Optimizing Production Waste and Enhancing Operational Efficiency through Integrated Lean Management and Reliability Analysis: A Case Study of National Tobacco Enterprise
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Date
2025-10
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Addis Ababa University
Abstract
Global manufacturing consistently grapples with significant production waste and operational inefficiencies, detrimentally affecting profitability, competitiveness, and sustainability. This thesis, from an industrial engineering standpoint, critically examines these pervasive challenges within the National Tobacco Enterprise (NTE), focusing specifically on its Make-Pack department. Quantitative analysis of 30-month operational data revealed chronic underperformance: cigarette reject rates averaged 5.02% (exceeding a 3% target), Non-Tobacco Material (NTM) waste reached 3.38% (above a 1% target), and Overall Equipment Effectiveness (OEE) consistently fell below target at 35.86%. These metrics underscore a critical need for integrated improvement strategies, as isolated Lean Management or Reliability-Centered Maintenance (RCM) interventions have proven insufficient. To address this, a comprehensive mixed-methods research approach was employed. This involved rigorous statistical analysis of production KPIs, Value Stream Mapping (VSM) to identify process bottlenecks, and in-depth equipment reliability assessments using Failure Mode and Effects Analysis (FMEA) and Root Cause Analysis (RCA). Qualitative data from interviews further contextualized findings, revealing reactive maintenance cultures and skill gaps. A key finding established a quantifiable link: equipment unreliability, reflected in low OEE, accounted for 50.8% of reject rate variability and 78.1% of NTM yield variability. Root causes spanned inadequate preventive maintenance, sensor control deficiencies, and insufficient operator training. This study proposes and empirically validates an integrated Lean-RCM framework, offering a synergistic solution for sustainable waste optimization and enhanced operational efficiency within complex manufacturing environments like NTE, setting a benchmark for the industry.
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Lean Management, Reliability, Overall Equipment Effectiveness, Waste Reduction, Production Efficiency, Failure Mode and Effects Analysis, Value Stream Mapping, Tobacco Industry