Design of Productivity Improvement Method for Ethiopian Garment Industries (With Special Reference To Novastar Garment Plc)

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Addis Ababa University


Productivity is one of the major determinants that enable manufacturing organizations to compete in the global market. A nation's efforts to improve productivity must first begin with basic economic units namely, manufacturing and service organizations. The gains in productivity are one of the major weapons to achieve cost and quality advantages for competition. EGIs are not competitive in the global market. One of the main reasons is low productivity. The main objective of the study is to develop a method that supports productivity improvement of EGIs. To achieve this objective, a literature survey has been conducted to get empirical knowledge. The existing productivity measurement and improvement practices, and productivity factors1 of EGIs have been assessed using questionnaire and secondary data. In order to make the study practical and realistic, a case study has been conducted on Novastar Garment PLC. The result shows that the productivity of EGIs and the case company is low when it compared with the best practice. The partial and total productivity indicators of the case company show under target performance. Most of surrogate productivity and process indicators of the company show poor status. There are multidimensional productivity factors related to human, capital, material, method, control, process and product. To solve the problems associated with these productivity factors, sustainable and organized productivity improvement program is required. To improve the productivity, a method called PIM has been developed considering the existing situation of EGIs and the case company. The important characteristics which make the PIM preferable are compatibility with knowledge and skill of the user (i.e. easy to use); compatibility with existing tools and techniques; addressing the possible productivity factors; being continuous improvement tool based on Deming cycle (i.e. plan-do-check-act); having clearly defined productivity targets setting, measurement and analysis framework; and flexibility to apply from operation to firm level. The PIM has clearly defined user manual which makes it organized and sustainable productivity improvement program. For academicians and researchers, the PIM can be used as a guideline how to develop a method that supports productivity improvement of manufacturing firm.



Industrial Engineering Stream