Abstract:
The basic goal of manufacturing industries is to maximize profitability in order be
competitive and stay in the market. This is mainly achieved by producing products at
low cost to maximize profits. However, low productivity has been the major problem
facing most manufacturing companies. Del Monte Kenya Limited (DMKL) has been
used as a case study in this research to represent manufacturing industries. Two major
sections that are affected by low productivity in DMKL processing plant are labelling
and Packing section. Productivity in these sections stand at an average of 50% of the
rated capacity hence there is need for productivity improvement. Low productivity is
attributed by many factors, which include low equipment performance, equipment
unavailability, ineffective resource utilization and production wastes. The effects of
low productivity includes increased production costs, decline in production thus
difficulties in meeting targetf. and customer demands. The problem at hand that needs
to be addressed is the low productivity at DMKL processing plant.
The purpose of this study was to explore the factors affecting productivity and
determining strategies to improve productivity in DMKL plant. This was achieved by
investigating the impact of various variables affecting productivity. The causal factors
behind low productivity were explored through root cause analysis techniques, 5
'Whys' and Ishikawa diagram (fishbone). Documentary review through context
analysis was done to determine various strategies. Decision tree analysis was used to
evaluate viable strategies in· order to come up with the most effective strategies for
improving productivity in DMKL plant.
From the study, it was found out that equipment availability, performance and
inventory have a significant relationship with productivity. The problem of low
productivity is caused by equipment unavailability, poor performance and excess
inventory. The causal factors for equipment unavailability and poor performance were
identified as breakdowns, power failure, stoppages and equipment setup. The root
causes of equipment unavailability and poor performance were identified to be
equipment breakdowns and power failures. Inventory was also found to be the
greatest hindrance to productivity, the causal factors for excess inventory was
identified as low sales, high product price, and high production cost. The root cause of
excess inventory which directly affects productivity was identified as high production
cost.
Equipment availability, performance and inventory significantly affect productivity in
DMKL plant. It is evident that improving equipment performance, availability and
reducing inventory to an economical level in Del Monte Kenya plant improves
productivity significantly. Total Productive maintenance (TPM) and Lean
manufacturing system were identified as the most effective strategies to solve the
problem of low productivity in DMKL plant. By applying and implementing these
strategies, equipment breakdowns and production cost are reduced which significantly
improves productivity. Similarly, investing in a cost effective green energy power
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.