................................................................................................................... 44

3.4.3 Action research ............................................................................................................ 44

3.4.4 Observation .................................................................................................................. 44

3.4.5 Case Study ................................................................................................................... 44

3.4.6 Justification for Selecting Case Study ........................................................................ 45

3.4.7 Critic of Case Studies .................................................................................................. 47

3.5 POPULATION AND SAMPLING ........................................................................................ 47

3.5.1 Sampling ....................................................................................................................... 48

3.5.2 Sampling unit ............................................................................................................... 49

3.5.3 Sample Size ................................................................................................................. 49

3.5.4 Sample Methods/ Techniques .................................................................................... 49

3.5.5 Probability Sampling .................................................................................................... 50

3.5.6 Non- Probability Sampling .............................................................................................. 50

3.5.7 Advantages of purposive Sampling ............................................................................ 51

3.5.8 Disadvantages of Purposive Sampling ...................................................................... 52

3.6 Justification for adopting Purposive Sampling ................................................................... 52

3.7 SOURCES OF DATA ............................................................................................................... 53

ix

3.7.1 Primary data ................................................................................................................. 53

3.7.2 Secondary data ............................................................................................................ 54

3.7.3 Data Collecting Methods ............................................................................................. 54

3.7.4 Justification for using semi structured interviews ...................................................... 57

3.8 QUESTIONNAIRE .................................................................................................................... 57

3.8.1 Justification for Using Questionnaire ......................................................................... 58

3.8.2 Questionnaire Design ........................................................................................................ 59

3.8.3 Structure of the questionnaire used for the research ..................................................... 59

3.8.4 Questionnaire Piloting ....................................................................................................... 60

3.9 Data Analysis and Interpretation ............................................................................................. 60

3.10 CREDIBILITY AND DEPENDABILITY ................................................................................. 61

3.10.1Credibility........................................................................................................................... 61

3.10.2 Dependability ................................................................................................................... 61

3.11 ETHICAL CONSIDERATIONS ....................................................................................... 62

3.12 CHAPTER CONCLUSION .............................................................................................. 62

CHAPTER 4 ..............................................................................................................................64

4.0 RESEARCH FINDINGS AND ANALYSIS............................................................................64

4. 1 INTRODUCTION ..................................................................................................................... 64

4.2 KEY RESPONDENTS.............................................................................................................. 64

4.2 Demography of the Respondent ............................................................................................. 64

4.3 ANALYSIS, RESULTS AND DISCUSSIONS ........................................................................ 66

4.3.1 Key success factors for implementing advanced manufacturing technology. .............. 66

4.3.2 The expected benefits of implementing advanced manufacturing technology at Zimtile

...................................................................................................................................................... 74

4.3.3 Achieved benefits of implementing AMTs at Zimtile. ..................................................... 76

x

4.4 SUMMARY OF THE FINDINGS ............................................................................................. 78

4.4.1 Key success factors for Implementing AMTs. ................................................................. 78

4.4.2 Expected benefits of implementing AMT at Zimtile ........................................................ 79

4.4.3 Achieved benefits .............................................................................................................. 80

4.5 CONCLUSION ..................................................................................................................... 80

CHAPTER 5 ..............................................................................................................................81

5.0 CONCLUSION AND RECOMENADTION ...........................................................................81

5.1 INTRODUCTION.................................................................................................................81

5.2 CONCLUSIONS .................................................................................................................. 81

5.3 EVALUATION OF THE PROPOSITION ............................................................................. 82

5.4 RECOMMENDATIONS ............................................................................................................ 82

5.4.1 Establishing a Conducive Environment ............................................................................... 82

5.4.2 Environmental Impact Assessment.................................................................................. 83

5.3.3 Enhancing Achievement of AMTs Benefits .................................................................... 83

5.4 STUDY LIMITATIONS AND AREAS OF FURTHER STUDY............................................... 83

REFERENCES .........................................................................................................................84

Appendix 1 Cover Letter ................................................................................92

Appendix 2 Questionnaire .......................................................................93

xi

LIST OF TABLES

Table 1.1 Customer Feedback and Complains……………………………… 8

Table 1.2 Zimtile SWOT Analysis …………………………………………….. 12

Table 1.3 Composite Production and Market Share …………………………. 13

Table 1.4 Delivery Backlog……………………………………………………… 14

Table 3.1 Research Population ………………………………………………… 48

Table 4.1 Respondent Demographic Profiles ………………………………… 65

Table 4.2 Strategic Factors for Implementing AMTs ………………………… 66

Table 4.3 Strategic Fit to Technology …………………………………………. 68

Table 4.4 Senior Management Commitment …………………………………. 69

Table4.5 Zimtile Corporate Culture ………………………………………….. 70

Table4.6 Influence of Corporate Culture on New Technology ……………. 72

Table4.7 Critical Skills Necessary of AMTs Implementation ……………….. 73

Table4.8 Expected Benefits For Implementing AMTs ……………………… 75

Table4.9 Benefits Realised from AMTs Implementation at Zimtile ………… 76

Table4.10 Experience with new Technology ………………………………….. 77

xii

LIST OF FIGURES

Figurer 1.1 Monetary Policy Statement of Zimbabwe (2013) ………………. 3

Figure 1.2 Porter’s Five Forces Analysis Roof Tile Industry………………... 6

Figure 1.3 Roofing Tile Quality Rating ……………………………………….. 7

Figure 1.4 Zimtile Product Range …………………………………………….. 9

Figure 1.5 Zimtile Organisational Structure………………………………….. 10

Figure 1.6 Year on Year Production Figures ………………………………. 12

Figure2.1 AMT Key Success Factors ……………………………………….. 21

Figure2.2 AMTs Implementation Predictive Model ……………………….. 27

Figure 2.3 Conceptual Framework ……………………………………………. 38

Figure3.1 Research Methodology …………………………………………… 39

Figure3.2 Research Strategies ………………………………………………. 43

Figure3.3 Structure of Questionnaire ……………………………………….. 59

xiii

ACRONMY

AMT ADVANCED MANUFACTURING SYSTEMS

CEO CHIEF EXECUTIVE OFFICER

CIFOZ CONSTRUCTION INDUSTRY FEDERATION OF ZIMBABWE

CZI CONFEDATION OF ZIMBABWE INDUSTRIES

DFI DIRECT FOREIGN INVESTMENT

HIV HUMAN IMMUNODEFICIENCY VIRUS

GNU GOVERNMENT OF NATIONAL UNITY

ISO INTERNATIONAL STANDARDS ORGAINISATION

ITC INFORMATION TECHNOLOOGY AND COMMUNICATION

PGIZ PLATE GLASS INDUSTRIES ZIMBABWE

PVT LTD PRIVATE LIMITED

RBZ RESERVE BANK OF ZIMBABWE

R&D RESEARCH AND DEVELOPMENT

SWOT STRENGTH WEAKNESS OPPORTUNITIES THREAT

ZNCC ZIMBABWE NATIONAL CHAMBER OF COMMERCE

1

CHAPTER 1

1.0 INTRODUCTION

1.1 INTRODUCTION

Available literature has proved beyond doubt that Advanced Manufacturing Technology

(AMT) has got a vital role in enhancing the operational efficiency of businesses, if it is

properly adopted (Manoj, 2010). Mas, Stehrer and Robert (2012) furthered this

assertion by coining the fact that technology is key to enhancing industrial operational

efficiency through cost reduction, quality, flexibility and productivity improvements and

they however cautioned that technology alone is not adequate if not supported by

sustainable research and development (R&D), human capital and information

communication and technology (ITC). Porter (1985) further emphasized the need for a

strategic fit to technology implementation in order to gain and sustain competitive

advantage.

Notably the available literature on AMTs is from technologically advanced countries.

Unfortunately very little literature is available on AMTs in Zimbabwe’s manufacturing

sector. Hence the available literature has a weakness in that it does not address the

research objectives as stated below in a Zimbabwean context. This paper seeks to

bridge the knowledge gap that exists by studying the impact of implementing AMT in

roof tile manufacturing industry in Zimbabwe.

1.2 Background to Study

Post dollarization Zimtile was faced with multiple operational challenges key amongst

them were declining quality, high cost of production, low productivity and operation

inflexibility. The operational efficiency challenges prevented Zimtile from attaining

competitive advantage over its competitors instead a new entrant (Beta Bricks, Frog

Tiles, Vaka Africa) took advantage of this and entered the market. The next sections

2

discusses in detail the back ground to the roof tile manufacturing industry in Zimbabwe

as well as give an overview of the Zimbabwean economy.

1.2.1 Macro Analysis

PESTEL analysis is appropriate for this research study as the external factors influence

operational strategic decisions made.

1.2.1.1 Political and Legal Environments

Zimbabwe is currently enjoying peace and tranquility following a government of national

unit (GNU) brokered in 2009. However the pending referendum and national election to

be held during the first and second half of 2013 have put this achievement under threat.

While the GNU is hailed for bringing in peace and stability to the nation, it has been an

impediment to economic growth because of its policy inconsistency, reversal and

ambiguity. The adoption of the Indigenization Act and the above mentioned factors have

resulted in capital flight and at the same time discouraged foreign direct investment

(FDI). Capital flight and discouragement of FDI have impact negatively on the

acquisition and transfer of manufacturing technology.

1.2.1.2 Economic Environment

Zimbabwe is experiencing a severe under capacity utilization across all sectors of the

economy, declining disposal income and high liquidity problems. Zimbabwe’s year on

year inflation is 3% and the GDP for 2013 is expected to be 5,6% a decline from 9.8% in

2012 (RBZ 2013). From a research by Confederation of Zimbabwe Industries (CZI) the

construction industry accessed only 2% of the available loans disbursed by the banks in

2012 see Fig 1.1. Two percent is marginal considering the fact that it is the

infrastructure that drives the economy. Liquidity problems result in high cost of capital

due to high lending rates and high bank charges. The high cost of capital discourages

borrowing by key productive sector of the economy meaning that they will be less

investment in the manufacturing technology (CZI, 2013).

3

Composition of Credit to the Private Sector

Figure 1.1 Source: Monetary Police Statement of Zim babwe, (2013)

1.2.1.3 Social Environment

Zimbabwe has a high literacy level of about 95% which is conducive for easy

assimilation of technology. High prevalence of HIV and AIDS, high youth unemployment

and a possible drought pose a great challenge to the government and the nation. The

government is the biggest customer of Zimtile and the afore mentioned challenges will

see the government spending MORE money to avert hunger leaving very little funds

available for capital projects. On the other side the high prevalence of HIV/AIDS and

other diseases like cholera and malaria make Zimbabwe less attractive to investors

(CZI, 2013).

1.2.1.4 Technology

Following a decade of economic meltdown Zimbabwe lagged behind in manufacturing

technology. Most of the machinery and equipment is obsolete and needs to be replaced

by modern and more efficient technology (Zimbabwe National Chamber of Commerce

2011). A survey by CZI on manufacturing industry in 2012 underscored the point that

R&D is imperative for technological development however it lamented that there is very

little investment in R&D and that technological assimilation by Zimbabwean industrialist

4

was very low. The report also encouraged local organisation to fund local R&D

institution and also challenged local organisation to embrace home grown technology.

The gap in technology means Zimbabwean manufactures are not competitive in

regional and global markets unless they invest in modern technology.

1.2.2 Micro Analysis: Porter’s 5 Forces Analysis

Porter’s 5 forces model underpins the fact that establishment of competitive advantage

goes beyond established industry rivals but includes other competitive forces such as

bargain power of customers and suppliers, potential new entrants and substitute

products. The extended rivalry that results from these forces generally shapes the

nature of competitive interaction within an industry and defines an industry (Brown

2009).

1.2.2.1 The Bargaining Power of Customers

Zimtile customers are individuals, property developers, corporate and exporters.

Individuals normally buy in small quantities and are once off clients. Because of their

individuality and low purchase volumes their bargaining power is very low. Property

developers and corporate buy in big volumes repetitively they are quality and price

sensitive. Because they buy in bulk repetitively their bargaining power is high and they

demand high discounts. On the other hand, building constructors pose a threat by

integrating backwards into the industry. The bargain power of this group of customer is

very high. Exports volumes are lower compared to the local market purchases but are

ideal for market growth. Exporters are very price sensitive, particular about lead time

and can easily switch suppliers. They have a very high bargaining power.

1.2.2.2 The bargaining power of Suppliers The key suppliers of raw material (sand, cement, and pigment) and machine spare parts

to Zimtile are Lafarge, Portland cement, Bartler Sand, White sand and Jessop and

Associates. There is a monopoly in the supply of cement. All the suppliers operate on

cash basis and their price are generally the same. The cement suppliers do dictate the

price and this pose a big challenge to the industry as it is not always possible to pass

5

the cost to the customer. This puts pressure on production to improve on operation

efficiency if it is to remain competitive. The supplier of critical machine spare parts has

an exclusive monopoly. The terms are favorable and treat Zimtile as a strategic partner.

Sand and pigment suppliers are many and this has curtailed their bargaining power.

1.2.2.3 Threats of substitutes

Post dollarization Zimtile has seized to be a monopoly for roofing tiles. Several new

entrants the likes of Beta tile, Harvey tile Willow tile, Frog Tile and Vaka Africa have

emerged. These substitute products are cheap, sold ex-stock, good quality unlike

Zimtile products which are expensive, of inferior quality and not available ex-stock. The

threat of substitutes is great and Zimtile has to prepare for it.

1.2.2.4 Threat of New Entrants

The roof tile manufacturing industry generally enjoys profit margins of above 55%

Construction Industry Federation of Zimbabwe (CIFOZ, 2013). The exceptional profit

margin is attractive for new entrant but the high cost required to setup a tile

manufacturing plant and environmental management agency (EMA) requirements

discourage new entrants. The major players in the industry are Beta tile, Toptile, Willow

tile and Zimtile do enjoy huge economy of scale and their products are well

differentiated. This further discourages new entrants.

1.2.2.5 Rivalry within the industry

The industry is a perfect market consisting of many players offering similar roofing

materials. Due to liquidity constraints and other factors at play the market for roofing

materials is decreasing month by month. This has resulted in serious rivalry within the

industry as companies compete for customers. Price under cutting and media war are

common features within the industry.

Figure1.2 Porter’s Five Forces analysis of Roof Tile Manufact uring Industry

1.2.3. Background to Study

Zimtile (Pvt) Ltd came to be in 1992 following a management buyout from Marley tiles,

by the Jones family. Before the buyout

Until 2009 Zimtile was the only major manufacturer and supplier of concrete roofing tiles

in Zimbabwe. It has two tile manufacturing plants strategically located, in Bulawayo to

supply the greater Southern part of Zimbabwe and in Harare to cater for the rest of the

country. It has also several distribution points in all major towns like Mutare, Masvin

Gweru and Chinhoyi. The shareholding of Zimtile has changed hands over the past

years the recent being a 100% acquisition by Plate Glass Industries Zimbabwe (PGIZ)

following the purchase of 30% share from the Jones family. In 2011 Zimtile invested

into a state of the art tile manufacturing plant

machine Jessop and Associates it is the third such machine in Southern

Raw Material & Spares

(Suppliers)

High

Bargaining Power of Suppliers

High

Threat of Substitutes

Porter’s Five Forces analysis of Roof Tile Manufact uring Industry

1.2.3. Background to Study - The Case Study Organization

Ltd came to be in 1992 following a management buyout from Marley tiles,

by the Jones family. Before the buyout, it had operated for 35 years as Marley tiles.


abwe. It has two tile manufacturing plants strategically located, in Bulawayo to


country. It has also several distribution points in all major towns like Mutare, Masvin




to a state of the art tile manufacturing plant. According to the manufacturer

machine Jessop and Associates it is the third such machine in Southern

Competitive Rivalry among short-term insurers [HIGH]

Potential entrants

Substitutes (Asbestors,chrom

adec)

Bargaining Power of

Threat of new entrant

Bargaining Power of Buyer

Threat of Substitutes

6

Porter’s Five Forces analysis of Roof Tile Manufact uring Industry

Ltd came to be in 1992 following a management buyout from Marley tiles,

operated for 35 years as Marley tiles.


abwe. It has two tile manufacturing plants strategically located, in Bulawayo to


country. It has also several distribution points in all major towns like Mutare, Masvingo,




. According to the manufacturer of the

machine Jessop and Associates it is the third such machine in Southern Africa and it’s

Individuals,Corparate,Property

Developer (Buyers)

Low

Threat of new entrant

High

Bargaining Power of Buyer

7

the only one of its kind in Zimbabwe basing on it’s capacity (CIFOZ, 2012). The

machine has a capacity of running 40 000 tiles per day capable of running four profiles

a day and can accommodate different colours per batch. The new plant was expected

to be a panacea to all operational efficiency problems the company was facing.

1.2.3.1Vision

Zimtile vision is: To be the quality low cost manufacturer and distributor of concrete roof

tiles, and related products in Zimbabwe and the region. Like most organisational

visions, Zimtile’s vision indicates what the organization desires to be in the future.

1.2.3.2 Mission statement

To be the leading manufacturers and distributors of high quality low cost concrete

tiles, bricks, pavers and other complimentary products to the construction companies,

property developers, individuals, and the government of Zimbabwe and the region.

The mission statement clearly captures the purpose of the existence of Zimtile, that is,

to manufacture and distribute specifically quality concrete roof tiles, bricks, pavers and

other complimentary products to the construction industry. However, Zimtile has failed

to live up to its mission as it’s tiles, are of inferior quality in comparison with other

suppliers while at the same time they are always in short supply despite an investment

in new machinery see fig 1.3

Fig1.3 Roofing Tile Quality Rating Sources: Zimtile Annual Reports (2009-2013)

80

85

90

95

100

2009 2010 2011 2012

Actual

Target

Year

Pe

rce

nta

ge

%

8

1.2.3.3 Business Strategy

Zimtile has adopted a combination of low cost based and broad differentiation strategy.

In line with this strategy Zimtile has invested in technology which is expected to improve

the operational efficiency and add flexibility to the machine. Through the flexibility of the

machine Zimtile will be able to introduce two new roof tile profiles and a variety of

colours which will make the Zimtile products unique and more enticing to the public. The

customers will be expected to have a wide choice to choose from and the products

would be available on time and in a variety of colours. The products are expected also

to be affordable and appealing to a wide spectrum of customers. Unfortunately this has

not been the case as illustrated in a customer feedback and complaints for May 2013

see table 1.1. From the table below it is noted that most clients are dissatisfied with the

lead time and product quality. Again this is in variation of expected benefits after

commissioning a new plant. Customer satisfaction is 43%. A below 50% customer

satisfaction rating is a proxy of viability and operational problems.

Table 1.1 Customer Feedback and Complaints As At Ma y 2013

Bad Average Good Excellent Total

Customer Service 3 4 7 4 18

Quality of Product 4 4 3 - 11

Our Price 4 5 5 1 15

Product Range 1 3 2 1 7

Delivery Lead Time 12 3 1 1 17

How you were dealt with 2 2 4 5 13

Total 26 21 22 12 81 Source: Zimtile Monthly reports (May 2013)

9

1.2.3.4 Zimtile Product Range

Zimtile is a manufacturer and distributor of high quality low cost concrete tiles, pavers,

ridges and bricks. It is the exclusive producer in Zimbabwe of two tile profiles namely

the Bold Double Roman and the Tuscan. The Tuscan is targeted for the upper market

while the bold double is targeted for middle market however its boldness makes it

appeal to the upper market too.

Tuscan Bold Double Roman

Interlocking Pavers Common Brick

Fig 1.4 Zimtile Product Range

1.2.3.1 Zimtile Organisational Structure

Zimtile has a functional organizational structure with distinctive functional departments.

The structure gives clear lines of authority and communication. The structure spells out

Figure1.5 Zimtile Organisational structure: Source Zimtile An nual Report 2012

the mechanism by which Zimtile’s tasks and programs are accomplished. It is a

centralized structure and the

the management and tight

departmental heads report

PGIZ chief executive officer (CEO). The CEO reports to the board of directors.

A functional structure has a weakness in that isolated functions could be limited to

individual departments and not shared across the whole organisation. This in mos

cases, results in short-

departments have their own mission and objectives other than for the whole

organisation. Because of different leadership styles in different departments

communication and confusion

Production

Manager

Tile Plant

Supervisor

Machine

Operator

Brick Plant

Supervisor

Zimtile Organisational structure: Source Zimtile An nual Report 2012


centralized structure and the decision making power is concentrated in the top layer of

the management and tight control is exercised over departments

departmental heads report to the managing director who in turn reports to



individual departments and not shared across the whole organisation. This in mos

-sightedness and lack of pro-activeness such that all the


organisation. Because of different leadership styles in different departments

n and confusion may result.

Managing

Derictor

Works

Manager

Production

Brick Plant

Supervisor

Machine

Operator

Quality

Assurance

Officer

Process

Tester

Sales and

Marketing

Manager

Finance

Manager

PA

10

Zimtile Organisational structure: Source Zimtile An nual Report 2012


power is concentrated in the top layer of

and divisions. The

to the managing director who in turn reports to the group



individual departments and not shared across the whole organisation. This in most

activeness such that all the


organisation. Because of different leadership styles in different departments, poor

Finance

Manager

Human

Resources

Manager

11

1.2.4 Zimtile Swot Analysis

In analyzing Zimtile competitiveness, the researcher considered the organization’s

internal strengths (what it can do best) and weaknesses (what it cannot do) and its

external opportunities (potential favorable conditions for the organisation) and threats

(potential unfavorable conditions for the organization). A clear understanding of the

competitors’ strengths and weaknesses will assist Zimtile management in adopting the

correct operational strategy.

Table1. 2 Zimtile SWOT Analyses Source: Zimtile Strategic Plan (2013)

STRENGTHS WEAKNESS

• State of the art tile plant

• Strategically positioned distribution

networks

• High production Flexibility

• Reputable brand ( over 60 years)

• Good supplier relationship locally and

regionally

• NAVISION Production Module (ERP)

• ISO Certified

• High cost of production

• Old business Model

• Low staff moral

• Lack of required skills

• Quality of product below industry standards

• Inadequate working capital

• Unable to sell product ex-stock

OPPORTUNITIES THREATS

• Platinum expansion program Ukie mine

• Backward integration

• Offshore funding facility

• Good tobacco season

• Intensifying completion

• Proliferation of high tech tile plant

• Dwindling supply of sand within great

Harare area

• Political instability (pending referendum

and election)

• Weak financial sector

• Drought

Despite Zimtile acquiring a new machine, it has failed to gain

as its cost of production and product quality remain high and below target and industry

standard respectively. This is again exacerbated by its inability

operations, attract and retaining skilled manpower. Zimtile has opportunities for growt

as there are opportunities of new business in the expanding platinum and gold mines

which is being driven by high international commodity price. The offshore funding facility

will enable Zimtile to fund its operation

because of intense competition arising from high proliferation of new players in the

industry and depressed construction project funding as investors shy off in fear of

political risk associated with elections.

1.3 OPERATION OVERVIEW OF ZIMTILE

1.3.1 Production:

As shown in fig 1.6 productions

to antiquated plant that was continuously break

was experienced in 2012

manufacturing plant. While there was a significant increase on year on year output

was still below budget (58% of budget) a huge variance from expected results.

Fig 1.6 Year on Year Production Figures 2009Report (2009- 2012).

0

1,000,000

2,000,000

3,000,000

Num

ber

of T

iles

Despite Zimtile acquiring a new machine, it has failed to gain a competitive

its cost of production and product quality remain high and below target and industry

standard respectively. This is again exacerbated by its inability

attract and retaining skilled manpower. Zimtile has opportunities for growt



will enable Zimtile to fund its operations. Business growth will not be as expe



political risk associated with elections.

1.3 OPERATION OVERVIEW OF ZIMTILE

productions steadily decreased between 2009 and

to antiquated plant that was continuously breaking down. However

was experienced in 2012 and this is attributed to the commissioning of a new tile

manufacturing plant. While there was a significant increase on year on year output


Year on Year Production Figures 2009 -2012 Source: Zimtile Annual

2009 2010 2011 2012Years

12

a competitive advantage

its cost of production and product quality remain high and below target and industry

standard respectively. This is again exacerbated by its inability to optimally fund

attract and retaining skilled manpower. Zimtile has opportunities for growth



. Business growth will not be as expected



adily decreased between 2009 and 2011. This is due

owever, a notable increase

commissioning of a new tile

manufacturing plant. While there was a significant increase on year on year output, it


2012 Source: Zimtile Annual

Actual Out Put

Budget Output

13

1.3.2 Market Share Analysis

The table 1.3 below shows that while Zimtile still remains the market leader despite

steadily losing market share to new competitor Beta tile.

Table 1.3 Composite Productions and Market Share Co mparison Source Zimtile Annual Reports (2009-2012)

Company Maximum

Plant Capacity

Average Daily

Production 2009 2010 2011 2012 Ranking

Zimtile 40 000 15 000 50% 45% 45% 40% 1

Beta Tiles 50 000 25 000 - - 30% 35% 2

Harvey Tile 20 000 11 000 28% 30% 15% 17% 3

Frogtile 10 500 8 500 10% 15% 5% 3% 4

Intercrete 8 000 5 000 5% 6% 3% 3% 5

Sirtech 5 000 2 500 5% 3% 1% 1% 6

Others 5 000 3 500 2% 1% 1% 1% 7

TOTAL - - 100% 100% 100% 100%

1.3.3 Product Delivery:

Table 1.4 below shows that as of 31 May 2013 about one and half years after Zimtile

Harare plant was commissioned, it had a back log of 415087tiles worthy $456396.70.

The new plant has not yet managed to clear the backlog because customers are still

waiting in queues to collect tiles.

14

Table 1.4 Delivery Backlog

Product (Profile) Tiles Ridges Total Units Value $ (USD)

Bold Double Roman 315,115 7,965 323,080 355388.00 Tuscan 90,507 1500 92,007 101207.70 Total 405,622 9,465 415,087 456595.70

Source: Zimtile May Monthly Report (2013 )

1.4 Problem Statement

As mentioned above, literature points to the fact that implementation of advanced

manufacturing technology enhances operational efficiency through improvement in

product quality, productivity, flexibility and reduction in production cost.

Section 1.2 in the background highlighted that the plant Zimtile installed a top of the

range tile manufacturing machine which is ranked one of the best in Southern Africa

and the best in Zimbabwe. With such a machine Zimtile must be enjoying high efficiency

levels. Regrettably and contrary to literature, this is not the case with Zimtile whose

operational efficiency remains subdued below target resulting in uncompetitive

products.

If management does nothing to address the situation and the trend continues Zimtile

products will remain uncompetitive leading to loss of market share and profitability. The

research problem is therefore to evaluate the impact of implementing AMTs in the

construction industry on operational efficiencies: The case of Zimtile (Pvt) Ltd.

1.5 Research Objectives

The aim of this study is to evaluate the impact of implementing AMTs on operational

efficiency in the construction industry a case study of Zimtile. Zimtile performance as

cited in sections 1.3 above is in variance with what is expected of the new plant.

15

1.5.1 Sub Objectives: 1. Establish whether the key success factors of implementing AMTs exist at Zimtile.

2. To establish what were the expected benefits of implementing AMTs at Zimtile.

3. To establish if the expected benefits of implementing AMTs were achieved at

Zimtile.

4. To recommend key success factors critical for implementing AMTs in the tile

manufacturing industry.

1.6 Research Questions

The researcher will seek to answer the following questions during the research study:

1. Does Zimtile have the necessary key success factors to implement AMTs?

2. What are the expected benefits of implementing AMTs?

3. To establish if Zimtile achieved the expected benefits of implementing AMTs at

Zimtile?

4. What key success factors need to be recommended to the tile industry for

successful implementation of AMTs?

1.7 Research Proposition

The lack of senior management commitment and technical skills, strategic misfit and

inhibitive corporate culture has resulted in Zimtile’s failure to achieve the benefits of

implementing AMTs.

1.8 Justification of Study

Very little has been documented in Zimbabwe regarding the impact of implementing

AMTs on operational efficiency in the tile manufacturing industry. As such, this study is

justified by the following reasons;

The research will benefit the organisation to identify key success factors for successful

implementation of AMTs.

16

The research will also benefit the construction industry in general as it will highlight the

prerequisite conditions and benefits of implementing AMT.

The study will also benefit the researcher who is an employee of Zimtile with better

knowledge to understand the dynamics in implementing AMTs.

Lastly, academia and fellow researchers will also benefit from this research as it will

give a different overview of implementation of AMTs in Zimbabwe.

1.9 Scope of Research

This study is focused on the evaluation of the impact of implementing AMT on

operation efficiency for Zimtile. It covers the period from 2009 – 2013. The participants

in the research will be staff and management of Zimtile Harare where the researcher is

currently employed.

1.10 LIMITATION The greatest constraint to this study is time as this dissertation is due in a period of six

months only. The researcher will seek the assistance of colleagues from Zimtile Harare

branch to help overcome the constraints posed by the time limitations. This was done

so that the limitation would not invalidate the results obtained from carrying out this

study.

1.11 STRUCTURE OF THE RESEARCH

Chapter 1: Introduction

This chapter covers the introduction of the research and it also gives a background of

the study, the problem statement and the background of the organisation being used as

the case study. The objectives, research question, proposition and justifications of the

research are also indicated in this chapter.

17

Chapter 2: Literature Review

This chapter critically reviews literature emanating from the problem statement. Focus

will be on what different authors have propounded concerning the impact of AMTs on

operation efficiency in the tile manufacturing industry.

Chapter 3: Research Methodology

This chapter outlines the methodology that will be used in carrying out the research, the

analytical framework of the research design chosen, the justification for a single case

study approach, the preparation for data collection, the main sources of data, and the

data collection process and data analysis.

Chapter 4: Research Findings, Analysis, and Discuss ion

The chapter looks at data analysis and discusses the findings. The conceptual

framework from Chapter 2 will be applied to the case study and will see how the

selected theory can explain the results obtained from case study. Within this chapter,

the posed research questions in chapter 1 will be answered and findings from the case

study are discussed in this chapter too.

Chapter 5: Conclusions and Recommendations

This chapter dwells on the conclusions and recommendations for each of the research

questions that are outlined in chapter one. This chapter ends by pointing out other areas

of future studies.

18

CHAPTER 2

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

Literature review allows the researcher to familiarize with both current and previous

body of knowledge on the topic under research thus enabling the researcher to learn

from others. Familiarization with these bodies of knowledge helps the researcher to

identify knowledge gaps worthy researching and it also divulges procedures, techniques

and research design worth copying (Neumann 2006).

In this chapter the researcher will review available literature on AMTs focusing precisely

on factors that influence successful implementation of AMTs. The chapter ends with a

summary of key literature areas reviewed, a critique of prior literature and conceptual

frame work of the current research.

2.2Definitions of AMTs

Advanced manufacturing technology AMT has different meanings in different situations,

but it can be broadly defined as an automated production system of people, machines

and tools for the planning and control of the production process, including the

procurement of raw materials, parts, components and the shipment and service of

finished products (Mcdemott and Stock, 2001). According to Zairi (2003), Advance

Manufacturing Technology (AMT) is a social-technical system that requires continuous

revisions, readjustments, and changes to adapt to the requirements of the competitive

world. Zairi’s (2003) definition is very general, and might not be sufficiently precise.

OECD,(2011) defined AMT as equipment controlled by computer or that is based on

microelectronics and it is applied to the design, manufacturing or product manipulation.

The same notion is echoed by Majchrzak, (2000) and Parker et al (2001). The

definitions by OECD, (2011),Majchizak and (2000),Parker et al, (2001) are generally

accepted and it is in agreement with most available literature on AMT. Industry Canada,

(2002) defines AMT as technology that involves new manufacturing techniques and

19

machines combined with information technology, microelectronics, and new

organizational .practices in the manufacturing process that enable manufacturers to

meet the productivity, quality, and cost reduction demands of competitive global

markets. While Industry Canada’s definition is comprehensive and OECD, definition is

broad, both definitions are accurate in describing the integration of AMTs in the modern

manufacturing system.

Despite the numerous definitions of AMT, what is common in all the definition is the

emphasis on effective operational decision-making and control through the use of a

potentially wide variety of techniques, based on new machine technology. The main

objective of these AMT is to increase long term profitability through some mixture of

improved quality and cost reduction (Harrison, 2004). However some literatures argue

that the reference to the use of computers makes the definition too general as not all the

technologies use computer systems.

The main objective behind implementing advance manufacturing technology is to

minimize human effort, less inventory, reduce time to develop products, and lessen

space so as to become highly responsive to customer demand, while at the same time

producing quality products in the most efficient and economical manner

(Motwani,(2003). Small (2007) suggested that the motivations for companies

considering AMT can be grouped into three categories which are technical/operational

objectives; total quality management (TQM) based objectives; and, business or market-

related objectives. Burcher and Lee, (2000) and Youssef, (2004) do agree with the

above authors. However Youssef, (2004) adds that AMT enables organisations to

obtain competitive advantages, financial benefits and counter competitive threats.

2.3 Classification of AMT

Zammuto and O’Connor, (2005) differentiated AMT from conventional machines by its

capabilities noting that AMT is operationally flexible, produces high quality and low cost

products. On the other hand, Swamidass and Kotha, (2007) differentiate AMT from

20

conventional manufacturing technologies by it is easy to electronically connected with

each other and with the rest of the organization. Kotha, (2007) classified Advance

Manufacturing Technology (AMT) into four groups on the basis of the imbedded

information processing capabilities.

1. Product design technologies (PDT).

2. Process technologies (PT) Logistics planning technologies (LPT).

3. . Information exchange technologies (IET).

Noori (2008) classified AMT by roll into three specific categories namely

operational, marketing, and strategic.

2.3.1 Process Technology;

Process Technologies (PT) encompasses technologies such as CNC, CAM, FMS, and

programmable controllers that focus on the process related aspects in manufacturing;

these technologies are used on the shop floor, and generate process related

information from the factory floor. Furthermore, these technologies can be linked to

product related technologies for reciprocal communication. Process technology is the

focus of this study.

2.4SUCCESS FACTORS FOR IMPLEMENTING AMT

Applying and adopting new technologies require broader issues to be considered.

Management needs to know what the organizational and strategic factors which make a

firm more competitive and adept at using AMT in improving its performance and assess

whether AMT's impact on company performance is more pronounced if associated with

a compatible organizational design and human force and management practices, so as

to minimize the risk involved with the high cost involved in AMT investment. Saberi and

Hickok (2009) and Macchucay (2006) classified these success factors as technological,

organizational and internal or external As illustrated in figure 1 below.

21

Figure 2.1 AMT Key Success Factors Adopted from Sab eri, and Hickok (2009)

Successful implementation of AMT is dependent on various factors ( Mohanty 2000).

In a study ‘Adopting and Implementing Advanced Manufacturing Technology’

(Machucay 2006) concluded that there are five key successes factors for implementing

AMT. Udo and Ehie, (2006) Boyer et al. (2003) and Small and Yasin (2007) concurred

with Machucay study. The five key success factors for implementing AMT according to

Machucay’s study are mentioned below.

2.4.1 Strategic Fit

These relate to how much strategic consideration is given to investments on the

strategic side of company planning and operations, and to the ability of the company to

appreciate the strategic advantages afforded by AMT. Managers influence the outcome

of new process introductions as they guide the level of intra and inter organizational

search undertaken at various stages of the project as means to ensure that the new

technology compliments overall business strategy. The same notion that strategic

22

considerations have a major influence on the success of implementation was echoed by

Voss (2006) reports. Babbar and Rai (2004) reemphasized the need of a strategic fit as

a prerequisite for successful implementation of AMTS. Inman (2006) reaffirms that

implementation of AMTs must be consistent with the company manufacturing strategy.

Sambasiva Rao and Deshmukh (2003) raised various strategic issues, such as finance

position, technological position, market position, product conception and resources as

fundamental for successful implementation of AMT. In a survey of 20 manufacturing

plants in southern Spain, Machuca et al. (2004) concluded that lack of strategic

planning had negative impact on development and implementation of AMT.

2.4.2 Senior Management Commitment

The level of management commitment and support, and the degree of financial support

are the most strategic factor for successful implementation of advanced manufacturing

technologies (Burua and Islam 2008). Babbar and Rai (2004) affirmed the fact that,

management must reevaluate its capabilities and then develop a strategy for successful

implementation of AMTs. Kimberly (1986) mentions that the success of AMT

implementation is dependent on whether management has taken cognizance of, the

firms competitive strategy, firm- vendor relations; and the firm’s ability to integrate AMT,

structure and strategy. This implies that management participation in strategic

formulation and guideline has a major influence on the success of post-installation

implementation of AMTs (Voss 2006). Buruncuk and Zarife (2001) concluded that

success is not a result of sophisticated and high-end technology but, a result of the

skilled management and proper implementation. The promised benefits can only be

achieved if an AMT is properly designed, implemented and operated (Floss and

Talavage, 1990)

The key function of management is to build trust and co-operation amongst the AMTs’

implementers (Cook and Cook, 1994). Organisations have different competitive

objectives; hence, their expectations from AMT will also vary. In this regard

management must, therefore, examine the firm’s current competitive position in relation

to its desired position before deciding on particular technologies that appear to be

suitable for its short-term and long-term goals (DeRuntz and Turner, 2010).

23

2.4.3 Organizational Structure

Organizational structure is the formal system of working relationships that share and

harmonize the tasks of multiple people and groups to serve a common purpose (Saberi

and Hicko 2009). Sohal et al, (2005) noted that manufacturing organisations that

implement AMTs without initially redesigning organizational structures and processes

are likely to encounter high difficulties. The structure of the organization has been

considered as the key factor to successfully implementing AMT in various literatures

(Dalton et al., (2001), Kotha, (1991),Dean et al., (2004), Belassi and Fadlalla,

(2002); Ghani et al,(2002) and Jin-Bo et al., (2006)) . It is generalized that if the correct

organizational structure is in place, a company will be more successful in implementing

advanced manufacturing technologies (Boyer et al…, 2007 and Anderson2000).

Boyer et al. (2007) stated that the multiple levels of authority involved with hierarchical

organizations often inhibited the effective implementation of AMTs and organization with

fewer level of authority are better positioned to implement successful AMTs. This

means that rigid, bureaucratic organizational structure is not appropriate for more

flexible technologies. Gupta et al, (2009) also indicated that only decentralization with

fewer rules and more employee involvement favoured technology implementation

whereas formalization and mechanistic structure inhibited implementation of AMT. One

can conclude that flatter, less complex structures with maximum administrative

decentralization, are ideal for successful implementation of AMTs (Belassi and Fadlalla

2002, Malhotra et al., 2001 and Chang and Lung, 2002). )

2.4.4 Corporate Cultural

New technologies directly challenge established norms and strategic options which

results in the birth of a new organizational culture (Saberi and Hickok 2009).

Organizational culture refers to a holistic construct that describes the complex set of

knowledge structures which organization members use to perform tasks and generate

social behavior. This construct is affected by and impacts many aspects of organisation

such as structure, role expectations and job description. Culture defines how one acts

on the job, and how one thinks and behaves toward workmates, industry norms,

practices and, supervisors, (Bateset al., 1995).

24

Generally corporate culture is viewed either as flexibility or inflexible (Zammuto and

O'Connor, 1992). Denison and Mishra, (1995) concurred with Zammuto and O’Connor

(1992) that corporate culture is either flexible or control oriented. Flexibility-oriented

culture focuses on the development of human resources, values member involvement in

decision making. Individuals in this culture are encouraged by the ideological appeal of

the task they are undertaking. Control-oriented culture is premised on assumptions of

stability, and that individuals respect the organizational mandates because roles are

formally defined and enforced through regulations and rules (Sberi et al…, 2009).

On company performance, Zammuto and O'Connor, (1992) hypothesized that the

control-oriented culture may lead to increased productivity, but can hinder AMTs

implementation, because centralization of responsibilities diminishes opportunities for

organizational learning. Zammuto and O’Connor,(1992) in their study concluded that

flexibility-oriented values will gain AMTs' productivity and flexibility benefits. McDermott

and Stock (2001) in a study of 97 US manufacturing organisations in which they

examined how organizational culture is related to outcomes associated with AMTs

implementation concurred with Zammuto and O’Connor,(1996) that companies with a

flexible group orientation gained higher levels of satisfaction from their AMT. They also

noted that, other benefits of implementing AMTs that normally take longer to realise,

such as overall satisfaction or competitive performance did depend on the cultural

flexibility. Chang (2000) in a study to establish the relationship between organizational

culture and successful implementation of AMTs in Taiwan discovered that control-

oriented culture did not favour successful implementation of AMT success but good

internal process, rational goals and horizontal coordination were ideal for successful

implementation of AMTs. These results demonstrated that companies with a history of

successful AMT implementation preferred a flexibility-oriented culture (Yusuff et al.,

2008). In a study by Gupta et al. (1998) of 101 US companies to investigate the effects

of implementing AMTs on organisations it was found out that AMT often leads to

increased uncertainty in the manufacturing environment, thus making it more

threatening to work in. Such findings add weight to the importance of both the self-

interest factors and literacy factors identified by Udo and Ehie (2006).

25

2.4.5 Human Factor:

In a research by Barua and Islam, (2008) it was noted that, human factors, employee

motivation, training prior to implementation and employee relation and cooperation, do

influence the implementing of advanced manufacturing technologies. Human resources

factors are noted as the most valuable asset, the new source of wealth, and the key

ingredient of competitive advantage by Vokic and Vidovic, (2007) Because employees

are the most enterprising asset and the only sustainable source of competitive

advantage (Baird and Meshoulan,2001). Basing on the above school of thought it is

evident that the most valuable asset in any organisation is its employees, because all

the management plans for success enhancement are carried out, or fail to be carried

out, by employees (Saleh and Randhawa 2001). Machine operator satisfaction is also

key because user dissatisfaction may lead to stress (Ettlie, 2000), work slowdowns or

sabotage (Zuboff, 2003), or individuals' resistance to exploit the technology (Leonard-

Barton and Deschamps, 2007), jeopardize implementation of AMT. The success of AMT

also dependent on support of an infrastructure consisting of skilled and disciplined

people (Blumberg and Gerwin 2009). In a survey of 20 Spanish manufacturing

companies Machuca et al...(2004) mentioned that, staff training had a positive impact

on AMTs implementation. Employee empowerment through increasing responsibilities

was noted by Gardner and Wright (2003), Marcri et al... (2002) and Udo and Ehie

(2006) that it had a positive impact on AMT implementation. To avoid sabotaging the

implementation of AMTs by shop production operators Macri et al., (2002) emphasized

the need for shop floor operators to understand and appreciate that the change is both

desirable and necessary to them.

It is therefore imperative that human factor be considered seriously when implementing

AMTs as human resources’ qualities, attitudes and behavior provide the firm with a

source of competitive advantage with respect to its rivals (Bidanda and Cleland, 1995

and Bayo-Moriones and De Cerio, 2004).

26

2.4.6 Size of Organisation:

The size of an organisation is an enabler in the use of AMT. Normally small

manufacturers do lag behind larger manufacturers in adopting new technologies (Ettlie,

2000).The same sentiments were echoed by Kimberly, 1976; Yasai-Arde- kani, 1989).

Mansfield (1993) found that very large firms implement and use AMTs successfully. He

attributed this to the fact that large firms have more resources and are better able to

take the risks than their smaller rivals. Swamidass, (1997) further noted that large

organisations have the resources that enable them to hire and train skilled labor to more

optimally exploit AMTs. In a study of implementing AMTs in 84 South African countries,

Sohal et al, (2001) found out that larger companies had a high probability of success

than small organisations. Sohal et al…,(2001) cited that, management of both the

financial resources and skills were the main challenges that prevented small

organisation from successful implementation of AMTs. Besides the size of the

organisation Laosirihongthing, Paul, and Speece (2001) also noted that organizational

characteristics, principal ownership, and labour union membership also have significant

impact on successful implementation of AMTs.

2.4 .7 Technological

Successful implementation of AMT depends on the mutual adaptation of the new

technology to the organization and the organization to the technology (Frohlich, 2002).In

fact the adjustment of technology to the organization and vice versa can ease the

accomplishment of new technologies and avoid management problems associated with

AMTs implementation (Yusuff et al.., 2004). In the academic world it is generally

believed that science and technology are crucial for successful implementation of AMTs

(Sower and Abshire, 2003) and (Jayarama et al, 2010). Clark (2009) and Sower and

Abshire (2003) noted that building competitive advantage through technology is not

achieved by mere investment in technology as doing so results in 50-75% failure rate.

Therefore implementing an appropriate technology is necessary to gain performance

targets and improve operational efficiency. Target and Tharp (2007) noted that AMTs

has enabled organisation to be low cost producers. Lack of previous experience in AMT

implementation negatively affects implementation of AMTs (Jonsson, 2000 and Sohal et

al.., 2001).

27

2.5 AMT IMPLEMENTATION PREDICTIVE MODEL

Udo and Ehie (2006) identified four AMT determinants that affect AMT implementation

which are triple C factors, self-interest factors, housekeeping factors, and literacy

factors. Within triple ‘C’ factors, Udo and Ehie (2006) determined that commitment had

a greater impact on achievable benefits than communication and co-ordination. Udo

and Ehie further argued that a believable cost justification has the capability to make

shop-floor operatives conscious of profit and loss issues, and has a potential to

enhance the company’s competitive position. The literacy factors relate to education of

the workforce. Investment in education of shop-floor operatives is directly related to

most benefits of AMTs Udo and Ehie (2006). This therefore implies that exclusive

competitive advantage is attained by those firms that keep pace with the changes by

updating their workers’ knowledge through in-service and external training. Udo and

Ehie (2006), proposed a model for successful implementation of AMT as illustrated in

Fig 2 below.

Figure 2.2 AMTs Implementation Predictive Model Ad opted from Udo and Ehie (1996, 2006)

28

2.6 Operational Efficiency Wojtczak (2002) defines operational efficiency as the ability to perform well or achieve a

result without wasted energy, resources, effort, time or money. Greene, (1997]

concurred with Wojtczack that operation efficiency involves producing a product at the

lower possible opportunity cost. Operational efficiency is measured in physical terms

(technical efficiency) or in terms of cost (economic efficiency) Koopmans (1951).

Operation efficiency has a direct effect on how quickly and cost-efficiently companies

can bring innovative new products to market to meet the insatiable consumer demand

for these products and profitability, market share and environmental sustainability

(Porcelli,2009).Technical efficiency parameters of measurement (product quality,

flexibility, productivity) will be the focal point of this study because manufacturing plants

do not control measures such as sales or market outcomes, (Cua, McKone and

Schroeder,2001).

2.7 BENEFITS OF AMTS

Each technology offers unique operational, strategic and marketing benefits (Abdullah,

and Hassan, 2012). The benefits of AMT implementation include increase in

productivity, enhanced plant flexibility, and improved product quality, reduction in

production costs (Schroder, 1997, Rischel and Burns, 1997, and Small, 2007).

According to Swamidass (1996) reduced cycle-time, market share growth, progress

towards zero-defects, return on investment and focused production are benefits

attributed directly to the implementation of AMT. As a result of these benefits AMT is

fast becoming an important source of sustainable competitive edge for manufacturers

(Dean and Snell, 1991). Successful implementation of AMT has been associated with

numerous tangible and intangible benefits which include inventory savings; reduced

floor space; improved return on equity; and, reduced unit costs (Kaplan, 1986).

Intangible benefits include enhanced competitive advantage; increased flexibility;

improved speed of response to market fluctuations; and, improved product quality and

reliability (Small, 2007; Sohal et al., 2001). This study will focus more on intangible

29

benefits of AMTs as they are good predictors of operational efficiency performance

(Cua, McKone and Schroeder, 2001).

2.7.1 Flexibility

Flexibility is an adaptive response to environmental uncertainty (Gupta and Goyal

1989). Upton, (1994) noted that flexibility is more that being adaptive to uncertain

environment but the ability to respond with minimum penalties in time and effort. The

same school of thought is echoed by Watts et al., (1993). D’Souza and Williams, (2000)

emphasizes that flexibility is a capability that can be used to gain competitive

advantage. The programmability of AMTs allows for manufacturing flexibility which

allows the production of differentiated products at low volumes without additional cost

(Swamidass, 1996). High degree of flexibility is attainable through the interchangeability

of the programmes and because users can switch machines from producing one kind of

component to another instantly at low cost (Kotha, 2009).

2.7.1.1 Types of flexibility

Slack (1990) identified four dimensions of flexibility which are mix, volume,

product/service and delivery. Suarez, Cusumano; and Fine.H (2008) differentiate

flexibility into four types mix, volume, new products, and delivery time flexibility. This

study will dwell on flexibility as classified by Cusumano and Fine because they are

generally accepted as measurement of operations and that they are inclusive of other

types of flexibilities by other authors like Suarez, Cusumano, and Fine.H (2008). The

significant overlap in definition of different types of flexibility, and the use of different

names to refer to the same type of flexibility is sometime confusing in the literature of

AMTs (Suarez; Cusumano, and Fine 2008).

2.7.1.2 Mix flexibility

Gerwin (1987) mix flexibility is the ability to produce a number of different products at

the same point in time. Mix flexibility hailed for economies of scope, thus allowing

production of a range of items at lower unit cost (Goldhar and Jelinek 1983).The product

30

variety, ensures optimum usage of resources and reduces the risk of lack of

responsiveness to market changes (Donald and Gerwin 2002).

2.7.1.3 Changeover flexibility

Changeover flexibility is the ability to quickly substitute new products for those currently

being offered (Donald and Gerwin 2002). Conflicting viewpoints exist as to the need for

changeover flexibility. The pro argument is based on the cost savings derived from

using essentially the same equipment for different products over time, and the service

benefits of being able to introduce a new product faster. The opposing argument states

that AMTs developments will possibly make a flexible manufacturing process obsolete

by the time new products are introduced (Sakurai, 2008). The other argument makes

the utility of changeover flexibility reliant upon the degree of market uncertainty (Stalk

and Hout, 2006).

2.7.1.4 Volume Flexibility

Volume flexibility relates to the easiness with which changes in the aggregate amount of

production can be achieved. This results in economies of scope as well as scale. It also

allows multiple product operations without the cost penalty related with traditional

technology (Paul, Prabhaker, Goldhar and David 2010). Economies of scope is defined

as any cost savings from a multiproduct situation and the absence of exit costs ( Panzar

and Willig, 2009). Volume flexibility is imperative in industries with unpredictable

demand (Suarez, Cusumano and Fine, 2008). Suarez et al. (2008) noted that

successful AMT correlated positively with greater volume flexibility.

2.7.1.5 Material Flexibility

Material flexibility is the ability of an AMTs to process unexpected variations in in-puts

and to contribution to reduction in defects thus enabling the strategic objective of

product quality (Donald and Gerwin, 2009).

31

2.7.1.6 Delivery Flexibility

Delivery flexibility relates to the extent to which delivery dates can be met. Jack and

Raturi (2002, and Hutchinson (1986), noted that, the advantage of an flexible

technology over a dedicated technology depends on the rate of new product

introduction. However this notion differs greatly with the common belief, that an and

automation flexible technology in general are always advanced. Fine(1991), Gupta,

Buzacott, and Gerchak (1988) notes that AMT implementers can be worse off because

the current analytical models ignore skills developments in providing flexibility to a firm.

In a study that related flexibility to business unit performance, Tombak (1998), found out

that flexibility had a positive effect on operational performance. This therefore means

flexibility is a determinant of competitive advantage.

2.7.2 Productivity

Productivity is the efficiency of converting inputs to outputs (Son and Park, 1987). AMTs

enhance manufacturing productivity by combining routine repetitive tasks into AMT

hardware and software. This minimizes rework cost, users’ direct labor costs and work-

in-process inventories (Zummato and O’Connor, 1992). Davis (1986) notes that high

productivity results in reduction in lead-time the same sentiments were echoed by

Meredith, (1987), Fiegenbaum and Karnani, (1991) and Swamidass, (1994). High

productivity is achieved through computerisation, which results in a single integrated

system. The system will control all the processing activities of firm to delivery of the

product to the final customer (Boyer, 1994) .Productivity is an inherent benefit of AMTs

which positively affects operation efficiency.

2.7.3 Product Quality ;

Process oriented AMTs enable greater consistency in the manufacturing process. This

enables organizations to achieve superior product quality (Swamidass1996). Smith and

Wright (2004) described product quality as the extent to which products meet the

expectations of customers, and he also noted that product quality improvement will lead

to customer satisfaction and higher sales. Mehrabi et al. (2002) argued that in the

current market environment, higher quality products at lower prices and timely response

32

to market demands are the primary factors for achieving competitive advantage. This

position is in line with many previous publications on AMTs (Beach et al., 1998 and De

Meyer, 1998). Product quality is multidimensional Lakhal (2009). To attain high quality

products Clark, (1996) advocated that management must adopt total quality

management because it focuses on awareness of quality within all organizational

processes like R&D manufacturing, Financial, procurements. Most of the definitions of

quality emphasise on the point of meeting customer needs and wants (Ueltschy and

Krampf, 2001) and that quality should match customer’s expectations and satisfy needs

and requirements of customers Edvardsson (1998). AMT provides adopting firms with

the opportunity to achieve a competitive advantage through offering higher quality

products with lower production cost.

2.7.4 Cost Reduction

Implementing AMT is strategic because, it enables firms to achieve economies of scale

and scope simultaneously and reduces the cost of product innovation, and allows the

organisation to increase its speed of response to market and competitive changes

(Andrew and Walters 2008). In a study by Sahal (1996) of seven Australian organisation

that implemented AMT it was concluded that generally the companies achieved the

benefits they expected amongst (reduction in production and labour cost). However,

Small (1999) warns that justification of AMT implementation based on such benefits

may be flawed noting that the implementation of AMT often resulted in marginal

decreases in the number production operators and marginal increases in average

labour costs. The study also concluded that, labour savings were not necessarily

achieve through reduction in operator and production cost. In a study by Sohal (1996) in

which the effects of AMT implementation in seven Australian organisations of varying

size (from 30 to nearly 3000 employees) was analyzed it was confirmed that in most

cases companies achieved the benefits that they expected from implementing AMT. .

Boer et al. (1990) stated that besides internal organisational factor economic factors

can also delay implementation of Amts. Boyer, (2007) and Nahm et al., (2006)

33

cautioned that evaluation of AMTs achievements must be done cautiously as it takes

some time for plants to realize the potential benefits because of the learning curve

associated with these technologies that . Separate studies by Krafcik (1988), Matthews

and Foo (1991), Swamidass and Kotha (1998), Cagliano and Spina (2000) conclude

that AMT investment alone does not lead to great improvements in a firm’s operational

performance if innovation does not extend to organizational and strategic issues

2. 8 AMT Use and Performance A firm’s technological resources determine its competitive success or failure (Cantwell,

1999). Strong technological resources enable lower unit costs, improve product quality,

and increase profitability of advantaged firms relative to others. In order to sustain

competitive advantage, the resources and capabilities should be difficult for competitors

to imitate (Hayes & Wheelwright, 1984).Proprietary technology is often the only aspect

of manufacturing technology that is attributed to High Performance Manufacturing

Schroeder &( Flynn, 2001). AMTs allow and maintain operational efficient (Hayes and

Wheelwright, 1984; Schroeder and Flynn,( 2001).

AMTs cannot attain competitive advantage by concentrating on only one performance

dimension. Instead it must excel on at least one dimension (cost, quality, delivery, cycle

time or flexibility) and other dimensions must at least exceed some minimum level in

order for the AMTs to be competitive (Ferdows and De Meyer, 1990 and Wheelwright

and Bowen,1996). The implementation of AMTs in modern manufacturing is intended to

improve operational performance and is a getaway for exploiting market opportunities

(Jaikumar, 1986 Meredith, 1987, Dean and Snell, 1991, and Parthasarthy and Sethi,

1992). AMTs implementation can result in achieving sustainable competitiveness

through flexibility, delivery, cost, and quality (Hayes and Wheelwright, 1984). Academic

researchers view AMTs becoming an important source of sustained competitive edge

for manufacturers Dean and Snell, (1991).

34

2.9 SOURCES OF COMPETITIVE ADVANTAGE

Porter says “ Competitive advantage means having low costs, differentiation advantage,

or a successful focus strategy competitive advantage grows fundamentally out of value

a firm is able to create for its buyers that exceeds the firm’s cost of creating it . Peteraf

(1993) defines competitive advantage as “sustained above normal returns.” She defines

imperfectly mobile resources as those that are specialized to the firm and notes that

such resources can be a source of competitive advantage because “any Ricardian or

monopoly rents generated by the asset will not be offset entirely by accounting for the

asset’s opportunity cost” Barney (2002, 9) says that “a firm experiences competitive

advantages when its actions in an industry or market create economic value and when

few competing firms are engaging in similar actions.” Barney goes a step further by to

tying competitive advantage to performance, arguing that a firm obtains above-normal

performance when it generates greater-than-expected value from the resources it

employs.

The definitions above do differ, there is confusion about how value is to be

conceptualized or measured (gains to trade, value to owners, increases in value to

owners); there is disagreement about the appropriate use of the opportunity cost

concept; and about whether competitive advantage means winning the game or having

enough distinctive resources to maintain a position in the game (Karsaa,2010).

2.9.1 Porters Five Forces Model of Competitive Adva ntage

Porter (1985) “five competitive forces” model analysis the competitiveness of an

industry and highlights that a firm’s profitability is influenced by its relative size

compared to its industry rivals, suppliers and customers. Porter’s model regards firm

resources as being homogeneous and therefore they see the concept of competitive

advantage as being ascribed to external characteristics. Accordingly, the industry forces

in which the firm operates requires that the firm adapts to these requirements in order to

survive in the long run. In addition, the firms that fail to adapt to these requirements will

be forced to exit from the industry/market (Porter 1985). The model is based on the

following two assumptions: companies in an industry are identical in terms of the

35

strategically relevant resources they control and the strategies they pursue (Porter,

1981) and resources in an industry are identical because an organization’s resources,

which they use to implement strategies are highly mobile in the market (Barney,1991).

The key to sustained competitive advantage is choosing an appropriate industry and

positioning itself within that industry. Competitive advantage is a position of superior

performance that a firm can achieve through the following generic strategies: cost

leadership, differentiation or focus (Porter,1985). Cost leadership is the achievement of

the lowest unit cost base of the industry, whereas differentiation is the ability to charge a

premium price for offering some perceived added value to the customer Porter, (1985).

2.9.1.1 Limitations of Porter’s Five Forces Model

In today’s rapidly changing environment, the static framework within Porters Five forces

Model is being tested and questioned, as an unknown company can take over the

market leader position over night Tidd et a (2005). As a result many scholars have

begun to look beyond Porters five forces model school of thought in order to better

understand the sources of sustained competitive advantage. The proponents of the

resource based view Teece et al., (1997 and Hamel and Prahalad, (1994) argued that

the structural approach represented by Porter’s competitive forces framework was

obsolete since the competitive environment has changed dramatically. Barney (2001)

argued that if strategic factor markets are perfectly competitive, even if firms are

successful in implementing strategies that create imperfect competitive product

markets, those strategies will not be a source of economic rents Barney & Arikan

(2001). This means that, theories of imperfect product market competition are not

sufficient for the development of a theory of economic rents. As a result, Barney &

Arikan (2001) underpinned that competitive advantage can be realized through the

resources, which an organisation has control over. He argued that organisations

specific resources were more likely to lead to competitive advantage (Barney and

Arikan, 2001).

2.9.2 Resource Based View Model for Competitive Adv antage

Resource Based View (RBV) is based on the idea that organisations’ resources are

heterogeneous, and therefore views competitive advantage from the perspective of the

36

distinctive competencies and resources that give a firm an edge over its competitors

(Korsaa, 2010). Barney, (1991) defined firm resources as all assets, capabilities,

organizational processes, firm attributes, information, knowledge, controlled by a firm

that enable the firm to conceive of and implement strategies that improve its efficiency

and effectiveness. Firm resources are strengths that firms can use to conceive of and

implement their strategies (Porter, 1981). Differences in resources, capabilities, or basic

competences are a source of a sustainable competitive advantage (Penrose, 1959) and

unique resource endowments serve to explain differences in firms’ operational

performances (Barney, 1991 and Barney et al. 2001). Valuable, rare, inimitable and

non-substitutable resources are sources of an organisations’ competitive advantage

(Barney, 1991). If the resources are difficult to imitate and substitute for, the result can

be longer-term, sustainable advantage and performance (Barney 2001 and Rumelt,

1984). It is evident from the discussion above that organisation implement AMTs in

pursuit exclusive capabilities. Invisible assets, for example information-based resources

such as technology, customer trust, brand image, control of distribution, corporate

culture, and management skills are the real source of competitive advantage because

they are hard and time-consuming to accumulate and they can further be used in

multiple ways simultaneously, and are inputs and outputs of business activity (Itami,

1987). If a company possesses a core competence and understands how to take

advantage of it, it can lead to sustained competitive advantages.

37

2.9.2.1 Limitations of the RBV

RBV focuses only on the internal resources or core competence of an organisation this

can limit the reach for learning new competencies. Therefore, core competencies can

also become „core rigidities in the firm, when established competencies become too

dominant” (Tidd et al., 2005). Hedman & Kalling (2003) criticized the RBV perspectives

for neglecting the obstacles to strategic dynamics and manaements .This view is

supported by Chan et al. (2004) who criticize it for its implicit assumption of static

equilibrium. Hence, competitive advantages stem from developing current capabilities

that are highly effective in responding to the organization’s environment yet, some firms

are not able to replicate those capabilities quickly Davenport et al., (2006).

One theoretical deficiency within the RBV as well the Porters five forces model is their

implicit assumption of static equilibrium (Chan et al., 2004), without addressing the

requirements for continued success in a volatile and dynamic environment which is the

order today.

2.10 DISADVANTAGES OF AMTS

While AMTs have been celebrated for offering an opportunity to improve operations

efficiency, the benefits are often elusive in the short term, new process introductions

tend to cause considerable and often persistent disruption to the running factory. Chew

(1985) quantified the costs of such disruptions. He found that productivity losses

associated with the introduction of new process equipment can equal or exceed the

original cost of the equipment, and that these effects can persist for two years or more.

Chew attributed the loses to development of more complex parts that create a difficultly

in planning the most efficient use of the material which results in a production process

bottleneck, resulting in an adverse effect on throughput times. The investment in AMTs

is capital intensive it could involve several millions of dollars and specialized

engineering personnel are required to introduce and operate such a system.

38

Adoption and implementation of AMTs creates uncertainty, Gupta et al. (1998) argued

that the implementation of AMT often leads to increased uncertainty in the

manufacturing environment.

Figure 2.3 Conceptual framework adopted from Kuma r (2009)

2.11 Chapter Conclusion

This chapter reviewed literature on the implementation of AMTs, operation efficiency,

keys success factors and benefits of implementation of AMTs available in literature from

experiences in technologically advanced countries. However the reviewed literature is

weak as it does not provide solutions to the research objectives as outlined in chapter 1;

hence the need to carry out this study that evaluates the effectiveness of implementing

AMTs on operation efficiencies from a Zimbabwean perspective. The study will be

structured based on the conceptual framework in figure3 and the research methodology

discussed below.

(Assumed Causes)

• Strategic fit • Senior Management Commitment • Technical skills • Corporate culture

Independent Variable

(Assumed Effects)

• Customer satisfaction • Gaining Market share • Improved Profitability • Short lead Time

Dependent Variable Extraneous Variables

Extraneous Variables

• Strategic Misfit • Lack of Senior Management

Commitment • Lack of Technical Skills • Inhibitive Corporate Culture

Key Success Factors of AMTs Benefits of AMTs

39

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter outlines the research philosophy, approach, design and methods used to

address the research problem as outlined in Chapter 1. This chapter is made up of

three main sections which are the research philosophy, research approaches, and

research design or strategy. Each will be dealt with in brief.

Saunders et al…, (2003) referred to research methodology as the theory of how

research should be undertaken. A research methodology serves an important purpose

of identifying the research tools and strategies to be applied and relate their use to the

objectives (Ahmad Wani, 2011). According to Biggam (2008) a research methodology is

composed of the following key topics Fig 3.1

Figure 3.1 Research Methodology Source: Ada pted from Biggam, (2008)

40

This chapter will be discussed in line with Biggams recommendations. This research

sought to evaluate the impact of implementing advanced manufacturing technology on

operation efficiency the roof tile manufacturing industry -Case of Zimtile (2009- 2013).

3.2 RESEARCH DESIGN

The research design is the logical sequence that connects the empirical data to the

study’s initial research questions and ultimately to its conclusions Yin, (2008). This

therefore means that it is an essential statement of the object of the study and the

strategies for collecting the evidences, analyzing them and reporting the findings Yin,

(2008).

The researcher used a ‘representative’ single case design (Yin, 2008) of Zimtile. Yin

(2008) argued that one of the five rationales for a single case is when a case is

representative or typical. Zimtile was chosen as case study organisation because it

recently acquired a new plant and output it’s the largest in the concrete roof tile

manufacturing industry (CIFOZ, 2011). The elements of the research design will be

given in greater in detail in sections 3.7 and 3.8.

3.3 RESEARCH PHILOSOPHY

According to Bryman and Bell (2003), research philosophy can either be qualitative

(deductive post positivism) or quantitative (inductive /positivism). The same school of

thought was asserted to by White (2000). Easterby-Smith et al (2009) noted that it is

important for a researcher to study and understand research philosophy because:

• It helps the researcher to refine the overall research strategy to be used,

• Enables and assists the researcher to evaluate different methodologies and

avoid inappropriate use and unnecessary work by identifying the limitations of

particular approaches at an early stage.

• It helps the researcher to be creative and innovative in either selection or

adaptation of methods that were previously outside the research.

41

3.3.1 Quantitative approach Quantitative research relies primarily on the collection of quantitative data (Denzin and

Lincoln 2005) and it is deductive in nature (Lee, 1999). Hair,(2003) posited that

quantitative approach is for hypothesis testing. The quantitative approach is generally

for quantifiable data and usually expressed in statistics and numeric. The deductive

nature of quantitative research is aligned to scientific research and involves the

development of theory, which is subjected to a rigorous test (Saunders et al., 2009).

3.3.2 Qualitative approach Wilson (2006) defined qualitative approach as an unstructured research methodology,

which is carried out using a small number of carefully selected individuals to produce

non quantifiable insights into behaviour, motivations and attitudes. It emphasizes the

importance of looking at variables in the natural setting in which they are found as

interaction between variables is important (Jacob, 2009). Qualitative methods use

open-ended interviews to explore opinions, behaviours and attitudes of individuals or

groups of individuals (White ,2000). The data collected using such methods is usually in

the form of descriptions.

3.3.2.1 Advantages of qualitative methods Qualitative methods provide a deeper understanding of social phenomena than would

be obtained from purely quantitative data (Silverman, 2000). Qualitative methods are

flexible as compared to the quantitative methods the flexibility is derived from the fact

that qualitative methods allow more spontaneity and adaptation of the interaction

between the researcher and the respondent and the use of open-ended questions

which allow the respondents to respond in their own words and can thus provide more

detailed information unlike the quantitative methods that are rigid and require

respondents to choose from fixed responses( Mark et al, 2005).

42

3.3.2.2 Disadvantages of Qualitative Methods The very subjectivity of the inquiry leads to difficulties in establishing the reliability and

validity of the approaches and information. It is also very difficult to prevent or detect

researcher induced bias and its scope is limited due to the in-depth, comprehensive

data gathering approaches required, (White 2005).

3.3.3 Selecting the suitable approach

According to Yin (2008) the choice of whether to use quantitative or qualitative research

depends on the nature of the research, the type of information, availability of resources

and the context of the study. Proctor (2008) concurred with Yin (2008). However, he

further noted that consistency between the aim of a research study, the research

questions, the chosen methods, are the essential underpinning the rationale for

selecting a suitable research approach.

Given the research problem as outlined in Chapter 1, the best fit was to follow the

qualitative paradigm. The choice for qualitative paradigm is in line with parameters

identified by Hussey and Hussey (2010). A qualitative paradigm produces qualitative

data; this would fit well with the case study approach which is explained in section 3.4.5

i) Data is rich and subjective: the qualitative data would be rich by nature, and the

gathering process unstructured interviews and questionnaires would be subjective

due to the level of involvement of the researcher.

ii) The location is natural: the setting for this research was in a manufacturing

organisation.

iii) Dependability is low: the possibility of lower dependability data would be countered

by the use of triangulation.

3.4 RESEARCH STRATEGY

Saunders et al (2009) described a research strategy as a generic plan that guide the

researcher to answer the research questions. There are various different research

strategies with distinctive characteristics available from which a researcher may select

from, Easterby-Smith et al.

as illustrated below:

Fig 3.2 Research Strategy Alternatives adap ted from Biggam(2008)

3.4.1 Survey A survey is often used where large volumes of data are involved with quantitative

methods of analysis. This

collect research data (Zikmund, 2008

attitudes and descriptions as well as understanding cause and effect relationships

(Ghauri & Gronhaug, 2000). The use of surveys, as postulated by Galliers (2005),

permits the researcher to study more variables at one time than is physically possible in

laboratory or field experiments. The major weakness of survey research strategy is that

it is very difficult to realize insights relating to the causes of or processes involved in the

phenomena measured (Galliers, 2005

because it involves large samples not suitable for a case study.

Ethnography

Archival

et al., (2008); Collis and Hussey, (2009); Saunders


A survey is often used where large volumes of data are involved with quantitative

usually involves the use of questionnaires or interviews to

(Zikmund, 2008). The questionnaires assist in getting opinions,

titudes and descriptions as well as understanding cause and effect relationships

2000). The use of surveys, as postulated by Galliers (2005),


ratory or field experiments. The major weakness of survey research strategy is that


(Galliers, 2005). A survey could not be used for this st

because it involves large samples not suitable for a case study.

Research Strategy

Alternatives

Field/Labor-atory

experiments

Survey

Action Research

Case Study

Ethnography

Archival

43

, (2008); Collis and Hussey, (2009); Saunders et al., (2009)


A survey is often used where large volumes of data are involved with quantitative

usually involves the use of questionnaires or interviews to

). The questionnaires assist in getting opinions,

titudes and descriptions as well as understanding cause and effect relationships

2000). The use of surveys, as postulated by Galliers (2005),


ratory or field experiments. The major weakness of survey research strategy is that


). A survey could not be used for this study

Action Research

44

3.4.2 Experiment

Hakim (2000) argued that an experiment is for studying causal links, for example

whether a change in one independent variable will produce a change in another

dependent variable. Experiment as a research strategy was not considered for this

study because the researcher wanted to study the organisation in its natural state.

3.4.3 Action research

This may be described as a participatory and democratic process concerned with

developing practical knowledge in pursuit of a better understanding of the situations in

which the practices are carried out (Reason and Bradbury, 2001 and Carr and Kemis,

1986).

3.4.4 Observation

Observation can either be; participative observation or structured observation

(Saunders et al…,2003). Observation is a purposeful, systematic and selective way of

watching and listening to an interaction or phenomenon as it takes place. Observation

can take place in a laboratory setting or in a natural setting. Participant observation is

when a researcher participates in the activities of the group being observed in the same

manner as its members, with or without their knowing that they are being observed,

(Saunders et al, 2003). Non participant observation is when the researcher does not

get involved in the activities of the group but remains a passive observer, watching and

listening to its activities and drawing conclusions from this (Saunders et al, 2003).

Observation was not used in this research because it was not possible to observe

managers’ performing their duties as it involves mental effort than manual.

3.4.5 Case Study

According to Yin (2003) a case study is an empirical inquiry that investigates a

contemporary phenomenon within its real-life context, especially when the boundaries

45

between phenomenon and context are not clearly evident. Yin (2003) further argues

that it is the preferred research strategy when the phenomenon and the context are not

readily distinguishable because the researcher is able to investigate the research

problem in depth and at the same time carry out intensive analysis of the subject of the

case study. A case study allows several data collection methods such as

questionnaires, interviews and documentary analysis during the same research study.

3.4.6 Justification for Selecting Case Study

Yin (2003) recommended that a research strategy must be selected based on the

following conditions; relevance, feasibility, accessibility and application. Saunder et al

…, 2009) concurred with Yin (2003). However, Saunders et al...,(2009) brought a new

dimension that a research strategy has to be selected based on the amount of time

and resources available, and the philosophical underpinnings of the researcher. Both

Yin (2003b) and Saunders et al..., (2009) reaffirmed that, although various research

strategies exist, there are large overlaps among them and hence it is imperative to

select the most advantageous strategy for a particular research study. This research will

be largely be guided by Yin (2003) recommendation for adopting a case study as a

research strategy.

The researcher chose a case study as a best fit for the research in line with reasons

mentioned by Yin (2009) as stated above. Yin (2003) defines relevance as the extent to

which the organization selected for the case study suits the purpose of the study. Zimtile

was the selected organization and was suitable for the purpose of the study because

based on CIFOZ (2011) statistics, it was the largest construction company in terms of

market share and it had recently invested and implemented AMTs. Therefore, Zimtile as

a dominant player in the construction industry was relevant to be selected as case study

organization to conduct the research study.

According to Yin (2003), feasibility is another factor to consider when selecting a case

study organization. Feasibility of the research conducted refers to the idea that the

researcher should be able to conceptualize, plan, execute and report on the research

46

study with the case study organization. Zimtile offices were reachable within Zimbabwe

and its head office is located in Harare. The proximity of the head office allowed the

researcher to carry out the study without transport challenges and the respondents were

readily available.

Accessibility is another factor identified by Yin (2003). Is refers to how easy the

researcher managed to secure full cooperation of the case study organization. Zimtile

was accessible because the researcher is an employee of Zimtile, management

believed that the research would benefit the organisation and respondents at all levels

were willing to participate in the research.

In terms of applicability as expounded by Yin (2003), the nature of business of Zimtile

made the case study organization applicable to evaluate the impact of implementing

AMTs on operation efficiency in tile manufacturing organisations in Zimbabwe.

Further to Yin (2003) justification for the usage of case study as discussed above

Proverbs and Gameson (2008) highly recommended case study as a strategy for

researching on construction industry. Zimtile is in the construction industry which makes

the choice of using a snap short case study very appropriate. A case study enhances

the ability of a researcher to obtain direct experience of the ways in which actors

interact in a natural setting (Sofaer, 2006). This observation also influenced the

researcher to consider the use of case study for this research project. As it enabled the

researcher to have an in depth knowledge of the organizational dynamics during

implementation of AMTs. Isaac and Michael (1995) gave a view that if a case study is

exploratory in nature, the outcome of it may provide information and possible hypothesis

to guide future research in the domain under study. The study to evaluate the impact of

implementing AMTS on operation efficiency in Zimbabwe tile manufacturing industry

could be one of the first studies hence it will lay foundation for further studies by other

researchers.

47

3.4.7 Critic of Case Studies

The use of a case study, however, has its own weaknesses that researcher needs to

consider. Yin (2003) identified lack of rigor, being bias, difficulty to generalize, and

taking too long and producing hefty documents as some of the common criticisms of

case study research. According to Burns (2000), a case is relatively subjective in that

the researcher may be selective in interpreting results, in making observations and

interpretations that may not be easily checked or verified .In response, it was noted that

the quality of a case study can be enhanced by following the four tests that are common

to empirical research; construct validity, internal validity, external validity and reliability

(Yin, 2003 and Fellows and Liu, 2008).

3.5 POPULATION AND SAMPLING

Population is the total collection of elements about which we wish to make some

inferences (Cooper and Schindler 2008). According to Saunders et al..., (2003), the full

set of cases from which a sample is taken is called the population. The study results will

be generalized on this group (the population). The population for the study is Zimtile

management based at Harare as illustrated in table below.

48

Table 3.1 Research Population

3.5.1 Sampling

Sampling is “the selection of a fraction of the total number of units of interest to decision

makers for the ultimate purpose of being able to draw general conclusions about the

entire body of units” Parasuraman, (2001:356)., Saunders and Thornhil (2003) notes

that a conclusion can be made from the sample about the population to achieve the

research objective. Time, financial and other resource constraints make sampling

convenient and cost effective especially, when the population is very large Saunders et

al...,(2003). Cooper and Schindler (2003) argue that with sampling, it enables greater

opportunity to conduct quality interviews, achieve better supervision of the research

team, investigate and verify any missing, wrong or suspicious information. Sampling

enhances the speed with which information is available and it plays an important role in

the process of designing a questionnaire.

Population Sample

Management Level Size Positions Sample Size Sampling Technique

Top Management

4

• General Manager

• Works Manager

• Finance Manager

• Sales & Marketing

Manager

4

Judgmental

Middle Management 7 • Sale Manager

• Accountant

• Export Manager

• Human Resources

Manager

• Quality Assurance

Manager

6

Judgmental

Lower management 6 • Sales Executive

• Production Supervisor

• Quality Control Officer

5

Judgmental

Total 17 15

49

To ensure that the chosen sample is a true representative of the population, the

researcher used stratified random sampling to choose the sample. This involved

grouping management into top, middle and lower management.

3.5.2 Sampling unit

A sampling unit is a member of the population that may be selected for sampling. It is

important for study planners to be very specific when defining a sampling unit’s

characteristics with respect to space and time. Zimtile as an organisation is the

sampling unit for this study.

3.5.3 Sample Size

The sample size in qualitative research study is determined by the study’s research

objectives and characteristics of the study population. Whilst there are no closely

defined rules for sample size Baum (2002) and Patton (1990), noted that sampling in

qualitative research usually relies on small sample size. Sample size is important for

economic and ethical reasons DePaulo (2013). Russell Lenth (2011) noted that, an

under-sized sample is inadequate to produce useful results, while an over-sized one

uses more resources than are necessary. There is no consensus on the right sample

size for qualitative research. Guest et al., (2006) recommended fifteen as the smallest

acceptable sample. The sample size for this study is 15 managers from different

management stratum as shown in Table 3.2. The sample size has been chosen in line

with Guest et al (2006) recommendations.

3.5.4 Sample Methods/ Techniques

Sample selection determines whether probability or non-probability sampling can be

applied for the type of research in progress Walker (2001). Basing on the nature of the

research questions and objectives, as well as chosen research strategy and the

available time and other resources non-probability sampling method will be applied in

this study.

50

3.5.5 Probability Sampling

Probability or representative sampling is sampling method where the chance of each of

case being selected from the population is known and is equal for all cases (Saunders

et al..., 2003). Probability sampling techniques are primarily used in quantitatively

oriented studies and this involves choosing a sample from a population, or from a strata

of a population, in a random manner where the probability of inclusion for every member

of the population is determinable (Tashakkori and Teddlie, 2003). Probability sampling

aims to achieve representativeness, which is the degree to which the sample accurately

represents the entire population. Probability sampling includes the following methods

explained below:

• Simple Random Sampling

This method ensures that each item in the entire population under study has an

equal chance of being included in the sample (Zikmund and Babin 2009). The

probability of a unit being selected is not affected by the selection of other units from

the accessible population (Teddline and Fen Yu 2007). The main advantage of

simple random sampling is that it tends to yield representative samples and one of

its weakness is that it fails to take advantage of the knowledge of the population the

researcher mighty have (Binson et al 2000).

3.5.6 Non- Probability Sampling

Saunders et al., (2003) argued that in non probability sampling, the probability of each

case being selected from the total population is not known. The non-probability

sampling methods include the following:

• Convenience sampling,

• Quota sampling

• Judgmental sampling.

Non probability sampling or judgment sampling is based on subjective judgment

(Salant, 2011). Non probability sampling is a process where probabilities cannot be

assigned to the units objectively, and hence it becomes difficult to determine the

reliability of the sample results in terms of probability (Yamane, 2006).

51

Non probability sampling is well suited for exploratory research intended to generate

new ideas that will be systematically tested later. Non probability sampling includes

convenience sampling, quota sampling and purposive sampling.

a) Convenience Sampling:

Convenience sampling is a method of choosing subjects who are available or easy to

find (Saunders et al.., (2007). Advantages to this design are: it is easy to do, particularly

with a captive audience, and in some studies the response rate is high. The drawback

to this methodology is the lack of sampling accuracy. Because the probability of

inclusion in the sample is unknown for each respondent, none of the reliability or

sampling precision statistics can be calculated and hence generalizations about the

total population will be limited. Despite the draw backs of convenience sampling, it is

employed by researchers because of its easy and cost effectiveness.

b) Purposive Sampling

Judgmental sampling is where the researcher selects units to be sampled based on

their knowledge and professional judgment (Gastillo, 2009). Gastillo(2009) further notes

that purposive sampling involves purposely handpicking individuals from the population

based on the authorities or the researcher's knowledge and judgment. This is done with

the view to select a more representative sample that can bring more accurate results.

Judgmental sampling design is usually used when a limited number of individuals

possess the trait of interest. It is the only viable sampling technique used to obtain

information from a very specific group of people.

3.5.7 Advantages of purposive Sampling

According to Saunders et al..., (2003) the main advantages of purposive sampling are:

• Cost effectiveness and efficient

• Can avoid areas you are not concerned about

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• Can sample more intensely in areas you are concerned about

• It is perceived to result in better coverage in areas of concern,

3.5.8 Disadvantages of Purposive Sampling

The main weaknesses of purposive sampling are with the authority and in the sampling

process both of which pertains to the reliability and the bias that accompanies the

sampling technique. Usually there is no method to evaluate the reliability of the expert

or the authority. To mitigate on sampling error brought by the expert it is recommended

to use most experienced authority in the field of interest. The sampling process, is

usually biased since no randomization was used in obtaining the sample and on the

other hand members of the population did not have equal chances of being selected.

The consequence of this is the misrepresentation of the entire population which will then

limit generalizations of the outcome of the study (Gastillo, 2009).

3.6 Justification for adopting Purposive Sampling

Considering the nature of the research, the purposive sampling method was preferred

over other sampling methods .The choice is in agreement with the argument by Miles

and Huberman (2004:27) who noted quite often than not, qualitative samples tend to be

purposive rather than random. Powell (2008) a guru in purposive sampling noted that, it

is sometimes best to select a sample based on one's knowledge of the population and

the objectives of the research. This is supported by Leedy and Ormrod (2001) who used

the term purposive sampling to describe where people or other units are chosen for a

particular purpose, implying the use of judgment on the part of the researcher. Further

to the above reasons Environment Protecting Agency (EPA) (2002) noted that

purposive sampling method is best used when:-

• An extremely small number of samples will be selected for analysis/characterization.

• There is reliable historical and physical knowledge about the feature or condition

under investigation. The researcher being an employee of Zimtile has access to

historical and knowledge about the organisation under study

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• Schedule or emergency considerations preclude the possibility of implementing a

statistical design. The study as noted in section 3.1.3 is purely a qualitative research.

3.7 SOURCES OF DATA

Sources of qualitative data can either be primary, or secondary (Zikmund,2000).

Sources of qualitative data play an important role in impact evaluation studies by

providing information useful to understand the processes behind observed results

(Ghauri, Gronhaung 2005). The selection of the appropriate data collection method

depends on the following factors:

• Nature, scope and object of enquiry

• Availability of funds

• Time factor

• Precision required.

Different sources of data have their own strengths and weaknesses, and therefore a

good case study should use as many study methods as possible to complement each

other. In this study, both primary and secondary data was collected. The use of both

methods was done to try and improve on the quality and validity of the data gathered.

3.7.1 Primary data

Primary sources of data are firsthand accounts that are not based on other written

works, nor interpreted by other researchers (Bailey,1995).The researcher used the

questionnaire and personal semi structured interviews to obtain primary data. The

researcher chose to collect primary data because it is easy, inexpensive to collect and it

is more relevant to the study in that it enables the researcher to get first hand

information about the impact of AMTs on operation efficiency in the roof tile

manufacturing industry.

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3.7.2 Secondary data

Pearce (1994) described secondary data sources as those where information has been

collected and structured by other researchers. Secondary data should be examined

before any primary research is done, this was done in chapter 2 (Literature review)

because there is need to examine what has already been generated about the topic and

if it will be suitable to meet the research objectives (Blaxter et al., 2006). The researcher

also considered that secondary data is not as expensive and time consuming as

primary data and that it is usually easy to verify.

3.7.3 Data Collecting Methods

Data collection is the process of gathering and measuring information on variables of

interest, in an established systematic fashion that enables one to answer stated

research questions, test hypotheses, and evaluate outcomes (Finnerty, 2007). Powell

(1997) identified three methods for collecting qualitative data, which are questionnaires,

interviews and observation and further noted that they can be used with more than one

methodology. This research will be guided by Powell (1997) classification. The selected

data collection methods for this research are discussed below.

3.7.3.1 Interviews

Qualitative researchers rely quite extensively on interviews. According to Kahn and

Cannell (2007) an interview is a conversation with a purpose. Research interviews differ

in terms of the level of structure they can be classified as structured, unstructured or a

hybrid of the two semi- structured. The level of structure influences the kind of data

collected. Highly structured interviews can collect a lot of quantifiable data and work well

in situations where you cannot record the interview in full. On the other hand less

structured interviews work well when you want to collect primarily qualitative data.

3.7.3.2 Structured Interview

In structured interviews, the questions are fixed and they are asked in a specific order

(Korpel 2005). Structured Interviews emphasize reliability (Langley, 1987). Structured

55

interviews employ mostly close ended questions. Multiple respondents will be asked

identical questions, in the same order. Structured interviews are often used where there

is a large samples and the data needs to be generalized to a large population. This

means structured interviews are generally quantitative in nature.

Structured interviews have several advantages listed below:

• Can reach a large sample

• The researcher has full control of the interview.

• A representative sample is possible and results can be generalized

• Can do face to face interview where electronic recording is not possible

• Can ensure questions are fully understood

• Response rate is high

• All respondents are asked the same questions in the same way. This makes it easy

to replicate the interview.

The short comings of structured interview are:

• The quality and usefulness of the information is highly dependent upon the quality of

the questions asked. The interviewer cannot add or subtract questions.

• There is limited scope for the respondent to answer questions in any detail or depth.

• Time consuming in terms of data collection.

• Cause and effect cannot be inferred

Structured interviews are suitable for quantitative research hence they will be irrelevant

for a qualitative research which require an in-depth understanding of the research

problem.

3.7.3.3 Unstructured Interview:

Minichiello (1990) defines unstructured interviews as interviews in which neither the

question nor the answer categories are predetermined. Questions are not pre-set;

although there are usually certain topics that the researchers may wish to have

56

some key questions formulated in advance. Unstructured interviews employ mostly

open ended questions.

Advantages of Unstructured Interview are listed below:

• Provides highly detailed and valid data

• Extremely flexible.

• Natural and unrestricted, it can reveal more about the participant

Limitations of unstructured interviews are:-

• Not standardized so cannot be replicated

• Problem with reliability and generalizing.

• Difficult to quantify and analyze results

• Time consuming in both processing and gathering the data.

3.7.3.4 Semi Structured Interview:

A semi structured interview is an interview where the interviewer and respondents

engage in a formal interview. The interviewer uses prepared questions as a guideline to

lead the interview but is flexible to follow topical issues in the conversation that may

stray from the guide when it is deemed appropriate (Freestone 2012).

Advantages of semi-structured interviews are:

• Depth of information

• Respondent can influence the topic, so unexpected issues/topics emerge

• Researcher can probe to understand perspectives and experiences

• Topic guide ensures that a core list of questions is asked in each interview

• Because the order of questions is not fixed, flow and sharing of views are more

natural.

Limitations of semi-structured interviews are:

• Trained interviewers are needed to probe without being directive or judgmental

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• Analysis of findings is difficult it must be done by people who did the interviews

• Researcher has to avoid bias in analysis

• Researcher needs to know something of the local culture to capture the interviewees

real meaning

• Analysis is time-consuming

• Difficult to generalize findings.

3.7.4 Justification for using semi structured inter views

Semi structured Interviews as a research method for gathering qualitative data was

preferred to other methods because:

• Interviews of this type are suited to working with small samples and are useful for

case study (Freestone 2012).

• Semi- structured interviews enable deep exploitation of experiences.

• Interviewee has freedom in responses thus adding depth to the interview but

interviewer remains in control allowing time management by the interviewer to be

easy (Drevel, 1995).

• Gives freedom in the sequencing and wording of question in accordance to

interviewee responses (Robson 2000).

• Interpretation bias is reduced (Mitchell and Jolely2007) as it allows the researcher to

validate interviewees answer through monitoring body language.

3.8 QUESTIONNAIRE According to Burns (2000), a questionnaire is a list of written questions that can be

completed in one of the following ways:

• When the researcher is not present (postal questionnaire). It is ideal if respondent

want to remain anonymous.

• With the researcher present(structured questionnaire)

Basing on the type of question employed a questionnaire is either:

• Closed ended

• Open ended

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Closed ended questionnaire the researcher provides suitable list of responses and are

suitable for quantitative data. On the other hand open ended questionnaire, the

researcher does not provide the respondent with possible answers and are suitable for

qualitative data (Joseph et al…, 2008).

Advantages of questionnaire are;

• Questionnaires are generally easy to create, code and interpret.

• They are easy to standardise, this makes questionnaires a very reliable method of

data collection.

• The chances of participants to answer the question honestly are increased by the

opportunity for respondent to remain anonymous.

Disadvantages of questionnaire are:

• The design makes it difficult for researcher to explore complex issues and opinions

(data depth is limited)

• The questionnaire (postal) can be completed by wrong person. This may

compromises credibility and dependability of the study.

• Response rate for postal questionnaire is very low.

3.8.1 Justification for Using Questionnaire

The researcher chose qualitative questionnaires to collect data because:

• Questionnaires and interviews are often used together in qualitative studies to

generate confirmatory results (Brookhark and Durkin, 2008).

• Commitment which is required by respondents to questionnaires is low this

encourages high number of participants and response rate.

3.8.2 Questionnaire Design

The research questions were designed taking into consideration the research objectives

as outlined in Chapter 1. In designing the questionnaire care was taken to keep the

wording of the questions simple to avoid confusion that could result in inaccurate

response or respondents abandoning the

the questions was kept neutral to avo

(Dolle, 2001). To maximize response rate the questionnaire was kept short

al.., 2001). Low response rate reduces the sample size whi

(William, 2008).

3.8.3 Structure of the questionnaire used for the researc hThe structure of the questionnaire was divided into sections

represented the different research objectives. The following depicts structure of the

research questionnaire used for the o

Fig 3.3 Structure of Questionnaire

Section C:Acheived

Benefits of AMTs

3.8.2 Questionnaire Design




sponse or respondents abandoning the questionnaire (Williams,

the questions was kept neutral to avoid introducing bias by suggesting a response

e response rate the questionnaire was kept short

01). Low response rate reduces the sample size which can introduce bias

Structure of the questionnaire used for the researc h The structure of the questionnaire was divided into sections where


questionnaire used for the o the study.

Structure of Questionnaire

Structure of Questionnaire used for the

research

Section A: Respondent's

Profile

SectionB:Necessary Key

Success Factors

Benefits of AMTs

59




questionnaire (Williams, 2003). The tone of

id introducing bias by suggesting a response

e response rate the questionnaire was kept short (Edward et

ch can introduce bias

where each section


Section C:Expected

Benefits of Implementing

AMTS

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3.8.4 Questionnaire Piloting

The initial draft of the questionnaire was piloted with the three levels of managers.

Manager’s consent was sought before the pilot was carried. During the pilot the

researcher noted the time taken by each participant to complete the questionnaire .The

researcher also sought the participant comments and opinion about the questionnaire.

Face to face pilot allows participants to give immediate verbal feedback about

questionnaire and thus contributing to an assessment of face credibility.

3.9 Data Analysis and Interpretation

Data analysis and interpretation are required to organize and understand the data.

According to Yin (2003:109), data analysis consists of “examining, categorizing,

tabulating, testing or otherwise recombining both quantitative and qualitative evidence

to address the initial propositions of a study”. There are different techniques for

analyzing data and the choice of technique depends on a combination of factors which

include the research question, theoretical foundation of the study and the

appropriateness of the technique for making sense of data (Kawulich,2005). The

researcher has adopted Langley’s (1999) narrative techniques for analyzing data for this

study because narrative techniques provide insights into decision making (O.Connor,

1997) or the processes of knowledge transfer (Darwent, 2000). This is relevant because

one of the main objectives of this study is to recommend to decision makers the key

success factors of implementing AMTs. The research sought to gain insight regarding

the impact of implementation of AMTs on operational efficiency in Zimtile

(Beech,2000;and Boje 1991).

Narrative data analysis involved the following activities:

• Data reduction

• Coding

• Data Interpretation

To guarantee good data reduction the researcher read and re-read the text .This

enabled the researcher to gain deeper knowledge of the data and at the same time it

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allowed the researcher to separate value adding and none value adding data. The

researcher organized the data by questions this was achieved by looking across all

respondents and their answers in order to identify consistence and differences. Data

coding was achieved by using both emergent and preset categorizing (Powell, 2003).

Because data collection and analysis processes tend to be concurrent, with new

analytic steps informing the process of additional data collection and new data informing

the analytic processes, it is important to recognize that qualitative data analysis

processes are not entirely distinguishable from the actual data collection (Thorne,2013).

To conduct qualitative analysis Microsoft excel and Access were selected to facilitate

the analysis process of all collected data.

3.10 CREDIBILITY AND DEPENDABILITY

Credibility and dependability are very important elements when researcher analyzes the

data collected through qualitative research.

3.10.1Credibility

According to Merrian (2008) a qualitative investigator, credibility deals with the question,

“How congruent are the findings with reality”. Lincoln and Guba (2000) argued that

ensuring credibility is one of the most important factors in establishing trustworthiness.

To ensure credibility of the study the researcher adopted appropriate well recognized

research methods (Yin 2003) as outline in Section3.4.5 above. Furthermore a thorough

literature review on the impact of AMTs on operation efficiency was done to allow the

researcher gain deeper understanding of previous research work and research

methods. Iterative questioning was also employed to probe for more data during

interviews.

3.10.2 Dependability

Kumar (2005) states that dependability refers to the quality of a measurement

procedure that provides repeatability and accuracy. In any qualitative research, there is

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need for the researcher to generate dependable information such that if the same

survey were carried out, it would repeatedly generate the same results (Neuman, 2003).

Dependability of the study was achieved through detailed description of the research

design and its implementation and the operational detail of data gathering as outlined in

Section 3.3 and Section 3.5.1 respectively.

3.11 ETHICAL CONSIDERATIONS

Numerous ethical considerations were met by the researcher before commensuration of

this study. Firstly the researcher sought permission to carry out his research from the

managing director of Zimtile. Data collection involved interviewing; meaning personal

relationship could raise significant ethical issues (Orb et al…, 2001and Hofman, 2004).

In the research the fiduciary relationship that existed between senior management

(researcher) and junior managers was acknowledged. To ensure that a potential

exploitative relationship would not occur between researcher and junior mangers the

junior managers volunteered to participate in the interviews. Further to this the use of

informed process consent ensured that this willingness was continued throughout the

data collection. Semi structured interviews were used to collect data the use of

interviews could raise ethic issues regarding privacy and confidentiality. The researcher

ensured confidentiality and privacy of the participant through coding and use of pseudo

names to replace identifying characteristics such as occupation, name and salary

grades on all date collected. The researcher also ensured that the codes and

questionnaire used were properly secured to avoid misuse.

3.12 CHAPTER CONCLUSION

This chapter provided the description of the methodology applied. The research design,

research philosophy, research strategy, population and sampling techniques, data

collection methods, research procedures and research limitations and ethical

consideration to the research were discussed. The data collected was primarily based

on personal responses and was collected through the research questionnaire and semi

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structured interviews. The questionnaire had a combination of both qualitative and

quantitative questions. In this research, a case study was adopted to gain intensive

knowledge about the phenomenon using the questionnaires and interviews. The next

chapter will present, analyze and interpret the data.

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CHAPTER 4

4.0 RESEARCH FINDINGS AND ANALYSIS

4. 1 INTRODUCTION

In this chapter the researcher presents the research findings and an analysis of the

results. The major issues discussed focused on the evaluation of the impact of

advanced manufacturing technology on operational efficiency in the concrete roof tile

manufacturing industry. This chapter also draws together the issues of this study and

links it to the literature and research proposition.

4.2 KEY RESPONDENTS

Face to face interviews were carried out with all senior management who are the

strategy formulators. Senior management included the Managing Director, Works

manager and the Sales and Marketing Manager. Questionnaires were administered to

middle and line managers who are the strategy implementers. To ensure that the

research objectives are covered the questions asked covered the following areas:

• Demographics

• The key success factors of implementing AMTs at Zimtile.

• The expected benefits of implementing AMTs at Zimtile.

• Achieved Benefits of Implementing AMTs at Zimtile

4.2 Demography of the Respondent

The profile of the respondents was grouped into management hierarchy, education

level, department and number of years spent working for Zimtile as illustrated in Table

4.1 below. These characteristics played a significant role in determining the level of

maturity of the respondents and the understanding of the impact of advanced

manufacturing technology on operation efficiency, as it is envisaged that the more years

employees stay in the same organization, the more experienced and mature they

become.

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Table 4.1 Respondent Demographic profiles

Respondent Professional/

Academic

Qualification

Management

Hierarch

Years Employed

with organisation

Department

Managing Director Degree Top 2-4 Executive

Works Manager Degree Top 2-4 Technical

Sales and

Marketing

Manager

Degree Top 2-4 Sales and

Marketing

Sales Manager Degree Middle 2-4 Sale and

Marketing

Export Manager Degree Middle Less than 1 Sales and

marketing

Finance

Accountant

Degree Middle 5-7 Finance

Management

Accountant

Degree Middle 5-7 Finance

Quality Assurance

Officer

Others Middle 2-4 Technical

Sales Executive Degree Line 2-4 Sale and

Marketing

Human resources

Officer

Others Line 2-4 Administration

Production

Supervisor

Others Line 2-4

Technical

Quality Controller ‘A’ level Line 5-7 Technical

The distribution of the respondents was considered fair as it represented all levels of

management and departments within Zimtile needed to exhaustively conclude the

research on the subject matter. Most of the respondents were degreed and the least

had ‘A” level. This shows that the respondents were literate enough to give valid

answers to research questions. The demographic profile shows that most of the

respondents had been with the organisation for over five years. This shows that the

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respondents have valuable experience working in the organisation to give valid answers

to the research since experience plays a major role in the accumulation of knowledge.

4.3 ANALYSIS, RESULTS AND DISCUSSIONS

This section covers an analysis of results and discussions relating to each of the three

research objectives.

4.3.1 Key success factors for implementing advanced manufacturing technology. This section looks at the availability of key success factors of implementing AMTs at

Zimtile.

Question 1 In your view, which strategic factors were considered for the

implementation of new technology?

Table 4.2 Strategic Factors Considered for Implemen tation of AMTs

Respondent Response

Managing Director Profitability, skills, Product demand, machine capacity, product

Quality

Works Manager Product quality, production cost reduction, skills, machine capacity,

reduction in production cost

Sales and marketing Manager Market growth, skills, profitability, product quality, lead time to market

Sales Manager Customer satisfaction, lead time to market, product variety

Export Manager Capacity, quality, customer satisfaction, lead time to market

Financial Accountant Cost reduction, profitability, quality, customer satisfaction

Management Accountant Production cost ,profitability, quality

Quality Assurance Officer Product quality, production cost, flexibility

Sales Executive Customer satisfaction, product availability, price

Human Resources Officer Manning levels, flexibility, product quality

Production Supervisor Manning levels, cost of production, product quality

Quality controller

Through put, product quality, flexibility

From the results in Table 4.2 above there is convincing evidence that strategic factors

were considered by all levels of management during the implementation of AMTs.

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This is in agreement with Inman (2006) who emphasised that the consideration of

strategic factors before implementation of AMTS enables management to identify

strategic advantages that will make a firm more competitive and adept at using AMTs.

Inman further noted that this also reduces the risk of failure. The Managing Director

was of the view that strategic factors considered would enable Zimtile regain

competitive advantage it had lost to competition following years of using old

technology. The Works Manager noted that from an operational point of view the key

factors were plant capacity and efficiency. He further noted that with the right volume

and reduction in wastage Zimtile hoped to reduce production cost significantly. All

the respondents concurred that plant capacity, profitability, product quality, lead

time to market and market growth were amongst the key strategic factors considered

for the implementation of the new technology. Semantic differences were noted

between the strategic formulators ( senior management) and strategic implementers

( middle and line managers) for example top managers referred to plant capacity

while middle and line managers referred to the same as through put or product

availability.

Question 2: In your own assessment explain how Zimtile overall business strategy

supports the investment in new tile manufacturing technology.

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Table 4.3 Strategic Fit to Technology

Respondent Response

Managing Director Zimtile aims to be a low cost producer and the investment in new tile

manufacturing technology will compliment management strategy by

improving production efficiencies, volumes and delivery.

Works Manager The new tile manufacturing machine will reduce production cost.

Sales and Marketing manager Machine flexibility will allow production of additional exclusive tile

profiles and colours.

Sales Manager Zimtile aims to be a mass producer of tiles.

Export manager The new tile machine will create extra capacity needed for exporting.

Financial Accountant Zimtile aims to improve profitability through reduction of cost of

production.

Management Accountant The new tile manufacturing technology will enable it achieve high

production efficiency and improve on product quality.

Quality Assurance Officer The new technology will enhance product quality.

Sales Executive The low priced products will increase market share

Human Resources Officer The new technology will improve the working environment.

Production Supervisor The new plant improves production efficiencies

Quality Controller It will enable the orgainisation to produce quality products.

The Managing Director noted that to be a low cost producer, one requires a modern

machine hence the reason Zimtile invested in a new tile manufacturing technology to

improve on production efficiency, product quality and delivery. The Managing

Director’s justification to invest in AMTs is in line with Babbar and Rai (2004) who

noted that implementation of AMTs enables organisations to be low cost producers

through economy of scale and scope .All of the respondents as shown in Table 4.3

were aware of Zimtile’s overall business strategy, which is, to be a low cost producer

and they further acknowledge that the new roofing tile manufacturing technology will

compliment the overall business strategy. This is in agreement and it reconfirms

separate studies by Voss and Innan (2006) that noted that strategic consideration

and strategic fit were a prerequisite for successfully implementing AMTs.

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Question 3: Please explain degree of senior management in the implementation of

the new tile manufacturing technology

Table 4.4 Senior Management Commitment

Respondent Response

Managing Director A project committee chaired by the Works Manager was put in

place to facilitate project planning, coordination and

implementation. Senior management mobilized resources for the

project.

Works Manager The Works Manager was responsible for the project planning

coordination and implementation.

Sale& Marketing Manager Senior management was involved in planning, communicating

with key stakeholders, resource mobilisation and ensuring that

the project was on target.

Sales Manager Senior management was pushing for completion of project.

Export Manager Senior management was keen to see the project completed.

Financial Accountant Senior management failed to mobilize funding for the project.

Mgt Accountant Senior management had project briefings with staff weekly.

Quality Assurance Officer Interruptions over shadowed senior management commitment.

Sales Executive Senior Management was not visible.

Human Resource Officer Senior management failed to fund a project incentive that had

been agreed upon

Production Supervisor Senior management frequently interfered in operations

Quality Controller Senior management commitment was not visible.

The Managing Director’s response was that senior management was fully involved

and committed to the project as it was the senior management’s initiative and wanted

it implemented successfully. The same sentiments were echoed by the Sales and

Marketing Manager and as well as the Works Manager. However, the majority of

middle and line managers felt differently. The technical respondents noted that senior

management was hardly available to attend to implementation problems. The

Financial Accountant pointed out that senior management failed to adequately

mobilize funding for the implementation of the new tile manufacturing technology. As

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a result of poor funding the project faced numerous interruptions. Failure by senior

management to adequately fund the implementation of new technology is a sign of

lack of commitment by senior management. This is in contradiction to literature that

states that exceptional attention to provide resources leads to successful

implementation of AMTS (Chen et al…, 2007). The Production Supervisor mentioned

that senior management frequently supervised and gave direct instructions to shop

floor operatives. This could be suggestive of an organizational structural

inappropriateness due failure to restructure to accommodate the new technology as

advocated by Sohal et al… (2005).

Question 4: How best do you describe Zimtile’s corporate culture?

Table 4.5 Zimtile Corporate Culture

Respondent Response

Managing Director Zimtile has and encourages an entrepreneurial culture.

Works Manager Zimtile culture is entrepreneurial but it is heavily diluted by PG

corporate culture.

Sale& Marketing Manager Zimtile corporate culture is bureaucratic.

Sales Manager Zimtile culture is rigid.

Export Manager Zimtile culture allows entrepreneurship

Financial Accountant Zimtile culture is not flexible.

Mgt Accountant Zimtile culture is rigid.

Quality Assurance Officer Zimtile corporate culture discourages team work. Sales Executive Does not assist employees with educational fees.

Human Resource Officer It is not flexible.

Production Supervisor Zimtile corporate culture does not encourage exceptional

performance.

Quality Controller The culture stifles innovations and there is no recognition of

good performance.

The Managing Director pointed out that Zimtile corporate culture was entrepreneurial as

it promoted innovation and teamwork. The Works Manager did concur with the

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Managing Director but he was quick to point out that Zimtile corporate culture had been

diluted by PG corporate culture and there was an urgent need for a culture reorientation

if implementation of the new technology was to succeed. However, middle and line

managers felt differently. Their feelings were that Zimtile corporate culture was rigid and

was not allowing employees to be innovative. The Export Manager who has been

employed by Zimtile for less than a year is the only middle manager who agreed with

the Managing Director that Zimtile corporate culture is entrepreneurial. Basing on the

overall responses one can deduce that Zimtile corporate culture is bureaucratic. This is

in contradiction with literature that demonstrated that firms with a history of successfully

implementing AMTs preferred a flexible orientated corporate culture Yusuf, (2008).

Question 5: Please explain how the implementation of new technology at Zimtile was

influenced by Zimtile Corporate culture.

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Table 4.6 Influence of corporate culture on Impleme ntation of new technology

Respondent Response

Managing Director Zimtile corporate culture was an enabling factor it allowed the

project team to be innovative and overcome most of the project

challenges.

Works Manager The project could have been implemented better if the project

team was allowed to be flexible in their operations.

Sale& Marketing manager The corporate culture had a negative influence to the project

team it did not allow the team to be innovative when they

encountered challenges.

Sales Manager Red tape limited employees creativity in solving problems

Export manager The culture negatively affected implementation of new

technology.

Financial Accountant Project operatives had little input they followed instructions from

the project leader

Mgt Accountant The implementation was out of target.

Quality Assurance Officer There was no coherence amongst team members.

Sales Executive The project was full of inter team problems.

Human Resource Officer Lack of flexibility stalled innovation amongst employees

Production Supervisor Implementation was slow.

Quality Controller Failure to recognize achievers de-motivated employees

The Managing Director felt that Zimtile’s corporate culture enabled the new technology

implementation team, to rise to the challenges of the project. Contrary to what the

Managing Director felt the other top managers (the Works Manager and Sales and

Market Manager) felt that the corporate culture had a negative impact on the

implementation of the new technology. The Sales and Marketing Manager further noted

that the implementation team was not empowered enough to rise to the challenges of

implementing new technology. This is in prefect agreement with a study by Saberi and

Hickoc (2009) in which it was concluded that, new technology demands a new culture.

The Production Supervisor noted that the implementation was slow because employees

were not allowed to be innovative. Basing on the responses in Table 4.6 below, Zimtile

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corporate culture did not support the implementation of the new manufacturing

technology which was felt to be inflexible to a point that it stalled the implementation

stage. This is in line with studies by Zammuto and O’Connor (1992) who hypothesized

that inflexible culture can hinder AMT implementation.

Question 6: What technical skills were required for the execution of the new tile

manufacturing technology and were available in Zimtile at the time of implementation?

The Managing Director noted that Zimtile had adequate skills required to implement the

new technology in roof tile manufacturing. He emphatically noted that a Works Manager

a technical guru with vast experience in project management had been hired to manage

the project.

Table 4.7 Critical Skills at Implementation of AMTs .

Respondent Response

Managing Director Electrical, mechanical, project management. The skills are available within

the organisation.

Works Manager Project management, electrical, mechanical and concrete manufacturing.

The skills level are inadequate, needed is concrete manufacturing skills

and electrician class 1.

Sale& Marketing Manager Electrical, mechanical, project management.

Sales Manager Electrical, mechanical, concrete manufacturing skills. The skills are

inadequate.

Export manager Electrical, mechanical skills. There are adequate.

Financial Accountant Machine operation, mechanical skills. The available skills were adequate.

Mgt Accountant Personnel from the old plant implemented the new manufacturing

technology.

Quality Assurance Officer Electrical, mechanical, concrete manufacturing skills. The available skills

are inadequate.

Sales Executive The skills were adequate

Human Resource Officer According to a skill’s audit class1 electrician, mechanical, project

management and concrete manufacturing skills are required.

Production Supervisor The new technology needs mechanical, electrical skills and concrete

manufacturing skills. Concrete manufacturing is required.

Quality Controller The new technology needs electrician, fitter and turns. They are available.

74

The Works Manager revealed that the most critical skills required for the implementation

of AMTs included electrical, mechanical, project management and concrete

manufacturing skills were available. He also noted that the available skills were

inadequate to successfully implement AMTs at Zimtile. He mentioned that needed

urgently were concrete manufacturing skills and a class 1 electrician. This is in

contradiction with literature which says that skills and employee discipline are

paramount for successful implementation of AMTs (Blumberg and Gerwin 2009).

Most of the non- technical respondents indicated that the skills were adequate. The

Human Resources Officer mentioned that according to a skills audit the skills were

inadequate and absent were concrete manufacturing skills and electrician class1. The

same sentiments were echoed by most technical respondents who included the

Production Supervisor. The technical respondents are the direct implementers of AMTs.

Based on the responses summarized in Table4.6 above it is evident that Zimtile did not

have adequate prerequisite skills necessary for the successful implementation of AMTs.

4.3.2 The expected benefits of implementing advance d manufacturing

technology at Zimtile .

This section seeks to find out what were the motivating benefits for Zimtile to

implement AMTs.

Question 1 : What benefits does Zimtile expect to gain by implementing the new tile

manufacturing technology?

The response of each respondent are highlighted in Table 4.7.The Managing Director

said that Zimtile was being motivated to implement a new roof tile manufacturing

technology because they hope to realize benefits like reduction in cost of production,

improved profitability, product quality, working conditions and shareholders’ value. The

sale and Marketing Manager concurred with the Managing Director but added reduction

in lead time to market as another expected benefit. There was a general agreement

amongst top, middle and line manager that the expected benefits were improved

profitability, customer satisfaction, productivity, market share, working conditions,

product quality, shareholders’ value and reduction in production cost and product lead

75

time. This is consistent with previous studies by various authors who noted that benefits

of implementing AMTs include increase in productivity, improved product quality, market

share, customer satisfaction, profitability and reduced production cost and lead time to

market (Schroder et al …,1997,Rischel and Burns, 1997, and Small, 2007).

Table 4.8 Expected Benefits from Implementing New T echnology

Respondent Response

Managing Director Reduction in cost of production, improved profitability, and

product quality and better working conditions.

Works Manager Reduction in production cost, operation efficiency, improved

working conditions, product quality and plant flexibility.

Sales & Marketing

Manager

Improve customer satisfaction, product quality, product

availability, profitability and market share.

Sales Manager Improve profitability, product quality and customer satisfaction

Export manager Improve product quality and profitability, increase product

availability and market share, and better remuneration.

Financial Accountant Improved profitability, lead time and market share.

Mgt Accountant Improved plant efficiency, profitability, reduction in cost of

production and better remuneration.

Quality Assurance

Officer

Improve product quality, profitability and working conditions

and increase market share

Sales Executive Improved market share, profitability and customer

satisfaction, better remuneration and working conditions.

Human Resource

Officer

Better working conditions and remuneration, improve product

quality and profitability.

Production Supervisor High plant efficiency, Improved product output, product

quality, plant flexibility and customer satisfaction.

Quality Controller Improved product quality, profitability customer satisfaction.

76

4.3.3 Achieved benefits of implementing AMTs at Zim tile.

This section seeks to find out if the expected benefit of implementing AMTs at Zimtile

were achieved.

Question 1: In your own assessment, which of the perceived benefits were realised?

Table 4.9 Benefits Realised at Zimtile

Respondent Response

Managing Director Slight improvement in customer satisfaction, market share, product

quality and significant improvement in lead time.

Works Manager Slight improvement in customer satisfaction and product quality.

Notable improvement was achieved in lead time.

Sales & Marketing Manager Slight changes were realised in customer satisfaction and market

share.

Sales Manager Significant change in lead time and a slight change in market

share.

Export Manager Improvement in lead time.

Financial Accountant Improvement in lead time.

Management Accountant Improvement in lead time.

Quality Assurance Officer Improvement in lead time.

Sales Executive Positive changes in customer satisfaction and plant efficiency.

Human Resource Officer Improvement in lead time.

Production Supervisor Improvement in lead time.

Quality Controller Improvement in lead time.

From the response in Table 4.9 it is convincing that lead time was achieved. This is in

agreement with Small,(2007) and Sohal et al…, (2001) who noted that successful

implementation of AMTs is associated with increased flexibility and improved speed of

response to market changes. However there are mixed feeling as to whether market

share, customer satisfaction, and product quality was improved. Senior management

point out that considering the fact that they had been in operation only for two and half

years after installation the slight improvement in custom satisfaction, market share and

product quality was a great achievement. However, the other respondents disagree with

77

this notion. The Sales Manager disagreed completely and mentioned that the working

conditions were deteriorating employees were being paid their salaries late and the tile

quality was below industry quality standards. The management account noted that

production cost had improved slightly but the unit cost was still higher than the average

industry level. The Production Supervisor noted that production wastage was high and

plant efficiency was low. He attributed the poor performance to inadequate skills. Basing

on the responses in Table 4.9 Zimtile did not achieve most of the expected benefit

except for lead time. This contrary to literature on implementation of AMTs, which states

that most organisations are motivated to implementing AMTs because of the numerous

benefits it offers (Dean, et al…,2004).

Question 2: How best would you describe your experience with the new tile


Table 10 Experience with New Technology

Respondent Response

Managing Director New working culture and raw material issues. Improvements in

output and lead time.

Works Manager Technology is very user friendly and requires a new approach

to work.

Sales and Marketing Manager Lead time improved and there is need to address startup

challenges.

Sales Manager The improved lead-time will restore confidence to the market.

Export manager Product availability improved.

Financial Accountant Improved output and plant efficiency.

Management Accountant Simplified process.

Quality Assurance Officer Improved lead time and Raw material challenges.

Sales Executive Has potential.

Human Resource Officer Increased output and introduction of new products.

Production Supervisor User friendly.

Quality Controller Start up challenges.

78

The Managing Director mentioned that the new technology had brought benefits and

challenges. He noted that the biggest challenge was to change the culture of doing work

and raw material issue. The benefits he said include improved lead time. The Managing

Director was quite optimistic that Zimtile was on the recovery path considering that it

had only been operating two and half years after commissioning. The Works Manager

and most technical respondents noted that the new technology was user friendly and

easy to operate. The Management Accountant noted that the new plant had simplified

the process which makes costing easy. The Quality Assurance Officer was very worried

about the raw material challenges the production team was facing. The results show

that the respondents had both positive and negative experiences with the new

technology. The positive experiences included improved working condition, output and

improved lead time and the negative experiences were that they had not attained most

of the indented benefit of implementing AMTs. According to literature on AMTs

implementation the mixed feeling amongst the respondents is normal as it takes time for

plants to realize the potential benefits because of the learning curve associated with the

technology (Boyer, 2007) and may be delayed by economic problems (Boer et

al…,1990).

4.4 SUMMARY OF THE FINDINGS

The research findings are summarized below:

4.4.1 Key success factors for Implementing AMTs

Strategic Factors

All the respondents indicated that appropriate strategic factors had been considered for

the implementation of AMTs at Zimtile. The Managing Director said it was imperative

that strategic factors be considered first as it enables Zimtile to identify strategic gaps

and possibly minimize the risk of failure during implementation of AMTs.

Strategic Fit

All the respondents acknowledged that there is a strategic fit between Zimtile overall

business strategy and the implementation of the new technology. They noted that the

79

new technology will compliment the strategy as it will allow Zimtile to reduce cost of

production through economies of scale, scope and reduction in wastage.

Management Commitment

The overall response was not positive. According to most of the respondents Zimtile

senior management was not fully committed to the implementation of AMTs. Middle and

Line managers sighted gross over sights by senior management that include failure to

mobilize adequate funding and failure to recruit or train key skills necessary for the

successful implementation of AMTs .The Production Supervisor mentioned that senior

management frequently resorted to micro management to cover up their over sights

which in most cases resulted in a de -motivated team.

Corporate Culture

The respondents said that Zimtile corporate culture was inflexible and inhibited culture

with the new technology that requires a flexible and innovative culture if the

implementation innovation. The Works Manager noted that there was urgent need to

realign Zimtile corporate of AMTs was to be successful.

Technical Skills

According to the responses Zimtile did not have the adequate technical skills necessary

for successful implementation of AMTs .The respondents pointed out that mechanical,

electrical and project management skills were available however some critical skills like

concrete manufacturing we not available and a class1 electrician needed to be

employed. The Quality Assurance Officer said he saw convinced that most of the

product quality problems Zimtile was facing were because Zimtile did not have a

machine operator with concrete manufacturing skills.

4.4.2 Expected benefits of implementing AMT at Zimt ile

Expected Benefits

The respondents managed to identify business benefits that motivated Zimtile to

improved customer satisfaction, market share, product quality, profitability and working

conditions and reduction in production cost and lead time to market

80

4.4.3 Achieved benefits

The respondents concurred that lead time had improved as product was now available.

However the sale and Marketing Manager noted that the full impact was not yet visible

because of a huge back log that had been inherited from the old plant. However despite

notable achievements in reducing lead time the respondents said that the major benefits

which include improvement of profitability, product quality, market share, and customer

satisfaction, employee working condition and reduction in production cost are not yet

achieved. The Sales Manager noted that instead the working conditions were

deteriorating. On the other side the Managing Director cautioned that it was too early to

concluded that AMTs had not benefited Zimtile as Zimtile was only two and half years in

operation after commissioning of the new plant.

Experience with New technology

The respondents noted that the new technology had brought both benefits and

challenges. The challenges as mentioned by the Works Manager and agreed upon by

the other managers were the need to realign Zimtile corporate culture to the new

technology that requires high flexibility and innovation and also to quickly address

issues of inadequate essential skills need for the successful implementation of AMTS.

The respondents acknowledged that the new plant was user friendly and easy to

operate. The Management Account noted that the new plant had simplified the

production process which made cost very easy.

4.5 CONCLUSION

This chapter was mainly concerned with reporting the research findings and discussing

these findings, their implications and link to literature. The respondents were divided

into three groups Senior management, Middle Management, and Line Management.

The responses to the research questions were presented in the form of data analysis.

The researcher concluded the data analysis by summarizing the findings of the

research. The following chapter covers the conclusions made through the research,

recommendations, the study limitations and areas for further research.

81

CHAPTER 5

5.0 CONCLUSION AND RECOMENADTION

5.1 INTRODUCTION

In this chapter the researcher makes inference and conclusions of the research using

information from the findings as discussed in Chapter four. The researcher further

recommends and suggests areas of further studies to Zimtile management and the

industry. It is hoped that the recommendations will go a long way to assist Zimtile, the

concrete roof tile manufacturing industry and similar industries that are or wish to

implement advanced manufacturing technologies.

5.2 CONCLUSIONS

The study concludes that Zimtile failed to attain a positive impact on operational

efficiency and consequently failed to realise the expected benefits of implementing

AMTs. The following conclusions on specific study objectives confirm this.

Objective One: Establish whether the key success factors of implementing AMTs exist

at Zimtile.

Conclusion

The study concludes that the key success factors (senior management commitment,

supporting corporate culture, and adequate and appropriate technical skills) were

inadequate to ensure successful implementation of AMTs at Zimtile.

5.2.2 Objective two: To establish the expected bene fits of implementing AMTs at

Zimtile

Conclusion

The research concludes that Zimtile did not consider environmental benefits during the

AMTs implementation.

82

5.2.3 Objective three: To establish if Zimtile achi eved the expected benefits of

implementing AMTs at Zimtile

Conclusion

Zimtile did not achieve most of the expected benefits of implementing AMTs. Market

share, customer satisfaction, working conditions and profitability achievement remained

below industry standards

5.3 EVALUATION OF THE PROPOSITION The following proposition was set for this study:

The lack of senior management commitment and technical skills, strategic misfit and

inhibitive corporate culture has resulted in Zimtile’s failure to achieve the benefits of

implementing AMTs.

The findings from the research showed that Zimtile failed to achieve most of the

expected benefits of AMTs implementation because of lack of senior management

commitment, inhibitive corporate culture and inadequate technical skills. Therefore the

proposition was confirmed.

5.4 RECOMMENDATIONS

Drawing on the findings and conclusions cited above the following recommendations

will assist Zimtile fully realize the benefits of AMTs implementation:

5.4.1 Establishing a Conducive Environment

It is recommended that Zimtile creates an environment conducive for the success full

implementation of AMTs. To achieve this Zimtile needs to:

a) Implement a performance management system.

b) Senior management need to lead by example.

c) Implement a management change programme aimed at encouraging culture based on

teamwork and employee empowerment.

d) Hire a concrete manufacturing consultant to train technical staff.

e) Encourage employees to improve on their academic and professional skills through

reimbursement of tuition fee for courses that directly benefits the organisation.

83

5.4.2 Environmental Impact Assessment Zimtle is recommended to carry out an environmental impact assessment of the new

plant in line with EMA guidelines

5.3.3 Enhancing Achievement of AMTs Benefits To fully realize and enjoy the benefits of implementing AMTs Zimtile should enhance

this through:

a) Increasing production capacity by introducing a second shift or increase tile

mould and work overtime.

b) Replacing Quality Assurance Office by a senior Quality Assurance Manager.

c) Adopting manufacturing best practice, like lean procurement and lean

manufacturing cutting down none value adding expenses to enhance profitability

through reduced cost of production.

5.4 STUDY LIMITATIONS AND AREAS OF FURTHER STUDY

The study was based on a single case study of Zimtile in the period 2008 to 2013.

Being a case study there were limitations in the number of respondents to participate in

the research. The results may be inconclusive since more solid inferences may be

made by looking at a number of similar organizations to evaluate the impact of

implementing AMTs on operational efficiency at Zimtile. The study was done two and

half years after commissioning the new plant in view of this, the results of the findings

can be compromised by startup problems encountered during the first months after

commissioning.

Considering the research findings, the researcher proposes the following areas for

further research: A study on how employee efficiency influences the attainment of

overall plant efficiency is crucial and how do external factors affect the successful

implementation of AMTs.

84

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COVER LETTER

Appendix 1 Cover Letter

No 315/2 Halford Road Prospect HARARE 3 July 2013 Dear Sir/Madam RE: Master in Business Administration Research Questionnaire The Researcher is a final student for a Graduate Degree in Master of Business Administration

with the Graduate School of Management, University of Zimbabwe. The researcher is

conducting a research which seeks to “Evaluate the impact of implementing advanced

manufacturing technology on operation efficiency in roof tile manufacturing

industry: a case of Zimtile (2009- 2013). This research is an issue of great importance

within Zimbabwe and yet little is currently known about the possible benefits of implementing

advanced manufacturing technology. You are one of a small number of people who are being

asked to give your opinion on this issue. If you have any questions you wish to ask or there is

anything you wish to discuss, please do not hesitate to telephone the writer on the following

telephone numbers; 0773 241 773 or e-mail [email protected].

All information you provide will be totally confidential and will not be disclosed to third parties

without your permission. Your name and address will not appear on the questionnaire and that

there will be treated in the strictest of confidence.

Thank you in advance for your assistance in this matter.

Yours faithfully

Tichafa Mushunje Master in Business Administration Student Student No. R113090W

93

Appendix 2 Quest ionnaire

Section A – Demographics

Tick the most appropriate answer to the question

1. What is your current position at Zimtile?

Top management [ ]

Middle management [ ]

Line Management [ ]

2. How long have you been employed by Zimtile?

Less than a year [ ]

2 - 4 years [ ]

5- 7 years [ ]

8 – 10 years [ ]

Over 10 years [ ]

3. What is you highest educational level you have attained?

“O” Level [ ]

“A” Level [ ]

Degree [ ]

Others Specify…………………………………………………………

94

4. What department do you work for?

Administration [ ]

Finance [ ]

Technical [ ]

Marketing [ ]

Section B Objectives

Objective 1 - Establish whether the key success fac tors of implementing AMTs

exist at Zimtile.

1. In your view, which strategic factors were consi dered for the implementation

of new tile manufacturing technology?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

……………………………………………………………………………………

2. In your own assessment explain how does Zimtile ove rall business strategy

support the investment in new tile manufacturing te chnology?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

………………………………………………………………………………

95

3. How best would you describe Zimtile’s co-operate culture?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………

4. Please explain how the implementation of new techno logy at Zimtile ,was

influenced by Zimtile corporate culture.

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

………………………………………………………………………

5. What technical skills were required for the executi on of the new tile

manufacturing technology were available in Zimtile at the time of

implementation?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

………………………………………………………………………………………

96

Objective 2 - To establish the expected benefits of implementing advanced

manufacturing technology at Zimtile.

1. What benefits did Zimtile expect to gain by impl ementing the new tile


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Objective 3 To establish if Zimtile achieved the ex pected benefits of implementing

AMTs at Zimtile .

1. In your own assessment, which of the perceived bene fits were achieved?

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2. How best would you describe your experience, with the new tile


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End of Questionnaire Thank you for your Cooperation

MUSHUNJE TICHAFA R1103090W

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