IDEAS home Printed from https://ideas.repec.org/a/adi/ijbess/v7y2025i3p58-68.html

Automation breakthrough: the initiative for productivity improvement in a selected automotive assembly organisation in South Africa

Author

Listed:
  • Robert Walter Dumisani Zondo

    (Durban University of Technology (DUT))

Abstract

Automated flow line manufacturing systems are becoming more relevant in the automotive sector. Improving productivity in the manufacturing system is the core objective of all companies, measured by overall equipment effectiveness (OEE). OEE is a measure of how well a manufacturing operation is utilised compared to its full potential during the periods when it is scheduled to run. Organisations have thus made technological changes in their processes that have led to opportunities for greater flexibilities. This sentiment underpins the concept of automation. Hence, this study examines the impact of automation for productivity improvement in the selected automotive assembly organisation in South Africa. Automation is the creation and application of technology to monitor and control the production and delivery of products and services. The study was quantitative in design and examined production and the related experiences of the automotive assembly organisation that has adopted automation system in its automobile roof process in weld plant for productivity improvement. The Ordinary Least Squares (OLS) model, using the Statistical Package for Social Sciences (SPSS) was used to analyse data. The company operates in the eThekwini Municipality in KwaZulu-Natal province of South Africa. The study was achieved by collecting pre- and post-quarterly data for labour productivity, process efficiency and downtime. The results establish that labour productivity, process efficiency and downtime have a relationship and are statistically significant to company productivity after automation was implemented. It has the potential to reduce errors, increase productivity and augment human capacity. Hence, the original value of this study is its approach in uncovering strengths and weaknesses of automation for productivity improvement in South Africa. Key Words:Automation, Automotive Assembly Organisation, Downtime, Labour Productivity, Process Efficiency, South Africa

Suggested Citation

  • Robert Walter Dumisani Zondo, 2025. "Automation breakthrough: the initiative for productivity improvement in a selected automotive assembly organisation in South Africa," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 7(3), pages 58-68, June.
    • Handle: RePEc:adi:ijbess:v:7:y:2025:i:3:p:58-68
    DOI: 10.36096/ijbes.v7i3.780
    as

    Download full text from publisher

    File URL: https://www.bussecon.com/ojs/index.php/ijbes/article/view/780/469
    Download Restriction: no
    File URL: https://doi.org/10.36096/ijbes.v7i3.780
    Download Restriction: no
    File URL: https://libkey.io/10.36096/ijbes.v7i3.780?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    2. Elfi Baillien & Hans De Witte, 2009. "Why is Organizational Change Related to Workplace Bullying? Role Conflict and Job Insecurity as Mediators," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 30(3), pages 348-371, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashraf Elsafty & Ahmed Elzeftawy, 2023. "Towards Effective Mitigation of the Digital Transformation and COVID-19 Risk on Unemployment in Mobile Operators in Egypt," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(2), pages 123-123, February.
    2. Cette, Gilbert & Devillard, Aurélien & Spiezia, Vincenzo, 2021. "The contribution of robots to productivity growth in 30 OECD countries over 1975–2019," Economics Letters, Elsevier, vol. 200(C).
    3. Tao Chen & Shuwen Pi & Qing Sophie Wang, 2025. "Artificial Intelligence and Corporate Investment Efficiency: Evidence from Chinese Listed Companies," Working Papers in Economics 25/05, University of Canterbury, Department of Economics and Finance.
    4. Shi, Zheng, 2023. "The impact of regional ICT development on job quality of the employee in China," Telecommunications Policy, Elsevier, vol. 47(6).
    5. D. Roderick Kiewiet, 2016. "What’s Right, and What’s Wrong, with “What is Wrong with the West’s Economies?” by Edmund Phelps," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(1), pages 11-18, August.
    6. Martin, John P., 2017. "Policies to expand digital skills for the machine age," GLO Discussion Paper Series 42, Global Labor Organization (GLO).
    7. Cao, Qiang & Xu, Aiyan & Wang, Jiawen & Yu, Wenmei, 2024. "Influence of financial inclusion and industrial robots on the efficiency of China's OFDI: A heterogeneous spatial stochastic frontier analysis," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 996-1009.
    8. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    9. Shigeru Fujita & Madison Perry, 2024. "Nonworking Parents or Hungry Children," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 9(4), pages 2-9, December.
    10. Ville-Veikko Pulkka, 2017. "A free lunch with robots – can a basic income stabilise the digital economy?," Transfer: European Review of Labour and Research, , vol. 23(3), pages 295-311, August.
    11. Adrian Otoiu & Ramona Bere & Catalin Silvestru, 2017. "An Assessment of the First Round Impact of Innovation Industries on Europe’s Regional Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 289-289, February.
    12. Qihang Li & Yituan Liu & Wenjie Li & Linman Zheng, 2025. "Will Industrial Robots Terminate Enterprise Innovation?—An Empirical Evidence from China’s Enterprise Robot Penetration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10074-10103, June.
    13. Lütkenhorst, Wilfried, 2018. "Creating wealth without labour? Emerging contours of a new techno-economic landscape," IDOS Discussion Papers 11/2018, German Institute of Development and Sustainability (IDOS).
    14. Ross, Andrew G. & McGregor, Peter G. & Swales, J Kim, 2024. "Labour market dynamics in the era of technological advancements: The system-wide impacts of labour augmenting technological change," Technology in Society, Elsevier, vol. 77(C).
    15. Gao, Jie & Li, Zhizhuo & Nguyen, Thithuha & Zhang, Wentao, 2025. "Digital transformation and enterprise employment," International Review of Economics & Finance, Elsevier, vol. 99(C).
    16. Katya Klinova & Anton Korinek, 2021. "AI and Shared Prosperity," Papers 2105.08475, arXiv.org.
    17. Laura Abrardi & Carlo Cambini & Laura Rondi, 2022. "Artificial intelligence, firms and consumer behavior: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 969-991, September.
    18. Böhm, Robert & Letmathe, Peter & Schinner, Matthias, 2023. "The monetary value of competencies: A novel method and case study in smart manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    19. Caitlin Allen Whitehead & Haroon Bhorat & Robert Hill & Tim Köhler & François Steenkamp, 2021. "The Potential Employment Implications of the Fourth Industrial Revolution Technologies: The Case of the Manufacturing, Engineering and Related Services Sector," Working Papers 202106, University of Cape Town, Development Policy Research Unit.
    20. Lee, Chien-Chiang & Li, Jiangnan & Yan, Jingyang, 2025. "Can artificial intelligence contribute to the new energy system? Based on the perspective of labor supply," Technology in Society, Elsevier, vol. 81(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adi:ijbess:v:7:y:2025:i:3:p:58-68. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ibihutr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.