Productivity Analysisand Improvementin Ethiopian Metal Manufacturing Industries (A Case of Yesu Metals Manufacturing)

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Date

2018-06

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Publisher

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research, it is concluded that the metal industries constitute several sub processes that are being managed hindered by outdated machines, systems and techniques and poor skilled & knowledge employees are resulting low productivity and competitiveness.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

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