ABSTRACT
This chapter examines the impact of work study on physical capital in relation to the productivity of manufacturing small and medium-sized enterprises (SMEs). The work study techniques used to measure physical capital factors for the productivity performance of manufacturing SMEs are method study and work measurement, respectively. Method study uses subtechniques such as preliminary surveys, brainstorming, method study process charts and time scales, flow diagrams, filming techniques, value stream mapping, and cause-and-effect diagrams. Work measurements utilizes preliminary surveys, brainstorming, and benchmarking, as does method study, but differs because it involves techniques such as time study, work or activity sampling, predetermined motion time systems, analytical estimating, comparative estimating and synthesis, and value stream mapping and statistical process control.
The physical capital factors measured involved human resources, material, machinery, location, environment, and finance as exercised in manufacturing. When work study is applied to physical capital factors implemented in the manufacturing process, that is, influenced by the management’s manufacturing capabilities along with adding-value activities, the productivity of manufacturing SMEs will continue to improve. Finally, the chapter concludes by focusing on the physical capital challenges facing the productivity of companies located in Gauteng, South Africa.
