Industrial Engineering

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Marketing Decision Support System (Mdss) Case Studies on Aspsc & Mobil Oil East Africa Limited
(Addis Ababa University, 2004-06) Abebe, Abiy; Kitaw, Daniel (PhD))
Many marketing decisions are made in complex environments where numerous variables are affecting the decision outcomes. Faced with these difficulties, marketing executives seek decision aid tools like Marketing Decision Support System (MDSS). It is a tool to utilize relevant information from business environment and return it in to basis for making actions. Most of the international enterprises use this MDSS to improve the effectiveness of their decision making process. However, several of the domestic companies shy away from the use of decision support tools. The good examples of such companies are: Akaki Spare Parts and Hand Tools S. Co. and Mobil Oil East Africa Limited. The main intention of this thesis is to prepare tools that assist these two companies’ marketing decision makers in carrying out their tasks. To be successful, the companies’ current working systems are analyzed in detail with reference to the surveyed literatures. Then, selected decision problems are formulated using appropriate modeling techniques. Finally, computer programs that match with the diagnosed situations have developed by using visual basic computer programming language and its database by access computer programming language. The proposed MDSS works for four decision types, two from ASPSC and two from Mobil. It can be further implemented to other decision types with slight modifications.
Model Development for Improving the Performance of Projects A Case Study on Ethiopian Roads Authority(Era)
(Addis Ababa University, 2004-06) Talargie, Abrham; Kitaw, Daniel (PhD))
Thermal Stresses and Creep Analysis of Boiler Tubes
(Addis Ababa University, 2004-09) Taye, Chanyalew; Bazezew, Alem (PhD)
An analysis is developed for the calculation of creep deformation of an axisymmetric boiler tube subjected to axisymmetric load. The stresses and the permanent strains at a particular time and at the steady state condition, resulting from loading of the tube under constant internal pressure and elevated temperature were evaluated when accounts is taken to the secondary creep characteristics of a given material. In this thesis first the formulation of an analytical theory of creep for tubes according to the Bailey creep theory [41] was discussed. Bailey theory was proposed for an idealized homogeneous material loaded uniaxially. The theory takes into account the initial elastic strain, the transient creep strain, and the minimum creep rate strain. Next, more general solution by finite element method are presented and discussed for a class of problems in which no prior analytical solution may exists; like the cases of cracked and/or pitted boiler tubes. The method of solution is an extension of the direct stiffness method. The body is replaced by a system of discrete triangular cross-section ring elements interconnected along circumferential nodal circles. The equations of equilibrium for the body are derived from the principle of minimum potential energy. The creep behavior of the body is formulated in terms of creep laws in current use. Starting with the elastic solution of the problem, creep strains are treated as initial strains to determine the new stress distributions at the end of time interval. The procedure is repeated until either the final time is reached or until the stress distribution is not changed i.e. when a steady stated condition is reached. Calculated results according to arbitrarily selected boiler tube data are shown at the end.
Quality Management System in Ethiopian Food Procssing Industries A Case Study at D.H. Geda P.L.C. & Elfora Agro-Industries
(Addis Ababa University, 2004-11) Tsegaye, Ezra; Kitaw, Daniel (PhD))
Like most industries in Ethiopia, the food processing industries are suffering from quality related problems. These problems include poor performance of products in the export market, low quality and insufficient raw material supply, low product confidence due to lack of quality assurance systems and increased pressure from high quality and competitive products in the local market. The proposed solution is to implement a properly developed Quality Management System (QMS) in the industry. Based on the assessment of two cases in the food processing industries (D.H.GEDA & ELFORA Agro-Industries) and other information, seven main components and three minor elements have been identified for this QMS. The first deals with the role of managers and owners, which includes leadership, decision-making and organization related to quality. Quality issues related to raw material and inputs are addressed in the supplier-relationship. Quality design is where customer based products are developed. Quality improvement is the general approach that must be adopted to improve processes and product. Quality control activities are carried out to minimize defect during processing. Quality assurance deals with meeting internationally recognized system to assure product/process quality. To improve the QMS quality review and audits are used. Although they are partially discussed in the main components, elements such as quality manuals, cost of quality, and customers need more focus. This QMS can alleviate a considerable proportion of problems in the industry. As the food processing industry dominates the manufacturing industry, such exertion will have tremendous impact on the overall performance of the economy.
Analyzing Industrial Development, Market Performance, and Competitiveness Case Study on Awash Melkassa Aluminium Sulfate and Sulferic Acid Share Compnay
(Addis Ababa University, 2006-05) Tamerat, Daniel; Gebeyehu, Gashaw (Mr)
The purpose of this thesis is to analysis industrial development relative to the importance of Awash Melkassa Aluminum Sulfate Sulfuric Acid Share Company product to different sub-sector in Ethiopia. It is evaluated integrated development of AMASSASC products like aluminum sulfate and sulfuric acid to other industries, and it is seen the contribution of the company product with other sub-sectors and analysis contribution to the development of industries. AMASSASC market performance and competitiveness is evaluated by considering internal and external factors that affected its market and competitiveness. Some of the factors included on this thesis that affected the company market performance and competitiveness are analyzed based on the current economical, political, social and technological factors. In order to evaluate its market performance and competitiveness of AMASSASC different analytical tools are used, some of them are: PEST analysis, SWOT analysis, cause and effect diagram, Pareto analysis and cost analysis are used. By using PEST analysis the market performance it evaluated by considering the current political, economical, social and technological conditions of the country. Using SWOT analysis the competitiveness of the company is seen based on the strength, weakness, opportunities and threats the company has and faced, and in this thesis it is looked mainly its weakness opportunities and weakness threats. It is also described in the cause and effect diagram the possible causes why the company is not competitive, and by using Parato analysis it is described the vital few and trivial many problems that make the company not competitive. xii The results of the study indicate that the company has low demand in the country, high idle time expense, and has high production costs. The main consumer of the product of aluminum sulfate is A/AWSA should be given much consideration by providing the pre-requisite product hydrated lime, this could be achieved by working in coordination with product of hydrated lime.It is observed that the successful development of the sub-sectors plays a main role for AMASSASC to product at full capacity. It is therefore must focus on strategy in promoting the product and look for market distributing channel, and study the domestic and neighboring country demand and buying price.
Model Development of Supply Chain Management System For the Ethiopian Soft Drinks Industries-A Case Study On MOHA Soft Drinks Industry Share Company
(Addis Ababa University, 2006-06) Gebreeyesus, Aregawi; Dlemu, Demiss (PhD)
Because of the inherent complexity of decision making in supply chains, there is a growing need for modeling supply chain system with different methodologies. A large number of manufacturing like soft drinks industry and service organizations are therefore seeking modeling systems that can help, identify and implement strategies for designing and improving their supply chain networks. Developing a supply chain management system requires the analysis of the flow of materials from the initial sourcing to the final end customers. Increased recognition is being placed, both in industry and in academia, on effective supply chain management. The term supply chain management (SCM) presupposes that there exists a supply chain to be managed. SCM has become a universal approach to cost effectiveness, timely delivery and the creation of growth oriented exchange system in goods and services. With a focus on SCM in which cost, inventory and time are the key challenges, this thesis develops a model to aid the improvement of performance of supply chain system. The model is developed based on existing SCM knowledge (Initiated or adopted from literature review and pervious research works of Vikas Chandra (India-IIT, 1999)[30] and Ato Abreham Debebe (Ethiopia-AAU, 2004)[29], result of the circulated questionnaires and, interviewed questionnaires, and the results of an assessment or observations of supply chain management in Ethiopian soft drinks industries. In order to make the research practical and realistic, an actual case study was conducted on an existing soft drinks company in Ethiopia, MOHA Soft Drinks Industry Share Company. The Nefas Silk Pepsi Plant current performances were compared with the supply chain model developed and some areas of improvements were identified such as distributions system, to minimize the cost of distribution channel, the researcher proposed direct sales using Telephone and Electronic channel to facilitate this, data base is designed for both (MOHA Soft Drinks Industry S.C. and East Africa Bottling S.C.) Ethiopian Soft Drinks Companies. Besides, the supply chain cost analysis saves Birr 2,171,780.17 (2.62 %) than the existing cost analysis. Keywords: Supply Chain Management System, Supply Chain Cost Analysis, Supply System (direct, indirect and packing materials), Manufacturing System, Distribution System (Depots, Kiosk, Door to Door, Plant sales & sales agent), Modeling, and Material Flow System. ix
Improvement of Operational Productivity of Maintenance and Engineering Activities Through The Use of Total Quality Management -A Case Study on Ethiopian Airlines
(Addis Ababa University, 2006-12) Assamenew, Behailu; Chandra, D.G.L (Professer)
Total Quality Management (TQM) has become a frequently used term in the discussions regarding quality. The international and national competitive environment is in a process of constant change by the globalization of markets and increased interdependence of economic agents. This process of change has brought increased demands on the organizations’ competitiveness and the customers have gained a central role in the organizations’ focus. TQM is considered to be an important management philosophy, which supports the organizations in their efforts to maintain satisfied customers. The aviation industry is the most safety requiring industry where a single malfunction or fault may lead to the fatal and catastrophic accident of life and property. Organizations engaged in this industry should constantly monitor all tasks in order to assure the safety of flight and to stay as a working unit in the competitive market and serve their customers. This will come true when existing employees in these organizations are trained to acquire all the demands placed on this technology and when they are satisfied with the environment in the organizations to develop the sense of belongingness and inspiration so as to satisfy and exceed their customers’ needs and aspirations. In the aviation industry, operators need to be licensed by regulatory bodies to exist in the industry. However, the major focus of these regulatory bodies is conformance to requirements instead of system wise quality management. Hence a need has come for the airlines to establish total quality achievement to be better competitors in the industry. This thesis focuses on the improvement of operational productivity of aircraft maintenance and engineering activities in Ethiopian Airlines through the use of TQM. A thorough investigation of TQM implementation is conducted in the maintenance and engineering division of the airline by assessing the accomplishment of the existing quality related activities in relation to TQM philosophies. The results obtained by studying the implementation of TQM in this division indicate that still a lot of effort is required to achieve productivity improvement through TQM. The existing “TQM” department in this division is actually performing quality assurance activities. This is more elaborated in this study and a model TQM implementation is suggested later to actually obtain the benefits of TQM implementation.
Model Development of Supply Chain Management System: A Case Study on Mesfin Industrial Engineering Plc
(Addis Ababa University, 2007-06) Berhane, Mesfin; Chandra, Subhash (PhD)
Supply chain is the interconnected set of linkages between suppliers of materials and services that spans the transformation of raw materials into products and services and delivers them to a firm’s customers. Supply chain is highly recognized in developed countries for it is estimated to consume 10% of their Gross National Product (GNP). It is therefore projected to be of a greater proportion in the developing countries like Ethiopia, where a large amount of capital is tied up in inventories and in transportation systems for moving materials. Thus, a supply chain must be managed by controlling inventories. Developing a supply chain management system (SCMS) requires the analysis of the flow of materials from the initial sourcing to the final end customers. SCM has become a universal approach to cost effectiveness, timely delivery and the creation of growth oriented exchange system in goods and services. Accordingly, different researchers have made supply chain management studies in different Ethiopian process industries and have developed models capable of solving supply chain associated problems if implemented properly. And this thesis is done with the purpose of assessing the existing supply chain environment in one of the Ethiopian discrete manufacturing industries, the Mesfin Industrial Engineering PLC (MIE), and solving the associated problems. Mesfin Industrial Engineering (MIE), being one of the Endowment Fund for the Rehabilitation of Tigrai (EFFORT) companies, is a privately owned company located at the northern part of Ethiopia, in the Tigrai provincial capital, Mekelle. MIE, is the leading equipment manufacturing and industrial engineering company in East Africa. It designs and installs equipments & components for the energy, mining, manufacturing, construction, transportation, and agricultural sectors. Because of the inherent complexity of decision making in supply chains, there is a growing need for modeling supply chain system with different methodologies. With a focus on SCM in which cost, inventory and time are the key challenges, this thesis develops a model to aid the improvement of performance of the supply chain of MIE. The model is developed based on existing SCM knowledge (Initiated or adopted from literature review and pervious research works of Vikas Chandra (India-IIT, 1999)[30], viii Ato Abreham Debebe (Ethiopia-AAU, 2004)[8], and others recently done on similar area and as result of the circulated questionnaires, interviews made, and the results of an assessment or observations of supply chain management in the Mesfin Industrial Engineering PLC. While the case study was conducted, MIE’s awareness of SCMS, existing measurement of costs, all the inputs from the supply side, the production process and the out puts were assessed. Consequently, a supply chain model is developed with modifications on the existing model in such a way that non-value adding activities are avoided to reduce the supply chain cost. Thus, based on the new model, supply chain cost analysis is done and when compared to the traditional accounting system cost analysis there is a reduction (saving) of about Birr 1,235,743.80 (1.06%) in the annual production cost when supply chain cost analysis is used. Finally, the researcher has made conclusions of the study and put recommendations to the industry, MIE, on how to use the concept of SCMS for creating satisfied customer and enhancing its profit margin. Keywords: Supply Chain Management System (SCMS), Supply Chain Cost Analysis, Supply System (direct and indirect materials), Manufacturing System, Distribution System (Dealer & Branch Warehouse), Modeling, and Material Flow System.
Mult i- cr iter ia Per formance Measurement Model Development for Ethiopian Manufactur ing Enterpr ises
(Addis Ababa University, 2007-06) Moges, Fentahun; Kitaw, Daniel (PhD))
To be competent as a world-class manufacturer, manufacturing organizations need to have a number of critical ingredients: one such ingredient is that of an appropriate performance measurement system. Measurement systems incorporating financial and non-financial measures have been a topic of considerable interest to both business practitioners and academics for most of the 1990s. The main focus of this research thesis is to formulate a multi-criteria performance measurement model that comprises critical both tangible & intangible measures. This research paper reviews worldwide researches that address the correlation between applying appropriate performance measures, and their impacts on strategic performance outcomes. The research has been conducted in a sample of 28 Ethiopian manufacturing enterprises. The vital financial results of these surveyed companies are compared to the international industry benchmarks. The extent of utilization of financial & non-financial measures in strategic planning and organizational performance evaluation is also studied. The results from this research study assure that one of the major constraints for performance degradation in selected companies is the lack of proper performance measurement systems and strategies. The negative impact of traditional performance measures and operation strategies on improvement of business results is clearly determined. Depending upon the research findings, a MCPM model with its implementation steps is recommended as a solution using the need assessments from participant enterprises.
Productivity Improvement of Ethiopian Shoe Manufaturing Industries (A Case Study in ok Jamaica Shoe Factory)
(Addis Ababa University, 2007-07) Tessema, Boresa; Kitaw, Daniel (PhD))
The objective of this thesis is to improve the productivity of Ethiopian foot wear industries by giving specific emphasis to OK Jamaica shoe factory. The study focuses on proper human resource management and material resource management. Method study is also used to achieve at a good productivity of the factory. Detail and different types of data were collected through review of the available documents, physical observation and discussion with some concerned people. The data was again purified to increase its reliability and then analyzed to identify the barriers for productivity. Finally, it is identified that the factory is characterized by low productivity due to traditional way of doing jobs, inadequate human resource management, and improper material resource management. Also congestion of employees as well as raw material & finished goods ware house is observed as one of the basic problems. The identified problems were further studied and different techniques were used to come up to out put of the thesis.
Study on Establishment of Bamboo Processing Plants in Amhara Regional State
(Addis Ababa University, 2008-06) Haile, Bereket; Kitaw, Daniel (PhD))
Bamboo is an ancient woody grass widely distributed in tropical, subtropical and mild temperate zones. There are about 1 200 species of bamboo in some 90 genera, of which two species namely highland and lowland bamboo are indigenous to Africa and widely distributed in Ethiopia. Ethiopia has more than 1 million hectares of bamboo which is 67% of African total. But compared to other bamboo growing countries Ethiopia is not getting equivalent economic advantage from the resource. Therefore, the aim of this paper is to show the benefit from the resource by developing the development and utilization model of bamboo and studying the establishment of processing plants for some selected products in Amhara regional state. These two Ethiopian bamboo species are found in Amhara region. But like any other regions the resource is not used as an input to processing plants that produce industrial and construction products. Some bamboo growing areas of the region are visited; data collected and the resource growing areas by zones and weredas are mapped. Domestic wood demand and supply is analyzed which shows huge gap between the demand and the available supply - demand by far exceeding suply. There is also increasing demand for bamboo and bamboo products in world market. General Model is developed to show the required integration between different parties to facilitate the development and utilization of the resource in Amhara region from cultivation to end market. In addition, cultivation, micro and small scale, and medium and large scale business models are developed with their corresponding components. Three products – bamboo flooring, bamboo mat and bamboo incense stick are selected for analysis for their technical and commercial viability. Required facilities are determined, project implementation plan is scheduled, and layout is developed for these three manufacturing lines. Finally detailed economic evaluation is made and shows - with the initial investment of Br. 41 million, the expected return will be Br. 94 million annually, with a payback period of less than a year. Projecting this result to national level, the country can get more than Br. 10 billion every year from the existing resource coverage. This figure could well be much higher if the cultivation and development efforts are made. The project is very attractive for investment and will help to improve the development and utilization of the resource. In addition the area of coverage and productivity of the resource should be improved, so that the country will entertain the maximum benefit out of this new sector.
Effective use of Group Technology Based Coding and Classification System to a Case Company, Basic Metal Industry
(Addis Ababa University, 2009-08) Ashenafi, Zeleke; Tafese, Gebresenbet (PhD); Temesgen, Garoma (Mr.) Co--Advisor
As the data collected shows, the major problems of the Metal Products Development Center are delay in delivery date, high product price, and low product quality (i.e., variation from the specification). To address these problems the researcher uses an approach of identifying the root causes of these problems and then finding out acceptable solutions and propose it in a form that can earn for the case company. To make this analysis the researcher collected all the relevant data from marketing, designing, and production departments. Then, the root causes are identified with the help of cause and effect method and looked for GT based solution to address these problems. The result of the cause problems identification shows, the major causes are: unnecessary material handling because of the existing machines arrangements, the existed traditional design data storage method that does not let for design retrieval, treating each part separately rather than in family form, cost estimation that is doing based on unreliable data, and the absence and difficulty of production scheduling. Thus, to be competent through solving the existed problems, the company needs to adopt and implement the modern manufacturing philosophy; and thus, the researcher proposed group technology as a solution. It includes the development of CCS that could encompass both rotational and non-rotational parts and formation of machine cells. It mainly aimed for the possibility of design retrieval and for further analysis of parts in order to use the similarity advantages among parts both in design and manufacturing attributes. And formation of machine cells in the production area, so that it can address in the reduction of non value added operations available in the company. It reduces material handling, setup time, and ease scheduling job. The result of the proposed solutions shows a positive and considerable impact to the productivity of the company. It saves the cost of production by 19.1 percent with providing modern manufacturing methods in the designing and production area.
Alleviating Scheduling Problems in Anbessa City Bus Service Enterprise
(Addis Ababa University, 2009-09) Hailu, Gemechu; Tafesse, Gebresenbet (PhD)
The transport sector is a key element for the development of a country. Almost every item or human being participating in the national economy needs to be transported from one location to another. Thus a problem in the transport sector implies impediment of the development of the socio-economic status of the country. It has become very common that globally emphasis is given to the transport sector. Hence, the modes of transport are diverse, efficient and effective in many countries. City Trains, city Buses, Midi Buses, Taxies, Express Cabs are among the transport means that facilitate city transport services. However, the existences of all these modes of transport dose not guarantee satisfactory transport service. The modes of transport shall address the customers by making themselves available at the time and place they are required. To keep the time and place of destination and departure of means of transport different measures are taken by different countries. Among these are; using different bus lanes on streets, and making appropriate scheduling and time tabling of the different modes of transport. However, the case in our country, specifically, the capital city Addis Ababa, is different in that there is no city train service, the road ways are narrow and not well maintained, they are also un proportional to the number of vehicles available in the city, there is no bus lane, etc. Moreover, the city bus service is the only public transport having a specific route of travel and governed by governmental development agency. The private transport sector is not controlled under a specified route and gives service based on the best advantage of the owner rather than the public. Consequently, the public is suffering from shortage of transport to make its daily activities. These factors have aggravated the problem of city transport in Addis Ababa. The main objective of this thesis is to alleviate the problems of city transport described above through improving the scheduling system of Anbessa City Bus Service Enterprise. The paper gives emphasis on the way that the public gets the required transport service on the time and place which the customer specifies and on the continuity or dependability of the schedule insuring this service. This is done by identifying the core problem of the public transport in relation to the city bus service through delay data collection, questionnaire distributed and interviews conducted to the customers. Finally, appropriate method of data collections and trip time determination for making schedules, timely updating of the existing data for keeping the schedule dependable, consideration of all route disruption factors for sustainability of the feasibility of schedules are recommended. The result of the study can improve the service delivered by the enterprise and shift the customers who are dissatisfied by the private transport sector to Anbessa buses increasing the market share of the enterprise in the city transport service. It will also improve the mobility of resources which is a key factor for improving the socioeconomic status of the city.
Computer Aided Layout Planning for Manufacturing Industries of Ethiopia (Case in Kotebe Metal Tools Factory)
(Addis Ababa University, 2009-12) Ameha, Mulugeta; Daniel, Kitaw (PhD); Birhanu, Beshah (Mr.)
Layout planning has been considered as one of the vital areas for improving performance of any business process. Its main concern is reducing cost by maximizing adjacency of high interaction components of a system or reducing material handling cost or distance between the components. Taking KMTF’s layout as a case, this study considered three approaches of layout design. The first approach utilized the improvement of the existing layout. Section wise exchange and machine wise exchanges are made to the current layout to arrive at a better layout than the currently being used layout. Making the exchange section wise and then using the machine arrangement obtained by this method to be further improved by machine wise exchange is observed to give better layout than improving the current machine arrangements. The exchange has been made according to CRAFT improvement routine. The second approach has been done to construct a new layout for KTMF sections using CORELAP construction routine and then improving the constructed layout using CRAFT improvement routine. But the current layout is observed to be better starting point for improvement using improvement routine than the constructed layout. This shows the current layout is good but can further be improved by using improvement routines. To show the applicability of the approach another study published by Yugoslav Journal of Operations Research has been explained. This approach is suggested to be used in planning a new layout. The third approach introduced is the roll forging machine into the improved layout. The approach assumes the Roll forging machine is used by four products and the dies for the four products are brought together with the machine. Accordingly location of the new Roll forging machine has been obtained using single facility layout problem. Finally, it is concluded that the current layout is a good initial layout for improvement using CRAFT algorithm and a better layout is achieved by improving the current layout. Furthermore, construction routine followed by improvement routine is concluded to be good means of arriving at good layout in initial design of layouts. The improved layout and Roll forging are recommended for KMTF shop floor.
The Role of Benchmarking for Decision Making to Ethiopian Manufacturing Industry
(Addis Ababa University, 2010-11) Ermiyas, Abate; Daniel, Kitaw (Prof.)
Today Benchmarking is one of the most important improvement tools the leading organizations have been using, to reach world-class levels of performance. The Ethiopian leather and leather product industries are not as efficient as it could be therefore, this research work makes an assessment on benchmarking related problems in Ethiopian LLPMI in order to develop an applicable Benchmarking model so that the over all performance of the sector can be improved and also this research work aimed at finding best practice work to improve the competitiveness and business Excellency of our leather products and to indicate that if benchmarking is properly practiced and implemented in the sectors, it is a weapon for decision making on the way to competitiveness and business excellence. Some benchmarking process models of more recognized companies were surveyed on how leading companies in other world are performing benchmarking processes with their partners. To undertake this research, a sample size of 25 ELLPMI was taken. Primary and secondary data were collected and analysed to identify the level of understanding and implementation of benchmarking process and their current status in terms of competitiveness in the local and international market and their effort in using process improvement tools for better achievement using a well structured questionnaire, interviews, personal observations and review of previous research works. As well gap analysis with 14 parameters and 185 activities of selected shoe industries of Ethiopia (Tikur Abay Shoe S.co) with best in practice is performed. The findings from this research work reveal that benchmarking process is not being used by ELLPI for decision making on the way to competitiveness and business Excellency as well for performance improvements and even the basic concept is not well understood. The other finding from gap analysis indicates in all of the parameters more than 50% of the companies activity have gap when compared with the best practice and some activities of the best practice are not known in the company. These indicates that our industries are enjoying false sense of accomplishment from short term profitability and so they need to stick their neck further out of the box, and seem to be able to learn some thing new each time they look. Based on research findings, Generic Benchmarking Process Model with five phases and twenty two possible steps has been developed and recommended as a solution to start benchmarking and to see its role for decision making on the way to competitiveness and business Excellency.
Investigation of Factors Affecting The Productivity of Ethiopian Manufacturing Firms
(Addis Ababa University, 2010-11) Jelalu, Mifta; Daniel, Kitaw (PhD); Amare, Matebu (Mr.)
Fierce and ever increasing global competition has made the business organizations and policy makers turn their attention to such critical issues as productivity and quality. Productivity improvement should be a concern of every industry regardless of the type of production, economic or political system since there is no human activity that does not benefit from improved productivity. The common definition of productivity, the ratio of output value to input value, remains the same for every sector. Productivity can either be improved through increasing the output value by increasing the quality or quantity of products, or through decreasing the input value by utilizing the resources effectively & efficiently. The success of a productivity improvement program mainly depends on systematic identification and analysis of all the factors that affect productivity of the manufacturing systems. This study investigates the factors that affect the productivity of Ethiopian manufacturing firms. Thus, the purpose of this paper is to find out productivity related problems with regard to both internal and external productivity factors; identify the root causes for the troubles; and propose suitable solutions for improvement.
An Integration of BPR and TQM Implementation Model
(Addis Ababa University, 2010-11) Haftom, Kahsay; Daniel, Kitaw (PhD); Birhanu, Beshah (Mr.)
Ethiopian public as well as private organizations have undertaking organizational transformation to increase the effectiveness and efficiency of their performance. BPR was selected by the Government in order to improve the performance of service delivery to citizen. On the other hand, some private organizations including service and manufacturing industries are implementing QMS – ISO 9000 as performance improvement. The objective of this thesis is to identify implementation problems and impacts on organizational performance on BPR and QMS – ISO 9000 in order to develop an integrated model for combining BPR and TQM as a management strategy and to explore the advantage of such integration. To achieve this objective, 31 organizations that are found around Addis Ababa are surveyed to analyze implementation of BPR, QMS and organizations implementing both BPR and QMS at different times, to extract their implementation problems and impacts. The finding includes: public institutions implemented their redesigned processes which are not supported by performance measures, new salary scale, new rules and regulation; great time variation (average 2 years) between actual versus planned time for implementation, fail to integrate with continuous improvement, Inadequate IT infrastructure, are some finding are with BPR implementation. On the other hand, lack of internalizing the benefits of ISO 9000, top management commitment, fails to bring break through improvement are some of the findings of ISO 9000 implementation. Further more, common implementation problems are: lack of strategic alignment, lack of recognition and reward system, lack of practical experienced consultants. Positive and negative impacts of BPR and ISO 9000 are also analyzed in this thesis. Based on the above findings, a model is developed which integrates BPR and TQM, at which it enhance their positive impacts and minimizes their negative impacts. At last but not least, implementation plan for the developed model is developed.
Diagnosis and Modeling of Productivity Improvement in Manufacturing Industries
(Addis Ababa University, 2010-12) Dessie, Takele; Daniel, Kitaw (PhD)
The intent of this empirical research is to identify the critical factors that are potentially fatal to productivity improvement in Ethiopian textile industries and to analyze these factors. The Ethiopia government is now adopting policy measures that support productivity of the textile sector. But there is strong competition on the international market for textile and garment products, which are an important part of world trade. This was the imperative stand to carry out this study. The aim of the research is enhancing the productivity of textile sector after analyzing the productivity affecting factors. These study focuses on some selected textile companies in Addis Ababa and Oromia region which are representatives of the textile sector found in the country and based on the study productivity affecting factors were identified. According to the respondents the major problems are shortage of raw material, low labor productivity, absence of strong maintenance policy, low capacity utilization etc. And based on this a productivity improvement model which comprises technology based technique, material based technique, employee based technique and product based technique were developed. At the end of this study conclusion and recommendations are made on the basis of the problems faced in textile sectors.
Productivity Improvement through Work Study The Case of Peacock Shoe Factory
(Addis Ababa University, 2011-09) Sisay, Addis; Daniel, Kitaw (PhD)
As global competition become tightens every day, there is an urgent need for manufacturing operations to continually striving to increase productivity and output of their operations. Productivity improvement should be a concern of every industry regardless of the type of production, economic or political system. Productivity can either be improved through increasing the output value by increasing the quality or quantity of products, or through decreasing the input value by utilizing the resources effectively & efficiently. Well-organized use of available resources is one way of improving the productivity through capital resources of the company. The productivity improvement has a great significance for Ethiopia footwear industries. In this country there are limited resources which should be used to get the maximum output i.e., there should be attempts to perform a job by cheaper, safer and quicker ways. The aim should be optimum utilization of resources, so as to provide maximum satisfaction. The paper has examined how proper utilization of available resource improves the productivity of footwear industries that is demonstrated by taking peacock shoe factory as a case study. Footwear industry, as it is one of the potential economic sectors, it should be given proper attention for sustainable development of the country. Thus, the purpose of this paper is to find out improvement areas in resource utilization activities that are considered as an immense factor for performing under. The productivity improvement in footwear industry can be approached by different methods. On this thesis productivity improvement through work study are done, because footwear garment work is labor-intensive and largely depends on the skills and sensibility of the operator. The productivity of a factory is adversely affected by the advantage of the operators. The topic of this master thesis originates from the practical problem that the company faced; the main intention of the thesis to show how productivity improvement can be achieved by analyzing operation, process, time study, process organization (line balancing) and lay out. Through balancing the production line, the line efficiency of peacock shoe factory can be improved from 44% to 81%. Finally by analyzing the results obtained framework for implementation had formulated.
Supply Chain Quality Management to Improve Organizational Performance for Manufacturing Industries
(Addis Ababa University, 2011-09) Mehari Beyene, Beyene; Daniel, Kitaw (PhD)
As competition moves beyond a single firm into the supply chain, researchers are beginning to explore quality management (QM) in a supply chain context. The literature suggests that supply chain management (SCM) consists of internal practices, which are contained within a firm, and external practices, which cross organizational boundaries integrating a firm with its customers and suppliers. This research assess the current practice of supply chain quality management in Ethiopian manufacturing industries using questionnaire survey, guided interview and author’s direct observation. The investigation showed that some companies have begun the concept of SCM & QM practices independently, but most of them are doing in traditional manner. Among 54 respondent companies for the survey only 27.8% defined SCQM on the context of their company, this shows manufacturing industries are poorly practicing QM along their SC. The major problems identified in the manufacturing firms include: under capacity production, lagging to fill market demand, lack of quality raw material supplier, absence of long-term relation with supplier/customers, occurrence of bottle neck partner along the SC, usage of total cost as the only performance measurement system and did not give due consideration for employee satisfaction, product quality, on time delivery and customer satisfaction. Further, the study tried to investigate how supply chain management-related quality practices lead to improved organizational performance and examined the practices that precede and mediate those relationships. After assessing current level of practice, general supply chain quality management model for Ethiopian manufacturing firms is proposed. Finally, to make this research practical and realistic, actual case study was conducted on Faffa Foods Sc. The current system was analyzed and areas for improvement are identified. The improvement areas include: supply system, to save cost of materials rejected due to low quality i.e. suppliers cost 44,265.32Birr for transportation as well as companies incur labour cost, equipment cost and time for checking impurities, and distribution system, to minimize customer complain due to delay. Then the general SCQM model was customized for the case company’s supply chain and it decomposes into sub sections. At the last, conclusion, recommendation and future works are provided.

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