Investigating the root causes of long lead times in the automotive aftersales industry by means of the lean philosophy: a South African case study

Abstract

The aftersales service industry has the potential to produce 80% of an organisation's profit, although most only generate 20%. Similarly, the organization, used as a case study, struggles to achieve their operational performance indicators (OPIs) and the consequent profit margins. The aim of the study was therefore to investigate the root causes and develop corresponding preventative actions. The research followed a DMADV (Define-measure-analyse-design-verify) approach, uniquely designed by integrating specific methods: Gemba walks defined the scope of the problem and aim; The root causes determined by a 20-Key audit and five-why analyses were reported in a thematic map; Potential solutions were developed utilising Kernel theories, and verified via the Delphi technique. This study points out the many challenges, such as low employee moral and high staff turnover rates, when implementing a German adaptation of a Japanese philosophy (Lean) in the South African service industry, emphasizing the misunderstanding of lean principles. Furthermore, it highlighted the implications of a cross-cultural adaptations of lean, within organizational cultures.