School of Mechanical and Industrial Engineering

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Browsing School of Mechanical and Industrial Engineering by Author "Abdi, Angerasa"

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    Labor Productivity Measurement and Improvement: In Case of Ethiopian Medium and Large Footwear Industry
    (Addis Ababa University, 2018-10) Abdi, Angerasa; Ephrem, Gidey (PhD); Daniel, Ashagrie (Mr.) Co-Advisor
    The success factor for a manufacturing firm depends on awareness and management of its productivity level that results from measurement. This study focuses on labor productivity measurement and improvement using the Ethiopian Medium and Large Footwear Industry (EMLFI) as a case. The objectives of the study were to assess the existing labor productivity measurement system in EMLFI subsector; to study labor productivity levels and the productivity growth of the subsector; to investigate drivers that affect labor productivity; and to devise applicable labor productivity measurement and improvement approaches for the footwear industry. Both qualitative and quantitative data were collected using questionnaire, secondary data, observation and informal interviews. The data collected from secondary and primary sources were analyzed using tools such as SPSS, MS Excel, AMOS software and QI Macros 2018; as well as using techniques such as descriptive statistics, and correlation and regression analysis. The result of the measurement indicated that footwear companies’ average labor productivity had magnitude of 1.83, 1.98, 2.09, 2.15 and 2.19pairs/day/person from 2006EC to 2010EC respectively which showed small magnitude; and their respective average annual labor productivity index were 1.07, 1.09, 1.06 and 1.06 from 2007EC to 2010EC which also showed very slow improvement. These findings indicated that there are some problems related to labor productivity. Accordingly, 6 new steps to measure labor productivity are developed and a new labor productivity improvement model has also been devised. Therefore, footwear companies are recommended to practice the new measurement approach and apply the new labor productivity improvement model in order to continually improve their labor productivity.