Performance Measurement and Improvement System in Meat Processing Industries (With Special Reference to Addis Ababa Abattoirs Enterprise)
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Date
2016-02
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Addis Ababa University
Abstract
In this research, performance measurement was identified as a problem for many meat
processing industries. even if, Ethiopia is 10th largest livestock and massive availability of
animals in local market. But still the sector is not competitive at all. Performance measures are
the lifeblood of organizations, without them no decision can be made, it is the first step to
improve and control the company's business performance.
Government of Ethiopia is promoting meat processing and leather industries as one of the
priority area in GTP Two plan and the sector has a huge potential for developing the economy of
the country, its performance measurement system is unsatisfactory due to missing of integrated
Performance measurement and improvement system that hinders its competitiveness.
This research explores the major metrics/key measurement indicators for AAAE and to sub
sector from different literatures and finding results. To achieve this objective, an overview trend
of existing PMIS in meat companies is assessed. Primary and secondary data were collected
using questionnaire survey, interview and observation of records. The methodology is to evaluate
business performances of sampled meat industries and the extent utilization of crucial financial
(lagging) and non-financial (leading) the researcher used survey instruments and data
analysis tools such as descriptive statistics, correlation and regression analysis with the help of
SPSS for Window Version 20.
This study indicates that companies which measure their performance using important financial
and non-financial measures in seven perspective to achieve better business performance. Even
though certain companies are currently using non-financial measures like productivity and
production volume, the finding result shows higher company’s profitability does not mean their
internal process performance is high, or its customer and market performance as it is expected.
They can be profitable in unbalanced markets. This study was identified and shown their
relationship between financial and nonfinancial performance measures and integrated using
equations of each indicators in every perspective with a multiple linear regression and
mathematical equations to identify which metric to improve first. Finally this study ABSC
holistic model performance measurement and improvement system with their framework. In the
proposed model, developed hierarchy measures are verified in strategic, tactical and operational
level.
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Keywords
Meat Processing Industries, Performance Measurement, Improvement