Performance evaluation of Debre Birhan based plywood manufacturing company, North Shewa Zone, Ethiopia

Abstract

The demand for building wood material in Ethiopia is increasing at an alarming rate, resulting in increases in product prices. To overcome wood shortage, the Ethiopian government has opened an opportunity for foreign investors to establish different types of wood product factories in the country. However, the efficiency of these enterprises needs to be studied to find out any irregularities that need to be improved in the future for better performance of these companies. So the initiative was started from one of such plywood-based factories, Debre Birhan plywood processing company, with the objective to assess the operational performance of the company. A multi-stage sampling technique was used to select representative respondents. The data were collected through questionnaire surveys, interviews, observation records, and document reviews. Non-financial perspectives were explored using key indicators of operational performance associated with resource utilization, quality management, and operational practices. Data collected were analyzed using descriptive statistics of SPSS Version 20. Results show that Debre Birhan Wood Processing Company produces three categories of plywood (5-ply, 7-ply, and 9-ply) but lacks veneer thickness standards. The operational processes are categorized as log storage, debarking, bucking/trimming, peeling, green-clipping, drying, grading, gluing, panel layup, pressing, trimming, sanding, packaging, and processing activities. Performance indicates needs for improvement in quality management standards. The mean value of quality management criteria implementation using variable characteristics of logs such as log form, dimension, and defects were 3.26, which shows intermediate achievement. The average performance of the company's production capacity over the four years was 81.53%. It is recommended that the company use the available resources efficiently to grow in a competitive market and keep up with modern information.