Productivity Analysisand Improvementin Ethiopian Metal Manufacturing Industries (A Case of Yesu Metals Manufacturing)
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Date
2018-06
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AAU
Abstract
Nowadays, due to high level of competition and survival request in a business world, that is a
basic necessity that business firms to measure, analyze and improve their productivity level as
they encounter increasing competition from an ever-changing business environment. Even
though the word productivity is a common word to hear every day in, it is still confusing for
many. However, the concept behind productivity is getting a better output from available
resources and inputs. As productivity increases, firms and county as a whole will be benefited as
investment expands and employment opportunity will also be created more. Even though there
are so many types of models and mechanisms of productivity measurement and analysis, there is
no decision can be made, as it is the first step to control and improvement of productivity.
Though the metal industry sub sector is the basic provider for the other sub sector industries &
construction sector and also the Government of Ethiopia is promoting the sector as a priority area
and for a huge potential in import substitution and economy development, its productivity level
is at low level due to variety of problems. Hence the countries demand for metal and engineering
products is met almost from export market. Thus, the research focuses to assess, analyze and
improve the productivity practice of Ethiopian metal industries by identifying the critical
problems and propose a firm level total productivity improvement method and suggest possible
improvement directions towards low productivity.
To undertake this research, primary & secondary data were collected through a survey
questionnaire, interviews and field visit/ physical observation in the case company as well as
referring previous research works and case company records. To analyze and present the data,
pie charts, bar graphs, and Pareto graph, cause and effect diagram are used. From the research, it
is concluded that the metal industries constitute several sub processes that are being managed
hindered by outdated machines, systems and techniques and poor skilled & knowledge
employees are resulting low productivity and competitiveness. To alleviate the internal or firm
level problems, an improvement method is proposed. In addition improvement knowledge
transfer mechanism is also directed for the sector level productivity improvement.
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Keywords
Productivity, productivity measurement, productivity analysis, productivity improvement, production system, Ethiopian metal manufacturing industries, knowledge transfer