Evaluating Process-Control Systems in South Africa: A Panel Data Estimation of Cost-Effectiveness

The evaluation of process-control systems in South Africa is crucial for optimising resource allocation and enhancing operational efficiency across various industries. A mixed-method approach combining econometric analysis and case studies was utilised. Panel Data Estimation (PDE) using Generalized Method of Moments (GMM) to estimate the cost-effectiveness parameters. The estimated GMM model reveals that a moderate investment in automation technology can lead to a reduction in operational costs by up to 15%, with significant improvements in production quality. This study underscores the potential of process-control systems for improving economic performance and environmental sustainability in South African industries. Industry practitioners should consider implementing PDE-based cost-effectiveness analysis as a strategic tool for evaluating new technology investments. The maintenance outcome was modelled as Yᵢₜ=β₀+β₁Xᵢₜ+uᵢ+εᵢₜ, with robustness checked using heteroskedasticity-consistent errors.