The Effect Of Lean Manufacturing Practice On Operational Performance Of Ethiopian Army Foundation Adama Garment Industry
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Date
2019-06
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Addis Ababa University
Abstract
Lean manufacturing concept is to create more value for customer by eliminating non-value adding
activities. Manufacturing firms operating in the presents’ rapidly changing and highly competitive
market have been pressured to improve all aspects of operational performance; quality and
customer response time and reduce cost of manufacturing. This research sought to examine the
effect of lean manufacturing practices on the operational performance of Ethiopian army Adama
garment industry. The study guided by three objective; To determine the extent to which Ethiopian
army Adama garment industry have adopted lean manufacturing practices, To establish the effect
of lean manufacturing practice on operational performance of Ethiopian army Adama garment
industry and finally the challenge faced by the industry when implementing lean manufacturing.
The study adapted a descriptive research design with the use of cross-sectional data. The target
population was 297 Ethiopian army Adama garment industry employees from different
departments, from this 121 respondents were used as sample. A questionnaire was used to collect
primary data. Out of the 121 research instruments distributed, 107 questionnaires were collected
and analyzed representing 88.4% response rate which was considered adequate. Data analysis
was done with the use of SPSS which produced descriptive statistics and regression models used
to present the results in tables and figures. The finding indicated that Ethiopian army Adama
garment industry not well practiced lean manufacturing. It was also clear that Ethiopian army
Adama garment industry had not seen an improvement in their operational performance. The
effect of lean manufacturing on operational performance of Ethiopian army Adama garment
industry was tasted against two operational performance metrics; product quality and on time
delivery. The outcome showed that lean manufacturing practices; Just in Time, Total quality
management, Total productive maintenance, and Human resource management are positively
related to operational performance. Moreover, lean manufacturing practices have been employed
to a small extent and have negatively affected operational performances to a large degree. The
study also established that the most challenge in adopting lean manufacturing was lack of proper
training/inadequate human resource development and the least was lack of resources. The study
recommended that the Ethiopian army Adama garment industry should concentrate on all aspects
of lean manufacturing practice to bring superior operational performance. Implementation
process of these strategies should be given top priority during formulation of organization policies.
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Keywords
Lean Manufacturing, Lean Practices, Operational Performanc