ADDIS ABABA UNIVERSITY

ADDIS ABABA INSTITUTE OF TECHNOLOGY (AAIT)

SCHOOL OF MECHANICAL AND INDUSTRIAL ENGINEERING
(SMIE)
(INDUSTRIAL ENGINEERING STREAM)

PRODUCTIVITY IMPROVEMENT OF ANBESSA SHOES S.C

THROUGH LEAN TOOLS

BY: ETABEZU NEMERA

Addis Ababa, Ethiopia

July, 2021
Productivity improvement of Anbessa shoes S.C through lean tools

By: Etabezu Nemera

A Thesis submitted to
The School of Mechanical and Industrial Engineering

Presented in Fulfillment of the Requirements for the Degree of Master of Science in Mechanical
Engineering (Industrial Engineering Stream)

Addis Ababa University

Addis Ababa, Ethiopia
July, 2021
 ADDIS ABABA UNIVERSITY
ADDIS ABABA INSTITUTE OF TECHNOLOGY
SCHOOL OF MECHANICAL AND INDUSTRIAL ENGINEERING

This is to certify that the thesis prepared by Etabezu Nemera, entitled: “Productivity
Improvement of Anbessa shoes S.C through Lean Tools’’ and submitted in partial
fulfillments of the requirements for the degree of Master of Science (Mechanical and Industrial
Engineering) complies with the regulations of the University and meets the accepted standards
with respect to originality and quality.

Approved by Board Examiners:

Internal Examiner: Dr. Gezahegn Tesfaye Signature__________ Date_____________

External Examiner: Dr. Betseha Tizazu Signature __________ Date_____________

Advisor: Dr.:- Ermias Tesfaye Signature __________ Date _____________

Co-Advisor: Mr. Ashenafi Adugna Signature __________ Date_____________

School Dean: _____________ Signature __________ Date_____________

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 DECLARATION

I hereby declare that the work which is being presented in this thesis entitled “Productivity
Improvement of Anbessa shoes S.C through Lean Tools’’ is original work of my own, has not
been presented for a degree of any other university and all the resources of materials used
for the thesis have been properly acknowledged.

Etabezu Nemera ___________________ ___________________

Signature Date

This is to certify that the above declaration made by the candidate is correct to the best of my
knowledge.

Dr. Ermias Tesfaye ___________________ ______________________

(Thesis Advisor) Signature Date

Mr. Ashenafi Adugna ___________________ ______________________

(Thesis Co-Advisor) Signature Date

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 ACKNOWLEDGEMENT
First of all, I would like to thank God for giving me strength and endurance to successfully
complete this thesis work. Next, I wish to express my deepest gratitude to my advisor Dr. Ermias
Tesfaye for his continuous support and guidance during the course of this research work starting
from development of the research proposal to writing this thesis. His careful reading the draft
thesis, valuable comments, criticism and constructive suggestions greatly contributed to the
improvement of the thesis. And also want to express my profound gratitude to my co-advisor Mr.
Ashenafi Aduga . My gratitude also goes to Addis Ababa Institute of Technology, Industrial
Engineering chair staffs for their indispensible support and sharing their knowledge as well as
experience which enabled me a lot to finalize my study successfully

I wish to thank all the officers’ of ASSC for their cordial approval to conduct my thesis works of
their industries. I would like to forward a word of appreciation to General Manager, Ato
Bamlaku Demisse, PDC manager, Ato Dereje Tolessa, production manager Ato Eyob H/
mariam, Sales & Marketing manager, Ato Tadesse Gurmu, kaizen head, Ato Teketel Zeleke,
Purchasing & Distribution Head, W/ro Yeshi Gebeyhu, productivity improvement expert,
Getaneh Alene and quality control head, Ato Antehun Sendeku who shared ideas and given me
their time in responding the interview .
Besides, I am grateful to my father Ato Nemera Geledassa, my mother W/ro Kuleni Nurefeta,
my sisters & brothers for their cooperation and companionship during this study. I also convey
my sincere thanks to my friends W/ro Martha Alene and W/rt Yenenesh Alemayhu for their
editing services.
I am thankful to my post graduate classmate Ato Sisay Moges for his continuous support and the
brainstorming discussions.

Finally, my greatest appreciation is reserved for my children, Oliyad Abebe, Nathan Abebe &
Helona Abebe and my beloved husband Ato Abebe Mulu for their patience and support during
the course of this research work. It is due to their genuine love and encouragements that the work
of this research and my entire study at AAiT became effective.

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 ABSTRACT
Ethiopian footwear manufacturing companies have limitations to compete in the global market.
This sector is considered to play major role in increasing country’s economy especially in
export. But it is not competitive in the international market due to various internal and external
factors.

This study was a case analysis on the development of an improved model that works to enhance
productivity in the selected shoe factory. The procedures include literature survey, data
gathering, and interview with the experts and factory observation to assess the existing work
flow. The data analysis was done using Pareto analysis, Cause and effect diagram, lean
maturity, value stream mapping and an AutoCAD.

Lean manufacturing is to remove waste, decrease the lead time, increase the PCE and rise the
profit and productivity .This work addresses the implementation of lean tools by selecting a
gentle man shoe model known as SAWA Lafric and observed its production activity then evaluate
Process Cycle Efficiency (PCE), Value Added (VD), Non Value Added (NVD) activities, lead
time and takt time. The current state and after the implementation of lean tools, the PCE, takt
Time and lead Time is 7.79%, 61,234sec, 14.05sec/pair and 17.08%, 27,949sec, 11.16sec/pair
respectively. Lean maturity of the case company assessed and Color codes were assigned for the
maturity level and the assigned color codes were Green: Above industry baseline, Yellow: At or
near industry baseline and Red: Below industry baseline. The green , yellow and red code for
existing lean maturity were 0,17 & 3 respectively and after the implementation of lean tools the
code became 11,9 & 0 respectively.

By this study the lean wastage was evaluated; the existing machine layout was assessed and new
machine layout is proposed using AutoCAD. After all the production flow was rearranged by
minimizing several NVD times such as transportation, waiting, inspection, etc. a productivity
improvement model was proposed. This model is significant as it can resolve the identified
problems in awareness Creation on management and manpower, improvement strategies, future
VSM, as well as continual improvement of the process.

Keywords: -productivity, Lean maturity, waste, Value Stream Map(VSM),

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Table content

DECLARATION.......................................................................................................................... II

ACKNOWLEDGEMENT .......................................................................................................... III

ABSTRACT .................................................................................................................................. IV

LIST OF TABLES ...................................................................................................................... IX

LIST OF FIGURES .................................................................................................................... XI

ABBRVATION ......................................................................................................................... XII

CHAPTER ONE ........................................................................................................................... 1

1 INTRODUCTION................................................................................................................. 1

1.1 BACKGROUND OF THE STUDY .............................................................................................. 3

1.2 STATEMENT OF THE PROBLEM .............................................................................................. 4
1.3 RESEARCH QUESTIONS ........................................................................................................ 6
1.4 OBJECTIVES OF THE STUDY .................................................................................................. 7
1.4.1 General Objective ....................................................................................................... 7
1.4.2 Specific Objectives ...................................................................................................... 7
1.5 SIGNIFICANCE OF THE STUDY .............................................................................................. 7
1.6 SCOPE AND LIMITATION OF THE STUDY ............................................................................... 7
1.6.1 Scope of the Study ....................................................................................................... 7
1.6.2 Limitations of the Study .............................................................................................. 8
1.7 ORGANIZATION OF THE STUDY ............................................................................................... 8

CHAPTER TWO .......................................................................................................................... 9

2 RELATED LITERATURE REVIEW ................................................................................ 9

2.1 INTRODUCTION .................................................................................................................... 9

2.2 DEFINITION AND CONCEPTS OF PRODUCTIVITY .................................................................... 9
2.3 PRODUCTIVITY ................................................................................................................... 10
2.4 PRODUCTIVITY MEASUREMENT ......................................................................................... 12
2.5 PRODUCTIVITY IMPROVEMENT TOOLS ............................................................................... 12
2.6 LEAN CONCEPT .................................................................................................................. 14

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 2.7 EVOLUTION OF LEAN ......................................................................................................... 14
2.8 LEAN LEVELS .................................................................................................................... 15
2.8.1 Lean Principles in Strategy....................................................................................... 15
2.8.2 Lean Principles in operational Level ........................................................................ 16
2.9 LEAN PRACTICES ................................................................................................................ 18
2.10 EXISTING LEAN MANAGEMENT MATURITY ASSESSMENT MODEL ................................... 19
2.10.1 Qualitative Assessment for LMM .......................................................................... 19
2.10.2 Quantitative Assessment for LMM ........................................................................ 21
2.11 SELECTION OF AN APPROPRIATE MODEL OR TOOL .......................................................... 21
2.12 SUMMARY OF LITERATURE REVIEW, LITERATURE GAPS ................................................. 29

CHAPTER THREE .................................................................................................................... 31

3 RESEARCH METHODOLOGY ...................................................................................... 31

3.1 INTRODUCTION .................................................................................................................. 31

3.2 RESEARCH DESIGN ............................................................................................................ 31
3.3 RESEARCH APPROACH ....................................................................................................... 31
3.4 DATA COLLECTION STRATEGY AND SOURCES OF DATA ...................................................... 33
3.5 TARGET POPULATION AND METHOD OF SAMPLING ........................................................... 34
3.6 RESEARCH VARIABLES ...................................................................................................... 34
3.7 TOOL AND METHOD OF DATA ANALYSIS ........................................................................... 35
3.8 ETHICAL CONSIDERATION ................................................................................................. 35

CHAPTER FOUR....................................................................................................................... 36

4 OVERVIEW OF ETHIOPIAN FOOTWEAR SECTOR ............................................... 36

4.1 BACKGROUND THE SUB-SECTOR ....................................................................................... 36

4.1.1 Historical Background of Ethiopian Footwear Industry .......................................... 36
4.1.2 Anbessa Shoe S.c. ...................................................................................................... 37
4.2 DEFINE THE PROCESS OF ASSC ......................................................................................... 37
4.3 SWOT ANALYSIS FOR THE LEATHER SECTOR ..................................................................... 37

CHAPTER FIVE ........................................................................................................................ 39

5 DATA COLLECTION, ANALYSIS AND INTERPRETATION .................................. 39

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5.1 INTRODUCTION .................................................................................................................. 39
5.2 DATA COLLECTION AND DATA ANALYSIS ......................................................................... 39
5.3 EXPORT SALES VOLUME ..................................................................................................... 39
5.4 ANNUAL PRODUCTION VOLUME ......................................................................................... 40
5.5 WASTE ............................................................................................................................... 41
5.5.1 Unnecessary inventory .............................................................................................. 41
5.5.2 Waiting ...................................................................................................................... 42
5.5.3 Pareto Analysis for down Time ................................................................................. 45
5.5.4 Defect ........................................................................................................................ 46
5.5.5 Over Transportation ................................................................................................. 47
5.6 OVERALL EQUIPMENT EFFICIENCY ..................................................................................... 56
5.6.1 Availability ................................................................................................................ 56
5.6.2 Performance Rate ..................................................................................................... 61
5.6.3 Quality Rate .............................................................................................................. 62
5.7 ROOT CAUSE ANALYSIS FOR LOW PRODUCTIVITY OF ASSC .............................................. 63
5.8 MEASURING LABOR PRODUCTIVITY ................................................................................... 64
5.9 ABSENTEEISM .................................................................................................................... 66
5.10 CURRENT VALUE STREAM MAPPING (VSM) ................................................................... 66
5.10.1 Current Takt Time Analysis .................................................................................. 70
5.10.2 Current process cycle efficiency Analysis (PCE) ................................................. 71
5.11 OVERVIEW OF THE FUTURE VSM ................................................................................... 71
5.12 FUTURE SAWA LAFRICA PRODUCTION LINE ................................................................. 73
5.12.1 Future process cycle efficiency Analysis (PCE) ................................................... 74
5.12.2 Future takt time ..................................................................................................... 75
5.13 INTERVIEW ANALYSIS .................................................................................................... 77
5.13.1 Lean Maturity (PDC) ............................................................................................ 77
5.13.2 Sales and Marketing ............................................................................................. 78
5.13.3 Lean Maturity on production ................................................................................ 80
5.13.4 Lean Maturity on Quality...................................................................................... 81
5.13.5 Lean Maturity on purchasing and distribution ..................................................... 82
5.13.6 Lean Maturity on Human Resource ...................................................................... 83
5.14 RESULTS AND FINDINGS OF POOR PRODUCTIVITY ........................................................... 84
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 5.14.1 Issues at the firm's or company's stage ................................................................. 85
5.14.2 External or national level problems ..................................................................... 87
5.15 SUMMARY OF FINDING ................................................................................................... 87

CHAPTER SIX ........................................................................................................................... 89

6. PROPOSED THE FUTURE STATES OF SHOE PRODUCTION LINE ........................ 89

6.1 INTRODUCTION ............................................................................................................ 89

6.2 DEVELOPMENT OF FUTURE STATES OF SHOE PRODUCTION LINE CRITERIA ......................... 89
6.3 PROPOSED MODEL ............................................................................................................. 89
6.4 MODEL DESCRIPTION ......................................................................................................... 90
6.4.1 Awareness creation for management & Manpower ................................................. 90
6.4.2 Review of current Situation ...................................................................................... 91
6.4.3 Improvement Strategies ............................................................................................ 92
6.4.4 Proposed states of shoe production Line .................................................................. 98
6.4.5 Continual Improvement-Kaizen .............................................................................. 104

CHAPTER SEVEN................................................................................................................... 105

7 CONCLUSION, RECOMMENDATION AND FUTURE WORK.............................. 105

7.1 CONCLUSION.................................................................................................................... 105

7.2 RECOMMENDATION.......................................................................................................... 106
7.3 FUTURE WORK ................................................................................................................ 107

REFERENCE ............................................................................................................................ 108

APPENDIX-1............................................................................................................................. 112

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LIST OF TABLES

Table 2-1 Lean practices and their characteristics ..................................................................... 14

Table 2-2 Literature for “productivity improvement – footwear in particular” ......................... 25
Table 4-1 SWOT analysis of Ethiopian footwear ...................................................................... 37
Table 5-1 Export sales quantity in pairs of ASSC...................................................................... 40
Table 5-2 Annual productions (2020) ........................................................................................ 41
Table 5-3 Inventory by section ................................................................................................... 42
Table 5-4 Annual Downtime and cause of downtime ................................................................ 43
Table 5-5 Annual Defects, Rework &Reject (Jan 1/2020- Dec 20/2020).................................. 46
Table 5-6 Transportation wastage .............................................................................................. 47
Table 5-7 Transportation wastage for different option layout ................................................... 52
Table 5-8 Annual Availability of the case company .................................................................. 57
Table 5-9 Annual Performance of ASSC ................................................................................... 62
Table 5-10 Annual Quality for ASSC ........................................................................................ 62
Table 5-11 Annual OEE for ASSC ............................................................................................ 62
Table 5-12 Manufacturing lead time of SAWA Lafrica ............................................................ 67
Table 5-13 Current lead time of the product SAWA Lafrica ..................................................... 68
Table 5-14 propose for improvement for the current VSM ....................................................... 72
Table 5-15 Present and expected Labor of in the shoe production line ..................................... 72
Table 5-16 Future state VD and NVD time analysis of SAWA Lafrica shoe product .............. 73
Table 5-17 Future state Down Time (D/T), Cycle Time (C/T) and Up Time (U/T) data of
SAWA Lafrica ............................................................................................................................ 75
Table 5-18 Rating of Lean maturity response to PDC ............................................................... 77
Table 5-19 Rating of Lean maturity response to Sales and Marketing ...................................... 78
Table 5-20 Rating of Lean maturity response to Production ..................................................... 80
Table 5-21 Rating of Lean maturity response to Quality ........................................................... 81
Table 5-22 Rating of Lean maturity response to Purchasing and distribution ........................... 83
Table 5-23 Rating of Lean maturity response to Human Resource ........................................... 84

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Table 5-24 Improvement of Current performance & Proposed performance using Lean Tools
.................................................................................................................................................... 88
Table 6-1Existing company Lean maturity Level ..................................................................... 93
Table 6-2 Propose company Lean maturity Level ..................................................................... 99

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LIST OF FIGURES

Figure 2-1 Components of performance ...................................................................................... 9

Figure 3-1 Present process mapping of production line of Anbessa Shoe Share Company ...... 32
Figure 5-1 Pareto chart of Annual Down time ........................................................................... 45
Figure 5-2 machineries layout for option-1 ................................................................................ 48
Figure 5-3 machineries layout for option-2 ................................................................................ 49
Figure 5-4 machineries layout for option-3 ................................................................................ 50
Figure 5-5 Annual Availability of cutting section.................................................................... 60
Figure 5-6 Annual Availability of stitching section ................................................................... 61
Figure 5-7 Annual Availability of stitching section ................................................................... 61
Figure 5-8 Cause and effect diagram for low Productivity ........................................................ 64
Figure 5-9 Current VSM for SAWA Lafric ............................................................................... 69
Figure 5-10 Future VSM for SAWA Lafric ............................................................................... 76
Figure 6-1 Performance Improvement Model ............................................................................ 90

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ABBRVATION
ADLI - Agriculture Development Led Industrialization
ADLI- Agricultural Development Led Industrialization
AME -American Excellence Award
ASSC- Anbessa Shoe share company
BPR - Business Process Reengineering
BSC - Balanced Scorecard
EFI- Ethiopia Footwear Industry EFI
EIC- Ethiopian Investment Commission
ELFI-Ethiopian Leather footwear industry
ELI - Ethiopian leather industry
EPC- Export Promotion Council
EQA -Ethiopian Quality award
FDI- Foreign Direct Investment
HR -Human Resource
LAI -Lean Advancement Initiative
LDI- Local Direct Investment
LESAT -Lean Enterprise Self-Assessment Tool
LFI -Leather Footwear Industry
LIDI- Leather Industry Development Institute
LLP- Leather and leather
NBE-National Bank of Ethiopia
NVAD -Non value added activities
OEE - Overall Equipment Effectiveness
PDC -Product development Center
PM- Performance measurement
RHS-Raw Hide and Skin
RPS - Renault Production System
SME - small and medium enterprise
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CHAPTER ONE

1 INTRODUCTION
Economic development is among the main aims of every country in the world and economic
growth is fundamental to economic development. Among the different variables that contribute
to economic growth export is the one that accelerators the growth. Agosin (2007) finds that
export diversification has a stronger effect on per capital income growth.
Most leather goods and footwear manufactured are export-oriented. In today’s manufacturing
field higher productivity achievement is a very important factor. With the higher productivity,
other various factors must be taken into consideration in manufacturing industries such as global
competition, lead time and customer need in terms of quality and quantity(MA & NA, 2018)
Export performance measures the extent to which the firm meets its vision when exporting a
product in an international market, whether economic (profits, sales, costs, etc.) or strategic
(expansion of market, increase in market share abroad, etc.), through the planning and execution
of its global marketing strategy.(Cavusgil & Zou, 1994).
The Ethiopian leather industry (ELI) has comparative advantage in the sector as it is capable
with abundant livestock resources. In livestock resources Ethiopia stood second from Africa and
8th from world. This huge amount of population in livestock provides sufficient opportunity for
the growth of the sector.
The leather and leather products (LLP) sector is the fifth largest export sector of Ethiopia which
is considered as the highest priority sector of the government for its increasing value addition.
Finished leather represents the largest share of Ethiopia’s output and export and it accounted for
around 60 per cent of total leather-related exports in 2016. The value of exports of crust leather
fell from more than $90 Million in 2011 to nil in 2016 after the introduction of a 150% tax on
export of semi-finished crust leather in December 2011. In parallel, finished leather exports rose
from $25.3 Million to $67.6 Million during the same period, the main destinations being China,
Hong Kong, Italy, Thailand, India and United Kingdom which constitute 88.8% share
(Company, 2018).
Due to the fact that the Ethiopian Leather Footwear Industry (LFI) has a huge potential for
boosting the country’s economy, the government gives higher priority to this sector. However, its

Etabezu Nemera Page 1

overall productivity of the sector is unsatisfactory due to various factors which include: poor
performance measurement practice, limitation with inputs, poor production planning and control
practices, high manufacturing cost. Most performance measurement and improvement methods
are insufficiently prepared to learning and only few consider the personal ambitions of
employees, which in turn lead to insufficient change in the organization’s performance. Even the
existing methods are not suitable, mostly financial based and also face failure in the
implementation due to poor implementation strategy or guideline (Kassaneh & Havinal, 2017).
According to the study by Kassaneh & Workalemahu, 2018 to improve Ethiopian footwear
industry a new method for performance measurement and improvement called “total
performance score card (TPS)” together with measurement framework and guideline to
implement TPS as a result the performance of Ethiopia Footwear Industry (EFI) has been
enhanced.
Gonfa revealed in her research the Ethiopian footwear industry to be globally competitive or to
improve performance the researcher recommended, import substitution strategy in complement
with the export-oriented strategy, Promoting Investment on supporting , Government
involvement to create access to reliable and low cost of inputs and access to finance is crucial for
shoe industry competitiveness, Thus the researcher focused on the external factor (Gonfa, 2012).
Furthermore, according to the study by Eshetu, the factory's productivity is low when compared
to an international benchmark and factory standard. Human, machine, material, method, process,
and organizational factors all contribute to multidimensional productivity. The researcher created
an integrated continuous productivity improvement model that included lean, ergonomic, and job
analysis to increase the productivity of the case business (Eshetu, 2017).
To compute in the global competition firms within this sub sector and understanding the
productivity measurement and improvement tool that brings continuous improvement in different
level that conveys the firm to improve the productivity.
The use of Lean maturity and value stream mapping (VSM) concepts can be uses in minimizing
the non-value added activity(NVD). As a result, using Anbessa Shoe Sc. as a case company, this
study focuses on identifying obstacles to improving productivity and developing productivity
improvement model for Ethiopian footwear industries.

Etabezu Nemera Page 2

1.1 Background of the study
In 2018, the value of export leather and leather products increased by 4.8 % to reach 5.2 bln
USD, while imports increased by 3.8 % to reach 4.5 bln USD. China, Italy and Hungary were the
top exporters in 2018. They accounted for 21.0, 9.3 and 7.1 % of world exports, respectively.
USA, Romania and Germany were the top destinations, with respectively 18.1, 9.6 and 5.7 % of
world imports
The Ethiopian leather industry is a relatively older industry with more than 80 years of
involvement in processing leather and producing leather products. Indeed Ethiopia possesses one
of the world largest livestock populations, this enormous population of livestock provides ample
opportunity for the development of the leather industry in the country. However, the livestock
potential remains lagging behind in its role to accelerate the country’s economic development.
Lack of effective, efficient and coordinated support in terms of supply of raw hides, skins and
other production inputs as well as other related problems are among the challenges faced to
achieve the target(UNCTAD, 2018)
Ethiopia has one of the largest livestock sector in the world and the formal LLP sector has
existed for almost a century (LIDI 2017). The government under the Emperor Haile Selassie
started to regulate the sector and established the Livestock and Meat Marketing Board in 1964
(Schaefer & Abebe, 2015). The Dreg-regime prohibited foreign investors and established the
National Leather and Shoe Corporation to manage eight tanneries and six large shoe factories.
The value of LLP exports increased from an average of USD 53 million between 1996 and 2000
to USD 135 million between 2013 and 2017 (UNCTAD, 2018) the increase in the value of
Ethiopian LLP sector was initiated by the introduction of an export tax on different types of
semi-processed leather and increase in new entrants of foreign direct
investment (FDI) companies in the leather footwear and gloves sub-sectors.
Today, the value of Leather further prepared after tanning or crusting of the year 2014,2015 &
2016 is USD 62.8 million ,USD 64.7 million & USD 42.3the million respectively. Similarly,
employment almost doubled from 11,365 employees in 2012/13 to 21,094 in 2017/18 mainly due
to growth in the footwear-sub-sector. Employment levels in tanneries, on the other hand, are
stagnating(UN, 2016).
The export of Ethiopia leather footwear started only in 2005; the export value has been growing
steadily since then and is expected to make a big impact on the Ethiopian economy. Also the job

Etabezu Nemera Page 3

opportunities the industry creates could make a significant impact on poverty reduction. At the
end of 2014/15 budget year total of 11,138 jobs are created in the sub sector among this females
employee took 6,114 and the remaining 5,024 are taken by male employees. On the other hand,
8,310 employees (4,973 female and 3,337 male) are working in large and medium factories;
2,828 workers (1,141 female and 1,687 male) involve in different cluster and micro and small
enterprises.
However despite the efforts made to develop the sub sector by different stakeholder such as
UNIDO, LIDI, and other concerned bodies, still these industries are not competitive enough
within the rapid pace of globalization as expected. One of the main reasons for this is their low
productivity as compared to their competitors which are found in East Asia and European
countries. The constraints in the sector are lack of awareness to compete in the international
market, low productivity of the sub sector which is characterized by shortage of quality skins &
hides, high production waste, low utilization of capacity, absence of good work procedure, poor
work standardization(Cherkos, 2011; Faruk & Subudhi, 2019; Gebrewahid & Wald, 2015) The
opportunity in the ELFI are locally sourced raw material combined with inexpensive labor and
these position the country well to grow in the global marketplace.

In 2018, Ethiopia had 30 tanneries with 7,516 employees processing hides and skins to different
types of finished leather. By mid-2018, the footwear sector consisted of a few thousand artisanal
footwear manufacturers and 19 to 22 formal firms. The formalized footwear sector employed
11,145 people and produced roughly 5 million pairs of leather shoe in 2017/18(Grumiller, 2019)
There are 30 tanneries and having a possibility of producing up to 500 million square feet of
finished leather per year there are 21 medium and large scale footwear manufacturers. The
production capacity of shoe factories including production of Small and Micro enterprises rise to
15 million pairs per year. There are more than 43 garments and goods factories and four gloves
factories producing leather gloves, garments, bags & different kinds of leather articles. There are
over 400 small and medium enterprises are individually producing leather products with capital
ranging from 100,000 ETB – 20 million ETB in different regions of the country.(LIDI, 2019)

1.2 Statement of the problem

Even though Ethiopia has a comparative advantage of footwear industry as compared to China
(16.22 % leather foot ware world exporter) in lower cost of production only few companies have

Etabezu Nemera Page 4

used the advantage. One of the main reasons is low level of productivity in the sub sector. For
example, international benchmark has a production of 6500 pairs/shift/day whereas the
achievement of most of EFI is not more than 2000 pairs/shift/day. Also, the international
benchmark has labour productivity 16pairs/shift/person but Ethiopian shoe factories have about 4
pairs/shift/person (Eshetu, 2017). The major problems outlined in the case company are
discussed as follows.
i. Production section

High manufacturing costs results from rework (61,903pair of shoe per annum),Poor and
disorganized production plan result from no systematic method of authorizing, documenting and
recording the various stages of plans in such a way that they can be used as feedback for
assessing and tracking results, as well as taking corrective action owing to a high rate of
downtime, defect rate ,excess inventory , Poor plant layout result in enhance transportation
wastage , Low labor productivity and Low overall equipment efficiency (OEE ) are 3.389%,
9.629%,14.93%,21.35% , 3.389pairofshoe/shift/worker and 20% respectively.
ii. Product development section

There is no known method of forecasting fashion considering international competitors due to

limited resources, lack of skill and technology accessibility. Due to these they do not use
innovative process instead they are using reverse engineering and also the department uses time
study other than method study.

iii. Sales and Marketing process problems

They also do not perform market research and sell their goods in a small way, The customer and
the industry don’t have any sharing of resource and database,Weak distribution system
management: high inventory hold-up - finished products stock, resulting in capital constraints,
obsolete (damage, faulty, or despair) stock in each retail store, low annual sale results, and high
selling and distribution costs.

iv. Purchasing and Distribution process problems

Etabezu Nemera Page 5

Poor inventory management with retail shops and warehouses, Stick on limited number of
suppliers they do not update themselves as per the need of the market and lacks measuring the
performance of the suppliers.

v. Human Resources problems

Employee dissatisfaction (unsatisfactory pay, no house allowances) reduces labor productivity,

Skill enhancement trainings are not delivered on a regular basis in a planned and recorded
manner, such as by creating appropriate training records such as a list of defined training topics
that occur as a result of actual skill gap audits and training reports.

1.3 Research Questions

This research attempts to answer the following basic research questions:-
❖ How does a company evaluate overall productivity?
❖ How to minimize the non-value added activities (NVAD) using the current value stream
mapping (VSM)?
❖ How does a company determine its overall leanness, PCE, Lead time, OEE, VSM and
maturity level?
❖ What are the challenges of the case company in improving of productivity?
❖ What kind of productivity performance improvement model can be used to address the
issue?

Etabezu Nemera Page 6

1.4 Objectives of the study

1.4.1 General Objective

The general objective of the study is to improve productivity of ASSC through lean tools that
works to enhance productivity of ASSC

1.4.2 Specific Objectives

The specific objectives of the study are:-
❖ Examine the factory's existing productivity.
❖ Identifying the value added activities (VAD) and non-value added activities (NVAD)
so as to minimize the lead time of the factory.
❖ Measure and assess the factory's current PCE, Lead time, OEE, VSM and Identifying
its overall leanness and maturity level of case company and also Propose future VSM
and improving PCE and Lead time
❖ Identify the challenges of the case company in improving of productivity
❖ Develop a model for improving productivity of a case company

1.5 Significance of the Study

Through the implementation of an improving productivity model for enhancement productivity
factors available in the factory, the study's findings support ASSC as well as other footwear
companies. Furthermore, the enhancement strategy results in noticeable improvements in the
footwear manufacturing process as well as general working conditions.
The research will also have leanness and maturity level measure that will help to increase the
productivity of the manufacturing process.
The study findings will be used as an input for academician, research improvement model for
other related manufacturing sector to improve their productivity.

1.6 Scope and Limitation of the Study

1.6.1 Scope of the Study

The study was focused on improving productivity and challenges that hinder the productivity in a
case to ASSS. ASSC is taken as a show case because it is one of the oldest shoes factories in the
country and a market leader, commanding approximately 65% to 70% of the local shoe retail

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business. It also contributes significantly to the generation of foreign currency for the country by
exporting shoes to different parts of the world with more than 37 retail shops all over the nation,
more than 80% of its total production is intended for export market, it’s one of the industries
equipped with the art of the technology machineries to European standard complying with
international measurements..
Methodologically, this study was applied both qualitative and quantitative aspects of research so
as triangulate the instruments from different directions. The participants and head of firms are
located in case company, which in turn limits the findings to be applicable to other industries,
engaged in footwear of the country. Meanwhile, there is an indication that the findings of this
study can be generalized to other industries engaged in footwear of the country having similar
structure, settings and group of an industry.

1.6.2 Limitations of the Study

Due to COVID-19 the data collection period were not be accomplished according to the plan and
it cause prolonged time. This cause the researcher to incur additional resource and time In
addition to this the data collection which were planned were group discussion was changed into
one-to-one interview. But these problems have been fixed by the use of observation, secondary
data from the literature and the data from the case company.

1.7 Organization of the study

After discussion of first chapter on the introduction, background, statement of the problem,
research question, objectives, significance, scope and limitation of the study; the second chapter
presents the important literatures surveyed from reference materials. Chapter three presents the
methods of the research, ways of data collection strategy and source of data and Tool and
method of Data Analysis; Chapter four provides overview of Ethiopian footwear sector; Chapter
five gives data collection, analysis and interpretation; Chapter six gives proposed the future
states of shoe production line and customized for model implementation process proposed. The
final chapter presents the conclusion and recommendations drawn from this study. In addition,
the chapter gives the possible study areas that can be undertaken in the future.

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CHAPTER TWO

2 RELATED LITERATURE REVIEW

2.1 Introduction
In the improving productivity of the industry measuring the productivity of the industry is the
first task to do without measuring the productivity it is impossible to improve it. Therefore, in
this research both productivity measurement and improvement were studied. To understand the
subject matter of productivity measurement and improvement different journals, articles, and
books are reviewed. Hence, this chapter gives brief discussion of the various concepts of
productivity measurement and improvement

2.2 Definition and concepts of productivity

The terms performance, productivity and profitability (PPP) have coinciding meanings. The
three terms are labelled as ratios, and they are used easy to confuse. These measurements terms
are crucial ingredient of improvement work, and they are a vital ways of measuring information
so as in the improving the output of the industry. The results in the measurement help in
assessing the problems in improvement and decide the measures or approach for improvement
and also help evaluate the results of an improvement program. In profit making & non-profit
making organization performance also defined as proper combination of efficiency and
effectiveness .Efficiency mean to “doing things right” and effectiveness mean to “doing the right
things” (Grünberg, 2004).

Figure 2-1 Components of performance

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Depending on the purpose Performance of a manufacturing firm can be defined in several ways.
From a socio-economic perspective, profit is the most common measure of a firm’s performance.
Other indicators include internal rate of return, productivity, superior quality and reliability,
flexibility, efficiency, effectiveness, capacity utilization, growth of output and net present value,
and market share. Manufacturing performance as the relationship between the quality and
quantity of physical outputs in relation to inputs used in the production process. Productivity is
one indicators of performance under the umbrella of performance.
So as to determine the level of performance, it should be measured .The basic logic behind to
performance measuring is that setting plan and detecting deviation from the sated plan. In
measuring Performance information gets on a specific program such as on the condition on
inputs, activities, outputs, intermediate outcomes, or end outcomes. Performance measurement
includes both the collection and analysis of numerical data on each activity on the process
(Wholey, 1999).

2.3 Productivity
Productivity measure the efficiency and effectiveness of organization resource (input) are
utilized or the creation of products or services (output).In footwear industry the “input “are
manpower, machine and factory resource to make the product and the “output” is the number of
product produced. Productivity expressed in terms of labour productivity, machine productivity
(Overall Equipment Effectiveness (OEE)).(Ali, 2018)
Overall Equipment Effectiveness (OEE) is the gold standard for measuring manufacturing
productivity.
Simply said – OEE identifies the fraction of manufacturing time that is genuinely productive. An
OEE score of 100 % means you are manufacturing only Good Parts, as quick as feasible, with no
Stop Time. That means 100 % quality (only good parts), 100 % performance (as quickly as
feasible), and 100 % availability in OEE terms (no Stop Time).
The shoe industry's low productivity can be attributed to a variety of factors, these are: (1) a
lack of technology investment, (2) lengthy supply chains carried out by businesses and (3) the
company's machine productivity is dwindling. The Kaizen system was introduced by the case
company in order to increase and improve productivity. Despite the fact that the program has
been implemented, the corporation has never measured the equipment’s or its employees'
effectiveness. Breakdown, Setup and Adjustment, Idling, Reduced Speed, Quality Defect, and

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Start-up are all challenges in the stitching section of case company, so the company cannot
identify the variables that cause losses in operations, resulting in low plant or equipment
effectiveness.
OEE is made up of three primary pieces, one of which availability (time of machine availability),
quality (number of units produced) and performance (number of units produced)
The outcomes of mathematical calculations OEE is expressed as a percentage (precent).
Calculations of OEEon the basis of an equation (1)
𝑂𝐸𝐸 = 𝐴𝑣𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 ∗ 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑅𝑎𝑡𝑒 ∗ 𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝑅𝑎𝑡𝑒……. (1)
• Availability
The availability of equipment's net time is referred to as loading time. During a period of time,
such as a day, week, or month, as demonstrated in a formula (2)

𝑅𝑢𝑛 𝑇𝑖𝑚𝑒
𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = Dailiy working hour ∗ 100%……. (2)

Run Time is simply daily working hour less down Time, where down Time is defined as all-
time where the manufacturing process was intended to be running but was not due to Unplanned
Stops (e.g., Breakdowns) or Planned Stops (e.g., Changeovers).
• Performance Rate
Performance takes into account anything that causes the manufacturing process to run at less
than the maximum possible capacity when it is running...

The performance rate of a machine is the rate at which it performs. Producing products on a line
or at a plant dependent on operating conditions capacity -based as defined in the following
formula

Performance is the ratio of Actual Capacity to Design / Installed Capacity. It is calculated as

𝐴𝑐𝑡𝑢𝑎𝑙 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑅𝑎𝑡𝑒 = Design(Installed Capacity) ∗ 100%……. (3)

• Quality Rate
Is the average level of products produced according to standards compared to products that not in
accordance with the standards. (Wahyudin et al., 2019).
𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑒𝑑 𝐴𝑚𝑜𝑢𝑛𝑡−(𝑅𝑒𝑗𝑒𝑐𝑡+𝑅𝑒𝑤𝑜𝑟𝑘)
𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝑅𝑎𝑡𝑒 = ∗ 100%……. (4)
Processed Amont

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2.4 Productivity Measurement
The purpose of the productivity measurement is the first step to evaluate and comprehend the
current state of the process. The steps involving in productivity measurements are collecting data
on measures of quality, cost, and throughput/cycle time. Measurement is the ongoing monitoring
and reporting of program accomplishments, particularly progress towards pre-established goals.
Productivity measures the ratio of type or level of input used to the direct products and services
delivered by a platform (outputs). (Angerasa, 2018)

2.5 Productivity Improvement Tools

In productivity improvement, it is significant to link the actions to productivity measures and set
targets which should be achieved based on the strategy of the company. It is important to support
continuous improvement at a strategic level as well as to give the continuous improvement work
strategic direction to maintain positive effects.
The use of the various improvement models and tools has been variable with equally variable
impact. The aim of the review under this sub-section is to raise awareness and understanding of
some of the more popular productivity improvement models and tools available. And also the
abundance of approaches in the literature indicates that no single improvement program appears
to have comprehensively met the requirements of manufacturing productivity improvement. The
following tools are enabling the industry to compute in the market
• Balanced Scorecard(BSC)
These tools look at customers, finances, internal processes, and learning and innovation. To be
balanced scorecard is one that contains: -multiple perspectives of performance -leading and
lagging measures -internally focused and externally focused measures -short-term and long-term
measures -quantitative and qualitative measures
Several researchers including noted that the firm performance is an integral part of the enterprise
itself because this is the primary indicator where people can judge whether the enterprise is
doing well or not The firm performance can serve some functions as well as a few purposes.
(Journal et al., 2019; Tavani et al., 2014) In the small and medium enterprise (SME), the
balanced scorecard can be applied to recognize the linkages among the goals and objectives and
organizational outcomes. The BSC relations financial consequences with operational data
thereby creating avenues to modify or line up operations with long-term enterprise goals, such as

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how the BSC has been adapted to measure the firm performance in the SMEs are addressed in
the remainder of this segment (Niven, 2011)
• Business Process Reengineering( BPR)
It concentrates on deep-seated change to improve operations. This approach associate the hard
case for reengineering with the softer people aspects ensuring the solution can be implemented
with minimum problems
• Total Quality Management (TQM):
Focus on overall activities on the industry and control business processes and customer
satisfaction. Activities such as improvement, statistical control, supply control and quality
engineering are ingredients of TQM.
• Kaizen:
Means continuous improvement which is a Japanese business philosophy of making continuous
improvements and enhancements in business processes. Kaizen techniques are based on the
principles of focused continuous improvement, commitment of leadership, empowerment of
staff, hands on doing not proposing, and elimination of waste and low budget incremental
improvements with occasional breakthroughs.
• Six Sigma:
This means that there are just six standard deviations between the average and the minimum or
maximum acceptable standard. In practice this means that very few outcomes deviate from the
ideal. The idea is that if you can measure the number of defects in a process, you can then
systematically eliminate them and optimize the process.
• Lean :
It originated in the mass production setting of the automobile industry, specifically the Toyota
Production System (TPS). It is primarily focused on the minimization of waste of any form.
When wasteful action is eliminated the result is that less effort, space, and capital are required
and lead time is reduced whilst quality increases and the cost of quality decreases. From its
manufacturing roots, lean has subsequently expanded to business practice generally.

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2.6 Lean Concept
Lean is an administration approach for progress as well as a methodology that is attentive in
reducing cost, cycle time, waste and increase productivity (Eshetu, 2017). It also assesses a
process by equating the value-added steps versus the non-value-added.

2.7 Evolution of Lean

According to The Lean Management Maturity Self-Assessment Tool Based on Organizational
Culture Diagnosis Wieslaw Urbana,* Lean is not a single piece of introduction into the industry.
It is a continuous and never- ending process of improvement. Therefore, understanding the
advancement in a Lean journey is very valuable for managers. Lean manufacturing in Toyota
Production System (TPS)emphases on eliminating waste, reducing inventory, improving
throughput, and inspiring employees to bring attention to problems and suggest improvements to
fix these(MA & NA, 2018). The main scope of lean manufacturing is to remove waste and
decrease the cycle time to rise the profit and productivity by increasing the production and
decreasing the cost of product .A main concept of lean manufacturing is pulling production in
which the flow on the factory floor is driven by demand from downstream pulling production
upstream and & its scope is to eliminate waste and reduce the cycle time as a result increase the
profit and competitiveness (MA & NA, 2018; Ramakrishnan & Nallusamy, 2017).
The lean philosophy principles were originally applied in 50s in the motor’s production and later
starting from 2000 and onwards, the lean concept has participated in a greater degree of
eventuality and the scope has been distended to include the organizational learning perspective
and currently the lean concept is applicable to both production and service industry.
On Table 2-1 the different practices from the Lean philosophy and their characteristics are
presented (Bezanue Eshetu).
Table 2-1 Lean practices and their characteristics

Lean practices Lean Characteristics

Production levelling ,Pull system ,Production according
Just in Time (JIT) to Takt time and Process synchronization
Producing in small batches, Waste elimination,
Reduction of set up time, Reduction of lead time and
Resource reduction Reduction of stock

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 Team organization, Multidisciplinary training and
Human relation management Workers involvement
Improvement circles, Continuous improvement (kaizen)
Improvement strategies and 5 why analysis
Automation, Failure prevention, 100% inspection and
Defect control Line stoppage
Mapping value flow(VSM and flow charts) and
Supply chain management Workers involvement
Standardization 5 s, Standard work and Visual management and control
Policy deployment, Multi manning, Reduction of work
Scientific management force, Layout adjustment and Cellular manufacturing
Source: (Eshetu, 2017)

2.8 Lean Levels

Creating a lean culture in a company necessitates behavioral improvements at all levels of the
organization. To implement improvement, there is a clear need to use supportive resources and
trainings. On the one hand, being lean is often part of a company's core business plan and should
be included in any significant and strategic decision. Equipping workers with effective
techniques and procedures and encouraging them to use a suitable collection of those techniques
for any challenges or improvement events, on the other hand, can have a significant effect on a
company's success.
There are two key areas of realistic and academic studies that have been attempted to drive lean
to a more efficient and successful definition. First, the strategic viewpoint of lean five concepts,
which focuses more on the intellectual perspective of lean as a management theory and a way of
thinking. Second, lean as an organizational improvement strategy, which focuses on lean as a
collection of management strategies and tools for improvement from a functional standpoint (Ali
Maasouman & Demirli, 2015).

2.8.1 Lean Principles in Strategy

Lean, according to(Ali Maasouman & Demirli, 2015) occurs on two levels: strategic and
operational. They concluded in their study on the evolution of lean that recognizing the
difference between lean thought at the strategic level and lean development at the operational

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level is critical to implementing the right techniques and strategies and creating value from
customers.

2.8.2 Lean Principles in operational Level

The main objective of the Lean management in the operational level standard is to increase the
value creation through waste reduction, meaning, create more value with fewer resources. As
described on the book Lean thinking, Womack et.al (1996) refined lean principles to five.
• Value and Waste (MUDA):
To identify “value”, from the customer perspective, is important to answer the questions: What
do clients want? When and how do they want it? What combination of resources, abilities,
availability and price is the ideal one for the client? Muda is the Japanese word for “waste”,
specifically any human activity which absorbs resources but creates no value. Lean means
“manufacturing without waste”. Waste is everything other than lowest amount of equipment,
materials, parts, and working time that are completely vital to production. According to
Highways England Lean Maturity Assessment (HELMA, 2018) the eight types of waste are :
1. Transportation: Diminish the distance between processes, and avoid temporary material
locations. The causes for excessive transportation are poor route planning ,complex
material flows , poor layout and disorganized workplace
2. Inventory (stock) excess: Offer material when needed by the customer and only in the
quantity required. The causes for unnecessary inventory are over-production ,unbalanced
line , long lead times ,high rework rate and lack of material requisition and issuance
standards
3. Motion excess: Simplify standardized work sequence to eliminate redundant movements.
The causes for unnecessary motion are poor lay-out and housekeeping , disorganized
work place and storage locations , unclear, non-standardized work instructions and
unclear process and materials flow
4. Waiting time: Assure machine availability, assure manpower & assure resource, Perform
preventive maintenance. The cause of waiting are line imbalance ,inflexible work force ,
unscheduled machine downtime ,long set-up , material shortage or delay and manpower
shortage or delay
5. Over production: Produce only the amount of goods necessary-not faster, sooner, or
more. The causes for over production are volume incentives (sales, pay, purchasing) ,high

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 capacity equipment ,line imbalance; poor scheduling, poor production planning and cost
accounting practices that encourage buildup of inventory
6. Over processing and extra process steps: - Provide only the required amount of
processing and effort for each operation. The causes for over processing are unclear
customer specifications , frequent engineering changes and unclear work instructions
7. Defects or rejects: - Perform each operation without error. Build quality into every
process. The causes for defects are unclear customer specifications ,incapable processes,
lack of process control, unskilled personnel and incapable suppliers
8. Skills misapplication: encouraging and making constructive use of the creativity. The
causes skills misapplication are imagination of the people actually doing the work
Most companies waste 70-90 % of their available resources. Even the top lean
manufacturers possibly waste 30 %. Interestingly, every company has to find its own way to
implement the lean method: there is no universal way that will apply to all. Despite the wide
knowledge and available resources, many companies are struggling to stay “lean”.
• Value Stream mapping (VSM):
It is a method for demonstrating and examining the logic of a production process. The map gives
a graphical summary of the stream of material and information in a production process. It is the
set of all the value added and non –value added activities.
Through reviewing different literature the advantages of VSM is described as follows
Shows a clear image for the manufacturing process
Identifies the loss & the causes for the loss from the value stream
Allows envisioning the future effects of the improvement measures
Allows fast & well-organized actualization of the process within the company
Recognizes the prospects of improving the processes
Uses a common language for all the processes that take place within the company
Can be used as a base for upgrading plan;
Facilitates the understanding of products cost components
Allows quick reaction to demand variation
Facilitates the growth of contribution to added value
Has as effect the reaction the reduction of production time
Standardization of production process

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 Offers an overview image by incorporating different subjective views
The disadvantages of VSM are:
In case of large manufacturing nomenclature VSM is hard to achieve
Regardless of the human resources VSM presents the situation technically (Ofileanu,
2015)
• Flow: - the lack of a continuous value flow is the main responsible for huge loads of
stock either on storage houses as throughout the production line, constantly consuming
human capital.
• Pull: - The pull system, on the other hand, is the capacity to design, schedule and make
exactly what the customer needs. It means you can throw away the sales forecast and
simply make what customers actually tell you they need.
• Perfections :- This principle implies the strongest and continuous commitment of people
in order to improve all the processes and activities in companies. . This is implied on the
key idea of Lean Production: “doing more with less” and less means less space occupied,
less transports, less inventories, and most important, less human effort (Eshetu, 2017)

2.9 Lean practices

According to Setianto & Haddud, 2016 Lean manufacturing (LM) is one of the management
approaches that was imitative mostly from the Toyota Production System (TPS) by the idea of
eliminating wastes from manufacturing systems. As a long term method with a complex process,
organizations may face difficulties to achieve maximum benefits from lean implementations. It is
significant to remind that what has been attained in Toyota cannot be easily adopted in other
manufacturing businesses. As information, adopting lean practices is not an easy mission and
many companies have described implementation difficulties the researchers also argue that the
obstacles of lean implementation are mostly related to social and managerial issues. In measuring
& assessing lean development practices, defining the maturity level is very important to describe
sequential steps and guide the organization to achieve maximum leanness levels and
manufacturing business performance .Therefore, it is important to clearly define each maturity
level within milestone attributes being assessed including tactical and strategic nature.

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2.10 Existing Lean Management maturity assessment model
As a starting point for developing an instrument to assess lean service adoption, a literature
review was conducted. The literature review was intentionally broad. In improving the
performance first the current level of performance should be measured the researcher used the
terms “lean” and “leanness” interchangeably together with four keywords related to
measurement: “assess”, “measure”, “evaluate” and “audit”.
Instruments for assessing the adoption of lean in manufacturing have been around since the mid-
1990s (Malin Malmbrandt and Pa¨rA˚ hlstro¨m Stockholm, 2015). Three main types of items
could be identified in lean assessment .These are enablers of lean adoption, the second focus on
use of lean practices, and the third on operational performance.
(1) Enablers of Lean: - often include management commitment, training for employees and
time and resource allocation .These types of items stress the importance of achieving behavioral
and even cultural change for the adoption of lean to be sustainable.
(2) Lean practices: - focus on the way of working that is seen as consistent with lean principles.
Examples of these types of items can be usage of processes.
(3) Operational Performance: - refers to items measuring operational performance and are
similar to financial performance measures in that they focus on the results of lean adoption, for
example, increased productivity
In general, assessment models or maturity models can be a useful tool for assessing an
organization's or a process' ability. The findings are then used to create a roadmap for the
organization's or processes ideal future state. Qualitative and quantitative surveys, as well as
academic and industrial research, are suggested in the literature to capture the current state of
organizations.

2.10.1 Qualitative Assessment for LMM

In recent years, a number of qualitative assessment methods for the evaluation and
implementation of lean concepts have been developed. On the operational level, for example,
Renault Company created the "Renault Production System (RPS)" based on the Nissan
Production method. In order to raise RPS has set four strategic goals for customer loyalty.
Achieve the required level of quality
Lower average production costs
Output at the right time and in the right quantity

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 Shared respect and personal responsibility
To improve industrial output, RPS rules, procedures, and techniques are used Product and
Process Design, Inbound Supplying, Outbound Logistics, and Manufacturing are the four
primary manufacturing roles. The RPS visual model depicts the equipment and procedures used
by Renault in its production system. RPS also develops a regular excellence roadmap, which
outlines how the RPS is implemented and evaluated. The RPS roadmap also ensures that all
change programs are coordinated and moving in the same direction as the RPS plan. The
roadmap is backed up by an evaluation framework that provides general checklists for system
criteria at each stage of excellence in the system's eight pillars. The method is evaluated in each
pillar based on the "desired degree of generalization," "management," and "desired outcomes."
For over fifteen years, the Massachusetts Institute of Technology (MIT) has been conducting
research and promoting enterprise-level transitions in large complex sociotechnical enterprises
through its Lean Advancement Initiative (LAI) research team. These businesses have operated in
a variety of industries and government agencies, including aerospace, automobile,
communications, health care, transportation, manufacturing, military procurement and logistics,
testing laboratories, and more. What has come out of both field action study and its analysis? The
definition of "overarching" enterprise values and transition methodologies that are independent
of industry or entity is used in case studies in graduate courses. The following five elements
make up a transformation system are Enterprise Thinking Key Principles, Enterprise
Transformation Roadmap, Lean Enterprise Self-Assessment Tool (LESAT), Enterprise Strategic
Analysis for Transformation (ESAT), and Enterprise Architecting (Nightingale, 2009).
To complete the model, LAI proposed a lean evaluation system, lean Enterprise Self-Assessment
Tool (LESAT). LESAT is a useful tool for determining an organization's readiness for transition
as well as its maturity level. The MIT-developed "Lean Enterprise Self-Assessment (LESAT)" is
aimed at the enterprise leadership team and is designed to help both the "as-is" (current state) and
"to-be" (desired state) states of the company in terms of lean manufacturing. With 54 lean
enterprise activities, LESAT recognizes three major dimensions of an enterprise: lean
transformation/leadership, life cycle processes, and supporting infrastructure processes. Each
activity is graded on a scale of one to five, with a maturity matrix evaluation sheet included.
LESAT is a systematic, informative, and action-oriented tool that identifies the gaps and
provides a roadmap for achieving the desired maturity level. (Kolla et al., 2019)

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Main characteristics of each level in LESAT has described as follow. These are :-
• Level 1: “Some knowledge of this practice; intermittent improvement” In a few places,
activities could be underway.”
• Level 2: “General awareness; ad hoc solution used in a few cases.” areas of varying
levels of efficiency and long-term viability.”
• Level 3: “A formal approach/methodology used in a variety of situations. ”Stages in most
areas; supported by metrics; excellent “maintenance.”
• Level 4: “Continuous refinement and change around the board” the company;
improvements in performance are maintained.”
• Level 5: "Excellent, well-defined, creative approach is completely implemented across
the extended enterprise (across internal and external value streams); recognized as best
practice"

2.10.2 Quantitative Assessment for LMM

The second set of assessments evaluates leanness based on performance outputs produced as a
result of lean implementation. Data envelopment analysis (DEA)-leanness, for example, was
proposed by (Ali Maasouman & Demirli, 2015; Wan & Chen, 2009) as a single index of
leanness standard. They developed a lean measurement method and determined the future
improvement path using a Slacks Based Model (SBM).

2.11 Selection of an appropriate model or tool

Each tool have its own place to apply and to solve the problem and when we apply the tools each
have both positive and negative components and the situation and where it is used affects the
applicability. Before selecting a specific productivity improvement tool or approach. First the
following questions should be address. These questions are: What are you targeting to change
and improve? What result are you looking for? Does the improvement need to be complete
covering all the organizations activities or designed for a specific task, service or area of
activity? What is the key driver for change i.e. inspection or review, change of staff, etc. What is
the timescale for the change? What resources are available? To what extent do you want to
involve staff in the changes? Individual authorities and organizations will need to undertake
research to decide on the approach or balance of approaches that would best suit their
organization and circumstances.

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Industries and other organizations are always targeting for better productivity. There are
accessible a series of tools, methodologies and models designed to improve their industries and
achieve higher productivity. The Lean Management approach looks to be the most active tools in
terms of attaining substantial performance improvement in a comparatively fast way. Lean
maturity tool is helpful for companies in many ways, mainly in thoughtful existing gaps in Lean
acceptance and recognizing further change paths.
Lean Management's development route is unique in each organization and Lean transformation
is intensive on Lean practices these are tools and techniques. Lean practices might considerably
vary between organizations targeting at Lean excellence. . For this research the idea of a Lean
maturity assessment is based on organizational culture is intended judge an organization & the
qualitative evaluation of lean maturity assed (Urban, 2015).
There is a wide variety of lean strategies and approaches which can be used to improve the
organizational effectiveness and performance. With the widespread adoption of the lean
production model, the number and variety of management tools associated with it has grown.
In his book "Toyota Production System: Beyond Large-Scale Production,"(Langstrand, 2016)
presented the core TPS principles and techniques. TPS House, a demonstrative model of the
Toyota Production System, depicts a range of key tools 22 and techniques under the two pillars.
Just-in-time and automation (Jidoka) is the two foundations, and the tools/principles are as
follows:
Heijunka: - “Leveling the type and quantity of production over a fixed period of time.
This enables production to efficiently meet customer demands while avoiding batching
and results in minimum inventories, capital costs, manpower, and production lead time
through the whole value stream.” https://www.isixsigma.com/methodology/lean-
methodology/heijunka-the-art-of-leveling-production/ accessed in Jun 16,21
Standardized work: - defines how a job is performed; it details the interaction of the
operator and machine or process to complete the work as “waste free” as possible.
Kaizen: - Kaizen is a Japanese term meaning "change for the better" or "continuous
improvement." It is a Japanese business philosophy regarding the processes that
continuously improve productivity and involve all employees.
https://www.investopedia.com/terms/k/kaizen.asp accessed in Jun 16,21

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 Continuous flow: - Lean method that allows the act of moving a product through the
production process from start to finish without stopping. In pure continuous flow, the
cycle time equals the lead time, as the product never sits in a queue waiting to be worked
on
Takt time: Takt-time is the unit of time in which a product must be produced (supply
rate) in order to match the rate at which that product is needed (demand rate). It is
calculated by dividing the total available time per day by the daily customer demand.(MA
& NA, 2018)
Pull system: - is a Lean technique for reducing the waste of any production process.
Applying a pull system allows to start new work only when there is customer demand for
it. This allows reducing overhead and optimizing storage costs.
The researches were further examined and evaluated based on the following key factors on
performance:

• Value stream mapping (VSM)

• Takt Time Analysis
• Identifying, quantifying and reduce the non-value added activities (NVD)
• Improvement strategies
• Lean culture associated with human resource Employee satisfaction, Quality
• Customer Collaboration, Coordination & satisfaction
• Supplier Collaboration, Coordination & satisfaction
• Export challenges &determinates
• Value stream mapping (VSM)
It is a method for demonstrating and examining the logic of a production process. The map gives
a graphical summary of the stream of material and information in a production process. The
researcher describe VSM in four stages these are determine the value stream to be improved,
current state VSM, future state VSM, implementation procedure .In current state VSM the
researcher plot the current VSM using free hand sketch following commonly used symbols and it
also incorporate production process data . (Langstrand, 2016)These are

Customer demand: The number of products that the customers are expected to buy or
order during a certain time period.

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 Cycle time (C/T): The time required to complete one cycle of an operation; or to
complete a function, job, or task from start to finish. For automated or compound
processes, the cycle time is the time between each output from the process.
Process time (P/T): Total time required to properly handle an item within a process step.
This includes order preparation time, run time, move time, inspection time, and put-away
time. For simple processes, the cycle time and the process time can be used
interchangeably.
Changeover time (C/O): Activities that are required to prepare an operation or process for
another type of product. The time allocated for this is called changeover time. Also
known as setup time.
Number of operators (Op. or the symbol)
Capacity (Cap.)
Available time
Uptime/downtime: Time when equipment is available / unavailable for production due to
e.g. equipment breakdown or planned maintenance.
Quality or defects rate (Q)
Number of product variations
Batch size
Inventory levels(Langstrand, 2016)
• Takt Time Analysis
It is the production step that we need to be able to preserve in order to meet customer demand.
This is calculated by the following formula.

Takt time = 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑇𝑖𝑚𝑒/𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐷𝑒𝑚𝑎𝑛𝑑

After determining the Takt Time comparing the Takt time with cycle time if some activity has a
cycle time that is longer than the takt time, the company will not be able to deliver a sufficient
amount of products to meet the customer demand. Then assessing the balance of the production
process is relating the cycle times between operations this helps us to recognize potential bottle
necks in the process (Langstrand, 2016). There has been a lot of research conducted worldwide
on productivity of footwear industry and their improvement for the last years. This study has
reviewed the recent literature ranging from 2004 to 2019.

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Table 2-2 Literature for “productivity improvement – footwear in particular”

Sr. thematic methods and

No topics Author tools Findings challenge/Gap
1 Footwear Adul Applied/used Both descriptive and The research
Design Adulyan SPSS and inferential statistics neglected human
Strategies for ukosol structural analyzed using the SPSS factors.
the Thai and equation program. Multivariate
Footwear Thanin modeling (SEM) statistical analysis and
Industry to Silpchar mixed method structural equation
Be Excellent u,2020 modeling (SEM) were
in the World conducted through AMOS
Market with the evaluation of data
model fit for four values
2 Simulation Chen, J. The model was Product with lower Only one
Modeling C., & done by using production steps will performance
and Analysis Chen, J., Flexsim 5.1.2 enable to reach higher parameters are
for Stitching 2014 step by step UPMH. Usage of 2-lines used . The
Line of based on the is more favorable as it’s simulation based
Footwear specification resulting in higher UPMH. on operational
Industry from the Higher batch size will also practice. Involve
company by increase UPMH. Here, method to
observation, batch size of 6 is more optimize
Validation and recommended to use. workstation and
verification Lower task time deviation operator
process was is slightly better than the assignment. Quite
conducted in higher one. troublesome to
assistance of conduct an
company experiment in the

Etabezu Nemera Page 25

 personnel and by real production
comparing floor
results with
specified design.
3 Performance Grünber Formulating a proposes a methodology The gap with this
improvement g, relevant research for improvement work study is it looks
Towards a T.,2004 problem into the theoretical
method for influenced phase aspect and it lacks
finding and comprises of the real case
prioritizing analysis, the experience.
potential heaviest part of
performance the work (for
improvement The third phase
areas in and the second
manufacturin theoretical part,
g operations is synthesis of
the analyzed
material
4 System Machad Systems From the systemic It doesn’t
Dynamics o, C., dynamic model analysis, five main establish a
and Learning Sellitto, of the impact of learning scenarios were performance index
Scenarios for M. A., the footwear- identified: (i) the ASIS, so as to generate
Process & industry activity (ii) the uniform models that would
Improvement Morandi of a city in the distribution of investment, be capable of
and Regional , M. I. south of Brazil (iii) the labor training controlling
Resilience: W,2017 over the city investment, (iv) the value- evolutionary paths
A Study in resilience. Cause added marketing toward process
The and effect investment, and (v) the improvement and
Footwear diagram to List solid waste treatment of increasing the
Industry of factors investment. regional resilience
Southern influencing the of the industry.

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 Brazil performance of
operation

5 Labor Abdi Quantitative and footwear companies’ Only looked labor

Productivity Angeras qualitative data average labor productivity productivity as
Measuremen a ,2018 collection had magnitude of 1.83, export
t and methods/techniq 1.98, 2.09, 2.15 and performance factor
Improvement ues were used. 2.19pairs/day/person from
: In Case of The quantitative 2006EC to 2010EC
Ethiopian ways of data respectively ; and their
Medium and collection respective average annual
Large methods labor productivity index
Footwear included were 1.07, 1.09, 1.06 and
Industry observation, 1.06 from 2007EC to
questionnaire 2010ECrespectively
and secondary
data whereas the
qualitative
methods were
observation,
interview and
secondary data
6 Performance Kassane observation, a new method for TPS is firm level
Measuremen h and survey performance measurement tool which can
t and Workale questionnaire, and improvement called rarely solve
Improvement mahu,20 interview and “total performance external factors
Method for 18 discussion with scorecard” and
Leather company experts implementation guideline
Footwear for EFI
Industries
7 Competitive Birkines Shoe producers At the firm level, all the The study focused
ness of hGonfa, in Ethiopia determinants of on only the

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 Ethiopian 2012 specifically competitiveness (Factor external factor that
Shoe located in Addis conditions, related and hinder the export
Industry: Ababa Porter support industries, firm performance
Response to diamond model structure, strategy and
Export rivalry, Demand
Market conditions) are found to
be insignificant
8 Integrated Bezaneh Integrated model consisting lean, Identifying
Model for Eshetu,2 Continuous ergonomic and work study additional
Continuous 017 Productivity developed productivity
Productivity Improvement indicators which
Improvement model consisting are not considered
in Footwear lean, ergonomic in the study due to
Industry: (A and work study data shortage.
Case of by using a Didn’t assess the
Anbessa questionnaire lean maturity of
Shoe S.C.) and secondary the case company
data
Most literatures measure performance in financial performance which has been the primary
measure of success in most manufacturing companies. Manufacturing firms have established
financial planning systems for measuring their productivity on a regular monthly, quarterly and
annual basis. But the researcher Define current productivity in the elements of quality, cost,
flexibility, reliability and innovation which will enable you not only to evaluate current
productivity, but also identify productivity problem areas and prioritize for initiating the
improvement process.
The most common areas of study were lean, lean maturity in manufacturing sector, challenges
and factors hindering productivity of footwear industry .Certain articles also dealt with the
productivity Measurement and Improvement Method for Leather Footwear Industries. However,
in certain cases the productivity of the footwear sector was measured based on certain factors
such as product quality, capital, export knowledge, technological capability and export
promotional support.

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Most studies are conducted in developed countries such as US, Australia, China, Turkey, China
and others and it’s difficult to conclude from this study findings of developed countries as
Ethiopia is developing and has different social, economic and political factors. Although there
are few studies conducted in Ethiopia, they are based on secondary data (trend), broad and
focusing on productivity improvement the manufacturing sector of the country rather the
productivity improvement of footwear industry.

2.12 Summary of literature review, literature gaps

The studies and research on lean assessment models have been grouped into two primary
categories based on a survey of the literature. On the one hand, there have been various attempts
to codify and shape lean approaches into a synchronized collection of tools and processes,
particularly at the operational level. The transformation principles and infrastructure
requirements of lean as a management philosophy were not considered in these investigations.
Several studies, on the other hand, have attempted to explain lean as a comprehensive approach
at the corporate level. These studies generally failed to provide a link between the lean concepts
in holistic view and the daily practices of lean in the operational level. In fact, they don’t provide
a systematic approach to apply lean values and principles in production & related section with
the production cells.
In terms of evaluation measures, two types have been used in the creation of the practical and
academic lean assessment models. On the one hand, some research focuses on evaluating lean
methods and methodologies through the analysis of inputs and processes. Some data gathering
methods in this research are direct observation, documents from case study and interview and
lean assessment is measured by overall equipment efficiency (OEE)are recommended to record
evidence of lean tool and methodology deployment. The extent to which lean is applied is
measured in these circumstances against the presence of evidence on the implementation of lean
tools and concepts. Although helpful instructions and descriptions are commonly recommended
for clarifying assessment criteria, human judgment bias impacts the outcome of these models'
evaluations. Furthermore, many studies place a greater emphasis on lean tools and processes than
on results. As a result, they were unable to track the effectiveness of lean practices. Some
scholars, on the other side, proposed assessing leanness by output evaluation. Overall
organizational performance, as determined by key performance indicators, is employed as a
measure of leanness in this research. Although these studies provide a good indicator of lean

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efficacy, they do not provide sufficient visibility into any potential flaws or gaps in the system's
implementation. Leanness and performance indicators have been consolidated into a single
indicator in several researches that included both qualitative and quantitative measures. As a
result, they failed to provide a means of evaluating lean effectiveness.
Thus to the knowledge of the researcher, there are limited research on lean maturity assessment
in improving performance of footwear industry. Therefore, this research seeks to fill this
knowledge gap on lean maturity assessment in improving export performance of footwear
industry in case of Anbessa shoe Share Company

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CHAPTER THREE

3 RESEARCH METHODOLOGY

3.1 Introduction
This chapter explores the research methodology used for conducting the research study by
describing the research process, research design, Research Approach, Research strategies, data
collection approaches and instrument, and finally data analysis. Selection of research methods
depends on the research objectives, nature of the subject and implementing facilities. The
purpose of selection of research methodology is to identify an approach to find out the answer to
the research questions more exactly and easily. Therefore to accomplish the objective of the
thesis, the researcher has applied the following methodologies.

3.2 Research Design

To attain the main purpose of this study, the researcher followed the following research
strategies such as literature review, interview, and observation. The research were carried out by
applying a combination of both qualitative and quantitative research approaches

3.3 Research Approach

In this research, the required elements towards the productivity of a product which are
responsible are production waste, VSM, and lean maturities were considered. The different
causes for decline the performance were qualified in terms of lean assessment which helps to
identify areas of performance lag and opportunities for improvement. The basic stages of
Anbessa shoe S.C production line from shop order receive to packing having in intermediate
process of planning & controls, cutting, stitching, lasting & finishing were as follows in the
following Figure.

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 Figure 3-1 Present process mapping of production line of Anbessa Shoe Share Company

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3.4 Data collection strategy and sources of data
The lean maturity assessment and sustaining culture in this research, key informants were
selected with individuals who are considered to be particularly expert about the topic of attention
and having direct relation with the productivity of case company these are Product development
Center (PDC), production, Quality, Human Resource ,Sales and marketing and purchasing. In
addition, the structure of the interview question is adapted from a readymade interview
questions from Ethiopian Quality award (EQA), American Excellence Award (AME) and
American lean Sensi questionnaire that Interview was made, recorded and attached in Appendix
A. and namely:
1. purchasing in an organization: The sub criteria observed at this section are Purchasing
and Distribution, Supplier Collaboration, Supplier Coordination, Supply Performance,
investigate the average number of suppliers for each raw material or purchased item,
outsourcing, incoming inspection, where and how often supplies are delivered
2. Production: activities taken in an organization. In the Production sub criteria observed are
Facility, equipment downtime and uptime, type of maintenance used, setups which
measures setup time for equipment and efforts in setup time reduction. The quick setup or
change over is a must for a lean production system
3. PDC: activities taken in an organization. In the product development center sub criteria
observed are Facility
4. Quality: activities taken in an organization. Investigates the statistical process control
(SPC) training, portion of operations that are using the SPC, and who is doing it (operator
or quality control office). The last question is about the overall defect rate.
5. Human Resource(HR) activities taken in an organization In the HR sub criteria observed
are Employee Collaboration , Employee Coordination & Employee satisfaction
6. Sales & marketing: in this sub criteria Customer Collaboration , Customer Coordination
& Customer satisfaction
The study will use both primary and secondary data as a source of data .The primary data was
collected from interview questions & personal observations of researchers for the selected
sample is SAWA Lafric is selected because other than any export product the company has
export the item for a long period of time.The secondary data was taken through company’s
document, the internet, books, journals, related studies and other sources of information.

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3.5 Target Population and Method of Sampling

The sampling method was purposive; is a type of non-probability sampling that is most
effective when one needs to study a certain cultural domain with knowledgeable experts
within.(Tongco, 2007). The survey interview was distributed to the target group such as. PDC
manager, production manager, Sales & Marketing manager, kaizen head, Purchasing &
Distribution Head, and quality control head.

3.6 Research Variables

Dealing with the basic research subjects of this research, the basic variables of the study
comprises of both dependent & independent variables.
➢ Dependent variable – productivity

Generally productivity has been measured qualitative and quantitative. Qualitative measures of
productivity are quality of raw material, customer satisfaction and collaboration, employee
satisfaction. However, quantitative measures have the existing value of wastes, labor
absenteeism and labor productivity.

➢ Independent variable – Wastes

The impact of wastes on firm, productivity is tested by assessing the eight wastes during
production i.e transportation, inventory, motion excess, waiting, over production , over
processing, defects/rejects and skill misapplication and the nature and the quantity of wastes in
case company count on two factors. These are the type of materials being cut (leather, textile,
rubber etc) and the type of assembling technology (stitching, lasting, packaging etc.).

➢ Independent variable – Labor productivity

The measures used to improve productivity include labor productivity which is achieved
through human resources (awareness and commitment), organizational resources (planning and
coordination) and lastly training (entrance & on-job).

➢ Independent variable – capability development

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Capability development has been tested using variables such as product development.
(Adulyanukosol & Silpcharu, 2020) in the study that captured the impact of capability
development on a firm’s productivity are (1) design, (2) market analysis, (3) innovation, and (4)
information technology productivity with all these four variables.

3.7 Tool and Method of Data Analysis

Once primary and secondary data are collected, they are analyzed according to the objective of
the research. To manipulate the raw data collected from interview& secondary sources data
Microsoft Office 2010 Excel used and to draw current VSM, propose VSM, cause and effect
diagram & process mapping of case company Wondershare EdrawMax used .To analyze the
transportation wastage the machinery layout were done using AutoCAD and interview question
used from questions from AME excellence award because this is practical in footwear industry
and interpret the collected Data from interview using tables the evaluated numerical data taken
from AME excellence award and evaluated . Also it is used to present the result of the data
through different charts like Pareto chart for downtime, root cause of low productivity, bar graph
to show the status of each parameter and line chart to explain OEE.

3.8 Ethical Consideration

As suggested by(Sekaran, 2003) the researcher has ensured the strict adherence of the following
ethical conducts:
• Respondents take part in the research voluntarily and data was collected based on the
permission of the individual.

• The purpose of the research was clearly explained to respondents the recorded voice of
respondent is used only for research purpose only.

• Information provided by respondents was treated with strict confidentiality and the
researcher ensured that participants would remain anonymous throughout the study.

• There was no misrepresentation or distortion of the actual data collected from respondents.

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CHAPTER FOUR

4 OVERVIEW OF ETHIOPIAN FOOTWEAR SECTOR

4.1 Background the Sub-Sector

4.1.1 Historical Background of Ethiopian Footwear Industry

The Ethiopian leather industry is a relatively older industry with more than 80 years of
involvement in processing leather and producing leather products. Indeed Ethiopia possesses one
of the world largest livestock populations. This enormous population of livestock provides ample
opportunity for the development of the leather industry in the country. However, the livestock
potential remains lagging behind in its role to accelerate the country’s economic development.
Lack of effective, efficient and coordinated support in terms of supply of raw hides, skins and
other production inputs as well as other related problems are among the challenges faced to
achieve the target (UNCTAD, 2018).
Ethiopia has one of the largest livestock sector in the world and the formal LLP sector has
existed for almost a century. The government under the Emperor Haile Selassie started to
regulate the sector and established the Livestock and Meat Marketing Board in 1964 (Schaefer &
Abebe, 2015). The Dreg-regime prohibited foreign investors and established the National
Leather and Shoe Corporation to manage eight tanneries and six large shoe factories. The value
of LLP exports increased from an average of USD 53 million between 1996 and 2000 to USD
135 million between 2013 and 2017 (UN Comtrade 2018) the increase in the value of Ethiopian
LLP sector was initiated by the introduction of an export tax on different types of semi-processed
leather and increase in new entrants of FDI companies in the leather footwear and gloves sub-
sectors.
Footwear Industry is at a least stage of development in the country which is only two factories
before 1991 but at present it reached 21 medium and large scale footwear manufacturers. The
production capacity of shoe factories including production of Small and Micro enterprises rise to
15 million pairs per year. The shoe industry is emerging and promising industries(LIDI, 2019)

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4.1.2 Anbessa Shoe S.c.

Anbessa shoe Sc. selected for the study because of the following main reasons:

▪ The ASSC stayed in the sector for Long time.

▪ The major producer of footwear relative to other local footwear factories
▪ Having a variety product type.
▪ Poor performance related with the designed capacity.

4.2 Define the Process of ASSC

Anbessa Shoe Company is one of the largest and pioneer shoe manufactory and distributor in
Ethiopia. It was established in 1932 E.C and started production at the time when such technology
was not widely known among the general population of the country. Its establishment was
apparently in response to increased demand for shoes, which must have been triggered by the
presence of a sizable Italian occupation army that invaded the country.
Currently, it produces different types of ready-made shoes both for local and international
market. From the company's wide varieties of products ,some of them are export standard,
sportswear, military shoes, workers’ shoes, civilian shoes, special orders shoes for handicaps are
some of them. The company's activities range from component making to production of ready-
made foot wear. In recent years, it has widened its product mix by adding export standard
products which has now becoming the main product type of the company (Gossaye, 2006).
ANBESSA shoe factory have different department such as production, design and product
development, sales and marketing, distribution, finance and accounting, and human resource
development and administrative.

4.3 SWOT analysis for the leather sector

SWOT analysis is a study about the strengths, weaknesses, opportunities and treats. The strength
and weakness are internal and the opportunities & treats are external aspects or factors.
Table 4-1 SWOT analysis of Ethiopian footwear

SWOT analysis for the leather sector

Strengths Weaknesses

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Fairly modern technology. Lack of strategic management.
Relatively large capacity. Poor marketing capability.
Good basic finishing capability. Shortage of working capital.
Easily trainable and relatively low wage human
Poor supply chain coordination.
resource pool.
Government owned institute of leather and leather Lack of creative finishing skills.
Opportunities Threats
Poor quality raw material from
Recognition as supplier of leather.
some suppliers.
Stable economic and political environment. Shortage of supply of skins.
Low wages and cheap utility costs. Fluctuation of power supply.
Leather has good natural quality. High transportation costs.
Presence of training institutions. Delay in customs clearance.
Presence of accreditation and testing facilities. Insufficient supply of financing.
Unstable economic conditions in
High investment on infrastructure development.
destination countries.
Shortage of chemical supply.
Presence of strong air cargo and sea transportation Environmental protection
regulation costs.
Source: (UNCATD, 2018)

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CHAPTER FIVE

5 DATA COLLECTION, ANALYSIS AND INTERPRETATION

5.1 Introduction
Process Flow of case company is presented in the chapter four and the procedure is as follow:
Shop order flows from planning & control to PDC and this section develop the design and time
study then flow the order to production control and this section reviews the order and checks the
bill of materials in the stock with the quantity required to make the ordered amount then
Production control releases the work order to the shop floor to start production of the shoe. The
operation stages include cutting, stitching and lasting mainly but moccasin operation include
depending on the model. There is quality inspection at all work station

5.2 Data Collection and Data Analysis

To get performance related information observation, interview and informal discussion has
been conducted with production head and supervisors, PDC head and senior, quality head,
purchasing and marketing heads , human resource head and planning department . The firm has
high production capacity relative to other footwear factories; but it is not using the capacity
effectively. Information Collected to generate a VSM of a product, at first the observations about
the product and the manufacturing processes related to it were collected. Some basic information
about ASSC and its product were acquired from the PDC department, production head allowed
to visit the different job floors , the planning and quality department provide the annual data and
to measure the lean maturity of case company the selected personnel contribute interview .

5.3 Export sales volume

Even though the main market for the case company is the export market and the export sales
volume in quantity of ASSC in 2017, 2018, 2019 & 2020 are 3,026, 51,505, 11,114and 7,092
respectively which is very minimal by taking this figure and generalize as a whole leads to
incorrect conclusion. Thus, the researcher takes both local and export data. The number of
exports per pair ASSSC Factory is shown in Table 5-1 below.

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5.4 Annual production volume
Main factory has a designed capacity of producing 10,000 pair of shoes per day but its current
attainable capacity on average 4100 pairs of shoes per day. The firm has a trend of preparing
timely (quarterly) production reports which show production against the plan. Due to pandemic
Covid -19 the efficiency of the factory became down and to compensate the loss in production
the production manager uses over time and additional manpower .Thus the efficiency of Oct.,
Nov.& Dec. became increases. The monthly number of annual production shoes is shown in the
table 5.1.

Table 5-1 Export sales quantity in pairs of ASSC

Shipping Year
2018 ( Jan.18-Dec. 2020( Jan.18-Mar.
2017( Jan17-Dec. 17) 2019( Jan.19-Dec. 19)
18) 18)
Quantity Quantit Quantity Quantit
Destination Destination Destination Destination
(Pair) y (Pair) (Pair) y (Pair)

Kenya 18,274 Somaliland 917

France Sudan 648 France 5,200
France 4,592
Uganda 60 USA 1,827
France 8,635 Madagascar 30

USA 60 Canada 8,928

2,840
USA 10,720 Netherlands
Madagasc
Nigeria 500 2,500
ar
Somaliland 600 Somaliland
Italy 3,800 300

Source: export department, 2017, 2018 2019 &2020 annual report

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Table 5-2 Annual productions (2020)

Cutting Stitching Lasting & Finishing

Mont
Actual Actual Actual
h Efficien Efficien Efficien
plan Producti plan Producti plan Producti
cy (%) cy (%) cy (%)
on on on
Jan. 99820 68102 68% 99820 65609 66% 99820 73364 73%
Feb. 97651 72570 74% 97651 77402 79% 97651 65606 67%
Mar. 97651 72570 74% 97651 77402 79% 97651 65606 67%
Apr. 99820 22902 23% 99820 20247 20% 99820 28464 29%
May. 88970 22365 25% 88970 18124 20% 88970 10747 12%
Jun. 104161 44048 42% 104161 38587 37% 104161 60526 58%
July 79903 66809 84% 79903 57878 72% 79903 45903 57%
Aug. 80407 63304 79% 80407 65446 81% 80407 73577 92%
Sept. 70498 55604 79% 70798 55533 78% 70498 53172 75%
Oct. 85675 80743 94% 85675 79055 92% 85675 63079 74%
Nov. 90401 76148 84% 90401 78667 87% 90401 30326 34%
Dec. 97096 92547 95% 97096 100540 104% 97096 95869 99%
109205 109235 109205
Total 737712 68% 734490 67% 666239 61%
3 3 3
Source: Planning department, 2020 annual report

5.5 Waste
Several wastes were found after observing the procedures on the shop floor and these influenced
the overall productivity of the organization. Out of the eight wastes the major wastes noticed in
the industry are as follows:

5.5.1 Unnecessary inventory

There are several types of inventory: unsold finished goods in a warehouse, work in progress
caught up in the process and pending production of raw materials. Work-in-progress (WIP) is a
big problem of excess inventory in production, which cannot be quickly marketed either to

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clients or other businesses. In cutting, sewing and lasting, ASSC's WIP inventory occurs are
summarized as follows.

Table 5-3 Inventory by section

PRODUCTION
CUTTING STITCHING LASTING TOTAL
PROCESS

INPUT 624,854 666,211 628,441 1,919,506

OUTPUT 677,855 673,079 582,718 1,933,652

WIP 138,701 39844 108,073 286,618

Source: planning & control department, 2020annual report

5.5.2 Waiting
As mentioned in the literature waiting is any state of idleness in the usually assumed working
hours occurred at the workplace. The equipment involved in manufacturing and/or working in
that workplace may be noticeable in such a state of waste. Diverse reasons of NVD activities or
down time in production stages were recognized and summarized in the following table with the
respective frequency , percentage and cumulative of percentage (Sayid Mia, 2017).

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Table 5-4 Annual Downtime and cause of downtime
Month Section Machine Material Not Poor Material Not Line Change Operator Not Machine Total downtime
Repair / Low matching to Quality Available Over (min) Available / Start-up (min.)
Machine Specification Material (min) Low Loss
efficiency (min) (min) efficiency (min)
(min) (min)
Cutting 85 26 53 0 0 1397 0 1561
Jan. Stitching 1198 1644 3287 271 527 1729 158 8814
Lasting 1043 1793 3586 31 139 344 396 7332
Cutting 0 164 327 0 0 0 0 491
Feb. Stitching 757 315 631 1182 882 564 132 4463
Lasting 593 1294 2587 124 388 264 118 5368
Cutting 60 242 484 0 0 0 0 786
Mar. Stitching 676 479 958 1427 368 0 45 3953
Lasting 338 987 1975 1188 280 0 232 5000
Cutting 0 46 91 0 0 0 0 137
Apr. Stitching 30 73 147 30 35 0 0 315
Lasting 35 102 205 20 90 0 0 452
Cutting 0 161 323 0 0 0 0 484
May Stitching 209 86 171 0 99 0 0 565
Lasting 0 0 0 0 0 0 0 0
Cutting 0 161 323 0 0 0 0 484
Jun. Stitching 265 20 40 0 0 0 0 325
Lasting 15 33 67 0 50 0 0 165
Cutting 0 160 320 0 0 0 0 480
Jul.
Stitching 912 353 707 68 0 0 0 2040

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 Lasting 70 0 0 270 0 0 0 340
Cutting 90 160 320 0 0 0 0 570
Aug. Stitching 571 363 727 75 0 160 0 1896
Lasting 519 0 0 30 0 000 0 549
Cutting 0 68 136 0 0 0 0 204
Sep. Stitching 699 11 22 90 0 0 360 1182
Lasting 1211 151 302 285 456 0 40 2445
Cutting 20 173 346 0 0 0 0 539
Oct. Stitching 385 119 238 0 170 0 0 912
Lasting 305 120 239 15 0 0 0 679
Cutting 60 366 732 376 0 0 0 1534
Nov. Stitching 321 70 140 401 200 0 65 1197
Lasting 349 376 751 30 311 0 90 1907
Cutting 75 350 699 0 0 0 0 1124
Dec. Stitching 729 124 247 285 200 0 0 1585
Lasting 783 160 319 30 85 0 0 1377

Source: planning &control department, 2020annualreport

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5.5.3 Pareto Analysis for down Time
Pareto Analysis is a statistical decision-making method that is used to pick a small number of
tasks that have a large overall impact. It is based on the Pareto principle, which states that by
doing 20% of the work, you will get 80% of the benefit of doing the entire job. Alternatively, in
terms of quality assurance, a vast majority of issues such as poor quality material ,machine repair
/Low machine efficiency & material not matching to specification (80%) are caused by a few
primary causes such as machine startup losses, line changeover, operator not available /low
efficiency & material not available

Pareto Chart - Downtime

Downtime (min)

Cummulative
100%
21000
80%
16000
60%
11000
40%

6000 20%

1000 0%
Poor Quality Machine Material Not Material Not Operator Not Line Change Machine Start-
Material (min) Repair / Low matching to Available Available / Over (min) up Loss (min)
Machine Specification (min) Low efficiency
efficiency (min) (min)
(min)

Figure 5-1 Pareto chart of Annual Down time

From the above pareto diagram the total wastes due to downtime (Non- value adding time):
61,255 min per annum. The causes for this downtime are classified as three major groups and
their percentages contributing to non-value adding time are given bellow:

Quality (52.64%)
• Poor Quality Material: 21,500min (35.09%)

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 • Material not matching to Specification: 10,750 min (17.55%)
Queuing time (47.36%)
• Queuing by raw material: 6,228min (10.17%)
• Waiting time by Operators: 4,458min (7.28%)
• Waiting time by the machines: 18,319min (29.91%)

✓ Line Change Over: 4,280min (6.99%)

✓ Machine Start-up Loss: 1,636min (2.67%)
✓ Machine Repair / Low Machine efficiency: 12,403 min (20.25%)
Total DownTime
𝐷𝑜𝑤𝑛𝑇𝑖𝑚𝑒 = ∗ 100%
Total Working Time.

Similarly using table 5-5and the above formula, the current down time for cutting, stitching and
lasting is 3.28%, 10.65% and 10.02 % respectively, this deviates from target value for stitching
lasting section sections.

5.5.4 Defect
The quality department record the quality control per line ,listed cause of the defect and analyze
failure analysis .The possible causes of the defects are sole Dirt/oil stains/pen marks, Edge
distances not correct as specified, burned leather by heat, Loose threads and sloppy trimming,
Poor color match within shoe pair, Internal dermis Difference ,wrinkled Internal part of
shoe(lining), Incorrect shoe sole sticking, internal part broken, adhesive not completely clean,
blasted stitch, Toe Alignment Difference, Vamp difference, wrinkled Vamp, unevenness of back
stitch, back height difference, wrinkled Tomay ,Sole deformed, the Blanca not corrected, Socks
not covering in sole etc… The following table illustrate that the number of defect rework and
reject quantity for the fiscal year of 2019/20.

Table 5-5 Annual Defects, Rework &Reject (Jan 1/2020- Dec 20/2020)
Month Jan. Feb Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Defect 340 9247 397 3810 10103 8165 9305 468 6054 6805 4703 4713
Rework 261 8016 394 3810 9966 8116 9256 235 6012 6656 4515 4666
Rejected 5 54 3 0 137 49 49 52 42 149 188 47
Source: Quality department, 2020 annual reports

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Due to quality defect the company rejected 775 pair of shoes from local market & 47 pair of
shoes from export market and the estimated price for exports markets like TEDY, SAWA
and Madagascar is 17.5 USD/pair and for local market is 875 ETB and this implies that the
company losses 637,000.00ETB per Annum. The defect of case company is 9.629% which
is more than internationally accepted defect rate i.e. 3%. This implies that an industry having
9.629% has a problem in losing cost due to quality defect

5.5.5 Over Transportation

Material transportation is important, but it adds little value to the final product. Eliminating
or minimizing this form of waste in the industry can result in a reduction in overall lead time
or cycle time. Since the cutting and stitching sections are located in different floor this
results in additional time lost in transporting the components of shoes .The following figure
represent the current machine layout of the plant. The following table summarizes the
average Transportation wastage recorded as the material moved from cutting floor to
stitching floor then back to lasting floor.

Table 5-6 Transportation wastage

Average normal
Operation time in Extra time lost in transporting the
Transportation time/day
a day(min) components of shoes(min)
(min)
465minutes 96.2 198.55

The daily average production is 3971pair/ day and time lost while in transporting the
components of the shoe from cutting floor to the stitching floor is 3sec/ pair. So, additional
198.55min/day spent while the components are moved from cutting section (ground) to the
stitching (first floor) section. Accordingly the total transportation time spent /day is
294.75min.

Due to the nature of the layout, there is a difficulty transferring material from one area to
another; the existence of a burrowed floor causes fatigue on the worker when moving
material from the cutting section to stitching section and to various sections. These results in
additional 198.55 min time lost and exhaustion for workers assigned to material

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transportation. In addition, the existence of temporary material locations due to an
unorganized work environment increases transportation time. Due to this the current layouts
rearrange so as to reduce this time lost. So as to minimize the transportation wastes the
layout were rearranging the machineries in three different options. The Researcher
considered three layout options and proposed a layout having minimum transportation time .

Figure 5-2 machineries layout for option-1

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 Figure 5-3 machineries layout for option-2

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 Figure 5-4 machineries layout for option-3

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Option-1: arranging the raw material store, preparation area, cutting section and stitching
section to be in the ground floor, Canteen, changing rooms, Lasting sections, Packing
sections , finished goods store, machine maintenance and office to be in the first floor and
office, expansion area and office to be in the third floor.
Option-2: arranging the raw material store, preparation area, cutting section, Lasting
sections and finished goods store to be in the ground floor, Canteen, changing rooms,
manual stitching , hammering , stitching section, Packing sections and office to be in the
first floor and office, expansion area and office to be in the third floor.
Option-3: arranging the raw material store, preparation area, cutting section, Packing
sections and finished goods store to be in the ground floor, Canteen, changing rooms,
stitching section , Lasting sections and office to be in the first floor and office, expansion
area and office to be in the third floor.

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Table 5-7 Transportation wastage for different option layout

Transportation(min) for

Transportation(min) for

Transportation(min) for
Transportation
Inspection
Operation

Option -1

Option -2

Option -3
Storage
Delay
To Cutting
materials( sock foam,
toe puff, back box, eye
stay toepuff and back
box skiving
stamping (model, size
& date) on tongue and
pictograph on quarter
lining

Waiting
attaching sock lining on
estviatcfhosaomck lining with
Prepara
tion eva foam
(Sock quality check
Lining stamping logo on sock
preparat lining
final QC
rearranging and dispatch
cutting texn board
cutting shank board
shank grooving
shank skiving
attaching shank steel with
Preparati shank board by revet
on (Insole apply glue on texn board
preparati and shank board then
on) attaching texn with shank
board
molding

disbatch
Storage
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Waiting Page 52
 loading
marking
skiving for underlay
skiving for folding
skiving lining
attach toe puff and counter
stiffener
attach eyestay
reinforcement on eye stay
folding around edge of back
and front quarters
attach both side tape on
the edge of stripe then
attach with quarters and
attach tape on inside of
hammering around strips
(folded area)
stitch stripe with back and
front quarters
attach quarter lining in &
out and quarter upper in &
out together by using tape
stitch quarter lining in &
out and quarter upper in &
out together
apply glue and attach strap
lining on back quarter lining
and back strap on back
quarters
stitch strap lining on
quarter lining
stitch back strap on
quarters
apply glue and attach back
counter on quarters
stitch back count on
apply glue and attach back
and front quarter lining on
quarter upper
stitch strap with quarter
lining as decoretive
apply glue and attach eye
Stiching 60 184 122
stay and eye stay lining on
quarters
hammering around eye stay
and collar

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 stitch eye stay with
quarters and its lining
tope line stitch around
collar and eyestay with
lining
apply glue and attach vamp
over tongue then attach
tape on it
decorative stitch at center
of vamp with tongue
apply glue and attach toe
cap on vamp
stitch toe cap on vamp
apply glue and vamp and
tongue with vamp and
tongue lining
stitch vamp over tongue
with lining
tope line stitch arround
tongue with tongue lining
in process quality
stitch around collar with
lining
punch eyelet place
apply glue and attach vamp
with quarter
stitch vamp with quarter
with lining same as lock
stitch
stitch lasting margin
allowance
Quality Inspection
burning excess threads
temporary shoe lacing
final quality inspection
rearranging and disbatch
Storage
Waiting
To lasting
sole roughing
last loading
last cleaning
upper loading
out sole cleaning (washing
using solution)
attaching insole on last

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 back part molding
insert to steam then toe lasting
apply glue on sides of the upper
side closing
insert to steam and heel
seat lasting
apply cream and insert to
heat tunnel
heel seat shaping
pounding
irroning to remove wrinkle
in process quality inspection
first level upper roughing
marking area of sole seatting
second level upper
Lasting
roughing following marking
first adhesive coating on 52
upper and out sole
second adhesive coating
on upper and out sole
sole and upper dryer
sole and upper re-activator
attach in sole with upper
and pressing
waiting
sole stitching with upper
cleaning, and inserting to
chiller (clooling) machine
removing temporary shoe
lace and de-lasting
apply glue and insert sock
lining
inserting tissue paper
painting on extra rough and
apply cream on upper
Final brushing
shoe lacing
final quality inspection
To finishing goods store
Storage
store Waiting
Total Transportation Time

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5.6 Overall equipment efficiency
OEE on the basis of an equation (1)
𝑂𝐸𝐸 = 𝐴𝑣𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 ∗ 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑅𝑎𝑡𝑒 ∗ 𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝑅𝑎𝑡𝑒……. (1)

5.6.1 Availability
The availability of equipment's net time is referred to as loading time. During a period of
time, such as a day, week, or month, as demonstrated in a formula (2)

Annual working hr. − Annual downtime

𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 =
Annual working hr.

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Table 5-8 Annual Availability of the case company

Machine Material Operato

Repair / Not Poor r Not
Low matching Quality Materia Line Availabl Machin Monthl
Machine to Materi l Not Chang e / Low e Start- Total Total y
Mont efficienc Specificati al Availab e Over efficienc up Loss downtime downtime(hr Workin Availabili
h Section y (min) on (min) (min) le (min) (min) y (min) (min) (min.) .) g Days ty
Cutting 85 26 53 0 0 1397 0 1561 1.084028 23 0.952868
Jan. Stitching 1198 1644 3287 271 527 1729 158 8814 6.120833 23 0.733877
Lasting 1043 1793 3586 31 139 344 396 7332 5.091667 23 0.778623
Cutting 0 164 327 0 0 0 0 491 0.340972 22 0.984501
Feb. Stitching 757 315 631 1182 882 564 132 4463 3.099306 22 0.859122
Lasting 593 1294 2587 124 388 264 118 5368 3.727778 22 0.830556
Cutting 60 242 484 0 0 0 0 786 0.545833 23 0.976268
Mar. Stitching 676 479 958 1427 368 0 45 3953 2.745139 23 0.880646
Lasting 338 987 1975 1188 280 0 232 5000 3.472222 23 0.849034
Cutting 0 46 91 0 0 0 0 137 0.095139 23 0.995864
Apr. Stitching 30 73 147 30 35 0 0 315 0.21875 23 0.990489
Lasting 35 102 205 20 90 0 0 452 0.313889 23 0.986353
Cutting 0 161 323 0 0 0 0 484 0.336111 21 0.983995
May
Stitching 209 86 171 0 99 0 0 565 0.392361 21 0.981316

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 Lasting 0 0 0 0 0 0 0 0 0 21 1
Cutting 0 161 323 0 0 0 0 484 0.336111 23 0.985386
Jun. Stitching 265 20 40 0 0 0 0 325 0.225694 23 0.990187
Lasting 15 33 67 0 50 0 0 165 0.114583 23 0.995018
Cutting 0 160 320 0 0 0 0 480 0.333333 22 0.984848
Jul. Stitching 912 353 707 68 0 0 0 2040 1.416667 22 0.935606
Lasting 70 0 0 270 0 0 0 340 0.236111 22 0.989268
Cutting 90 160 320 0 0 0 0 570 0.395833 23 0.98279
Aug. Stitching 571 363 727 75 0 160 0 1896 1.316667 23 0.942754
Lasting 519 0 0 30 0 0 0 549 0.38125 23 0.983424
Cutting 0 68 136 0 0 0 0 204 0.141667 23 0.993841
Sep. Stitching 699 11 22 90 0 0 360 1182 0.820833 23 0.964312
Lasting 1211 151 302 285 456 0 40 2445 1.697917 23 0.926178
Cutting 20 173 346 0 0 0 0 539 0.374306 24 0.984404
Oct. Stitching 385 119 238 0 170 0 0 912 0.633333 24 0.973611
Lasting 305 120 239 15 0 0 0 679 0.471528 24 0.980353
Cutting 60 366 732 376 0 0 0 1534 1.065278 23 0.953684
Nov. Stitching 321 70 140 401 200 0 65 1197 0.83125 23 0.963859
Lasting 349 376 751 30 311 0 90 1907 1.324306 23 0.942421
Cutting 75 350 699 0 0 0 0 1124 0.780556 25 0.968778
Dec.
Stitching 729 124 247 285 200 0 0 1585 1.100694 25 0.955972

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 Lasting 783 160 319 30 85 0 0 1377 0.95625 25 0.96175

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From The above table the availability of cutting, stitching & lasting section can be extracted as
follows in the following graph

Annual Availability of Cutting Section

1

0.99

0.98
Avilability

0.97
Availability
0.96

0.95

0.94

0.93
Jan Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Figure 5-5 Annual Availability of cutting section

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 Annual Availability of Stiching Section
1

0.95

0.9
Availaility

0.85
Availability
0.8

0.75

0.7

Figure 5-6 Annual Availability of stitching section

Annual Availability of Lasting Section

1

0.95

0.9

0.85
Availability

0.8
Availability
0.75

0.7

0.65

0.6
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

Figure 5-7 Annual Availability of stitching section

5.6.2 Performance Rate
The performance takes into account anything that causes the manufacturing process to run at less
than the maximum possible capacity when it is running. During a period of time, such as a day,
week, or month, as demonstrated in a formula (3)

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 Actual Capacity
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 = Designed (Installed capacity ).……. (3)

Table 5-9 Annual Performance of ASSC

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.

Designed(Install
ed) 230 220 230 230 210 230 220 230 230 240 230 230
Capacity(000)

Actual
73,364 65,606 65,606 28,464 10,747 60,526 45,903 73,577 53,172 63,079 30,326 95,869
Production

Performance 32 30 29 12 5 26 21 32 23 26 13 42

5.6.3 Quality Rate

Is this the typical level of products produced? Standards as compared to products that do not
meet them the requirements(Wahyudin et al., 2019)
𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑒𝑑 𝐴𝑚𝑜𝑢𝑛𝑡−(𝑑𝑒𝑓𝑒𝑐𝑡)
𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝑅𝑎𝑡𝑒 = ∗ 100%……. (4)
Processed Amont

Table 5-10 Annual Quality for ASSC

Month Feb Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Jan

Defect 340 9247 397 3810 10103 8165 9305 468 6054 6805 4703 4713

Rework 261 8016 394 3810 9966 8116 9256 235 6012 6656 4515 4666

Rejected 5 54 3 0 137 49 49 52 42 149 188 47

Total 73,3
65,606 65,606 28,464 10,747 60,526 45,903 73,577 53,172 63,079 30,326 95,806
Product 64

99.5
Quality 85.91 99.39 86.61 5.99 86.51 79.73 99.36 88.61 89.21 84.49 95.08
4

OEE on the basis of an equation

𝑂𝐸𝐸 = 𝐴𝑣𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 ∗ 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑅𝑎𝑡𝑒 ∗ 𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝑅𝑎𝑡𝑒

Table 5-11 Annual OEE for ASSC

Month Availability Performance Quality OEE

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Jan. 78% 32% 100% 25%
Feb. 83% 30% 86% 21%
Mar. 85% 29% 99% 24%
Apr. 99% 12% 87% 11%
May 100% 5% 6% 0%
Jun. 100% 26% 87% 23%
Jul. 99% 21% 80% 16%
Aug. 98% 32% 99% 31%
Sept. 93% 23% 89% 19%
Oct. 98% 26% 89% 23%
Nov. 94% 13% 84% 10%
Dec. 96% 42% 95% 38%

OEE identifies the percentage of manufacturing time that is truly productive. An OEE score of
100% means the manufacturing is only Good Parts, as fast as possible, with no Stop Time. In the
language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as
possible), and 100% Availability (no Stop Time).From the above OEE analysis the average OEE
is 20% and this implies that the case company is not productive the aim of this research is
improving the performance by implementing lean tools. OEE is the single best metric for
identifying losses and eliminating wastes and improving the productivity of manufacturing
equipment.

5.7 Root cause analysis for Low productivity of ASSC

Following the research, general issues arose in each section, the cause for low productivity of the
plant is incremental of downtime at each section. The following figure illustrates that the
possible cause of a plant effect on low productivity.

The main cause for low productivity of the case company are quality, human, maintenance, raw
material, PDC and planning .To improve the productivity of the plant manpower should be high
productive, the wastage of the process must fall with in international acceptance range, the firm
should have scheduled preventive maintenance, the organization should culture a team work so
as to exceed the customer expectations.

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 Figure 5-8 Cause and effect diagram for low Productivity

5.8 Measuring Labor productivity

Labor productivity is calculated as the ratio of daily average commodity output to available daily
average work force. The following is an estimation of the factory's labor productivity is:

daily average commodity output

Labor productivity =
available daily average work force

∑Annual Actual production 666,239 Pair of shoe

daily average commodity output = =
∑ Workingday 273 days

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 daily average commodity output
Labor productivity =
available daily average work force

2440.4
=
720

Labor productivity =3.389pairofshoe/shift/worker

The international benchmark for shoe manufacturing Labor productivity is 16pairs/shift/person,

but due to the productivity factors listed below, factory labor productivity is below this level.

The reasons behind low labor productivity of the case company are summarized as follows:-

• Quality Issues: - under quality of raw material affect the workers’ productivity.
• Inadequate skills:-This complicates things for manufacturers who want to hire skilled
workers but end up with the environment cannot supply skill manpower.
• Regular Training: as a culture the industry provide training at the entrance it lack on job
training as a result the operator can’t cope up with the surrounding and their productivity
became decline.
• Machine failure : the machine fails but it lack preventive maintenance
• Poor Leadership: if the leadership has a means to control the absenteeism rate, then the
labor productivity became increase.

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5.9 Absenteeism
The factory available time is = 7.75 hr. The average workforce per day is 557

Total human hour = average worker*working hour = 557*7.75=4,316.75hours per

shift/day

Annual absence time= number of working hours per day* number of absents per annum

= 7.75 hours per day*7044=54,591hr.

The annual human hour is equal to the number of working hours per day multiplied by the
average number of workers multiplied by the total number of working day.

The annual human hour = 7.75*557*276=1,191,423.00hr.

Annual absence time

Absenteeism = ∗ 100= 4.58%
annual human hour

The company's absenteeism rate is 4.58 percent, as calculated above, but the factory's goal
is 1.5.

The reason for high absenteeism rate are listed as follows

• There is a lack of proper issue management.

• HRM needs to take a close look at the situation; management can make a big
difference.
• Because of insufficient salary levels, the money lost by a worker who stays at
home is insignificant.
• This is often linked to conditions in which employees' primary job pay is so low
that they need to work a second job to supplement their income.
• Absenteeism is ingrained in the local community. This can happen in mining
communities, for example.

5.10 Current value stream mapping (VSM)

Information related to production line for SAWA Lafrica (Gent's shoe) from receiving raw
material to delivery of the product such as production time, inventory storages,

Etabezu Nemera Page 66

inspections, rework loops, number of workers and operational hours per day were
collected and documented in the following table. The selected sample from export is
SAWA Lafrica is selected because other than any export product the company has export
the item repeatedly. The production work order comes from SARL SAWA FRANCE at
the letter dated on 22/08/2020, a total batch number of 300 with different shoe size from
36 to 46 .The work order stayed in the cutting section from 24/08/20 to 25/08/20, it stayed
in stock from 25/08/20 to 19/09/20 , in stitching section from 19/09/20 to 21/9/20 then
finally to the lasting and finishing section from 23/9/20 to 24/9/20, it stayed in stock
from24/9/20 to 08/10/20 .

The current VSM production line point out the different stages whose bring the different
values. These values were brought by different stages which were points out in present
VSM. This is a map that is going to show how the value stream is at the process at this
time. All data to build the VSM were collected and documented in table 5.12 and to draw
appropriate data from the current VSM in the

In drawing the VSM the researcher use time study this time study defining the task to be
performed and assigning the worker are the first two steps in a time study. Calculating the
cycle time and rating the worker's output determining the amount of cycles to be observed
computing the regular time
Cycle time characterizes the time that an employee wants to finish the given operation.
Lead time measures the time that the company wants to manufacture the product, from the
procurement of raw materials to its delivery to the clients.
To draw the completion of current VSM of SAWA Lafrica shoe production line, a
timeline was added at the bottom of the map recording the VD and NVD time were
recorded and documented in table 5.13.
Table 5-12 Manufacturing lead time of SAWA Lafrica
Sock Lining Insole
Cutting(sec) Stitching(sec) Lasting(sec)
preparation (sec) preparation(sec)
Times
U/T U/T U/T U/T( U/T(%
D/T C/T D/T C/T D/T C/T D/T C/T D/T C/T
(%) (%) (%) %) )
1st 238 647 63 165 246 33 166 222 25 1182 3919 70 408 1655 75
2nd 237 646 63 165 246 33 167 222 25 1172 3920 70 406 1655 75
3rd 239 648 63 165 246 33 166 222 25 1192 3920 70 408 1655 75

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Note: Skiving machine speed:1400RPM,Tape Attaching machine speed:1620RPM,
Degree Trimming Machine speed : 2770RPM,Line trimming machine speed :
2760RPM,Hammering machine speed : 2770RPM, eyeleting machine speed: 900RPM,
splitting machine speed : 915RPM, Head Traveling machine speed :1400RPM, cutting
Machine speed :1360RPM, Toe lasting machine speed :2800RPM , roughing machine :
2800RPM, Heel seat lasting machine : 1425RPM and brushing machine speed: 1390RPM

The D/T, C/T and U/T of SAWA Lafrica were documented in table 5.12 In this production
line the stage of cutting, sock Lining preparation, out sole preparation, stitching and
lasting were mainly accountable for D/T. In the stage of cutting, average U/T was 63%
and C/T was 643 sec. In the stage of sock lining preparation average U/T was 33% and
C/T was 246 sec. In the stage of in sole preparation, average U/T was 25% and C/T was
222 sec. In the stage of stitching, average U/T was 70% and C/T was 3919 sec and in the
stage of lasting average U/T was 75% and C/T was 1655sec. The percentage of obtainable
time for machine work or processing of desire product was known as the U/T. By
observing the U/T of different unit stage of production line, it can be assumed line
efficiency of the whole production line. At current state, the U/T of SAWA Lafrica
product varies from 25% (In sole preparation) to 75% (lasting stage). By this study it was
tried to increase the U/T in the future state as well as to reduce the D/T and to reduce the
ultimate lead time.
Table 5-13 Current lead time of the product SAWA Lafric

Processing Stages Average VD Time (Sec) Average NVD Time (Sec)

Receiving Inventory 0 2400
Cutting 433 214
Sock Lining preparation 111 136
Insole preparation 191 30
Stitching 3029 890
Lasting and Finishing 1011 645
Shipping inventory 0 52144
Total 4,775.00 56,459.00
Percentage 7.79% 92.20%

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The VD and NVD time of different processing stages for the production of SAWA
Lafrica were documented in table 5.11. At current state, there were no VD time except
NVD lime in the stages of receiving inventory and shipping inventory but in this process
line, this NVD lime or these stages were required for the production of SAWA Lafrica. In
this SAWA Lafrica production, the total VD time were 4,775.00 sec (7.79%) and the total
NVD time were 56,459.00sec (92.2%). By this study, it was attempted to increase the
percentage of VD time by reducing the NVD time with the proper implementation of lean
tools.

Figure 5-9 Current VSM for SAWA Lafric

Throughout the current VSM the whole processing system of the production line were
represented with the flow of order, raw materials, labor, information, and VD & NVD
times. It helps to draw the required processing stage like cutting, sock lining preparation,
out sole preparation, stitching section & lasting and finishing required labor, C/T, U/T,
C/O and batch size. By observing the current scenario of about processing line, it can be
known like as what number of labor is needed at different processing unit? How much VD
& NVD time is present? Where & what kind of improvement should be done?

At current VSM, for the production of SAWA Lafric was controlled by production
manager, assistant manager and supervisor. In this production line, the production starts by

Etabezu Nemera Page 69

taking the order of production from the customers In order to achieve the customer
demand the vital raw materials were collected from the different suppliers. These required
raw materials were transported in the raw materials inventory which was the first stage for
the production SAWA Lafric that followed by cutting, sock lining preparation, out sole
preparation, stitching section & lasting and finishing and shipment of finished goods. As
observed from the current VSM of the production of SAWA Lafric , diverse types of
NVD activities were present in the flow of process line at different stages. The diverse
types of bottlenecks at different processing stages were identified and quantified. The Up
time (U/T) of cutting, sock lining preparation, out sole preparation, stitching section &
lasting and finishing machine were consecutively 63%, 33 %, 25% ,70% and 75%. At
present state of this processing line over the different stages total labor was 145. After the
implementation of lean tools it was expected that U/T could be improved and total labor
could be minimized.

5.10.1 Current Takt Time Analysis

It is the unit of time in which a product must be produced in order to match the rate at
which that product is needed. (MA & NA, 2018)
The studied production line runs for one shift per day, each shift was for 27,900sec
excluding lunch time and planned downtime; therefore, the available time for the run of
the studied production line was 55,800sec with the daily customer demand of the year
2020 is 3971pair of shoes. Takt time is considered as the heartbeat of any process line. By
this way, the present takt time of studied production line was 14.05sec i.e. it took 14.05sec
to produce a single case of shoe production. By this study, it was tried to reduce the
present takt time with the proper implementation of lean tools.
Takt time = 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑇𝑖𝑚𝑒/𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐷𝑒𝑚𝑎𝑛𝑑

Current Takt time of SAWA Lafrica shoe production line:

Working shift per day = 2 shift

One shift = 7.75 hours or 27900 Sec
Two shift time = 15.5 hours or 55,800 Sec
Total change over time = 1 hour or 3600 sec Lunchtime = 30 minutes or 1800 Sec
Daily customer demand = 4100 pair Takt time =55800/3971 = 14.05sec/pair

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5.10.2 Current process cycle efficiency Analysis (PCE)
PCE is calculated as a percentage of the ratio of VD time to lead time, with lead time
equaling the amount of VD and NVD time. On the production line, the VD and NVD
times were discovered to 16,351.33sec & 87,625.79 sec respectively and the lead time was
103,977.12sec. Throughout this report, the aim was to strengthen the current PCE by
implementing lean tools.

PCE =𝑉𝐷 𝑇𝑖𝑚𝑒/𝐿𝑒𝑎𝑑 𝑇𝑖𝑚𝑒 ∗ 100

Process Cycle Efficiency (PCE) = Value Added time/ Lead time x 100 = 15.73%

PCE = 15.73%

According to this figures, 15.73 % of the overall lead time is spent adding value to the
commodity, while the remaining 84.27% is spent in wastage in downtime, defective
product &transportation. The minimum theoretical lead time is the total process time. This
is only possible if we can get all of our systems to work together. The PCE this process
could be considered as the below of internationally comparative level 25% (Abu et al.,
2017).

5.11 Overview of the future VSM

The future state map is a visionary map drawn to propose proposals for the Formwork
product only by considering the proposed improvement ideas. Many lean manufacturing
methods are adopted to decrease lead time, cycle time and increase output. As discussed in
the literature review for manufacturing cycle time the clock starts when work begins on
request and finishes when the piece is complete for delivery. Thus, in order to minimize
and eliminate wastes in ASSC some of the major counter measures or improvement
opportunities are proposed PCE will be strengthened at an international competitive level
after the introduction of lean tools, according to the results. Based on careful observation
of the production process, brainstorming with the experts of the company, and previous
research works, it is estimated that the NVD period for raw material inventory and shoe
production measured and can be reduced. The following improvement for the current
VSM is pr

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Table 5-14 propose for improvement for the current VSM

Wastes Improvement strategies

Excess
1. Minimize Lead Time poor process flow work procedure and skill
Inventory
1. Measure the production waiting time
2. Preventive maintenance for machines
3 implementation (Use different boxes to identify the material and easy
Waiting
to get, Use separate space to collect the un operational machinery from
the floor and easy accessible for operator and material)
4. Minimize change over time by implementation 5S
1. Using Standard procedure
Defect 2. Developing first product check in order to reduce the existence of
defects and reworks that comes by group.
1.use standard for raw material quality & awareness on cost of quality
Rework 2. develop skill & regular training ,quality document
3.commitment from management
1.Change work place arrangements (21.35% of waste in transportation
Transport
due to poor shop floor)
ation
2.5S implementation

With the involvement of lean tools, it was predicted that a number of labor could be
reduced from shoe processing line. The unnecessary motion of labor in the processing line
was also considered as the manufacturing waste proposed by machineries layout by
rearranging the machines layout. The expected numbers of eliminated labor were
documented in the table 5-15.
Table 5-15 Present and expected Labor of in the shoe production line

Name of No of labor at current state No of labor at future state

stages skilled Semiskilled unskilled skilled semiskilled Unskilled

Cutting 2 1 1 1 1 1

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Sock Lining
3 5 6 1 2 3
Preparation

Insole
3 5 6 1 3 4
Preparation
Stitching 28 10 29 19 6 19
Lasting &
17 15 14 15 13 11
Finishing
Total 53 36 56 37 25 38

At present state, it was seen that throughout the different processing stages of SAWA
Lafrica shoe production line, total labor were 145 where skilled , Semiskilled and
unskilled were 53, 36 and 56 respectively. At future state, if the lean tools will implement,
it was expected that different types of bottlenecks and NVD activities will be reduced thus
the present number of labor will also be reduced from 142 to 99 where skilled, semiskilled
and unskilled were 37, 25 and 38 respectively. Because of a number of unwanted labors
were involved to manage the different types of bottlenecks and NVD activities.

5.12 Future SAWA Lafrica production line

In the future VSM, after a deep brainstorming and an intense observation in SAWA
Lafrica the VD and NVD time were calculated and documented in table 5-16.
Table 5-16 Future state VD and NVD time analysis of SAWA Lafric shoe product

Average VD Time
Processing Stages Average NVD Time(Sec)
(Sec)

Receiving Inventory 0 960 (60%)

Cutting 433 107 (50%)

Sock Lining preparation 111 68 (50%)
Insole preparation 191 30
Stitching 3029 223 (75%)

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 Lasting and Finishing 1011 161 (75%)
Shipping inventory 0 22,584 (50%)
Total 4775 23,174
Percentage 17.08% 82.92%

It was expected, after the implementation of lean tools the current state NVD times could
be reduced at 59%. In this study, based on intense observation, brainstorming and previous
regarding studies it was assumed that the NVD time of receiving stage of could be reduced
at least 60% (960sec), the NVD time of cutting stage could be also be reduced at least 50%
(107 sec) and the NVD time of Sock Lining preparation stage could be also be reduced
50% (68 sec). The NVD time of stitching could be reduced to 75% (223Sec),Lasting and
finishing could be reduced 75%(161Sec) from the current state and in the future state
these NVD times could be 960 sec, 107sec, 68Sec, 30Sec,223Sec, 161Sec and 22,584Sec
which could be seen in table 5.13 The Fig 5.10 was the future VSM of shoe production
line.

5.12.1 Future process cycle efficiency Analysis (PCE)

PCE is calculated as a percentage of the ratio of VD time to lead time, with lead time
equaling the amount of VD and NVD time. On the production line, the VD and NVD
times were discovered to be 4,775sec and 23,174sec the lead time was 27,949seconds.
Throughout this report, the aim was to strengthen the current PCE by implementing lean
tools such as VSM, Pareto analysis, Pareto map.

Future PCE of shoe production line:

➢ In the shoe production line, Value Added time = 4,775Sec

➢ Non Value Added time = 23,174sec

Expected Lead time = Value Added time + Non Value Added time = 4,775sec + 23,174sec
= 27,949seconds

Process Cycle Efficiency (PCE) = Value Added time/ Lead time x 100 = 17.08%which is
considered as the internationally competitive level 25%

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5.12.2 Future takt time
The present takt time of the production line was 7.20 sec per case production and it was
expected that after the adoption of lean tools and SS methodologies this could be reduced.
i.e

Takt time = 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑇𝑖𝑚𝑒/𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐷𝑒𝑚𝑎𝑛𝑑

Future Takt time of SAWA Lafrica shoe production line:

➢ Working shift per day = 2 shift

➢ One shift = 7.75 hours or 27900 Sec
➢ Two shift time = 15.5 hours or 55,800 Sec

Total change over time = 1 hour or 3600 sec Lunchtime = 30 minutes or 1800 Sec

Daily customer demand = 5000 pair Takt time =55800/5000 = 11.16sec/pair

The present takt time of court shoe production line was 7.20 sec per case production and it
was expected that after the adoption of lean tools and SS methodologies this could be
reduced to 7.002 sec per case production. So, it seems that the lean tools and SS
methodologies could bring the revolution beyond the speed of production of any
production line.

Table 5-17 Future state Down Time (D/T), Cycle Time (C/T) and Up Time (U/T) data
of SAWA Lafrica
Sock Lining
Cutting(sec) Insole preparation(sec) Stitching(sec) Lasting(sec)
preparation (sec)
U/T U/T( U/T( U/T( U/T(
D/T C/T D/T C/T D/T C/T D/T C/T D/T C/T
(%) %) %) %) %)
120 540 78 83 179 54 222 166 25 591 3252 82 204 1655 83

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 Figure 5-10 Future VSM for SAWA Lafric
The basic components of future VSM were production control, customers, production
supervisor, suppliers, transportation, different stages of processing line like as receiving
inventory, cutting, Sock Lining preparation, out sole Preparation, Stitching, Lasting &
finishing and shipment inventory.

The production starts with taking the order from customer by telephone or email. Then the
required raw materials were collected from the suppliers. Finally raw materials were
transformed into different section of the production and the final product receiving
inventory stage to shipment stage.

In this future VSM the basic promising changes were the reduction of total number of
labor which was observed at every processing stage, reduction of NVD time, improved up
time (U/T) which was also seen at every processing stage of production line. In the future
state, if the lean tools will implement, it was expected that different types of bottlenecks
and NVD activities will be reduced thus the present number of labor will also be reduced
from 145 to 100 where skilled, semiskilled and unskilled were 53, 36 and 56 respectively.
After the implementation of lean tools it was expected 45 labors could be reduced could be
reserved for other jobs. The U/T cutting, Sock Lining preparation, Out sole Preparation,
Etabezu Nemera Page 76
Stitching, Lasting & finishing could be consecutively 78%, 54%,25% , 82% and 83%
respectively but at current state the U/T of cutting, Sock Lining preparation, Out sole
Preparation, Stitching ,Lasting & finishing were consecutively 63%, 33%, 25% ,70% and
75%respectively.

5.13 Interview Analysis

During Anbessa shoe factory observation and taken an interview with different
departments in the factory that of the lean cultures associated with product development
center (PDC), sales & marketing, production department, quality, system, compliance &
kaizen in relation with waste reduction and also integrate with purchasing and distribution
including human resource department for enhancing performance with skilled manpower
and to become competitive in the international market.

5.13.1 Lean Maturity (PDC)

In product development center (PDC) idea for new product is first comes from marketing,
sales & customer requests are changed to prototype and the next stage is development &
the product is evaluated in marketing and sales department. To sustain these steps by
giving continuous training in relation with productivity improvements, specific product
orientation, customer expectation, increasing quality level to meet customers’ needs.
Nevertheless, due to cost in branding the exporter are branded in their name rather than in
the manufacturers name Anbessa and the resource are not using breakthrough solutions.
Table 5-18 Rating of Lean maturity response to PDC

Sr. No Parameters rating

1 Customer expectation 2

2 breakthrough solutions vs. incremental improvement 2

3 Innovative process 1

4 Benchmarking 2

5 work study 2

6 VSM 1

7 lead time & wastage 1

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As a result of limited resources, skill and technology accessibility they are not using an
innovative processes instead we are using reverse engineering and this makes the industry
using approaches in products, idea, process and previous work done. Healthy
benchmarking approach will deliver 196 design / annual standard to the market. Due to
this the industry focus only on time study for new products but they limited in method
study with the problems facing not to work on method study are skill limitation , lack of
knowledge on the property of leather , minimum experience of the workforce in the sector.
Therefore, Time study did at initial process, design productivity evaluations,
commercialization in pilot production stages. At this stages the value added activities &
non value added activity analysis are not clearly started rather in design productivity we
evaluating the non-value added activities and lack in exporting in other brands, skill,
information and technology gap, system is very poor and not organized, under material
quality, marketing, social compliance, government practically not supporting the sector.

A total of seven maturity evaluation criterion was raised and discussed .None of the
parameters are found to be in an acceptance / best practice, four of the seven parameters
are require improvement and three of the two parameters are require introduction

5.13.2 Sales and Marketing

In the Sales & Marketing department we focus on Customer Satisfaction and Customer
Collaboration During customer satisfaction they identify their customers starting from
planning identifying &knowing customer is mandatory so as to achieve our goal.
Table 5-19 Rating of Lean maturity response to Sales and Marketing
Customer Satisfaction Customer Collaboration

Sr.
Parameters rating Sr. No Parameters rating
No
a team of
Identify primary
1 3 1 customers and 2
customer
company
customer sharing of
2 2 2 1
satisfaction survey resources

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 customer
complaints
3 2 3 sharing of Benefit 1
handling
mechanism
working together
response to the in product design
4 2 4 2
complaints and marketing
activities
root causes of
5 customers’ 2
complaints

Our customer in local markets are low income & middle income we are around 42 shops
in local market and with related to export market we plan to open show room in Kenya,
South Africa and Nigeria for export markets usually our product incur low price with high
quality so customers are countries all over the world except china because China is the
potential exporter in the world.
In relation with customer satisfaction survey for local market we use our shop as a tool to
survey we distribute and analyze questionnaire either quarterly or annually and for
potential local buyers like BJI, Harrer Beer, Waliya intergroup and Meta Abbo marketing
department sent a questionnaire to survey their level of satisfactory . As a drawback the
industry don’t have any sharing resource instead we simply upload our products in web
address so as to look the product to the customers and also we don’t work together in
product design and marketing activities rather receiving comments from the customers and
make correction accordingly.
A total of nine maturity evaluation criterion was raised and discussed out of nine five
questions were assessed on customer satisfaction and four were prepared to assess
customer collaboration. From customer satisfaction the company Identify primary
customer is found to be in an acceptance / best practice, four of the seven parameters are
require improvement. From customer collaboration none of the parameters are found to be

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in an acceptance / best practice, two of the four parameters are needs improvement and
three of the two parameters are needs introduction.

5.13.3 Lean Maturity on production

The lean cultures associated with Production the order quantity is released from 10,000
pairs/day to 11,000 pairs/day & we produce these order quantity in +10% of this order
quantity. Based on the customer demand the planning & the production department
produce according to the plan to meet the delivery date. The current production quantity of
the branches is 3,500Pairs/ day & including this factory it produces 4,100Pairs / day.
Monthly the production quantity is 94,000pairs but the installed capacity is 10,000pairs/
day. The capacity of the machine for this light shoe is 1000pairs/day and the total
production became 5100 pairs/ day & the remaining 4900pairs/day either doubling this
light shoe making machine or used other technique.
Scheduled maintenance of machine is not practiced rather we use breakdown machine
maintenance activities, these may cause increase the downtime caused by machine failure.
Table 5-20 Rating of Lean maturity response to Production

Sr. No Parameters Level

1 production of goods in quantities equal to customer orders 1

2 production plans to meet delivery date 2

3 production quantity 1

4 machine maintenance 1
5 work study 2
6 VSM 1
7 lead time & wastage 1

8 Reduction of machine setup time 1

9 Effective 5S activity using checklist, symbols for communication. 2
10 shop floor layout & proper usage 2

11 spotted errors are treated as an opportunity to improve 2

12 company apply the time study 3

13 apply the value stream mapping so as to reduce lead time in production 1

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Secondly the substandard raw material result in increasing larger setup time in stitching &
lasting .To simplify this problem the four department (Quality, production , maintenance
& PDC )work on this specific job break down by listing technical issue, manpower
allocation or any other issues to minimize setup time. they also establish 5S , audited &
maintained in cutting department but in stitching are not started because of the reason
there is stock problem .Marketing /customer release in +10% for long period of time this
additional products became large and create problem in stock. Therefore by setting
production standard first, Standard minute value (SMV) from PDC and second taking
international benchmark example the benchmark standard in cutting 2800stroke, Stitching
section 15 pairs/ person, lasting 25pair/person & we evaluate the performance according to
this standard based on their skill rate.
A total of thirteen maturity evaluation criterion was raised and discussed .One of the
parameters are found to be in an acceptance / best practice, five of the thirteen parameters
are require improvement and three of the seven parameters are require introduction.

5.13.4 Lean Maturity on Quality

The lean cultures associated with Quality, System and Compliance & Kaizen the product
in the industry is push type and all the raw material will be ready for the next day.

Table 5-21 Rating of Lean maturity response to Quality

Sr. No Parameters Level

1 efforts to identify and eliminate all forms of waste 2

2 efforts used to make it quick and easy to identify abnormalities 1
3 On-Time Delivery 1
4 quality at the source 3
5 Raw material, kanbans 3
6 Organization of Finished inventories 2
7 Standardized work 2
8 Pull Systems 3
9 Maintenance Programs 1

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 10 efforts to identify Muri 3
11 value streams 1
12 Effective 5S activity using checklist, symbols for communication. 2
13 Changeover/set-up times 1
14 Layout for Flow 1
15 Multi-skilled operators (utility Team) 3
16 manage and reduce the scrap & wastes 1
During quality assurance we assured machine, manpower and process. The case company
also focuses on different wastes and its elimination or reduction processes in relation with
waiting, over processing, over production, transportation and other related wastes but they
lack focusing on root cause analysis to eliminates wastes .Therefore, if problems occur we
are traceability checking mechanism and worked with kanabans system (Bill card) starting
from raw material to final.

We are work in standard in different perspective quality standard if a produced product

didn’t meet quality standard it will not pass to the next section, capacity standard means
for example for the cutting department the capacity of the cutter per head already stated if
it will not pass to the next section. Our quality standards are raw material, process,
finished shoe, packing. Our production & quality capacity is based on benchmark not
directly with takt time and they don’t have a value stream mapping rather implementing
5S and Kaizen before two year and also re- implemented under evaluation system.

A total of sixteen maturity evaluation criterion was raised and discussed .Five of the
parameters are found to be in an acceptance / best practice, four of the sixteen parameters
are require improvement and seven of the parameters are require introduction.

5.13.5 Lean Maturity on purchasing and distribution

During Purchasing and Distribution, the company considers on Supplier Collaboration and
Supplier Coordination to strengthen their integration with suppliers and they hold safety
stock six months for imported materials but for local market only holds for fifteen days.

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Table 5-22 Rating of Lean maturity response to Purchasing and distribution

Sr. No Parameters Level

1 orders raw material in required quantity 3
2 evaluates supplier performance 2
3 value stream mapping so as to reduce lead time 2
4 company and suppliers are working as a team 1
5 company and suppliers sharing resources 1
company and suppliers share costs and mutual benefits from joint
6 1
improvement
company and suppliers exchange important business information at strategic
7 3
level
8 company and suppliers urgently inform each other when contingencies occur 3

We strictly evaluate supplier performance based on price and they don’t have quality
problem because most of our suppliers are from Italy and they meet the requirement. In
local market the source for out sole the company needs 30 days and leather 20 days. For
imported material our safety stock is for 6 month and we plan to get Foreign exchange
from government every 3 or 4 month putting this in to consideration to minimize lead
time.
A total of eight maturity evaluation criterion was raised and discussed .Three of the
parameters are found to be in an acceptance / best practice, two of the eight parameters
are require improvement and three of the sixteen parameters are require introduction

5.13.6 Lean Maturity on Human Resource

In relation with Human Resource the company not conducts formal employee satisfaction
survey but the company allocate budget for production employees for new coming
employees and we have employee compliance file & employee having any complain with
our service give us comments and implementing employee upgrading system if they
satisfy the criteria.

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A total of fourteen maturity evaluation criterion was raised and discussed .Three of the
parameters are found to be in an acceptance / best practice, six of the fourteen parameters
are require improvement and five of the fourteen parameters are require introduction.

Table 5-23 Rating of Lean maturity response to Human Resource

Sr. No Parameters Level

1 formal employee satisfaction survey 1
allocate & use/implement significant share of budget for training & for
2 3
capacity building
3 address employees’ dissatisfaction 2
4 opportunities for employees with outstanding performance 1
5 benefit packages for its employees 2
ergonomically designed work stations and comfortable air conditioning
6 2
system
7 emergency evacuation plan with emergency exits 2
Institution supply & train how to use it appropriate personal protective
8 2
equipment
first aid and/or other health care services in work place & train how to
9 3
use it
Availability of separate (women /male ) bathrooms, hand wash, locker
10 3
rooms
Support for cross cutting issues, fund raising, sport festivals, periodic
11 1
get-together parties prevail
12 bring the opinion of the customers to the Institution 2
13 Employees give constructive suggestions to the Institution 1
14 Level of staff turnover 1

5.14 Results and findings of poor productivity

The major issues are outlined in this section, which are divided into two categories:
internal and external. Internal problems are issues that a company should overcome on its
own by using its own capabilities and resources to enhance its operational performance.

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5.14.1 Issues at the firm's or company's stage
For ease of management, the problems are classified under the case company's major
processes these are discussed as follows

➢ Production section

High manufacturing costs; rework costs, non-optimal resource utilization, Low

output of managers in quality management and no encouraging workers towards
productivity. There is a high rate of defect rate of 9.629%.
Poor and disorganized production plan: no systematic method of authorizing,
documenting, and recording the various stages of plans in such a way that they can
be used as feedback for assessing and tracking results, as well as taking corrective
action.
Owing to a lack of proper maintenance, system breakdown, and power outages,
there is a high rate of downtime 3.28%, excess inventory of, 14.93%.
Poor plant layout the cutting & stitching sections are located in different floor.
This result in enhance transportation wastage i.e. 21.35% of waste in
transportation due to poor shop floor
Communication breakdown with other agencies, such as sales and distribution,
procurement, and material stock management.
Low labor productivity, absenteeism rate of case company
3.389pairofshoe/shift/worker, and 4.58 percent respectively.

The average OEE is 20% and this implies that the case company is not productive
the aim of this research is improving the productivity by implementing lean tools.
.
➢ Product development section

There is no known method for conducting fashion forecasting by considering

competitors from various regions of the world.
Due to limited resources, skill and technology accessibility they are not using an
innovative processes instead they are used reverse engineering.

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 Due to skill limitation and work experience of the workforce the department uses
time study other than work study.

➢ Sales and Marketing process problems

Owing to high production costs, they are not price competitive in international
market.
No means to survey customer satisfaction level for export market
The customer and the industry don’t have any sharing of resource and database.
Weak distribution system management: high inventory hold-up - finished products
stock, resulting in capital constraints, obsolete (damage, faulty, or despair) stock
in each retail store, low annual sale results, and high selling and distribution costs
Lack of market assessment for exports local customer needs

➢ Purchasing and Distribution process problems

Delay in delivery time for export orders

Poor inventory management with retail shops and warehouses
Stick on limited number of suppliers they are updates themselves related to the
market.
Lacks measuring the performance of the suppliers

➢ Human Resources problems

Employee dissatisfaction (unsatisfactory pay, no schooling fee, and no way of

identifying skill gap & give training accordingly, no house allowances) reduces
labor productivity.
Skill enhancement trainings are not delivered on a regular basis in a planned and
recorded manner, such as by creating appropriate training records such as a list of
defined training topics that occur as a result of actual skill gap audits and training
reports. The training effort does not involve management; instead, it focuses on
roles such as operator or supervisor.
Lack of varied and up-to-date training programs
poor execution of training plans; and poor management and administration skills

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5.14.2 External or national level problems
These are usually sector-level issues that cannot be addressed solely by the company,
necessitating integrated national or level solutions. There are some of them:
A shortage of skilled workers
A shortage of foreign currency
RMs is costly, and there is a wide variety of prices for finished leather, imported
accessories, and components.
Owing to a long procurement lead time and a scarcity of processed leather, there
will be a delay in delivery.
The derogatory image of Ethiopia and "made in Ethiopia shoes" makes foreign
marketing of Anbessa shoes difficult.
The firm's activities are not coordinated with those of other companies, raw
material suppliers, and supporting institutions, both public and private, that
operate in different segments of the value chain. This is a prerequisite for serving
the export market.
Lack of subcontracting, as well as a lack of sharing of resources and ideas among
businesses.
Owing to a lack of information system, there is insufficient supply chain
management even within the company (poor coordination and linkage between
departments).

5.15 Summary of finding

Despite the fact that there are internal/firm level and external problems, the study's
emphasis is on firm level issues because these issues can be addressed by the firm using its
own potentials, tools, and relevant methods to enhance organizational efficiency.

External issues, on the other hand, necessitate the involvement of various bodies –
government, organizations, and individuals.

The intervention areas are all linked in some way to lead time, process cycle efficiency,
employee satisfaction, quality management, and customer satisfaction issues, which are all

Etabezu Nemera Page 87

problems with overall organizational performance. To solve such a problem, a complete
performance improvement model proposed.

Table 5-24 Improvement of Current performance & Proposed performance using

Lean Tools

Future(Proposed)
Lean Tools Current (Existing) situation
situation
PCE 7.79% 17.05%
Takt Time 14.05Sec/Pair 11.16Sec/Pair
Lead Time 61,234Sec 27,949Sec.

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CHAPTER SIX

6 6. PROPOSED THE FUTURE STATES OF SHOE PRODUCTION LINE

6.1 INTRODUCTION
Continuous updating is not only expected to build a significant source of competitive
advantage in today's era of rapid technological developments, but it is also seen as a
necessity for the survival of today's competitive global market . As a result, increasing
process cycle efficiency & decrease a lead time is a key strategy for staying competitive. A
proposed state of shoe production line is proposed based on real facts to increase process
efficiency.

6.2 Development of future states of shoe production Line Criteria

Based on the case study and literature review, certain requirements are considered when
designing the future states of shoe production line are addressing the potential root cause
of low productivity problems; being a quality improvement tool; providing a clearly
established wastage minimization tool; versatility to extend from sample production to all
type of model production , flexibility to extend from the operation to the firm stage,
including anyone from top management to low-level workers.

6.3 Proposed Model

Much of the research work regarding Lean maturity and firm success is based only on
the relationship between the variables (types of integrations and the firm performance)
.However, it's also important to look at it from the perspective of the issues and continual
improvement on productivity and proposing solution.

Etabezu Nemera Page 89

 Figure 6-1 Performance Improvement Model

6.4 Model description

The following section discussed the model and how its enhance the performance of the
case study

6.4.1 Awareness creation for management & Manpower

One of the most serious issues confronting most shoe businesses is a lack of suitably
qualified management and personnel. The issue is that most businesses are too small to run
their own training programs for both management and employees. There is no longer a
pool of trained people from which to recruit as a result of the decline in manufacturing
activity by large shoe making groups.

The management and workers of the industry’s training must be a collaborative effort. The
industries should collaborate to promote the formation of training organizations and to
ensure their ongoing funding. The branding of the exporting market is determined by the

Etabezu Nemera Page 90

name of the customer this implies that to maintain brand recognition the industry should
allocate budget of 3.5-4 percent of turnover for advertisement.

Wide open plan offices with different roles clustered together, such as the sales office next
to the purchasing office, which is next to the production planning department, etc., are
almost only found in companies with well-controlled and highly efficient administration
functions. This has a number of advantages: It removes many of the half-jobs that occur on
the outskirts of each department, enhances coordination, and boosts productivity. However
during the site visit the researcher notices that even though their office are close to each
other but there is a problem of coordination between sales and production section.

Once awareness created by the management it should be transferred to manpower by

forming a team.. The team reports every activities to the management and this team is
responsible for a variety of tasks, including forming sub-teams, attending daily meetings,
taking regular training prepared by the management , discussed on how to minimize
wastes ,how to draw VSM for all types of model so as to minimize lead time, enhance
process cycle efficiency and awareness creation for exceeding customer quality and the
management preparing rewards for those who achieve greater success within the subgroup
and as a team in general

Inside the plant, the team comprises a multidisciplinary working group. Production staff,
product development section, quality controllers, system and compliance staff, planning
staff and technicians are among the members of this small working group. The team will
last as long as the factory is in operation, but the members will rotate at a set interval
determined by the team.

6.4.2 Review of current Situation

The production processes are analyzed, the value added times, non-value added times at
all process section , the lead times, PCE are registered, and the plant's ability is
determined during this step. Furthermore, waste or modifications from the manufacturing
process are discovered. As a result, it is suggested that the VSM tool be used.

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6.4.3 Improvement Strategies
All businesses should strive to improve the skills of their existing workforce while also
attempting to train new employees to an adequate level. Overall, the chances of finding
workers who have already been trained are slim.
In order to eliminate NVD operations and waste some enhancement techniques are
emerging, such as hiring skill manpower, giving on job training , continuous improvement,
and incorporating 5s implementation into the production management system and Change
work place arrangements. One of the strategies used in improving productivity used in this
research is lean maturity. The following assumptions are used to develop a lean maturity
assessment (Kapanowski, 2015)

Color code for the maturity level for each code is represents as shown below:

➢ Green: Above industry baseline

➢ Yellow: At or near industry baseline
➢ Red: Below industry baseline

Etabezu Nemera Page 92

Table 6-1 Existing company Lean maturity Level

Coloring Description value

Below industry baseline 0 up to 1
at or near industry baseline 1 up to 2
Above industry baseline 2 up to 3
Lean Maturity Assessment
Company : Anbessa Shoe share company
Key Elements Level 1 Level 2 Level 3
Basic Company Average Company Our Best Company
Leadership and working culture

Company Vision and Company vision is not readily Company mission, vision, Leading organizations have
Administration visible or known by employees and values, guiding principles, regular employee participation and
process deployment improvement in the administrative are core beliefs, etc. are interpret vision as
not linked with lean enterprise. consistent and visible on it applies to their work.
internal and external Administrative teams are
documents as appropriate utilizing lean tools to communicate
with management.
Continual No mechanism or time for Mechanism for change Improvements happens routinely
Improvement individual involvement in has been put in place and with employees actively participate
Activities process improvement. all individuals have some in making improvements to
experience of the their own and other areas.
continual improvement
process

Etabezu Nemera Page 93

Customer Customer satisfaction and Customers are surveyed Customer compliance,
Satisfaction and input is measured as a lagging on basic elements of monitoring and control of
Collaboration indicator in terms of sales satisfaction and performance based on scores,
volume, complaints, and establishing service levels and formal customer satisfaction
unsolicited input through identifying the survey reviews are
root cause analysis. done
Customer Customer coordination and Customers are surveyed Customer and the company
Coordination (COR) input is measured as a lagging on basic elements of exchange information at operational
indicator in terms of when coordination and & strategic level & identifying &
contingency occur establishing service levels solving compliance
through identifying the through identifying the root cause
root cause analysis for the analysis for the contingency .
contingency.
Supplier Supplier Collaboration and Supplier are surveyed on Supplier are surveyed on
Collaboration and input is measured as a lagging basic performance basic performance measurement
Collaboration indicator in terms of performance measurement and share resources like database,
IT network, equipment
Supplier Supplier coordination and Suppliers are surveyed on supplier and the company exchange
Coordination (COR) input is measured as a lagging basic elements of information at operational &
indicator in terms of when coordination and strategic level & identifying
contingency occur performance establishing service levels &jointly forecast customer demand
through identifying the
root cause analysis for the
contingency.
Communication Not consistently delivered in Communication is Effective Communication planning,
timely, accurate, frequent, or frequent and tracking, and improving is a
convenient format planned, but still not regular part of the company
regularly culture
achieving timely,
accurate, or

Etabezu Nemera Page 94

 convenient format for key
stakeholders

Supplier Alignment The supplier relationship is Some communication has Through evaluating the supplier's
and Development limited to purchasing, receiving started with key suppliers. performance giving training in
inspection and price Samples are shared to lean basics. Customer and
negotiations. validate incoming quality. Supplier are working together
in continuous improvement
activities.
Training Training events are based on Training has pre- and Training is based on solicited
employee availability and HR post-test measures, has analysis of business needs
capacity; training rollout is not some basis in training which are included both theoretical
aligned with training needs needs analysis is and practical activities
requirements and is evaluation largely theory based
of training does not measure
skill transfer
Lean tools associated with Production and Quality culture
Production plan and With some work instruction for Based on the Some processes have been
its standardized work Certain process customer demand mapped utilizing Lean tools.
the planning Standard work exists on those
department plans & processes.
produces according
the work
instructions exists
throughout the
industry to meet the
delivery date.

Etabezu Nemera Page 95

innovative processes Processes have evolved over time. Processes have design development using innovative
No visual representation of evolved using processes
innovative processes reverse engineering
processes
Work Study Designed have evolved traditional Designed have Designed have evolved design software.
way. No visual representation of evolved design Using work study .
time study & work study software. Using
time study .
Value Stream Processes have evolved over Some processes Current State & Future Maps
Mapping time. No visual representation have flow maps or have been created and are
of VAD stages & NVAD stages diagrams and can used to drive some
show some improvements.
improvements from
the tool.

Health, Safety and Environment

Ergonomics / Job Zero or little metrics but not safety Some metrics but Full metrics tracking issues, full
Safety focus; issue recurring not safety problem resolution; Some
focus; issue issues but non-quick resolution
recurring
Waste reduction and no waste/defect tracking Defect tracking Wastes/defects are tracked at the
repenishment system replenishment mechanisms exists. exists primarily department level. Basic analysis with some
at higher level and improvements. Green environment focus in
Little focus on mission, vision, and metrics
environment

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Flow System / No flow exist from order release to Some processes All key processes have been
Kanban shipping. Process has back & forth have flow streamlined utilizing flow tools.
steps. maps/diagrams WIP have been implemented, backflows are
and can show some measured and
improvements from reduced through continuous improvements
the tool.

Pull System / Kanban Orders are placed and work Some finished kanabans cards are used in
orders are released to goods are manufacturing.
manufacturing. produced based on
"Best
Guess". Kanban
cards are
utilized for supplies
Total Productive No maintenance program Some PM process is designed to check
Maintenance (TPM) exists. Machines/Equipment is machines/equipment thought has gone into daily,
repaired has PM weekly and monthly base.
at breakdown. checks. Uptime
increases cannot be
attributed to PM
checks.
Change Over/ Set -up Some knowledge exists concerning Set-up time is Set-up time is measured correctly (Corp
set-up times but nothing is measured on key forms) on key equipment with analysis
documented. equipment through leading to improvements.
runtime or
downtime.
5S - Work Place Work space is not organized Work space is Level 3 on the 5S audit.
Organization organized and clean.
5S has not been
implemented.

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6.4.4 Proposed states of shoe production Line
After analysing the current VSM the NVD and wastes are minimized the future VSM will
be proposed This VSM will have low lead time The production processes are analysed, the
value added times , non-value added times at all process section , the lead times, PCE are
registered, the plant's ability is determined during this step and lean maturity are assess for
different section and summarized as three sections; Leadership and working culture, Lean
tools associated with Production, Quality culture and Health, Safety and Environment .
Furthermore, waste or modifications from the manufacturing process are discovered.

Etabezu Nemera Page 98

Table 6-2 Propose company Lean maturity Level

Lean Maturity Assessment

Company : Anbessa Shoe share company
Key Elements Level 1 Level 2 Level 3
Basic Company Average Company Our Best Company
Leadership and working culture
Company vision is not readily Company mission, vision, Leading organizations have
Visible or known by
employees and improvement regular employee participation
values, guiding principles, core
in the administrative are not and interpret vision as
Company Vision and linked with lean enterprise.
Administration process it applies to their work.
beliefs, etc. are consistent and
deployment Administrative teams are
utilizing lean tools to
visible on internal and external communicate with
management.
documents as appropriate
Improvements happens
No mechanism or time for Mechanism for change has routinely with employees
actively participate
Continual Improvement
individual involvement in been put in place and all in making improvements to
Activities
process improvement. individuals have some their own and other areas.
experience of the continual
improvement process
Customer satisfaction and Customers are surveyed on Customer compliance,
basic elements of satisfaction
Customer Satisfaction and
and establishing service levels
Collaboration input is measured as a lagging monitoring and control of
through identifying the root
cause analysis .

Etabezu Nemera Page 99

 indicator in terms of sales performance based on scores,
and formal customer
volume, complaints, and
satisfaction survey reviews are
unsolicited input done
Customer and the company
exchange information at
Customer coordination and Customers are surveyed on operational & strategic level &
identifying & solving
compliance
basic elements of coordination
Customer Coordination (COR)
and establishing service levels through identifying the root
input is measured as a lagging through identifying the root cause analysis for the
cause analysis for the contingency .
contingency .
indicator in terms of when
contingency occur
Supplier Collaboration and Supplier are surveyed on Supplier are surveyed on
basic performance
basic performance measurement and share
Supplier Collabortion and input is measured as a lagging
measurement resources like database, IT
Collaboration
network, equipment
indicator in terms of
performance
Supplier coordination and suppliers are surveyed on
basic elements of coordination supplier and the company
and establishing service levels exchange information at
Supplier Coordination (COR) input is measured as a lagging through identifying the root operational & strategic level &
cause analysis for the identifying &jointly forecast
contingency . customer demand
indicator in terms of when

Etabezu Nemera Page 100

 contingency occur
performance
Communication is frequent Effective Communication
Not consistently delivered in
and planning,
timely, accurate, frequent, or planned, but still not regularly tracking, and improving is a
Communication
convenient format achieving timely, accurate, or regular part of the company
convenient format for key culture
stakeholders
Through evaluating the
The supplier relationship is Some communication has
supplier's
limited to purchasing, performance giving training
Started with key suppliers.
Supplier Alignment and receiving in
Development inspection and price Samples are shared to lean basics. Customer and
negotiations. validate incoming quality. Supplier are working together
in continuous improvement
activities.
Training events are based on Training has pre- and post-test Training is based on solicited
employee availability and HR measures, has some basis in analysis of business needs
which are included both
capacity; training rollout is
training needs analysis is theroretical and practical
not
activities
Training
aligned with training needs largely theory based
requirements and is
evaluation
of training does not measure
skill transfer
Lean tools associated with Production and Quality culture
Based on the customer demand
Production plan and its With some work instruction
the planning department plans Some processes have been
standardized work for Certain process
& produces according the

Etabezu Nemera Page 101

 work instructions exists
Throughout the industry to
mapped utilizing Lean tools.
meet the delivery date.
Standard work exists on those
processes.
Processes have evolved over
Processes have evolved using design development using
innovative processes time. No visual representation
reverse engineering processes innovative processes
of innovative processes
Designed have evolved
Designed have evolved
traditional way. No visual Designed have evolved design
Work Study design software. Using work
representation of time study software. Using time study.
study .
& work study
Some processes have flow
Processes have evolved over maps or diagrams and can Current State & Future Maps
show some
Time. No visual
Value Stream Mapping Improvements from the tool. have been created and are
representation
of VAD stages & NVAD
used to drive some
stages
improvements.

Health, Safety and Environment

Full metrics tracking issues,
Some metrics but not safety
full
Zero or little metrics but not
Ergonomics / Job Safety focus; issue recurring problem resolution; Some
safety focus; issue recurring
issues but non-quick
resolution
no waste/defect tracking Defect tracking exists Wastes/defects are tracked at
Waste reduction and
replenishment mechanisms primarily the
repenishment system
exists. at higher level and Little focus department level. Basic

Etabezu Nemera Page 102

 on environment analysis with some
improvements. Green
environment focus in mission,
vision, and metrics
Some processes have flow
All key processes have been
maps/diagrams
streamlined utilizing flow
No flow exists from order and can show some
tools.
Flow System / Kanban release to shipping. Process
WIP have been implemented,
has back & forth steps. Improvements from the tool.
backflows are measured and
reduced through continuous
improvements
Orders are placed and work Some finished goods are Kanban cards are used in
orders are released to produced based on "Best manaufacturing.
Pull System / Kanban
manufacturing. Guess". Kanban cards are
utilized for supplies
Some machines/equipment has PM process is designed to
No maintenance program
PM check
Total Productive Maintenance Exists. Machines/Equipment
Checks. Uptime increases can thought has gone into daily,
(TPM) is repaired
Not be attributed to PM
At breakdown. weekly and monthly base.
checks.
Set-up time is measured
Some knowledge exists Set-up time is measured on
correctly (Corp forms) on key
Change Over/ Set –up concerning set-up times but key equipment through
equipment with analysis
nothing is documented. runtime or downtime.
leading to improvements.
Work space is organized and
5S - Work Place Organization Work space is not organized clean. 5S has not been Level 3 on the 5S audit.
implemented.

Etabezu Nemera Page 103

6.4.5 Continual Improvement-Kaizen
This step encourages a philosophy of continuous development and the continuous
improvement of manufacturing processes. The Kaizen tool was proposed as a means of
accomplishing this. The aim of Kaizen is to eradicate exceptional changes discovered
through Kaizen events.

Etabezu Nemera Page 104

CHAPTER SEVEN

7 CONCLUSION, RECOMMENDATION AND FUTURE WORK

7.1 Conclusion
The challenges of the ASSC in terms of productivity is summarized as follows:

i. The primary challenge in case company is shortage of input (components and

accessories – mainly imported): Most of these materials are imported from
China, turkey, Vietnam, Brazil, etc, there is a lack of infrastructure for
knowledge exchange and material movement communication systems,
transportation, port issues and high demurrage cost .
ii. Lack of Integration: Most companies only have a "companywide image" rather
than a "country image," resulting in a disintegrated industrial structure. Because
of a lack of confidence, there was almost no horizontal linkage between
businesses. The international sector, on the other hand, compelled local
businesses to band together. The footwear industry has recently formed an
association that might be able to assist them in resolving some of their issues.
iii. Poor Production: poor preparation and management of production, as well as
low productivity (due to a lack of awareness and skills in the jobs performed).
iv. Marketing: insufficient marketing knowledge and delivery system issues
v. Bad supply chain management has a huge effect on a company's business
efficiency. The marketing, planning, and production roles have a shaky
relationship. It is difficult to meet customer needs with this poor connection,
particularly in terms of price and delivery time.
vi. The relatively low quality of domestic leather used in the industry (high quality
leather is mainly for export) and the high cost of imported inputs are the two
key factors affecting the competitiveness of leather footwear.
vii. Due to a time constraint, the analysis focuses on Anbessa Shoe Sc. It is
important to see the effect of the model by applying it in other factories.

Etabezu Nemera Page 105

7.2 Recommendation
It is recommended that some skilled manpower be hired and the existing operator should
be train and create awareness related with quality product to competitive in international
market, especially for stitching, lasting, and finishing machines. Prior to making the
operator and assistant operator capable of reducing the maintenance time, an efficient
training program should be organized.

From the interview the following are notice

i. Lack proper negotiations with the supplier. Every purchase is a trade-off

between getting the best immediate price and ensuring a stable long-term supply
chain.
ii. The sales are highly dependent on limited supplier they, should avoid being
reliant on a single country for your supplies. It’s important to be aware of what's
available on the global market.
iii. The supplier for medium size production & small size productions are the same
.The sales should be Choose suppliers that are the right size. Go to a medium-
scale supplier if you can position medium-sized orders. A small supplier will
overcharge you; a large supplier will dismiss your business as insignificant,
particularly when dealing with small end-of-season orders.
iv. Be realistic about quality; it's important to realize that certain raw hides and
skins aren't capable of producing excellent leather.
v. Actually an industry takes 6 month to produce a new model from design stage to
bulk production but internationally accepted time is takes 60 working days .
vi. It is common for cutters to be paid an incentive for cutting both economically
and quickly, and cutter incentives should usually place a greater emphasis on
material conservation than on cutting quickly. However the industry payment
system is based on attendance not performance based.
vii. The introduction of computerized stitching machines increases machine
efficiency by 30%.But the company uses manual stitching machines.

Etabezu Nemera Page 106

 viii. if the industry and the supplier have common database and other means to share
resource , then Supplier collaboration with the case company increase and as a
result productivity will be enhanced .
ix. To reduce excess inventory minimize thee 10% allowance factor in production
which makes the FG inventory became enlarged and create stock problem.
x. If schedule for preventive maintenance implemented the waiting time due to
machine failure became minimized.
xi. To minimize downtime due to poor quality of leather the quality personnel from
the ASSC quality assured the quality before shipping the leather from tanning
industry .
xii. If the payment system is based on performance, then the active employee
became satisfied and works for better performance and the passive employee
became activated to assure their salary.
xiii. 5S implementation is effective when it is understood and driven by people at all
levels. Hence a team compromising of top to ground level people is created for
effective implementation.

7.3 Future Work

i. Identifying additional performance indicators which are not considered in the
study due to data & Time shortage.
ii. 2. Implementing the model on operational level considering specific product
model family in the production and other process in the factory.
iii. 3. The study focus on Anbessa shoes Sc. due to time constraint, so that it is
necessary to see the impact of the model by implementing in other factories.

Etabezu Nemera Page 107

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Ethnobotany Research and Applications, 5, 147–158.
https://doi.org/10.17348/era.5.0.147-158
UN. (2016). International Trade Statistics Yearbook 2015. Trade by Product: Vol. II.
UNCTAD. (2018). National Green Export Reviewof Ethiopia. 300.
Urban, W. (2015). Sweden: Linköping University Electronic Press, 2016. , p. 28 An
introduction to value stream mapping and analysis Written by Jostein Langstrand
Division of Logistics and Quality Management Department of Management and
Engineering 2016) Page 18. Procedia - Social and Behavioral Sciences, 213, 728–
733. https://doi.org/10.1016/j.sbspro.2015.11.527
Wahyudin, Saleh, B. I., & Hasibuan, S. (2019). Analysis for Enhancing Quality and
Productivity Using Overall Equipment Effectiveness and Statistical Process Control
in Manufacturing Industry Case Study : Manufacturing Industry Sport Shoes in
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Technology, 4(12), 108–114.
Wan, H. da, & Chen, F. F. (2009). Decision support for lean practitioners: A web-based
adaptive assessment approach. Computers in Industry, 60(4), 277–283.
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Wholey, J. S. (1999). Performance-Based Management: Responding to the Challenges.
Public Productivity & Management Review, 22(3), 288.
https://doi.org/10.2307/3380705

Etabezu Nemera Page 111

 APPENDIX-1

Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: eetabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle

“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.
The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes

Etabezu Nemera Page 112

the attached interview questions .Your response is very crucial to the success of the
survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
I. Preliminary Information
Respondent Information

6 Your current position in the company__________________

7 Years of work experience in the company________________

8 Qualification level (highest) _________________________________

9 Gender________________

II. The criteria in lean cultures associated with Sales & Marketing
5. Customer Satisfaction (CSA)

5.1. Does the company identify its primary customer? Please explain

5.2Does the company have formal customer satisfaction survey? Please explain
5. 3 Does your company value addition exceed customers ‘expectation? Please
explain

5. 4 Does the company timely respond when Products fail? Please explain
5. 5 Does the company have customer complaints handling mechanism? Please
explain
5. 6 Does the company have documented customer complaints? Please explain
5.7 Does the company discuss the complaints of the customers with all concerned
personnel of the company? Please explain
5. 8 Does the company give fast response to the complaints as per the standard
and/or procedure? Please explain
5. 9 Does the company follow up the customers’ satisfaction after correction and
corrective action is taken? Please explain

Etabezu Nemera Page 113

 5. 10 Does the company assess the root causes of customers’ complaints? Please
explain
5. 11 Does the company take proactive measures to eliminate common causes of
customer complaints? Please explain
6. Customer Collaboration (CCL)

6.1How is working team of your company and customers so as to improve the

performance of the company ?

6.2 Does your company and customers share resources (e.g., database, IT network,
equipment)? Please explain

6.3 Does your company and customers share costs and mutual benefits from the output?
Please explain

6.4 Does your company and customers work together in product design and marketing
activities? Please explain

7. Customer Coordination (COR)

7.1 Does your company and customers exchange important business information at
strategic level? Please explain

7.2 Does your company and customers coordinate and exchange information at
operational level? Please explain

7.3 Does your company and customers urgently inform each other when contingencies
occur? Please explain

7.4 Does your company and customers jointly resolve upfront problems or contingencies,
effectively? Please explain

Etabezu Nemera Page 114

 Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: eetabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle

“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.
The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes

Etabezu Nemera Page 115

the attached interview questions .Your response is very crucial to the success of the
survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
III. Preliminary Information
Respondent Information

10 Your current position in the company__________________

11 Years of work experience in the company________________

12 Qualification level (highest) _________________________________

13 Gender________________

IV. The criteria in lean cultures

14 The lean cultures associated Production (PDT)
14.7 D
iscuss your company produces goods in quantities equal to customer orders.
14.8 D
escribe your company plans production to finish on delivery date.
14.9 D
iscuss your company levels production quantity
14.10 E
xplain your company reduces machine setup time.
14.11 D
iscuss your company effective machine maintenance with employees’ participation.
14.12 D
iscuss your company effective 5S activity using checklist, symbols for communication.
14.13 E
xplain your company appropriate shop floor layout & proper usage

Etabezu Nemera Page 116

14.14 D
iscuss in your company nobody hides faults; spotted errors are treated as an opportunity
to improve
14.15
Discuss in your company apply the time study in production
14.16 D
iscuss if your company apply the value stream mapping so as to reduce lead time in
production

Etabezu Nemera Page 117

 Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: eetabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle

“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.
The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes
the attached interview questions .Your response is very crucial to the success of the

Etabezu Nemera Page 118

survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
V. Preliminary Information
Respondent Information

15 Your current position in the company__________________

16 Years of work experience in the company________________

17 Qualification level (highest) _________________________________

18 Gender________________

VI. The criteria in lean cultures

19 The lean cultures associated with Quality
19.7 D
escribe all efforts to identify and eliminate all forms of waste on the shop floor?
(Muda)
19.7.1 8 Waste Reduction (efforts used to make it quick and easy to identify
abnormalities)
19.7.2 Zero shipping errors; when problems do arise root cause analysis eliminates them
as they occur. ( On-Time Delivery)
19.7.3 Understanding of "quality at the source" and to never pass a defect to the next
operation.( Quality)
19.7.4 Raw material, kanbans and work-in-process inventories have clear locations,
amounts are defined and there is a clear rationale for these levels(Raw Material)
19.7.5 Organization of Finished inventories. There is a clear understanding of how much
finished inventory is on-hand and why it exists. (Finished Goods)
19.8 D
escribe all efforts to identify and eliminate all forms of unevenness, fluctuation and
variation on the shop floor(Mura)
Etabezu Nemera Page 119
19.8.1 Understanding of Standard work to do a job and ways for improving standard work
to meet changes in takt time. Staffing and standardized work is intentionally
adjusted as demand changes. (Standardized work)
19.8.2 Information and materials are pulled through the entire supply chain based on real
customer demand..( Pull Systems)
19.8.3 System for synchronizing flow of material and information to meet internal and
external customer needs.( Synchronization)
19.8.4 Visual production control system is in place to level, sequence and control
production regardless of volume or mix.( Level Loading)
19.8.5 Effectiveness of equipment preventative maintenance programs that involve
operator. Infrequency or non-existent Breakdowns and minor/major stoppages .(
Maintenance Programs)
Describe all efforts to identify and eliminate all forms of Overburdening people and
machines on the shop floor (Muri)
19.8.6 Visual controls in place to indicate abnormal situations in real time; action
response and escalation processes in place to quickly control abnormalities.
Employees can easily see through good visual management to identify exceptions.(
Visual Performance Feedback)
19.8.7 The value streams have been mapped and are understood from ideation to cash and
information is readily shared across departments. ( value streams)
19.8.8 5S has evolved to become part of the culture; it's used to reduce waste. 5S actions
focus more on making it easier to see interruptions to flow and identify
abnormalities, more so than housekeeping. There is evidence that these systems
are reviewed and improved upon regularly. 5S activities are owned and managed
by employees who see real benefits in using those practices.( 5S)
19.8.9 Understanding of approaches to reduce setup times .( Changeover/set-up times)
19.8.10Flow is more than just producing component parts in a single cell; ideally a
complete product is manufactured in the cell, ready to go to the customer. Work
area layouts promote flow of material and information and minimize transit and
other forms of waste.( Layout for Flow)

Etabezu Nemera Page 120

19.8.11Multi-skilled operators perform work based on standardized work practices that
ensure balanced work and an ability to meet customer demand. Associates
frequently rotate to keep skills fresh. (Cross-Training)

Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: eetabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

Etabezu Nemera Page 121

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle
“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.
The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes
the attached interview questions .Your response is very crucial to the success of the
survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
VII. Preliminary Information
Respondent Information

20 Your current position in the company__________________

21 Years of work experience in the company________________

22 Qualification level (highest) _________________________________

23 Gender________________

VIII. The criteria in lean cultures

24 The lean cultures associated Purchasing

24.7 P
urchasing and Distribution
5.1.1 Is your company orders raw material in required quantity? Please explain
5.1.2 Is your Company strictly evaluates supplier performance? Please explain
5.1.3 Does your Company evaluate value stream mapping so as to reduce lead time?
Please explain
Supplier Collaboration (SCL)

Etabezu Nemera Page 122

24.7.1 Is your company and suppliers are working as a team to improve the productivity
of your company? Please explain
24.7.2 Is your company and suppliers share resources (e.g., database, IT network,
equipment)? Please explain
24.7.3 Is your company and suppliers share costs and mutual benefits from joint
improvement? Please explain
24.8 S
upplier Coordination (SOR)
24.8.1 Is your company and suppliers exchange important business information at
strategic level? Please explain
24.8.2 Are your company and suppliers coordinate and exchange information at
operational level? Please explain.
24.8.3 Is your company and suppliers urgently inform each other when contingencies
occur? Please explain.
24.8.4 Is your company and suppliers jointly resolve upfront problems or contingencies,
effectively? Please explain.
24.8.5 Is your company and suppliers jointly forecast customer demand as well as plan
production and sales? Please explain.

Etabezu Nemera Page 123

 Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: etabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle

“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.
The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes
the attached interview questions .Your response is very crucial to the success of the

Etabezu Nemera Page 124

survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
IX. Preliminary Information
Respondent Information

25 Your current position in the company__________________

26 Years of work experience in the company________________

27 Qualification level (highest) _________________________________

28 Gender________________

X. The criteria in lean cultures

29 The lean cultures associated Product Development Center
6.1 Describe processes to validate new product (or service) development and launch in
your company.
6.2 How do you foster an understanding of customer expectations within your total
workforce?
6.3 What processes do you have in place at the highest level to foster breakthrough
solutions vs. incremental improvement to meet and/or stay ahead of customer
expectations in your company?
6.4 What innovative processes and/or lessons learned methods are used to reduce cost
and increase value to the customer in your company?
6.6 What is your approach to benchmarking?
6.7 Does your company works a time study for new products & the next section
(production) works according to the time study? Please explain
6.8 Does your company listed the value added activities & non value added activity
analysis? Please explain
6.9 D
oes your company update the value stream mapping so that to minimize lead time?
Please explain

Etabezu Nemera Page 125

 6.10 D
oes Your Company work as a team so that to minimize lead time & wastage? Please
explain

Addis Ababa University

Addis Ababa Institute of Technology (AAiT)

Mechanical Engineering Department

Graduate Program in Industrial Engineering

Prepared by: Etabezu Nemera

Mobile: +251-9-11-481606 E-mail: eetabezn@gmail.com

Advisor: Dr. Ermias Tesfaye

Co-advisor: Mr. Ashenafi Adudga (PhD candidate, Industrial Engineering Department -

AAIT)

Phone: +251-1-11 23 24 14 E-mail: dean.smie@aait.edu.et

I am conducting research at Ethiopian leather footwear manufacturing companies, entitle

“Productivity Improvement of Anbessa shoe S.C through Lean Tools.” for the fulfillment
of a master’s degree in Industrial engineering from Addis Ababa University Institute of
technology, school of Mechanical and industrial Engineering.

Etabezu Nemera Page 126

The aim of the interview is, to identify factors that hinder the productivity of the case
company .I would like to appreciate and express my gratitude in assisting me in completes
the attached interview questions .Your response is very crucial to the success of the
survey. All information will be treated in the highest confidential way and the
respondent’s name will not be revealed.
For further information you can contact using the above-mentioned address. Thank you for
your committed cooperation, time and consideration!!!
XI. Preliminary Information
Respondent Information

30 Your current position in the company__________________

31 Years of work experience in the company________________

32 Qualification level (highest) _________________________________

33 Gender________________

XII. The criteria in lean cultures

34 The lean cultures associated with Human Resource

6.1 Employee Satisfaction

6.1.1 Does the company conduct formal employee satisfaction survey? Please explain

6.1.2 Does the company allocate & use/implement significant share of budget for training
& for capacity building? Please explain

6.1.3 Does the company address employees’ dissatisfaction? Please explain

6.1.4 Does the Company provide growth opportunities for employees with outstanding
performance? Please explain

6.1.4 Does the company provide benefit packages for its employees? Please explain

6.1.5 Does the company have an ergonomically designed work stations and comfortable
air conditioning system ? Please explain

Etabezu Nemera Page 127

6.1.6 Does the company have suitable arm chairs/tables/cabinet for the workers? Please
explain

6.1.7 Does the company have sufficient space for the movement of materials and
workers? Please explain

6.1.8 Does the company have Institution have emergency evacuation plan with
emergency exits

? Please explain

6.1. 9 Does the Institution supply & train how to use it appropriate personal protective
equipment? Please explain

6.1.10 Does the Institution have first aid and/or other health care services in work place &
train how to use it ? Please explain

6.1.11 Does the Institution have fire protection & control equipment facilities and training
how to use? Please explain

6.1.12 Availability of separate (women /male ) bathrooms, hand wash, locker rooms, etc
prevail for employee? Please explain

6.1.13 Does the Institution "Support for cross cutting issues, fund raising, sport festivals,
periodic get-together parties prevail? Please explain

6.1.14 Does Employees bring the opinion of the customers to the Institution? Please
explain

6.1.15 Does the Employees give constructive suggestions to the Institution? Please explain

6.1.16 Level of staff turnover in the Institution in the last 3 years

Etabezu Nemera Page 128