operation management

Topics: Leather, Tanning, Skin Pages: 10 (6697 words) Published: October 28, 2014
SCHOOL OF GRADUATE STUDIES (MBA) ALPHA UNIVERSITY COLLEGE (AUC) Ethio-Leather Industry PLC (ELICO) Awash Tannery For the Course Production /Operations Management (MBAd 632) (Educational Visit Report) Submitted To Tadesse Negash (PhD) Prepared by ABERAHAM MELSE MEKURIA ABERA MESFINE TELILA MERGIA BAYISSA TADESSE BIRU TENA H/MARIAM WOSSEN HAILU August 2013 Addis Ababa, Ethiopia ACKNOWLEDGEMENT We are strongly indebted to our instructor of production and operations management Dr. Tadesse Negash for his intimacy with us, continuous assessment, and lectures with skillful and meticulous comments we received throughout our course work. The group would also like to thank Alpha University College, and post graduate deans office for the voluntary assistance and facilitation of transport for our visit. Exceptional thanks goes to ELICO management and staff for their unreserved support in getting the information that we require, most specifically the skin section head foreman. Last but not least, to all those who contributed in one-way or another to the successful realization of this visit deserve deepest appreciation. EXECUTIVE SUMMARY Alpha University College is one of Educational Institutions that offer postgraduate programs in Business administration program in the country. This program includes Operations/ Productions management course that deal with all aspect of operations that begin from input, process, output and distributions with effect and efficient utilization of resources by setting competing strategies and operations priorities. The University College Instructor, Dr. Tadesse Negash, planned to make visit any factory that will enhance the understanding of students by observing practical applications of operations management beside class lecture. Having this in mind, the students selected Awash Tannery (Ethio- leather Industry Plc) and arranged transport, Letter, and other facilities with the Dean office and the factory on 27th August 2013 morning. Educational visiting began at 1000 am by dividing the whole MBA students into four groups for the report purpose, but for visiting it was divided in to two groups, skin part ( group I II), and Leather part (group III IV), while the process is the same. Unfortunately, group II, is the group that visited the skin process and the report also focus on skin part. This report tries to state how operation system of ELICO is going on, in the form of External supply chain with their input problems, internal supply chain which focus on material handling safety issues, quality control system, and cost control. Distribution system focuses on material handling and in-process. The report tries to see also interaction with operating environment of the factory with suppliers and market. The operation supply system- External supply chain ELICO purchases raw skin from local traders that collect from individuals. As it was explained by the skin production Forman, quantity offered is limited and quality of those skin affected by poor management of individuals in the value chain. The best skins are supplied is from Gojam while poorest skin is supplied from Wollo as it was explained, due to the fiber makeup of the skin. Highland skins are globally recognized as excellent raw materials particularly for the production of high quality leather for dresses, glove and garments and are in great demand on the world market (UNIDO, MoTI, 2004). Input quality is affected by flaying defect, putrefaction, ekek, scratches, brand mark, wart, cracking, fat spew, small pox, iron stain, knife cuts (holes), preservation defects, grown grain, etc. Internal Supply Chain ELICOs material handling, quality control, and cost control systems are viewed as internal supply chain by visitors. Skin raw material handling begins from temporary store that uses to accommodate all incoming skins. This temporary store is not standardized store with...
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