Impact of Work Method & Line Balancing On The Produtivity of Steel Industry (Kidane Gemeda, August-2020)

FEDERAL TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING
INSTITUTE (FTVETI)
SCHOOL OF GRADUATE STUDIES
STUDY THE IMPACT OF WORK METHOD AND LINE BALANCING ON THE

PRODUCTIVITY OF STEEL INDUSTRY
(A CASE ON WALIA STEEL INDUSTRY PLC)
BY
KIDANE GEMEDA
AUGUST-2020
ADDIS ABABA, ETHIOPIA
A THESIS SUBMITED TO FEDERAL TECHNICAL AND VOCATIONAL

EDUCATION AND TRAINING INSTITUTE FACULTY OF MECHANICAL
TECHNOLOGY
(DEPARTMENT OF MANUFACTURING TECHNOLOGY)
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF

THE MSc. DEGREE IN MANUFACTURING TECHNOLOGY MANAGEMENT
BY
KIDANE GEMEDA
ADVISOR: DR. BELETE SIRAHBIZU (ASSISTANT PROFESSOR)
AUGUST-2020
ADDIS ABABA, ETHIOPIA
Declaration
I here declare that the work which is being presented in this thesis titled Study the
impact of work method and line balancing on the productivity of the steel industry
(A Case on Walia steel industry) is original work of my own, has not been presented for
a degree of any other university and that all sources of material used for the thesis have
been properly acknowledged.
_____________________ _________________
Kidane Gemeda Date
This is to certify that the above declaration made by the author is correct to the best of my
knowledge.
________________________ ________________
Dr. Belete Sirhabuzu (Assistance Professor) Date
FEDERAL TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING
INSTITUTE (FTVETI)
SCHOOL OF MECHANICAL TECHNOLOGY

BY
KIDANE GEMEDA
APPROVED BY EXAMINING BOARD
Name of advisor Signature Date

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Name of Co-Advisor Signature Date

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Name of examiner, internal Signature Date

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Name of examiner, external Signature Date

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Name of chairperson Signature Date

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Acknowledgement
First of all, I am much thankful to the God for success to accomplish this thesis. I would
like to give my sincere heartfelt thanks to my advisor Dr. Belete Sirhabuzu (Assistance
professor) for his support, and advice while doing this thesis.
I would like to extend my gratitude to all Walia steel industry workers or management,
production manager and supervisors for their time, efforts, voluntariness and cooperation
throughout the success of my thesis work by availing themselves for an interview,
questionnaire and valuable data or information. I would also like to express thanks to
MIDI (Metal Industry Development Institute) for their cooperation and assistance to get
valuable information.
Last but not least, I would like to thanks my family, friends and classmates who give me
moral and encouragement while doing my thesis.
FTVETI August-2020 ii
Abstract
In today‟s dynamic global market, metal and metal products industry plays a big role in
enhancing the economic development of both developing and developed countries.
The purpose of the study is to examine the impact of work method and line balancing on
the productivity of the case company, analyze areas of improvement and suggest potential
areas that help to meet the increased demand of the customer. The study was used
descriptive type of research method and applied using qualitative and quantitative
approach. To undertake this research, data source were taken from primary source (i.e.
questionaries‟ and interview) and from secondary source (line balance document report
view). After conducting reliability and validity test of data analysis were done thought
descriptive statistics in process of frequency, percentage, mean and standard deviations
and inferential statics using correlations, and multiple liner regressions using Cohen
daggles productions efficacy frontier model using stata software v.13 and flexible line
balancing Software v.3.0 in prospecting of ethical considerations.
Finding of the study identifying productivity was found knockout negatively by work
overload and work environment, balancing of line, balance delay and line efficiency
found negatively influential to the element for productivity enhancement of Walia steel
industry. In other hand, line efficacy was found negative process factors which lead times
run in bottlenecks, retarded the material flow and volumes, losses layout, cycle times
delay transport etc.
Finally, there is a negative impact related to objectives of work study, ergonomics-in
workplace and Smoothness index positively influential to productivity of Walia steel
industry. Therefore, managers should be devoted towards their profession of fixing
machine circulations interruptions and they should understand their social responsibilities
towards the work related environment and stress to be manage their industry effectively.
Keywords: Productivity, Impact, Work method, Line Balancing, Bottleneck
FTVETI August-2020 iii

Table of Contents
Declaration ........................................................................................................................... i
Acknowledgement ............................................................................................................... ii
Abstract .............................................................................................................................. iii
List of Figures .................................................................................................................... vii
List of Tables .................................................................................................................... viii
List of Acronyms & Abbreviations .................................................................................... ix
CHAPTER ONE .................................................................................................................. 1
INTRODUCTION ............................................................................................................... 1
1.1 Backgrounds of the Study .................................................................................... 1
1.1.1 Background of the Company ........................................................................ 4
1.2. Statement of the Problem ................................................................................... 5
1.3 Research Questions .............................................................................................. 5
1.4 Objectives of the Study ........................................................................................ 6
1.4.1 General Objectives ........................................................................................ 6
1.4.2 Specific Objectives ......................................................................................... 6
1.5. Significance of Study ........................................................................................... 6
1.6. Scope of the Study ............................................................................................... 7
1.7. Limitation of the Study ....................................................................................... 7
1.8. Definition of Key Concepts (Terms) ................................................................... 8
1.9. Organization of the Thesis .................................................................................. 8
CHAPTER TWO................................................................................................................. 9
LITERATURE REVIEW ................................................................................................... 9
2.1. Introductions ....................................................................................................... 9
2.1.1 Global Analysis of Steel Industry .................................................................. 9
2.1.2 The Global Steel Market Outlook ............................................................... 10
2.1.3 Profile of Steel Industries ............................................................................ 10
2.1.4 The Status of Steel Industries ...................................................................... 11
2.2 Theoretical Concept of Work Methods ............................................................. 12
2.2.1 Work Study .................................................................................................. 12
2.2.2 Method Study............................................................................................... 13
2.2.3 Ergonomics of Workplace ........................................................................... 14
2.2.4 Work Overload ............................................................................................ 15
2.2.5 Work Environment and Job satisfactions .................................................. 15
FTVETI August-2020 iv
2.3 Overview of Line Balancing............................................................................... 19
2.3.1 Line Balancing ............................................................................................. 20
2.3.2 Work on Line balancing .............................................................................. 21
2.3.3. Dimensions of Work Line Balancing ......................................................... 21
2.3.4 The Ease of Line Balancing ......................................................................... 22
2.3.5 Non-Value-Added Costs of Line Balancing ................................................ 22
2.3.6. Procedure of Assembly Line Balancing ..................................................... 25
2.3.7. Terminology Used in Assembly Line Balancing ........................................ 26
2.4 Productivity ........................................................................................................ 30
2.4.1 Productivity of a Manufacturing System .................................................... 30
2.4.2 Productivity in the Steel Making Industry ................................................. 31
2.4.3 Production Efficiency .................................................................................. 31
2.4.4. Factors Influencing Productivity ............................................................... 31
2.4.5. Factors Influencing Industry Productivity ................................................ 32
2.4.6. Manufacturing Sector On Economic Growth ........................................... 34
2.5 Literature Gaps (Conclusion) ............................................................................ 34
CHAPTER THREE .......................................................................................................... 35
RESEARCH DESIGN AND METHODOLOGY............................................................. 35
3.1. The Research Design ......................................................................................... 35
3.2. Research Approach ........................................................................................... 35
3.3.Target Populations Sampling and Sampling Techniques ................................. 36
3.3.1 Target Population ........................................................................................ 36
3.3.2. Sampling Size .............................................................................................. 36
3.3.3. Sampling Techniques.................................................................................. 37
3.4. Source of Data ................................................................................................... 37
3.4.1. Data Collection ........................................................................................... 38
3.5. Reliability of the Research Instrument ............................................................ 39
3.5.1. For Quantitative Data Gathering............................................................... 39
3.5.2. For Qualitative Data ................................................................................... 39
3.5.3. Validity of the Instrument .......................................................................... 40
3.6. Methods of Data Analysis ................................................................................. 40
3.6.1. Model Specification .................................................................................... 41
3.7 Tools Selection .................................................................................................... 42
3.8. Ethical Consideration ....................................................................................... 42
CHAPTER FOUR ............................................................................................................. 43
FTVETI August-2020 v
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ............................... 43
4.1. Introduction ...................................................................................................... 43
4.2. Socio-Demographic Characteristics of Respondents ....................................... 43
4.3. Work method adjustment by Walia steel industry during productions setup
time and method of operation ................................................................................. 46
4.3.1. Objectives of Work Study .......................................................................... 46
4.3.2. Method Study.............................................................................................. 47
4.3.3. Ergonomics in Workplace .......................................................................... 48
4.4. The Line Balancing Improvement of Walia Steel Industry ............................. 50
Work Stations ....................................................................................................... 51
4.4.1. Results Weighted with Line Balancing ...................................................... 52
4.4.2. Line Balancing Efficiency and Delay Comparison .................................... 55
4.4.3 Productivity Ratio of Walia Steel Industry ................................................ 56
4.5. The Linear Relationship of Variables between the Predictor ......................... 56
4.5.1. Relationship between Work Method and Predictors ................................ 57
4.5.2. Relationship between Line Balancing and Predictors ............................... 59
4.6. Test Result for Linear Regression Model Assumptions Predicted Determinates
Productivity of Steel Industry ................................................................................. 60
4.7 Discussions.......................................................................................................... 62
4.7.1. The influence of Working Method and Line Balancing on the Productivity
of Walia steel industry.......................................................................................... 62
CHAPTER FIVE ............................................................................................................... 67
SUMMARY, CONCLUSIONS AND RECOMMENDATION ........................................ 67
5.1. Summary of the Findings.................................................................................. 67
5.2. Conclusion ......................................................................................................... 69
5.3. Recommendations ............................................................................................. 71
5.4. Future work ....................................................................................................... 72
References .......................................................................................................................... 73
Appendix............................................................................................................................ 77
FTVETI August-2020 vi
List of Figures
Figure 1.1 Products of WSI, 2020 .................................................................................... 4

Figure 2.1 Work Study (Shantideo et al, 2018) .............................................................. 13
Figure 2.2 Factors constituting working environment (Prof. Dr. Abdul Ghafoor Awan,
2015) ........................................................................................................... 16
Figure 2.3 a conceptual model of working environment and job satisfaction (Abdu Raziq,
et al, 2014) ................................................................................................... 18
Figure 2.4 Assembly lines for single and multiple products (Naveen Kumar and
Dalgobind Mahto, 2013) .............................................................................. 26
Figure 4.1 Steel manufacturing process simulations using flexible balance Software v.3,
2020 ............................................................................................................. 50
Figure 4.2 Tubular tiles Sheeting ................................................................................... 54
Figure 4.3 LTZ Profile Production control Line, 2020 ................................................... 55
FTVETI August-2020 vii

List of Tables
Table 2.1Major Ethiopian metal industries products, production capacity and utilization11
Table 3.1 Sample Size ................................................................................................... 36
Table 3.2 Target respondents ......................................................................................... 37
Table 3.3 Survey Cronbach's Alpha Reliability result of the Variables ........................... 39
Table 4.1 Profile of respondents .................................................................................... 43
Table 4.2 the year‟s respondents spent in Walia Steel Industry (Service in years) .......... 44
Table 4.3 Descriptive Statics objectives of work study by Walia Steel Industry during
Productions setup time and method of operation ............................................ 46
Table 4.4 Descriptive Statics of Method study by Walia Steel Industry during productions
setup time and method of operation ............................................................... 47
Table 4.5 Descriptive Statics of Ergonomics in work place by Walia Steel Industry during
productions setup time and method of operation ............................................ 48
Table 4.6 Descriptive Statics of work overload and work environment by Walia Steel
Industry during productions setup time and method of operation ................... 49
Table 4.7 simulated best fit configurations of man-machine-product in steel coating line
(with dynamic conveyer speed) ..................................................................... 52
Table 4.8 Simulated best smoothness of man-machine-product in steel profiling and
coating line (fixed conveyor speed: 1.3m/minute) ........................................... 54
Table 4.9 Performance Comparisons ............................................................................. 55
Table 4.10 Productivity Ratio of Walia Steel Industry PLC 2006-2020 G.C .................. 56
Table 4.11 Correlation matrix between employee Demography work method and
predictors ...................................................................................................... 57
Table 4.12 Correlation matrix between line balancing and its predictors (obs) ............... 59
Table 4.13 Test result for linear Regression Model Assumptions predicted Determinates
of productivity of steel industry ..................................................................... 60
FTVETI August-2020 viii

List of Acronyms & Abbreviations
ALB– Assembly Line Balancing

ALBP- Assembly Line Balancing Problem
CEO – Chief Executive Officer
CIS - Belarus, Kazakhstan, Russia, Ukraine
CSA -Central Statistical Agency
CT – Cycle Time
DSTI/SU/SC -Directorate for Science, Technology and Innovation Steel Committee
ECA- Ethiopian Customs Authority
GDP – Gross Domestic Product
GNP – Gross National Products
GTP – Growth and Transformation Plan
IoTs -Institute of Technologies
MIDI – Metal Industry Development Institute
MOI – Ministry Of Industry
OECD- Organization for Economic Co-operation and Development
PLC –Private Limited Company
R & D – Research and Development
SSPI- Sustainable Steel Policy and Indicators
SSY- Steel Statistical Yearbook
UNIDO- United Nations Industrial Development Organization
WS - Work Stations
WSF -World Steel Figure
WSI – Walia Steel Industry
FTVETI August-2020 ix
CHAPTER ONE
INTRODUCTION
1.1 Backgrounds of the Study
Due to the continuing needs of new industries around the world the planning and
regulation of the production process has always been a concern to avoid accidental
releases (spills) that can cause public and environmental damage. The design of the plant
layout has become the basis of current industrial plants that can affect the efficiency of
work. It is necessary to plant and position employees, materials, machinery, equipment,
and other manufacturing support and facilities to create the most effective plant layout.
However, none of the methodologies can be repeatedly applied to all plant layouts so they
turn into the most efficient plant layout. In this sense, making plant layouts is more an art
than a science (Vinod and Singh, 2013).
However, working method and line balancing problems are found in various industries. It
is categorized into various versions depending on the product timing information in each
station and the number of products. Pathway balancing is a powerful managerial tool used
to improve productivity of the production system (Satheesh kumarȧ et, al., 2014). Hence,
work method and line balancing consists of assigning tasks to each work station, while
optimizing one or more destinations without breaking the boundaries with human power
performance utilizations in order to achieve the same level of production at each station to
be able to productivity of manufacturing industry.
According to Santosh and Suresh (2013), work method usually comprehended by using
Systematic layout planning (SLP) which is used to improve spatial distances between
facilities (machines and work stations) and also improve the flow of material at a plant as
human instructions is expected material handling costs are reduced significantly in order
to workers move faster and overall productivity increases.
In addition, the systematic layout planning method (SLP) has also been done in a steel
company in most manufacturing industries to improve productivity and better layout
planning. The new factory layout is designed and then compared to the current layout.
The work method shows that the new plant layout significantly decreases the employment
flow with material speed with distance from the preservation process to the packing
which is carried out in accordance with the systematic steps during productions layout
performance with worker capability and safety at all (Prasad, et al, 2013)
FTVETI August-2020 1
studying a common field using working method and line balancing is in an industry
layout planning is applied to systematic layout planning (SLP) which shows step-by-step
planting of the input data and evaluation activities of plant layout. This work method
provides a new plant layout that improves the process of flowing through the plants, and
helps increase the space in the manufacturing systems that produce many product and
keep worker safety in highly unstable environments are increasingly challenged to meet
consistently high operating levels, efficiency and flexibility (Satheesh kumarȧ et, al.,
2014).The benefits of a manufacturing system depend on the main factors of designing
the engine cell and its parts, setup time and method of operation. The manufacturing
system becomes a failure when both of these factors are not used correctly. Various
techniques developed for assembly line balance and work method have proven useful in
various assembly industries such as manufacturing, automobiles, consumer electronics,
and others. In traditional straight-line, a limited set of tasks for the assembly line are
assigned including the associated processing time and the prior relation that determines
the permissible sequence of tasks (Satheesh kumarȧ et,al., 2014).
The goal is to assign a series of tasks to successive workstations to meet specific
production requirements, in which the number of workstations required is minimized and
the use of tools, materials, and worker‟s ergonomics considered to meet the quality
requirements if all the requirements specified in the criteria and specifications are met
(Hsiu-Hsuh, et al, 2011).
Similarly, good work methods are crucial in implementing steel manufacturing efficacy
because the right implementation method can provide project quality from a financial or
time perspective. One steel manufacturing technology that offers several advantages for
easy implementation and economics is precast technology is not only a matter of cost
reduction, but also contributes greatly to the efficiency of the productivity process
(Douglas et, al., 2016).
However, the optimization of productivity facility layout has always been neglected in
recent decades. The layout is the procedure of setting up the plant facilities to support the
smoothness of the production process utilizing the existing area to place the engine and
supporting production facilities that impact on the smooth movement of material is set
and machine department (Anucha et, al., 2011). In addition to this arrangement, the
selection of one type of facility layout is also influenced by production volume and
product variation. The factory layout involves setting and selecting machines, material
handling devices, material handling lines, resulting in reduced time and costs to find
spatially related units such as workers and machines safety and speeding productivity as
planned to metal and metal products industry (Santosh and Suresh, 2013).
When we come to the metal and metal products industry, it plays a big role in enhancing
the economic development of both developing and developed countries. Competitive
technology, management and institutional set up are, however, required to make the
products competent internationally (Hsiu-Hsuh, et al, 2011).
In other hand, Douglas et, al., (2016) is in fact determined by the productivity with which
a nation uses its human, capital, and natural resources. Productivity in turn depends upon
both on the value of products and services as well as the efficiency with which they are
produced. The value of metal and metal products industry is based on the principle that it
can create backward and forward linkage, enhance foreign exchange earnings by
promoting standard quality export products, create jobs and increase income, and give
opportunity to technology transfer.
Over the years, the success of Ethiopian basic metals industries to achieve these
objectives was limited. The low performance of the basic metals engineering industries
demonstrates the need for further examination into the factors that determine their
competitiveness (MoFEC, et al, 2019). This kindness of problem mostly need to evaluate
current production work method and line performances, to determine the current
operator‟s utilization, reduce material movement, to minimize non value adding
activities/tasks and to generate reasonable profit .
The aim of the study is to improve the impact of work method and line balancing on the
productivity on Walia steel industry PLC. Based on data collected through observations,
interviews and study of production documents and reports, identified as an impact that
affecting the efficiency of the work method and production line.
1.1.1 Background of the Company
Walia steel industry is a private limited company (WSI P.L.C) established in 2006 G.C at
Oromia regional state, Alemgena town 20 km away from Addis Ababa. It was established
with a total capital of USD 20 million with the objectives of manufacturing and marketing
of steel products .The industry is built on total area of 35,983.25 square meters.
WSI is established with the view of alleviating the acute shortage of construction
materials in Ethiopia and to support the national endeavor of achieving the economic
development by contributing in the harnessing of social problems through creation of job
opportunities for citizens. The company is led by a president, a general manager, who is
responsible for managing the overall operation. The company and four department
managers who are responsible for discharging duties and responsibilities entrusted to
respective functional units. Currently it has got 153 permanent employees .Walia steel
industry P.L.C began its operation in the production of expanded its operation by
investing in steel pipe making technologies and producing rectangular square and circular
hollow sections produced in different sizes those products includes as follows:- LTZ
Profile, Chekerd sheet metal, Square hollow sections (SHS),Sheet metal, Rectangular
hollow section (RHS),Oval pipe , D-Pipe , Circular Hollow section(CHS) in thickness of
0.5mm-2mm in ability to produce installed capacity of 201,500ton and working capacity
of 38600 tons .
The aim of the study is to examine the impact of work method and line balancing of the
productivity of the company. The problems observed in the existing method include
excessive material movement, backtracking, non-value adding activities, job satisfaction
and safety consideration. In case of above mentioned problems all in all not fully improve
shortage of steel products of construction material profit, local markets and mega
projects. Therefore if those impacts are improved, work conditions will be better and
productivity of the company will be increased also shortage of supply is improved based
on demand satisfaction or interest. Below picture shows some products of WSI.
Workshop Raw Material Machine Lines Figure 1.1 Products of WSI, 2020
1.2. Statement of the Problem
As per my observation as well as assessment from various reports and published and
unpublished articles, most of Ethiopian metal manufacturing industries are not efficient in
terms of product quality and productivity. As per Addis chamber journal of trade and
business reported in May, 2015, one of the reasons behind the inefficiency local metal
industries is using poor work method and line balancing. For this study, Walia steel
manufacturing industry particularly chosen since the researcher practically observes the
following deficiencies: An excessive material movement; lower occupational job
performance; backtracking and non-value adding activities. Therefore, the main aim of
this study is to investigate the impact of work method and line balancing on the
productivity improvement of Walia steel industry and to suggest a better work method
and line balancing.
1.3 Research Questions
Hence, the basic research questions derived for this thesis are:
1. What is the level of current work method adjustment by Walia steel industry
during productions setup time and method of operation?
2. What is the current practice of line balancing improvement in Walia steel
industry?
3. What is the influence of working method and line balancing on the productivity
of Walia steel industry?
4. What is the magnitude of working method and line balancing and its influence
towards the productivity of Walia steel industry?
1.4 Objectives of the Study
1.4.1 General Objectives
The main objective of this research is to examine the impact of work method and line
balancing on the productivity of Walia steel industry and recommend a better work
method and line balancing system.
1.4.2 Specific Objectives
The specific objectives of the study are: -

 To indicate the current work method adjustment by Walia steel industry
during productions setup time and method of operation;
 To evaluate the current practice of line balancing improvement in Walia steel
industry.
 To examine the influence of working method and line balancing on the
productivity of Walia steel industry.
 To examine the magnitude of working method and line balancing distressing
the productivity of Walia steel industry.
 To recommend a better work method and line balancing system.
1.5. Significance of Study
This study will definitely be most beneficial to the Walia steel industry. It will help
researcher to be more understand about the steel industry impacts of work method and
line balancing on the productivity a case company and a great contribution in economic
growth through minimize shortage of construction materials and capital project.
 To determine the current operator‟s utilization and enabling to reduce material
movement.
 To minimize non value adding activities/tasks.
 To generate reasonable profit.
 To develop the flow chart for the existing and the proposed method.
 To vouch for professionally employee performance capacity development.
1.6. Scope of the Study
The study geographically delimited to Addis Ababa studding on evaluating and examine
of the impact of work method and line balancing on the productivity of Walia steel
industry.
The study prefers case industry due to the bulky producers of different production types
such as LTZ profile, Chekerd sheet metal, Square hollow sections (SHS), Sheet metal,
Rectangular hollow section (RHS), Oval Pipe, D-Pipe, and Circular hollow section (CHS)
for both local and capital projects.
Therefore, the aim of this research is to improve the productivity efficiency of Walia
steel industry by showing the gap of designing and implementing current work method
and line balancing and how it affecting the productivity.
1.7. Limitation of the Study
The researcher faces the following constraint and challenges:

There are several limitations of the study. The issue of defects might not be sound for the
stakeholders and officials thus they might be reserved to cooperate with this study due to
command-post of COVID -19.
The other difficulties of this research could be the key stakeholders and officer were not
volunteer to give adequate primary, especially secondary audited and ISO data, for
instance documents and records which are relevant regarding to Walia steel product
manufacturing industries data because of data nature. These problems stem from secretive
and political behavior of data such as, information like as rate (extent) of delaying
productivity, work method ergonomics and line balance quality aspects of information.
Somehow, researcher try to get that information‟s by any means of ethical and tactical
information‟s gathering method over and over enabling it information accessible for
industries own seek of productions and researcher target study successes.
1.8. Definition of Key Concepts (Terms)
Impact:-The action of one object coming forcibly into contact with one another a marked
effect or influence, the act of one object hitting another (Oxford dictionary) impacts often
used to refer to higher level effects of productivity that occur in the medium or long term,
and can be intended or unintended positive or negative influences on productivity.
Work Study: - Work study is a generic term for the techniques of method study and
work measurement. These techniques are used in the examination of human work in all
its contexts. (Prasad et, al., 2013)
Method study is the technique of systematic recording and critical examination of

existing and proposed ways of doing work and developing an easier and economical
method (Rachmad, 2014).
Line Balancing: Line balancing in order to obtain an optimum or most efficient balance
of the capacities and flows of the production or assembly processes (Wiyaratn and
Watanapa, 2010)
Bottleneck: Delay in transmission that slow down the production rate. This can be
overcome by balancing the line (Naveen and Dalgobind, 2013).
Employee performance is defined as the outcome or contribution of employees to make

them attain goals (Herbert, et al, 2000). Afshan et al. (2012) define performance as the
achievement of specific tasks measured against predetermined or identified standards of
accuracy, completeness, cost and speed.
1.9. Organization of the Thesis
The study is organized in five sections: Chapter one has background of the study,
statement of the problems, the research questions intended to be addressed by the study,
objectives, significance, scope, and limitations of the study, and contextual definition of
key terms used in the study are presented. Chapter two deals with the review of the
related literature, chapter three explained research methodology, Chapter four will
presents the outcome of the research findings. Chapter five will be on the research
summary, conclusion and recommendations of the findings.
CHAPTER TWO
LITERATURE REVIEW
2.1. Introductions
Quality product and to be capable to cope with customers' demands are important aspects
that should be taken into account especially for small and medium industry. Management
and technical committee of an organization usually take part into planning, controlling
and measuring parameters related to the performance of the sectors. Management systems
are also contributing in order to planning, controlling and measuring parameters related to
the performance of the sectors. Companies mostly realize that the performance depends
on how well the production line in term of output. Process layout, product layout and
fixed-position layout are basics types of layout. Product layout is defined as flow-shop
layout where number of machine and work processes are arranged so that the products
will pass through several workstations (Prasad, et al, 2013). Due to high demand the
resources was rearranged from process layout to product layout. This required a sequence
steps to make products. Industries often called as assembly lines. Assembly lines are
general described as progressive assembly linked by some type of material handling.
Quality product and capability to cope with customer demand are important aspects that
should be taken into account especially for small and medium industry. Manufacturing
industries need generally appraise the performance how well the production line performs
in term of output and working climate impacts on performance of productivity (Anucha
et, al., 2011.
2.1.1 Global Analysis of Steel Industry
Globally, steel is the backbone of manufacturing and is a strategic industry essential for
socioeconomic growth and stability. Over, the global steel production and consumption
have continued to grow at a rapid pace, with emerging economies coming to the fore, in
recent years. The average growth of the steel production was 1.6% from 1970-1975 and
6.2% from 2000-2005 but it dropped to 3.8% from 2010-2014(WSF, 2015). The
production process for manufacturing steel is energy –intensive and requires a large
amount of natural resources. Energy constitutes a significant portion of the cost of steel
production, up to 40% in some countries. Thus, increasing energy efficiency is the most
cost effective way to improve the environmental performance of this industry.
To address these issues, there has been significant investment in new products, plants
technologies and operating practices. The result has been a dramatic improvement in the
performance of steel products, and a related reduction in the consumption of energy and
raw materials in their manufacture (FDRE, PSRC, 2017)
2.1.2 The Global Steel Market Outlook
According to the October 2019 Short Range Outlook (SRO) of the World Steel
Association (world steel), world finished steel demand is projected to increase by 1.7% to
reach 1 805mmt in 2020 (world steel, 2019). In that forecast, global steel demand was
expected to continue growing, albeit at a moderating pace, in line with the slowing global
economy. Moreover, World steel highlighted uncertainty, trade tensions and geopolitical
issues as factors that are weighing on investment and trade activity (world steel, 2019).
Since that forecast was made, recent developments, such as weaker prospects for world
economic growth and the recent coronavirus disease (COVID-19) outbreak, may dampen
the outlook. (Steel market development, 2020)
2.1.3 Profile of Steel Industries
The purpose of this section is to make an overview of the characteristics of steel

industries of Ethiopia; a brief summary of steel industries of the country has been made.
The Steel industry is found at a very low stage of development, but it is undergoing a
substantial growth. The range of products manufacturing in this sector includes
galvanizing of sheets, pipes reinforcement bars, nails, window and door frames, trusses,
hand tools, implements, pumps, and various metal fabrications; however there is a huge
gap as compared to the demand of the country for steel products. In addition to the above
products, there also exist a couple of plants assembling automobiles, trucks and tractors.
During the five years, the demand for steel products in Ethiopia has increased
significantly due to the boom in mega projects as well as infrastructure. Currently, the
industries use mainly imported raw materials such as billets, blooms, sheet metals, coiled
wire rods, galvanized coils, iron scrap and chemicals and locally available scrap metals
(CSA, 2005 E.C). The industries also use products imported from different countries such
as Turkey, China, India and Ukraine.
2.1.4 The Status of Steel Industries
In 2006 E.C, there were 2758 medium and large scale manufacturing industries in
Ethiopia out of which 241 were steel industries. This means that the steel industries
account only for 8.7% of the manufacturing sector (CSA, 2007 E.C).
Table: 2.1 Major Ethiopian metal industries products, production capacity and utilization
Installed Working Capacity

No Company Name Capacity(ton capacity( Tons) utilization (%)
1 Ethiopian crown & can factory 6607.2
s) 3833 55.5
2 Adama Steel 26.8 25.8 90.0
3 Akaki basic metal Products 40,000 21,000 50

4 AMCE Automotive Mang. 120 80 66.6
5 Amio engineering 200 47 23.5
6 Dan lift Technology 782.5 216.03 27.6
7 Ethiopian spring M.b profile 720 434.4 60.34
8 Walia Steel Industry 201,500 38,600 19.1
9 East steel 300,000 180,000 60
10 Yesu manufacturing 200,000 140,101 70
Source; (Tadiyos Derbe, 2018)

Table 2.1 shows the products that the metal industries are products and production
capacity trend, while the production capacity utilization (installed and attainable capacity
in 2016) shows a remarkable difference among the industries themselves. The table
shows the maximum production capacity utilization among the metal industries (90%)
and the minimum (19.1%). As it can been seen from the table, steel manufacturing plants
have relatively higher capacity utilization rate whereas engineering and basic metal
industries has the lowest capacity utilization rate.
Generally, the major problems associated with this low capacity utilization are;
 Power and electric energy supply, fluctuation and interruption
 The machineries and technologies that the industries have
 Human power skill and particularly technical manpower unavailability and so on.
2.2 Theoretical Concept of Work Methods
Working methods have introduced many physical and psychosocial risks which create
Pressure and may lead to workplace stress and mental health problems for workers.
However, several researchers have emphasized the increased interest in psychosocial
risks since new working methods have been introduced. According to HSE (2014),
psychosocial risk factors are things that may affect workers' psychological response to
their work and workplace conditions (including working relationships with supervisors
and colleagues). Some examples include high workloads, tight deadlines, and lack of
control of the work and working methods. Mcguire and Mclaren (2007) found that a
working environment has a strong impact on employee‟s well-being and develops
interaction, collaboration and innovation and increase job satisfaction. Roelofsen (2007)
found that indoor environment has great impact on job performance and level of
performance can be increased from 5 to 15 percent because of improving working
conditions.
2.2.1 Work Study
Work study employs both method study and work measurement to comprehend the
overall human work potential in terms of time spent on completing a task. These
procedures help to identify ways to make the task simpler and easy, which consequently
increase productivity and efficiency (Prasad et, al., 2013). Work study is field helps to
improve job performance, optimum usage of plant and machinery, standardization of
work methods, etc. Therefore, the following are the objectives of work study:
 Scientific and controlled analysis of available methods for executing a task.
 Measuring performance of the qualified workers, both mentally and
physically, which help in establishing standards for performance measurement
 Optimum utilization of workers, plant, machinery, and other resources.
 Improved productivity and enhanced worker mood.
 Increasing adeptness of the organization.
For an organization, productivity can be increased over a period of time if workers are
efficient and are focused. Therefore, the following are the advantages of work study
developed by Prasad et, al., 2013 below:
 Increase in production efficiency.
 Higher levels of production and optimum utilization of resources.
 Efficient flow of material and products.
 Efficient handling of material and better layout.
 Decreased cost of production, because time spent on the job is decreased.
 Increased morale of workers with an increase in safety and efficiency.
 Benchmark and standard performance levels are established, thus providing
targets for organization and better job satisfaction and incentive planning
due to work study.
2.2.2 Method Study
It is a scientific process for enhancing the job design. It analyzes the existing procedures
and proposes job processes for improved efficiency (Rachmad, 2014). In addition, the
method helps to identify appropriate areas that need improvement for efficient and cost-
effective operations. Therefore, the following are the objectives of the method study:
 To study existing work process and propose improved methodologies.
 To identify new methods for increased production and reduction of cost.
 To achieve optimum utilization of resources.
Method study guarantees an increase in overall productivity and profitability to the
organization. Method study involves following procedures:
 Selection of work to be studied.
 Recording the present method.
 Critical examination of the facts.
 Development of the most practical, economic, and effective method.
 Installation of new method.
 Maintenance of new method and checking of its practices
Figure 2.1 Work Study (Shantideo et al, 2018)
Study procedure. Seven fundamental steps (Shantideo et al., 2018) as follows are
involved:
 Select the work to be studied.
 Record all the relevant facts regarding the present method.
 Examine the facts critically and arrange in sequence using procedures best suited for
the purpose.
 Develop the most practical, economic, and effective method, having due regard to
all contingent circumstances.
 Define the new method so that it can always be identified.
 Install the method as standard practice.
 Maintain regular routine checks
2.2.3 Ergonomics of Workplace
Ergonomics is used to design an environment (layout, work methods, equipment, noise,

etc.) which is compatible with each individual‟s physical and behavioral characteristics.
Ergonomics looks at the behavior of the person performing the job (Rachmad, 2014).
According to International Ergonomics Association (IEA), (2012) Ergonomics (or human
factors) is the scientific discipline concerned with the understanding of interactions
among humans and other elements of a system, and the profession that applies theory,
principles, data and methods to design in order to optimize human well-being and overall
system performance.
A publication by the Health and Safety Executive (HSE), UK in 2003: “Understanding
ergonomics at work” also defines ergonomics as the scientific study of human work. It
considers the physical and mental capabilities and limits of the worker as he or she
interacts with tools, equipment, work methods, tasks and the working environment. The
publication further postulates that the application of ergonomics to workplace improves
health and safety by: reducing the potential for accidents, reducing the potential for injury
and ill health and improves performance and productivity.
Ergonomics permeates every aspect of human endeavor. As a result, various branches or
concepts of ergonomics have evolved and developed over the years. A well designed
workstation is important for preventing diseases related to poor working conditions, as
well as for ensuring that work is productive (Vinza and Trijoko, 2016). Every workstation
should be designed with both the worker and the task in mind so that work can be
performed comfortably, smoothly and efficiently.
If the workstation is properly designed, the worker should be able to maintain a correct
and comfortable body posture. This is important because an uncomfortable work posture
can cause a variety of problems, such as: back injury, development or aggravation of RSIs
and circulatory problems in the legs. The main causes of these problems are: poorly
designed seating, standing for long periods, reaching too far and inadequate lighting
forcing the worker to get too close to the work (Warokka et al, 2016:).
2.2.4 Work Overload
According to Ashfaq, et al. (2013), Work overload affects the employees‟ performance
and the associates of the work overload also affect the outcomes of the employees. It is
case when peoples feel pressures on themselves or when the demands of a situation are
largest than they can handle work. According to Khuong and Yen (April, 2016) work
overload was significant effect on job stress and job stress has an impacts on job
performance of employees Warokka and Febrilia (2015), job performance also defined as
the level of productivity of an individual employee.
2.2.5 Work Environment and Job satisfactions
The main aim of this study is to identify the effect of work environment on employee‟s
performance. However, the physical work environment creates the physical condition that
can affect the health of employees. Yet, the way in which the mental environment creates
vicious condition (e.g. fatigue boredom, attitude and behavior of supervisor and
colleagues) for employees and social environment can affect the confidence level or
performance of employees. So, ultimately the work environment can influence the
performance level of employees or else these factors can consequence the performance of
overall (Warokka and Febrilia, 2015).
2.2.6.1 Working Environment
Working environment consists of two broader dimensions such as work and context.
Work includes all the different characteristics of the job like the way job is carried out
and completed, involving the tasks like task activities training, control on one‟s own job
related activities, a sense of achievement from work, variety in tasks and the intrinsic
value for a task (Warokka and Febrilia, 2015).
Many research papers have focused on the intrinsic aspect of the job satisfaction Results
have shown that there is a positive link between work environment and intrinsic aspect of
the job satisfaction. Further they described the second dimension of job satisfaction
known as context comprises of the physical working conditions and the social working
conditions (Skalli, et al, 2008).
Different factors within the working environment such as wages, working hours,
autonomy given to employees, organizational structure and communication between
employees & management may affect job satisfaction (Lane, et al, 2010).
According to Noah and Steve 2012) a working environment in an organization increases
level of job satisfaction that ultimately leads to achievement of organization goals.
Arokiasamy (2013) found that the factors like compensation, rewards, job security and
working environment increase level of commitment and sense of belonging with the
organization.
Yasin Sheikh Ali et al. (2013) found that the productivity of employees will increase by
keeping working conditions and working environment up to certain threshold level and
subsequently will decrease if work load will increase from above certain threshold level.
The conceptual of Model of Working Environment is presented in the Figure 2.2
Work Environment
Training and
Development
Incentives and
Good Relation Recognition
with Coworkers Plans
Supervisor Employee Adequate

Support productivity Workload
Figure 2.2 Factors constituting working environment (Prof. Dr. Abdul Ghafoor
Awan, 2015)
The above figure indicated the impact of factors that were selected to represent working
environment and their impact on productivity:
Supervisor support: It means the role played by the supervisor in equipping knowledge
with job knowledge. It also means the extent of value given by supervisor to employee
contribution and care about employee well- being.
Good relations with coworkers: Relation with coworkers includes relation with
employees who are at the same hierarchical level and have no authority over one
another.
Training and development: Training means the planned and systematic modification
of behavior through learning events, activities and programs which result in the
participants achieving the levels of knowledge, skills, competencies and abilities to carry
out their work effectively.
Attractive, fast incentive and recognition plan: Monetary and non-monetary benefits
plan developed as the result of employees‟ achievement of specific objectives.
Adequate work load: It is intensity of work assignment or the amount of work performed
by the employees (Prasad, et al, 2013).
The Facility Layout Problem
The most common approaches to the facility layout problem focus on developing a block
layout which aims at combining optimally the shape and the relative locations of the
manufacturing sections included in the facility. In most of this approaches the areas of the
sections fixed while their shape is allowed to change freely or at most, with in certain limits.
Types of Layout
The types are: - Plant layout, process layout, product layout combination layout and fixed
position layout. From those types plant layout is the best one especially for steel
industries. (Pedro M.Viilarinho, et al, 2003)
Plant layout –Plant layout means the disposition of the various facilities (equipment‟s,
material, manpower, etc.) and services of the plant with in the area site selected
previously .Plant layout begins with the design of the factory building and goes up to the
location and movement of a work table. All facilities like equipment‟s raw materials,
machinery, tools, futures, workers, etc. are given a proper place.
2.2.6.2 Job Satisfaction

Baah and Amoako (2011) described that the motivational factors (the nature of work, the
sense of achievement from their work, the recognition, the responsibility that is granted to
them, and opportunities for personal growth and advancement) helps employees to find
their worth with respect to value given to them by organization. Further, this can increase
motivational level of employees which will ultimately raise internal happiness of
employees and that the internal happiness will cause satisfaction.
Hygeine factor can only cause external happiness but they are not powerful enough to
convert dissatisfaction into satisfaction but still its presence is too much important.
The study showed that different psychosocial and work environment variables like work
place, social support has direct impact on job satisfaction and that increase in rewards
does not improve the dissatisfaction level among employees. The supervisors‟ availability
at time of need, ability to interlink employees, stimulate creative thinking and knowledge
of worth of open mindedness in view of workers, and ability to communicate with
employees, are the basic supervision traits (Skalli, et al, 2008).
Bakotic and Babic (2013) found that for the workers who work under difficult working
conditions, working condition is an important factor for job satisfaction, so workers under
difficult working conditions are dissatisfied through this factor.
To improve satisfaction of employees working under difficult working conditions, it is
necessary for the management to improve the working conditions. This will make them
equally satisfied with those who work under normal working condition and in return
overall performance will increase.
Chandrasekar (2011) argue that an organization needs to pay attention to create a work
environment that enhances the ability of employees to become more productive in order
to increase profits for organization. He also argued that human to human interactions and
relations are playing more dominant role in the overall job satisfaction rather than money
whereas management skills, time and energy, all are needed for improving the overall
performance of the organization in current era.
Based on the above literature, the conceptual model tested is presented in Fig 2.3 is the
working environment in which the employees are working within an organization and the
dependent variable is the Job satisfaction of employees. Working environment includes
the working hours, job safety, job security, relationship among employees, esteem needs
of employees and the influence of top management on the work of employees.
Working Environment Job Satisfaction

- Working hours - Employee loyalty
- Job Safety & Security - Sense of ownership
- Relationship with Co- workers - Level of Commitment
- Esteem Needs - Efficiency & Effectiveness
- Top Management - Productivity
Figure 2.3 a conceptual model of working environment and job satisfaction (Abdu
Raziq, et al, 2014)
This research study will test the relationship between working conditions and the job
satisfaction. The hypothesis below is developed to analyze the relationship between the
variables.
2.3 Overview of Line Balancing
From ancient times to the modern day, the concept of assembly has naturally been
changed a lot. The most important milestone in assembly is the invention of assembly
lines. In 1913, Henry Ford completely changed the general concept of assembly by
introducing assembly lines in automobile manufacturing for the first time. He was the
first to introduce a moving belt in a factory, where the workers were able to build the
famous model-T cars, one piece at a time instead of one car at a time. Since then, the
assembly lines concept revolutionized the way products were made while reducing the
cost of production. Over the years, the design of efficient assembly lines received
considerable attention from both companies and academicians. It had been found from
that a well-known assembly design problem is assembly line balancing, which deals with
the allocation of the tasks among workstations so that a given objective function is
optimized‟. Assembly line balancing has been a focus of interest to academics in
operation management for the last four decades. Mass production has saved huge costs
for manufacturers in various industries for some time.
The primary goal of the proposed approach is to minimize the number of workstations
required on the line (Y. Kara, et al. 2006). To meet this aim, the proposed approach uses
such a methodology that enables the minimization of the absolute deviation of workloads
among workstations as well. In terms of minimizing the number of workstations required
on the mixed-model U-line, as well as minimizing the absolute deviation of workloads
among workstations, the proposed approach is the first method in the literature dealing
with the balancing and sequencing problems of mixed-model U-lines. The newly
developed neighborhood generation method employed in the simulated annealing method
is another significant feature of the proposed approach. Usually, it is assumed that the
production process is fixed, i.e. has been determined in a preceding planning step.
However, this sequential planning approach is often suboptimal because the efficiency of
the production process cannot be evaluated definitely without knowing the distribution of
work. The proposed approach uses a weight parameter to perturb task priorities of a
solution to obtain improved solutions. The weight parameters are then modified using a
learning strategy (U. Özcan, B. Toklu, 2008).
The maximization of line efficiency i.e. the minimization of the number of stations and
the equalization of workload among stations i.e. The proposed algorithm searches enabled
transitions or assignable tasks in the Petri net model of precedence relations between
tasks, and then the task minimizing the idle time is assigned to the station under
consideration.
2.3.1 Line Balancing
Line Balancing means balancing the production line, or any assembly line. The main
objective of line balancing is to distribute the task evenly over the work station so that
idle time of man of machine can be minimized. Line balancing in order to obtain an
optimum or most efficient balance of the capacities and flows of the production or
assembly processes (Wiyaratn and Watanapa, 2010). In classic operations research
optimization technique which has significant industrial importance in lean system. The
concept of mass production essentially involves the line balancing in assembly of
identical or interchangeable parts or components into the final product in various stages at
different workstations. With the improvement in knowledge, the refinement in the
application of line balancing procedure is also a must. Balancing is the technique of
maintaining the same level of inventory at each and every operation at any point of time
to meet the production target and to produce garments of acceptable quality. It is a
function of the work study office to provide management with information to help the
efficient and productive running of the factory, and part of this information is the process
known as line balancing. Line balancing is a vital key in the efficient running of a line
(Seminar SCT, 2010). The objective of the process is to balance the workload of each
operation to make sure that the flow of work is smooth, that no bottlenecks are created,
and that the operators are able to work at peak performance throughout the day. This
process is intended to reduce waiting time to a minimum, or in fact with the use of some
work in progress to eliminate waiting time completely. The process to balance the line is
given below (Seminar SCT, 2010)
 In operation breakdown we try to equalize the standard time.
 But still there will be the difference in the standard time which leads to work
in progress.
 So, we try to set the flow through each operation to be similar as possible.
 Checking from time to time to see how things are going and then making
adjustments to even out the flow again. This process is called balancing.
2.3.2 Work on Line balancing
Work line balancing is all about arranging a production line so that there is an even flow
of production from one work station to the next. Work line balancing is also a successful
tool to reduce bottleneck by balancing the task time of each work station so that there are
no delays and nobody is overburden with their task. According to Falkenauer (2009) work
line balancing, is the problem of assigning operations to workstations along a work line,
in such a way that the assignment is optimal in some sense. Furthermore, work line
balancing can also be defined as systems which are formed by arranging workstations
along a line. Work pieces at the work stations can be moved using labor or equipment,
with connected tasks taken sequentially bearing in mind possible constraints in the
precedence relationship of tasks within the production cycle time. Work line balancing
methods attempt to allocate equal amounts of time for each worker so that the production
flows smoothly without long waiting times (Karibo, 2020).
2.3.3. Dimensions of Work Line Balancing
Standardized Work: According to Boyer (2008) standardized work was opined to be a

document centered on human actions that combines the elements of a job to do in an
effective sequence, without waste, to achieve the most efficient level of production.
Standardized work is a distinct framework which includes three critical elements: task
time, standard work, and job sequence.
The most critical factor in applying standardized work is to consistently train the
workforce in handling machines especially technological driven machines that increases
work process efficiency.
This creates awareness and understanding among employees as they know what to do and
how to do the job. By documenting the current best practice in task or job performance,
standardized work forms the baseline for continuous improvement. Given improvements
to the work standard, the new work standard is considered as baseline for subsequent
developments or enhancements of work. Standardized work allows the work instructions
of current processes themselves covering all processes, all employees and all shifts,
therefore, reducing variation, and making training much easier. The features of
standardizing include safe systems of work, quality assurance, and control, the movement
of employee process elements to organizational documented process elements, providing
the benchmark or baseline for all future improvement (Karibo, 2020).
2.3.4 The Ease of Line Balancing
All factories that have a line such as traditional assembly line and new assembly line such
as heuristic and U-type and also mixed model used a few technique such as work sharing,
genetic algorithms and fuzzy logic and also simulation method to improve a few
parameter of line control in other hand ,manager like has a productivity and high yield in
their factory and for this goal get help from previous technique to locate a machine,
employees ,assign employer to machine to select best choose for control and work by
machine . In a few companies one employer control 2 or more than 2 machines and this
result is output of line balancing. In another word the company used line balancing for
grow up the rate of production and decrease man power, idle time and buffer near
machine, also used line balancing for produced more than 2 products (Mahmud, et al,
2017).It levels the workload across all processes in a cell or value stream to remove
bottlenecks and excess capacity. A constraint slows the process down and results if
waiting for downstream operations and excess capacity results in waiting and absorption
of fixed cost.
2.3.5 Non-Value-Added Costs of Line Balancing
Cost from Overproduction: Production costs money. There is no need to produce such
products which cannot be sold. This is the most deceptive waste in today‟s time and
resources utilization is to be maximized. Overproduction includes making more than what
is required and making product earlier than required (Mahmud, et al, 2017)
Excess Inventory Cost: Higher inventory cost is not beneficial for any company in
today‟s variable demand business climate. Costs which are associated with the inventory
are space, obsolescence, damage, opportunity cost, lagged defect detection and handling.
In the case of obsolete inventory, all costs invested in the production of a part are wasted.
Excessive inventory should be eliminated.
Processing Cost: Efforts that add no value to the desired product from a customer‟s point
of view are considered as non-value added processing. Non value added operations
should be eliminated. Vague picture of customer requirements, communication flaws,
inappropriate material or machine selection for the production are the reasons behind this
type of waste (Mahmud, et al, 2017).
Defective Products: Companies give much emphasis on defects reduction. However,
defects still remain the major contributors towards the non-value-added cost. Cost
associated with this is quality and inspection expenditure, service to the customer,
warranty cost and loss of customer fidelity.
Transportation Cost: Cost associated with material movement is a significant factor in
the non-value-added cost function. In a well-designed system work and storage areas
should be near to its point of use. This consumes huge capital investment in terms of
equipment required for material movement, storage devices, and systems for material
tracking. Transportation does not add value towards the final product.
Waiting: If line is not properly balanced and inappropriate material flow selection are the
reasons behind waiting time. The time spent on waiting for raw material, the job from the
preceding work station, machine down-time, and the operator engaged in other operations
and schedules are the major contributors in the waiting time.
A constraint slows the process down and results if waiting for downstream operations and
excess capacity results in waiting and absorption of fixed cost.
Bottleneck: Delay in transmission that slow down the production rate. This can be
overcome by balancing the line (Naveen and Dalgobind, 2013). Line balancing is a
technique used in connection with the design of product layout or „„lines‟‟. The term
„„balancing‟‟ is used because one of its main objectives is to minimize the idle time and
spread it as evenly as possible across the workstations.
When balancing a line, the following factors need to be taken into account: the required
output rate or cycle time (which depends on the demand for the product); precedence
constraints (these are restrictions on the order in which tasks can be done; in other words,
certain tasks will have „„predecessor tasks‟‟ that must be done first); zoning constraints
(these are restrictions on where certain tasks or combinations of tasks should, or should
not, take place); whether there is a need for workstation duplication or replication (this
would be the case when any task takes longer than the available cycle time). The line-
balancing problem comprises two aspects:
i. Determination of the required number of stations and
ii. The assignment of tasks to each station with the objective of maximizing
efficiency (by minimizing idle time and spreading it evenly across workstations)
David Bennett, 2015).
According to Jay and Barry (2008), line balancing is common technique to solve
problems in assembly line. Line balancing is a technique to minimize imbalance between
workers and workloads in order to achieve required cycle time. This can be done by
equalizing the amount of work in each station and assign the smallest number of workers
in the particular workstation. Line balancing operates under two conditions:
i. Precedence Constraint: Products cannot move to other stations if it does not fulfill
required task at that station. It should not skip stations because certain tasks need to be
done before others according to the set sequence.
ii. Cycle time Restriction: Cycle time is maximum time for products spend in every
workstation. Different workstation has different cycle time (Yeoh, 2013).
Time and motion study
The time and motion study provides techniques to analyze in detail an operation or task,
measuring which activities add value and how to minimize and eliminate the ones that
don‟t add value or are considered a waste. Through time and motion study of a
manufacturing process, it is possible to calculate its capacity and increase its efficiency
and productivity, making the organization more competitive to the point of having lower
production costs, offering a quality product at a lower price to the customer.
By utilizing the time and motion study, a better way to perform the operations of a
process can be developed. To each operation, standard motions and times are assigned,
which must be followed so that the organization finds better results in the market in
which it operates. According to Souto (2002), methods engineering studies and analyses
work in a systematic way, aiming to develop practical and efficient methods, seeking the
standardization of the process.
The data processing for the standard time calculation follows 3 steps:
1. Sample size calculation - the ideal sample size is calculated through an equation.
2. The observed times are multiplied by the rating factor, and the value found is
called normal time. The rating factor is determined by the observer himself,
where:
V>100% - Rating above normal;
V=100% - Normal rating;
V<100% - Rating below normal
3. The normal times found are multiplied by the allowance factor of each operation -
the allowance factors is a value corresponding to the existence of an allowance for
personal needs fatigue, waiting and break time.
2.3.6. Procedure of Assembly Line Balancing
Assembly lines are the most important components of mass production systems.
The improved labor productivity is their essential significance for manufacturers who
have to produce high volume products in a fast and cost-effective manner. An assembly
line consists of several successive workstations in which a group of assembly operations
(tasks) are performed in a limited duration (cycle time) (Mahmud et,al. 2017).
The productivity level of an assembly line generally depends on balancing performance.
Assembly line balancing (ALB) is the problem of assigning tasks to successive
workstations by satisfying some constraints and optimizing a performance measure. This
performance measure is usually the minimization of the number of workstations utilized
over the assembly line. Assembly line balancing is the problem of assigning various tasks
to workstations, while optimizing one or more objectives without violating any
restrictions imposed on the line (Yeoh, 2013)
Swap nil (2014) stated that the good assembly line is the line that has high value of line
efficiency. Line efficiency can be defined as the percentage of good parts at the end of the
line versus the theoretical number that the line should produce in a given time period.
Time periods for averaging are determined by the goal of the production. To achieve
100%-line efficiency, one station must never be blocked or starved, and the station must
always operate at its theoretical capability. The higher outputs of the line can be
considered as the efficient line because the line can produce higher outputs in the specific
production time.
1. Single-model assembly lines
Single model assembly lines have been used in single type or model production only.
There are large quantities of the products, which have the same physical design on the
line. Here, operators who work at a workstation execute the same amount of work when a
sequence of products goes past them at a constant speed.
2. Mixed-model assembly lines
Mixed-Model Assembly lines are usually used to assemble two or more different models
of the same product simultaneously. On the line, the produced items mixed model
production lines are often used in manufacturing systems.
3. Multi-model assembly lines
In Multi-model assembly lines several (similar) products are manufactured on one or
several assembly lines. Because of significant differences in the production processes,
rearrangements of the line equipment are required when product change occur.
Consequently, the products are assembled in separate batches in order to minimize set-up
inefficiencies. While enlarging batch sizes reduces set-up costs, inventory costs are
increased (Mahmut, 2014).
Figure 2.4 Assembly lines for single and multiple products (Naveen Kumar and
Dalgobind Mahto, 2013)
2.3.7. Terminology Used in Assembly Line Balancing
There are some terms which should be considered in a steel product industry line
balancing process, such as lead time, task time, cycle time, down time and minimum
number of work stations which are explained below:
Lead time: lead time is the total amount of time required for completing a product
beginning from the date of receiving the order to the shipment of the goods to customer.
Time is a great issue in steel production industry as orders are based on weather, seasons
and occasions. Lead time carries huge importance when delivering the products to the
respective outlets is concerned. The manufacturing lead time (MLT) of a product is the
total time elapsed from the instant at which raw materials are ordered until the instant the
finished product is delivered.
(Nahom, 2011) Total lead – time is made up of time devoted to processing orders,
procuring and manufacturing items, and transporting items between the various stages of
the supply chain.
Takt time: According to Pekin (2006), manufacturing a product on assembly lines
requires dividing the total work into a set of elementary operations. A task is the smallest,
indivisible work element of the total work content. Task time or processing is the
necessary time to perform a task by any specific equipment.
Producing faster than task time results in over-production which is a type of waste
whereas producing slower than task time results in bottlenecks where the customer orders
may not be filled in tie .(Swap nil.2014) stated that calculation of tact time is based on the
target production quantity per day and on the standard time per operation.
Minimum number of work stations: A workstation is a physical area where a worker
with tools, a worker with one or more machines, or an unattended machine performs
particular sets of work together. Number of workstations working is the amount of work
to be done at a work center expressed in number of workstations.
Minimum number of the workstations is the least number of workstations that can
provide the required production .Actual number of workstations is the total number of
workstations required on the entire production line, calculated as the integer value of the
number of workstations working.
Minimum number of workstations can be calculated by total task duration time (the time
it takes to make the product) divided by the cycle time. Fractions are rounded to the next
higher whole number. (Naresh, 2011)
Where, .n is the number of assembly tasks.
Work in Process (WIP): Work in process (WIP) is the amount of semi-finished product
currently resident on the factory floor. A semi-finished product is either being processed
or is waiting for the next processing operation. Inventories are also seen as the insurance
buffer against uncertainties induced by delayed supplies, machine breakdowns,
absenteeism and uncertain customer orders. Inventory is the evidence of poor design,
poor forecasting poor coordination and poor operation of the manufacturing system.
Throughput time: For a manufacturing system, the throughput is generally expressed as
an hourly or daily production rate i.e., the number of parts produced per hour or day .The
reciprocal of the throughput or production rate is the production time per unit of the
product. For transfer lines the throughput approximates the reciprocal of the cycle time
(transfer time + longest operation time). The manufacturing should be able to handle
quick delivery, thus ensures a short throughput – time at high productivity rates.
Machine Utilization: High machine utilization is assumed to be good because it
amortizes the cost of the machinery faster. Idle time is supposed to be bad since high-
priced equipment does the right quantity of exactly the right things at exactly the right
time.
Capacity: The term capacity, or plant capacity, is used to define the maximum possible
output of the transformation process the plant is able to produce over some specified
duration.
Flexibility: - Flexibility is the ability of the system to respond effectively to change and
fundamental to achieve competitiveness. In general, high degree of flexibility requires
higher levels of automation and ore investments. However, such as a system will be an
adapting organism capable of surviving in uncertain and changing markets .Changing
circumstances include both internal and external changes.
Internal changes or disturbances include breakdown of equipment, variability in
processing time, work absenteeism and quality problems. External charges are typically
changes in design, demand and product mix. The ability to cope with internal changes
requires a degree of redundancy in the system, whereas the ability to cope with external
changes requires that the system should be versatile and capable of producing a wide
variety of part types with minimum changeover times and cost to switch from one product
to another.
Cost: This includes decreasing the total of cost of production by reducing value adding
cost, non-value adding cost; holding cost, waiting cost, material handling cost, and other
costs.
Standard Minute Value (SMT): SMV is the standard time allowed to an operator
(worker) to complete a task .SMMV or sometimes called as SAM (Standard Allowed
(Minute) is the time value arrived at for a task based on the average rate of output.
In the factory, work study measure and calculate SAM for sewing operation using
standard calculation method SA is used any ways directly and indirectly. Some of those
are:-
 Factory as well as individual operator performance is measured by means of SAM
 Labor cost and associated cost ratios are measured by SAM
 Operators payroll and incentive amount is calculated based on earned SAM
 Latest production scheduling systems like line balancing system and performance
measuring system use SAM as one of the primary parameters.
Cycle time: - The area with in a workplace equipped with special operators and/or
machines for accomplishing tasks is called workstation. Cycle time is the time between
the completion times of two consecutive units/workstations. Cycle time also defined as
show frequently a finished product comes out of production facility. Cycle time shows
how often the production line can produce the product with current resources and staffing
.it is an accurate indicator to represent of how the line is currently set up to run. Cycle
time is the expected average total production time per unit produced. On an assembly line
or in a work cell with multiple operators, each operator will have his own time associated
with completing the work he is doing, to meet customer demand or monitor productivity
the cycle time and tact time should be balanced in parallel. The higher cycle time than
tact time may result the late delivery and customer dissatisfaction whereas shorter cycle
time than tact time many cause the excess inventory or excess use of resource. Cycle time
also known as observed time is defined as the duration from starting point of a job to the
starting point of the next job. This time is established from the observation data of an
operator while working at a certain pace.
Cycle time = Machine time + material handling time
Basic time: Basic time of a job is determined by multiplying rating factor to the observed
time (cycle time) .Basic tie is also expressed as normal time. In basic time no allowances
are included.
Basic = (Cycle time X Performance rating)/100 or basic time = (Standard time –
Allowances)
Performance rating: Rating‟ is the process used by the industrial engineering to compare
the actual performance of the operator with his/her mental concept of normal
performance. In order to rate there must be a defined level of performance to compare
with, an „average „level .rating is the subjective comparison of any condition or activity to
a benchmark, based upon our experience. While the mechanics of time study record the
time a task did take, applying a rating will determine the time a task should take.
The rating corresponding to the average rate at which an operator will naturally work at a
job, provided they know and adhere to the specified method, and provided they are
motivated to apply themselves to their work (Tesfaye, 2019).
2.4 Productivity
2.4.1 Productivity of a Manufacturing System
Productivity of a manufacturing system can be defined as the amount of work that can be
accomplished per unit time using the available resources. According to Durdyev, (2011)
productivity is an effective utilization of the resources to achieve set objectives or it can
be defined as “quantity of output of a process per unit of resource input”, which aligns
with several approaches. Productivity, with its widely used definition, is a relation
between output which is produced by a production process or service system and input
which is used to produce output. Productivity is one of the major determinants that enable
manufacturing organizations to compete in the global market. One of the most important
factors which increase competitive capacity of companies is to use their production bases
in the most effective way. Therefore, to minimize loss of the factors related to labor,
machine and material provides opportunity to increase productivity. Productivity is also
confused with terms like efficiency and effectiveness and these terms are wrongly
considered synonymous to productivity. Efficiency and effectiveness are two different
terms such that efficiency indicates how well the resources are utilized to accomplish a
result. Productivity is a measure of the efficiency and effectiveness to which
organizational resources (inputs) are utilized for the creation of products or services
(outputs) (Kulkarni, 2014). As stated by Kulkarni 2014, productivity is the ratio of output
and the input.
According to Mishra 2013, productivity improvement focuses on: Doing the “right
things” (i.e. know “what” to produce and distribute) by continuously reviewing and
identifying changing customer and societal needs. Doing “things right” (i.e. know “how”
to produce and distribute) by constantly improving production and distribution processes
to produce and deliver the goods and services in the most efficient way (ahni1, 2016).
Productivity is the relationship between output and input. It should be viewed as value
adding in addition to optimizing. It is a total concept that addresses the key elements of
competition, for example is innovation, cost, quality and delivery.
Therefore, an increase in productivity can be achieved by enhancing the value-added
content of products/services, or by decreasing the unit cost of production, or a
combination of both (MoLSA, 2020).
Productivity is a measure of the efficiency and effectiveness to which organizational
resources (inputs) are utilized for the creation of products or services (outputs) (Bheda,
2014) (Kesavan, et al, 2008). In readymade garments industry, output can be taken as the
number of products manufactured, whilst input is the people, machinery and factory
resources required to create those products within a given time frame.
2.4.2 Productivity in the Steel Making Industry
A recent case study of a steel plant by Hendel and Spiegel (2014) shows that the plant
studied was able to double its production over a 12-year time span, even though its capital
stock (nominal capacity) and labor force remained constant. A significant share of this
increase remained unexplained after controlling for a number of factors, suggesting that
learning and “tweaking the production process” played a major role. This unexplained
effect that results from combining inputs in a more efficient way is defined here as multi
factor productivity.
2.4.3 Production Efficiency
Efficiency is an important measure of a company‟s performance. Unlike productivity,

which a company achieves by maximizing the number of units produced in a given time
frame, efficiency requires the maximization of costs and the minimization profits for a
given level of output.
Efficiency, therefore, enable a business to make the best possible use of the company‟s
resource. For example, an efficient company will produce a greater number of quality
products, with less waste, using less energy and other resources during a given period
than an inefficient company. Efficiency is measured by dividing a worker‟s actual output
rate by the standard output rate and multiplying the outcome by 100 percent. The standard
output rate is a worker‟s normal rate of performance or the volume of worker a trained
employee can produce per unit of time using a prescribed method and with the usual
effort and skill. As production efficiency increase, production costs go down.
The operations strategy, technology, job design and process influence the rate of output as
does worker‟s skill and effort (Bruce, 1992).
2.4.4. Factors Influencing Productivity
Identifying productivity factors are the main element for productivity improvement.
Productivity factors can either boost or hinder productivity improvement. Gruenberg
classifies the factors influencing the performance of operation into four. These are
process, control, product and resources. Process factors are lead times, bottlenecks,
material flow, volumes, losses layout, cycle times transport etc. while factors related to
control are purchasing, overproduction, total quality, location, etc. Factors related to
product are design of assembly, product variants, standardization and modularization. The
factors related to resources are organization, efficiency, measurement, work methods,
capacity, communication, motivation, satisfaction etc. (Gruenberg, 2007).
Yamfwa also shows productivity can be influenced in both internal and external factors.
The internal conditions include condition of production process, labor, management firm
level investment, organizational structure; marketing etc. the external influencer‟s
performance includes national infrastructure, trade policies, good governance, political
stability, demand inflation, national systems of governance (Bailey D., 1995).
2.4.5. Factors Influencing Industry Productivity
The factors affecting industry productivity are inter-related and interdependent and it is a
difficult task to evaluate the influence of each individual factor on the overall productivity
of industrial units.
(i) Technological Development: Technological development plays an important part to
influence the industrial productivity. “The application of motive power and mechanical
improvements to the process of production has accelerated the peace of industrialization
to an unprecedented degree, and has given us the vision of the vast and unexplored
frontiers that still lie ahead of us in the realm of applied science and technology.”
The technological factors include degree of mechanization, technical know-how, product
design, etc. Improvement in any of the technological factors will contribute towards the
increase in industrial productivity. In India, application of mechanical power, introduction
of semi-automatic and automatic machines, improvements in the production processes,
better morale and productivity integration of production processes and higher degree of
specialization have contributed a lot towards the increases in industrial productivity.
(ii) Quality of Human Resources: Manpower plays a significant role in raising industrial
productivity in most of the industries. If the labor force is not adequately qualified and/or
is not properly motivated, all the steps taken to increase the industrial productivity will
have no result the employees‟ performance and attitudes have an immense effect on the
productivity of any industrial unit. Three important factors which influence the
productivity of labour area:-
(a) Ability of the worker,
(b) Willingness of the worker, and
(c) The environment under which he has to work.
(iii) Availability of Finance: The ambitious plans of an industrial unit to increase the
productivity will remain mere dreams if adequate financial resources are not available to
introduce technical improvements and give appropriate training to the workers.
The greater the degree of mechanization to be introduced, the greater is the need for
capital. Capital will also be required for investment in research and development
activities, advertisement campaign, better working conditions to the workers, up-keep of
plant and machinery, etc.
iv. Managerial Talent: The significance of managerial talent has increased with the
advancement in technology. Professional managers are required to make better use of the
new technological development. Since the modern enterprises are run on a large scale, the
managers must possess imagination, judgment and willingness to take imitative.
The managers should be devoted towards their profession and they should understand
their social responsibilities towards the owners of the business, workers, customers,
suppliers. Government, and the society this is essential if the managers want to manage
their organizations effectively. The managers should have conceptual, human relations
and technical skills in order to increases the productivity of the enterprise.
(v) Government Policy: The industrial policies of the government have an important
impact on the industrial productivity; the government should frame and implement such
policies which create favorable conditions for saving, investment, flow of capital from
one industrial sector to another and conservation of national resources. Certain industries
may be granted protection, and incentives may be given to the others for the development
in view of the national interest (Radhakrishnan, 2013).
The government should flow the taxation policy which does not discourage the further
expansion of business. It is also the duty of the government to check the growth of
monopolistic enterprises so that the interest, of the consumers and the workers are not
jeopardizing.
(vi) Natural Factors The natural factors such as physical, geographical and climatic
exercise considerable impact on the industrial productivity. The relative importance of
these factors depends upon the nature of the industry, goods and services produced and
the extent to which physical conditions are controlled. The geological and physical
factors play a very dominant role in determining the productivity of extractive industries
likes coal-mining in which the physical output per head is greatly influenced by the depth
of the coal-mines, the thickness of the coal seams, the topography of the region and the
quality of coal available (Radhakrishnan, 2013).
2.4.6. Manufacturing Sector On Economic Growth
The metal industry is found at very low stage of development; but is having a substantial
growth. The range of products manufactured in this sector includes galvanized roofing
sheets, pipes, reinforcement bars, nails, window and door frames, trusses, hand tools,
implements, pumps, and various metal fabrications. In addition to the above products,
there also exist a couple of plants assembling automobiles, trucks and tractors. There are
also some industries which produce hand tools spare parts and cutleries.
The demand for metal products in Ethiopia has increased significantly due to large
government projects as well as an increasing demand of the thriving private sector.
Although there are some industries that are involved in the production of steel sections
and profiles, wires and nails, corrugated steel and reinforcement bars, they cover only
15% of the country‟s metal needs. (FDRE Ministry of Industry, Investment Research and
Promotion Team August, 2017)
2.5 Literature Gaps (Conclusion)
To get adequate information and best understand about the issue substance and the field
of study many literatures are reviewed from different sources, among these journal,
articles, reports, and thesis are the main one. Therefore in this research, even though so
many researches are conducted on the sub sector they didn‟t provide the root causes for
impact of productivity. Those researches are focused on determining and refining one
area of productivity issue of one company. The researches focus on the sector
effectiveness issues not the cause of productivity as a detail general concept .Those
researches are compiled either for sectorial review or case company analysis ,not for both
at a time ,which does not justify the practically of the survey against the individual
industries/companies operational circumstances.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1. The Research Design
The study was used explanatory research method. Explanatory research method is
believed to be appropriate for this study as it consists of mainly how and why questions
of the study, behavioral real events which are not possible to control and contemporary
and complex social phenomenon whose boundary is not clear (Khaotari, 2004).
Malhotra and Birks (2006).stated that on explanatory research design as an overall
approach for its ability to incorporate different methods and techniques in the collection
and analysis of data that focuses on the various issues of the study for explanation in a
scientific way and phenomena. Moreover, discovering regularities in descriptive events is
a prerequisite to examine the impact of work method and line balancing on the
productivity of Walia steel industry.
3.2. Research Approach
This research approach was organized using both quantitative and qualitative methods,
which was in triangulation research method which is help to clarify concepts,
characteristics, descriptions, counts and measures to demonstrate implications of the issue
under objectives. The quantitative method involves the use of structured and semi-
structured questionnaire while qualitative would include the use of structural
questionaries‟ with the sampled subjects selected for this research. According to Mouton
and Marais (2001), identified about quantitative methods are most often used when the
motives for research are evaluate The quantitative method refers to the collection of data
using numbers, counts and measures of things and qualitative research basically involves
the use of words, picture description and narratives. In other hand, Kothari (2004) was
asserted that in qualitative research, it aimed to understand how people live, how they
talk, how they behave and what captivates or distress them. The most effective evaluation
research is one that combines qualitative and quantitative components, making statistical
comparisons is useful and so is gaining an in depth understanding of the processes
producing the observed results or preventing the expected results from appearing. It was
for this sake that, this research design was chosen in order to examine the impact of work
method and line balancing on the productivity of Walia steel industry.
3.3.Target Populations Sampling and Sampling Techniques
3.3.1 Target Population
According to Hair et al. (2010), target population is said to be a specified group of people
or object for which questions can be asked or observed made to develop required data
structures and information. Therefore, for this study, the target populations are all
employees who are currently working Walia steel industry which is total 153 of them
were included (WSI HRD) which means total population of 153 (108 male and 45
females). Because, the eligible target populations have added only those who are
currently working in Walia steel industry.
3.3.2. Sampling Size
Out of the total 153 local employees are identified eligibly in Walia steel industry. The
sample size was determined by applying the formula adopted from krejcie and Morgan‟s
(1970), due to largeness of the target populations to select conveniently after below
sample is transcribed:
n= N/1+N (e) 2
n = N/1+N (0.05) 2
Found that the populations are as representative sample size below:
n=sample size
N=target populations
(e) = estimated error 5%
Table 3.1 Sample Size
No Name of the department Populations size Study populations
1 Examine the impact of work method 153 110

and line balancing on the Productivity
of Walia steel industry permanent
employees
From above table 3.2, to counter check the accuracy of the sample size number is 110.
The required sample size determined at 95% confidence level and with 5% margin of
error. By comparing the two results, the researcher chooses to use the sample size
generated by Krejcie and Morgan formula i.e.
Table 2.2 Target respondents
No Department Total Staff Sample size

1. Production 69 69x(110/153) = 50
2. Maintenance & Technic 22 22x(110/153) = 16
3. Quality Management 14 14x(110/153) = 10
4. Human Resource 28 28x(110/153) = 20
5. Material Management 15 15x(110/153) = 10
6. Finance 5 5x(110/153) = 4
3.3.3. Sampling Techniques

Under qualitative method the sample selection has been guided by principles of
probability simple random sampling technique was employed in selecting the
representative sample from different levels of Walia steel industry.
As identified by Mouton- (2001, p: 132), the aim of simple random sampling in social
research is to produce representative selections of population elements. In the course of
the process simple random sampling the main aim is to get a sample of that which is as
representative as possible of the target population.
The underlying epistemic criterion of a valid i.e. unbiased sample is representativeness
and the method of criteria applied in the process of sampling are clear definition of the
population, observing the advantages of multi stage, systematic drawing of the sample
and drawing probability rather than nonprobability sample.
In selecting the representative sample size was taken for current study are Walia steel
industry long-lasting employees who are greater educational level of diploma and above
engaged in study, random sampling technique was employed who are positioned in to;
technical plant managers and above, quality control/quality assurance mangers Production
(operation) managers, research and development managers/experts and senior quality
experts /technicians& others.
3.4. Source of Data
Primary data are those that are not in existence but the researcher makes an effort to get
or collect the data specifically for the project being undertaken. The researcher in this
instance used questionnaires to collect the data also through interviews.
Secondary data was obtained from examine the impact of work method and line
balancing on the productivity of Walia steel industry, as well as the internet, lecture notes
and library books. Data was useful in writing the project work and also useful in
designing the questionnaires.
3.4.1. Data Collection
The survey was administered to Walia steel industry permanent staff who are technical
plant managers and above, quality control/quality assurance mangers production
(operation) managers, research and development managers/experts and senior quality
experts /technicians& others. The study collected the required information on one-to-one
basis from „willing respondents‟. A „willing respondent‟ in this research was defined as
an officer, who agreed to take part in the study. To avoid loss and delay, email and social
media distributions method was adopted. This method ensured distribution and collection
procedures, which were systematic and controlled by the researcher through optional
medium. Advantages obtained from this method included high completion rates, less non-
responses and opportunity for feedback. In addition to collection data through the
questionnaire survey, a qualitative data collection technique involving close ended
questionaries‟ with selected respondents was conducted. Data collection took place in
May, 2020.
3.4.2.1. Questionnaires
In an effort to achieve the objectives of the study, questionnaires were designed to be

filled by the various sections of the organization. It implies that the information resulting
from it is more consistent with the research questions and objectives. The primary data
will be gathered particularly by using likert scaled standard questionnaires.
The Likert-type scale method uses a range of responses: „strongly disagree‟, „disagree‟,
„Neutral‟, „Agree‟, and „Strongly Agree‟, with a numeric value of 1-5, respectively. The
usage of this particular scaling method ensured that the research study illustrate the ability
to assess the responses and measure the responses quantifiably.
Secondary data, 15 years of annual productions from 2006 to 2020 quantity were taken
for the study. Document analysis also seen the line balance pattern or trend has produced
in order to assess research problem of statement. It is a process of asking many people the
same questions and examining their answers. Possible answers too were provided to
enable the respondent tick which ever answer suited. A sample of the questionnaire can
be referred to on back page of this thesis work.
3.5. Reliability of the Research Instrument
3.5.1. For Quantitative Data Gathering

As Ayman, (2011), Cronbach alpha is one of the commonly used indicators of the scales
internal consistency. Reliability statistics were used to confirm the reliability of the
instrument. Preferably, the Cronbach Alpha coefficients of a scale should be above 0.7.
Based on this, a pilot test with 20 respondents was made in the study area of Walia steel
industry Permanent staff before the actual distribution of the instrument starts.
As a result, the coefficients of reliability of items measuring variables are found to be
Cronbach‟s alpha α = 0.863. Therefore, the instrument can be accepted as reliable. So the
questionnaire was distributed after correcting the feedback given in the pilot study.
Cronbach‟s value for all variables after data entry is α =.86 and then is computed as per
the category as follows. The category Cronbach‟s values that are less than the overall and
items were greater than 0.7 which have been accepted.
Table 3.3 Survey Cronbach's Alpha Reliability result of the Variables
Reliability Statistics
Cronbach's Alpha N of Items
.863 31
3.5.2. For Qualitative Data

For the document analysis and secondary data trustworthiness was assured by avoiding
double barreled, long and complex questions. Efforts were made to avoid leading
questions and false premises. Triangulation by method and data source was held to keep
the trustworthiness of the data to authenticate the genuineness of data; the researcher was
established good rapport relationship between study participants and documents. Content
validity or inter judge validity was conducted to find out if the questions were
representing what they were intended to measure in a proportional way.
In doing so, the variables of total quality management implementations and performance
was well defined and then the questions were given to four raters, two of them were staffs
in Walia steel industry of permanent staff who, and the other two raters were second year
post graduate students in the department social work.
3.5.3. Validity of the Instrument
To ensure the validity of the instruments to take care of Walia steel industry permanent
staff who were included. For the clarity of the instrument and to avoid contradiction of
the instruments by cross checking response alignment, as a result, some questions found
to be similar were removed.
3.6. Methods of Data Analysis
It is unquestionable that after the collection of data analysis, interpretation and

presentation in order to give recommendation to the problem. For the purpose of this
study both qualitative and quantitative data was analyzed accordingly. Qualitative data
start during and after data collection, which helped in rearranging and analyzing these
data systematically and rigorously. Data was presented in the form of statement.
Mainly for quantitative data, descriptive statistics used to summarize data by using Stata,
13 Software. Statistics including mean, frequency and standard deviation also was used to
analyze the data among the different groups. The mean and standard deviation was used
to describe the data obtained indicted mean difference of variables work method and line
balancing variable independent variable and the dependent variable (productivity).
Inferential statistics is particularly the Pearson‟s correlation was used to show the
relationship dependent and independent variable and the strength/degree as well as
direction of associations between variables. In addition, multiple liner regression analysis
was used to show up the effect.
Multiple linear regression equation is an extension of simple linear regression to show up
the out case and effect, factor and impact analysis. It is used to predict the value of a
variable based on the value of two or more other variables.
The variable used to predict is called the dependent variable (or sometimes, the outcome,
target or criterion variable). The variables are using to predict the values of the dependent
variable are called the independent variables (or sometimes, the predictor, explanatory or
repressor variables). Sometimes also known has multivariate linear regression for MLR.
The prediction equation is: Y′ = a + b1X1 + b2X2 + b3X3 + ∙ ∙ ∙ bkXk
There is still one intercept constant, a, but, each independent variable (e.g., X1, X2, X3)
has their own regression coefficient. Thus, both the strength of the relationship between
variables and the outcome of independent on dependent variable predicted on statistical
significance after result portrayed.
3.6.1. Model Specification
From the conceptual framework, European (EFQM) Excellence Model operates through a
simple framework of performance improvement through involvement of people in
improving processes (Oakland, 2003 p. 28, Zhang et al, 1999 cited Haile & Raju, 2016)
which show up performance efficacy (Y) is a function of the composite variable brand
equity whose components. Operational Efficiency Y is a latent or unobserved variable.
However, it is made concrete when purchasing decisions are made. To this end Y is
estimated using work method, line balance and productivity finally outcome of
manufacturing operational efficiency. To achieve the study objectives a variety of choice
frontier operational efficiency models such as multiple linear probability model (MLPM)
has presented below.
Y= f (β0 + Xi1 + Xi2+Xi3 + X4+ Xi5+ Xi6+ ………. +∑
I. Independent Variable
Work method continuous variable
OWS: Objectives of work study
MS: Method study
EWP: Ergonomics in workplace
WL&WE: Work overload and work environment
Line balancing: explanatory variable

Smoothness index= Machine time + Material handling time.
The balance delay: Basic time of a job is determined by multiplying rating factor to
the observed time (cycle time). Basic time is also expressed as normal time. In basic
Time no allowances are included.
Basic time = (Cycle time x performance rating)/100 or basic time = (Standard
Time - Allowances)
Line efficiency: production line distance between actual trajectory with the proposed
trajectory
SI: smoothness index

BD: Balance delay
LE: line efficiency I.e. Productivity = Output/ Input.
I. Dependent Variable
Pro: Annual Productivity
3.7 Tools Selection
Based on the research needs and objectives after conducting reliability and validity test of
data analysis were done thought descriptive statistics in process of frequency, percentage,
mean and standard deviations and inferential statics using correlations, and multiple liner
regressions using Cohen daggles productions efficacy frontier model using stata software
v.13 and flexible line balancing software v.3.0 in prospecting of ethical considerations
also SPSS IBM 20 and Microsoft excel is include.
3.8. Ethical Consideration
Ethical consideration in research should up hold fairness, honesty, openness, disclosure

of methods and the purpose for which the research is being carried out. In this case,
primary information gathered from Walia steel industry permanent staff respondents has
been kept until the reasonable period of time. Confidential files and issues regarding
employees‟ personal data, policies and strategies of the organization and other highly
classified information that need to be kept confidential are given value and kept
confidential.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. Introduction
This chapter deals with the analysis and presentation of the quantitative data collected
through questionnaire. The questionnaires composed open and close-ended questions,
which are summarized and presented quantitatively in tables using stata 13 software.
The researcher used some secondary data from published and unpublished documents of
the case organization.
Out of 110 questionnaires distributed, 85 were collected which makes the response rate
is 77.27% of the questionnaires the returned questionnaires were usable because they
were filled properly. The researcher, as much as possible, made the questionnaire easy to
read and answer without difficulties.
4.2. Socio-Demographic Characteristics of Respondents
The study analysed the demographic characteristics of respondents involved in the study.
In this section the respondents profile is presented. It includes gender, age, marital status,
level of educational, length of service; training received, obtains another post, and
outcome to perform in the current position. Analysing these variables was meant to
provide any evidence of association between these variables and the various responses.
Table 4.1 Profile of respondents
S.N Variables Type Frequency % Cumulative %
1 Gender Male 55 64.7 64.7

Female 30 34.3 100
Total 85 100
Source: Own Survey, 2020
The above Table 4.1, regarding to respondent‟s gender, male consisting 64.07% of the
workforce while female is consisting 34.3%. From the above table it can be observed that
the difference in gender composition in the sector is marginally high which the
respondents rating promotes gender balance in its employment practices.
Table 4.2 the year’s respondents spent in Walia Steel Industry (Service in years)
Level Frequency Percent

1 – 5 years 18 21.2
6 – 10 years 38 44.7
Valid
11 – 15 years 29 34.1
Total 85 100.0

Following above table 4.2, portrays that the distribution of length of service that
respondents have been working in Walia steel industry.
Out of the total respondents, 38 (47.7%) are between 6-10 years, 29 (34.1%) are between
11-15 years and 18 (21.2%) are between 1-5 years. Therefore, majority of the
respondents working in Walia steel industry aged between six to ten years. Study shows
that majority of respondents (34.1%) of the surveyed employees have more than 11-15
years‟ experience with the same employer.

From above Pie chart- 2: Distribution of potential participants according to their positions
in the Walia steel industry 64.71% of potential participants positions were
production(Operation) managers, other 20.00% of them were Senior quality experts
/technicians& others, similarly, 4.71% of them are technical plant managers and above
and the rest of 4.71.12% of the respondents were research and development
managers/experts Walia steel industry located from Oromia national and regional state of
Ethiopia.
With regard to the received the training on work method and line balance related issues
since you occupied your present post related to the tasks you are expected to perform out
of 85 respondents, 29(34.12%) respondents have not received training and 24(28%) of
respondent says yes, but only somewhat. This shows that majority of the respondents
needs on job training or skill gaps so management of the company or industry managers
should be develop strategy how to upgrade capacity of employees or facilitate training
program.
From above chart 3 result regarding to respondent‟s indicate the most difficult
challenges you face to in work method, line balancing and productivity Walia steel
industry indicates that, out of the 85 respondents captured in the research work, 20(25%)
of the total population were said that there is a workload across all processes in a cell or
value stream and availability of bottlenecks and excess capacity and 16(20 ) % of them
are lack of familiarity of tasks balancing the production line, or any assembly line so
results of respondent indicates findings of study.
4.3. Work method adjustment by Walia steel industry during productions
setup time and method of operation
4.3.1. Objectives of Work Study
Table 4.3 Descriptive Statics objectives of work study by Walia Steel Industry
during Productions setup time and method of operation
Item Mean Std. Dev.

Scientific and controlled analysis of available methods for 3.234043 .9911429
executing a task.
There is measuring performance of the qualified workers, 3.037234 1.051455
both mentally and physically, which help in establishing
standards for performance measurement Walia steel industry
Optimum utilization of workers, plant, machinery, and other 2.941489 1.13843
resources.
Improved productivity and enhanced worker mood of WSI 1.531915 .5003128
Increasing adeptness of the organization. 3.085106 .9552509
Grand mean 2.956109 .8614423
Range Description- Mean Difference:

1.00-2.50 = Low 2.51-3.50 = Medium
3.51-5.00= Maximum
Source: From survey data, 2020.
From above table 4.3, descriptive statistics result regarding to objectives of work study by
Walia steel industry during productions setup time and method of operation was found in
moderate agreement of grand mean difference of 2.956109 which is depicted in standard
deviations of 0.8614423. Finally, work study is field found moderately improve job
performance, optimum usage of plant and machinery, standardization of work methods,
etc. For an organization, work method increased over a period of time if workers are
efficient and are focused.
4.3.2. Method Study
Table 4.4 Descriptive Statics of Method study by Walia Steel Industry during
productions setup time and method of operation
Item Mean Std. Dev.

1. To study existing work process and propose improved 2.271277 .6982212
methodologies.
2. To identify new methods for increased production and 1.856383 .4802091
reduction of cost.
3. To achieve optimum utilization of resources. 3.606383 .5980018
4. Development of the most practical, economic, and 1.638298 .4817762
effective method.
5. Maintenance of new method and checking of its 2.81383 .9492019
practices
Grand mean 2.00310 .6737170

1.00-2.50 = Low 2.51-3.50 = Medium
3.51-5.00= Maximum
From above Table 4.4, Descriptive statistics result regarding to the method study by
Walia steel industry during productions setup time and method of operation indicated in
lower grand mean difference of 2.00310 which is depicted in standard deviations
0.6737170 guarantees lowering the overall productivity and profitability to the
organization.
It finally found that the method study is found Walia steel industry lower fulfillments of
following procedures which is study existing lower work process and propose improved
methodologies, using old methods for decreased production and reduction of cost and
found unable of development of the most practical, economic, and effective method.
4.3.3. Ergonomics in Workplace
Table 4.5 Descriptive Statics of Ergonomics in work place by Walia Steel Industry
during productions setup time and method of operation
Item Mean Std. Dev.

1. This is good ergonomic design makes the most efficient 3.409574 .8635914
use of worker capabilities while ensuring that job
demands to not exceed those capabilities
2. Walia steel industry ergonomics to workplace improves 3.856383 .3516374
health and safety by: reducing the potential for
accidents, reducing the potential for injury and ill
health and improves performance and productivity.
3. Walia steel industry has well designed workstation 2.095745 .6870716
which is important for preventing diseases related to
poor working conditions, as well as for ensuring that
work is productive.
4. Every workstation designed with both the worker and 2.882979 1.037854
the task in mind enabling work performed comfortably,
smoothly and efficiently.
Grand mean 2.843590 .89759109

1.00-2.50 = Low 2.51-3.50 = Medium
3.51-5.00= Maximum
Table 4.5, Descriptive statistics of ergonomics in workplace by Walia steel industry
during productions setup time and method of operation which us found moderately
apprehended in grand mean of 2.843590 in standard deviations of 0.89759109. This
indicated that Walia steel industry has moderate level lf designed workstation which is
important for preventing diseases related to poor working conditions, as well as for
ensuring that work is productive. In other hand, Walia steel industry ergonomics to
workplace moderate level of improvement in health and safety by: reducing the potential
for accidents, reducing the potential for injury and ill health and improves performance
and productivity.
Table 4.6 Descriptive Statics of work overload and work environment by Walia
Steel Industry during productions setup time and method of operation
Variable | Mean Std. Dev.

1. There is work overload happens when an individual 1.803191 .7003364
experience the lacking of resources, including time and
energy, needed to meet the demands of all roles.
2. when products with rich content are introduced 2.930851 1.059969
successively into a stations or assembly line, work
overload can occur and work on products can be left
unfinished due to the limited spare-time window for
worker
3. when work overload is occurred the employees has to 3.234043 .9911429
rush to finish his/her task on time, the risk of quality
product or defects, accidents due to fatigue or health
problems due to bad postures, etc. increased.
4. The use of strengthening operators to handle the work 3.037234 1.051455
overloads is expensive in our company.
5. Work overload affects the employees‟ performance and 2.941489 1.13843
the associates of the work overload also affect the
outcomes of the employees.
Grand mean 2.357891 0.998231
1.00-2.50 = Low 2.51-3.50 = Medium
3.51-5.00= Maximum
Table 4.6: Descriptive statistics of regarding to availability of work overload happens

when an individual experience the lacking of resources, including time and energy,
needed to meet the demands of all roles, if the products with rich content are introduced
successively into a stations or assembly line, work overload can occur and work on
products can be left unfinished due to the limited spare-time window for worker, when
work overload is occurred the employees has to rush to finish his/her task on time, the
risk of quality product or defects, accidents due to fatigue or health problems due to bad
postures, etc. increased which is the use of strengthening operators to handle the work
overloads is expensive in our company and Walia steel industry work overload affects the
employees‟ performance and the associates of the work overload also affect the outcomes
of the employees was found affirmatively in grand mean of 2.357891 depicted in standard
deviations of 0.998231.The study found the work overload and work environment by
Walia steel industry during productions setup time and method of operation which is
lower and found very risky.
4.4. The Line Balancing Improvement of Walia Steel Industry

Walia steel industry process simulation is the output of this study. Therefore, a simulation
scenario of Walia steel industry coating line was developed (see Figure 4.1 below). The
flexible line balance software v.3 simulation parameters are followed the exact
parameters of Walia steel industry such as the total length of the conveyor, number of
hanger (to hang the product), distance between each hanger, and total substations .
Figure 4.1 Steel manufacturing process simulations using flexible balance Software
v.3, 2020
Work Stations
There are nine number of work station based produced product on Walia steel industries
from nine stations currently only five work stations (LTZ Profile, Square hollow sections
(SHS),Sheet metal, Rectangular hollow section (RHS), Circular hollow section(CHS)
Lines) are properly working.
Network Diagram of the Initial and Final Line Balance of A Work (LTZ Profile
Production Line by Line 57 Machine)
Raw material
(import) inform
of roll of sheet)
Rolled roll of asheet through shearing machine sheard in
diffrent size of thichness,width and lenght of steel profiles
Welded (attached section/lines) inform of tool and die.
Added coalants and other chemicals through
amachine system.
Finalize production produced according to
thichness and shapes of profile needed.
Quality test
Stored to store
Shared or distiributed
for local market or
customers.
4.4.1. Results Weighted with Line Balancing
The use of the positional weight (RPW) method of allocation of work elements into the
work center can be seen in Table 4.7.
Table 4.7 simulated best fit configurations of man-machine-product in steel coating
line (with dynamic conveyer speed)
Product size (m) Hanger No of Labor speed (minute) Conveyor Total output
distance(m) Labor Loading speed (pieces)
Unloading Sheeting (m/min)
steel
Small 0.75 1 0.3 0.4 0.12 2.5 410

(0.5Lx0.5Hx0.25W) 0.5 2 0.2 0.3 0.09 2.5 434
(124pcs/hour
0.25 3 0.1 0.2 0.06 2.5 434
NA 4 NA NA NA 2.5 NA
Medium 0.6 1 0.4 0.5 0.15 1.5 317
(1.5Lx0.5Hx0.2W) 0.45 2 0.3 0.4 0.12 1.5 337
(48 pcs/hour)
0.3 3 0.2 0.3 0.09 1.5 337
0.15 4 0.1 0.2 0.06 1.5 337
Large 1.0 1 1.0 1.1 0.33 1.0 142
(2.0Lx0.5Hx0.2W) 0.9 2 0.9 1.0 0.3 1.0 203
0.8 3 0.8 0.9 0.27 1.0 228
(33 pcs/hour)
0.7 4 0.7 0.8 0.24 1.0 228
Source from survey data, 2020

From above Table 4.7 Simulated best fit configurations of man-machine-product in steel
coating line (with dynamic conveyor speed) in this study, two types of evaluation matrix
for powder coating line and validation were constructed (see Table 4.7 and Table 4.8
below). The matrix is constructed based on simulation of steel making process. To obtain
the simulation results, different configuration of trial runs was tested and synthesized in
order to obtain the best synchronization between man-machine-products. The aims of the
conveyor speed configurations are to avoid stoppage issue in powder coating line. Both of
the evaluation matrixes were constructed based on eight operation hours per shift were set
at 8 hours which is same as the real working hours.
For dynamic conveyor speed (Table 4.7), three types of products were tested and
analyzed. For small size product basic (e.g. base plate, bracing bar, supporting bar), the
suggested best configuration of man-machine-product is 0.5 hanger distance to hang the
product, while two labors are needed at loading and unloading area which could result in
a total output of 434 pieces‟ product.
As for the medium size product such as shelving and slim beam, the suggested best
configuration for conveyor speed 1.5 meter per minute is use of two labors at loading and
unloading area. The estimated output per hour for this setting is 337 pieces of powder
coated product. Next, for large sized product such as structured steel and standard beam
for conveyor speed at 1.0 meter per minute, the suggested number of manpower at
product loading and unloading area is three persons due to heavier weight product. The
estimated output per hour is 228 pieces.
For fixed conveyor speed scenario (refer to Table 4.7), the speed of conveyor is fixed at
1.3 meters per minute for three different types of product. For small sized product, two
labors are needed at loading and unloading area with an estimated output of 1176 pieces
of steel sheet. As for medium sized product, the optimum numbers of labor to be placed at
lob/adding and unloading area are three labors which could contribute to 326 pieces of
outputs.
Lastly, four labors are suggested at loading the unloading area for big sized product in
order to avoid line stoppage due to unsynchronized speed between human and machine. A
total 196 piece‟ outputs are/ simulated based on this configuration.
To summarize both of simulation condition, researcher can notice that different steel
making man-machine –product configuration could result to different production outputs
in powder coating line. This scenario is unavoidable because the human need to be
trained to align with the machine speed for achieving an optimum synchronization.
Thus, placement of the labor must be dynamic based on the product orders and the daily
delivery requirement to optimize the resource usage and reduce potential poor product
quality issue.
Figure 4.2 Tubular tiles Sheeting
Table 4.8 Simulated best smoothness of man-machine-product in steel profiling and
coating line (fixed conveyor speed: 1.3m/minute)
Product size Hanger- No of Labor speed (minute) Total Suggestion
(m) distance labor
(m) output no. of
(pieces) operator
Loading Unloading
(fast,avg,slow) (fast, avg, slow)
Small 0.39 1 (0.2,0.3,0.4) (0.25,0.35,0.45) 356
(0.5Lx0.5Hx 2 (0.2,0.3,0.4) (0.25,0.35,0.45) 1176 2
0.25W) 3 (0.2,0.3,0.4) (0.25,0.35,0.45) 392
4 (0.2,0.3,0.4) (0.25,0.35,0.45) 392
Medium 0.39 1 (0.5,0.6,0.7) (0.55,0.65,0.75) NA
(1.5Lx0.5Hx 2 (0.5,0.6,0.7) (0.55,0.65,0.75) 310
0.2W)
3 (0.5,0.6,0.7) (0.55,0.65,0.75) 326 3
4 (0.5,0.6,0.7) (0.55,0.65,0.75) 326
Large 0.45 1 (0.6,0.7,0.8) (0.65,0.75,0.85) 131
(2.0Lx0.5Hx 2 (0.6,0.7,0.8) (0.65,0.75,0.85) 157
0.2W)
3 (0.6,0.7,0.8) (0.65,0.75,0.85) 170
4 (0.6,0.7,0.8) (0.65,0.75,0.85) 196 4
*conveyor speed: 1.3meter/ minute using line balancing software v.3
4.4.2. Line Balancing Efficiency and Delay Comparison
The purpose of line balancing is to maximize line efficiency and minimize work center,
balance delay and smoothness index. Comparison of track criteria of actual conditions
and proposals can be seen in Table 4.13
Figure 4.3 LTZ Profile Production control Line, 2020
Table 4.9 Performance Comparisons
Conditions
Reference Parameters Actual Revisions
Number of work station (unit) 7 6
Balance Delay (%) 27.26 15.14
Smoothness Index 89.52 49.93
Line Efficiency (%) 72.73 84.86
*conveyor speed: 1.3meter/ minute using line balancing software v.3
In Table 4.9 it can be seen that the decrease in the number of work centers from the
previous 7 work centers to 6 indicates if this revision is applied in the factory then the
path with 6 work stations is more efficient and the delay time or idle is smaller. The value
of the line efficiency at the proposed condition is 84.86% from the previous condition that
is 72.73% which means the decrease of material accumulation between the work stations.
Balance delay from the previous 27.26% to 15.14%, which means reduced idle time
caused by poor allocation between the work stations and the smoothness index to 49.93
from the previous 89.52 which means the relative waiting time decrease from a
production line. So from the results of the comparison, it can be said the balance of the
proposed trajectory moderately appeared in the actual trajectory of line balancing
improvement of Walia steel industry.
4.4.3 Productivity Ratio of Walia Steel Industry
Table 3.10 Productivity Ratio of Walia Steel Industry PLC 2006-2020 G.C
Table 4.10: Productivity Ratio of Walia steel industry PLC 2006 to 2020
Variable | Obs Mean Std. Dev. Min Max
Planned Capacity | 15 5489005 1.04e+07 450 3.07e+07
Actual Capacity | 15 5136861 1.01e+07 418 2.98e+07
Capacity Utilization 15 .9361968 .0632701 .787037 1.013333
Rate
Source: Own computations, 2020
From above table 4.10, result productivity ratio of Walia steel industry PLC 2006 to 2020
which is planned capacity at average was 5489005ton/y, actual capacity was indicated to
5136861ton/y which productivity ratio of Walia steel industry is found 93.6% in average.
Chart 4: Productivity Utilzation Ratio of Walia Steel Industry
40000000
30000000
297604562
20000000 207672094
10000000
0 1.013333333 1331520
2004 2006 2008 2010 2012 2014 2016 2018 2020
-10000000
Planned Capacity
Actual Capacity
Capacity Utilization Rate
Capacity utilization rate lost due to power interruption
Source: Own computations, 2020

4.5. The Linear Relationship of Variables between the Predictor
Correlations are the measure of the linear relationship between two variables (Brooks,
2008). To find the association of the independent variables with dependent variable,
Pearson product moment of correlation coefficient was used. A correlation coefficient has
a value ranging from -1 to 1. Values that are closer to the absolute value of 1 indicate that
there is a strong relationship between the variables being correlated and values closer to 0
indicates that there is no linear relationship whereas value closer to -1indicates that there
is a weak relationship between the variables. As described by Andy (2006), the
correlation is a commonly used measure of the size of an effect: values of ± 0.1represent
a small impact, ± 0.3 is a medium effect and ± 0.5 is a large factor.
4.5.1. Relationship between Work Method and Predictors
In this section, correlation analysis between work method and predictors is conducted in
the light of each research objectives and hypotheses developed.
Table 4.11 Correlation matrix between employee Demography work method and
predictors
Variable Productivity Objectivity AE AF AG

Productivity 1.0000
Objectives of work study 0.9759 1.0000
Method study 0.9842 0.9497 1.0000
Ergonomics in workplace 0.9731 0.9521 0.9668 1.0000
Work overload and work environment 0.9832 0.9472 0.9867 0.9641 1.0000
**. Correlation is significant at the 0.01 level (1-tailed).

*. Correlation is significant at the 0.05 level (1-tailed).
Source: Own survey data, 2020.
From above table 4.11- Correlation matrix between employee demography and its
predictors between objectives of work study, method study, ergonomics in workplace,
work overload and work environment explained below. There is positive relationship
between reward system and productivity. Therefore, there is strong and positive
relationship between objectives of work study and productivity (r=0.9759, p=.000), thus
the result supports for hypothesis states that objectives of work study are positively
related to turnover intention for employees at Walia steel industry. The correlation of
p=0.000, p<0.01 also indicates that objectives of work study has significant relationship
with productivity.at significant level of 0.01. Moreover, it has been found that
productivity is more likely to leave their steel industry when they perceive luck of career
opportunities within their organizations.
“Our productivity is more likely to say very good as steel industry when we perceive
problem of power interruptions and career opportunities within their Walia steel
industry. We still doing our job according to the schedule looking affirmative”
(interviewed in May, 2020)
According to Parker and Skit more (2003), top performing females have productivity
rates are 2.5 times those of their work counter parts, a fact that they point out to the
demands of objectives of work study however, there are also empirical evidences that
provide a controversial result as far as work factors are concerned.
There is significantly positive relationship between method study and productivity.
Therefore, there is weak work experience and negative relationship between experience
moderate relationship and productivity (r=--0.9842, p=.000), Thus the result supports the
hypothesis, that stats work experience relationship is negatively related to productivity
for employees at Walia steel industry. The correlation of p=0.000, p<0.01 also indicates
work experience relationship has strong positive relationship with method study at
significant level of 0.01. In addition, industries that have more method study can be leave
the current organization since they have more opportunity to gain better work and
working condition to productivity.
Their relationship between ergonomics in workplace and productivity of Walia steel
industry is positive. Since there is strong and negative relationship between working
environment and productivity of Walia steel industry (r=0.9731 p=.000), the correlation
of p=0.000, p<0.01 also indicates that ergonomics in workplace has significant
relationship with productivity of Walia steel industry at significant level of 0.01.
Ergonomics in workplace shows also has great influence on employees‟ turnover.
Industries have ergonomics in workplace, better productivity situation of productivity of
Walia steel industry.
The relationship between work overload and work environment and productivity of
Walia steel industry significantly perfect positive, therefore, there is strong and positive
relationship between job fit (person–job-fit) and productivity of Walia steel industry (r=
0.9832, p=.000), Thus the result supports for hypothesis states that job fit work overload
and work environment is positively related to productivity of Walia steel industry. The
correlation of p=0.000, p<0.00 also indicates that work overload and work environment
has significant relationship with productivity of Walia steel industry at significant level of
0.001. Besides, employees more qualified in their professionalism tend to the Walia steel
industry because they have more opportunity to gain better work than employees who
have less qualification regarding to work overload and work environment.
4.5.2. Relationship between Line Balancing and Predictors
In this section, correlation analysis between productivity and its predictors is conducted in
the light of each research objectives and hypotheses developed.
Table 4.12 Correlation matrix between line balancing and its predictors (obs)
Table 4.12: Correlation matrix between line balancing and its predictors
(obs=110)
Variable Productivity ~ Balance delay ~smoothness ~Line efficiency
Productivity 1.0000
Balance delay -0.7150 1.0000
Smoothness 0.9904 -0.0427 1.0000
Line efficacy 0.9280 -0.0957 0.9080 1.0000
**. Correlation is significant at the 0.01 level (1-tailed).
*. Correlation is significant at the 0.05 level (1-tailed).
Source: Own survey data, 2020.
From above Table 4.12: Correlation matrix between line balancing and its predictors
(obs=110) between balance delay, smoothness, line efficacy explaining which their
a significant correlation existed between balance delay and productivity (r=-0.7150,
p<0.01). This implies that increase or decrease in balance delay is associated with similar
change in productivity delay to higher level from Walia steel industry.
Likewise, smoothness has found a significant and positive relation with productivity
delay to higher level from Walia steel industry (r=0.9904, p<0.01) which is one can
observe that having smoothness have positive influence on productivity to higher level
from Walia steel industry.
The correlation of line efficacy with productivity of steel Industry has (r=0.9280, p<0.01)
which has positive and significant relation with to productivity is higher level from Walia
steel industry.
According to Zhao and Zhou (2008), organizations can manipulate the line efficacy, send
signals of stagnant career advancement at the ceiling position, and push less line efficacy.
The findings of the study revealed that if line balancing withdrew productivity packages
like better of its peer group relationship it will have serious repercussions on Walia steel
industry performance be better.
4.6. Test Result for Linear Regression Model Assumptions Predicted
Determinates Productivity of Steel Industry
Multiple liner regression analysis was employed on constructive statistical technique that
can be used to analyze the association between a single dependent and several
independent variables. One of the vital considerations in multiple regression is the sample
size of the data.
Table 4.13 Test result for linear Regression Model Assumptions predicted
Determinates of productivity of steel industry
Source | SS df MS Number of obs = 10*110
-------------+------------------------------ F( 7, 180) =12638.75
Model | 16207.7889 7 2315.39841 Prob > F = 0.0000
Residual | 32.9757178 180 .183198432 R-squared = 0.9980
-------------+------------------------------ Adj R-squared = 0.9979

Total | 16240.7646 187 86.8490086 Root MSE = .42802
Productivity Coef. Std. Err. t P>|t| [95% Conf. Interval]

Work method
Objectives of work study .368774 .0355916 10.36 0.000 .2985435 .4390044
Method study 1.143984 .1029995 11.11 0.000 .9407425 1.347226
Ergonomics-in .6862601 .0513284 13.37 0.000 .5849773 .7875429

workplace
Work overload and work -.4073102 .0998549 -4.08 0.000 -.604347 -.2102735
environment
Line balancing
Balance delay -.0245974 .0102492 -2.38 0.001 -.0348214 -.0143734
Smoothness index 1.474182 .0523316 28.17 0.000 1.370919 1.577444
Line efficiency -.1021941 .0336844 -3.03 0.003 -.1686611 -.035727
_cons -.7598385 .262382 -2.90 0.004 -1.277579 -.2420983
NB: no multicollinearity problem has been predicted!!
Source: own survey data, 2020.
In this study, a multiple regression analysis was conducted to test relationship among
variables i.e. dependent and independent variables. The analysis was done to establish how
the specific between of objectives of work study, method study, ergonomics-in workplace,
work overload and work environment and explanatory variable balance delay, smoothness
index, line efficiency relationship and productivity of Walia steel industry.
A regression analysis results are presented in model summary table 4.13, the result as shown
in the model summary indicates; objectives of work study, method study, ergonomics-in
workplace, work overload and work environment, balance delay, smoothness index, line
efficiency relationship have been explained (99.8 %) of change in and productivity of Walia
steel industry.
By the way, the “adjusted R²” is intended to “control for” overestimates of the population R²
= 0.998 resulting from enough samples Hutcheson, (2011), with no collinearity or small
subject/variable ratios during study target response (Objectives of work study, method study,
ergonomics-in workplace, work overload and work environment, balance delay, smoothness
index, line efficiency) enough to explain lonely without other variable is need supported by
Daniel (2014) remarked that perceived that our current variable discrepancy shows a
prominently across research areas and time which means no need other independent variable
to predict dependent variable.
From above table 4.13 regarding to coefficient of determination explains the extent to which
changes in the dependent variable can be explained by the change in the independent
variables or the percentage of variation in the dependent variable (and productivity of Walia
steel industry. α=constant) that is explained by all the four independent variables (objectives
of work study, method study, ergonomics-in workplace, work overload and work
environment, balance delay, smoothness index and line efficiency).
The F-ratio found in the Analysis of Variance from table 4.13 above F- measures the
probability of chance departure from a straight line which is the significance value is 0.00
which is less than 0.05 thus the model is statistically significance in predicting: -independent
variable group relationship found stronger determining factor of in and productivity of Walia
steel industry.
Finally, regarding to the F critical, it was found that confirmed at 5% level of significance
was 0.00. Since F calculated is greater than the F critical F (7, 180) =12638.75) this shows
that the overall model was significantly fitted.
4.7 Discussions
4.7.1. The influence of Working Method and Line Balancing on the Productivity of
Walia steel industry
From study result multiple regressions analysis coefficient result indicating the influence
of objectives of work study to on the productivity of Walia steel industry was found that
in the likely (coefficient of 0.368774) at P-value of 5% of significance level.
The study found that the Influence of objectives of work study i.e. Scientific and
controlled analysis of available methods for executing a task, measuring performance of
the qualified workers, both mentally and physically, optimum utilization of workers,
plant, machinery, and other resources which is improved productivity and enhanced
worker mood and an increasing adeptness of the organization has 36.8% positive impact
to the productivity of Walia steel industry.
Work study employs both method study and work measurement to comprehend the
overall human work potential in terms of time spent on completing a task. These
procedures help to identify ways to make the task simpler and easy, which consequently
increase productivity and efficiency (Prasad et, al., 2013). Work study is field helps to
improve job performance, optimum usage of plant and machinery, standardization of
work methods, etc.
Therefore, the following are the objectives of work study productivity can be increased
over a period of time if workers are efficient and are focused. Therefore, the following are
the advantages of work study developed by Prasad et, al.,2013 indicated that it Increase
in production efficiency, higher levels of production and optimum utilization of
resources, efficient flow of material and products, efficient handling of material and better
layout, decreased cost of production, because time spent on the job is decreased,
increased morale of workers with an increase in safety and efficiency which is benchmark
and standard performance levels are established, thus providing targets for organization
and better job satisfaction and incentive planning due to work study.
From study result multiple regressions analysis coefficient result indicating the Influence
of method study to on the productivity of Walia steel industry was found that in the likely
(coefficient of 1.1439) at P-value of 5% of significance level. Method study found
guarantees 1.14% an increase in overall productivity and contributions to the scientific
process for enhancing on the productivity of Walia steel industry.
It analyzes the existing procedures and proposes job processes for improved efficiency
(Rachmad, 2014). In addition, the method helps to identify appropriate areas that need
improvement for efficient and cost-effective operations. The influence of method study
need to an organization usually take part into planning, controlling and measuring
parameters related to the performance of the sectors. Management systems are also
contributing in order to planning, controlling and measuring parameters related to the
performance of the sectors.
Companies mostly realize that the performance depends on how well the production line
in term of output. Process layout, product layout and fixed-position layout are basics
types of layout. Product layout is defined as flow-shop layout where number of machine
and work processes are arranged so that the products will pass through several
workstations (Prasad, et al, 2013).
Therefore, the method study, to study existing work process and propose improved
methodologies, to identify new methods for increased production and reduction of cost
and it was found running to achieve optimum utilization of resources.
of ergonomics in workplace to on the productivity of Walia steel industry was found that
Ergonomics was found 68.6% enhancing the productivity of Walia steel industry due to
design an environment (layout, work methods, equipment, noise, etc.) which is found
positively well-matched with each individual‟s physical and behavioral characteristics.
This shows Walia steel industries might have the scientific discipline concerned with the
understanding of interactions among humans and other elements of a system, and the
profession that applies theory, principles, data and methods to design in order to optimize
human well-being and overall system performance.
A publication by the health and safety executive (HSE), UK in 2003: “ergonomics at
work” considers the physical and mental capabilities and limits of the worker as he or she
interacts with tools, equipment, work methods, tasks and the working environment was
found positive in most europium manufacturing companies. This further postulates that
the application of ergonomics to workplace improves health and safety by: reducing the
potential for accidents, reducing the potential for injury and ill health and improves
performance and productivity.
As a result, various branches or concepts of ergonomics have evolved and developed over
the years. A well designed workstation is important for preventing diseases related to
poor working conditions, as well as for ensuring that work is productive (Vinza and
Trijoko, 2016). Every workstation should be designed with both the worker and the task
in mind so that work can be performed comfortably, smoothly and efficiently.
If the workstation is properly designed, the worker should be able to maintain a correct
and comfortable body posture which is Walia steel industry might have 68.6% important
comfortable work posture can cause a variety of problems, such as: back injury,
development or aggravation of RSIs and circulatory problems in the legs.
of Work overload and work environment to on the productivity of Walia steel industry
was found that in the likely (coefficient of -0.4073102) at P-value of 5% of significance
level. Work overload and work environment found 40.7% risky which also impacts on
performance environmental factors are source of motivation by employees as pointed out
by Walia steel industry.
In studying the impact of working environment and work load has great 40.7% negatively
impact on job performance and level of Walia steel industry productivity can be
decreased from 5 to 15 percent because of un-improving working conditions.
Work place level also impacts on employee‟s stress as according to Vischer (2006) that a
good working environment will lead to better fit between work space and employees and
results in improving behavior and stress related emotions.
In describing factors constituting a healthy working environment, Goudswaard (2012)
highlighted work life balance, motivation level psychological conditions, social dialogue,
management and leadership coherence, transparency develop a good working
environment and a good working environment leads to increase organization productivity
and the behavior components of working environment have more impact than the
physical components of working environment and in the environment where level of
interaction is high, supports creativity and transfer of transactional knowledge.
The study indicated that a working environment in an organization increases level of job
satisfaction that ultimately leads to achievement of organization goals found that the
factors like compensation, rewards, job security and working environment increase level
of commitment and sense of belonging with the Walia steel industry.
From study result multiple regressions analysis coefficient result indicating the Influence
of balanced delay to on the productivity of Walia steel industry was found that in the
likely (coefficient of -0.0245974) at P-value of 5% of significance level. The influence of
balanced delay is found 3.4% decreasing the productivity of Walia Steel Industry
compare the actual performance of the operator with his/her mental concept of normal
performance.
Finally, the study direction to rate there must be a defined level of performance to
compare with, an „average‟ level which is Walia steel industry balance delay the
numerical value used to check denote the 3.4% negative rate of working.
In order to rate there must be a defined level of performance to compare with, an
„average‟ level. Rating is a subjective comparison of any condition or activity to a
benchmark, based upon our experience. While the mechanics of time study record the
time a task did take, applying a rating will determine the time a task should take.
The rating corresponding to the average rate at which an operator will naturally work at a
job, provided they know and adhere to the specified method, and provided they are
motivated to apply themselves to their work (Tesfaye, 2019).
of line efficiency to on the productivity of Walia steel industry was found that in the
likely (coefficient of -0.1021941) at P-value of 5% of significance level. The line
efficiency is found an important measure of a company‟s performance which 10.2% more
likely to decrease the productivity, which Walia steel industry achieves by minimizing the
number of units, produced in a given time frame. So as to this, line efficiency requires the
maximization of costs and the minimization profits for a given level of output. Therefore,
it needs to enable line efficiency, a business to make the best possible use of the
company‟s resource. For example, an efficient company will produce a greater number of
quality products, with less waste, using less energy and other resources during a given
period than an inefficient company standard output rate is a worker‟s normal rate of
performance or the volume of worker a trained employee can produce per unit of time
using a prescribed method and with the usual effort and skill. As production efficiency
increase, production costs go down. The operations strategy, technology, job design and
process influence the rate of output as does worker‟s skill and effort (Bruce, 1992).
The factors affecting industry productivity are inter-related work method task to evaluate
the influence of each individual factor on the overall productivity of industrial units. Line
balance found plays an important part to influence the industrial productivity and
application of motive power and mechanical improvements to the process of production
has accelerated the peace of industrialization to an unprecedented degree, and has given
us the vision of the vast and unexplored frontiers that still lie ahead of us in the realm of
applied science and technology.
The delay line and line efficiency include degree of mechanization, technical know-how,
product design, etc. found negatively improving in any of the technological factors will
contribute towards the increase in industrial productivity of Walia steel industry
productions. In Walia steel industry, application of mechanical power, introduction of
semi-automatic and automatic machines, improvements in the production processes,
better morale and productivity integration of production processes and higher degree of
specialization have contributed a lot towards the increases in industrial productivity.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATION
5.1. Summary of the Findings
balancing on the productivity of Walia steel industry. Working method and line balancing
matrix of Walia steel industry found correlated in fixed at a suitable conveyor speed,
while dynamic parameters are the number of operators and variety of products. Thus, the
suitable number of operators with estimated outputs is obtained.
Wok Method Walia Steel Industry

According to the descriptive statistic‟s shows that line rebalancing was conducted by
comparing to the output data set collected from the developed matrix can be applied to
the industry with Walia steel industry, especially in operation planning to enable
continuous movement of powder coating conveyor, which could avoid product poor
quality issue such as product over-cured and uneven of coating thickness. For future
research, more configurations of powder coating conveyor
Line Balancing In Walia Steel Industry

Result regarding to, simulated best fit configurations of man-machine-product in steel
coating line (with dynamic conveyor speed), the matrix is constructed based on
simulation of steel making process. To obtain the simulation results, different
configuration of trial runs was tested and synthesized in order to obtain the best
synchronization between man-machine-products of the conveyor speed configurations are
to avoid stoppage issue in powder coating line were constructed based on eight operation
hours per shift were same as the real working hours. For dynamic conveyor speed also
shows during study, three types of products were tested and analyzed, then regarding to
small size product basic (e.g. base plate, bracing bar, supporting bar), the suggested best
configuration of man-machine-product is 0.5 hanger distance to hang the product, while
two labors are needed at loading and unloading area which could result in a total output of
434 pieces‟ product. As for the medium size product such as shelving and slim beam, the
suggested best configuration for conveyor speed 1.5 meter per minute is use of two labors
at loading and unloading area. The estimated output per hour for this setting is 337 pieces
of powder coated product. Similarly for large sized product such as structured steel,
standard beam. For conveyor speed at 1.0 meter per minute, the suggested number of
manpower at product loading and unloading area is three persons due to heavier weight
product. The estimated output per hour is 228 pieces. Moreover, the for fixed conveyor
speed scenario of the speed of iron sheet conveyor is fixed at 1.3 meters per minute for
three different types of product. For small sized product, two labors are needed at loading
and unloading area with an estimated output of 1176 pieces of steel sheet. As for medium
sized product, the optimum numbers of labor to be placed at loading and unloading area
are three labors which could contribute to 153 pieces of outputs. Lastly, four labors are
suggested at loading the unloading area for big sized product in order to avoid line
stoppage due to unsynchronized speed between human and machine and the total 196
pieces‟ output are simulated based on this configuration. Result regarding to the Walia
steel industry performance comparison, it can be seen that the decrease in the number of
work centers from the previous 7 work centers to 6 indicates if this revision is applied in
the factory then the path with 6 work stations is more efficient and the delay time or idle
is smaller. The value of the line efficiency at the proposed condition is 84.86% from the
previous condition that is 72.73% which means the decrease of material accumulation
between the work stations. Balance delay from the previous 27.26% to 15.14%, which
means reduced idle time caused by poor allocation between the work stations and the
smoothness index to 49.93 from the previous 89.52 which means the relative waiting time
decrease from a production line.
Work Method and Line Balancing On Productivity of Walia Steel Industry
Scientific and controlled analysis of available methods for executing a task, measuring
performance of the qualified workers, both mentally and physically, optimum utilization
of workers, plant, machinery, and other resources which is improved productivity and
enhanced worker mood and an increasing adeptness was found 36.8% positive impact to
Similarly, study result multiple regressions analysis coefficient result indicating the
Influence of Method study to on the productivity of Walia steel industry was found that in
the likely (coefficient of 1.1439) at P-value of 5% of significance level. Finally, method
study found guarantees 1.14% an increase in overall productivity and contributions to the
scientific process for enhancing on the productivity of Walia steel industry. Moreover,
result multiple regressions analysis coefficient result indicating the influence of
ergonomics in workplace to on the productivity of Walia steel industry was found that in
the likely (coefficient of 0.6862601) at P-value of 5% of significance level. Ergonomics
was found 68.6% enhancing the productivity of Walia steel industry due to design an
environment (layout, work methods, equipment, noise, etc.) which is found positively
well-matched with each individual‟s physical and behavioral characteristics is more likely
accepted by respondents in good designed seating, standing for long periods, reaching too
far and inadequate lighting forcing the worker to get too close to the work.
From study result multiple regressions analysis work overload and work environment
found 40.7% risky which also impacts on performance environmental factors are source
of motivation by employees as pointed out by Walia steel industry. In other hand, result
multiple regressions analysis coefficient result indicating the influence of balanced delay
to on the productivity of Walia steel industry was found that in the likely (coefficient of -
0.0245974) at P-value of 5% of significance level. The influence of balanced delay is
found 3.4% decreasing the productivity of Walia steel industry compare the actual
performance of the operator with his/her mental concept of normal performance which is
the study direction to rate there must be a defined level of performance to compare with,
an „average‟ level which is Walia steel industry balance delay the numerical value used to
check denote the negative rate of working. The line efficiency is found an important
measure of a company‟s performance which 10.2% more likely to decrease the
productivity, which Walia steel industry achieves by minimizing the number of units,
produced in a given time frame. So as to this, line efficiency requires the maximization of
costs and the minimization profits for a given level of output.
5.2. Conclusion
balancing on the productivity of Walia steel industry. Working method and line balancing
matrix of Walia steel industry found correlated in fixed at a suitable conveyor speed,
while dynamic parameters are the number of operators and variety of products. Thus, the
suitable numbers of operators with estimated outputs are obtained.
Descriptive statistic‟s shows that line rebalancing was conducted by comparing to the
output data set collected from the developed matrix can be applied to the industry with
Walia steel industry, especially in operation planning to enable continuous movement of
powder coating conveyor, which could avoid product poor quality issue such as product
over-cured and uneven of coating thickness. For future research, more configurations of
powder coating conveyor
scientific and controlled analysis of available methods for executing a task, measuring
performance of the qualified workers, both mentally and physically, optimum utilization
of workers, plant, machinery, and other resources which is improved productivity and
enhanced worker mood and an increasing adeptness was found 36.8% positive impact to
Similarly, study result multiple regressions analysis coefficient result indicating the
influence of method study to on the productivity of Walia steel industry was found that in
the likely (coefficient of 1.1439) at P-value of 5% of significance level. Finally, method
study found guarantees 1.14% an increase in overall productivity and contributions to the
scientific process for enhancing on the productivity of Walia steel industry.
Moreover, result multiple regressions analysis coefficient result indicating the influence
of ergonomics in workplace to on the productivity of Walia steel industry was found that
Ergonomics was found 68.6% enhancing the productivity of Walia steel industry due to
design an environment (layout, work methods, equipment, noise, etc.) which is found
positively well-matched with each individual‟s physical and behavioral characteristics is
more likely accepted by respondents in good designed seating, standing for long periods,
reaching too far and inadequate lighting forcing the worker to get too close to the work.
of work overload and work environment to on the productivity of Walia steel industry
was found that in the likely (coefficient of -0.4073102) at P-value of 5% of significance
level. Work overload and work environment found 40.7% risky which also impacts on
performance environmental factors are source of motivation by employees as pointed out
by Walia steel industry.
In other hand, result multiple regressions analysis coefficient result indicating the
influence of balanced delay to on the productivity of Walia steel industry was found that
in the likely (coefficient of -0.0245974) at P-value of 5% of significance level. the
influence of balanced delay is found 3.4% decreasing the productivity of Walia steel
industry compare the actual performance of the operator with his/her mental concept of
normal performance which is the study direction to rate there must be a defined level of
performance to compare with, an „average‟ level which is Walia steel industry balance
delay the numerical value used to check denote the negative rate of working. From study
result multiple regressions analysis coefficient result indicating the Influence of line
efficiency to on the productivity of Walia steel industry was found that in the likely
(coefficient of -0.1021941) at P-value of 5% of significance level. The line efficiency is
found an important measure of a company‟s performance which 10.2% more likely to
decrease the productivity, which Walia steel industry achieves by minimizing the number
of units, produced in a given time frame. So as to this, line efficiency requires the
maximization of costs and the minimization profits for a given level of output.
Finally, identifying productivity factors are work overload and work environment, line
balancing, balance delay and line efficiency found the main negatively influential element
for productivity improvement which factors negatively boost process, control, product
and resources. In other hand, line efficacy was found negative process factors which are
lead times, bottlenecks, material flow, volumes, losses layout, cycle times transport etc.
while factors related to control are purchasing, overproduction, total quality, location, etc.
Factors related to objectives of work study, ergonomics-in workplace and Smoothness
index positively influential to productivity of Walia steel industry includes national
infrastructure, trade policies, good governance, political stability, demand inflation,
national systems of governance.
5.3. Recommendations
Researcher put the following measure to be taking from study finding:

 Regarding to working method which is working load and working environment was
affecting negatively the productivity of steel industry. Walia steel industry should
fulfill the employment reward system including better payment, shifting time, safe
work environment in the area. Because working environment should be better in order
to increase the production level of steel profile.
 The managers should have conceptual, human relations and technical skills in order to
increases the productivity of Walia steel industry main productivity of steel profile in
context of Addis Ababa locations to customer.
 In other hand, there is agentive impact was found which line of delay rewarding
decrements of productivity in the walia steel industry need to evaluate the malefaction
system during power interruptions and maintenance regulations impact segment.
 As of line balancing efficacy of the steel profiling machine was found negatively
enhancing the productivity of steel industries which is more likely need to improve
the older machine by substituting with new spare or all over new machine if
necessarily approved.
Finally, professional managers required to make better use of the new technological
development in order to enhance better work method and line balancing in walia steel
Industry. Since the modern manufacturing industries are run on a large scale, the
managers must possess imagination, judgment and willingness to take imitative in order
to upraise the productivity of steel profile. Walia manufacturing steel industry hired
managers should be devoted towards their profession of fixing machine circulations
interruptions and they should understand their social responsibilities towards the work
related environment and stress to be able to essential if the managers want to manage
their industry manage effectively.
5.4. Future work
Understanding the possible benefits of the study, the research in the future can go further
to conduct as demonstrated in impact of the work method and line balancing on the
productivity of the industry there different causes which are not addressed in this research
so addressing others cause such more configurations of powder coating conveyor and
analysis of TQM etc. are future activities.
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Appendix
Survey Questionnaire
Federal Technical and Vocational Education and Training

Institute (FTVETI) School of Graduate Studies
Faculty of Mechanical Technology, Manufacturing Technology Department
Survey Questionnaire for Walia Steel Industry PLC
Set by: Kidane Gemeda
Mobile: +251-913277810/0917373905 E-mails: Kidanegemeda12@gmail.com
Advisor: Dr. Belete Sirahbizu (Assistant Professor in Materials & Manufacturing Engineering)
FTVETI - Phone: 0118548874 Fax: 0116465675 Post No: 190310
________________________________________________________________________
I am a post graduate student at Federal Technical and Vocational Education and

Training Institute, Department of Manufacturing Technology; at present I am
conducting my master‟s thesis research in Walia Steel Industry, My research title is
“Study the Impact of Work Method and Line Balancing on the Productivity of Steel
Industry” (Case on Walia Steel Industry PLC) .The main objective of the questionnaire
is to examine the impact of work method and line balancing on the productivity of Walia
Steel Industry PLC.
I would like to express my gratitude and appreciate for your support to complete the
attached questionnaire or direct it other person in charge with this responsibility.
Moreover, your response is very crucial to the success of the survey. All information will
be treated in the highest confidential and the respondents name (optional information) will
not be revealed. For further information, you can contact using the above –mentioned
address.
Thank you for your committed cooperation, time and consideration!!!
Appendix I
Part One: Demographics of Respondents
1. Department ___________________________
2. Position____________________________
Please circle or underline for the below questionaries‟
1. Gender:
a) Male
b) Female
2. Age
a) Age: 21 – 25 years
b) 26 – 30 years
c) 31 – 35 years
d) 36 – 40 years
e) 41 – above years
3. Marital Status
a) Single
b) Married
c) Divorced
4. Level of Education:
a) Diploma(TVET Graduate)
b) Bachelor degree
c) Master degree
d) Others, please specify ____________
5. How many years have you spent in Walia Steel Industry?
Service in years
a) 1 – 5 years
b) 6 – 10 years
c) 11 – 15 years
d) 16 – 20
e) Above 20 years
6. Have you received the training on work method and line balance related issues since
you occupied your present post related to the tasks you are expected to perform?
a. Yes, very much
b. Yes, but only somewhat
c. No, not related
d. No training received
7. Since you have occupied your present post, have you tried to obtain another post?
a) Yes, a post within the same office of in Walia steel industry

b) Yes, a post within in Walia Steel Industry
c) Yes, a post outside of in Walia Steel Industry No
8. Please indicate the most difficult challenges you face to in Work method, line
balancing and productivity Walia steel industry (more than one answer is possible):
a. Lack of coordination
b. Lack of guidelines
c. Lack of reliable data
d. Lack of knowledge maintenance and operational skill
e. Lack of familiarity of tasks balancing the production line, or any assembly

line
f. Lack of adequate resources (computers, paper, etc.)
g. workload across all processes in a cell or value stream and availability of

bottlenecks and excess capacity
h. Lack of job security
i. Lack of time (work overload)
j. Others: ___________________________
Part two: Working Method in Walia Steel Industry
For each statement, there are 5 alternative responses. Please tick according to the code
provided below for the indicators below: 5= Strongly Agree, 4= Agree, 3= Neither agree
nor Disagree, 2= Disagree, 1= Strongly Disagree.
Objectives of work study 1 2 3 4 5

1. Scientific and controlled analysis of available methods for
executing a task.
2. There is measuring performance of the qualified workers, both
mentally and physically, which help in establishing standards
for performance measurement Walia steel industry
3. Optimum utilization of workers, plant, machinery, and other
resources.
4. Walia steel industry improved productivity and enhanced
worker mood.
5. There is an increasing adeptness of the organization.
Method study
1. To study existing work process and propose improved
methodologies.
2. To identify new methods for increased production and
reduction of cost.
3. To achieve optimum utilization of resources.
4. Development of the most practical, economic, and effective
method.
5. Maintenance of new method and checking of its practices
Ergonomics in workplace
1. This is Good ergonomic design makes the most efficient use of
worker capabilities while ensuring that job demands to not
exceed those capabilities
2. Walia steel industry ergonomics to workplace improves health
and safety by: reducing the potential for accidents, reducing
the potential for injury and ill health and improves
performance and productivity.
3. Walia steel industry has well designed workstation which is
important for preventing diseases related to poor working
conditions, as well as for ensuring that work is productive.
4. Every workstation designed with both the worker and the task
in mind enabling work performed comfortably, smoothly and
efficiently.
Work overload and work environment
1. There is work overload happens when an individual experience

the lacking of resources, including time and energy, needed to
meet the demands of all roles.
2. when products with rich content are introduced successively
into a stations or assembly line, work overload can occur and
work on products can be left unfinished due to the limited
spare-time window for worker
3. when work overload is occurred the employees has to rush to
finish his/her task on time, the risk of quality product or
defects, accidents due to fatigue or health problems due to bad
postures, etc. increased.
4. The use of strengthening operators to handle the work
overloads is expensive in our company.
5. Work overload affects the employees‟ performance and the

associates of the work overload also affect the outcomes of the
employees.
If you have some, please!!!
………………………………………………………………………………………………
…………………………………………………………………………………………….
Thank you For Your Valuable Information!!!
Appendix II
Interview Questions
Federal Technical and Vocational Education and Training

Institute (FTVETI) School of Graduate Studies
Faculty of Mechanical Technology Manufacturing Technology Department
Thesis Title: Study Impact of Work Method and Line Balancing On the Productivity of
WSI
Set by: Kidane Gemeda [TEL- 0913277810, E-mail: Kidanegemeda12@gmail.com
Interview date: 25/05/2020 Time: 4:00-5:00 Am (Local time)
Name: Mr. Mesfin Walde Sex: M Position: Production Manager
Educational Level: General Mechanics (Diploma) Experience: 12 years
A. Questions for Company Managers (Production Manager)

1. How Many hours per shift your employees work?
2. As in your company ideology do you believe it on work method and Line balancing is
one impacts of productivity in your company?
3. What impacts is the most significant for your company‟s productivity) labour, capital.
Technology, machineries and energy, Lack of job performance, working structure)?
4. What are the major impacts of work method and line balancing activities in your
company?
5. Your companies employees are doing you satisfy in their jobs?
6. What activities are being done to make the company productive and the hence
competitive in local and the global market?
7. How would you describe your relationships with other workers?
8. What are the main factors that influence the employee‟s productivity?
9. Is there employees turn over from production section? Do you study problems of turn
over?
10. What kind of supports does the company need from the government to improve its
productivity?

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FEDERAL TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING

STUDY THE IMPACT OF WORK METHOD AND LINE BALANCING ON THE

A THESIS SUBMITED TO FEDERAL TECHNICAL AND VOCATIONAL

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF

ADVISOR: DR. BELETE SIRAHBIZU (ASSISTANT PROFESSOR)

STUDY THE IMPACT OF WORK METHOD AND LINE BALANCING ON THE

APPROVED BY EXAMINING BOARD

Name of advisor Signature Date

Name of Co-Advisor Signature Date

Name of examiner, internal Signature Date

Name of examiner, external Signature Date

Name of chairperson Signature Date

Keywords: Productivity, Impact, Work method, Line Balancing, Bottleneck

FTVETI August-2020 iii

Figure 1.1 Products of WSI, 2020 .................................................................................... 4

FTVETI August-2020 vii

FTVETI August-2020 viii

ALB– Assembly Line Balancing

1.3 Research Questions

1.4.1 General Objectives

1.4.2 Specific Objectives

The specific objectives of the study are: -

1.5. Significance of Study

1.7. Limitation of the Study

The researcher faces the following constraint and challenges:

Method study is the technique of systematic recording and critical examination of

Employee performance is defined as the outcome or contribution of employees to make

1.9. Organization of the Thesis

2.1.1 Global Analysis of Steel Industry

2.1.2 The Global Steel Market Outlook

2.1.3 Profile of Steel Industries

The purpose of this section is to make an overview of the characteristics of steel

Installed Working Capacity

3 Akaki basic metal Products 40,000 21,000 50

Source; (Tadiyos Derbe, 2018)

2.2.1 Work Study

2.2.2 Method Study

Figure 2.1 Work Study (Shantideo et al, 2018)

2.2.3 Ergonomics of Workplace

Ergonomics is used to design an environment (layout, work methods, equipment, noise,

2.2.4 Work Overload

2.2.5 Work Environment and Job satisfactions

2.2.6.1 Working Environment

Supervisor Employee Adequate

The Facility Layout Problem

2.2.6.2 Job Satisfaction

Working Environment Job Satisfaction

2.3 Overview of Line Balancing

2.3.1 Line Balancing

2.3.3. Dimensions of Work Line Balancing

Standardized Work: According to Boyer (2008) standardized work was opined to be a

2.3.5 Non-Value-Added Costs of Line Balancing

2.4.1 Productivity of a Manufacturing System

2.4.2 Productivity in the Steel Making Industry

2.4.3 Production Efficiency

Efficiency is an important measure of a company‟s performance. Unlike productivity,

2.4.4. Factors Influencing Productivity

2.4.5. Factors Influencing Industry Productivity

2.4.6. Manufacturing Sector On Economic Growth

2.5 Literature Gaps (Conclusion)

3.1. The Research Design

3.2. Research Approach

3.3.2. Sampling Size