Enhancing Productivity of Small and Medium Enterprise through Value Stream Mapping: A Case of Zemen Shoe Factory in Addis Ababa Arada Sub city
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Date
2021-05
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Addis Ababa University
Abstract
Industries to be productive it is challenging that exceeding customer expectations with utilizing limited resource. Optimizing a process is one of the methods to face the challenges the most dares are reducing productivity, higher lead time, occurring non-value-adding activities. Here, value stream mapping plays important role in enhancing the process efficiency by identifying wastes, value-adding, and non-value-adding activities on the process then proposing improvement ideas for the wastes therefore the value-adding activities are tied up by standard. The study was conducted in Zemen Shoe Factory by selecting a major product of the company. Primary and secondary data collection methods were used for the methodology to conduct the study. The major factors for the company to have low productivity which is labour productivity is below 3 pairs/ person/day, also found wastes: waste of waiting (5026.8 sec), rework (4932 sec), waste of transportation(411.2meters), waste of inventory is (Average WIP 48), higher change over time (4755 sec), and waste of motion (46%). Cycle time and lead time is reduced from 16488.1sec to 3963sec and 8.2 days (708,480 sec) to 1.5 days (129,600). In the future state map by eliminating these factors and build up the capacity of workers finally use standard operational procedures were used in order to improve the productivity. Standard Operational Procedure was prepared for the optimized cycle time by adding allowances specified by the international labour organization. For men, the constant allowances, are 5% for the personal need allowance, 4% for basic fatigue allowance, and for women, 7% personal need allowance, and 4% basic fatigue allowance. The result has shown that the occurrence of wastes can affect the cycle time and lead time of a process. And if these problems are resolved a firm‘s productivity can be greater which 4.2 pairs/person/day.
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Keywords
Wastes, Value stream mapping, Standard Operational procedure