Performance Measurement and Improvement for Ethiopian Tannery Industries: Case Study on Addis Ababa Tannery Share Company
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Date
2011-11
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Addis Ababa University
Abstract
The industrial strategic development plan of Ethiopia gives great emphasis to improve export-led
products to join the international market in a large scale. The strategy also promotes capital
saving and labor-intensive industrial development policy using coordinated approach (joint
forum) of supply chain management to encourage the production of value-added products. As a
predominantly agricultural economy with the largest cattle population in Africa, Ethiopia has a
strong base for semi-processed leather, finished leather and leather products. So Ethiopia’s
leather industry is in the forefront of the leather sector development within the Eastern and
Southern African region. The recent export development strategy introduced by the government
has give priority and incentive schemes for this sector. However, the challenge is how to make
best use of the country’s revealed comparative advantage to build a dynamic and competitive
sector that contributes to Ethiopia's economic growth.
Since tanning sub-sector has a great potential for rapid development of Ethiopian leather sector and
economic growth of the country, performance improvement of Ethiopian tannery industry needed.
Therefore, the aim of this thesis is to assess performance measurement and improvement
practices, determine key performance improvement areas, and make proper recommendation and
formulate performance measurement and improvement model for Ethiopian tannery industries
and case company.
This research paper reviews worldwide researches that related with performance measurement
and improvement. It has been conducted in a sample of eleven Ethiopian tannery industries and
case company by using a well structured survey questions, interviews, personal observation, and
secondary data collection. The results from this research assure that the major performance
problems of tannery industries are shortage of raw materials, low skill of workers, machinery
breakage, poor resource planning, poor customer and supplier relations, and poor performance
management. Depending upon the research findings, performance measurement and
improvement model with its implementation steps is recommended as a solution.
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Mechanical Engineering