PROPOSAL
Research Title
Effectiveness of Material Requirements Planning (MRP) framework within manufacturing cooperatives based in Polokwane Municipality Area

Presented by Phetola Cyprian Mogale
Student Number: 113904
Postal Address P.O. Box 507
Polokwane
Ladanna
0704
Contact Numbers
Work 015 297 6632
Cell 082 906 2746
Email address: mogalep@libsa.co.za
Date submitted: 12 April 2012

Proposal for dissertation submitted in partial fulfilment of the degree Masters in Business Administration at the Mancosa Management College of Southern Africa

TABLE OF CONTENTS i
CONTENT PAGE 1. Introduction 4 2. Research Context: Background 4 3. Research Problem 6 4. Aim of the Study 7 5. Research Objectives 7 6. Research Questions 7 7. Significance of the Study 8 8. Literature Review 9 9. Research Design and Methodology 12
9.1 Research Methodology 12
9.2 Sampling Strategy 13
9.3 Data Collection Instruments 14
9.4 Data Analysis 15
9.5 Pilot Study 15
10. Ethical Considerations 15
11. Chapter Organization 16
12. Proposed Time-Table 17
13. Bibliography 18
LIST OF TABLES
TABLE 1.1 SAMPLE SIZE 13

LIST OF ACRONYMS ii
CRP Capacity Requirements Planning
DTI Department of Trade and Industry
EOQ Economic Order Quantity
ERP Enterprise Resource Planning
GDP Gross Domestic Product
IT Information Technology
LEDET Department of Limpopo Economic Development Environment and Tourism
LIBSA Limpopo Business Support Agency
MPS Master Production Schedule
MRP Material Requirements Planning
APPENDICES 20
APPENDIX A: Letter of Permission to Conduct Study 20
APPENDIX B: Draft Covering Letter 21
APPENDIX C: Draft Questionnaire 22
APPENDIX D: Draft Clarification Meetings Schedule 27

1. INTRODUCTION
This study reinforces the thinking that manufacturing companies, whatever their size and economic disposition face the same daily practical problem that customers demand products to be available in a shorter time than it takes to make them. This entails that some degree of inventory management is imperative to meet or exceeds such customer expectations. This paper challenges the predominant view that a structured Material Requirements Planning (MRP) strategy should be the preserve of highly capitalised manufacturing companies only.
The paper argues that a functional MRP-based manufacturing framework is imperative for a sustainable manufacturing activity no matter the size of its economies of scale. Simply put, this paper upholds the classical view that an MRP-driven manufacturing strategy must be at the centre of any initiative by Manufacturing Cooperatives to enhance their operational capacity and business continuity index.
2. RESEARCH CONTEXT: BACKGROUND
The LIBSA Impact Assessment Report 2011 has emerged as one of the key report that profiles operational activities of manufacturing cooperatives in the Polokwane Municipality. The report argues that 80 percent of manufacturing cooperatives are facing dire operational challenges of unproportionate nature.
Citing an example, the report shades a grim picture of a brick making cooperative in Seshego Industrial Area. According to the report, this brick making venture is on the verge of collapse due to the following operational hurdles: a) Bottlenecked supply of key raw materials like sand and clay, b) Abnormal idle hours owing to unannounced machine breakdowns, c) Late or delayed deliveries of bricks to customers and, d) Unsystematic inventory management methods.
The report estimates that there are close to 100 manufacturing cooperatives piling their trade in Polokwane Municipality.
A primary co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. The co-operative movement in South Africa began in the early 1900s in response to the acute economic crisis experienced in farming communities in the wake of the Anglo-Boer War. A recent report by the Department of Trade and Industry (DTI) titled “The DTI Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises”, (2008) concurs with the above mentioned statements and further indicates that co-operatives in a democratic South Africa have been supported by government and donor agencies as vehicles for enterprise development. In order to further address the imbalances of the past, new laws and regulations such as the Co-operatives Act No. 14 of 2005 were put in place by the democratically elected government
Co-operatives can be community driven initiatives and therefore directly improves the lives of the people on the ground as soon as they start to realize profit. These initiatives can be stimulated by government including districts and local municipalities and the private sector by information dissemination relating to co-operatives development and promotion.
Co-operatives have been identified by political and economic stakeholders as a viable means of alleviating poverty, underdevelopment and unemployment in South Africa. To this end the formation and support of co-operatives is seen as crucial to the development of the second economy.
Slack, Chambers and Johnston (2010:664) concede that MRP is a set of calculations embedded in a system that helps operations make volume and timing calculations for planning and control purposes. Kruger and Ramphal (2009:232) indicate that the origins of MRP can be traced way back in the early 1960s when IBM’s Information Technology (IT) was at its infancy and adopted it. Jacobs, Chase and Acquiland (2009:590) argue that from humble beginnings computing the schedules and amounts of materials required, MRP has grown to become fully integrated, interactive, real-time systems capable of multisite global applications.
According to Pycraft, Singh, Phihlela, Slack, Chambers and Johnston (2010:454) a combative MRP framework satisfies the following three broad objectives: * Ensure materials are available for production and products are available for delivery to customers, * Maintain the lowest possible material and product levels in store, * Plan manufacturing activities, delivery schedules and purchasing activities.
Kruger and Ramphal (2009:231) state that MRP is a computer based information system used to schedule and order dependent-demand inventories. However, many emerging companies in South Africa are yet to embrace in totality the concept of Material Requirements Planning. The report by the DTI titled “The DTI Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises”, (2008) seems to confirm this trend. The report paints a pessimistic view on why the average life span of manufacturing cooperatives based in rural areas is sharply low.
According to the report, manufacturing co-operatives like any other form of business ownership operate in turbulent and volatile business environments, where rivalry intensity is more pronounced. The report noted that manufacturing co-operatives are exposed to the brutalities of market forces just like any other manufacturing venture. They ply their trade in the global market space against any other multi-national enterprise where markets are driven by customer tastes and preferences.
The report revealed that operational hurdles such as production overruns, raw material supply shocks, abnormal idle hours, unannounced machine breakdowns and power outages are still common in manufacturing cooperatives based in rural areas. The report however does not shed light on why a number of rural-based manufacturing cooperatives are experiencing dire sustainability challenges. This is one of the reasons why this study attempts to demystify the integral role of a functional MRP template in turning around the waning fortunes of manufacturing cooperatives based in Polokwane Municipal area.
2.1. Rationale of an MRP system to a manufacturing entity
According to Kruger and Ramphal 2009:231, a combative MRP system is a lifeblood of any manufacturing activity. It helps to bolster the “Time to Market”, “Cost to Market” and “Quality to Market” leverages of any manufacturing entity. This entails that by adopting a fully-fledged MRP framework, a manufacturing venture will improve in greater strides its business sustainability and customer satisfaction index.
3. RESEARCH PROBLEM
The problem of the study is to evaluate the perceptions, attitudes and inclination of manufacturing co-operatives towards MRP based manufacturing approaches. A recently published Impact Assessment Report by LIBSA (2011) bemoaned the absence of disaggregated data about MRP trends in manufacturing co-operatives in Polokwane Municipality area. The report observed that an MRP based manufacturing strategy is a new phenomenon and as such, few manufacturing co-operatives based in growth points understand its full value and contribution to the firm’s productivity index.
Limpopo Business Support Agency (LIBSA) is a coherent institutional framework mandated by the provincial Department of Limpopo Economic Development, Environment and Tourism (LEDET) to support and assist co-operatives to register, develop business plans, training on co-operatives management and business management, assist them to access markets and provides grant funding. LIBSA plays a pivotal role in providing mission-critical business development support to funded and non-funded co-operatives in Limpopo province.
It is critical to note that in LIBSA the provincial government hosts a special-purpose capacity building vehicle that provides a holistic range of enterprise development services to distressed co-operatives to ensure that they contribute to and benefit from sustainable economic growth by becoming more competitive, profitable, and able to create more and better employment opportunities.
Co-operatives are businesses and the business world changes every time. The key challenge facing this study remains to reaffirm the dynamic role of MRP in driving manufacturing strategies of co-operatives based in the Polokwane Municipality area. In this light, the slow adoption of an MRP-driven manufacturing strategy in co-operatives based in the municipality is the key concern of this research.
4. AIM OF THE STUDY
The aim of research is to determine the attitude of manufacturing co-operatives in Polokwane Municipality area towards implementing an MRP-driven manufacturing strategy. Primary data will be obtained using a structured, self-administered questionnaire among a sample of directors of manufacturing co-operatives based in Polokwane Municipality area. It is the submission of this study that manufacturing co-operatives, no matter their size and financial stature need to adopt an MRP-driven manufacturing strategy to improve productivity, sustainability and customer satisfaction leverages.
5. RESEARCH OBJECTIVES 5.1. To assess the level of MRP concept uptake in manufacturing co-operatives in Polokwane Municipality area, 5.2. To discuss the role of an MRP-driven manufacturing approach in improving the sustainability index of manufacturing co-operatives in Polokwane Municipality area, 5.3. To identify the challenges facing manufacturing co-operatives in Polokwane Municipality in implementing MRP based production strategies, 5.4. To recommend remedial measures in closing MRP gaps in manufacturing co-operatives based in Polokwane Municipality area.
6. RESEARCH QUESTIONS 6.1. What is the level of MRP concept uptake in manufacturing co-operatives based in Polokwane Municipality area? 6.2. What is the role of a functional MRP framework in improving the sustainability index of manufacturing co-operatives in Polokwane Municipality area? 6.3. What are the challenges facing Polokwane Municipality-based manufacturing co-operatives in adopting functional MRP frameworks? 6.4. What gap-filling measures can be adopted to improve the MRP effectiveness of manufacturing co-operatives in Polokwane Municipality area?
7. SIGNIFICANCE OF THE STUDY
According to Limpopo Co-operatives Strategy (2009) manufacturing co-operatives act as prolific job creators, seed of big businesses, drivers of economic growth and indeed catalysts for wealth creation and redistribution in the economy. The economic value of co-operatives to broader society has what led Pycraft et al. (2010:303) to conclude that any economic recovery plan not premised on the capacity building of manufacturing co-operatives may yield marginal results. Although economists differ in terms of the quality of contribution of manufacturing co-operatives to the Gross Domestic Product (GDP) in South Africa, at least there is convergence on the fact that co-operatives play a stabilisation role in the economy.
The following are some of the benefits of the study to the broader society: * Manufacturing co-operatives who adopt and implement in totality MRP strategies are set to fortify their business competitiveness and sustainability index, * Policy making organs in the economic development cluster in government may use the findings of this study to develop sustainable manufacturing co-operative capacity building models in the province, * The study may reiterate the cogwheel role played by MRP in improving the productivity and sustainability index of manufacturing co-operatives in Polokwane Municipality area, * Furthermore, the study may trigger the realignment of existing co-operative development templates used by various capacity building agencies in the province, * The study may also be used to benchmark similar studies or theoretical work of other researchers in the co-operative development sector in South Africa.

8. LITERATURE REVIEW
Definition of key terms and relevant concepts 8.1 Material Requirements Planning Theory
Research Literature advanced by Goddard (2008:37) defines Material Requirements Planning (MRP) as a computer-based inventory management system designed to assist production managers in scheduling and placing orders for dependent demand items. Dependent demand items are components of finished goods such as raw materials, component parts, and subassemblies or which the amount of inventory needed depends on the level of production of the final product. For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminium, tires, seats, and derailleurs.
The history of the MRP theory is linked to a company called Black and Decker which adopted the first software-based MRP template in 1964 as a response to the Toyota manufacturing program (Jacobs et al., 2009:590). Diehl and Armstrong (2011:36) concur with the statement and indicate that MRP was developed in 1960s and 1970s. According to Adam and Ebert (2007:524) the MRP approach to manufacturing and inventory management emerged an instant hit due to the following multiplier effects: * Inventory reduction: MRP determines how many of a component is needed and when, in order to meet the master schedule, * Reduction in production and delivery lead times: MRP identifies materials and components quantities, timings, availabilities and procurement and production actions required to meet delivery deadlines, * Realistic commitments: realistic delivery of promises can enhance customer satisfaction, * Increased efficiency: MRP provides close coordination among various work centres as products progress through them.
Note that before its launch, the manufacturing industry relied much on the Economic Order Quantity (EOQ) inventory modelling approaches.
Sahay and Gupta (2007:48) reiterate that scheduling is an activity which takes place at all stages in the manufacturing supply chain. Although manufacturing people will have a major input in determining that schedule and a major responsibility for making it work, other divisions and/or units will also have important inputs and responsibilities.
Heizer and Render (2008:586) remind us that MRP is the preferred way to schedule production and inventory when demand is dependent. Gupta and Snyder (2009:3705) concur with the above mentioned statement and state that the MRP process generates a production plan which guarantees an exact quantity of the right materials available at the needed time. The rationale for having these functional areas working together and being involved in formulating the plan, is that they will have reasonably good knowledge of the plan and more reason to work towards achieving it.
Basu and Wright (2008:68) indicate that MRP is incomplete if it does not take into account whether manufacturing resources will be available at the desired time. Mahadevan (2007:343) argues that in real life situations, plans become obsolete over time due to changes in the environment. Consequently, it requires that directors and managers in their respective positions must be knowledgeable about a number of other aspects of MRP.
Sahay and Gupta (2007:48) declare that MRP characterises explosion of bill of material and analysis of material requirements throughout the year according to demand and schedule in place. In Crowther and Green’s (2008:13) words, MRP is a computerised scheduling tool with the objective of maintaining a smooth flow of production. Its aim is to schedule the production of components and the ordering of raw materials by ordering the schedule of processing for each machine tool within the factory so that the final output is maximised from minimal stock levels and with maximum speed. When properly implemented, MRP can contribute in a major way to reduction in inventory while improving customer-service-levels (Heizer and Render, 2008:586).
Role of MRP in a manufacturing activity
MRP systems offer a number of potential benefits to manufacturing firms. According to Basu and Wright (2008:68), some of the main benefits include: * Helping production managers to minimize inventory levels and associated carrying costs, * Track material requirements, * Determine the most economical lot sizes for orders, * Compute quantities needed as safety stock, * Allocate production time among various products, and * Plan for future capacity needs.
Mahadevan (2007:343 advocates that the information generated by MRP systems is useful in other areas as well. "A range of people in a typical manufacturing company are important users of the information provided by an MRP system," In his own words, Mahadevan (2007:345) wrote. "Production planners are obvious users of MRP”.
Production managers, who must balance workloads across departments and make decisions about scheduling work, and plant foremen, who are responsible for issuing work orders and maintaining production schedules, also rely heavily on MRP output. Other users include customer service representatives, who must be able to supply customers with projected delivery dates, purchasing managers, and inventory managers."
Sahay and Gupta (2007:49) acknowledge that despite being key element in the production value chain, MRP systems also have several potential drawbacks, however. First, MRP relies upon accurate input information. Sahay and Gupta (2007:49) argue that if a small business does not maintain good inventory records or fail to update its bills of materials with all relevant changes, it may encounter serious problems with the outputs of its MRP system. The problems could range from missing parts and excessive order quantities to schedule delays and missed delivery dates. At a minimum, an MRP system must have an accurate master production schedule, good lead time estimates, and current inventory records in order to function effectively and produce useful information.
Improving sustainability index of MRP systems
Jacobs et al., 2009:590 identifies another weakness of MRP. They argue that in a small business, an MRP framework is time consuming, and costly to implement. The key to making MRP implementation work is to provide training and education for all end-user employees.
To counter employee resistance to an MRP system, Basu and Wright (2008:68) argue that it is vital to identify whose power base will be affected by a new MRP system.
Sawaya 2009:135 wrote in Industrial Management, "These end-users must be converted or the system may risk failing. Key personnel must be convinced that they personally will be better served by the new system than by any other alternative."
One way to make any MRP system sustainable is to adjust reward systems to reflect production and inventory management goals. "People generally act in their own self-interest," Sawaya 2009:136 noted. The argument is that if the performance measures that are used in determining compensation and promotion do not adequately address materials management, then no system in the world can significantly improve the situation. 8.2 Enterprise Resource Planning (ERP)
According to Schroeder (2008:379), ERP is a system used to plan and control all resources, including inventory, capacity, cash, personnel, facilities and capital. Jacobs et al. (2009:456) argue that ERP when implemented correctly links all the areas of the business. ERP systems allow decisions and databases from all parts of the organization to be integrated so that the consequences of decisions in one part of the organization are reflected in the planning and control systems of the rest of the organization. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organisation and manage the connections to outside stakeholders.

8.3 Inventory Planning
Pycraft et al. (2010:370) define inventory planning as the process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity. Inventory planning has a direct impact on the company’s cash-flow and profit margins especially for smaller businesses that rely upon a quick turnover of goods or materials. 8.4 Capacity Planning
According to Schroeder (2008:9) capacity planning determines not only the size of facilities but also the proper number of people in operations. Its purpose is to aid management in checking on the validity of master schedule. Kruger and Ramphal (2009:274) reiterate that capacity planning cannot be a success if it is not included in the organization’s vision, mission, and strategic plans.
In the context, capacity planning, “capacity” is the maximum amount of work that an organisation is capable of completing in a given period. A discrepancy between the capacity of an organisation and the demands of its customers results in inefficiency, either in under-utilised resources or unfulfilled customers. The goal of capacity planning is to minimise this discrepancy. 8.5 Capacity Requirement Planning (CRP)
Slack et al. (2010:428) maintain that it looks at the day-to-day effect of the works orders issued from the MRP on the loading individual process stages. It is the process of determining in detail the amount of labour and machine resources needed to achieve the required production targets. This process considers the lead time of operations and offsets the operations at work centres accordingly.
8.6 Challenges faced when implementing MRP
The following are some of the challenges faced by co-operatives: * Access to quality supplies and services at reasonable cost: Suppliers will be more willing to discuss customizing products and services to meet specifications if the purchasing group provides them with sufficient volume. * Failure to meet demand for products: In areas where there is high demand for co-operatives products, co-operatives do not respond with sufficient supply. * Increased strength in market place: Marketing on co-operative basis can lower distribution costs, conduct joint product promotion, and develop the ability to deliver their products in the amounts and types that will attract better offers from purchasers. * Low skills, literacy and education levels: Some of the co-operatives lack technical skills related to their field and type of business. The low literacy rate and low levels of education amongst co-operative members pose a serious challenge for co-operative initiatives. * Lack of funds: Co-operatives in general, especially the smaller ones are unable to attract private sector funding. Some of the co-operatives do receive funds but such funds are inadequate and as such they are unable to meet the minimum requirements of the business. * Conflicts within co-operatives: Co-operatives are plugged with adverse leadership conflicts, absence of cohesion and the perpetual challenge of the founder syndrome. This has seen many co-operatives shut down or simply cease to exist or many members walk out. * Competitiveness and quality assurance: Some co-operatives still use very old machinery and equipment. Usage of the correct machinery by co-operatives will ensure production of quality products that will ensure easier market access either locally or internationally.
9. RESEARCH DESIGN AND METHODOLOGY
In their own words, Burns and Bush (2010:134) state that research method describe the sample plan, process to be used in the development of the research instrument, data-collection method and data analysis. Quantitative method will be used in this research.
9.1.1 Research Strategy
The study employs the quantitative research method. Quantitative research is a structured research approach using a sample of the population designed to produce quantitative data (Housden, 2008:73).
According to Burns and Bush (2010:235) quantitative research involves the use of structured questions where the response options have been predetermined and a large number of respondents are involved.
9.1.2 Research Design
The research study adopts the structured questionnaire as its design. According to Burns and Bush (2010:143) research design is a set of advance decisions that make up a master plan specifying the methods and procedures for collecting and analysing the needed information. 9.2 SAMPLING STRATEGY 9.3.1 Participants/Population (N =150)
Burns & Bush (2010:364) define a population as the entire group under study as specified by the objectives of the research project. This study will use the big net approach as a ploy to draw views from all key informants. Directors of manufacturing co-operatives based in Polokwane Municipality area constitute the sample frame of the study. An updated register from LIBSA (2011) which shows that Polokwane Local Municipality has a total population of 150 manufacturing co-operatives operating within its sphere of influence will be utilized. 9.3.2 Sample Size (n =50)
Literally, a sample is defined by Burns and Bush (2010:408), as a subset of the population that exhibit all the characteristic features of the population. In this study, 67 percent of the population will be selected to participate in the study. Note that the 67 percent sample is way above the minimum benchmark of 10 percent required to make valid statistical inferences and generalisations of the study (Krishnaswami and Ranganatham, 2007:151).
Table 1.1: Expected Sample Size Sample Frame | Estimated Population (N) | Expected Sample size (n) | Directors of Manufacturing Cooperatives | 150 | 100 | As a Percentage | 100% | 67% |

9.3.3 Sampling Technique
Non-probability sampling approaches will be employed because the study is deemed quantitative in nature. According to Burns and Bush (2010:143) a purposive sampling method is imperative in studies that require the researcher to leverage on his or her own personal experience, tuition and judgment to select study respondents. The setup is such that only key informants deemed by the researcher to have the kind of information that add value to the research process are selected. Purpose sampling has been favoured because it gives the researcher a more hands-on approach and rational control in the selection of relevant study participants. 9.3 Data Collection Instruments
Primary data will be obtained using a structured, self-administered questionnaire and respondents will be requested to complete the questionnaire during their convenient and agreed times. Housden (2010:170) highlight that a questionnaire is a structured data-collection mechanism involving a range of question formats and completed orally or in print. The Likert Scale question format where respondents will be given the leeway to express and rank their views on the subject being researched will be used. According to Housden (2010:176), the Likert Scale makes it easy and simple to code, capture, and analyse data. 9.4.1 Data Collection Procedures
The researcher will convene clarification meetings with members of manufacturing co-operatives at least three weeks before commencement of the data collection process. These meetings will be used to drum-up stakeholder support, generate necessary interest, build consensus on the research procedure, tie some loose logistical ends, foster cooperation and build stakeholder confidence in the entire research process. 9.4.2 Field Work
Questionnaires will be distributed in person to key informants and reference groups. During the data collection process, the researcher will check the completeness of the responses, ensure that all questions are responded to, and motivate respondents to fully complete the questionnaires. Checking response errors will be done concurrently during the data collection process. 9.4 Data Analysis
According to Burns and Bush (2010:61) data analysis is used to give raw data meaning. The edited data will be coded into the computer, assigned numerical values, organised into categories and statistically manipulated. Once the data is coded into the computer, quantitative data will be summarised using frequency tables, column graphs; and will be subjected to deductive and trend analysis. In line with the advice from research theorists like Housden (2008) and Burns & Bush (2010), data analysis will be done concurrently with the data collection exercise.
The mean, standard deviation, variance, coefficient, median, mode, cumulative and relative frequency calculations of collected data will form part of the whole data analysis initiative.
9.5 Pilot Study
In line with conventional research practices, the draft questionnaire will be subjected to a suitability test. This pre-testing process is designed to check ambiguity, subjectivity, relevance and applicability of the draft questionnaire. In view of this, five co-operatives in Polokwane City will be randomly picked to pilot the study. Feedback on the suitability and relevance of the questions will be solicited from respondents and appropriate adjustments will be effected to make the questionnaire as practical and relevant as possible.
10. ETHICAL CONSIDERATIONS
The following ethical aspects will be considered when conducting this study: * A written consent from directors of participating manufacturing co-operatives will be solicited, * The researcher will convene a series of meetings with all key informants to clarify on logistical aspects of the study, * The study will be conducted under anonymity conditions to protect the confidentiality and personal privacy of respondents, * An introduction letter will be attached to the questionnaire to guide respondents on how to complete self-administered questionnaires, * The findings of the study will be made known to the respondents both informally and formally.

11. CHAPTER ORGANISATION
This report will be structured in the following manner: * Chapter One Introduction * Chapter Two Literature review * Chapter Three Research methodology * Chapter Four Findings/results * Chapter Five Summary, conclusions and recommendations

12. PROPOSED TIME-TABLE: GANTT CHART Project Activity | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | No of weeks | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | Submission of research proposal to Supervisor | | | | | | | | | | | | | | | | | | | | | Adopting comments from the supervisor into the final proposal | | | | | | | | | | | | | | | | | | | | | Conducting a desk study | | | | | | | | | | | | | | | | | | | | | Compiling chapter 1 | | | | | | | | | | | | | | | | | | | | | Compiling chapter 2 | | | | | | | | | | | | | | | | | | | | | Compiling chapter 3 | | | | | | | | | | | | | | | | | | | | | Data collection – field work | | | | | | | | | | | | | | | | | | | | | Compiling chapter 4 | | | | | | | | | | | | | | | | | | | | | Submission of Chapter 1-4 to the supervisor | | | | | | | | | | | | | | | | | | | | | Compiling and submission of Chapter 5 | | | | | | | | | | | | | | | | | | | | | Synthesising the draft report | | | | | | | | | | | | | | | | | | | | | Submission of the draft report | | | | | | | | | | | | | | | | | | | | | Editing and proof reading the draft report | | | | | | | | | | | | | | | | | | | | | Submitting the final report | | | | | | | | | | | | | | | | | | | | |

13. BIBLIOGRAPHY
Adam Jr., E.E. and Ebert, R.J. (2007) Production and Operations Management: Concepts, Models, and Behavior. Fifth Edition. India: Prentice-Hall Private Limited.
Basu, R. and Wright, J.N. (2008). Total Supply Chain Management. London: Elsevier.
Burns, A.C. and Bush, R.F. (2010). Marketing Research. Sixth Edition. New Jersey: Pearson Education Inc.
Crowther, D. and Green, M. (2008). Organizational Theory. Mumbai: Jaico Publishing House.
Department of Economic Development, Environment & Tourism (2009). Limpopo Co-operatives Strategy. Limpopo Provincial Government: Department of Economic Development, Environment &Tourism.
Department of Trade and Industry (2008). Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises [online]. Available from: http://www.thedti.gov.za/smme/strategy.pdf [Accessed 21st March 2012].
Diehl, G.W. and Armstrong, A.J. (2011). Making MRP Work. Industrial Engineer, 1E [online], volume 43 Issue 11, p35-40. Available from: http://web.ebscohost.com/ehost/pdfviewer?vid=4 [Accessed 03rd April 2012].
Goddard, Walter E. "Focus on the Fundamentals of MRP II." Modern Materials Handling. December 2008.
Gupta, M. and Snyder, D. (2009). Comparing Theory of Constraint and Just-In-Time: A Literature Review. International Journal of Production Research [online], volume 47 Issue 13, p3705-3739. Available from: http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4 [Accessed 03rd April 2012].
Heizer, J. and Render, B. (2008). Operations Management. Ninth Edition. New Jersey: Pearson Education Inc.
Housden, M. (2008). Marketing Information and Research 2008-2009. United Kingdom: Elsevier Ltd.
Jacobs, F.R., Chase, R.B. and Acquiland, N.J. (2009). Operations & Supply Management. Twelfth Edition. New York: McGraw-Hill/Irwin.
Krishnaswami, O.R. and Ranganatham, M. (2007). Methodology of Research in Social Sciences. Mumbai: Himalaya Publishing House.
Kruger, D. and Ramphal, R. (2009). Operations Management. Second Edition. South Africa: Oxford University Press (Pty) Ltd.
LIBSA (2011). Impact Assessment Report For SMMEs and Cooperatives: Limpopo Provincial Government.
Mahadevan, B. (2007). Operations Management: Theory and Practice. India: Dorling Kindersley Pvt.
Pycraft, M., Singh, H., Phihlela, K., Slack, N., Chambers, S. and Johnston, R. (2010) Operations Management. Second Edition. South Africa: Pearson Education (Pty) Ltd.
Sawaya, William J., et al. "Ten Guidelines for Implementing Manufacturing Systems." Industrial Management. January-February 2009.
Slack, N., Chambers, S. and Johnston, R. (2010). Operations Management. Sixth edition. New York: Pearson Education Limited.
Schroeder, R.G. (2008). Operations Management: Contemporary Concepts and Cases. Fourth Edition. New York: McGraw-Hill/Irwin.

APPENDIX A: LETTER OF PERMISSION
29 March 2012
Dear Sir/Madam
REF: LETTER OF PERMISSION TO CONDUCT A STUDY
This letter serves to certify that Phetola Cyprian Mogale has been granted the permission by LIBSA Executive Management to conduct a study on the effectiveness of Material Requirements Planning (MRP) frameworks within Manufacturing Co-operatives in Polokwane Local Municipality area. The Executive Management strongly believes that the topic being researched is linked to the organisation’s long term vision on Co-operative Development and the findings thereof will be shared with the organization.
We urge all key informants and stakeholders to give him all the support he needs to see through the key assignment.
Yours Faithfully
____Signed___________
Avaathu Reuben Mbedzi
SENIOR MANAGER: POLICY AND RESEARCH

APPENDIX B: LETTER OF INTRODUCTION
Dear Respondent
In partial fulfilment of my Masters in Business Administration (MBA) studies with MANCOSA, I am currently conducting a MANCOSA supervised study on the effectiveness of Material Requirements Planning (MRP) driven manufacturing models in manufacturing co-operatives in Polokwane Municipality area in South Africa. In this context, you have been selected as one of the key informants to provide more insight on this interesting topic considered by many of national importance.
Note that in the interest of protecting your identity, your views and opinions shall be treated with high confidentiality and you are therefore advised not to reveal your identity in the questionnaire.

I thank you very much for your usual support and cooperation
Yours Faithfully
_______Signed_________
Phetola Cyprian Mogale
STUDENT RESEARCHER

APPENDIX C: DRAFT QUESTIONNAIRE A. DEMOGRAPHIC PROFILE OF RESPONDENTS

I. Age (tick where appropriate) Code | Class | Tick here | 01 | Below 20 years | | 02 | 21-30 years | | 03 | 31-40 years | | 04 | 41-50 years | | 05 | 51 years and above | |

II. Sex of respondents (tick where appropriate) Code | Sex | Tick here | 01 | Male | | 02 | Female | |

III. Educational qualifications Code | Class | Tick here | 01 | Grade 12 and below | | 02 | Certificate level | | 03 | Diploma level | | 04 | Degree level | | 05 | Post graduate level | |

IV. Race Code | Race | Tick here | 01 | Black African | | 02 | Indian/Chinese/coloured | | 03 | White | |

B. BUSINESS PROFILE OF RESPONDENTS i) Period of operation Code | Period of operation | Tick here | 01 | Less than a year | | 02 | Between 1 and 3 years | | 03 | Between 3 and 6 years | | 04 | Between 7-9 years | | 05 | 10 years and above | | ii) Economies of scale Code | Economic sector | Tick here | 01 | Micro-scale | | 02 | Small-scale | | 03 | Medium-scale | | 04 | Large-scale | |

iii) An average annual sales turnover for your business Code | Economic sector | Tick here | 01 | Below R500,000 | | 02 | R500,001 – R1000,000 | | 03 | R100 001 and above | |

C. What is the Level of Material Requirements Planning (MRP) concept uptake in manufacturing co-operatives
Key: 1) Strongly disagree, 2) Disagree, 3) Neither agree or disagree, 4) Agree,
5) Strongly agree Code | Economic sector | Tick here | | 1 | 2 | 3 | 4 | 5 | 01 | The business hosts a functional MRP-driven manufacturing strategy. | | | | | | 02 | The full benefits of an MRP-driven manufacturing strategy. | | | | | | 03 | The effectiveness of MRP frameworks. | | | | | | 04 | If the MRP strategy is developed for your business, will you adopt and implement it? | | | | | | D. What is your understanding of the integral role of an MRP framework in a manufacturing co-operative?
Key: 1) Strongly disagree, 2) Disagree, 3) Neither agree or disagree, 4) Agree,
5) Strongly agree Code | Role an MRP framework in a manufacturing cooperative | Tick here | 01 | Inventory reduction: MRP determines how many components are needed to meet the master schedule, | 1 | 2 | 3 | 4 | 5 | 02 | Reduction in production and delivery lead times: MRP identifies materials and components quantities required to meet delivery deadlines, | | | | | | 03 | Realistic commitments: realistic delivery of promises can enhance customer satisfaction. | | | | | | 04 | Increased efficiency: MRP provides close coordination among various work centres as products progress through them. | | | | | | 05 | MRP increases the co-operative’s sustainability index | | | | | | E. What are MRP related challenges facing manufacturing co-operatives in Polokwane Municipality?
Key: 1) Strongly disagree, 2) Disagree, 3) Neither agree or disagree, 4) Agree,
5) Strongly agree Code | MRP-related challenges | Tick here | 01 | Lack of knowledge of how the concept operates | 1 | 2 | 3 | 4 | 5 | 02 | Resistance to change by conservative directors and members of manufacturing co-operatives | | | | | | 03 | Lack of awareness campaigns to sensitise members of manufacturing co-operatives on the benefits of an MRP strategy | | | | | | 04 | No MRP tools and infrastructure within the co-operative | | | | | | 05 | Weak financial leverage to finance MRP related projects within manufacturing co-operatives | | | | | |

F. What gap-filling measures can be adopted to improve MRP effectiveness in manufacturing co-operatives?
Key: 1) Strongly disagree, 2) Disagree, 3) Neither agree or disagree, 4) Agree,
5) Strongly agree Code | Recommendations | Tick here | 01 | Intensify education and training programs to educate manufacturing co-operatives on MRP strategies | 1 | 2 | 3 | 4 | 5 | 02 | Roll-out a change management program | | | | | | 03 | Provide post implementation support to manufacturing co-operatives adopting MRP strategies | | | | | | 04 | Develop user-friendly MRP tools and systems | | | | | | 05 | Provide technical incentives to motivate more manufacturing co-operatives to adopt MRP into their manufacturing strategies | | | | | |

APPENDIX D: DRAFT CLARIFICATION MEETINGS SCHEDULE

Respondents | Dates | Time | Clarification meeting with manufacturing co-operatives in Seshego Township and Moletjie area | 4-8 June 2012 | 8:00 -4:30 pm | Clarification meeting with manufacturing co-operatives in Molepo, Mamabolo and Dikgale areas | 11-15 June 2012 | 8:00 – 4: 30pm | Clarification meeting with manufacturing co-operatives in the Central Business District | 18-22 June 2012 | 8:00 – 4:30 pm |