Productivity Improvement Of PP Bag Production Company

The main objective of this study is to explore a new layout method for improvement on the total productivity of a PP bag producing company in Ethiopia.This study is very important and actual,because the improvement of productivity is the primary goal of all production companies.Techniques and methods such as facility layout,work study,time study and method study are applied for the improvement of the productivity and a deep investigation of the current methods was done to realize and identify the most obstacles of the currently employed method of layout.Facility layout is a systematic and functional arrangement of different departments,machines,equipment and services in a manufacturing industry.It is essential to have a welldeveloped plant layout for all the available resources in an optimum manner and get the maximum out of the capacity of the facilities.The efficiency of production depends on how well the various machines,service production facilities and employee?s amenities are located in a plant.Productivity of the current and proposed plant layout are calculated and compared.Based on the discussions results are obtained,after improvements have been made,the total distance between workshops is minimized from 422 meters to 175 meters.The total carrying cost was 32,680,320 ETB in the existing method and it is reduced to 10,727,776 ETB in the improved method.In the AS-IS system the total processing time was 5 hours,after improvement it is reduced to 4 hours.Finally the total productivity of the company is estimated to show an improvement of 5%,from 86% to 91%.