PRODUCTIVITY IMPROVEMENT THROUGH OPTIMUM UTILIZATION OF RESOURCES: A CASE STUDY OF DERBA CEMENT

Abstract

This study is conducted by aiming to sightsee a way higher productivity can be achieved through optimum resource utilization in cement manufacturing industries. To scrutinize the influence of optimum resource utilization in improving productivity Derba cement is taken as a case. Intended for computing partial productivity labor, machine, energy, materials and capital are selected. The result of partial productivity discloses a decline in labor, energy, and machine productivity in 2019, 2020 and 2021. Material productivity shows an increase while capital productivity lucks consistence increment in those years. In 2019 the total factor productivity in Derba cement used to be 3.87, 3.58, in 2020 and 3.39, in 2021. Between the year 2019 and 2020 productivity is declined by 7.5%. The rate amongst a year 2020 and 2021 confirms another decline in productivity by 5.3%. This study further looks into the current status of resource utilization in the company. For this reason a work sampling study of a 20 days was conducted starting from March 3, 2022 to March 23, 2022. The result of the work sampling study designates that Derba cement utilization rate is 43.5%. This result is a way below the utilization rate uttered by cement research business which is 60% to 70%. Loses during mechanical repair, electrical repair, lunch break or shift changes are the major contributors. The survey conducted to identify the factors that influence optimization of resource utilization discloses that. Luck of top management commitment, little awareness about optimization, inadequate maintenance, unsatisfactory teamwork, insignificant employee engagement, inattentive incentive scheme and poor exploitation of capital resources are the major factors that influences the utilization of resources for planned activities. Energy and material resources are identified as vital resources that contributes a larger stake in cement production cost. Improvement in energy resources can be allocated separately since it have little causal relation with other inputs. Material resources optimization could be achieved if and inly if the utilization of machine and labor resources are optimized. This study further recommends centering on the improvement of all influential factors identified. Meant for optimized utilization of resources for planned activities thus ultimately results higher productivity. An introduction of modern problem solving technique is also strongly recommended.