A research paper submitted to in the Department of leather engineering, School of

textile in partial fulfillment of the requirements for the award of the degree of in
footwear technology in wollo University kombolcha institute of technology

Role of productivity improvement techniques on shoe manufacturing companies: a case

of anbessa shoe share company

By:Ali mamo

Academic Advisor:Mr.desse fetene

WOLLO (KOMBOLCHA), ETHIOPIA

AUGUST 2024 GC
 CHAPTER ONE

INTRODUCTION
This chapter presents an introduction to the study in which various sections have been
produced. The sections include introduction background information to the study area, and
Statement of the problem. Other sections include significance of the study,scope of the study,
limitation of the study, organization of the research report.

21.1 Background information

What is productivity?
Productivity is the measure of the combined efficiency or integrated efficiency of employees,
machines and other devices and equipment‘s, nature of raw material inputs, performance of
the management, and efficiency of the whole production system. Productivity can be computed
and expressed as the ratio of average acceptable output per period by the total costs incurred
through various resources ( Labor, Input material, consumables, power utilized, capital, energy,
material, personnel) consumed in that period. It is nothing but a measure of efficiency of the
integratedsystem consisting of resources like Money, Men, Materials, Machines (4 Ms of an
industry) and time as Dr. Meghan and Dr. Ruchika (2018) explain.2

The global competition has forced business companies to examine their operation for the
purpose of making improvement to their practices. This improvement involves better
continuous improvement and result in higher level of quality. Minimizing defect is very
important for ensuring the quality of products According to Mondal, Hasan, & Islam (2017).
Uddin and Rahman (2014) explain how manufacturing a quality product is mandatory to sustain
in this global competitive market2.

The government of Ethiopia is promoting footwear manufacturing industry to add value to

product and create foreign currency. there are 13 larege mechanized shoe industries in the
country. Anbessa shoe share company factory is one of these industries located in Addis Ababa,
works to meet the vision to be a leader in the footwear manufacturing industry by creating a
dominant firm in the national and international shoe market in the year of 2023. The company
produces various types of shoe models such as Clark shoe, Timberland, Lady Shoe, casual male
etc. The company has productivity related problem due to many factors. 2
There are a lot of productivity related problems in Ethiopian shoe factiries such as ,poor
ergonomics practice, unskilled man power, poor design of shoes regarding style and colour,
rejection of shoes due to defects ,bottle neck and lack of training
1.2 Statement of the problem
Even though there are many problems faced by manufacturing industries productivity is the
major concern. anbessa Shoe share Company is one of the companies facing productivity
problem. In anbessa shoe share Company there are productivity problems such as high amount
of rejection, poor ergonomics practice, bottle neck, lack of training, unskilled man power, and
poor design of shoes regarding style and colour. According to Tilman (2010), the footwear
industry faces serious problems in the processing stages in the production of shoes these
problems have to be identified and given a proper solution in order to increase and improve
productivity else they can absolutely affect the company's productivity.

The study aims to critically examine the main causes of productivity related problems, role of
productivity improvement techniques and suggest solution to increase the productivity of the
company.

1.3 Justification of the study5

Should illustrate why the researcher is conducting the research and whom it shall benefit5

The purpose of this study is to examine the role of productivity improvement techniques in the
Ethiopian shoe factories of anbessa shoe share company. It examines productivity level of
ASSC, the main causes for related problem in ASSC. Also, identifies quality improvement
techniques that the industry applies. The study further, recommend solution to reduce
problems related to quality in the industry.

The shoe manufacturing industry is one of the many economic sectors, which should be given
attention for the development of our country Ethiopia. It is leading industries playing a
significant role in the generation of foreign currency, creating Job opportunity which ultimately
the country utilizes, for developing all the other sector of its economy5.

Productivity improvement is the key for any industry in order to compete and be productive in
today’s competitive market. Despite the importance of the issue there are no researches on the
topic in Ethiopian context, so the researcher is hoping to make a small contributions to studies
in the area. and The study will be helpful for Ethiopian shoe factories to identify the main
causes of productivity related problems so as to take measures on improving their
productivity .The findings may also be used as a source of reference for other researchers.

5
1.4 Objectives:-

1.4.1 General Objective6

The General objective of this research is Investigation of the Role of productivity Improvement
Techniques and the Productivity of shoe factories.

1.4.2 Specific objectives6

Specifically the study tries to address the following key research objectives:

 To describe productivity level of ASSC.

 To investigate respondents perceived reason for the main causes of productivity related
problems In ASSC.
 To assess the main productivity improvement techniques applied in ASSC.
 To examine the role of productivity improvement techniques in productivity of ASSC.
 to suggest possible solutions in order to solve productivity related problems and
increase productivity.

1.4 Research Questions

The study is going to be guided by the following research questions:

1. What is productivity level of ASSC product manufacturing?

2. What are the main productivity related problems in ASSC?
3. What are effective productivity improvement techniques in ASSC?
4. What are the roles of productivity improvement techniques in the productivity of the
company?
5. What are the possible solutions to solve productivity related problems and increase
productivity in ASSC?6
6

1.6 hypothesis

1.7 Conceptual frame work/theoretical frame work

 CHAPTER-TWO
LITERATURE REVIEW

7Introduction
In this chapter the researcher attempts to read and understand different published and
unpublished secondary source which is found from websites used as a guide for this study. We
had recognized these knowledge that we found and we try to list as much as possible.

The Concept of Productivity

Formally defined, productivity is a summary measure of the quantity and quality of work
performance with resource utilization considered. Regardless of the type of production,
economic or political system, the definition of productivity remains the same. Thus, though
productivity may mean different things to different people, the basic concept is always the
relationship between the quality and quantity of goods or service produced and the quantity of
resource used to produce them. It can be measured at the level of the individual, group, or
organization. From a manager’s perspective, productivity in all cases reflect success or failure in
producing goods and services in quantity, of quality, and with a good use of resources. In short
it is the ratio of output value to input value. This concept is expressed in the productivity
equation [1].

Input Value

Productivity = output value

The equation shows the productivity rises, keeping other things constant, when the quantity of
outputs increase, the quality of output increases, and/or the cost of resources (input) utilized
decreases.

The performance of an organization cannot be judged by the increment of the quantity of the
output alone. The output may be raised without an increase in productivity. That means the
rate of the increment of in put cost may be higher or the quality of the output may be decrease.

The concept of productivity is also increasingly linked with quality of output, input, and process
itself. Taking the definition of quality as conformance to requirements of the customer,
productivity decreases as the quality of the output decrease. For example, in 7leather products,
quality means leather without any defect on it. According to the number of this defect per
square feet the grade of leather decreases from first grade to second grade, third grade, …The
value of the leather produced dramatically decreases as the grade of it decreases from 1, 2, 3….
This quality problem may come from skin disease during the animal life, improper slaughtering
and skinning, bad preservation and improper processing in the factory. Therefore, the quality of
the in put and the process itself also affect productivity.

Productivity is also linked with how the resources are utilized in the company. It is the function
of achieving the maximum possible with minimum resource. The resources are manpower,
material, equipment, spares and building, capital and time. The responsibility of achieving
higher productivity rests on managing these resources efficiently. By definition productivity
doesn't come from working harder. This may increase output, but it also increases labor input.
Similarly, using more capital or other production factors do not necessarily increase
productivity. Productivity growth comes from working smarter. This means adopting new
technologies or new techniques for production.

Productivity can also be defined as the relationship between result and the time it takes to
accomplish them. Time is often a good demonstrator since it is a universal measure, and it is
beyond the human control. The less timen taken to achieve the desired result, the more
productive the system is.

Generally, productivity should be considered as a comprehensive measure of how organizations

satisfy the following criteria.

• Objective: the degree to which they are achieved.

• Efficiency: how efficient resources are used to generate useful output.

• Effectiveness: what is achieved compared with what is possible .Comparability: how

productivity performance is recorded over time.

Productivity Factors
There are a number of ways to classify productivity factors. Among those the most general one
is classifying it in to external and internal factors. The external factors are those, which are not
controllable by the organization itself and the internal factors are those within its control. Thus
the first step towards improving productivity is to identify problem area within these factor
groups. The next step is to distinguish those factors, which are controllable [9].

The external factors that affect productivity are the economical, political, social, and other
infrastructure factors, which influence the effectiveness and decision making process of the
8enterprise management [9]. However the management cannot control these external factors
in short run. The internal factors, which can be controlled in short run, are product,
equipment, technology, materials, energy, people, organization and management style [9].
Each factor is discussed briefly below.

Product
Product as a factor of productivity means the extent to which the product meets the output
requirements. The amount that the customer is prepared to pay for a product of given quality is
determined by the product value. The value of the product can be improved by better design
and specifications. The availability of the product at the right place, at the right time and at the
reasonable price with the needed volume can also be important factors that affect the over all
productivity.

Plant and equipment

Plant and equipment productivity can be improved by: operating the plant and equipment in
optimum process condition, good maintenance, eliminating bottle-necks, reducing idle time,
and making more effective use of available machines and plant capacity. The productivity of
industries, which produce perishable products or products that degrade unless continually
processed, like leather industries, is highly dependent on their equipment. That means, the
equipment used should be kept well and be available by proper maintenance to avoid the
decomposition of the hide or skin on process.

Technology
Increased volume of goods and services, quality improvement, new marketing methods, etc…
can be achieved through increased automation and information technology. Automation can
also improve material handling, storage, communication system and quality control. Thus the
technology can be one of the important factors. For leather industry sector the quality of the
finished leather is highly depend on the technology used. That is why most of the leather
products exported from our industries are usually in semi processed form.

Organization and management style

An organization needs to be dynamically operated and led towards objectives and must be
maintained, serviced and reorganized from time to time to meet new objectives. Management
styles and practices also influence effectiveness through organizational design, personnel
policies, operational planning and controlling, maintenance and purchasing policies and capital
costs.
Productivity Improvement
Productivity improvement is not just doing things better; it is doing the right thing better [7].
Productivity can be improved by utilizing the resources effectively. Thus the resources can be
grouped in to human and capital resources. The brief descriptions of these two resources are
discussed below. 10

10 Productivity Improvement through Human Resources

The productivity issue of resource utilization includes another significant concern in today’s
world of strong social values- the way people are treated as human resources in the workplace.
Human resource is the most important and potential area of productivity improvement [22].
Ideally, productivity is achieved through high performance with a sense of satisfaction by the
people doing the work. The term quality of work life is an indicator of the overall quality of
human experiences in the work place. Managers are increasingly expected to facilitate
productivity for the organization while maintaining the quality of work life for its members. The
main management responsibilities in a productivity drive are to identify the objectives, to setup
a productivity improvement program and to establish a productivity measurement system [9].

Identifying the Objectives

To start any productivity improvement program, management has to identify the area where
improvement is necessary and achievable. And also it has to identify the specific elements of
productivity that are critical to the enterprise’s success such as quality, quantity, customer
satisfaction etc.

Setting up a Productivity Improvement Program

The structure of the organization must be carefully examined in order to identify the changes to
be aimed at the productivity improvement program. In spite of the difference in enterprises
goal and approach, the following checklist for establishing a productivity improvement program
is suggested: [9]

- Top management has a key role in determining the need for a maintenance program

and initiating, developing and adopting of a productivity improvement policy.

- A team which includes all parties concerned has to be formed. Outside consultant may be
called in.

- A small unit can be established to carry on a productivity program10

Educating management and supervisors in productivity improvement is crucial.

- Personnel at any level should be involved through group meeting and informal discussion at
the plant, departmental or office level.

- The program should provide for a periodic review and evaluation of results. This requires the
establishment of measurement and goal for each organizational unit.

- It is vital to raise the awareness level within the organization of all the factor that will
influence the productivity and of the system for improving it.

Establishing Productivity Measuring System

One of the important steps in productivity improvement is establishing a productivity

measurement system within the organization. This in itself brings some improvement in
performance by making people more aware of the meaning of productivity. The measurement
system must consider cost effectiveness, and determine the range and terms of measurement
system tasks. It must be easy to use and serve to identify the reasons to organizational changes.

II. Productivity Improvement through Capital Resource

Significant productivity improvement usually comes from saving material and energy. On
average, raw materials account for about 40 percent of total national production cost; if we
include energy, this figure increases considerably [9].

Poor operator practice, bad layout and inadequate storage space can aggravate problems in
handling materials and lead to excessive movement. A significant objective of any productivity
improvement program should be to suggest method of maintaining the volume of production
while reducing consumption of energy and materials and substituting cheaper materials and
spare parts for costly ones keeping the quality constant or better.Alternatively, a productivity
program should suggest ways to produce more from a given quantity of raw material.
Improving productivity also depends on optimal choice and utilization of materials and energy
resources.11

It is the operators and foremen who actually control the utilization of materials, energy and
machines, but managers, production engineers and quality assurance staff still have important
responsibilities in the area. Energy conservation and materials waste reduction must be
undertaken at several levels, from the organization level down to that of the operator. Energy
conservation can be achieved by recovering wasted heat and/or resources.

Quality is also the one way of improving productivity through capital resources. It can be
defined as the sum of features and characteristics of a product or service that bear on its ability
to satisfy a given need. This includes economic need as well as availability, easy maintenance,
reliability, design and all the other characteristics of need.

Basic elements of product quality are: performance, features, reliability, conformity, durability,
serviceability, aesthetics and perceived quality. Recognition of this basic element is important
for productivity. An organization that chooses to improve quality can do so in several ways; it
need not pursue all elements at ones. Instead, a segmentation strategy can be followed with a
few dimension singled out for special attention. Thus, quality is one of the important factors
and area of productivity improvement, and quality management is an important tool for
productivity management. The other way of improving the productivity through capital
resource is maintaining equipment properly to make them available whenever needed. It is
discussed below,

2.2.1. Productivity Improvement through Maintenance

Improvement of capital productivity is the ultimate objective of a good maintenance

management system. Productivity is affected by the volume, variety and period of operating
fixed capital. The quality, age of the equipment and degree of sophistication usually weigh
heavily in any measure of an organization’s productivity [7].12

It is not uncommon to find less machine utilization due to poor planning and lack of preventive
maintenance. In one comparatively successful productivity improvement drive, downtime on
critical production equipment should reduce in considerable amount. That means the
availability of machines increases and so the productivity.

As it is stated above productivity increases when the quantity of out put increases, other things
being constant. Thus, proper maintenance makes the equipment to be available whenever
needed. So the amount of output produced increases. But industries in developing countries
have a problem of minimizing the number of breakdowns, which greatly affect productivity of
the company.
On the other hand, the total cost of any company can be decreased if the resource utilized is
decreased. Productivity improvement in this way can also be achieved if planned maintenance
system is practiced. By having a planned maintenance system, the total cost of the company
can be reduced through lowering the costs of spare parts, overtime, and other related costs.

Good maintenance system also assures the equipment effectiveness. Quality is a key factor in
measuring equipment effectiveness. Quality improvement means minimization of waste and
defective products, which increases productivity and often leads to cost reductions. Thus good
maintenance system increases productivity by improving the quality of products. 13

2.2.3. Productivity Improvement Strategy

A sound productivity strategy calls for a system approach, which recognizes the
interrelationship between the elements of the system with their environment, to productivity
improvement. It defines the performance of the system and maintenance equilibrium while
effecting changes. 13

Thus productivity strategy is the pattern of decisions in the organization that determine its
objectives, procedure and principal policies and plans for achieving long-term productivity
improvement goals. A good productivity improvement strategy should: [9]

- develop a clear and easy communicated definition of the productivity improvement concept;

- explain why organizational improvement is important;

- evaluate current operating status and the reasons for the current status;

- develop model for excellence;

- develop improvement policies and plans.

Organization with clear productivity concepts should set a clear objective. The objective of
productivity improvement should always be expressed in terms of organizational improvement
in recognition of the past and current success of the division and subsidiaries within an
organization.
Productivity Improvement Techniques
The techniques used in carrying out productivity improvement programs are mostly for
collecting information and increasing the effectiveness of work [13]. There are several
improvement techniques so far, the following are common ones:
1-Business Process Reengineering: Business process reengineering concentrates on radical
change to improve operations. The radical change allows new revolutionary ideas to evolve
which can help to improve operations (Gomaa, 2006). It is an approach to review and redesign
organizational processes in order to achieve improved performance in terms of cost, quality of
service and timeliness.

2-Ergonomics:Ergonomics (or human factors) is the scientific discipline concerned with the
understanding of interactions among humans and other elements of a system, and the
profession that applies theory, principles, data and methods to design in order to optimize
human well-being and overall system performance (Narayanan, 2013)

3-Lean Manufacturing: Lean is a management approach for processes improvement as well as a

methodology that is focused on reducing cost, cycle time, waste in processes and increase
productivity (Louis, 1997).

4-Theory of Constraints: Theory of constraints pays attention on bottlenecks. It is important to

increase throughput to the maximum in production bottlenecks (Grunberg, 2007). Also it is well
established management theory that encompasses the correlated areas; production,
performance measurement, and problem solving tools.

5-Agile manufacturing: is defined as the integration of organization, highly skilled and

knowledgeable people and advanced technologies, to achieve cooperation and innovation in
response to the need to supply customers with high-quality customized products. The term
agile manufacturing came into common usage with the publication of the report 21st Century
Manufacturing Enterprise Strategy (Kidd, 1994; Iacocca Institute, 1991).

6-Work Study: Work study is a term that denotes the techniques of method study and work
measurement which are employed to insure the best possible use of all the available resources,
labor and material, in carrying out a specific activity [13]. It is specifically concerned with
productivity since it is used to increase the amount produced from a given quantity of
resources without further capital investments. Hence, work study is of interest to a manager,
because it is concerned with all the resources a management process, and their systematic
improvement so that they are efficiently and effectively utilized.

The aim of work study is to improve productivity and not to make the worker be more work
harder. That is productivity will not always need working harder but smarter. Moreover, work
study needs to be applied continually to update and bring for further improvement.

Since footwear manufacturing is labor intensive sub sector it needs safe working condition,
healthy worker and good ergonomics. Also, the production process consist many repetitive
activities that need proper work procedures to enhance productivity. Beside this, the
awareness on different production wastes also need consideration for better process flow. But,
it is unlikely that a single technique would address all these needs. The better way to approach
these problems is integrating the techniques in a systematic manner. To do this integration of
lean, ergonomics and work study is an appropriate strategy. According footwear manufacturing
production system peoples are the central pillars for any manufacturing system under lean,
similarly ergonomic principles used to fit the work to the worker by creating conducive
environment. Also work study create standard of performance considering human work in all
contexts.[12]

2.3 Empirical literature review

* explaining the previous research papers and their methodology and their
findings.

This portion of the paper is allocated to previous works done by different

scholars and researches on the topic of factors or elements that influence
performance of business activities at the international level in general and
textile and garment export in particular. Several researchers have used different
methodologies and different factors to measure export performance and also to
identify explanatory variables.
Birhanu and danel (2014) conduct the study Quality management practice in Ethiopia has
explains most of the stakeholders that quality related problems are the stumbling block for the
majority of the industries.

According to Sisay (2019) conducted an exploratory study on TQM practices in the

manufacturing industry. He explain manufacturing industry of Ethiopia is characterized by a low
level of development, with a share to GDP stagnated. In addition Apart from dozens of issues,
quality-related problems have been identified as the stumbling block for the development of
MIE (Addis, et al., 2017), and sometimes the challenge is referred as ―low-quality trap‖
(Altenburg, 2010, p. 9). It is also justified that quality will remain as the future challenges of
competitiveness for organizations in Ethiopia Beshah and Kitaw (2014). Despite this, significant
efforts have not been made by academicians/industrialists to introduce appropriate
management philosophies in the MIE, even basic quality tools and techniques (Kahsay et al.,
2007).

According to Demeke (2019) productivity defined by researchers as follow Eat well and
Newman (1991) defined productivity as a ratio of some measure of output to some index of
input use, As stated by Kulkarni et al. 2014, productivity is the ratio of output and the input. I.e.
Productivity = Output/ Input (Verma et al. 2015).

According to Mishra (2013), productivity improvement focuses on: Doing the ―right things to
produce and distribute by continuously reviewing and identifying changing customer and
societal needs. Doing ―things right to produce and distribute by constantly improving
production and distribution processes to produce and deliver the goods and services in the
most efficient way, Lim and Hoffmann (1997) found that improved layout of the workplace
increased productivity of the workers, through more economical use of hand movements by
conducting an experiment on hacksaws assembly.16

Literature gaps

What was the previous researcher's gap

There are several studies done on the topic of export performance in many
sectors including the textile and garment industry which is the focus of this
thesis. Most of the researches strive to identify internal and external factors
that affect or influence export performance, (Zou and Stan, 1998; Beleska-
Spasova, 2014; Carneiro, Rocha and Silva, 2011). Internal factors such as;
management characteristics, organizational capabilities regarding appropriate
export strategy, marketing mix elements, technology firm characteristics. While
external factors could be Export market characteristics, environmental hostility,
political condition, distribution channel accessibility, cultural factors and
government polices (Beleska-Spasova, 2014).

There are several such studies in the Ethiopian context; Daniel (2016) identified
internal factors that determine export performance of textile and garment
sector such as;labor skill and cost, capital of firms, the choice of marketing mix
elements, technology, and managerial capability. Another study done by
Wondu (2017), investigated both external indicators in terms of economic
growth measured such as GDP, FDI and REER and internal factors; export
marketing strategies, firm characteristics, market knowledge and the like.

Although; there are many studies done on the topic of factors affecting export
performance of Ethiopian textile and garment industry, the factors related to
culture were not the focus of the studies except mentioned as one of the
subjects raised together with other sub topics like market research. As a result,
there is a gap in literature concerning cultural elements as one of external
factors that impose on export performance of Ethiopian textile and garment
companies in particular and the countries export performance in general.
Therefore; this study focus on investigating how difference in cultural elements
influence export performance of Ethiopian textile and garment exporters
operating in Addis Ababa. 18

Conceptual framework

Productivity can be defined as a measure of effectiveness of a production system. Producing

right type of products of right quality (as per the design requirements) is what is expected from
the term productivity. Productivity is a product of rate of production and the quality of outputs
and therefore it is rather outcome-oriented than output-oriented (Sreekumar, Meghna,
Ruchika, 2018. In the studies that have investigated the relation of productivity to various
dependent variables. The quality management practices identified in measurement studies by
Abdurrahman Alsughayir, (2013:3, 7). Pignanelli, A. and Csillag, J. M (2012:7) in review states
that most of the studies that consider productivity and profitability as a dependent variable in
the evaluation of productivity improvement practice impact on operational performance,
presented in the Literature Review.

Based on the above literature review the conceptual framework of this study was developed.
(See Fig 2.1 The model demonstrates the relationship between low productivity and industry
operational performance and productivity through exploring the combined direct effects of 7
identified productivity related problems on two main business dependent variables operational
performance i.e., industry productivity and profitability. By following the literature, this study
focuses on the 7 productivity related problems: rejection of shoes ,Ergonomics, unSkilled
manpower, Training, Product design, work environment, and also two operational performance
dimensions i.e. industry productivity and profitability.

1) rejection of shoes : is on process shoe or finished shoe that doesn’t fulfill quality
standard and which doesn’t accept by customer.it is commonly occured during shoe
production process .and it is the main causes for productivity related problems. this
problem is usually being happened in our case company in different sections specifically
in stitching, lasting,and cutting section. Due to this it is Decreasing the company's
 output and the quality of products as well as consuming the production hour.so this is
the problem which should be reduced.
2) Bottleneck: bottleneck is one of the factor affecting of productivity which is occurs
when there is poor sequence of operation and a lot of reworking of products .at the
present time it is highly affecting The shoe manufacturing companies by Decreasing
their productivity and by consuming their production hour.
3) Ergonomics : Ergonomics is a science whose objective is to adapt the work station,
equipment or tasks to the person working, so to improve its security, health, comfort
and performance without compelling the person to adapt to the task. Also it deals with
the design of work and leisure systems, tools, procedures and practices (Cocci, 2005).
[1 ] obviously, poor ergonomics practice has a direct impact on employee productivity
and their health. So Any manufacturing companies should pay attention in order to
improve their productivity.
4) Working Environment Working environment has a direct impact on employee
productivity and morale in any organization Better temperature conditions, improved
air circulation and quality, providing enough lighting, reduced noise level, availability of
drinking water, etc. create a better harmonious working environment. This will motivate
the employees to work harder and more effectively which can lead to improved quality
and productivity of the organization. It is an accepted fact that if the workers are kept
happy and healthy, they will perform better.
5) Training and education Training and education spread the knowledge of continuous
improvement and innovation in service process to attain full benefits and business
excellence. Talib and Rahman (2010) reported the critical role of training and education
in maintaining high quality level within the service industry.
6) Product Design Product design examines an organization‘s quality and service
delivery performance in terms of timeliness, errors and costs of quality, responsiveness,
and customer satisfaction. These indicators are used for measuring the product and
service design quality (Faisal Talib et la 2010).
 7) Skilled manpower selection of right man for a specific job applying well known
saying division of labor. Training i.e. consideration of training requirements whether to
be imparted training in the plant itself or to be sent for training outside the unit to other
plants within the country or abroad or training institutes.

On the view of customers regarding aesthetics value (the most subjective dimension) of the
quality of leather shoe products happened to be inferior in design, style and choice/Variety.
Also On customer‟s20perception about the Quality of Domestic Leather Shoe Products in
Relation to imported leather shoe products in terms of design, style and Variety/choice turn out
lesser than imported shoes20.

Independent variables
Quality related problems

Ergonomics

Skilled manpower

Training and education

Bottle neck

Product design(colour,style

Work environment

Rejection of shoes

Dependent variable
Organizational performance(OP)
Productivity
 CHAPTER THREE

MATERIALS AND METHODS

213.1 Study Site

State where the study will be done (location) and why it was chosen

21The study was accomplished in anbessa shoe share company which is located in Addis
Ababa/akaki kality .The researcher internship program were in anbessa shoe company.
During this internship program the researcher observed deeply the company's shoe
manufacturing process and in the company there were a lot of problems such as poor
ergonomics awareness,high amount of rejection, poor product designing,unsuitable work
environment etc.and currently, there are these problems still in the company.due to this the
researcher made a decision to make his final fifth year project on the title of the Role of
productivity Improvement Techniques on shoe manufacturing company in case of ASSC.

3.2 study design

The research design used in this study is descriptive. The study aimed at assessing the role of
productivity improvement techniques in ASSC. the reason to use this research design that is
used to show the effect of the independent variables on the dependent variables is usually
observed and recorded over some time, to aid researchers in drawing a reasonable
conclusion regarding the relationship between these variable types.

223.3 study approach

A descriptive type of study was adopted in this study preferably because it

makes enough provision for protection against bias while maximizing reliability
with due concern for economic completion of the study. The study relied on
individuals‘ self-reports on their knowledge, opinions and attitudes. Kothari
(1990) Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present. Given the purpose of the study, which
aims at assessing the role of productivity improvement techniques in the
productivity of anbessa shoe share manufacturing company, the study adopted
both quantitative and qualitative approaches.22

3.4 Study Variables

Explain the independent and dependent variables

22Productivity can be defined as a measure of effectiveness of a production system. Producing

right type of products of right quality (as per the design requirements) is what is expected from
the term productivity. Productivity is a product of rate of production and the quality of outputs
and therefore it is rather outcome-oriented than output-oriented (Sreekumar, Meghna,
Ruchika, 2018. In the studies that have investigated the relation of productivity to various
dependent variables. The quality management practices identified in measurement studies by
Abdurrahman Alsughayir, (2013:3, 7). Pignanelli, A. and Csillag, J. M (2012:7) in review states
that most of the studies that consider productivity and profitability as a dependent variable in
the evaluation of productivity improvement practice impact on operational performance,
presented in the Literature Review.

Based on the above literature review the conceptual framework of this study was developed.
(See Fig 2.1 The model demonstrates the relationship between low productivity and industry
operational performance and productivity through exploring the combined direct effects of 6
identified quality related problems on two main business dependent variables operational
performance i.e., industry productivity and profitability. By following the literature, this study
focuses on the 6 quality related problems: Ergonomics, Skilled manpower, Training and
education, Product design, work environment, and also two operational performance
dimensions i.e. industry productivity and profitability.

3.5 Study Population –

Clearly identify and describe the study population. Describing specifically who will be part of
the study. (Occasionally “target population” may be mentioned)

3.3.1 Inclusion

3.3.2 Exclusion Criteria24

Population is a group of individuals who have one or more common characteristics that are of
interest to the researcher (Best and Khan, 1998). The researcher has preferred anbessa Shoe factory
as a case study.The total targeted population in the factory for the study is 102 from these 6 are
production supervisors, 7 line quality inspector, 1 lead designer , 2 factory production manager,From
each section Lasting ,stitching and cutting 15 operaters were selected and the total numbers of
respondents to be 61.

3.5 Sample Size Determination

Describe how the sample size will be computed24

The target population in the factory is 95 among those 77 will be used as sample size. The determination
for selection is judgmental method.
12 +12 +2+4 30+30+50 N= 140

n= 61

This study will apply simplified formula provided by Yamane, (1967) to determine the
required sample size at 95% confidence level, degree of variability = 0.5.

Where:

n = Desired sample size

N =Total population size

e = Accepted error limit (0.05) on the basis of 95 percent degrees of confidences put into
decimal form

……

n = 140

1+140 (0.05) (0.05)

n = 140

1.37525

Population number for each section taken from the division‘s monthly report (July, 2017). 25

Respondents from each section

Section's name No of population Sample

Production's supervisor 12 6

Line quality supervisor 14 7

Lead designer 2 1

Factory Production manager 4 2

Operators in Stitching, 50,30,30 15,15,15 =45

lasting,cutting
 140 Total = 61

Sampling technique

The sampling technique was nonprobability purposive expert sampling. Purposive sampling is
a non-probability sampling method and it is used when “elements selected for the sample are
chosen by the judgment of the researcher’’. Researchers often believe that they can obtain a
representative sample by using a sound judgment, which will result in saving time and
money”. (Black, 2010: 225). The researcher selected the sample based on who the researcher
thinks would be appropriate for the study. According to Kumar (2005), the primary
consideration in purposive sampling is the judgment of the researcher as to who can provide
the best information to achieve the objectives of the study.

263.7 Data collections tools (if any)

Explain the tool that will be used in the study and how they will be constructed26

For this research, questionnaire and observation will be the data collecting instruments
selected by the researcher. Document like; published manual and annual reports of the
factory will be examined by the researcher. Questionnaire will predominantly employed after
appropriate pilot testing is done to fine tune the quality of the questionnaire. 26

3.8 Pre-Testing of data collection tools (if any) - Describe how data will be collected and how
pretesting centres will be selected). It is here that the following issues will be discussed:

(i)Validity-Explain how validity of the instruments will be established

(ii) Reliability-Show and explain how reliability of the instruments will be established
N.B. If using standardized test, quote test and existing validity and reliability levels

3.9 Data Collection

Explain how field or laboratory data collection will be done

The researcher will first write a letter of request for Kangaroo shoe factory to collect data
through questionnaire and observation. If the expected validation is approved by the factory,
the researcher will distribute the questionnaires to the staff members, department assigned,
the gender of the respondent will be balanced depending on the population of the
management & export focused department employee staff. The questionnaires have been
distributed fairly for the selected respondents. The questionnaires will prepared by keeping
all the procedures of good format and will commented by experienced individuals. Everything
was introduced by clear tone for each respondent .After filling all the materials will collected,
tallied and fairly analyzed.

4.4. Methods of data analysis

After collecting data from the questionnaire and interview, the data collected from structured
question will be edited, coded, tabulated and presented using charts and then will analyzed
using descriptive statics such as, frequently distribution and percentage.

3.10 Data Management and analysis

Explain the methods that will be applied in analyzing the data after field or laboratory work27

The research was applied quantitative and quantitative techniques for data analysis. The
qualitative technique employed the application of content analysis which was supplemented
by descriptive analysis done by the MS Office Word software package ready for interpretation
and quantitative techniques the data were presented in form of table Percentage, frequency
clear understanding to everyone.

27
 CHAPTER FOUR28

RESULTS

Presentation of findings is in line with the research questions that guided the study.
Background information about characteristics of the respondents like education level, edge,
and their work position.in addition from weekly production report we found the productivity
level of the company and Respondents were further asked to rank the various statements
concerning the productivity of company using the Likert Scale comprising of five ranking
which were ―strongly agree‖, ―Agree‖, ―Neutral‖, ―Disagree‖, ―strongly disagree‖.28
4.1 Respondents’ Demographic Characteristics

The purpose of the study was to examine the role of productivity improvement techniques in
pittards product manufacturing. The information generated to address the stated research
objectives is solicited from respondents with diverse demographic characteristics. The first
part of the questionnaire consists of the demographic information of the participants. This
part of the questionnaire requested a limited amount of information related to personal and
professional characteristics of respondents. Accordingly, the demographic variables about the
respondents were summarized and described in tables. These variables include: age number
of service years of the respondents in the factory, the highest educational level achieved,
field of specialization, and current position of work in manufacturing.

Respondents’ Demographic Characteristics (N=61)29

Variables Frequency Percent

Education College deploma

First Degree

Masters

Phd

Total 100%

Position Customers 12

Designers 14

Lead designer 1
 The company's shoe 4
sellers

Total 45 100%

Work experience 1-5 20

5-10 years 30

10 years and above 11

Total 61 100%

The following survey data show the response of the respondents on the questions which
asked them to state their work experience, level of education and work position30.

Out of the 61(100%) respondents Out of the 109 (100%) respondents 28 (25.7%) were
between the age of 41 and 60 years while 81 (74.3%) were between the ages of 25 and 40
years of age.In case of educational level, 13 (11.9%) respondents had Master degree, 23
(21.1%) had first degree, 31 (28.4%) had Diplomas, 38 (34.9 %) had certificates. The statistical
data shows most of pittards workers are young and low level of education.

 Pittards is structured basing on different positions in this research most of respondents are
line quality controllers. Out of the 109 (100%) respondents 33 (30.2%) where line quality
controllers, 16 (14.7%) where quality and production managers and production .

supervisors, 10 (9.2%) where quality supervisors, and customers and the rest 7(6.4 %) of
respondents where sales and marking officers.as shown in the table 4.1.30

Productivity of ASSC from weekly production report

As weekly production report of the company shows in week 1 and 3 60000 pairs
of shoe was supposed to be produced respectively in per week, but due to a lot
of productivity related problems and were produced 52000 and 51000

Whereas in week 2 and 4 50000 pair of shoes were supposed to be produced in

per week but they were produced only 43000 and 41000 shoes. for four weeks
the productivity will be shown in the table 4.2 below. As the data showed

Week Planned out put Actual out put Percent

1 60000 52000 86.7%

2 50000 43000 86%

3 60000 51000 85%

4 50000 41000 82%

Week Planned production hour Actual production

hour

4
Productivity related problems of company finding

Causes for Strongly Agree Neutral Disagree Strongly

productivity related agree disagree
problems
N % N % N % N % N %
Poor ergonomics 40 65 8 13 1 1.6 11 18 1 1.6
practice

Bottleneck 45 73. 10 16 0 O 5 8.2 1 1.6

8

Bad working 30 49 10 16 2 3.3 17 28 2 3.3

environment

Lack of training 32 52 20 32. 3 5 4 6.5 2 3.3

8

Unskilled manpower 28 46 25 32. 5 8.2 9 6.5 3 5

8

Rejection of shoes 55 90 5 8.2 0 0 1 1.6 0 0

due to defects

Poor product Design 28 46 15 24. 3 5 10 16 5 8.2

6

Total 61 100 61 100 61 100 61 100 61 100

Based on research question findings show that rejection of shoes, bootle

neck,poor ergonomics practice, lack of training and ,bad working environment
are the main causes of productivity related problems in ASSC as shown in the
above table.results are:-
  The findings also show that 48 (78.7%) respondents agree that poor
ergonomics practice is a reason for productivity problem and 49 (19%)
disagreed.
 Findings show that 55(90%) respondents agree bottle neck is a cause for
productivity problem and 31 (24.8%) disagreed.
 Findings show 52 (85%) respondents agreed and 9 (9%) did not agree with
lack of training is the main cause for productivity problems that affect
organizational performance and productivity.
 Findings show 40(65.6%) respondents agree bad working environment is
also causes for quality problem and (31%) disagreed.
 Findings show 60(98%) respondents agreed with rejection of shoes is the
main reason for productivity problems and 1(1.6%) did not agree with the
statement.
 Findings show 43 (70%) respondents agree with unskilled manpower is
also a reason for productivity problems and 13 (21%) disagreed.
 Findings show 43 (70%) respondents agree that poor product Design is a
reason for produuctivity related problem while 15 (24.6%) disagreed.

Productivity improvement techniques applied by the company

Respondents were asked to state effective productivity improvement

technique.17 (27.8%) respondents stated select minimizing the rejection of
shoes is effective technique to improve productivity level of a company.16(26%)
respondents‘ stated eliminating bottle-necks, 14 (23%) respondents stated
adapting ergonomics principles, 6(9.8%) respondents stated giving training for
employees, 2 (3.2%) respondent stated creating comfortablework environment,
4(6.5%)of respondents stated designing quality product and The rest 2(3.2%)of
respondents stated employment skilled manpower results are as shown in the
table below.35

Effective Productivity Improvement Techniques

Productivity Improvement Frequency Percent

Techniques

Minimizing the rejection of 17 27.8%

shoes

Eliminating bottle-necks 16 26%

Adapting ergonomics principles 14 23%

Giving training for employees 6 9.8.%

Creating comfortable work 2 3.2%

environment

Design quality product 4 6.5%

Employment skilled manpower 2 3.2%

Roles of quality improvement techniques

Productivity improvement techniques which are a method of continuously

examining the system and processes of the sector to supply customers with the
desired products.in their research they 35mention importance of quality
improvement techniques some of them are build confident and consistent,
increases efficiency, improve customer satisfaction, create businesses to
integrate new customer, effectively and exploit business market, reduce level of
risk and Inspire Brand Loyalty (Alem, et al., (2017).

Respondents were asked to select the main role of productivity improving of

products in ASSC. Basing on the number of the respondents, the results were as
follows; out of 61 respondents, 20(32.8%) respondents stated that increase
productivity, while 11(18%) respondents stated that reduce level of risk, and
5(8.2%) respondents stated that creat a business relationship , 4(6.5 %) create a
comfortable work situation,and 15( 24.6%) stated that reduce additional
expenses, 6 (9.8%) increase customer satisfaction as shown in the table 4.8
below.

Role of productivity improvement Frequency Percent

techniques

Increase productivity 20 32.8%

Reduce level of risk 11 18%

Creat a business relationship 5 8.2%

Create a comfortable work situation 4 6.5%

Reduce additional expenses 15 24.6%

Improve the product quality

Increase customers satisfaction 6 9.8%

Total 61 100%

CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 DISCUSSION: -Results are presented and discussed by comparing them with
data from other studies. State whether the results agree or they differ. Where
your results differ provide possible explanations for the differences

5.2 CONCLUSIONS: – Must be derived from the data in the results and in line
with the specific objectives

5.3 RECOMMENDATIONS: – Should be derived from the conclusions

 CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

Introduction

The purpose of this last chapter is to present conclusion of major findings and forwarded
possible recommendations. Hence, the first section presents the conclusion of major findings
and the second section presents recommendations38

CONCLUSION

This study was to assess the role of productivity improvement techniques in ASSC. The
methodology used in data analysis was quantitative analysis. After analyzing the data, the
following conclusion was drawn:- ASSC is under performed due to different productivity
related problems. The cause of productivity related problems in ASSC are rejection of shoes ,
bottle necks,unskilled man power, bad working environment, poor ergonomics practice, poor
design product, and lack of training. Based on the findings in the previous sections, rejection
of shoes,bottle neck and poor ergonomics practice are the main causes of productivity
related problems in ASSC need much improvement.

Shoe manufacturing process is not as easy as other product manufacturing process. It

includes a lot of production sections ,these sections must be managed and controlled by a
well management system and supervision. Otherwise there will be a lot of productivity
related problems. In the production of shoes operaters ,supervisors, managers, working
environment, and training play an important role to reduce problems and increase
productivity.

A lot of shoe manufacturing companies use different techniques to improve productivity.As

the research finding indicated the study got The techniques to improve productivity in
ASSC .the techniques are minimizing the amount of rejection of shoes,eliminating bottle-
necks, adapting ergonomics principles, giving training for employees, create comfortable
work environment,employment skilled manpower and design quality product.

As the research finding indicated the role of those techniques are helps an organization to
increase productivity, reduce additional expenses and leve of risk while manufacturing, also
the role of productivity techniques create a business relationship, increase customers
satisfaction,create a comfortable work environment,and improve the use of time and other
resources .

Other importance of Improve productivity is:-

It can be concluded that the overall identified productivity techniques can improve the
productivity performance in ASSC. The stated productivity related problems should be
effectively managed in the company because each problems have impact on the productivity
of the company and success of industry competitiveness.

5.3 Recommendations
In developing such a framework on productivity improving techniques, the researcher would
like to forward the following suggestion to the company.

From the results of study, the following points have been recommended.
 Footwear rejection: is on process shoe or finished shoe that doesn’t fulfill quality
standard and which doesn’t accept by customer.it is commonly occured during shoe
production process .and it is the main causes for productivity related problems. It can
be reduced By strong supervision of operaters,machines and a well management
system as well as By employing skilled workers because a lot of defects are occurred
by them .The company should identify sections which reject a lot of shoes and
specially in the section of lasting ,stitching, cutting section rejection is commonly
occurred .it should be known and managed by the company with great attention.
 Adapting ergonomics principles:- Ergonomics is defined as the study of the design of a
workplace, equipment, machine, tool, product, environment, and system which takes
into consideration human being's physical, physiological, biomechanical, and
psychological capabilities and optimizes the effectiveness and productivity of work
systems while assuring the safety, health, and well-being of the workers (Fernandez
and Marley, 1998). In general, the goal of ergonomics is to fit the task to the
individual, not the individual to the task.[10]40 Ergonomics principles and guidelines
are useful in the prevention of operator fatigue. and stress leading to potential work-
related musculoskeletal and neurovascular disorders (Walder, 2007). Nunes (2007)
confirm that the consequences of not applying ergonomic principles to the work
system are both to the worker and to the company. The emergence of muscular
discomfort, fatigue, work stress, and/or musculoskeletal disorders is the most
common consequence for workers. For the companies the results may be the increase
of errors, workers‟ absenteeism, or the diminishment of productivity and employees‟
morale. Ergonomic interventions improve significantly the efficiency, productivity,
safety and health of workers. Actions occur in every front of any situation at work or
leisure, from physical stress to ambience factors that affect hearing, vision or comfort
(IEA Council, 2000)40so the company should adapt ergonomic principles.
 Eliminating bottleneck :-bottle-neck is one of the factor affecting of productivity
which is occurs when there is poor sequence of operation and a lot of reworking of
products .the designers and supervisors should arrange a good sequence of operation
for the product to be produced and machineries have to be checked before
processing as well as giving proper training regarding The use of different machines
and working method plays an important role to reduce bottle-necks likewise bottle-
necks can be reduced by strong follow up of the production process, operaters and
machines.
 Giving training for workers :-The company should give adequate training for its
workers.Employees are lined on the front to the success or failure of an organization
also a lot of production mistakes are occurred by them due to this huge attention
needed to make them a change agent through continuous capacity building programs.
Therefore, the employees at all levels must be given a training program about
productivity factors and the model used to solve them. Concerning the model lean,
ergonomics and work study principle and methods are explained. Also during training
workers are encouraged to give feedback about the problem and the possible solution
from their experience.41It is absolutely necessary to give adequate training and
employ skilled workers in order to improve the company's productivity and reduce
problems.
 Working Environment Working environment has a direct impact on employee
productivity and morale in any organization because when workers work in
uncomfortable work situation they expose for fatigue, their effort will decrease and
make a lot of mistakes finally the product's quality will decrease so in order not to
occur this problem Better temperature conditions, providing safety
equipments ,improved air circulation , providing enough lighting, reduced noise level,
availability of drinking water, etc. create a better harmonious working environment.
This will motivate the employees to work harder and more effectively which can lead
to improved quality and productivity of the organization. It is an accepted fact that if
the workers are kept happy and healthy, they will perform better.
  It is recommended that the factory will be beneficiary if they implement the newly
developed model. Because these is an organized and sustainable productivity
improvement technique developed to improve productivity from operation to firm
level. 42

References

Misikir Teklemariam (2004), Productivity Improvement In Ethiopian Leather Industry Through

Efficient Maintenance Management, School of Graduate Studies of Addis Ababa University42
Appendix
 Interview questions format

First of all I, would like you to thank your cooperation

Part I: Participant Information

1. Which of the following age categories describes you?

◻ 25-40◻ 41-60

2. Number of years you have worked for the factory:

◻ 0-4 ◻5-9 ◻10-19 ◻20-30◻ Above 30 years

3.Educational Qualifications:

◻ College Diploma

◻First Degree

◻Masters

◻Phd

For designers and lead designer

1.Do you use material combination while you design shoes?

Yes

No

2. How often does the company make fashionable shoes?

Always

Usually

rarely.
Never

For the company's sellers. 6

3.Do Customers ask you to provide shoes which have material colour combinations?

Yes

No

4. How is the Customers desire on fashionable products?

High.

Medium

Low

For customers

5.Do you like shoes which have material colour combinations?

Yes. No.

6.Do you like fashionable leather shoes?

Yes.

No.

Part III: Questions related to Quality improving techniques to wards operational

performance

A. Causes of quality related problems in the company45

N Questions Strongly Agree Neutral Disagre Strongly
o
agree Disagree

1 Rejection of shoe is the main reason

for productivity problem that affect
organizational performance and
productivity.