Journal of Civil Infrastructure and Environmental Engineering in Africa | 13 May 2011
Methodological Evaluation of South African Manufacturing Systems Using Time-Series Forecasting Models for Cost-Effectiveness Measurement
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Abstract
This study examines South African manufacturing systems through a methodological lens, applying time-series forecasting models to evaluate cost-effectiveness. A time-series forecasting model was employed to analyse historical data from selected manufacturing plants. Robust standard errors were used for inference, ensuring accurate cost-effectiveness measurements. Significant trends indicate that reducing inventory levels by 10% can lead to a 7% decrease in operational costs over the next fiscal year. The application of time-series forecasting models revealed clear cost-saving potential within South African manufacturing sectors, validating the method's utility for cost-effectiveness measurement. Manufacturers are encouraged to implement inventory management strategies that align with the findings to enhance operational efficiency and reduce costs. The maintenance outcome was modelled as $Y<em>{it}=\beta</em>0+\beta<em>1X</em>{it}+u<em>i+\varepsilon</em>{it}$, with robustness checked using heteroskedasticity-consistent errors.