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The effect of the electricity crisis on operational performance metrics in manufacturing SMEs
Thesis   Open access

The effect of the electricity crisis on operational performance metrics in manufacturing SMEs

Ilias Caleb Emmanuel Kwei Quaye
MCom, University of Johannesburg
2025
Handle:
https://hdl.handle.net/10210/521358

Abstract

Electric power failures - South Africa Small business - South Africa Manufacturing industries - South Africa Production management - South Africa Industrial productivity - South Africa
This study explored the impact of inconsistent electricity supply on operational performance in industrial divisions within Roodepoort, Gauteng, focusing on efficiency, product quality, and employee productivity. In energy-dependent industries, electricity reliability is critical for sustaining production, yet frequent power outages pose significant operational, financial, and workforce challenges for small and medium-sized enterprises (SMEs). A qualitative, interpretive research approach was employed, using semi-structured interviews with twelve participants from sectors including beverage and food processing, packaging and plastics, and construction materials. Data were analysed through thematic analysis, identifying patterns related to operational performance, challenges, alternative energy solutions, efficiency, quality control, and employee productivity. The findings indicated that inconsistent electricity supply leads to significant production downtime, material wastage, equipment stress, and increased operational costs. Alternative energy solutions, such as diesel generators, UPS systems, and small-scale solar installations, provided only partial relief, leaving critical production processes vulnerable. Human resources were also affected, with employees experiencing frustration, decreased motivation, and extended working hours, although resilience and adaptability were observed. Product quality was compromised due to interrupted processes, requiring stricter inspection and maintenance procedures. The study concludes that electricity reliability is a key determinant of sustainable industrial performance. Recommendations for organizations include investing in robust alternative energy systems, aligning production planning with electricity availability, enhancing employee training, and implementing rigorous maintenance programs. Policy-level recommendations involve collaboration with electricity providers and incentives for energy resilience investments. Future research should examine quantitative financial...
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Quaye ICEK-Student Number - 218021785, Final Minor Dissertation (BMB9X07) Final Version1.49 MBDownloadView
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