Original Research

Effectiveness of the quality control story problem-solving method for productivity improvement in the automotive industry in South Africa

Claude Pillay, Kimiaki Jin, Forbes Chiromo

Received: 26 Mar. 2025; Accepted: 27 Oct. 2025; Published: 20 Dec. 2025

Copyright: © 2025. The Author(s). Licensee: AOSIS.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Background: Lower-tier firms are less competitive than tier-one firms in many areas of the South African automotive industry. One of the reasons for low operational competitiveness and productivity can be attributed to the knowledge and problem-solving skills of employees. There are many training programmes for lower-tier firms to improve their productivity. The quality control (QC) story problem-solving methodology, together with the combination of classroom and onsite training is effective in improving productivity.

Aim: The aim of this study was to assess the impact of Kaizen practices and training on productivity improvement. The study investigated the relationships between the QC story problem-solving, the consultants’ capability, and productivity improvement.

Setting: The study was conducted with 20 lower-tier firms in the automotive sector in South Africa, which received basic Kaizen training from trained consultants between 2022 and 2023.

Method: The study was quantitative and a survey questionnaire was used to collect the firm’s data before and after the training interventions. Assessments were conducted on consultants focussing on training capability and practical implementation capability.

Results: The results of the study showed that the QC story problem-solving method is efficacious in improving productivity within automotive firms at all tier levels. The capability of the consultant showed a correlation with the improvement of the firm’s productivity.

Conclusion: The QC story problem-solving method is a successful approach to improving productivity in automotive firms. The improvement ratio, however, showed short-term impact, which was measured at the end of the Kaizen intervention. It is necessary to examine the long-term impact of such interventions to understand sustainability.

Contribution: The effectiveness of the QC story problem-solving methodology in conjunction with classroom and on-site training to increase productivity is demonstrated by this empirical investigation.

Keywords: Kaizen; productivity; competitiveness; automotive industry; lower-tier firms; QC story problem-solving; South Africa.

Introduction

Competitiveness theory refers to the idea of comparable costs and may refer not only to businesses but also to entire economies. If a company’s unit costs are lower than those of other companies in the same market, the former will be more competitive than the latter. A country’s economy is competitive if its companies have lower unit costs than those in other countries. Every element that promotes productivity and, as a result, decreases the unit costs of enterprises in an economy helps to boost the economy’s competitiveness (Sisay et al. 2021).

Rudianto (2009) states that because competitiveness is evaluated for countries and businesses in a global setting, it is inseparable from globalisation. Business competitiveness is evaluated in the context of competitors in a global industry, while other countries would serve as the standards for national competitive advantage. It is important to focus on industries and industrial segments rather than the economy in its entirety when evaluating competitiveness. The gap between what a company can produce for its customers and what it costs to produce that value gives it a competitive edge. In an effective market economy, competition is a major engine of economic growth. Every nation must increase its competitiveness on many economic metrics at the domestic level to gain a competitive edge on the global stage. One direct method to increase resilience and competitiveness and promote more sustainable growth is to re-inject resources into the manufacturing process, reduce waste, and lessen reliance on erratic supply sources (Muradov, Hasanli & Hajiyev 2019).

The competitiveness of the market for any company’s particular products or industry determines its actual profitability. The business expands on its own if the market is unable to compete and has potential for growth. Expanding a firm is difficult for a corporation in a highly competitive market. In such cases, the company works to increase product quality to become more competitive (Jin & Ohno 2022). In sectors such as the automotive industry, where suppliers’ value adds a substantial amount to the finished product, original equipment manufacturer (OEM) competitiveness is based on the performance of suppliers in terms of price, quality, and on-time delivery (Quesada, Syamil & Doll 2006). The automobile sector in South Africa employs global operational techniques such as outsourcing, standardisation, the use of modularisation, and production optimisation. Enhancing firm-level competitiveness and maintaining quality are still difficult tasks (Barnes & Morris 2008). Firm-level competitiveness is a prerequisite for the automobile industry’s success because it necessitates effective operational performance as well as competitive labour, overhead, and material prices (Barnes, Black & Techakanont 2017).

Knowledge, a propensity for innovation, and a quicker rate of globalisation than rivals are all factors in long-term competitiveness. In today’s world, knowledge, education, cognitive technology, and intellectual capital are the cornerstones of maintaining the competitiveness of economic systems at all scales, from small businesses to multinational corporations, and from private economic entities to institutions of international integration (Autio & Acs 2010).

Automotive suppliers in South Africa are not internationally competitive, and automobile assemblers, or OEMs, frequently import lower-cost components from elsewhere. As a result, participants in South Africa’s automotive supply chains rely on one another to maintain maximum efficiency and competitiveness (Sharma & Naude 2020). It is therefore vital that these automotive suppliers have the capability to grow their businesses and be innovative to support value addition, be globally competitive, and support expansion of the supplier base (Tolmay & Venter 2017).

Kaizen, which originated in Japan in the 1950s, is a Japanese word meaning continuous improvement and is known as the secret to Japanese competitive success and has long been used with remarkable effectiveness in Japanese businesses (Binellas et al. 2024; Moi & Sing 2021). Kaizen is defined as a management philosophy using methodologies such as 5S, quality control (QC) story, and Muda elimination that facilitates ongoing, collaborative, incremental, and cost-effective enhancements in quality, productivity, cost, delivery, safety, morale, and environmental factors (Sonobe 2018).

The QC story is sometimes referred to as the plan, do, check, act (PDCA) cycle or the standardiSed QC story method to problem-solving and standardisation (Kondo 1990). A problem caused by multiple elements can be solved using the QC story technique, which is focused on evaluating the facts and data without speculating (Souza, Sousa & Nunes 2020). 5S is acknowledged as a management approach and a cornerstone of total quality management (TQM), encouraging a structured workplace that improves productivity and quality (Binellas 2024). The five Japanese phrases seiri, seiton, seiso, seiketsu, and shitsuke – which mean to sort, place in order, shine, standardise, and sustain – are the origin of the term 5S (Kanamori, Shibanuma & Jimba 2016). The Japanese word for waste, Muda, connotes inefficiency, futility, and worthlessness (Shedge et al. 2022). The seven areas of waste [Muda] identified by the core of the Kaizen concept are waiting, unneeded movement, overproduction, improper processes, unneeded supplies, defects, and transportation (Jakubiec 2022). In the automotive sector, Kaizen is essential to promoting lean technical efficiency. This framework guarantees that companies remain a long-term customer focus (Kamal et al. 2024). Many automotive companies have seen an increase in overall efficiency as a result of the Kaizen activity (Bharat et al. 2022).

The South African Automotive Masterplan’s (SAAM) 2035 vision and policies are hampered by the enormous and growing importation of components. Without thorough Kaizen training and execution, particularly in the component manufacturers, the South African automotive industry’s anticipated drive for localisation and growth, as outlined in SAAM 2035, would not be realised. The growth of the second- and third-tier car components industries, which are still inefficient and uncompetitive when compared with international competitors, is currently the main weak point (Otsuka & Ben-Mazwi 2022).

The purpose of this article was to examine the effectiveness of 4S or 5S, Muda elimination, and QC story problem-solving methodology, basic tools of Kaizen intervention for productivity and competitiveness improvement, among the randomly selected companies in the automotive value chain in South Africa. The sample companies include tier 1, 2, 3 and aftermarket suppliers, and large, medium, small, and micro-level companies. The article also identified the factors that contributed to the successful implementation of the QC story problem-solving method.

The study analysed the following:

• Relationship between the QC story problem-solving methodology used and the firm’s productivity improvement.
• Impact of the consultants’ capability in implementing the Kaizen intervention on the firm’s productivity improvement.
• Factors that are influential in improving the productivity of the firms in their current business environments.

The rest of this article is organised as follows: Literature review; The Methods section describes the research methodology and study conducted; the Results section explains the results and findings of the study; and Conclusion presents the conclusion and opportunities for future long-term studies.

Contribution of the research

The research sought to address the knowledge gap on the effectiveness of the QC story problem-solving methodology in small-, medium-, and micro-enterprises (SMMEs) in the automotive industry in South Africa.

Recent studies by Ishigame (2020) and Otsuka and Ben-Mazwi (2022) analysed Kaizen interventions in tier 1 companies and showed the impact of Kaizen on firm’s productivity improvement through training and shop floor interventions. Positive impact results included an improvement in revenue by 50%, an increase in labour productivity by more than 50%, and a decrease in lead time by 38%. The Kaizen training technique analysed in this research focused on the technical training on the factory shop floor using the QC story problem-solving approach. This is fundamental to consolidating human development and changing the employee’s mindset (Alvarado-Ramírez et al. 2018).

This empirical study provides evidence of the effectiveness of the QC story problem-solving methodology, together with the combination of classroom and onsite training, in improving productivity. The outcome of the research provides a basis for the scaling up of Kaizen in South Africa, which requires government support and has been presented to the Department of Trade, Industry and Competition (dtic) for inclusion in future policy and funding motivations. The positive indications from the research have created interest in supporting additional suppliers in the automotive industry with similar interventions.

Literature review

Theoretical review

Increased costs combined with lower product selling prices have significant ramifications, prompting first-tier component companies to cut back on their own suppliers or relocate to less expensive areas, which puts intense pressure on supply chain competition (Barnes & Morris 2008). Original equipment manufacturers and tier 1 companies are importing cheaper components from overseas suppliers, and this requires that suppliers, especially at the lower tier levels, focus on reducing costs and improving quality and output through operational excellence (Sharma & Naude 2020).

Small-, medium-, and micro-enterprises need to constantly remain competitive because of challenging business environments and the increasing global competitiveness levels. They need to review their business strategies and production processes and implement continuous improvement to reduce costs and maximise customer service levels (Ghazali, Sorooshian & Suhaila 2018; Petrillo, De Felice & Zomparelli 2019).

An essential part of Kaizen application is the development of human resources. According to Kikuchi (2023), the Kaizen human resources development goal is to create individuals capable of resolving production management-related problems such as enhancing productivity, lowering costs, and shortening delivery times. For Kaizen interventions to be successful, some of the success factors to consider are the commitment and motivation of staff, support from senior management, allocation of resources, development of a culture of continuous improvement, use of an appropriate methodology, organisation of support teams, and the presence of a facilitator to support the programme (García et al. 2014).

Kikuchi (2023) further describes the Kaizen training approach adopted by Tunisia and Ethiopia, which is essential for human resource development, where theoretical classroom teaching (CRT) and practical in-company training (ICT) are the primary building blocks. Trainees must endeavour to apply the Kaizen they learn throughout CRT on actual production floors of firms, collaborating with plant management and staff, to obtain practical training. The practical training is ‘on-the-job training’ that makes use of a ‘learning-by-doing approach’ or an ‘experience-based approach’.

Small businesses in developing nations have not found much use of the standard management methods that have been embraced by developed countries, and they have not been widely known or accepted (Higuchi, Nam & Sonobe 2015). Lower-tier automotive firms in South Africa have not adopted Kaizen as a business imperative, and this is because of a lack of adequate knowledge and methods. Small businesses rarely take advantage of management training because they do not see the benefits of doing so (Higuchi et al. 2015). If the training is conducted at the proper level and intensity, staff involvement in it may also improve business performance.

Empirical review

Omotayo, Kulatunga and Bjeirmi (2018) state that the implementation of Kaizen provides significant benefits such as increased productivity, reduction in waste, increased profit, improved customer satisfaction, enhanced quality, and increased competitive advantage. Kaizen, when used as a management model that is made up of principles, values, and tools, pursues value for the business, customers, employees, and society (Méndez & Vila-Alonso 2018).

Kaizen is a Japanese concept and means ‘change for better’. It was translated in the Western culture as ‘continuous improvement’, and was introduced to improve efficiency, productivity, and competitiveness in Toyota Japan because of increasing competition and the pressure of globalisation. Following the success at Toyota Japan, Kaizen is now widely used in many countries globally as a philosophy for continuous improvement in manufacturing and business (Berhe 2021; Ishijima et al. 2021).

Past research on the South African automotive industry shows that the application of Kaizen tools to the suppliers was effective in improving management efficiency through (1) increasing labour productivity, (2) reducing lead time, and (3) elimination of work-in-progress (WIP) (Otsuka & Ben-Mazwi 2022). Training that combines classroom and onsite practices sustains managerial skill development more than classroom training (CRT) only (Higuchi, Mhede & Sonobe 2019). The knowledge that each member of the organisation possesses determines both productivity and quality (Hosono, Page & Shimada 2020).

According to the JICA Kaizen Handbook (2018), Kaizen translated from Japanese means continuous improvement. It is an ongoing activity within an organisation, where all employees are involved in improving quality and productivity. Kaizen activities are carried out by employees who have developed a Kaizen mindset. They constantly evaluate and improve the current method of doing things. Kaizen has the potential to enhance business and operations performance when it is implemented well, and it results in higher productivity and quality (Atta-Ankomah, Appiah Kubi & Ackah 2022).

The Kaizen problem-solving method uses a combination of techniques, as described in Table 1. The application of 5S, as a basic requirement and tool of problem-solving, uses the steps translated from the Japanese acronyms of seiri [organisation], seiton [neatness], seiso [cleaning], seiketsu [standardisation], and shitsuke [discipline]. When put into practice, they reveal underlying issues that could go undiscovered (Gapp, Fisher & Kobayashi 2008). In this article, 4S and 5S are used interchangeably because 4S is used in the Toyota production system in the same way as 5S.

Kaizen training using QC story problem-solving method in combination with 5S and Muda [waste] elimination is effective for lower-tier automotive suppliers that have lower managerial capacity than suppliers in the global value chain, and the goal of everyday Kaizen is to eradicate Muri, Mura, and Muda (Otsuka, Jin & Sonobe 2018). No work practices should have unachievable tasks (Muri), unequal production operations and their outcomes (Mura), and lack of added value or customer value (Muda). The preparation for the QC story problem-solving activity should start by identifying: (1) Muda – production elements that drive up costs, or anything that does not add value; (2) Mura – variances in work distribution, machinery output capacity, and material standards; and (3) Muri – physical and mental strain on operators as well as strain on production machinery.

The QC story problem-solving method for Kaizen activity takes data and facts into account while addressing a multifaceted problem. It is used to solve problems related to productivity, expenses, logistics, and quality. The QC story method is applied to a variety of problems, and it follows a set of steps in Figure 1. It incorporates tools and techniques from diverse approaches that are based on the PDCA cycle (Alvarado-Ramírez et al. 2018; Sicoe et al. 2017).

FIGURE 1: Quality control story problem-solving 10 steps.

Conceptual review

A study conducted with 25 Japanese companies, 105 South Korean companies, and 48 Taiwanese companies revealed that QC story problem-solving activities provide the most effective strategy for consistently boosting productivity and motivating staff members (Sha, Hsu & Chen 2016).

A study that was conducted in an automotive facility for vehicle subassemblies showed that a pair of different delivered axles was labelled with identical labels. A set of seven nonconformities that could have caused the failure was found by using the QC story method. After corrective actions were prepared and put into place, all the failures were eliminated (Sicoe et al. 2017).

Another case study from the automotive industry indicated that the number of quality problems was significantly above the target, which indicated that the corrective efforts taken did not guarantee the overall quality. The execution and monitoring of the initiative, using the QC story problem-solving approach, led to a 20% drop in repetitive claims. The implementation resulted in enhanced networking, more quality consciousness, more effective teamwork, and quality improvement using a methodical approach (Candea et al. 2021).

Box 1 shows the key elements in the conceptual framework (also see Figure 2). The framework explores how the QC story method, consultant capability, and Kaizen implementation influence a firm’s productivity. If the QC story method and strong Kaizen implementation lead to increased productivity, it can guide the government and companies in strategies and policymaking for scaling Kaizen in South Africa. If the outcome is negative, adjustments can be made to the approach.

FIGURE 2: Conceptual framework.

Methods

A 3-month basic Kaizen training was developed for 20 firms in the automotive value chain and consultants. The training outputs were analysed in relation to the characteristics of the firms and consultants. The training had modules on 5S, Muda elimination, and QC story problem-solving interventions. The outputs of the training were monitored and analysed. The interventions were implemented jointly with the consultants assigned to each firm and workplace leaders of the firms under the supervision of four Japanese Kaizen experts sent to South Africa through government-to-government cooperation. The training sought to develop the capacities of the consultants and workplace leaders as well as to improve the productivity of the firms.

Sample firms

In 2022, a survey was conducted among the automotive suppliers in Eastern Cape Province (EC), Gauteng Province (GP), and KwaZulu-Natal Province (KZN) in South Africa. The three provinces chosen are where the seven leading OEMs are located in South Africa (EC: Mercedes, VW and Isuzu; GP: Ford, BMW and Nissan; KZN: Toyota) that these suppliers supply to. From a population of 94 firms, a simple random sample of 48 firms (15 in EC, 20 in GP, and 13 in KZN) was chosen. The firms that participated in the study had shown interest in Kaizen practices.

In 2023, the 48 firms were sorted by location and divided into 20 groups in accordance with the number of employees. One firm was selected from each group using a groupwise random sampling technique. Out of the 20 firms that were selected, five firms were in EC, 10 firms in GP, and five firms in KZN. The total number of 20 companies and their locations were decided based on the maximum capacity that the basic Kaizen could accommodate. As a result, 20 firms, including one large (with more than 250 employees), nine medium (with 51 to 250 employees), seven small (with 11 to 50 employees), and three micro (with 10 or less employees), were selected. Ten were tier 1 (more than 10% of total manufacturing sales were to OEM), eight were tier 2 (more than 10% of sales were to tier 1), one was tier 3 (more than 10% of sales were to tier 2), and one was in the automotive manufacturing aftermarket.

Selection of consultants

Twenty-four consultants were selected from five business support organisations in South Africa, namely, Automotive Industry Development Centre Eastern Cape (AIDC-EC), Automotive Industry Development Centre Gauteng (AIDC-GP), Plastic South Africa (Plastic SA), Productivity South Africa (Productivity SA), and Production Technologies Association of South Africa (PtSA). The organisations were selected because they were government-supported agencies that were involved in the implementation of productivity programmes in SMMEs, and they were able to provide their services for this intervention at no cost. The selection of the 24 consultants was based on the manageability for classroom training and on having enough consultants to implement the productivity programme at the 20 firms selected. The consultants were selected based on interviews and past job records in relation to sufficient experience on quality and productivity improvement (QPI) activities.

Kaizen training

From August to November 2022, short-term sensitisation training was conducted at 12 firms out of 20 firms. Although an invitation was extended to all the 20 companies, 12 volunteered to participate in the training. The training had 2-day CRT that covered 4S or 5S, Kaizen and Muda theory, 1-day 4S or 5S practice in the firm, and 2 half-day follow-up activities. After the sensitisation training, the firms were assessed on the level of implementation of 4S activities, management commitment, and management systems by using a checklist and rating on a scale from 1 to 5.

From August to November 2023, 20 firms participated in the basic Kaizen course that implemented 4S or 5S, Muda minimisation, and QC story problem-solving activities (interventions). The training consisted of 2 days of CRT for workplace leaders, lectured by the consultants, and 3 months of ICT. Prior to the CRT for firms, the consultants participated in 5 days of CRT and their Kaizen knowledge was assessed through a test. During ICT, one or two consultants were assigned to one firm, and they visited the firm once a week to support Kaizen implementation. The actual period and number of visits depended on the progress of the Kaizen activities in each firm. Based on weekly sessions, the workplace leaders implemented QC story problem-solving measures. Specific key performance indicators (KPIs) were set for each of the QC story problem-solving measures and were monitored before and after the implementation of the measures by the workplace leaders (Table 2).

At the end of the training period, Japanese Kaizen experts assessed the activities in each firm to determine the effectiveness of the intervention. The Kaizen experts assessed each step of the problem-solving activities, namely, (1) selection of the theme, (2) comprehending the current situation, (3) target setting 1 (KPI), (4) target setting 2 (timeline), (5) cause analysis, (6) planning and selection of countermeasures 1 (in relation to the root cause), (7) planning and selection of countermeasures 2 (practicality), (8) implementation of the countermeasures, (9) confirmation of the result, and (10) standardisation, by using a checklist and rating on a scale from 2 to 10.

Data collection

A survey was conducted in all the 20 firms, and data were collected using a questionnaire. The questionnaire was a combination of rating-scale questions and questions that sought to know the size of the firm, position (tier) in the automotive supply chain, information sharing within the firms, and workers’ behaviour, among others. The authors pretested the questionnaire for validity over 2 days with a selection of five suppliers and additionally through 1 day of informal interviews. The questionnaire was then revised and finalized.

For sensitisation training in 2022, an improvement rate of 5S check sheet scores (4SIR) between before and after 5S implementation was used. The study made a comparison between the ‘before and after’ results of 10 firms out of 12 that participated in the sensitisation training. Out of the 12 companies trained, the consultants submitted the assessment results of only 10 companies. The before and after assessment utilized the same process, and the intention was to use the before assessment to compare with the after assessment to check the impact of the improvement of the Kaizen interventions.

For the basic Kaizen training in 2023, an examination of the productivity improvement rate (PIR), a comparison of specific KPI between, before, and after countermeasures, and a score of practical implementation capability (PIC) given to each countermeasure identified by the QC story problem-solving method were performed (Table 3).

Four external experts evaluated the technical level of each countermeasure and scored them separately. Practical implementation capability was an average score given by these four experts and used to compare the productivity improvement using the QC story problem-solving method between the firms. Finally, 22 countermeasures in 19 firms were implemented. One firm participated in the training but did not implement the countermeasure proposed by the team of consultants and workplace leaders (Table 4).

For the capability of the consultant, a total score of consultant competency (CC) calculated by the CRT test result and personal attribute competency evaluated by the external experts were used. Twenty-four consultants were evaluated, and 22 consultants implemented one countermeasure, and two jointly implemented one countermeasure.

Ethical considerations

Ethical clearance to conduct this study was obtained from the Research Ethics Committee, JICA Ogata Sadako Research Institute for Peace and Development (No. JICADI-202208190001). The questionnaire surveys of the companies were implemented with the financial support of JICA under the approval of an internal review board of JICA Research Institute (Reg. No. JICADI-202208190001) and a written agreement between the survey institute and the companies. The training activities were implemented based on the written agreements between the training institutions and participating companies. Both agreements required that collected data be kept anonymous and would not be disclosed in a form that could identify a firm without the prior consent of the respective firm.

Results

Table 2 shows the results of the sensitisation training and basic Kaizen training, namely, 4SIR, PRI, PIC, and CC of 23 countermeasures in 20 firms implemented by workplace leaders and 24 consultants. Firm No. 20 does not have a score of PIR because the countermeasure was not implemented. At firm No. 19, two consultants, V and W, worked on the same intervention implementation. For the sensitisation workshop, only 10 firms provided 4SIR to measure change before and after 4S. The table is sorted by tier level and in the order of PIC of each countermeasure.

Regarding countermeasures implemented, the target KPIs that indicate the focus of countermeasures vary. Twelve projects were monitored by time-related KPIs such as the reduction of changeover time of dies (six companies), lead time of the specific process (two companies), downtime, cycle time, pick up time, and checking time. Three projects were monitored by the reduction of the defect rate of products. Four projects were monitored by productivity-related KPIs (productivity or production capacity). Other KPIs include reduction of WIP, reduction of raw material loss, and improvement of plan execution percentage. These countermeasures were selected based on discussion and analysis of data obtained at each workplace so that they reflected the challenges that each firm wanted to solve within the 3-month project period.

Because the training was conducted over 3 months and utilized the QC story problem-solving method, the actual countermeasures implemented were not very complex. When the authors communicated with the firms, firm No. 15 stated that the countermeasure they implemented was not their priority issue.

Firms No. 1, 2, and 4 focused on the reduction of defect rate, which is the effective improvement of the quality of products with relatively high levels of difficulty. Hence, their PICs indicate that the level of countermeasures is also relatively high.

The data were analysed using Excel data analysis software. The data were derived from the survey questionnaire and analysed. The PIC of the firms does not show any correlation with firm size, tier, and improvement of KPI (PIR) (Table 5) and other features of firm management, such as information sharing by management and workers’ behaviours collected by the questionnaire survey. It can be said that the QC story problem-solving method is quite effective for different types of problems within firms of different sizes, types of products, and management styles that are randomly selected, although results are measured just after the intervention.

The ranking of PIC and 4SIR shows a strong positive correlation (Table 5). This result implies that good performers of 4S or 5S activities have a high potential for improving productivity by using the QC story problem-solving method. This can be expanded that 4S or 5S is a good entry point to measure the firm’s productivity improvement at the beginning of the Kaizen intervention.

The rankings of consultant capability CC and PIC have a strong positive correlation, which means that the effectiveness of countermeasures relies on the capability of the consultants (Table 5). This is consistent with the study conducted in Ghana that showed a relationship between impact on firm productivity improvement and dependence on the level of skill of the training consultant utilized on the project (Atta-Ankomah et al. 2022). In the areas where strong correlations are indicated, there has been an improvement after the Kaizen implementation, which provides evidence that the resources and systems put in place that did not exist before have made a difference to the performance of the company supported.

The study results show that the QC story problem-solving method for Kaizen implementation can be successfully used in automotive firms irrespective of firm size and tier level, as the PIR% has been significant in all firms studied (Table 5). The overall average PIR of the 22 countermeasures is 62.0%, which is a significant improvement.

The study set out to analyse the relationship between the use of the QC story problem-solving methodology and the firm’s productivity improvement and the impact of the consultants’ capability in implementing the Kaizen intervention on the firm’s productivity improvement. The results indicated that there is a positive outcome and impact on a firm’s productivity improvement when using a combination of the QC story method and a capable consultant to support the intervention implementation.

Conclusion

Many small and medium-sized enterprises in developing countries are under pressure to improve their performance and competitiveness because of their relative size, which will make it easier for them to integrate into global value chains (Bell & Monaco 2021).

The automotive industry has enormous potential as well as challenges because of rising globalisation and severe competition. To remain competitive in a supply chain, suppliers play an important role and have historically contributed by consistently providing high-quality goods or services at competitive prices, wherever and whenever they are required. Businesses compete on a global scale, and the distinctions in productivity and quality’s contributions to global competitiveness are significant. A firm’s procedures and products can be continuously improved to achieve this (Badenhorst-Weiss & Tolmay 2016; Hosono et al. 2020; Souza et al. 2020).

The adoption of Kaizen in the automotive sector by tier 1 and OEM firms has enabled them to be competitive when compared with their international counterparts (Barnes et al. 2017). To have a competitive automotive supply chain, lower-tier firms need to adopt the QC story problem-solving methodology as a business imperative. Lower-tier firms are still uncompetitive when compared with global firms (Higuchi et al. 2024). As Kaizen has not been entrenched within lower-tier firms, the methodology of training these firms is important so that there is a corresponding impact on learning and performance.

The QC story problem-solving method, together with the ICT and CRT conducted by capable consultants, showed a positive approach for entrenching Kaizen practices within lower-tier firms. A significant improvement in the firms’ performance was realised.

The key findings from this study showed the following:

• Quality control (QC) story problem-solving method influenced an average 62% improvement of PIR.
• Quality control (QC) story problem-solving method effected improvement across companies of varied sizes and tier levels. This means that the method is versatile.
• The QC story problem-solving method had a correlation with the capability of the consultants. The training of employees by the consultant improved the QC story problem-solving method.

The study suggests that management involvement and support to Kaizen programmes in firms are a key driver. Management needs to be involved from the inception of Kaizen interventions, during the interventions, and beyond the involvement of external consultants. The gains in the firm’s productivity improvement need to be sustained and horizontally deployed by the management of the firms. It is, therefore, crucial that management in lower-tier firms has the skills and knowledge to be able to make Kaizen a business imperative.

The automotive sector in South Africa needs to localize more manufacturing, and the involvement of lower-tier suppliers is critical in this objective of the South African Automotive Masterplan 2035, which aims to increase localisation from the current average of 39% to 60% (Barnes & Black 2017). The adoption of Kaizen and the QC story problem-solving method in lower-tier firms provides a mechanism to improve quality and reduce costs and also provides a pathway to becoming globally competitive.

Limitations of the study

The study was confined to only SMMEs in the automotive industry in Eastern Cape Province (EC), Gauteng Province (GP), and KwaZulu-Natal Province (KZN) in South Africa. This created a limitation in the sample size as database information availability was limited. Cross-sectional research was performed in this study and the stated results are limited to a specific period.

Future research

In the future, a longitudinal survey and observation study aimed at identifying the effectiveness of the QC story problem-solving approach over an extended duration may be used.

The QC story problem-solving method is a promising approach to improving productivity in firms in the automotive industry in South Africa. Although the improvement ratio and its average show the short-term impact measured at the end of the training, it is necessary to examine the long-term impact with an additional questionnaire survey and with a comparison with a control group.

Acknowledgements

The training was implemented by the National Quality and Productivity Network (NQPN), which is a network of the dtic, AIDC-EC, AIDC-GP, ASCCI, JICA, Plastics SA, Productivity SA, and PtSA. The authors appreciate the efforts of the NQPN, their member consultants and participating companies that implemented Kaizen activities.

They also appreciate Keijiro Otsuka and Yuki Higuchi for their continuous guidance and advice on their analysis.

The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article.

Claude Pillay: Conceptualisation, Data curation, Formal analysis, Visualisation, Writing - original draft. Kimiaki Jin: Conceptualisation, Data curation, Formal analysis, Writing - original draft. Forbes Chiromo: Writing - review & editing. All authors reviewed the article, contributed to the discussion of results, approved the final version for submission and publication, and take responsibility for the integrity of its findings.

The authors disclosed receipt of the following financial support for the research, authorship, and/or publication of this article. This work was supported by Japan International Cooperation Agency (JICA).

Data supporting the findings of this study are available from the corresponding author, Claude Pillay, on reasonable request.

The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency, or that of the publisher. The authors are responsible for this article’s results, findings, and content.

References