Productivity Improvement through Inventory Management Practices for Printing Industry: The Case of Yekatit Paper Converting PLC
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Date
2018-06
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Addis Ababa University
Abstract
The purpose of this study was to investigate inventory management practices and organizational
productivity in Yekatit Paper converting plc. And identify the challenges related to inventory
management Practices to improve current productivity of the company. The major problems of the
case company are shortage of skilled manpower, inability to implement inventory management
practices, shortage of spare parts, and raw material, prolonged procurement procedures because of
a lesser amount of foreign exchange, quality issues related with use of older technologies and
human factor.
Besides, the limited available literatures were used as secondary sources and used primary data
which was collected using a questionnaire and data was analyzed using descriptive statistics
including mean and standard deviation by use of the relevant computer packages such as Microsoft
Office Excel and Statistical Package for Social Sciences (SPSS) program and to analysis of
existing productivity measures partial and total productivity measurement models are developed
and applied to monitor the existing productivity status of the firm.
The finding of the study are total productivity of the current year is 66% and the total productivity
index also showed that decline by 54% in the same period. And also the researcher identify ABC
analysis, Materials Requirements Planning (MRP) and Just-in-Time (JIT) are currently the most
popular inventory management technologies to improve current productivity, and the degree of the
MRP and JIT implementation and integration has a positive relationship with the company
performance and the hybrid MRP and JIT system, which create synergy and attains better
performance of the company by a unit increase in (MRP) Inventory would lead to 0.486 and a unit
increase in (JIT) Inventory would lead to 0.1933 increase in organizational productivity in YPC.
The researcher revealed that inventory management practices are highly impact on productivity of
the organization and better production methods to minimize costs and wastages. The researcher
recommends that the management should constantly expose its staff to training in order to improve
their skills on inventory management practices and enable the employees to understand the current
inventory systems which when used will help to improve productivity of the organization.
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Keywords
Productivity, Inventory Management, ABC analysis, MRP, JIT