SNNPR Science & Technology

Institute

VALUE CHAIN ANALYSIS FOR METAL-ART

PRODUCTS

Hawassa, Ethiopia

December, 2018
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 VALUE CHAIN ANALYSIS FOR METAL-ART
PRODUCTS
THE CASE OF HAWASSA CITY

Study Team:

1. Lijalem Mulugeta
2. Zelalem Zenebe
3. Yismaw Hone
4. Bogale Tekle
5. Kassim Hussein
6. Andarge Ayele
7. Teshome Engida
8. Kibrysfaw fekade
9. Commander Lema

Hawassa, Ethiopia

December, 2018
 ACKNOWLEDGEMENT

We wish to thank various organizations for their contribution to this study; to mention some,
Hawassa University, Dilla University, Welkite polytechnic college, Sodo polytechnic college,
Durame polytechnic college, SNNPRG Science and Technology Development Institute, and
SNNPRG Trade and Industry for their valuable technical support on this study. We would like to
express our appreciation to many Governmental offices, such as Hawassa City Administration
Trade and Industry office, Financial Institutions and various Wood and Metal Work
manufacturing Enterprises, for their help in collecting the data and all the technicians who helped
us in handling relevant information in the data collecting process of these study.

Special thanks should be given to South Nation Nationalities and People Regional Government
Science and Technology Development Institute staffs, for their heartfelt reception and wonderful
hospitality for the study team throughout the study period.

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 Abstract

The findings from the value chain study in Hawassa city Metal Art products showed that the
manufacturers are not able to be productive and competitive as compared to the market demand.
The major problems or constraints identified through interview and questionnaire during the
study are marketing and demand forecasting, material requirement planning, identification of
different production processes, product handling and storage, and display and supply there by
resulting in decline of the market. In order to identify the root causes in the value chain of metal
art production, a number of related literatures have been reviewed and customized bench mark
has been mapped. For this particular study, numerous value analysis methods have been applied.
These are: mapping the AS-IS value chain, mapping the bench mark value chain, identifying and
analyzing gaps/constraints, and analyzing cause and effect approach. Finally, the study concludes
that the bench mark has depicted a lot of gaps/constraints and categorized as techno-ware,
human-ware, info-ware, and orga-ware and recommended that the government, actors and stake
holders should play an important role in providing necessary facilities, financial support and
relevant knowledge and skill training in order to help manufacturers remain competitive in an
emerging metal art market and contribute their share towards the country's economic, social and
political development.
Key words: Value Chain, Metal arts, Bench mark, AS-IS, Value mapping

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 Table of Content
Abstract ......................................................................................................................................................... ii
Table of Content .......................................................................................................................................... iii
Acronyms ...................................................................................................................................................... v
List of Table .................................................................................................................................................. vi
List of Figures .............................................................................................................................................. vii
Chapter One .................................................................................................................................................. 1
Introduction ................................................................................................................................................... 1
1.2 Problem statement ............................................................................................................................. 2
1.3 Objective ............................................................................................................................................. 2
1.3.1 General Objective ........................................................................................................................ 2
1.3.2 Specific objective ......................................................................................................................... 2
1.4 Scope of the Study .............................................................................................................................. 2
1.5. Significance of the study .................................................................................................................... 3
1.6. Terminology ....................................................................................................................................... 3
Chapter Two.................................................................................................................................................. 6
Literature Review.......................................................................................................................................... 6
2.1 Importance of Metalwork ................................................................................................................... 6
2.2 Overview of Metal Industries.............................................................................................................. 6
2.3 Characteristics of Value Chain ............................................................................................................ 6
2.4 Haitian Handicraft Value Chain Analysis ............................................................................................. 8
2.5 An Overview of Art Metal ware Handicraft Industry of India ........................................................... 10
2.6 Namibia’s Metal Fabrication Industry and Its Value Chain ............................................................... 13
Chapter Three.............................................................................................................................................. 15
Methodology ............................................................................................................................................... 15
3.1. Area description ............................................................................................................................... 15
3.2. Survey team ..................................................................................................................................... 16
3.3. Value chain selection ....................................................................................................................... 16
3.4. Sample size and sampling techniques ............................................................................................. 19
3.5. Data collecting tools and methods .................................................................................................. 19
3.6. Methods of data analysis ................................................................................................................. 19

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 3.6.1 Value chain mapping ................................................................................................................. 19
3.6.2 Drawing the Value Chain Map .................................................................................................. 22
3.6.3 Value Analysis ........................................................................................................................... 24
3.6.4 Method of Comparative Analysis .............................................................................................. 24
3.6.5 Gap analysis ............................................................................................................................... 25
3.6.6 Tabulation and graphical representation of data ........................................................................ 25
3.6.7 Cause and Effect Analysis ......................................................................................................... 25
Chapter 4 ..................................................................................................................................................... 26
Result and Discussion ................................................................................................................................. 26
4.1 Mapping of Value Chain .................................................................................................................... 26
4.1.1 AS-IS value chain mapping ....................................................................................................... 26
4.1.2 TO-BE Value Chain Mapping (Bench Mark) ............................................................................ 27
4.2 Value Chain Analysis ......................................................................................................................... 28
4.2.1 Value Analysis of AS IS practice............................................................................................... 28
4.2.2. Value analysis of To-Be practice .............................................................................................. 32
4.2.3 Characteristics of Inputs and Supplies ....................................................................................... 36
4.3 Identification of Gaps/Constraints .................................................................................................... 43
4.4 Cause and Effect Analysis.................................................................................................................. 44
4.5 Technology Identification, Categorization and Prioritization ........................................................... 47
4.5.1 Technology Identification .......................................................................................................... 47
4.5.2 Technology Categorization ........................................................................................................ 47
4.5.3 Technology Prioritization .......................................................................................................... 53
4.6. Role of Actors and Stakeholders in Art metal production ............................................................... 56
4.6.1 Role of Actors ............................................................................................................................ 56
4.6.2 Role of value chain stakeholders ............................................................................................... 56
Chapter Five ................................................................................................................................................ 58
Conclusion and Recommendation .............................................................................................................. 58
5.1 Conclusion ......................................................................................................................................... 58
5.2.1 Future work ................................................................................................................................ 60
Reference: ................................................................................................................................................... 61
Appendices.................................................................................................................................................. 62

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Acronyms

ATO Alternative Trade Organizations

BOM Bill of Materials

CAD Computer Aided Design

EDC Entrepreneurship Development Center

EPCH Export Promotion Council of Handicrafts

GIZ Deutsche Gesellschaft fur Internationale Zusammenarbiet

MFI Microfinance Institutions

MIG Metal Inert Gas

MPR Material Requirement Planning

MPS Master Production Scheduling

MSME Micro and Small and Medium Enterprises

NGO Nongovernmental Organizations

RHS Rectangular Hollow Section

R&D Research and Design

SAT Science and Technology

SMAW Shielded Metal Arc Welding

SNNPR South Nation and Nationalities Peoples Region

TIG Tungsten Inert Gas

TVET Technical and Vocational Education and Training

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 List of Table

Table 3.1 Survey Team Information ............................................................................................. 16

Table 3.2 Value chain selection Criteria ....................................................................................... 18
Table 4.1 Respondent percentage on market demand .................................................................. 36
Table 4.2 Comparative value Chain Analysis (Metal –art production) ........................................ 37
Table 4.3 Cause and Effect Analysis ............................................................................................ 44
Table 4.4 Identified Technologies for each value chains ............................................................. 48
Table 4.5 Technology Categorization…………………………………………………………...49
Table 4.6 Parameters for Technology Prioritization ..................................................................... 53
Table 4.7 Degree of critical order for technology prioritization................................................... 54

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 List of Figures

Figure 2.1 Value Chain Analysis .................................................................................................... 8

Figure 2.2 Haitian Handicraft Value Chain Map .......................................................................... 10
Figure 2.3 Value chain map of the Namibian metal fabrication industry ..................................... 14
Figure 4.1 AS-IS Value Chain Map .............................................................................................. 26
Figure 4.2 To be (Bench mark) Value chain Map ........................................................................ 27
Figure 4.3 Identification of Gaps Value Chain ............................................................................. 43

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 Chapter One

Introduction
Any metal art work that is crafted from the „ores of the earth,‟ including bronze, gold, tin, lead,
silver and iron is defined as metal art. It is also common to see metal art created from various
metal alloys, such as aluminum. Metal art can be either purely decorative or functional and
useful. In the Early Bronze Age, for example, cups and bowls were hammered from metal
accomplishing both decorative and functional purposes. Although just about any surviving relic
from the Bronze Age might be considered „art‟ in our day, metalwork certainly has gradually
become more and more decorative in nature and the metal sculptures seen today demonstrate this
most clearly.

Metal and metal products industry plays a big role in enhancing the economic development of
both developing and developed countries. Competitive technology, management and
institutional set up are, however, required to make the products competent internationally.
Competitiveness is in fact determined by the productivity with which a nation uses its
human, capital, and natural resources. Productivity in turn depends both on the value of
products and services as well as the efficiency with which they are produced.

The value of metal and metal products industry is based on the principle that it can
create backward and forward linkage, enhance foreign exchange earnings by promoting
standard quality export products, create jobs and increase income, and give opportunity to
technology transfer. Over the years, the success of Ethiopian basic metals industries to achieve
these objectives was limited. The country has benefited little and turned out to be net drains on
its resources. However, in the last few years, the metal and engineering sector in Ethiopia has
been growing relatively good, following the consistent economic growth of the nation
(Asmamaw, 2010). Though there is a rapid development in the sector, the products obtained are
still low, despite the long history of iron casting and blacksmithing in Ethiopia. The metal
working industry is fraught with low productivity and slow growth both in output and
employment. There are several anecdotes, but systematic studies to understand the factors
associated with enterprise performance in the sector are scanty (Girum, 2012).

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For the purposes of this study, value chain analysis of Metal Art products in Hawassa city was
vital because it would provide a framework for looking at the relationships between role players
in the supply chain of Metal Art products. The role players in this case were Suppliers,
producers, Retailers and End users. Value chain analysis assists in determining the value that
each activity contributes to an organization (Amit&Zott, 2002).
1.2 Problem statement
Every enterprise who engaged in a metal fabrication and metal manufacturing sector is
extensively using metal arts to decorate doors, windows, furniture and many other metal
fabrication products. Despite these extensive uses there is no single enterprise who is dedicated
to the production and distribution of metal arts in Hawassa city. All the metal art used in every
enterprise is an import item therefore it impose a great problem on the supply chain management
moreover the metal arts supply is limited in number as well as variety of design.
1.3 Objective
1.3.1 General Objective

The main objective of this study is to assess the value chain of metal art production in Hawassa
city administration.

1.3.2 Specific objective

 To assess the existing value chain of metal arts production in Hawassa city.
 To identify the root problems in metal arts production
 To select an appropriate technologies to solve the identified problems
 To identify bench mark for metal arts production.
 To assess the marketing linkage and supply problems among the producer and user of
the product
1.4 Scope of the Study
This study consists of the value chain analysis of metal arts production in Hawassa city
administration. The study participants are selected small and medium scale enterprises from
seven sub cities of Hawassa city administration. Three enterprises are selected randomly from
both small and medium level enterprises, hence a total of 42 enterprises were involved in this
study. This paper tries to identifying potential constraints which are associated to product design,

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production process, finishing work, product quality and marketing of metal arts as well as
recommendation of possible interventions.
1.5. Significance of the study
The findings of this study will come up with the benefit of society considering that metal
manufacturing sectors in general and metal art manufacturing in particular plays an important
role in the overall socio-economic activities. As the value chain defined as a set of businesses,
activities and relationships engaged in creating a final product or service, it originates from the
fact that a product which is rarely consumed in its original form must be transformed, combined
with other products, transported, packaged and marketed until it reaches the final consumer.
Thus the engineering and metal art value chain describes how suppliers, processors, buyers,
sellers, and consumers, separated by time and space gradually add value to metal art products as
they pass from one link to the next.
This value chain analysis of metal art will be applied in Hawassa Science and Technology
Institute SNNPR, TVET College and Universities,SMEs, Machine suppliers and other
stakeholders implementing value chain concepts.
In doing so problems associated with metal art products, such as technological gaps, market
related gaps and other issues will be closely assessed in this study. Most importantly; suppliers,
producers, whole sellers, and end users will be benefited.

1.6. Terminology
Production: The manufacturing process, systems, and techniques which are technologically
acceptable, technically feasible, economically viable and eco-friendly through achieving the
value addition process in an effective and efficient manner.

Industry: The manufacturing or technical productive enterprises in a particular field.

Technology: is the practical means people using knowledge, tools, and systems to make their
lives easier and better and to improve their surroundings.

Techno-ware: (object embodied form) facilities that consist of tools, goods, products, physical
equipments, machinery physical process etc.

Human- ware: (human embodied form) the abilities of humans consists of understanding,
capacity for systematic application of knowledge, know how, human capability, specialized
ideas, skills, problem solving capacity etc.

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Info-ware: (Document/Record embodied form) fact consists of knowledge about physical
relationships, scientific or other form of organized knowledge, principle of physical and social
phenomena, technical information, computer software etc.

Orgaware: (institution embodied form) frameworks consisting of techniques, organizational

work assignment means for using and controlling factor of production, organization of products,
process, tools and devices for use by people.

Art metal:Any art work that is crafted from metals.

Value chain Mapping: the first step of the value chain is the so - called mapping. The main idea
is initially to identify the actors and then to „map‟ the traced product flows with in the chain
including input supply, production, processing, and market activities. The objective is to give an
illustrative representation of the identified chain actors and the related product activities/ flows.
The Value Chain map is a simple tool, which visualizes complex things we find in reality.

Value chain: full range of activities which are required to bring a product or service from
conception, through the different phases of production delivery to final consumers in order to add
values for each activity.

Main Chain: is a major activity of work flow in a chain.

Sub Chain:is a sub/support activity of work flow in a chain.

‘AS IS’:is the actual sequence of activities in a chain in order to deliver a product or a services to
the market by an enterprises.

‘TO BE’:represents the benchmark or the standard, or a set of standards, used as a point
of reference for evaluating performance or level of quality.

Value chain actors: participants who determine the overall character of the chain those become
responsible for up grading possibilities, knowledge transfer, and interaction coordination with in
the value chain.

Stakeholders: are those who support the value chain development.

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Papier-mâché: a malleable mixture of paper and glue, or paper, flour, and water, that becomes
hard when dry, used to make boxes, trays, or ornaments.

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 Chapter Two

Literature Review

2.1 Importance of Metalwork

Mankind is born with an instinctive desire to design and create things, not only for practical
purposes, but also for aesthetic value. Ancient cups and bowls reveal an interest in design, and
allow us to see some of the natural stages and progression of art. Seeing this artistic development
throughout history allows us to appreciate the ability of mankind to develop the creative mind
and translate that into tangible creations. This observation helps us understand the importance of
metalwork and how it plays a critical role in anthropological studies.

Fortunately for us, certain metal handle the test of time quite well and maintain their original
brilliance for thousands of years. As metal work evolved to more design-centric and decorative
in nature, metal artists began to create statues, bracelets, necklaces and other forms of gold and
bronze decor discovered from various ancient civilizations.

2.2 Overview of Metal Industries

Basic Metal Industries are industries engaged in production of metal from ore, scrap and
conversion of billet, slab etc., into primary metal products, while Engineering Industries
manufacture fabricated metal products.
Franziska (2006) says there is competitiveness for the company, industry and country. For the
company, competitiveness is the ability to provide products and services as or more effectively
and efficiently than the relevant competitors. In the traded sector, this means sustained success in
international markets without protection or subsidies. Although logistics costs might allow firms
from a nation to compete successfully in their home market or in adjacent markets,
competitiveness usually refers to advantage obtained through superior productivity.
2.3 Characteristics of Value Chain
As goods move through the supply chain, they keep on adding value. Hence a value chain can be
defined as "a full range of activities which are required to bring a product or service from
conception, through the different phases of production (involving a combination of physical
transformations and input of various producer services), and through delivery to, finally, the
consumers, and to final disposal after use" (Kaplinsky & Morris, 2002).

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Wikipedia (2006) points out that a value chain is sometimes called "value chain analysis". Pearce
and Robinson (1997), point out that "value chain analysis is based on the assumption that a
business's basic purpose is to create value for the users of its products or services". Amit and Zott
(2002) argue that a value chain framework provides an analysis of value creation at the firm
level. It decomposes the firm into its activities and then studies the economic implications of
those activities.
In short, a value chain can be defined as an analysis of a supply chain in terms of value that it has
incurred through its value-added activities. Porter (2005) and Wikipedia (2006) point out that the
concept of value chain goes beyond an individual organization. It also applies to whole supply
chains and distribution networks. Hugo et al. (2004) state that an integrated supply chain is
sometimes called a "value integrated delivery system". They furthermore clarify that, in order to
explain supply chain fully, it is important to provide clarity on some of the value concepts and to
explore how the supply chain contributes to the strengthening of customer value. They refer to
Michael Porter's concept of the value chain as laid-out by Lyson (2000) and Porter (2005), who
mention that the value-adding activities of an organization can be categorized as "primary
activities" and "support activities". Both primary and support activities constitute the value chain.
According to them, primary activities are those activities that generate value like inbound
logistics (import), operations (production), outbound logistics (export), marketing and sales and
services (maintenance). Support activities include services like administrative infrastructure
management, human resource management, research and design (R&D) and procurement, as is
presented in Figure 2.1 below. Amit and Zott (2002) define primary activities as those activities
that have a direct impact on value creation, and support activities as those activities that affect
value only through their impact on performance of primary activities.

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 Figure 2.1 Value Chain Analysis
Porter (1985)
2.4 Haitian Handicraft Value Chain Analysis
This section describes the various components of the Haitian handicraft value chain as it pertains
to metal and papier-mâché based crafts. It includes descriptions of the U.S. end market, the
business enabling environment in Haiti, and the market actors in the core value chain and
supporting markets. Below is an overview of key elements in the Haitian handicraft value chain.
Figure 2.2 on the following page portrays these elements and the links between market actors in
a value chain map.
There are five end market channels through which Haitian actors can sell metal and papier-
mâché crafts in the U.S.:
1. Large, integrated importer/retailers such as Wal-Mart, TJMaxx, Pier 1 and Pottery Barn
2. Importer/distributors which sell both to the large importer/retailers and independent
retailers
3. Independent retailers with small local and regional chains of stores
4. ATOs like Ten Thousand Villages and SERRV International which buy on a fair trade
basis with producers
5. direct to consumers through web sites and tourism
The functions of market actors in the value chain include:
 Raw materials supply. This includes manufacturing, importing, wholesaling and retailing
of metal, paint and other materials.

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  Production stage-one. Metal craft forms are cut from flattened drums or sheet metal and
shaped. For papier mâché crafts, molds are built and craft pieces are constructed.
 Production stage-two. Metal and papier-mâché crafts undergo finishing work, painting
and preservative treatments.
 Product consolidation. Crafts are labeled and packaged and readied for shipment.
 Export. Crafts are expedited through export procedures and shipped.
The core value chain market actors include:
• Craft factories: large-sized firms with organized production systems and export
operations
• Craft workshops: small-sized artisanal production and product consolidation operations
• Production contractors: supervisors of artisanal production with consolidation capacity
• Metal artisans: individuals or groups who cut and shape metal crafts in stage-one
production.
• Intermediary agent/traders: traders or representatives of importers who supervise and
consolidate production and handle exporting.
• NGO/agents: NGOs that fill the role of an intermediary agent/trader.
• Designer/producers: product designers and manufacturers of small-quantity, high-value
crafts for retail

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 Figure 2.2 Haitian Handicraft Value Chain Map
2.5 An Overview of Art Metal ware Handicraft Industry of India
India is a hub of a number of exquisite arts and crafts. In India, craftsmen use different metals to
make art metal ware. Metals like iron, copper, gold, silver and alloys like bell metal, black metal,
white metal, bronze etc. are used to make a variety of art metal wares. Indian metal craft is
famous world across for its stylish, elegant and intricate designs. The export of art metal ware
from India was Rs. 3328.64 crore in the year 2012- 13. The figure is higher as compared to any
other handicraft of India. This fact made this particular handicraft sector an important area of
study.

Filigree and Silverware

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 Filigree is an extremely ancient technique dating back to 4000 years ago. The
silver filigree work in India encompasses various steps that are required to
give the items a perfect grandeur. Silver filigree work is a style unique in itself.
Filigree work is performed on silver and involves significant precision and
technicality. The artifacts manufactured comprises alloy that contains over 90% of
silver. With changing times, artists have been using new methods to compete in
the market.
Main clusters: Two major clusters of silver filigree in India are Karimnagar in Andhra Pradesh
and Cuttack in Orissa. The practice in Karimnagar is about two centuries
old. However it is also practiced in Warangal in Andhra Pradesh.
Artisans involved: Karimnagar has one silver filigree cooperative society with 65 artisans and 150
families 70. Whereas, only 200 artisans are engaged silver filigree work in
Cuttack 71.
Raw material used: Key raw materials used are silver wire, tracing sheet, copper, charcoal, dilute
sulphiric acid.
Tools used: Hammer, moulds, files, chisels, anvil, pliers, pincers and scissors are the key tools
used for this work. Metal die and pestle is used for shaping the silver sheet in
case of select products such as trays, bowls, etc.

Production Process

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 Sourcing
sourcing siliver bars, blocks or biscuits from local markets or other cities

Melting/moulding
drawing of rods into wires or thin strips for work. twisting of wires is done to give it a corrugated finish

Designing
Tracing the design on paper before shaping the wires

Preparing basic design

creating a framework using a thin silver strip and thereafter inner textures are weaved and fixed in the
basic object

Fixing
fixing the basic object on mica sheet with an indigenous paste and is soldered

Framing
pouring melted wax on a wooden board and putting a frame on the wax may making out erboundary
with thick siliver strip and placing thin silver strips for inner frame.

Assembling
preparing individual design pieces using twisted wire and soldering them onto the main framework

Heating and adhesive mixing

Final piece is heated and detached from wooden plank and reversed on cement plank. an adhesive is
poured on the product to make all parts joint

Cooling and smoothing

the product is left to cool and mould is taken out and smoothened by iron filer

Polishing, value addition and Lacquering

polishing by shikakai, sulphur, polish paper, sand paper etc. painting, enamelling, engraving,
meenakari, etc as value addition and oxidasing by lacquering in the end

Finished Products

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2.6 Namibia’s Metal Fabrication Industry and Its Value Chain
A brief survey of Namibian companies engaged in metal fabrication has revealed that a
significant number of companies also perform economic activities that fall within Manufacture
of machinery and equipment, in particular Manufacture of agricultural and forestry machinery.
These companies produce, among other things, ploughs, seeders and other specialized equipment
and supplies for the agricultural sector. Furthermore, there is a strong overlap between metal
fabrication and economic activities that fall within Manufacture of motor vehicles, trailers and
semitrailers and in particular Manufacture of bodies or motor vehicles; manufacture of trailers
and accessories for motor vehicles.
Since most metal fabrication activities carried out in Namibia are based on imported steel
inputs and to a lesser extent on aluminum inputs, most of the industry‟s output is products that
fall within iron and steel; and aluminum, further more on other metal products such as tools,
spoons and forks of base metal and miscellaneous articles of base metal.
The value-chain map Figure 2.3 displays the various operators in the Namibian metal
fabrication industry and the value chains for the major product groups from the perspective of
most relevant inputs, major clients and market segments currently served by the industry. The
mapping exercise distinguishes between industrial steel (mild steel, stainless steel and
galvanized; and aluminum as one sub-chain and reinforced steel-rebars and mesh as another.

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Figure 2.3 Value chain map of the Namibian metal fabrication industry
Source: GIZ (2016)

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 Chapter Three

Methodology

The methodology employed in this study combined desk research, face‐to‐face interaction,
online surveys as well as virtual communication in order to achieve the expected results. Prior to
conducting the analysis, nine members of the field analysis team participated in a three-day
roundtable discussion where the results of a sample value chain study and the main concept of a
value chain analysis were presented and discussed. Technology roadmap development document
of the country was also presented at the roundtable as well.
The value chain analysis team first conducts background research on the metal manufacturing
sector in Ethiopia-Hawassa by reviewing websites and other secondary sources of information.
Data collection instruments were then developed so as to answer these questions. Qualitative
data collection was performed in Hawassa city. The qualitative instruments were key informant
interviews and questionnaires answered by focus group (small and medium scale enterprises).
3.1. Area description
Hawassa is a city established on the shores of Lake Hawassa which is located 275 Km away
from Addis Ababa and one the fast growing city in Ethiopia with an estimate population of
260,000(According to 2007 G.C Census). The growth and expansion of Hawassa city is consider
being radical when compared to every town in the country; it happened within a short period of
time. Particularly since the 1980s Hawassa had shown a very fast growth. Currently the city is
serving as the capital city of the southern Nation Nationalities and people regional state as well
as the capital city of Sidama zone Administration. So far there is a remarkable progress in the
socio-economic development bodies, residents and other organizations in the city. More recent
establishment of the Hawassa industrial park gives the city an industrial city status. The city
administration has eight sub-cities.
This study is carried out in seven sub-cities of the eight sub-cities of Hawassa city
administration. These are:
 Menahria Sub-city
 Mehalketema sub-city
 Misrak sub-city
 Tabor sub-city

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  Haikdar sub-city
 Addisketema sub-city
 Baheladarash sub-city
From each sub-city three small scales and three medium scale wood and metal works
manufacturing enterprises were randomly selected.
3.2. Survey team
The survey team is composed of experts from different institution and their educational
background is seen prior to the team formation process. Accordingly every team member‟s field
of specialization and Educational level is list in the table form as follows.

Table 3.1 Survey Team Information

No. Name Field of specialization Educational Level Organization
1 Lijalem Mulugeta Manufacturing M.Sc Hawassa University
2 Yismaw Hone Manufacturing M.Sc Sodo Polytechnic
3 Kassim Hussien Mechanical Engineering B.Sc SNNPR Trade and Industry
4 Bogale Tekle Mechanical Engineering Postgraduate Welkite Polytechnic
5 Teshome Engida Manufacturing B.Sc SNNPR SAT dev‟t institute
6 Kibrysfaw Fikade Manufacturing B.Sc Durame Industrial College
7 Andarge Ayele Manufacturing M.Sc Dilla University
8 Comander Lema Manufacturing B.Sc SNNPR SAT dev‟t institute
9 Zelalem Zenebe Mechanical Engineering M.Sc Hawassa University
3.3. Value chain selection
The Art metal was selected to undertake simple value chain analysis due to the following
reasons:

 Majority of the current micro and small enterprise was involved in metal fabrication
 Art metals supply and demand gap
 Have High current and future job opportunity in the study area and other as well
 Good in loss minimization and profitability
 Have potential to import substitution
 Possibility of using native species or strategic ecosystems
 Supply capacity for the products
 Market potential

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  Generation of socio-economic benefits; and
 Number of companies (determining how many can enter and how many can be
supported, in order to consolidate the chain).

The selection of products is made on the basis of an analysis of a set of specific criteria
mentioned above which is categorized in four specific areas: market and economics,
environment and biodiversity, social and political aspects, and technology and infrastructure.

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 Table 1.2 Value chain selection Criteria

የምርቶቹ ዓይነት/value chain/products

ተ. መስፈርት/criteria
Metal File
Aluminum door
ቁ and window
cabinet Metal art school desk Wheel chair Hospital bed Truss structure

5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1
1 የእድገትናትራንስፎርሜሽንእቅድ / Size
of Sub sector X X X X X X X

2 የስራእድሌመፍጠርመቻለ
X X X X X X X

3 ሀገርውስጥያሇውየምርትድርሻ / GDP
Share X X X X X X X

4 የገበያድርሻ / Market Share

X X X X X X X
5 የወጪምርትድርሻ
/Share of Export X X X X X X X

6 የማደግአቅም/Growth Potential
X X X X X X X
7 የገበያድርሻ /Market Potential
X X X X X X X
8 ላልች(የሰውኃይሌ, ቁስ, እውቀት,
የገንዘብአቅም, መሰረተሌማት) factor X X X X X X X
condition
9 የምርትማስፋት/ጭማሪ / Product
Diversfication X X X X X X X

10 በጥቃቅንናአነስተኛ፣በወጣቶችናወዘተየሚ
ያመጣውሇውጥ X X X X X X X

11 ከአየርንብረትጋርተስማሚመሆንመቻለ
/ Conservation importance X X X X X X X

12 የሴቶችንናአካሌጉዳተኞችጠቃሚነት
/ Women Empowerment X X X X X X X

13 Import
substitution(የውጭምርትመተካት) X X X X X X X

አጠቃሊይውጤት / TOTALRATING: 37 34 48 32 31 38 36

18
3.4. Sample size and sampling techniques
Sampling and sample size are crucial issues in pieces of qualitative research, which seek to make
statistically based generalizations from the study results to the wider world. To generalize in this
way, it is essential that the sampling method used and the sample size is appropriate, such that
the results are representative, and that the statistics can discern associations or differences within
the results of a study. Having this in mind, this study considers 3 small-scale and 3 medium-scale
enterprises from each sub-city. Therefore, the total number of enterprise will be 42 from seven
sub-city of Hawassa city administration.
3.5. Data collecting tools and methods
Data collection instruments were then developed so as to answer questions related to the
objectives of the study. Qualitative data collection was performed in Hawassa city. The
qualitative instruments were key informant interviews and questionnaires answered by focus
group (small and medium scale enterprises).
For a period of five days, the analysis team conducted qualitative interviews (questionnaires)
with 42 small and medium scale enterprises in seven sub-cities of Hawassa city administration and key
stakeholders (SNNPR Trade and Industry bureau). Seven members from the analysis team were
participated in the data collection process and the rest two were compiling and analyzing the collected
data.

3.6. Methods of data analysis

3.6.1 Value chain mapping

Value chain mapping is the third step in the value chain program design process. A value chain
map illustrates graphically all of the components, and relationships between them, of the selected
value chain; it is a visual tool that helps us understand how a particular industry works. Value
chain maps demonstrate how a product in an industry moves from raw material through
production, processing, and other steps, until it eventually winds up with the final consumer. The
map highlights the range of activities that occur within the value chain. The map will also outline
transformation steps or functions, actors, relationships and support services. The level of detail in
a value chain map can vary, ranging from noting the basic essentials to highly comprehensive. At
the end of the design process, a second version of the map can be developed to detail the future
vision of the market that the program will create.

The components that are generally needed in order to map the value chain include the following:

19
 i. Transformation steps,
ii. Value chain end markets (consumers),
iii. Value chain actors & customers and
iv. Support services.
Each of the inputs the program designer will need during the physical mapping of the value chain
is detailed below. In this stage the program designer will make a list for each of the six inputs,
which will be need later to create the map.
i. Transformation Steps
Transformation steps are the stages a given product goes through along the supply chain. For
example if the product is bananas, the first transformation step is “input supplies,” and would
include things like seeds or fertilizer, or any other components needed to grow the bananas. The
last transformation step for bananas would be “consumption.” Here we have listed several
examples of steps a product transforms through:
 Input Supplies
 Producing
 Processing
 Wholesaling
 Retailing
 Consumption
ii. Value Chain End Markets (Consumers)
Value chain actors are those participate in a value chain. The people or entities who are actors in
value chain End Markets are primary markets to which the product of the value chain is sold. In
terms of structure, typically the markets are placed in order of their value, from left to right
(lower value markets on the left, higher value markets on the left).

20
iii. Value Chain Actors
Value chain actors are those who participate in a value chain. The people or entities who are
actors in our product include:
 Regional input suppliers
 Local suppliers
 Small scale enterprises
 medium scale enterprises
(Value chain consumers are not considered „actors,‟ and so the potential customers who will
consume the product in the value chain should be listed across the top of the value chain map.
Actors differ from consumers in that they do not use the product but instead process or move the
product through the chain.)
iv. Support Services
Critical support services can come from actors internal to and independent of the value chain.
Internal actors and the support services they provide should be linked with an arrow (use a
different style for each different service) and labeled with a dollar sign ($). Actors who are
independent of the value chain can be listed on the far right side of the map vertically. Examples
of support services include:
 Microfinance institution (MFI)
An alternate form of bank, this type of financial institution is typically found in developing
countries and provides microcredit lending to those in poverty. Microcredit Lending is the
extension of small loans, designed to spur entrepreneurship. Microloans, as the name implies, are
generally very small and are given to the very poor, who tend to lack the minimum requirements
(i.e. collateral, steady employment, credit history, etc.), for access to traditional credit.
 Non-Governmental Organizations (NGOs)
Those associations created by people or groups that operate independently from any government.
The distinction of NGO is usually limited to organizations that seek to impact a social issue.
Sometimes called „civil society organizations‟
The main purpose for mapping the value chain is to summarize graphically the value chain
structure. There are several ways to go about charting the value chain: Horizontally, Vertically,
or Circular. Whichever style the program designer chooses, the components remain the same.
The procedure for mapping the value chain is as follows:

21
1) Collect Market Research
Collect all the market research that‟s been compiled to date. The program designer should have
data from several sources, including:
 Key informant / in-depth interviews
The best information is likely to be found through direct conversations and
interviews with “key informants” within the country/region. Key informants
can be found in a variety of places, for example – governmental departments,
private sector academic institutions, other NGOs, etc.
 Focus group discussions
Conducting focus group discussions is another great way to get important
information.
 Market observations
Review existing industry and market research.
2) Analyze the findings and study the implications
a) Evaluate the market research and the other information the program designer has
collected so far to determine what the unique characteristics of the value chain are.
b) Consider the relationships between the value chain actors, and determine the linkages.
 In which industries/economic activities is there good potential for linkages for micro
and small enterprises?

3.6.2 Drawing the Value Chain Map

Now the program designer will begin to actually draw the map of the value chain based on the
comprehensive analysis. The program designer will use the lists made in the Inputs section.
i. Write out each step in the Transformation Process
 Start with the transformation steps the program designer came up with when
gathering inputs, and begin listing those steps vertically along the left side of the map
 The program designer should choose a shape for these functions to differentiate them
from other parts of the value chain later on once the map becomes more complicated.
In our example, we‟ve chosen to identify transformation process steps by surrounding
each term with square/rectangle.

22
ii. Identify the various End Markets (Consumers) in the Value Chain

 Use the list of End Markets (Consumers) – the primary consumers to which the product
of the value chain is sold.
 Arrange the list of market segments in order from lowest to highest value, beginning with
low value markets on the left, and moving to the right as the markets reach a higher level.
iii. Identify the different Actors in the Value Chain
 Here, use the next set of inputs – the list of identified key Actors in the Value Chain
 Starting at the bottom of the value chain map, begin placing each actor on the map,
according to the relevant value chain activity (the boxes on the left side of the map) and
the relevant market (the circles across the top of the map).
 Continue to place each actor according to their value chain activity and the markets
themselves for the remaining levels of the value chain.
 Expand the actor‟s box to reflect involvement in multiple levels of the value chain.
iv. Depicting Relationships
 Construct key linkages between all the actors in the value chain based on the data from
the research.
- Connect their relationships with any support services that help link producers to
the end market
- Identify the relationships between the producers & the key actors that help link
the producers to the end market
 Arrows are the most commonly used symbols for depicting relationships on a value chain
map, which should flow vertically from top to bottom and horizontally from left to right –
as if writing a letter. Use a different style line to illustrate each unique relationship, so
they are clearly defined.
 Draw arrows pointing up to represent product flow (from input suppliers up to end
markets)

v. Representing Support Services

 If developing a detailed map, it might be a good idea to include support services as an

overlay. Use arrows to show the flow of services from one actor to another in the
transformation flow.

23
  Services from actors outside the value chain can also be included on the map. It is
important that these services are placed at the far side of the map (and not in the value
chain). Shading the box differentiates these actors from those within the value chain.
 These should include the range of service providers.

3.6.3 Value Analysis

Value Analysis is analyzing value of each activities and how it is undertaken in existing situation
(AS IS) with respect benchmark. A value analysis, providing both qualitative and quantitative
background information for activities to be analyzed; Sources of information for this analysis
was secondary data, published or unpublished literature, surveys, focus groups, and rapid
appraisal. A major goal of analyzing is to identify any “bottlenecks” in the value chain.

The identification of the factors that the customer‟s value in the way of the conduct of each
activity and then work out on the changes that are needed.

3.6.4 Method of Comparative Analysis

All data and information gathered in Value chain is analyzed using the Four Parameters
(Quantity, Quality, Cost, and Time)

Four Parameters (Quantity, Quality, Cost, Time)

The process of analyzing the Value chain activities was according to the four parameters (Yield,
Quality, Cost and Time) to identify the Gaps between AS IS compared to the Benchmark. The
four parameters defined as flows:

Quantity – refers to level or number of output acquired

Quality – refers to the level of standard applied
Cost – refers to the amount of money allotted in a specific activities
Time – refers to the specific duration, time limitation in performing the activities
The following is the way done to analyze the value chain in milk production and processing. The
main Chain and Sub Chain is listed to use the four parameters, which are the yield, quality, cost
and time, so as to compare already the benchmark versus the AS IS. Since using this approach
we can clearly see the difference between the two elements.

24
3.6.5 Gap analysis

The purpose of a value chain gap analysis is to measure the differences between the current
situation and the desired situation. It compares “what is” with “what ought to be”. When gaps are
identified, you can work to close them.

3.6.6 Tabulation and graphical representation of data

It is cumbersome to study or interpret large data without grouping it, even if it is arranged
sequentially. For this, the data are usually organized into groups called classes and presented in a
table which gives the frequency in each group. Such a frequency table gives a better overall view
of the distribution of data and enables a person to rapidly comprehend important characteristics
of the data.

The data which has been shown in the tabular form may be displayed in pictorial form by using a
graph. A well-constructed graphical presentation is the easiest way to depict a given set of data.

3.6.7 Cause and Effect Analysis

It‟s a diagram that demonstrates the relationship between effects and the categories of their
causes. The arrangement of the diagram looks like a fishbone it is therefore also called fish-bone
diagram. Cause and Effect Analysis enables you to identify the possible cause affecting or
creating a project or problem. A cause and effect diagram is a quick and visually effective way of
exploring a problem or opportunity with some vigor. We can use a cause and effect analysis
when we need:

 Root Cause Analysis

 Problem Exploration
 Defining a problem
 Identifying possible data requirements
 Developing objectives for solutions
 Narrowing down causes
Hence, after reviewing related literatures, for the best outcome of the study, mapping the AS-IS
value chain, mapping the bench mark value chain, Value analysis, identifying gaps and analysis,
and cause and effect analysis tool were applied as a method of data analysis.

25
 Chapter 4

Result and Discussion

4.1 Mapping of Value Chain

Value chain mapping is the process of developing a visual depiction of the basic structure of the
value chain. A value chain map illustrates the way the product flows from raw material to end
markets and presents how the industry functions. It is a compressed visual diagram of the data
collected at different stages of the value chain analysis and supports the narrative description of
the chain.
By using the information gathered from questionnaire and during interviews as well as
secondary research, the value chain analysis team develops the map of the metal art
manufacturing in Hawassa City. Value chain mapping enables the analysis team to visualize the
flow of the product from beginning to end consumer through various actors, as well as the
supporting markets and enabling environment affecting the value chain.

4.1.1 AS-IS value chain mapping

The AS-IS mapping of the value chain analysis for the current production system of metal art in
Hawassa city has shown in the figure 4.1 below.

Preparing Tools,
Marketing & Raw Material
Detail design equipment & Production Quality Control
Market Survey Input
machines

Receiving Free hand For Production Measuring & Measuring & Checking
order sketch of products layout tools Layout dimension

Shearing Observation
Material Cutting
selection machine

Power Joining
hacksaw
Metal
Manual Removal
Bending
Key
Grinding Forming
machine process Main Chain
Figure 4.1 AS-IS Value Chain Map
Drilling Grinding & Sub Chain
machine Finishing
Welding
machine Painting

26
 4.1.2 TO-BE Value Chain Mapping (Bench Mark)
The TO-BE mapping of the value chain analysis for the improved production system of metal art has illustrated in the figure 4.2
below.
Marketing Raw Identifying Preparing Product
Detail Tools, Quality Display &
& Market MRP Material production equipment &
Production handling
design Control Supplying
Survey Input process machines Storage

Receiving Identifying Customer For Selecting Measuring & Reading &

Order potential based Product appropriate layout tools Checking Trolley Display
production Interpreting
suppliers Development Manufacturing Drawing Dimension board
of tools Rolling
process
Survey and Machine Store
Preparing Designing equipment Measuring& Logistics &
Team Checking
MPS necessary tools Preparing Press machine laying out
surface
room transport
Demand and Equipment production with dies finish
For
Forecasting Inventory process plan Cutting
production Shelf
control Preparing Shearing
of products Checking
detail drawing Preparing machine
product Tree Joining Aesthetics Packaging
Power Process
diagram hacksaw
Preparing
assembly drawing
Bending Metal
Machine Removal
Material Process
Milling
selection Machine Forming
Welding Process Key
Machine
Casting Main Chain
Drilling
Machine
Process
Sub Chain
Grinding
Grinding &
Machine
Figure 4.2 To be (Bench mark) Value chain Map Finishing
Metal
Melting
Painting
Furnace

Twisting Machine

27
4.2 Value Chain Analysis
4.2.1 Value Analysis of AS IS practice
i. Main chain: Marketing and Market survey
• Value analysis of Receiving order
Functions
 Receiving orders of other products than art metals, but products which need metal art for
decoration.
Problems
 They do nothing to survey customer interest.
 They do not have any market forecasting system.
ii. Main chain: Detail design
• Value analysis of free hand sketch
Functions
 Explain the idea in drawing (free hand sketch)
Problems
 Drawing skill gap.
 They cannot use appropriate drawing soft ware.
• Value analysis of material selection
Functions
 They intend to use available materials
Problems
 Customer interest not prioritized.
 They depend on the available material.
 They select low cost material.
iii. Main chain: Raw material input
• Value analysis for production of product
Functions
 Buy fabricated art metals.
 Fabricate some art metals like flat iron art, sheet metal arts and some round bars.
Problems
 High raw material cost.

28
  Small number of suppliers.
iv. Main chain: Preparing tools ,equipment and machines
• Value analysis of shearing machine
Functions
 Buy power shear machines for sheet metal cutting.
 Fabricate manual shear machine for cutting flat iron and small diameter round bars.
Problems
 Shear machines are more expensive to afford enterprises.
 Fabricating Poor quality manual shear machines.
• Value analysis of power hack saw
Functions
 Buy power hacksaw machine for metal cutting.
Problems
 Power hacksaw machines are more expensive to afford enterprises.
 Using hacksaw (manual).
• Value analysis of manual bending
Functions
 Buy manual bending machine for metal bending.
 Fabricate modified manual bending machines.
Problems
 Bending machines are more expensive to afford enterprises.
 Fabricating Poor quality manual bending machines.
• Value analysis of grinding machines
Functions
 Buy grinding machine for cutting and removing metals.
Problems
 Using limited grinding disc types.
• Value analysis of drilling machines
Functions
 Buy drilling machine for making holes on metals.
Problems

29
  Using limited drilling bits type.
 Using low capacity drilling machines.
• Value analysis of welding machines
Functions
 Buy welding machine for joining metals.
 Copied welding machines.
Problems
 Using limited welding machines type.
 Using low capacity welding machines.
 Using arc metal welding only.
v. Main chain: Production
• Value analysis of measuring and layout
Functions
 Measuring operation.
 Sheet metal layout operation.
Problems
 Using less precision measuring equipment.
 Using low cost measuring tools.
 Skill gap to use Vernier caliper and micrometer.
 Drawing skill gap.
• Value analysis of cutting operation
Functions
 Sheet metal cutting, small diameter bars, flat iron cutting and RHS cutting.
Problems
 Using low capacity cutting machines.
 Difficult to cut plates and big diameter solid bars.
 Not affordable to buy modern cutting machineries, like; CNC, lathe machine.
 Skill gap to operate modern machineries.
• Value analysis of joining operation
Functions
 Sheet metal welding, riveting, seaming.

30
  Arc welding of mild steels.
 Using epoxy.
Problems
 Using low capacity welding and riveting machines.
 Difficult to weld materials other than mild steel; cast iron, stainless steel, brass tubes and
sheets, aluminum products.
 Not affordable to buy advanced welding machineries, like; MIG, TIG, sub-merged
welding machines.
 Skill gap to operate modern machineries.
• Value analysis of joining operation
Functions
 Sheet metal welding, riveting, seaming.
 Arc welding of mild steels.
 Using epoxy.
Problems
 Using low capacity welding and riveting machines.
 Difficult to weld materials other than mild steel; cast iron, stainless steel, brass tubes and
sheets, aluminum products.
 Not affordable to buy advanced welding machineries, like; MIG, TIG, sub-merged
welding machines.
 Skill gap to operate modern machineries.
vi. Main chain: Quality checking
• Checking dimension
Functions
 Measuring
Problems
 Inappropriate usage of measuring tools.
• Observation
Functions
 Observing the physical appearance of the product
Problems
 Randomly observing the product than using a set of standards during quality checking.

31
4.2.2. Value analysis of To-Be practice
i. Main chain: Marketing & Market survey
• Value analysis of receiving order
Functions
 Receiving orders of art metals products which need metal art for decoration.
• Value analysis of survey team
Functions
 Organizing Qualified survey team
 Organized marketing information of art metal
• Value analysis of demand forecasting
Functions
 Use well developed market research
 Customer demand based forecasting
ii. Main chain: Material Requirement Planning
• Value analysis of identifying potential suppliers
Functions
 Get information from other producers
 Use internet and other medias to identify suppliers
• Value analysis of preparing MPS
Functions
 Quantify significant processes, parts And other resources
 Identify bottle necks and anticipate needs and completed goods
 Produce master schedules and forecast for any level of bill of materials
• Value analysis of inventory control
Functions
 Regularly check a shop's stock
 Forecasting future demand
 Determine when to order, how much to order, and the logistics of those decisions
iii. Main chain: detail design
• Value analysis of customer based product development
Functions

32
  Find out what problems you can solve for the customer before designing the product
 Get early feedback on new product concept from customers by showing them initial
prototype
• Value analysis of designing necessary tools and equipments
Functions
 Maintain quality by designing tools which consistently produce parts with the required
precision
 Use properly designed equipment to produce high quality and cost effective products
• Value analysis of preparing detail drawing
Functions
 Use different design software‟s to produce good quality drawings
 Take various qualities of inputs from clients and analyze these inputs and develop detail
drawings
• Value analysis of preparing assembly drawing
Functions
 Use different design software‟s to produce good quality drawings
• Value analysis of material selection
Functions
 Select a material property that satisfy the function and the operating conditions of the
components being designed
 Use Correct combination of mechanical, physical and chemical properties to meet the
function of the components
iv. Main chain: Raw material input
• Value analysis of for production of tools and equipment
Functions
 Use appropriate materials and modern machines to produce good quality tools and
equipment
• Value analysis of for production of products
Functions
v. Main chain: identifying production process
• Value analysis of selecting appropriate manufacturing process

33
 Functions
 Use appropriate manufacturing process which saves time and money
• Value analysis of preparing production process plan
Functions
 Use appropriate manufacturing process which saves time and money
• Value analysis of preparing product tree diagram
Functions
 Combine the probabilities, decisions, costs and payout of a decision and provide a
strategic answer
vi. Main chain: Preparing tools, equipment and machines
• Value analysis of rolling machine
Functions
 Buy rolling machines for sheet metal cutting.
 Fabricate manual rolling machine for rolling flat iron, sheet metal and small diameter
round bars.
• Value analysis of press machine with dies
Functions
 Buy press machines for pressing dies and sheet metal
 Fabricate manual press machine for pressing dies and sheet metal
• Value analysis of bending machine
Functions
 Buy bending machines for sheet metal, round bar and flat iron bending.
 Fabricate manual bending machine for sheet metal, round bar and flat iron bending.
• Value analysis of metal melting furnace
Functions
 Buy metal melting furnace for making molds
 Fabricate metal melting furnace for making molds
vii. Main chain: Production
• Value analysis of reading and interpreting drawing
Functions
 Use engineering drawing skills

34
  Read and understand drawings
• Value analysis of casting process
Functions
 Understand pattern materials (wood, aluminum, etc)
 Know types of mold sands
viii. Main chain: quality control
• Value analysis of checking surface finish
Functions
 Observe the smoothness, shininess, roughness, etc
• Value analysis of checking aesthetics
Functions
 Observe the aesthetics of the product
ix. Main chain: Product handling and storage
• Value analysis of trolley
Functions
 Buy trolley for transporting products
 Fabricate manual trolleys
• Value analysis of store room
Functions
 Build store room for storing products
 Use kaizen principles to partition the working area and prepare store room
 Rent store room for storing products
• Value analysis of shelf
Functions
 Buy shelf
 Making shelf
• Value analysis of packaging
Functions
 Prepare packaging material
x. Main chain: Display and supplying
• Value analysis of display space and board

35
 Functions
 Prepare display space
 Rent display space
 Prepare board
• Value analysis of promotion
Functions
 Use different medias
 Prepare bazaar and exhibition
• Value analysis of logistics and transport
Functions
 Buy cars or carts for transporting products
 rent cars or carts for transporting products

4.2.3 Characteristics of Inputs and Supplies

The inputs (raw materials) mostly used for art metal manufacturing by the enterprises in the
study were Mild steel Sheet metal, aluminum sheet metal and mild steel round bars.
Additionally, manufacturing enterprises use semi-finished art metal products like; Flowers,
tendons (s shapes), diamond shapes, zigzags, wheat shape, leaf shapes, strawberry shapes, and
circular shapes are few among many types of semi finished art metal products.
The analysis showed that all 100%of the respondents get their inputs from local suppliers. The
questionnaires also distributed to these suppliers in order to get the reason why the suppliers
works in this field of trading. The analysis showed that 80% of the respondents gave a reason
that “there is a high demand of art metal in the market”. On the other hand, all the enterprises
think and give reasons as there is high customer demand in the market.
The market condition is also necessary to analyze the value chain and to interpret forecast the
demand of art metal market. From the distributed questioners, 100% of the supplier shows there
is a strong demand and it is increasing. The other investigated actors (enterprises) 100%
responded that the market demand is increasing.
Table 2.1 Respondent percentage on market demand

Respondents As-Is To Be
Suppliers 80 % high demand 100% increasing
enterprises 100 % high demand 100% increasing

36
 Table 4.2 Comparative value Chain Analysis (Metal –art production)

Parameters
Value chain
Variety and quantity Quality Cost Time
1. Marketing
and Market As Is To Be As Is To Be As Is To Be As Is To Be
survey
1.1 Receiving low Based on Clear order and Cost free Time
order customer full information bounded
demand from a
customer
1.2 Survey No A well No Knowledgeable Effective On time
team organized and skillful survey
team
1.3 Demand No Highly No Tangible No Effective No
Forecasting needed forecast
2. Material
requirement
As Is To Be As Is To Be As Is To Be As Is To Be
Planning
(MRP)
2.1 Identifying Low well Set standard on Well Respect
Potential organized purchased informed negotiated
suppliers information items decision Deadline
on potential for better
suppliers price
2.2 Preparing No For each Well outlined Cost Minimum
Master product and production effective Production
Production production schedule and based time schedule
Scheduling ( process on profit
MPS) maximizat
ion
2.3 Inventory No Effective Well Cost Twice a year
control Inventory documented effective
for each
product
3. Detail
As Is To Be As Is To Be As Is To Be As Is To Be
design
3.1 customer Low Consult the Satisfied Low cost Meet
based product customers customer product Deadline
development for their developm
interest ent
3.2 Designing Low Enough Well designed Cost Must be done
necessary tools number of tools & effective before the
and equipments tools and equipments production

37
 equipments schedule
started
3.3 Preparing Low Standard Full Will Must be done
detail drawing working information minimum before the
drawing working cost and production
Should be drawing maximize schedule
prepared profit started

3.4 Preparing Low Standard Full Will Must be

assembly assembly information minimum before the
drawing drawing assembly cost and production
Should be drawing maximum schedule
prepared profit started

3.5 Preparing Proper Standard Cost On time

material material procedure effective selection
selection should be should be
selected followed to
ensure quality
4. Raw
materials and As Is To Be As Is To Be As Is To Be As Is To Be
inputs
4.1 for No Enough raw As per the Cost On time
production of material and standard effective delivery
tools and inputs for requirement
equipment tools and
equipments
production
4.2 for art metal No Enough raw As per the Cost On time
products material and standard effective delivery
inputs in
stock
5. Identifying
Production As Is To Be As Is To Be As Is To Be As Is To Be
process
5.1 selecting Appropriate Standard Cost Less
appropriate manufacturi manufacturing effective production
manufacturing ng process procedure time
process should be should be
selected for followed to
each product ensure quality
5.2 Preparing For each Well outlined Cost With
production product and production effective Minimum
process plan production process plan and based Production

38
 process on profit process time
maximizat
ion
5.3 preparing For each Well outlined Cost With
product tree product product tree effective Minimum
diagram diagram and based Production
on profit process time
maximizat
ion
6. preparing
tools,
As Is To Be As Is To Be As Is To Be As Is To Be
equipments
and machines
6.1 measuring Low Enough High accuracy Cost Less
& layout tools measuring and precision effective measuring
tools measuring tools time
6.2 rolling Able to roll High precision Rolling Fast
machine different and production machine
size plate capacity with
and sheet Minimum
metal cost
6.3 press Able to High precision Pressing Fast
machine and press and production machine
dies different capacity with
size plate Minimum
and sheet cost
metal
6.4 Power Able to cut High precision Power Fast
hacksaw different and production hacksaw
size plate capacity machine
and sheet with
metal Minimum
cost
6.5 Shearing Able to High precision shearing Fast
machine shear and production machine
different capacity with
size plate Minimum
and sheet cost
metal
6.6 bending Able to High precision bending Fast
Machine bend and production machine
different capacity with
size plate Minimum
and sheet cost

39
 metal
6.7 milling Versatile High precision milling Fast
machine milling and production machine
machine capacity with
Minimum
cost
6.8 Welding Able to roll High precision welding Fast
machine different and production machine
size plate capacity with
and sheet Minimum
metal cost
6.9 Drilling Able to drill High precision drilling Fast
machine different and production machine
size metal capacity with
Minimum
cost
6.10 Grinding Enough High precision grinding Fast
machine number of and capacity machine
grinding with
machine Minimum
cost
6.11 metal At least one High thermal Minimum Fast
melting furnace metal capacity cost
melting
furnace
6.12 Twisting Able to High precision Twisting Fast
machine twist and production machine
different capacity with
size plate Minimum
and sheet cost
metal
7. production
As Is To Be As Is To Be As Is To Be As Is To Be
operation
7.1 reading and Knowledgea Knowledgeable Will Reading and
interpreting ble and and skillful in minimum analyzing
drawings skillful in engineering cost and with short
engineering drawing maximize period of time
drawing reading and profit
employees interpretation
7.2 measuring Low Enough High accuracy Cost Less
and layout measuring and precise effective measuring
tools measurement time
7.3 Cutting Well planed High accuracy Cost Minimum
cutting and precision effective cutting

40
 process cutting process process time
7.4 Joining Well planed High accuracy Cost Minimum
Process joining and precision effective joining
process joining process process time
7.5 metal Well planed High accuracy Cost Minimum
removal metal and precision effective metal
removing metal removing removing
process process process time
7.6 forming Well High accuracy Cost Minimum
process planedformi and precision effective forming
ng process forming process time
process
7.8 casting Well planed High accuracy Cost Minimum
process casting and precision effective casting
process casting process process time
7.9 grinding Well planed High accuracy Cost Minimum
and finishing grinding and precision effective grinding
process grinding process time
process
7.10 Painting Well planed High accuracy Cost Minimum
painting and precision effective painting
operation painting operation
operation time
8. Quality
As Is To Be As Is To Be As Is To Be As Is To Be
Control
8.1 checking Use Produce with Cost Shortest time
Dimension different Accurate effective
dimension dimension
tools
8.2 checking Use Produce with Cost Shortest time
surface finish different Accurate effective
criteria surface finish
depend on
the product
8.3 Checking Use Produce with Cost Shortest time
Aesthetics different attractive effective
criteria product depend
depend on on customer
customer demand
9. product
handling and As Is To Be As Is To Be As Is To Be As Is To Be
storage
9.1 trolley enough Easily Cost Fast
trolley operating effective

41
 proportional trolley
to
production
capacity
9.2 store room Enough Properly
storage utilized space
space by kaizen
principle
9.3 shelf Enough Apply kaizen
shelf space principle
9.4 packaging Depend on Safe packaging Low cost Fast
the product
10. Display
As Is To Be As Is To Be As Is To Be As Is To Be
and supplying
10.1 display Display Visible and Cost Appropriate
board board for attractive for effective time for
each product customers display
variety
10.2 logistics Well Safe product Low cost Meet deadline
and organized handling
transportation logistic team logistic system

42
 4.3 Identification of Gaps/Constraints

The following TO-BE value map has explored the main chain and sub-chain gaps and constraints which were existed in the AS-IS
metal art production method.
Marketing Raw Identifying Preparing Product
Detail Tools, Quality Display &
& Market MRP Material production equipment &
Production handling
design Control Supplying
Survey Input process machines and Storage

Receiving Identifying Customer For Selecting Measuring & Reading & Checking
InterpretingDra
Trolley Display
Order potential based Product production appropriate layout tools
wing Dimension space and
suppliers Development of tools Manufacturing
process Rolling Store board
and
Survey Machine Measuring& Checking
Team Preparing Designing equipment
surface
room
MPS necessary tools Preparing Press machine laying out
finish Promotion
Demand
and Equipment
For
production with dies Shelf
Forecasting Inventory production
process plan Cutting
control Preparing Shearing Checking
of products Packaging logistics&
detail drawing Preparing machine Aesthetics transport
product Tree Joining
power Process
diagram
Preparing hacksaw
assembly drawing Metal
Bending
Machine Removal
Process
Material Milling
selection Machine Forming
Process
Welding
Machine
Casting
Drilling Process
Machine

Grinding Grinding &

Machine Finishing

Figure 4.3 Identification of Gaps Value Chain Metal Melting

Furnace Painting
Twisting
Machine
43
 4.4 Cause and Effect Analysis
Table 4.3 Cause and Effect Analysis

Value chain
No Contraints /Gaps Causes Effects Solution Responsiblesectors
activities
1 Marketing and Market * Survey team * Lack of experienced * Market decline, * Employing marketing * EDC, TVETs,
Survey * Demand forecasting employee * Incompetent in personnel, Trade & Industry
* lack of entrepreneur market share * Short term training on bureaus,
skill * Unable to meet the entrepreneur skill, Universities,
* Lack of demand demand of the market * Science and
forecasting methods * * Technology
* * * Institute

2 MRP (Material * Identifying potential suppliers * Information gap * Wastage of * Training on material * TVETs, KAIZEN
Requirement * Preparing MPS (Master * Lack of training on materials, requirement planning, Institute,
Planning) production scheduling) inventory management * Delay of Production inventory control, Universities,
* Inventory control * Lack of KAIZEN and lead time * Implementing Science and
(Main Chain Gap) application elongation , KAIZEN Technology
* * Unable to create * Institute
* conducive working *
* environment, *
*
3 Detail Design * Consumer based product * Lack of design * lose of * Employing mechanical * Universities,
development concept (Engineering competitiveness in a designer, TVETs, Science
* Designing necessary tools and design), market, * Short term training on and Technology
equipment * lack of adapting to * Decline of customer different CAD softwares, Institute
new technology trends, satisfaction, * Upgrading self skill
* * Outsourcing and and knowledge by
* decline of income browsing internet and,
* *
*

4 Raw Material Input * For production of tools and * Lack of information * lose of * Training on process * Universities,
equipment * Lack of process flow competitiveness in a flow analysis TVETs, Science
analysis market, and Technology

44

5 Identifying Production * Selecting appropriate
Process Manufacturing process
* Preparing production process
(Main Chain Gap) plan
* Preparing product Tree
diagram
6 Preparing tools, * Rolling machine
equipment and * Press machine with dies
machines * Milling machine
* Metal melting Furnace
* Twisting machine
7 Production * Reading and interpreting
drawings
* Casting process
8 Quality Control - -
9 Product Handling & * Trolley
Storage * Store room
* Lack of knowledge * Decline of customer Institute
and skill satisfaction,
* Outsourcing and
decline of income
*
* Lack of knowledge in * decline of product * Employing production * Universities,
production process and quality, process planner, TVETs, Science
control * Longer production * Giving Short term and Technology
time, training production Institute
* wastage of Material planning and process
and energy, control.
* lose of
competitiveness in a
market
* Lack of finance, * decline of product * Searching for loan * OMO
* Lack of machinery quality, organizations, microfinance,
suppliers, * Longer production * Short term training on DEBUB Capital,
* Lack of machine time, different CAD softwares, NGOs,
operating skill, * wastage of Material * Short term training on Universities,
* Lack of designing and energy different machine TVETs, Science
and producing different * lose of operations, and Technology
dies, competitiveness in a * Experience sharing Institute,
* Lack of designing market, with similar enterprises
and producing different * Producing less *
jigs and Fixtures. product varieties
* Lack of knowledge * Poor product design * Short term training on * Universities,
and skill in and quality, engineering drawing TVETs, Science
Engineering drawing , * Outsourcing and skill, and Technology
* Lack of knowledge decline of income, * Short term training on Institute
and skill in Metal * lose of casting process, (i.e.,
casting process, competitiveness in a pattern design, mould
* market preparation, melting,
pouring, etc)
- - -
* Lack of space * poor product * Giving training on * Universities,
utilization, handling management, material management TVETs, Science
45
 * Shelf * Lack of KAIZEN (product damage, system, and Technology
(Main Chain Gap) * Packaging application waste of time and * Applying KAIZEN Institute
energy) *

10 Display and * Display space and board, * Lack of space * Lack of market * Promoting using * OMO
Supplying * Promotion, utilization, share, different medias, (TV, microfinance,
* Logistics and transport * Lack of KAIZEN * Decline of sales, Radio, Megazine and DEBUB Capital,
(Main Chain Gap) application * Lack of customer News paper, Business NGOs,
* Lack of Finance satisfaction, Card and Social media) Universities,
* Poor time * poor product * Searching for loan TVETs, Science
management handling management, organizations, and Technology
* Lack of (product damage, * Institute,
entrepreneurship skill waste of time and
(promotion method) energy)
* *

46
4.5 Technology Identification, Categorization and Prioritization
4.5.1 Technology Identification

Technology identification is the process of identifying technologies from the benchmark. If the
technology in the benchmark is somehow complicated and sophisticated with respect to the
country`s potential and focus, it is possible to look for other additional alternative technologies
(equivalent technology from other best practices) without compromising the quality and
efficiency.

In order to mitigate the above constraints, adoptions of different technologies are very important. So we
recommend the following technologies to mitigate constraints metal art production as shown in table 4.1
below.

4.5.2 Technology Categorization

The process of segregating identified technologies in to four categories of technologies namely

Techno ware, Human ware, Info ware and Orga ware. So the above technologies that we have
recommended to mitigate metal art production constraints are grouped in to four categories as
shown below in table 4.4.

47
Table 4.4 Identified Technologies for each value chains
MRP Product
Identifying
(Material Raw Preparing tools, Handling Display and
Marketing and Production Quality
Requirement Detail Design Material equipment and Production & Supplying
Market Survey Process Control
Planning) Input machines Storage

Market research Computer Problem Sheet Selecting 1. Tools and Cutting Checking the Cart Display board
identifications metal appropriate equipment process dimension as
and recognition manufacturing per the
of need process design
Market linkage MRP software Problem RHS Preparing Rulers Casting Checking Trolley Promotion
definition and production process surface using different
conceptualization process plan finish media
(observation) channels
Export market Bin card Geometric Flat iron Preparing Caliper Shaping Checking Store Transportation
modeling (3D production process aesthetics room
analysis) tree diagram
Promotion of the Engineering Steel plate Snip Twisting Straightness, Shelf
product analysis and process flatness,
optimizations squareness,
parallelism,
roundness
Art metal bazaars Prototype Aluminum hack saw Forming Cabinet
and production development process
Electrode Scriber Joining Conveyor
process
Drill bit Hammer Finishing Metal
process boxes
Grinder Vice Packing
disc materials
Cutter disc Anvil
Hack saw Clumps
blade
Paints Mallet hammer
Brush Wire brush
Sand Rivet gun
48
paper
Brushing Tap rule
disc
Molding Tongs
sand
Wood Wire brush
Rivet Dividers
Punch
Jigs and fixture
Dies
Ladle
2. Machines
Welding
machines:
(MIG/MAG,
TIG, SMAW,
Gas welding)
Bending machine
Shearing
machine(manual
and electrical)
Power hack saw
Grinding machine
Press machine
Rolling machine
Milling machine
Drilling machine
Metal melting
furnace
Forging machine
Twisting machine

49
 Table 4.5 Technology Categorization

Technology Intervention
Values Gap/Constraints
Technoware Human Ware Infoware Orgaware
* Identifying target * Market Research templates,
market, * Demand forecasting
* Understanding strength techniques/methods,
and weakness of
competitors,
* Developing pricing
strategy,
* Marketing
* Researching similar
Marketing and personnel,
* Survey team *Vehicle/motorbike products,
* Preferably
Market Survey * Demand forecasting for market survey * Identifying best location
Employing
for products
women)
* Survey of buyers' studies
(Delphi method),
* Sales Force polling or
Expert opinion polls,
* Analysis of Time series
& Trend projections,
* Judgmental approach
* Bill of Materials, * Product Tree diagram,
* Inventory data, * Establishing Gross
* Identifying potential
MRP (Material suppliers * Computer, * Supplier Lead time, requirement,
* Production
Requirement * Preparing MPS (Master * Printer, * Customer order, * Determining net requirement
Planning) production scheduling) material planner
* BOM software * Forecasted demand ((net requirement= (gross
* Inventory control
requirement-(scheduled
receipts + on hand inventory) ,

50
 * Time phase net requirements,
* Determine the planned order
releases.
* Multiview drawing * Problem identification and
* Computer, * Isometric/axonometric recognition of need,
* CAD Softwares * Mechanical drawing * Problem definition and
* Consumer based product (Auto CAD, Solid Engineering * Customer interest, conceptualization,
Detail Design development
work, Master cam, Designer, * Available raw * Geometric modeling,
* Designing necessary
tools and equipment Sketch up) * Manufacturing materials/inventory data * Engineering analysis and
* Printer, Engineer * Available Machine optimization,
* Paper (Ao-A1) capacity, * Prototype development
* Production process,
* For production of tools * Vernier Caliper, * Mechanical or * Mechanical Properties, * Raw material Specification
and equipment * Micrometer, Manufacturing * Dimension, document,
Raw Material
* Tape rule, Engineer, * Squareness * Bill of material template,
Input
* Try-square * Material * Straightness * Technical evaluation criteria
* Steel rule Engineer
* Selecting appropriate * Computers, * Manufacturing * Process and sequence, * Study the overall shape of the
Manufacturing process * Printers, Engineer * Equipment selection, part/product,
* Preparing production
process plan * * Production * Methods (hand & body * Thoroughly study the
* Preparing product Tree manager, motion, workplace layout, drawing,
diagram * material handling devices), * Determining the best raw
Identifying * Production cost, material shape to use,
Production
Process * Production process plan * Identifying datum surfaces,
chart, * Selecting machines for each
setup,
* Sequencing the operation,
* Selecting tools for each
operation,

51
 * Studying the overall shape of
the part/product,
* Preparing the final process
plan document.
* Rolling machine * Spare part, * Mechanical * Specification ranges, * Providing Catalogue,
Preparing tools, * Press machine with dies * Standard Engineer, * Technical specification * Operational manual,
equipment and
* Milling machine
* Metal melting Furnace accessories, * Manufacturing qualification, * Maintenance Manual,
machines * Twisting machine Engineer * Installation, Commissioning
and testing,
* Reading and interpreting * Metal melting * Manufacturing * Three principal view * Projection method,
drawings furnace, Engineer, drawings, * First angle projection
* Casting process
Production
* Moulding tools and * Mechanical * Assembly drawings, method,
equipment, Design Engineer, * Design of Pattern * Third angle projection
* Moulding sand, * Pattern maker method,
* Metal to be melted
Quality Control -
* Trolley * Spare part, * Inventory * Product category, * Standard Inventory control
* Store room * Standard manager, * Products name list, template
Product * Shelf accessories, * *
Handling & * Packaging
Storage * KAIZEN
application
*
* Display space and board, * Product displaying * Sales * Printed Product Picture, * Home-to-home delivery,
* Promotion, board, personnel, * Photo simulation of * Promotion channels (TV,
Display and * Logistics and transport * Lorry Vehicle * Finance product types, Radio, Social media, business
Supplying personnel,
card, etc)
* Logistics
personnel

52
4.5.3 Technology Prioritization

The value analysis of technology constraints or gaps are collected, and ranked based on the
following parameters.
Table 4.6 Parameters for Technology Prioritization

No
Parameters

Marketability
1
Attractiveness to potential buyers of the product and services
Profitability
2
Able to yield a profit or financial gain
Capability and Usefulness
3
Able to be used for a practical purpose or in several ways
Functionality
4
The quality of being suited to serve a purpose well
Import Substitution
5
Able to replace the product imported from outside of the country
Feasibility
6
State or degree of being easily or conveniently done within MSE‟s level
Adaptability
7
Able to adjust into a local condition
Potential Impact to the MSE
8
Able to strengthen the linkages with Micro Small and Medium Enterprises
Woman Empowerment
9
Able to offer equal rights to men and women
Employment
10 Ability to utilize available manpower including persons with disability and can
reduce the unemployment rate in the country

Hence, based on the above Parameters for technology prioritization; the major gaps of the value
chain are described below in table 4.7 in their degree of critical order.

53
 Table 4.7 Degree of critical order for technology prioritization
Main chain based on Rank order Over all rank of Rank
No Sub chain Over problem/gap prioritize
their rank of sub chain sub chain Over all
Marketing and Market Survey team 1st 1st Survey team 1st
1
Survey Demand forecasting 2nd 2nd Demand forecasting 2nd
Identifying potential suppliers 3rd 3rd Identifying potential suppliers 3rd
Preparing MPS (Master 2nd
MRP (Material 5th Inventory control 4th
2 production scheduling)
Requirement Planning)
Inventory control 1st Preparing MPS (Master
4th 5th
production scheduling)
Consumer based product 1st 6th Consumer based product
6th
Detail Design
development development
3 Designing necessary tools and 2nd Designing necessary tools and
7th 7th
equipment equipment
4 Raw Material Input For production of tools and 1st 8th For production of tools and
8th
equipment equipment
Selecting appropriate 1st 9th Selecting appropriate
9th
Manufacturing process Manufacturing process
5 Identifying Production Preparing production process 3rd 11th Preparing product Tree diagram
10th
Process plan
Preparing product Tree 2nd 10th Preparing production process
11th
diagram plan
Rolling machine 1st 12th Rolling machine 12th
Preparing tools, equipment
Press machine with dies 3rd 14th Twisting machine 13th
6 Milling machine 5th 16th Press machine with dies 14th
and machines
Metal melting Furnace 4th 15th Metal melting Furnace 15th
Twisting machine 2nd 13th Milling machine 16th
Reading and interpreting 1st 17th Reading and interpreting
17th
7 Production drawings drawings
Casting process 2nd 18th Casting process 18th
8 Quality Control - - - - -

54
 Trolley 4th 22nd Store room 19th
Product Handling & Store room 1st 19th Shelf 20th
9 Storage Shelf 2nd 20th Packaging 21st
Packaging 3rd 21st Trolley 22nd
Display space and board, 2nd 24th Promotion, 23rd
10 Display and Supplying Promotion, 1st 23rd Display space and board, 24th
Logistics and transport 3rd 25th Logistics and transport 25th

55
4.6. Role of Actors and Stakeholders in Art metal production
In implementing of art metal production value chain there are different value chain actors and
stakeholders and have different contributions.

4.6.1 Role of Actors

i. Suppliers

Supplier delivers input materials to the market or to art metal manufacturers in a timely and cost
effective manner.

ii. Producers

Producers are the main actors and manufacturers that produce art metals. These art metal
manufacturers are micro, small, medium or high industry level enterprises.

iii. Whole sellers / Traders

These actors provide/sells the end products or art metal from a manufacturer to the market/end
users.

iv. Users/ consumers/ end users

End users are the last actors who uses artesian (art metal) products.

4.6.2 Role of value chain stakeholders

i. TVET Collages

The bureau of TVET perform value chain analysis, Provide short training based on their gaps/
kaizen, entrepreneur skill, and develop different technologies.

ii. Universities

Universities play an important role in research and technology transfer that help to drive
manufacturing sectors. Specifically they providein study, development and implementation of
value chain analysis for art metal production.

iii. Loan organization /Financial Resources

These organizations give loan services the extent of financial resources and their timely
availability is very critical in building competitiveness of the cluster units. While designing and

56
offering support schemes, guidelines based on Micro and Small and Medium Enterprises
(MSME). Such loans should be linked to productivity related investments.

iv. Bureau of Micro finance and Small enterprises

Those sectors Organize cooperatives facilitate financial service, preparing working place /sheds.

v. Entrepreneurship Development Center (EDC)

This sector gives entrepreneurship training for micro, small and medium enterprises to increase
their entrepreneur skills.

vi. NGOs

The term NGO stands for non-governmental organizations, and it includes private voluntary
organizations, civil society, and nonprofit organizations. They provide funds for different
functions.

vii. KAIZEN institute

Kaizen institute gives training about kaizen principles for different sectors.

viii. SNNPR Science and Technology Institute

This institute makes integration between the art metal manufacturers to other stake holders like
TVETS, loan sectors, universities and other governmental offices. Also provide in study,
development, technology development and transfer, research and implementation of value chain
analysis for art metal production.

57
 Chapter Five

Conclusion and Recommendation

5.1 Conclusion
The purpose of this Value chain study was to assess metal products manufacturing sector in
Hawassa City and identify potential products within the manufacturing sector which could be
growth enhancing. Based on the value chain selection criteria; metal art product were identified
as potential product. The study was further aimed at identifying factors which constrain the
growth of the metal art products. Finally, it has investigated possible role of actors, stakeholders
and technology interventions wherever necessary to increase the metal art manufacturing output.

A number of constraints facing the Hawassa's metal art product manufacturing were identified in
this paper and the key findings are marketing and demand forecasting, material requirement
planning, identification of different production processes, product handling and storage, and
display and supply which in turn affects the productivity and competitiveness in a market.

To alleviate constraints facing in metal art manufacturing and to propose the best bench mark, a
number of related literature review has been carried out. As a result, Haitian, Indian, and
Namibian metal art manufacturers were reviewed and compared it with Hawassa's AS-IS metal
art manufactures. Following the review, the collective approach of the three literatures has been
customized and final bench mark has been drawn.

In order to carry out the value chain analysis, a number of data analysis methods were
implemented. To mention few: mapping the AS-IS value chain, mapping the bench mark value
chain (To Be), Cause and effect analysis are the major ones.

Generally, following the analysis result, the study figured out that the bench mark (To Be) has
depicted a lot of gaps/constraints with its possible solutions and the corresponding actors and
stakeholders.

58
5.2 Recommendation

From the study undertaken in producing this document, it is evident that all value chain exercises
start with a thorough understanding of what the customer values, the value creating activities and
where these are produced within the complex structure of collaborating companies.
The metal art enterprises are facing major problems in various value chain of domestic
levels as well as international level. The government is not focusing on the market of
metal art products to have a better position in the international market. The government
may provide the financial, skill training and infrastructure facilities to metal art producers. The
government also has to arrange workshops and seminars for the artisans to learn how to penetrate
in to the market, remain competitive and productive in the sector.

The following measures are recommended to government, stakeholders and actors to tackle the
identified gaps and constraints in the value chain:
 Facilitate the infrastructure for metal art industry,
 Proper assistance in the promotion and marketing of metal art products,
 Arrange promotional activities like trade shows, exhibitions and metal art Products
Expo,
 It is recommended that the metal art workers should be trained to make use of
latest tools, equipments and machines in the manufacturing of all metal art products,
 Facilitate financial resources and their timely availability and response are very critical in
building competitiveness of metal art producers,
 Provide appropriate marketing training and education on development of high end
products,
 Recruitment and development of adequate and quality technical, managerial and support
man power under suitable scheme on contractual basis or consulting basis,
 Enhance logistics infrastructure and distribution services by forming consortium of unit
holders, distribution and transport service providers.

59
5.2.1 Future work

The study was confined to a limited geographical area of SNNPR, in Hawassa city; the
future research may cover a wider geographical area of the region and the country as a whole.

The value chain study was carried out and considered the general metal art products and the
study team suggests that further study can be done by segregating metal art products in to
different categories.

60
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In Hitt, M., Amit,R., Lucier, C. & Nixon, R. (eds). Creating value: winners in the new
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Hugo,W., Badenhorst-Weiss, J. & van Biljon, E. 2004. Supply chain management: Logistic CS
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Kaplinsky, R. & Morris, M. 2002. A handbook/or value chain research.

Lysons, K. 2000. Purchasing and supply chain management. England. Pearson Education.

Porter, M. 2005. Competitive advantage: creating and sustaining performance. London.

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Asmamaw (2010), “Ethiopian Basic Metals and Engineering and technology challenges”.

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http://www.ehow.com/about_5435976_history-metal-art.htm

http://artsofthetimes.hubpages.com/hub/metal-art-history-of-decorative-metal-works

61
 Appendices

Appendix 1:

ሇጥቃቅንናአነስተኛኢንተርፕራይዝየተዘጋጀመጠይቅ

ይህ መጠይቅ የተዘጋጀዉ በአካባቢያችን በቀሊለ ሉመረት ብልም ሇበርካታ ዜጎች ስራ

መፍጠር ሲችሌ ነገር ግን በተሇያዩ ምክንያቶች በሚፈሇገዉ ደረጃ ሳያድግ የቆየዉን
የሜታሌ አርተስ ምርት ሊይ የሚስተዋሇውን የጥራት፣ የአቅርቦት የምርታማነት ችግሮችን
ሇማጥናትን የመፍትሔ ሀሳብ ማቅረብ ነዉ፡፡ ስሇሆነም ይህ መጠይቅ በትክክሌ መሌተዉ
እንዲሰጡን በትህትና እንጠይቃሇን

የኢንተርፕራይዙስም ___________________________________

አድራሻ : _______________ ክሊስተር

መጠይቁን የሞሊዉ ሰዉ የስራ ድረሻ _________________________________

የትምህርት ደረጃ ሙያ የስራ ሌምድ

የስሌክቁጥር:___________________________________

የሰራተኛ ብዛት:

1. በዚህ የስራ ዘርፍ / ጌጠኛ ብረት ምርት ሇማምረት የፈሇጉበትን ምክንያት

በያብራሩሌን?
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2. በዚህ ስራ ሊይ ሇምን የህሌ ጊዜ ሰርተዋሌ?
___________________________________
3. የምርቱ በገበያዉ ያሇዉ ተፈሊጊነት ምን ይመስሊሌ?
ሀ. እያደገ ነዉ
ሇ. እየቀነሰ ነዉ
4. ስራዎን በምን ያህሌ ካፒታሌ ጀመሩ ?

62
5. የካፒታሌ ምንጭዎ ከየት ነው?
ሀ. ከቤተሰብ ሇ. ከአባሊት መዋጮ ሐ. ከአበዳሪ ተቋማት
6. ሇተራ ቁጥር ጥያቄ 5 መሌስዎ ከአበዳሪ ተቋማት ከሆነ ስራዎትን ሇማስፋፋት
የሚያስፈሌገዎትን በቂ ብር ሉያበድረዎት ይችሊሌን?
ሀ. ሉያበድረኝ ይችሊሌ ሇ. ሉያበድረኝ አይችሌም
7. ኢንተርፕራይዙ አሁን እየሰራበት የለበት ______________ ካሬ ሜ የማምረቻ
ቦታ በቂ ነዉ ብሇዉ ያምናለ?
ሀ፣ አምናሇዉ ሇ. አሊምንም
8. ሇተራ ቁጥር ጥያቄ 7 መሌስዎ አሊምንም ከሆነ ስንት ካሬ ሜ ቢሆን በቂ ነዉ
ይሊለ?_____________________ምክንያትዎን ቢያብራሩ __________________
_______________________________________________________________
_________________________________________________________
9. የምታመርቷቸዉን የጌጣጌጥ አይነቶች ቢጠቅሱሌን?
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10. ከሊይ ከጠቀሷቸዉ የምርት አይነቶች በብዛት የምታመርቷቸዉ የትኞቹን ነው?
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11. ከያንዳንዱ የምርት አይነት በቀን ምን ያህሌ ምርት ታመርታሊችሁ?
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12. ምረቶቹን ሇማምረት ምን አይነት ጥሬ እቃዎች ትጠቀማሊችሁ?

 አለሚኒየም መዳብ  ማይሌድስቲሌ  እንጨት

 ላልች ካለ ይገሇጽ ------------------------------

13. ሇጌጣጌጥ ምርት የምትጠቀሙባቸውን ጥሬ እቃዎች ከየት ታገኛሊችሁ?

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63
14. ጌጣጌጡን ሇማምረት ምን ዓይነት የማምረት ሂደት ትጠቀማሊችሁ?
15.  መጠምዘዝ  ማጠፍ  ማጉበጥ  መብሳት  ላልች ካለይገሇጹ

_______________________________________________________________
ከአንድ በሊይ መምረጥ ይቻሊሌ
16. ከሊይ የተጠቀሱትን ስራዎች ሇማከናወን ምን ዓይነት መሳሪያዎች ትጠቀማሊችሁ?
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17. ከሊይ የጠቀሷቸውን የመስሪያ መሳሪያዎች ከየት ታገኛሊችሁ?
ሀ. የሀገር ዉስጥ ሇ. ከዉጭ ሀገር ሐ. በራሳችሁ የተሰሩ
18. የመስሪያ መሳሪያዎቻችሁ የማምረት አቅም ምን ይመስሊሌ?
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19. በስራ ሂደታችሁ የካይዘን አሰራርን ትተገብራሊችሁ?
ሀ. እንተገብራሇን ሇ. አንተገብርም
20. ሇጥያቄ ቁጥር 19 መሌሳችሁ ሀ ከሆነ ሇስራችሁ ምን አስተዋጽኦ አሇዉ
ቢያብራሩሌን?
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21. ሇጥያቄ ቁጥር 19 መሌሳችሁ ሇ ከሆነ ሇምን አሌተገበራችሁም?
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22. ምርታችሁን ሇላልች ተጠቃሚዎች ትሸጣሊችሁ ወይ?
ሀ.አዎ እንሸጣሇን ሇ. አይ አንሸጥም
23. አንሸጥም ካለ ምክንያቱን በያብራሩ?
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24. ሇምርቶቻችሁ የምርት ዲዛይን (ንድፍ) ያዘጋጃለ?

ሀ. አዘጋጃሇው ሇ. አሊዘጋጅም

64
 25. የማታዘጋጁ ከሆነ ምክንያቶቻችሁን ብታብራሩሌን?

_______________________________________________________________
_____________________________________________________________

26. የምርት ዲዛይን በማን ይወሰናሌ?

ሀ. በደንበኛው ፍሊጎት ሇ. በናንተ
27. ደንበኞቻችሁ በምረታችሁ ምን ያህሌ ደስተኛ ናቸዉ ብሊችሁ ታስባሊችሁ?
ሀ. ከፍተኛ ሐ. ዝቅተኛ
28. ዝቅተኛ ካለ ምክንያቱን ቢጠቅሱ?
_______________________________________________________________
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29. ማጠናቀቂያ ስራዎችን እንዴት ባሇ ሁኔታ /መንገድ/ ያከናዉናለ ?

_______________________________________________________________
_____________________________________________________________

30. የምርት ጥራት የሚያረጋግጡበት መንገድ ምንድን ነው? ቢያብራሩሌን?

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31. ምን ዓይነት ጌጠኛ ብረቶችን ከውጭ ትገዛሊችሁ?

_______________________________________________________________
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32. በተራ ቁጥር 31 የዘረዘራችኋቸውን ጌጠኛ ብረቶች በናንተ አቅም ማምረት ሇምን
አሌሞከራችሁም?
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33. ከባሇ ድረሻ አካሊት የሚደረግሊችሁ ድጋፍ ካሇ በያስረዱን?

____________________________________________________________________
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Appendix 2:
B.ሇብረታብረትጥሬአቃአቅራቢዎችየተዘጋጀመጠይቅ፡፡

ይህ መጠይቅ የተዘጋጀዉ በአካባቢያችን በቀሊለ ሉመረት ብልም ሇበርካታ ዜጎች ስራ

መፍጠር ሲችሌ ነገር ግን በተሇያዩ ምክንያቶች በሚፈሇገዉ ደረጃ ሳያድግ የቆየዉን
የሜታሌ አርተስ ምርት ሊይ የሚስተዋሇውን የጥራት፣ የአቅርቦት የምርታማነት ችግሮችን
ሇማጥናትን የመፍትሔ ሀሳብ ማቅረብ ነዉ፡፡ ስሇሆነም ይህ መጠይቅ በትክክሌ ሞሌተዉ
እንዲሰጡን በትህትና እንጠይቃሇን፡፡

የኢንተርፕራይዙስም:

አድራሻ :

የስሌክቁጥር:

1. የጌጠኛ ብረታብረት ንግድ ሊይ ሇመሰማራት ምክንያት የሆነወትን በጠቅሱሌን

____________________________________________________________.
____________________________________________________________.
2. ጌጠኛ ብረታብረት በመነገድ ምን ያህሌ አመት ሰሩ
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3. በርስዎ እይታ ይህ ምርት በገበያዉ ያሇዉ እድገት እንዴት ይረዱታሌ

ሀ. እያደገ ነዉ ሇ. እየቀነሰ ነዉ

4. ስሇማደጉም ይሁን ስሇ መቀነሱ ምክንያቱ ምነድን ነዉ ብሇዉ ያስባለ

____________________________________________________________.
____________________________________________________________.
5. ጌጠኛ ብረቶችን የምታገኙት ከየት ነዉ
ሀ. ከሀገር ውስጥ አምራቾች ሇ. ከዉጪ ሀገር ሐ. ከሁሇቱም
6. ሇተራ ቁጥር 5 መሌስዎ ሇ ከሆነ ሇምን
____________________________________________________________.
7. ሇተራ ቁጥር 5 መሌስዎ ሐ ከሆነ ደንበበኞችዎ የትኛዉን በብዛት ይወስዳለ
_________________________________ ሇምን ይህንን ምርት እንደሚመርጡት
ቢያብራሩሌን ___________________________________

66
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8. ደንበኞቻችሁ በምታቀረቡሊቸዉ የጌጠኛ ብረት አማራጭ ዲዛይን ምን ያክሌ
ደስተኞች ናቸዉ
ሀ. ከፍተኛ ሐ. ዝቅተኛ
9. ዝቅተኛ ካለ ምን መደረግ አሇበት ይሊለ
_______________________________________________________________
_______________________________________________________________
34. በብዛት የምትይዟቸዉ ጌጠኛ ብረት አይነቶች ቢጠቅሱሌን
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10. ደንበኞቻችሁ በተደጋጋሚ የሚገዙት የጌጠኛ ብረት ዓይነት የትኛውን ነዉ?
_______________________________________________________________
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11. የብረት ጌጣጌጦቹን በብዛት የሚገዟችሁ እነማን ናቸው?
ሀ. በአነስተኛ ደረጃ ያለ የብረታብረት አምራቾች
ሇ. በከፍተኛ ደረጃ ያለ የብረታብረት አምራቾች
ሐ. ግሇሰቦች
12. ሇጥያቄ 11መሌስዎ ምክንያቱ ምንድር ነዉ ይሊለ ________________________
_______________________________________________________________
_________________________________
13. በጌጠኛ ብረት ገበያ ሊይ የሚያጋጥሙ ችግሮችን ቢያብራሩሌን

_______________________________________________________________

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