The Effect of Manufacturing Wastes on Operational Performances of Bottled Water Manufacturing Industries: The Case of Asku PLC

Abstract

The study is aimed at investigating the effect of Manufacturing wastes on the operational performance of a bottled water industries in Ethiopia taking the case of Asku plc. To validate data through cross verifications, a triangulated measurement systems were employed including survey questionnaire, semi structured interview, observation and archival data collection. Both qualitative and quantitative methods of data collection were used. And also, reviewing documents and Interviews methods were applied to collect data. Out of 110 questionnaires distributed from employee of Asku plc using purposive sampling technique a total of 88 were returned. The finding of the study revealed that the all eight lean manufacturing wastes, were present in various forms within the company under examination. It is imperative for the company to take action and address these issues to remain competitive in today's market. The correlation analysis conducted has revealed a strong relationship between manufacturing waste and the operational performance of the company. The results of the regression analysis indicate that defects, overproduction, transportation, and excess inventory have a significant impact on at least one of the operational performance measures. It is clear that the manufacturing process and the management of waste have a direct effect on the overall performance of the company. By identifying and addressing the areas of waste, such as defects and overproduction, the company can improve its operational performance and ultimately increase its profitability. In conclusion, the correlation and regression analyses conducted have provided valuable insights on the effect of manufacturing waste on operational performance. Furthermore, the analysis of secondary data obtained from Asku plc Archives reveals a concerning trend of high material rejection rates within the company, currently standing at 9.3%. This high rate of rejection is indicative of a significant amount of manufacturing waste, resulting from defects in the production process. Upon further examination of the data, it becomes clear that the company is experiencing significant downtime due to a variety of factors with 80% of this downtime being attributed to blower machine breakdowns. The company's performance in the most recent budget year was recorded as 41.9%, 37.3%, and 34.6% on the three production lines. These figures highlight the significant impact that waiting due to material, power, and machine availability has on the company's operational performance and overall efficiency. In order to address these issues and improve operational performance the researcher has suggested both short term and long-term sixes that would dramatically lower the eight manufacturing wastes.