A systems thinking approach to value engineering in the African cement market

Abstract

The African continent offers major potential for suppliers that are targeting the ever-growing cement industry. Whether it is aged plants seeking upgrading or modernisation, or existing modern plants requiring regular maintenance, there is good potential for service providers that are seeking business growth. In today’s unforgiving economic climate and ever-changing business environment, characterised by globalisation and increased competitiveness, it is increasingly important for every cement manufacturer to streamline its processes, optimise its overall equipment effectiveness, and effectively implement tested cost-reduction methods to remain competitive in the market.

The main objective of this research study is the evaluation of different systems thinking approaches and to determine how they can add value to a company’s engineering product/ services offerings in the Africa cement market. The research also shows that the current literature on systems engineering does not really make use of value engineering concepts. The study has identified this lack of collaboration, and has developed a model that combines both engineering concepts. This novel research identifies a narrative inquiry method that is qualitative in nature as a suitable research method to use, and implements it effectively to derive the initial proposed model.

The proposed model could be used to promote and strengthen the utilisation of engineering services and products in the African cement industry. The proposed model is also designed to maximise the marketing potential and sales growth of engineering products and services in this market, taking into account the unique challenges that organisations face in this region. This study enforces the need to view Africa as 56 separate and unique countries. The unique challenges of each micro-market region in Africa motivate the need for a process that can be used across the continent. The process allows an organisation to focus on a specific country, streamlining its processes for this market and successfully implementing its marketing strategy, while taking into account its unique market challenges. The study aims to reinforce the need that business models focusing on Africa and developed through management research focusing on Africa are necessary to address the continent’s unique challenges and issues relating to organisational effectiveness and efficiency.

The biggest factor determining the dissemination of a product or service in Africa appears to be supplier’s costs, then quality, and finally its delivery time. By following a micro-market approach, it would appear that the new proposed value engineering systems process could greatly benefit organisations servicing the African cement manufacturing market. By embracing this process as a recipe for Africa market penetration, it could be a formula for success. The contribution of this research is seen as twofold. First, the research identified a knowledge gap in which systems thinking and value engineering are not used in combination to improve businesses operating in the African cement market. Second, this research validates to some extent a theoretical model that has been constructed to address the market challenges identified in the literature review and the interview findings. The model is unique because it combines both systems thinking and value engineering while taking into account the unique challenges that organisations face when doing business in Africa.