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Productivity Improvement of SME Garment Manufacturing Industry: Case Study

Received: 24 November 2021     Accepted: 31 December 2021     Published: 12 January 2022
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Abstract

Enhancing the productivity of the garment manufacturing SMEs is mandatory in order to make the garment manufacturing SMEs competitive. Unfortunately; it still has a domain of low productivity. This study is aimed to identify the factors that influence productivity in correspond to increase the productivity of garment manufacturing SMEs. The general objective of this research is to develop a productivity improvement method that supports garment manufacturing small and medium enterprises (SMEs) to enhance their productivity by identifying the possible productivity factors and selecting the intervention areas. To achieve this objective, a literature survey has been conducted to get empirical knowledge. The existing productivity measurement and improvement practices, and productivity factors of the garment SMEs have been assessed. Primary and secondary data were collected from garment manufacturing SMEs by using a well-structured questionnaire, interviews and personal observation at the manufacturing site. From the thesis working capital, business network, sourcing, supply chain responsiveness, supply of raw material, wage/minimum wage, working condition, product quality, technology, health and safety, production efficiency, motivation, business regulation and restriction are productivity factors identified that affect garment manufacturing SMEs productivity. Since, all the productivity factors identified do not have equal impact on productivity of the garment manufacturing SMEs. In addition, the resources are limited to solve all the problems associated with productivity factor. Therefore, deciding the intervention areas which are potential for productivity improvement is very important. The intervention areas identified are related human, capital, material and process. This requires organized and sustainable productivity improvement method to solve the problems associated with productivity. Therefore, a PIM based on this requirement has been developed. This research concludes by proposing a conceptual frame work for productivity improvement of the garment SMEs along with the implementation steps for the frame work.

Published in International Journal of Industrial and Manufacturing Systems Engineering (Volume 7, Issue 1)
DOI 10.11648/j.ijimse.20220701.11
Page(s) 1-8
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

SMEs, Garment, Productivity, Productivity Improvement Method (PIM)

References
[1] Ethiopian Economic Association, (2015), Small and Micro Enterprises (SMEs) Development in Ethiopia: Policies, Performances, Constraints and Prospects. EEA Research Brief, Issue No. 5.
[2] Md. Qamruzzaman (2015), Productivity and Performance Evaluation of SME Sector in Bangladesh: Evidence from the Historical Data.
[3] Heizer, J., and Render, B, (2014), Operations Management: Sustainability and Supply Chain Management, Pearson: England.
[4] Werotew Bezabih, (2010), “Entrepreneurship: An Engine for Sustainable Growth, Development, Prosperity and Good Governance, "Genius Training and Consultancy Service, Addis Ababa, Ethiopia.
[5] Wiyaratn, W. &Watanaa, A., (2010), Improvement plant layout using systematic layout planning (SLP) for increased productivity, World Academy of Science, Engineering and technology.
[6] Fouad, M. A. A, (2013), Factors affecting the performance of Small and Medium Enterprise (SMEs) in the manufacturing sector of Cairo, Egypt: International Journal of business and management studies, 5 (2): 1309-8047.
[7] Simo, (2015, Performance Measurement of Manufacturing industries in Ethiopia- an Analytical Study, Journal of Poverty, Investment and Development Vol. 7.
[8] Saha, S. M., (2015), Impact of Working Environment on Less Productivity in RMG Industries: A Study on Bangladesh RMG Sector. Global Journal of Management and Business Research, 15 (2).
[9] Shafiqul, I., (2014), Informal Labor Incentives and Firm Performance: A Case Study of RMG Industry in Bangladesh. International Business and Management, 8 (2), 19-27.
[10] Ferede, T., Kebede, K. and Tarfasa, S., (2015), Economic growth and employment patterns, dominant sector, and firm profiles in Ethiopia: Opportunities, challenges and Prospects, R&D.
[11] Daniel Kitaw and Amare Matebu, (2017), competitiveness for Ethiopian textile and garment industries: a way forward: Department of Mechanical Engineering (Industrial Engineering Stream) Addis Ababa University, Ethiopia.
[12] K. Phusavat, (2013), Productivity management in an organization: measurement and analysis, 1st ed., Bangkok; Celje; Lublin: To Know Press, pp. 23-31.
[13] Islam, M. A., Bagum, M. N., & Rashed, C. A. A., (2012), Operational Disturbances and Their Impact on the Manufacturing Business-An Empirical Study in the RMG Sector of Bangladesh. International Journal of Research in Management &Technology, 2, 184-191.
[14] Sorri, R.,(2010), Performance measurement and improvement of Ethiopian garment industries [Master’s thesis]. Addis Ababa: Faculty of Technology, Addis Ababa University.
[15] OECD (2017c), Enhancing Productivity in SMEs, OECD Working Party on SMEs and Entrepreneurship, Paris, October 201.
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  • APA Style

    Henok Tamirat Ltebo. (2022). Productivity Improvement of SME Garment Manufacturing Industry: Case Study. International Journal of Industrial and Manufacturing Systems Engineering, 7(1), 1-8. https://doi.org/10.11648/j.ijimse.20220701.11

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    ACS Style

    Henok Tamirat Ltebo. Productivity Improvement of SME Garment Manufacturing Industry: Case Study. Int. J. Ind. Manuf. Syst. Eng. 2022, 7(1), 1-8. doi: 10.11648/j.ijimse.20220701.11

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    AMA Style

    Henok Tamirat Ltebo. Productivity Improvement of SME Garment Manufacturing Industry: Case Study. Int J Ind Manuf Syst Eng. 2022;7(1):1-8. doi: 10.11648/j.ijimse.20220701.11

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  • @article{10.11648/j.ijimse.20220701.11,
      author = {Henok Tamirat Ltebo},
      title = {Productivity Improvement of SME Garment Manufacturing Industry: Case Study},
      journal = {International Journal of Industrial and Manufacturing Systems Engineering},
      volume = {7},
      number = {1},
      pages = {1-8},
      doi = {10.11648/j.ijimse.20220701.11},
      url = {https://doi.org/10.11648/j.ijimse.20220701.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijimse.20220701.11},
      abstract = {Enhancing the productivity of the garment manufacturing SMEs is mandatory in order to make the garment manufacturing SMEs competitive. Unfortunately; it still has a domain of low productivity. This study is aimed to identify the factors that influence productivity in correspond to increase the productivity of garment manufacturing SMEs. The general objective of this research is to develop a productivity improvement method that supports garment manufacturing small and medium enterprises (SMEs) to enhance their productivity by identifying the possible productivity factors and selecting the intervention areas. To achieve this objective, a literature survey has been conducted to get empirical knowledge. The existing productivity measurement and improvement practices, and productivity factors of the garment SMEs have been assessed. Primary and secondary data were collected from garment manufacturing SMEs by using a well-structured questionnaire, interviews and personal observation at the manufacturing site. From the thesis working capital, business network, sourcing, supply chain responsiveness, supply of raw material, wage/minimum wage, working condition, product quality, technology, health and safety, production efficiency, motivation, business regulation and restriction are productivity factors identified that affect garment manufacturing SMEs productivity. Since, all the productivity factors identified do not have equal impact on productivity of the garment manufacturing SMEs. In addition, the resources are limited to solve all the problems associated with productivity factor. Therefore, deciding the intervention areas which are potential for productivity improvement is very important. The intervention areas identified are related human, capital, material and process. This requires organized and sustainable productivity improvement method to solve the problems associated with productivity. Therefore, a PIM based on this requirement has been developed. This research concludes by proposing a conceptual frame work for productivity improvement of the garment SMEs along with the implementation steps for the frame work.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - Productivity Improvement of SME Garment Manufacturing Industry: Case Study
    AU  - Henok Tamirat Ltebo
    Y1  - 2022/01/12
    PY  - 2022
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    DO  - 10.11648/j.ijimse.20220701.11
    T2  - International Journal of Industrial and Manufacturing Systems Engineering
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    JO  - International Journal of Industrial and Manufacturing Systems Engineering
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    PB  - Science Publishing Group
    SN  - 2575-3142
    UR  - https://doi.org/10.11648/j.ijimse.20220701.11
    AB  - Enhancing the productivity of the garment manufacturing SMEs is mandatory in order to make the garment manufacturing SMEs competitive. Unfortunately; it still has a domain of low productivity. This study is aimed to identify the factors that influence productivity in correspond to increase the productivity of garment manufacturing SMEs. The general objective of this research is to develop a productivity improvement method that supports garment manufacturing small and medium enterprises (SMEs) to enhance their productivity by identifying the possible productivity factors and selecting the intervention areas. To achieve this objective, a literature survey has been conducted to get empirical knowledge. The existing productivity measurement and improvement practices, and productivity factors of the garment SMEs have been assessed. Primary and secondary data were collected from garment manufacturing SMEs by using a well-structured questionnaire, interviews and personal observation at the manufacturing site. From the thesis working capital, business network, sourcing, supply chain responsiveness, supply of raw material, wage/minimum wage, working condition, product quality, technology, health and safety, production efficiency, motivation, business regulation and restriction are productivity factors identified that affect garment manufacturing SMEs productivity. Since, all the productivity factors identified do not have equal impact on productivity of the garment manufacturing SMEs. In addition, the resources are limited to solve all the problems associated with productivity factor. Therefore, deciding the intervention areas which are potential for productivity improvement is very important. The intervention areas identified are related human, capital, material and process. This requires organized and sustainable productivity improvement method to solve the problems associated with productivity. Therefore, a PIM based on this requirement has been developed. This research concludes by proposing a conceptual frame work for productivity improvement of the garment SMEs along with the implementation steps for the frame work.
    VL  - 7
    IS  - 1
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Author Information
  • Chemical and Construction Inputs Industry Development Institute, Addis Ababa, Ethiopia

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