Productivity Improvement In Manufacturing Industries

Abstract

The basic goal of manufacturing industries is tomaximize profitability in order be competitive and stay in the market. This is mainly achievedby producing products at low cost to maximize profits. However,low productivity has been the major problem facing most manufacturing companies just like DMKL. Two major sections that are affected by low productivity in DMKL processing plant are Labeling and Parking section. Productivity in these sections stand at an average of 50% the rated capacity hence need for productivity improvement.This is attributed by many factors, which include low equipment performance, equipment unavailability, ineffective resource utilization and production wastes. This has largely contributed to increased production costs, decline in production thus difficulties in meeting targets and customer demands.The problem at hand that needs to be addressed is low productivity at DMKL processing plant. The purpose of this study was to explore the factors affecting productivity in manufacturing industries and determining strategies to improve productivity.This was achieved by investigating the impact of various variables affecting productivity,which include equipment performance, equipment availability and production wastes.Data that were used for analysis included Secondary data,primary data and documentary data. The data was subjected to a regression analysis to determine the influence of various factors on the productivity in the processing plant. The causal factors behind low productivity were explored through root cause analysis techniques like Pareto charts, 5 ‘Whys’ and Ishikawa diagram (fishbone). Decision tree analysis was used to determine beststrategies for productivity improvement which were evaluated before recommending an optimal strategy. It was found out that equipment availability and performance significantly affects productivity and identified equipment breakdown, power failure, bottlenecks and reduced speed as the root causes of equipment unavailability and poor performance. Similarly inventory was found as a major factor hindering productivity and its root cause identified as highproduction cost due to increased production waste. It was identified that by applying and implementing Total Productive Maintenance (TPM) and Lean manufacturing System, equipment breakdowns, bottlenecks and production cost are reduced which significantly improves productivity. Similarly, investing in a cost effective green energy power plant like Bio-mas plant would solve the problem of power failures.From this study, manufacturing industries can use the result to help identify the factors that affect productivity by using decision tree analysis to establish the best strategies to improve productivity.