Productivity Improvement of SME Garment Manufacturing Industry: A Case Study in Yeka Sub City
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Date
2019-06
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Addis Ababa University
Abstract
Small and Medium Enterprises have a central role for national economic. Unfortunately, it still has a domain of low productivity, as well as for SMEs on garment products. This study is aimed to identify the factors that influence productivity in correspond to increase the productivity of SME on garment products. Enhancement of productivity in the field of garment manufacturing production is of very great importance to an entrepreneur’s ability to compete and make profits over time. An entrepreneur which fails to efficiently utilize its resources in creating value for its customers will not survive in the competitive business environment of today. Key performance indicators are found to affect the productivity of garment manufacturing SMEs, productivity plays main part.
While recognizing the centrality of garment manufacturing SMEs in charting the development trajectory of an economy the full potential of garment SMEs have not been adequately utilized in. Since enhancing the productivity of the garment manufacturing SMEs is mandatory in order to make the garment manufacturing SMEs competitive.
The general objective of the research is to develop a productivity improvement method that supports garment manufacturing small and medium enterprises (SMEs) to enhance their productivity by identifying the possible productivity factors and selecting the intervention areas. To achieve this objective, a literature survey has been conducted to get empirical knowledge. The existing productivity measurement and improvement practices, and productivity factors of the garment SMEs have been assessed.
To undertake this research primary and secondary data are collected in nine garment SMEs by using a well-structured questionnaire, interviews and personal observation as well as by referring previous research works. Descriptive statistics as well as cause and effect diagram were utilized to analyze data obtained from the SMEs interviews, questionnaires and direct observation.
From the thesis working capital, business network, sourcing, supply chain responsiveness , supply of raw material, wage/minimum wage, working condition ,product quality, technology, health and safety, production efficiency, motivation ,business regulation and restriction are productivity factors identified that affect garment SMEs productivity.
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SME, Garment Manufacturing Industry, Productivity Improvement