Evaluating Foundry Utilization Constraints and Their Impact on Competitiveness

The foundry under study is a critical revenue-generating asset for one of the operating divisions of South Africa’s largest railway company. However, its operational efficiency has deteriorated over time, leading to significant profit losses. The sustained decline in performance has resulted in a shortage of essential railway rolling stock components, posing risks to business continuity and potential job losses. This study aims to identify key constraints limiting the foundry’s utilization relative to its installed capacity and to recommend targeted interventions to enhance efficiency, profitability, and competitiveness. A mixed-methods research approach, integrating both quantitative and qualitative analyses, was employed to assess operational bottlenecks. Findings indicate that external controls, internal controls, and support services are primary constraints, adversely impacting turnaround times and escalating operating costs. The study’s insights contribute to existing research frameworks for diagnosing operational inefficiencies in manufacturing environments, particularly within state-owned enterprises. The validation of the theoretical model used in this research demonstrates its applicability and reliability in identifying and addressing production constraints in similar industrial settings.