JINKA POLYTECHNIC COLLEG

VALUE CHAIN ANALYSIS FOR MANUAL BRICK

MANUFACTURING MACHINE

PR.BY 1.GETIE MEKONNEN

2. YILKAL ABATE

MAY, 2014 E.C

JINKA, ETHIOPIA
ACKNOWLEDGMENT

First and foremost, we would like to thank the Almighty God for the peace, health and
strength given to us during this work and in our life. We would also like to express our
heartfelt appreciation and thanks to the SNNPR technical and vocational training
institution for the overall support, coordination and guidance during this study.

Moreover, we want to acknowledge Gurage zone, Siltie zone and Wolayita zone ofOMO
microfinance, and Trade and Industry department’s respondents in our schedule and for their
support to get the primary data by assigning professionals.

Additionally, we extend our gratitude Wolkite, Worabe and Sodo town in metal
manufacturing sectors of selected micro and small enterprises respondents for their
willingness to give data on the metal production process practices.

Lastly, we would like to thank our institutions Wolkitepolytechnic collage, Sodopolytechnic

collage and Worabe polytechnic college for their help in collecting the data and all the
technicians who helped us in handling relevant information in the data collecting process
of this study.

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ABSTRACT
This study was carried out in of south omo zone Jinka to assess manual brick
manufacturing machine value analysis in metal manufacturing sectors of selected micro
and small enterprises and actors that are found in selected town. Data collected 38
individual’s enterprises were involved in this study by simple random sampling
techniques and Three polytechnic college, Three Omo microfinance, Three Trade and
Industry department selected by censes sampling techniques; and Three metal product
suppliers and three metal product users household would be selected by purposive
sampling techniques would be selected from this study. The purpose of metal Value chain
study was to assess metal products fabrication and identify potential products within the
metal fabrication sectors which could be improvement capacities of MSE.The major
problems or constraints identified through interview and questionnaire during the study
are finishing of metal fabricating items, marketing and demand forecasting, material
requirement planning, identification of different production processes, product handling
and storage, and display and supply there by resulting in decline of the market. In order
to identify the root causes in the value chain of metal production, a number of related
literatures have been reviewed and customized bench mark has been mapped. For this
particular study, numerous value analysis methods have been applied. These are:
mapping the AS-IS value chain, mapping the bench mark value chain, identifying and
analyzing gaps/constraints, and analyzing cause and effect approach. Finally, the study
concludes that the bench mark has depicted a lot of gaps/constraints and categorized as
techno-ware, human-ware, info-ware, and orga-ware and recommended that the
MSE,government, actors and stake holders should play an important role in providing
necessary facilities, financial support and relevant knowledge and skill training in order
to help manufacturers remain competitive in an emerging metal fabricatingproduct and
contribute their share towards the country's economic, social and political development.

Key words: Value Chain, Metal product, Bench mark, AS-IS, Value mapping

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TABLE OF CONTENT

Contents page
Acronyms........................................................................................................................................vii

INTRODUCTION............................................................................................................................1

1.1 Background of the Study........................................................................................................1

1.2 Statement of the Problems......................................................................................................2

1.3 OBJECTIVE OF THE STUDY..............................................................................................3

1.3.1 General Objective............................................................................................................3

1.3.2 Specific objective.............................................................................................................3

1.4 Scope of the Study..................................................................................................................3

1.5. Significance of the study........................................................................................................4

1.6. Terminology...........................................................................................................................4

1.7. Organization of the Study......................................................................................................6

1.8. Beneficiaries..........................................................................................................................7

CHAPTER TWO..............................................................................................................................8

LITERATURE REVIEW.................................................................................................................8

2.1. Description of the Value Chain Concept...............................................................................8

2.2. Importance of Metal Products and Their Fabrication..........................................................10

2.2.1. Importance of metalwork..............................................................................................10

2.2.2. Importance of metal industries.....................................................................................11

2.3. Overview of Chinese metal production...............................................................................11

2.4. Overview of Ethiopia Metal Industries................................................................................12

2.5. Empirical Studies on Metal Works in Ethiopia...................................................................13

CHAPTER THREE........................................................................................................................14

METHODOLOGY.........................................................................................................................14

3.1. Description of the study area...............................................................................................14

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 3.2. Survey Team........................................................................................................................16

3.3. Value Chain Selection.........................................................................................................16

3.4. Target Population.................................................................................................................17

3.5. Sample Size Determination.................................................................................................18

3.5.1, Sample size and sampling techniques...........................................................................18

3.6. Data Collecting Tools and Methods....................................................................................18

3.7. Methods of Data Analysis....................................................................................................19

3.7.1. Descriptive methods.....................................................................................................20

3.7.2 Value chain mapping.....................................................................................................20

3.7.3. Drawing the Value Chain Map.....................................................................................23

3.7.4. Value Analysis..............................................................................................................24

3.7.5. Method of Comparative Analysis.................................................................................25

3.7.6. Gap analysis..................................................................................................................25

3.7.7. Tabulation and graphical representation of data...........................................................25

3.7.8. Cause and Effect Analysis............................................................................................26

CHAPTER 4...................................................................................................................................27

Result and Discussion.....................................................................................................................27

4.1 Descriptive Analysis.............................................................................................................27

4.2. Value Chain Mapping..........................................................................................................33

4.2.1. AS-IS practice...............................................................................................................35

4.2.2 TO-BE Value Chain Mapping (Bench Mark)................................................................36

4.3 Value Chain Analysis...........................................................................................................37

4.3.1 Value analysis of AS IS practice...................................................................................37

4.3.2 Value Chain Analysis....................................................................................................42

4.3.2. Value analysis of To-Be practice...............................................................................42

 Drawing your ideal supplier profile....................................................................................43

 Get information from other producers................................................................................43

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 4.3.3 Characteristics of Inputs and Supplies...........................................................................48

4.4 Identification of Gaps/Constraints........................................................................................53

4.6...............................................................................................................................................57

4.6.1 Technology Identification..............................................................................................57

4.6.2 Technology Categorization............................................................................................57

4.6.3 Technology Prioritization..............................................................................................63

4.7 Role of Actors and Stakeholders in metal production..........................................................65

4.7.1 Role of Actors................................................................................................................65

4.7.2 Role of value chain stakeholders...................................................................................65

CHAPTER FIVE............................................................................................................................67

CONCLUSION AND RECOMMENDATION..............................................................................67

5.1. Conclusion...........................................................................................................................67

5.2. Recommendations................................................................................................................69

REFERENCE:..............................................................................................................................70

Appendixes.....................................................................................................................................71

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ACRONYMS
Acronyms

BOM Bill of Materials

CAD Computer Aided Design

EDC Entrepreneurship Development Center

MFI Microfinance Institutions

MIG Metal Inert Gas

MPR Material Requirement Planning

MPS Master Production Scheduling

MSME Micro and Small and Medium Enterprises

NGO Nongovernmental Organizations

RHS Rectangular Hollow Section

SAT Science and Technology

SMAW Shielded Metal Arc Welding

SNNPR South Nation and Nationalities Peoples Region

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TIG Tungsten Inert Gas

TVET Technical and Vocational Education and Training

LIST OF TABLE
Table 3. 1 Survey Team Information..............................................................................................16
Table 3. 2 Value chain selection criteria.........................................................................................17

Table 4. 1Descriptive analysis for dummy variables......................................................................29

Table 4. 2 Raw materials availabilities...........................................................................................30
Table 4. 3 welding machine your work activities...........................................................................30
Table 4. 4 Most of your product provide to....................................................................................31
Table 4. 5 Comparative value Chain Analysis (Metal product).....................................................49
Table 4. 6 Cause and Effect Analysis.............................................................................................55
Table 4. 7 Identified Technologies for each value chains..............................................................60
Table 4. 8 Technology Categorization............................................................................................62
Table 4. 9 Parameters for Technology Prioritization......................................................................66
Table 4. 10 Degree of critical order for technology prioritization..................................................67

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LIST OF FIGURES

Figure 2. 1Porter’s (1985) representation of a value chain Source: Porter (1985)...........................8

Figure 3. 1Description of the Study Area.......................................................................................15

Figure 4. 1 Selling final products....................................................................................................31

Figure 4. 2 From where to get design to manufacturing the ordered product................................32
Figure 4. 3 Advertisement your manufactured product seal to your customers.............................32
Figure 4. 4 AS-IS Value Chain Map...............................................................................................35
Figure 4. 5 to be (Bench mark) Value chain Map..........................................................................36
Figure 4. 6 Identification of Gaps Value Chain..............................................................................53
Figure 4. 7 Cause and effect analysis............................................................................................56

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ix
CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The impacts of manufacturing sector on economic growth and development based on
approach Jinka town. Increase in the share of the manufacturing sector enables to
improve national economy to grow at a faster rate. This indicates that, improving
manufacturing sector increases the performance and competitiveness of the country.
Since, industry performances have positive impact on economic growth and
development.
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.

Metal product value chain is useful for technology capacities and new enterprises enter in
global as well as local market; Most of the time we observed that the finished metal
products are not produced with standard and it is deviated from the standard capabilities,
hence the manufactured metal product are most of the time was not competitive with
international market as well as local market. Hence the value chain of metal products in
selected city (Jinka, gazer and Webhamer) of south omo zone was vital because in study
area different types of metal products or items are produced and supplied by micro and
small enterprises to hotels, universities, factories, individuals, household and etc.
Therefore this study assess the metal product value chain analysis to identify the metal
fabrication gap on the metal product to assist in developing improved technological
capabilities, increase productivity and market share to benefit of SME, householder,
traders, and other participants.
Moreover metal value chain study was to identify the root problem or existing problem in
metal fabrication in the selected study area and increasingly recognized as a promising

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approach to address economic development, technology identification, job opportunity
and wide range of social and environmental development issues.

1.2 Statement of the Problems

The term value chain is used to characterize the set of interconnected and coordinated
links and linkages that take place as a product moves from the primary production unit to
the final consumer. As a product moves from the producer to the consumer, a number of
transformations and transactions take place along a chain of interrelated activities, and
value is added successively at each stage of the chain. Kaplinsky and Morris (2001)
define the value chain is the full range of a activities that are required to bring a product
from conception, through the intermediary stages of transformation, delivery to final
consumers, and final disposal after use.

The value chain development for metal products is essentially important since it is
manufacturing sector that can play an important role in economic growth and income
generation. The act that it has also include the production of agricultural products,
manufactured products of other sectors and has opened significant opportunists for the
development of our country. Manufacturing processes can be used on a variety of work
piece materials, from ductile metals to hard materials such as ceramics, glasses,
semiconductors, diamond and even additively-manufactured metals.

Value chain analysis is important in the metal fabrication process in the SNNPR in
general and in the study area particular for the growing division of labor and the global
dispersion of the production of components. Every enterprise who engaged in
manufacturing sector especially in metal production is extensively metal products or
items at each stage to decorate items, windows, tables legs, metal bed stair case and many
other metal fabrication products.

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 More over in the study area we observed that most of the enterprises engaged in metal
product fabrication use traditional approaches and do not care most about the value and
qualities of the product and has no technological capability.
They do not make a profit as well as change their living standard of the enterprises also
decreases the performance of credit repayment. In the study area we observed that most
of the metal product manufacturers make a big problem on designing, shaping,
assembling and finishing of metal products. Therefore this value chain study was to
identify the potential constraints which are associated with metal fabricating process in
the study area.

1.3 OBJECTIVE OF THE STUDY

1.3.1 General Objective

The general objective of this study is to assess the value chain analysis of metal product
fabrication in case of Jinka,Gazer and Webhamer cities of south omo zone

1.3.2 Specific objectives

 To assess the existing metal product fabricating process in the study area.
 To identify the root problems in metal product processing in the study area.
 To find bench mark for metal production value chain analysis.
 To select an appropriate technologies to solve the identified problems in metal fabrication
process.
 To assess the marketing linkage and supply problems among the producer and user of the
product in the study area

1.4 Scope of the Study

This metal value chain study focuses on identifying value chain analysis for metal
fabrication process in South omo zone. The MSE coverage of this study was limited to

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three towns such as Jinka, Gazer and Webhamer, keafer, Turim town in metal
manufacturing sectors of selected micro and small enterprises and actors that are found in
selected town. However, the study was focused only in metal product value chain
analysis in selected are a due to budgetary and time limitations.

1.5. Significance of the study

The significant of value chain analysis of metal production process helps to simplify and
identify gaps of technologies, increases efficiency, market share, productivity and
systemic competitiveness involvement between local sector and sub sector, reduces
production costs, improves profitability and customer satisfaction by providing quality
product and services.

Also the importance of this document is to create competitive developmental attitude to

those enterprises engaged in manufacturing sector especially metal manufacturing; it is
known that the role of manufacturing is very important to achieve the growth and
transformation plan. In addition to the above significance this value chain is intended to
participate all concerned bodies (stockholders) to their role in the document. Researchers
as well as manufacturer or designer who want further investigation on metal value chain
analysis for others process will use the result from this study.

1.6. Terminology

Value chain: an entire system of production, processing and marketing from inception to
the finished product. It is a full range of activities that are required to bring a product
(service) from conception through the different phases of production to delivery to final
consumers and disposal after use. It consists of a series of chain actors, linked together by
flows of products, finance, information and services. A value chain is a group of
companies working together to satisfy market demands.

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Value chain analysis: -an attempt to assess or estimate how competitive a selected
commodity or product is likely to be in a target market, even before it gets there.

Value chain mapping: the first step of the value chain is the so - called mapping. The
main idea is initially to identify the actors and then to „map‟ the traced product flows
within the chain including input supply, production, processing, and market activities.
The objective is to give an illustrative representation of the identified chain actors and the
related product activities/ flows. The Value Chain map is a simple tool, which visualizes
complex things we find in reality.

Supply chain: the physical flow of goods that is required for raw materials to be
transformed into finished products. Supply chain management is about making the chain
as efficient as possible.
Value chain actors: participants who determine the overall character of the chain those
become responsible for up grading possibilities, knowledge transfer, and interaction
coordination with in the value chain.

Main Chain: is a major activity of work flow in a chain in AS IS and TO BE.

Sub Chain:is a sub/support activity of work flow in a chain AS IS and TOBE.

‘AS IS’:is the actual sequence of activities in a chain in order to deliver a product or a
services to the market by an enterprises those are participated in metal fabrication in the
study area.

‘TO BE’: represents the benchmark or the standard, or a set of standards, used as a point
of reference for evaluating performance or level of quality of selected for metal work .

Finishing: - the final step in the manufacture of components which require the highest
quality in terms of form, accuracy and surface integrity.

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Metal product finishing: an operation of any metal work activities that adds
functionality to the work piece surface to enhance its quality characteristics.

Stakeholders: are those who support the value chain development.

Production: The manufacturing process, systems, and techniques which are

technologically acceptable, technically feasible, economically viable and eco-friendly
through achieving the value addition process in an effective and efficient manner.

Industry: The manufacturing or technical productive enterprises in a particular field.

Technology: is the practical means people using knowledge, tools, and systems to make
their lives easier and better and to improve their surroundings.
Techno-ware: (object embodied form) facilities that consist of tools, goods, products,
physical equipment’s, machinery physical process etc.

Human- ware: (human embodied form) the abilities of humans consists of

understanding, capacity for systematic application of knowledge, know how, human
capability, specialized ideas, skills, problem solving capacity etc.

Info-ware: (Document/Record embodied form) fact consists of knowledge about

physical relationships, scientific or other form of organized knowledge, principle of
physical and social phenomena, technical information, computer software etc.

Orga-ware: (institution embodied form) frameworks consisting of techniques,

organizational work assignment means for using and controlling factor of production,
organization of products, process, tools and devices for use by people.

1.7. Organization of the Study

Chapter one has enveloped introductions, statement of the problem, objectives, scope and
terminologies and significance of the study. The second chapter has intensely reviewed
the available literature by entailing general concepts of metal value chain and empirical
6
research results executed elsewhere. The third chapter has enveloped components of the
study methodology including description of the study area, types of data and its collection
method and method of data analysis; while the fourth chapter discerned the credential of
the survey results by discussing value chain mapping, value chain analysis, identification
of gap constraints, prioritizing the constraints, technology identification and categorized
it in comparison with the results of benchmark. Brief narrations of important findings of
the study are presented in chapter five.

1.8. Beneficiaries
The beneficiaries from this metal value chain would be
 Small and micro enterprises engaged in metal manufacturing production
 Hotels, Restaurants, government and non-government organization etc… those
who are used finished metal products.
 Tvet Colleges those are produced technology for micro and small enterprises
 Metal processing industries
 Universities
 Cooperatives
 Wholesalers & retailers who are participated in metal market participate

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CHAPTER TWO

LITERATURE REVIEW

2.1. Description of the Value Chain Concept

As a starting point, it is important to outline the value chain concept. According to

Michael Porter, a value chain "disaggregates a firm into its strategically relevant activities
in order to understand the behavior of costs and the existing and potential sources of
differentiation" (Porter 1985). This value chain allows us to diagnose the competitive
advantage of a firm or industry and to enhance this advantage by tailoring the value chain
(Porter 1985). Nevertheless, the value chain concept has evolved over the years since
Porter's definition. In the narrow meaning, a value chain includes the range of activities
performed by a firm to produce a certain output. It refers to the work by Porter (1985) on
competitive advantages. Porter (1985) utilized the framework of value chains to assess
how a firm should position itself in the market and in relation to suppliers, buyers, and
competitors.

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Figure 2. 1Porter’s (1985) representation of a value chain Source: Porter (1985)

The ‘broad’ approach to value chains looks at the complex range of activities
implemented by various actors (primary producers, processors, traders, service providers,
etc.) to deliver a raw material to retail of the final product. The ‘broad’ value chain starts
from the production system of the raw materials and moves along the linkages between
enterprises engaged in trading, assembling, processing, etc. This broad approach does not
only look at the activities implemented by a single enterprise. Rather, it includes all its
backward and forward linkages, up until the level at which the raw material produced is
linked to the final consumer. In a more contemporary sense, a ‘simple’ value chain could
be defined as the description of a full range of activities necessary to carry a product or
service from conception, through the various production stages (including physical
transformation and other producer services), distribution to the final consumer, and
removal after its use. Nonetheless, in real life applications, value chains tend to be more
complex, involving several producers, creating manifold links within the value chain.
Therefore it can appear that one value chain may be composed of several smaller value
chains (Kaplinsky and Morris 2001).

Value chain analysis examines the full range of activities required to bring a product or
service from its conception to its end use, actors that perform those activities along the
value chain and final consumers for the product or service, Vermilion et al. (2008). It
describes the activities the organization performs which links them with the activities
around an organization, and relates them to an analysis of the competitive strength of the
organization. Therefore, it analyses which value each particular activity adds to the
organizations products or services.Value chain was the full range of activities which are
required to bring a product or service from conception, through the different phases of
production delivery to final customers, and final disposal after use” (Kaplinsky and
Morris, 2000).

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2.2. Importance of Metal Products and Their Fabrication

We humans have been exploiting planet Earth’s metals since time immemorial. We may
not realize, but most of the things surrounding us are made of metals and the rest have
been manufactured using theses metals. Therefore, it is quite appropriate to say that metal
plays an utmost important role in the development of commercial as well as residential
sector. To exploit metals in the most valuable way, there is a need for proper fabricating
processes. Due to their usage at such a great extent, there is a huge metal fabrication
industry today. Metal fabrication has been known to make human’s life easy
significantly; it basically implies building metal structures with the help of cutting,
assembling and bending processes. Every industry manufacturing metal products thrives
to produce such fine quality products that display the highest tolerance levels. Such
industries usually deal in door and windows fabrication, manufacturing process of stairs,
designing of technologies, and a wide variety of other metal parts as well as equipment’s.

2.2.1. Importance of metalwork

Mankind is born with an instinctive desire to design and create things, not only for
practical purposes, but also for aesthetic value. Ancient cups and bowls reveal an interest
in design, and allow us to see some of the natural stages and progression of art. Seeing
this artistic development throughout history allows us to appreciate the ability of mankind
to develop the creative mind and translate that into tangible creations. This observation
helps us understand the importance of metalwork and how it plays a critical role in
anthropological studies.
Fortunately for us, certain metal handle the test of time quite well and maintain their
original brilliance for thousands of years. As metal work evolved to more design-centric
and decorative in nature, metal artists began to create statues, bracelets, necklaces and
other forms of gold and bronze decor discovered from various ancient civilizations.

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2.2.2. Importance ofmetal industries

Basic Metal Industries are industries engaged in production of metal from ore, scrap and
conversion of billet, slab etc., into primary metal products, while Engineering Industries
manufacture fabricated metal products. Franziska (2006) says there is competitiveness for
the company, industry and country. For the company, competitiveness is the ability to
provide products and services as or more effectively and efficiently than the relevant
competitors. In the traded sector, this means sustained success in international markets
without protection or subsidies. Although logistics costs might allow firms from a nation
to compete successfully in their home market or in adjacent markets, competitiveness
usually refers to advantage obtained through superior productivity.

Metal Fabrication is one of the oldest elemental skills known to man. Metal
Manufacturing Companies have played a very important role in human civilizations for
centuries. This can be learned by visiting any natural history museums. You can find its
evidence in the history around 8700 BC in the Middle East when metal jewelry was
found from underground. And in America, copper found to be heated and hammered
since 5000 BC. And it is the creation of metal structures by cutting, bending, and
assembling processes. It is a value-added process involving the creation of machines,
parts, and structures from various raw materials.

2.3. Overview of Chinese metal production

China’s manufacturing capabilities have developed rapidly over recent years and Chinese
value chains have become increasingly sophisticated. The Metals and Engineering
Industry (M&E Industry) plays an important role in the economic development of the
country. The industry, comprised of small, independent firms, cuts across various
industries and caters to different sectors. Although it remained small in size, contributing

11
a very small fraction in the country’s GDP, the industry has survived many
transformations and challenges in the country and in the entire Asia as well.

Throughout the transformation, the rise of the manufacturing sector in china has changed
the pace of the economic development of the country. Manufacturing opportunities
indirectly drive the small and medium industries. Changing global trends provide a
source for developing countries to join the value chain by filling gaps as players move up.
Bombarded with challenges that have been plaguing firms over the years, the M&E
industry remained standing, offering new opportunities as it grows or slows down
together with the manufacturing industry and global economy. It was on this backdrop
that a study was conducted to highlight the status of the industry.

2.4. Overview of Ethiopia Metal Industries

Over the years, the success of Ethiopian basic metals industries to achieve these
objectives was limited. The country has benefited little and turned out to be net drains on
its resources. However, in the last few years, the metal and engineering sector in Ethiopia
has been growing relatively good, following the consistent economic growth of the nation
(Asmamaw, 2010). Metal working is the process of working with metal to create
individual parts, assembling or large Scale structures. Modern metal working process
though diverse and specialized can be categorized as forming, cutting or joining process.
Today's machine shop includes a number of machine tools capable of creating a prices
useful workplace Metals are the manufacturing processes by which they are shaped into
products have been developed and refined metal fabrication process such as: - Casting,
Forging, Measuring, Cutting, Turning, Milling, Drilling Welding, Grinding, Bending, and
Assembling. Numerous post-processes fall under the general term “finishing” and
sometimes several of them are used to achieve the final component quality. Competitive
technology use, effective use of resources, management and institutional set up are,
however, required to make the products competent internationally as well as locally
(Girum, 2012).

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2.5. Empirical Studies on Metal Works in Ethiopia
There is a dearth of empirical work in Ethiopia on competitiveness of metal and metal
products industry. Few studies conducted so far focused on basic metal industries
entitled with technical efficiency of the industry sector, technology transfer as a vehicle
for industrial development case of basic metals and engineering industries and ownership,
management practices, upgrading, and productivity in the metalworking sector (Melaku,
2013). It used Stochastic Frontier Model to examine the technical efficiency and total
factor productivity (TFP) growth in the Ethiopian manufacturing sector over the period
1996–2009. The sector has shown better progress after 2001/2 and the growth is largely
explained by technical change which is a shift in production frontier.
Girum (2012) used longitudinal data to explore why foreign operated enterprises
performed better and whether the observed differences in enterprise performance were
due to differences in ownership or whether they can be explained by other confounders.
He found that foreign-owned enterprises were endowed with better quality managers. The
researcher proposed various solutions that would enable technology transfer to Basic
Metal Engineering Industries in particular and to the country at large. The proposed
solutions mainly focus on technology policy, technical development of institutions of
higher learning, practical-oriented science and technology education, coordinated
participation of the stakeholders, applied R&D, University-Industry linkage,
establishment of Basic Metals and Engineering Industries Technology Transfer and
Innovation Centre and Technology Incubation Centre. Gebremedhine (2009) in his paper
on “Competition regime: capacity building on competition policy in selected countries of
eastern and southern Africa” concluded that state-owned enterprises have been negatively
affecting trade, competition and competitiveness in the country.

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CHAPTER THREE

METHODOLOGY

3.1. Description of the study area

The study of metal product value chain analysis is undertaken in Weba ari, Debub
ari ,Hamer bena Wereda and Jinka city administration of South omo zoner of South
Nation Nationality and people Regional State. The selection of the Zones would be based
on their potential of metal manufacturing enterprises.

Data collection particularly focused on Questioners and focus group discussions at

Zone level from Jinka town selected. I started doing interviews, document collection
and observations in Southern Omo on favorer 10. In the first two days (favorer 10 -
11)interviewed officials and metal work enterprise in Jinka. The South Omo Cluster
includes parts of South Omo Zone1 in Southern Nations, Nationalities and Peoples
(SNNP) regional state of Ethiopia. It forms part of the bigger Karamoja Cluster of the
Intergovernmental Authority on Development (IGAD), and is predominantly inhabited
by agro pastoralists. The area of South Omo Zone amounts to 24,249 km2. The Zone
has eight Woredas and the Jinka town administration (the Zone Capital). Sixteen ethnic
groups are considered indigenous to the Zone, while a good number of Ethiopians from
other parts of the country also live there. According to the population projections for
2016/17 based on the population and housing census conducted in 2007 (Central
Statistical Agency, 2008), the Zone has a total population of 767,915 most of the
Zone’s Woredas are sparsely populated and most of the population lives in rural areas.
The densely populated Woredas are inhabited by the Ari and Maa.le ethnic groups.
This is explained by the settled form of agrarian livelihood followed by members of
these ethnic groups. The remaining five Woredas (Bena Tsemay, Dassenech, Hamer,
Nyangatom, and Salamago) are inhabited by ethnic groups practicing agro-pastoralism.
Rain-fed agriculture contributes significantly towards the annual consumption in the
Bena Tsemay Woreda. The same could be said for some parts of Hamer Woreda, in
higher altitude area near Dimeka, the Woreda capital. Flood retreat agriculture is

14
 practiced in the remaining Woredas in areas close to the Omo, Mago and Woyto Rivers
Population density figures do not necessarily reflect resource abundance. Dassenech
Woreda which is among the most resource strapped is the one with the highest
population density from the agro-pastoralist Wereda, while Salamago Wereda which
receives bimodal rain in some parts is the least dense.

3.2. Survey Team

The survey team was composed of experts from different institution and their educational
background was seen prior to the team formation process. Accordingly every team
member’s field of specialization and educational level is list in the table form as follows.

Table 3. 1Survey Team Information

N Name Field of Educational Organization Level of

o. specialization Level experience
1 Temesgen esias Manufacturing Postgraduate J/P/T/College > 10 years
2 Daniel desalegn Manufacturing B,Sc J/P/T/College >9years
3 Biruk Gehano Metal work J/P/T/College

3.3. Value Chain Selection

The manufacturing value chain is selected for analysis based on the selecting criteria set
by Jinka polytechnic college. Metal value chain the GTP-2 priority sectors were listed
among them the main economic activity in the case area was identified which is
manufacturing. In the study area metal product manufacturing importance for
employment creation, GDP share, market share, the share of export, growth potential,
market potential, product diversification, & women empowerment. Table 3.2 below
shows the growth and transformation plan (GTP) priority sectors from which the metal
product finishing value chain is selected.
The selection of products is made on the basis of an analysis of a set of specific criteria
mentioned above which is categorized in four specific areas: market and economics,

15
 environment and biodiversity, social and political aspects, and technology and
infrastructure.

የምርቶቹዓይነት/Metal value chain/products

ተ.ቁ መስፈርት/criteria Ceramic Polymer metal Composites

5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1

1 የእድገትናትራንስፎርሜሽንእቅድ / Size
X X X X
of Sub sector
2 የስራእድልመፍጠርመቻሉ X X X X

3 ሀገርውስጥያለውየምርትድርሻ / GDP
X X X X
Share
4 የገበያድርሻ / Market Share X X X X

5 የወጪምርትድርሻ
X X X X
/Share of Export
6 የማደግአቅም/Growth Potential X X X X

7 የገበያድርሻ /Market Potential X X X X

8 ሌሎች(የሰውኃይል, ቁስ, እውቀት,

የገንዘብአቅም, መሰረተልማት) factor X X X X

condition
9 የምርትማስፋት/ጭማሪ / Product
X X X X
Diversfication
10 በጥቃቅንናአነስተኛ፣በወጣቶችናወዘተየ
X X X X
ሚያመጣውለውጥ
11 ከአየርንብረትጋርተስማሚመሆንመቻሉ
X X X X
/ Conservation importance
12 የሴቶችንና አካልጉዳተኞችጠቃሚነት
X X X X
/ Women Empowerment

አጠቃላይ ውጤት/TOTAL RATING 36 28 43 29

Table 3. 2Value chain selection criteria

16
Based on above value chain selection criteria metal value chain analysis would be
selected.

3.4. Target Population

The target populations for this study were micro and small enterprises those are
participated in metal product fabrication in the study area are the main actors. Also metal
goods or product users or consumers, polytechnic college, metal product suppliers, OMO
microfinance, and Trade and Industry bureau are the target population for metal products
value chain analysis.

3.5. Sample Size Determination

3.5.1, Sample size and sampling techniques

Sampling and sample size are crucial issues in pieces of qualitative and quantitative value
metal chain analysis; which seek to make statistically based generalizations from the
study results to the population.

Each study area or town are selected by purposely and from each zonal town we would
select five enterprises (2small-scale and 3medium-scale enterprises) total fifteen (15)
enterprises are selected randomly from both small and medium level enterprises; hence a
total of 45 individual’s enterprises (6 individuals from small-scale and9individuals from
medium enterprises) were involved in this study by simple random sampling techniques.

Also Three (3) polytechnic collage, Three (3) Omomicrofinance, Three (3) Trade and
Industry bureau from each zone would be selected by censes sampling techniques; and
six(6) metal product suppliers and six (6) metal product users household would be
selected by purposive sampling techniques would be selected from study area

17
3.6. Data Collecting Tools and Methods

Both qualitative and quantity types of data would be used for metal value chain analysis
and primary and secondary sources of data would be collected. The source of primary
data would be collected from small and micro enterprises, users or consumers of the
metal product, polytechnic college, metal product suppliers, OMO microfinance, and
Trade and Industry bureau at zonal level.

In able to collect all the information needed for metal value chain analysis, a set of
gathering tools must be developed. A composition of qualitative and quantitative
questions to identify primary and support activities needed to do the mapping of the AS -
IS, which define as the existing activities and practices of product/service providers. A
variety of tools (questionnaires, interviews, literature reviews, observations FOG etc.) are
used to assist in the data gathering process.

Each type of tool provides alternative means to illustrate, explain and specify exactly
what must be delivered to meet the intended goals. The gathering tool should be covered
the name of the product and services selected, the background and information of the
selected enterprise, the inputs or initial resources to start an enterprise, the main chain or
the sequence of the main process and also the sub chain or the activities supporting the
main chain. The tool also includes the statement of the real problems and solutions
existing within the enterprise and finally the interventions given by the governmental and
non-governmental organizations.

Secondary data would be obtained from various sources such as reports of bureau of at
different levels, internets, published and unpublished materials’ previous value chain
analysis findings, which would be relevant to the study.

18
3.7. Methods of Data Analysis

Both qualitative & quantitative data collected through various methods were analyzed by
using descriptive method of data analysis. The collected data from both sources were
analyzed by using value chain analysis approach. Value chain map was used to depict the
metal value chain. After collection of data from interview and FGD, the analysis is done
by value chain analysis. Chain mapping is used to show the value chain of metal finishing
product in the country. In addition, a comparative analysis of the AS-IS value chain and
the benchmark value chain of value chain had been undertaken.

3.7.1. Descriptive methods

This method of data analysis refers to the use of, percentages, means, frequencies and
standard deviations in the process of examining and describing metal value chain analysis

3.7.2 Value chain mapping

The main purpose of mapping the value chain is to summarize, in a clear pictorial format,
the value chain structure. There are many different ways to diagram value chains –
horizontal, vertical, and circular. Value chain maps demonstrate how a product in an
industry moves from raw material through production, processing, and other steps, until it
eventually winds up with the final consumer. The map highlights the range of activities
that occur within the value chain. The map would be also outline transformation steps or
functions, actors, relationships and support services. The level of detail in a value chain
map can vary, ranging from noting the basic essentials to highly comprehensive. At the
end of the design process, a second version of the map can be developed to detail the
future vision of the market that the program would create.
The components that are generally needed in order to map the value chain include the
following:
1. Transformation Steps,
2. Value chain end markets (consumers or users),
3. Value chain actors & customers and

19
 4. Support services.
Each of the inputs the program designer would be need during the physical mapping of
the value chain is detailed below.
1. Transformation Steps: -Transformation steps are the stages a given product goes
through along the supply chain. For example if the product is unprocessed metal
productthe first transformation step is “ suppliers(wholesalers, retailers,)” and would be
include other components needed to make metal products. The last transformation step
for metal product finishing would be “for final consumption.” Here we have listed several
examples of steps a product transforms through:
 Suppliers
 Producing
 Wholesaling
 Retailing
 Consumption
2. Value Chain End Markets (Consumers or users):- Value chain actors are those
participate in a value chain. The people or entities who are actors in value chain End
Markets are primary markets to which the product of the value chain is sold. In terms of
structure, typically the markets are placed in order of their value, from left to right (lower
value markets on the left, higher value markets on the left).

3. Value Chain Actors Value chain actors are those who participate in a value chain.
The people or entities who are actors in our product include:
 Regional metal product suppliers
 Local metal product suppliers
 Small scale enterprises
 medium scale enterprises
(Value chain consumers are not considered „actors,‟ and so the potential customers who
would consume the product in the value chain should be listed across the top of the value
chain map. Actors differ from consumers in that they do not use the product but instead
process or move the product through the chain.)

20
4. Support Services Critical support services can come from actors internal to and
independent of the value chain. Internal actors and the support services they provide
should be linked with an arrow (use a different style for each different service) and
labeled with a dollar sign. Actors who are independent of the value chain can be listed on
the far right side of the map vertically. Examples of support services include:
 Microfinance institution (MFI)
An alternate form of bank, this type of financial institution is typically found in
developing countries and provides microcredit lending to those in poverty. Microcredit
Lending is the extension of small loans, designed to spur entrepreneurship. Microloans,
as the name implies, are generally very small and are given to the very poor, who tend to
lack the minimum requirements (i.e. collateral, steady employment, credit history, etc.),
for access to traditional credit.
 Non-Governmental Organizations (NGOs)

Those associations created by people or groups that operate independently from any
government. The distinction of NGO is usually limited to organizations that seek to
impact a social issue. Sometimes called „civil society organizations‟ The main purpose
for mapping the value chain is to summarize graphically the value chain structure. There
are several ways to go about charting the value chain: Horizontally, Vertically, or
Circular. Whichever style the program designer chooses, the components remain the
same. The procedure for mapping the value chain is as follows:
1) Collect Market Research
Collect all the market research that’s been compiled to date. The program designer should
have data from several sources, including:
 Key informant / in-depth interviews
The best information is likely to be found through direct conversations and interviews
with “key informants” within the country/region. Key informants can be found in a
variety of places, for example – governmental departments, private sector academic
institutions, other NGOs, etc.
 Focus group discussions
Conducting focus group discussions is another great way to get important information.

21
  Market observations
Review existing industry and market research.
2) Analyze the findings and study the implications
a) Evaluate the market research and the other information the program designer has
collected so far to determine what the unique characteristics of the value chain are.
b) Consider the relationships between the value chain actors, and determine the linkages.
 In which industries/economic activities is there good potential for linkages for
micro and small enterprises?

3.7.3. Drawing the Value Chain Map

Now the program designer would be begin to actually draw the map of the value chain
based on the comprehensive analysis. The program designer would use the lists made in
the raw materials section.
i. Write out each step in the Transformation Process
o Start with the transformation steps the program designer came up with when
gathering products, and begin listing those steps vertically along the left side of
the map
o The program designer should choose a shape for these functions to differentiate
them from other parts of the value chain later on once the map becomes more
complicated. In our example, we have chosen to identify transformation process
steps by surrounding each term with square/rectangle
ii. Identify the various End Markets (Consumers) in the Value Chain
o Use the list of End Markets (Consumers) – the primary consumers to which the
product of the value chain is sold.
o Arrange the list of market segments in order from lowest to highest value,
beginning with low value markets on the left, and moving to the right as the
markets reach a higher level.
iii. Identify the different Actors in the Value Chain

22
 o Here, use the next set of inputs – the list of identified key Actors in the Value
Chain
o Starting at the bottom of the value chain map, begin placing each actor on the
map, according to the relevant value chain activity (the boxes on the left side of
the map) and the relevant market (the circles across the top of the map).
o Continue to place each actor according to their value chain activity and the
markets themselves for the remaining levels of the value chain.
o Expand the actor’s box to reflect involvement in multiple levels of the value
chain.
iv. Depicting Relationships
o Construct key linkages between all the actors in the value chain based on the data
from the research study.
- Connect their relationships with any support services that help link producers to the end
market
- Identify the relationships between the producers & the key actors that help link the
producers to the end market
o Arrows are the most commonly used symbols for depicting relationships on a
value chain map, which should flow vertically from top to bottom and
horizontally from left to right – as if writing a letter. Use a different style line to
illustrate each unique relationship, so they are clearly defined.
o Draw arrows pointing up to represent product flow (from input suppliers up to
end markets)

v. Representing Support Services

o If developing a detailed map, it might be a good idea to include support services
as an overlay. Use arrows to show the flow of services from one actor to another
in the transformation flow.
Services from actors outside the value chain can also be included on the map. It is
important that these services are placed at the far side of the map (and not in the value
chain). Shading the box differentiates these actors from those within the value chain.
o These should include the range of service providers.

23
3.7.4. Value Analysis
Value Analysis is analyzing value of each activities and how it is undertaken in existing
situation (AS IS) with respect benchmark. A value analysis, providing both qualitative
and quantitative background information for activities to be analyzed; Sources of
information for this analysis was secondary data, published or unpublished literature,
surveys, focus groups, and rapid appraisal. A major goal of analyzing is to identify any
“bottlenecks” in the value chain. The identification of the factors that the customer’s
value in the way of the conduct of each activity and then work out on the changes that are
needed.

3.7.5. Method of Comparative Analysis

All data and information gathered in Value chain is analyzed using the Four Parameters
(Quantity, Quality, Cost, and Time)
Four Parameters (Quantity, Quality, Cost, Time)
The process of analyzing the Value chain activities was according to the four parameters
(Yield, Quality, Cost and Time) to identify the Gaps between AS IS compared to the
Benchmark. The four parameters defined as flows:
Quantity – refers to level or number of output acquired
Quality – refers to the level of standard applied
Cost – refers to the amount of money allotted in a specific activities
Time – refers to the specific duration, time limitation in performing the activities
The following is the way done to analyze the value chain in metal production and
processing. The main Chain and Sub Chain is listed to use the four parameters, which are
the yield, quality, cost and time, so as to compare already the benchmark versus the AS
IS. Since using this approach we can clearly see the difference between the two elements.

3.7.6. Gap analysis

The purpose of a value chain gap analysis is to measure the differences between the
current situation and the desired situation. It compares “what is” with “what ought to
be”. When gaps are identified, you can work to close them.

24
3.7.7. Tabulation and graphical representation of data

It is cumbersome to study or interpret large data without grouping it, even if it is arranged
sequentially. For this, the data are usually organized into groups called classes and
presented in a table which gives the frequency in each group. Such a frequency table
gives a better overall view of the distribution of data and enables a person to rapidly
comprehend important characteristics of the data. The data which has been shown in the
tabular form may be displayed in pictorial form by using a graph. A well-constructed
graphical presentation is the easiest way to depict a given set of data.

3.7.8. Cause and Effect Analysis

It’s a diagram that demonstrates the relationship between effects and the categories of
their causes. The arrangement of the diagram looks like a fishbone it is therefore also
called fish-bone diagram. Cause and Effect Analysis enables you to identify the possible
cause affecting or creating a project or problem. A cause and effect diagram is a quick
and visually effective way of exploring a problem or opportunity with some vigor. We
can use a cause and effect analysis when we need:
 Root Cause Analysis
 Problem Exploration
 Defining a problem
 Identifying possible data requirements
 Developing objectives for solutions
 Narrowing down causes
Hence, after reviewing related literatures, for the best outcome of the study, mapping the
AS-IS value chain, mapping the bench mark value chain, Value analysis, identifying gaps
and analysis, and cause and effect analysis tool were applied as a method of data analysis.

25
CHAPTER 4

Result and Discussion

The following section discusses the analysis of the data collected from different Metal
product manufacturing micro and small enterprises, metal product suppliers, Polytechnic
collage and stakeholders. After over viewing, it will focus on metal value chain analysis
and to analyze the problems in detail. Questionnaire was developed to assess the value
chain analysis and level through collecting qualitative and quantitative primary data
regarding the current metal fabrication process and improvement practices in metal
production process in the study area.

4.1 Descriptive Analysis

In this part the collected data from the respondent’s analysis by using, percentages,
means, frequencies and standard deviations for to assess the existing metal product
fabrication process and root problems in metal product process in the study area in the
process of examining and describing metal value chain analysis.

The result in Table 4.1 shows those 13(34.2%) of the respondents

26
after the sell you got feedback from your customers and 25 (65.7%) of the respondents
has no asked any information about your sale product or not get any feedback
information from your customers. The result of the chi-square test indicates that feedback
from your customers to be significant at10% significant level ;Therefore MSE who
participated in metal fabrication process they must get feedback from your customers are
essential for your future actions and to increase productive as well as qualities of the
products.

Good design implementation was importance for increasing market share as well as
customer handling; hence the results shows that 5(13.7%) of the respondents got training
on metal design process and 33 (86.2%) of the respondents has no any training on metal
design process. The result of the chi-square results indicates that training on production
on metal design process to be significant at10% significant level; Therefor the concerned
body gives training on especially how to read and design metal products new products
from imported or manufactured by other MSE.

The result in Table 4.1 shows those 9(23.6%) of the respondents flow the scientific steps
for manufacturing process to produce metal items and29 (76.3%) of the respondents has
no flow the formal manufacturing process to produce metal items. The result of the chi-
square test indicates that flows of manufacturing process to be significant at10%
significant level ;Therefore MSE who participated in metal fabrication process they must
use manufacturing production steps that area are essential resources utilization as well as
to increase qualities of manufacturing items. Hence to use manufacturing process helps
for to increase productive as well as qualities of the products delivered to the customers.

Flow quality control procedures for manufactured product operation was importance for
increasing competitive and market share as well as customer satisfaction; hence the
results shows that 13(34.2%) of the respondents flow quality control procedures for
manufactured product and 25 (68.2%) of the respondents has no any flow quality control
procedures for manufactured product. The result of the chi-square results indicates that
training on flow quality control procedures for manufactured product process to be

27
significant at10% significant level; therefore the concerned body gives training on quality
control procedures how to maintain quality in metal manufacturing process .

Table 4. 1Descriptive analysis for dummy variables

Frequency Percentile χ² Significant

Availability of raw materials Yes 32 85.0
No 6 15.0 1.528 0.216
Availability of storage for Yes 25 66.0
materials No 13 34.0 1.26 0.753
After sell you got feedback from Yes 13 34.2
your customers No 25 65.7 6.5726* 0.095
Formal training on production Yes 16 42.0
technologies No 22 58.0 1.96 0.562
Formal training on metal design Yes 5 13.7
process No 33 86.2 6.962* 0.018
Formal training on market Yes 10 26.4
linkage finished metal product No 28 73.6 2.95 0.164
Government institutions
(TVET…) perform follow up Yes 27 71.0

and evaluations for your work

marketing and Manufacturing

28
process No 11 29.0 2.859 0.414
Do you flow the production
process of metal fabrication Yes 9 23.6 5.962* 0.031
(mkt,des.measure..lay……
No 29 76.3

Do you flow quality control

procedures for manufactured Yes 13 34.2 6.156* 0.029
product
No 25 65.7

Table 4. 2Raw materials availabilities

Frequency Percent
Suppliers 37 97.3
From where you got
Others sources 1 2.6
raw materials
Total 38 99.9

The above table 4.2, shows that availabilities of raw materials. Raw materials are
materials or substances used in the primary production or manufacturing of goods. Raw
materials are commodities that are bought and sold on commodities exchanges local
markets. Traders buy and sell raw materials in what is called the factor market because
raw materials are factors of production as are labor and capital. From above tables
indicted that almost all enterprises 37 (97.3%) you got raw materials for manufacturing
get from suppliers. This shows that there is easily availability of materials for
manufacturing of metal products; this may be reducing transportation cost.

29
Table 4. 3welding machine your work activities

Frequency Percent
Traditional 25 65.7
Machine
Training of Basic metal work 13 34.3
operation
Total 38 100.00

The above analysis showed that 65.7 %of the respondents say that to operate welding
machine by traditional ways and the rest 34.3 % of the respondents operates by training
basic metal works. Therefore the concerned body give training on welding operation to
performs goods actives as well as to reduces risk that may causes with wrong operation
welding machines.

Table 4. 4Most of your product provide to

Frequency Percent
Local mkt 32 84.2
Product delivered to RegionalMkt 6 15.8
Total 38 100.0

The analysis showed that all almost 84.2 %of the respondents get their finished products
sale to at local market and only 15.8 % the final manufactured product delivered to
regional market. This shows that there is less market share and the product is not
computes with at regional level, at the same time advertisement activities also less.
Therefore the concerned body must be work with marketing strategist and to increase
advertisement opportunities at different mechanizes to shows the finished products.

30
Figure 4. 1Selling final products

It is said that good marketing is a study about what customers want to buy and then them help
them do so. Selling the finished products is actual both a science and an art and very
important to the success of any business. We will take a look at the functions of marketing.
Let us get started. From the above figure 4.1. Shows that 10 (26.3%), 4(10.5) and 24(63.8)
Selling of your final manufacturing products to consumers, government and NGO
respectively. This shows that there is lack of market penetration.

Figure 4. 2From where to get design to manufacturing the ordered product

31
Understanding and to draw drawing for manufacturing products are very essential for
quality control as well as resource utilizations. Using design in business can bring about
many benefits. It can improve your performance, your efficiencies, and the value of your
products and services. It can also reduce costs and risks to your business. From above
figures shows that 27(71%), 6(15.7%) and 5(13.1%) of the respondents you got item
designs by prepared designs, prepared sketch and assumption respectively. Therefore the
concerned body give training on how to designs the product for manufacturing metal
items. Effective design can encourage customers to buy from you and not from your
competitors. It can help your product, service or business stand out

Figure 4. 3Advertisement your manufactured product seal to your customers.

One of the most essential parts of running a successful business is building loyal base of
customers who periodically purchase your goods and services. Even if a company offers
high-quality goods and services at low prices, owners won't will make sales if consumers
are not aware of its offerings. A strong advertising campaign can have numerous benefits
for a small business. From the above figures shows that 8(21%),8(21%) 6(17%)
13(34.2%)and 3(7.8%) of the respondents advertisement your manufactured product seal
to your customers by side of the customers side, organizational banner, redo, exabishions
and other mechanisms to promote the products.

32
4.2. Value Chain Mapping

Mapping a chain means creating a visual representation or a flow diagram of the

connections between activities in value chains as well as other market players. It helps to
illustrate and understand the process by which a product goes through several stages until
it reaches the final customer. A value chain map illustrates the way the product flows
from raw material to end markets and presents how the industry functions. It is a
compressed visual diagram of the data collected at different stages of the value chain
analysis and supports the narrative description of the chain. By using the information
gathered from questionnaire and during interviews, questioner, observation as well as
secondary research, the value chain analysis team develops the map of the metal product
finishing manufacturing in Jinka city administration, Debub ari, Weba ari and Hamer
bena Weredas. Value chain mapping enables the analysis team to visualize the flow of
the product from beginning to end consumer through various actors, as well as the
supporting markets and enabling environment affecting the value chain.
Mapping a chain means creating a visual representation or a flow diagram of the
connections between activities in value chains as well as other market players. It helps to
illustrate and understand the process by which a product goes through several stages until
it reaches the final customer.
Activity Analysis, The identification of the activities undertaken by the enterprise that
contributed to the delivery of the product or service. After the identification the survey
team would do the brainstorming with the activities identified which are the Main Chain
and the Sub Chain.
The purpose of mapping the value chain is to translate the findings of the gathering of
data into a Value Chain. The Value Chain map is a simple tool, which visualizes complex
things we find in reality.

33
34
 4.2.1. AS-IS practice
Metal Industry: Value Chain of Metal Product

The AS-IS mapping of the value chain analysis for the current production system of metal product in wolkite, wolaite and worabe towns
have shown in the figure 4.1 below.

Input Marketing
Market Product Preparation Shaping Assembling Finishing Quality
supply control
survey design

Free hand Checking of

Raw Welding Grinding Pricing
Receiving sketch Measuring Manual dimension
materials decisions
order tool bending
machine
Body filler
Marking Screw & using metal Observation
Human Drilling Selling the
Prepared tools bolt stucco
resource sketch machine product
Customer
based product Riveting
development Manual Sand paper
Cutting
tools rolling Key
Material &machine
selection Painting using
brush and Main
compressor

Sub chain

35
Figure 4. 4AS-IS Value Chain Map

36
4.2.2 TO-BE Value Chain Mapping (Bench Mark)
The TO-BE mapping of the value chain analysis for the improved production system of metal production has illustrated in the figure 4.2 below.
METAL PRODUCTION VALUE CHAIN (BENCH MARK IN CHINA)

Packing
Market Detail preparatio Assemblin Quality Transporta Aftersell
input supply MRP Shaping Finishing and marketing
Survey design n g control tion service
Storage

Customer Bending Packed

Welding Grinding Service,
Receiving Identify
based Product Measuring standard Standard Standard finished Price repairing &
Raw Development Precision Delivery
order potential hydraulic grinding product decision training
materials welding By car, train,
measuring tools bending centers on
Suppliers machine machine air plane
machine Inspectio Store in domestic
n and appropriate markets
area appearing
Survey testing
Designing Scrolling
Team Body filler
Human Preparing necessary Standard Standard Proper
resource Using metal
MPS tools and marking tools scrolling Mechanical stucco
packaging
Equipment machine Assembling (labels)
Screw
Demand Bolt and rivet
forecasting Inventory Preparing
Control detail CuttingStandar Lath machine, Proper
drawing d cutting tools Sanding display with
and milling
and machine machine Use d/f price tag
number of
sanding
Preparing
Use sanding
assembly Drilling
drawing machine
Standard
drilling
MRP ===Material requirement planning Machine
MPS=====Materials preparing scheduling
Material
Painting
Use spray
selection
Use
compressor

37
Figure 4. 5to be (Bench mark) Value chain Map

38
4.3 Value Chain Analysis

4.3.1 Value analysis of AS IS practice

Main chain: input supply

Value analysis of raw materials

 Functions
 Buy raw materials
 Problems
 Low standard materials
 High raw materials cost

Value analysis of human resource

 Functions
 Employing qualified personnel
 Problems
 Lack of experience

Main chain: Market Survey

Value analysis of receiving order

 Functions
 Receiving orders of different metal products.
 Problems
 They do nothing to survey customer interest.
 They do not have any market forecasting system.

Main chain: product design

Value analysis of free hand sketch

 Functions

39
  Explain the idea in drawing without instruments (free hand sketch)

 Problems
 Drawing skill gap.
 The drawing does not give full information about the product
 They cannot use appropriate drawing software.

Value analysis of prepare sketch

 Functions
They intend to use available sketch

 Problems
Customer interest not prioritized.
They depend on the available material.

Value analysis of customer based product

 Functions
They use customers interest in to their design

Value analysis of material selection

 Functions
They intend to use available materials
 Problems
Customer interest not prioritized.
They depend on the available material.
They select low cost material.

Main chain: preparation

Value analysis of allocations of raw materials

 Functions
Buy raw materials of all kind.

40
 Problems
 High raw material cost.
 Small number of suppliers.

Value analysis of measuring and marking tool

 Functions
Low standard measuring and marking tools

 Problems
 Poor accuracy
 Using less precision measuring equipment.

Value analysis of cutting tools and machines

 Functions
Buy cutting tools and machines for cutting different types of metals
 Problems

cutting machines are more expensive to afford enterprises.

Fabricating Poor quality manual cutting machines.

Main chain: shaping

Value analysis of manual bending

 Functions
Buy manual bending machine for metal bending.

Fabricate modified manual bending machines.

 Problems
Bending machines are more expensive to afford enterprises.

Fabricating Poor quality manual bending machines.

41
Value analysis of drilling machine

 Functions

Buy drilling machine for making holes on metals.

 Problems
Using limited drilling bits type.

Using low capacity drilling machines.

Value analysis of power hack saw

 Functions
Buy power hacksaw machine for metal cutting.
 Problems
Power hacksaw machines are more expensive to afford enterprises.
Using hacksaw (manual).

Value analysis of manual rolling machines

 Functions
Buy rolling machine for scrolling metals.
 Problems

 Trapped hands and fingers

 Crush injuries

 Poor quality products

Main chain: assembling

Value analysis of welding machines

 Functions
Buy welding machine for joining metals.
Copied welding machines.

42
 Problems
Using limited welding machines type.
Using low capacity welding machines.
Using arc metal welding only.
Value analysis of screw and bolt
 Functions
Buy screw and bolts for assembling metal products
 Problems
very noticeable heads that are difficult to hide discretely
Some projects are simply too heavy for regular screws
With repeated use, screw heads can become stripped

Value analysis of riveting

 Functions

 Buy rivet and gun for assembling metal products

 Problems
 There is more cost of a riveted joint
 The metal material used to place the rivets loses integrity
Skill gap to operate modern machineries.

Main chain: Finishing

Value analysis of grinding and finishing

 Functions

 Buy grinding machines for finishing metal products

 Problems
 Required tool is high cost.

 It cannot remove the high amount of material; it only removes a little amount.

 You should work carefully, because imperfect contact may lead to damages.

Value analysis of metal stucco

 Functions

 Buy metal stucco or finishing metal products

43
 Problems

 it will shrink and crack

Value analysis of sand paper

 Functions

 Buy sand paper for polishing metal products

 Problems
 They easily wear out

Value analysis of painting

 Functions

 Buy painting brush and compressor for painting metal products

 Problems
 It is a laborious process

Main chain: Quality control

Value analysis of Checking of dimension

 Functions

 Measuring

 Problems
 Inappropriate usage of measuring tools

Value analysis of observation

 Functions

 Observing the physical appearance of the product

 Problems

 Randomly observing the product than using a set of standards during quality checking

Main chain: Marketing

Value analysis of price decisions

44
 Functions

 Pricing the product

 Problems
 Poor market survey

 Luck of consumer-oriented and market-oriented pricing strategies

Value analysis of selling the product

 Functions

 Focus on selling the product

 Problems

 Poor selling strategy

4.3.2 Value Chain Analysis

4.3.2. Value analysis of To-Be practice

i. Main chain: input supply
• Value analysis of raw materials
 Functions
 Buying standard raw materials
 allocating enough raw materials
• Value analysis of human resource

45
 Functions
 Employing qualified and experienced personnel
• Value analysis of demand forecasting
ii. Main chain: Market survey
• Value analysis of receiving order
 Functions
 Receiving orders of metals product.
 receiving orders are an important process getting materials with many benefits
relevant to both parts (Customers &MSE)
• Value analysis of survey team
 Functions
 Organizing Qualified survey team
 Organized marketing information of metal fabricating
• Value analysis of demand forecasting
 Functions
 Use well developed market research
 Customer demand based on forecasting
 Make planning for future events related to business
iii. Main chain: Material Requirement Planning (MRP)
• Value analysis of identifying potential suppliers
 Functions
 Drawing your ideal supplier profile
 Get information from other producers
 Use internet and other medias to identify suppliers
 Motivate potential suppliers to respond to you
• Value analysis of preparing MPS (Materials preparing scheduling)
 Functions
 Materials are properly purchased, stored and used.
 Quantify significant processes, parts and other resources
 Identify bottle necks and anticipate needs and completed goods
 Produce master schedules and forecast for any level of bill of materials

46
 • Value analysis of inventory control
 Functions

 specification of goods, their ID numbers and their types;

 keeping information on goods serial numbers;

 barcodes implementation and control;

 real-time goods location tracking;

 inventory storage oversight;

 Regularly check a shop's stock

iv. Main chain: detail design
• Value analysis of customer based product development
 Functions
 Find out what problems you can solve for the customer before designing the
product
 Get early feedback on new product concept from customers by showing them
initial prototype
• Value analysis of designing necessary tools and equipment’s
 Functions
 Maintain quality by designing tools which consistently produce parts with the
required precision
 Use properly designed equipment to produce high quality and cost effective
products
• Value analysis of preparing detail drawing
 Functions
 Use different design software’s to produce good quality drawings
 Take various qualities of inputs from clients and analyze these inputs and
develop detail drawings
• Value analysis of preparing assembly drawing
 Functions
 Use different design software’s to produce good quality drawings

47
  Showing an overall assembly.
 Shows that Manufacturing requirements ,Operational requirements and
Maintenance requirements
• Value analysis of material selection
 Functions
 Select a material property that satisfy the function and the operating
conditions of the components being designed
 Use Correct combination of mechanical, physical and chemical properties
to meet the function of the components
v. Main chain: Preparation
• Value analysis of allocation of raw materials
 Functions
 Availability of the raw material in the right quality and quantity
 Efficient material management
• Value analysis of selecting measuring tools
 Functions
 Uses appropriate standard measuring tools for the suitable marking out and
measuring equipment.
• Value analysis of selecting appropriate marking tools
 Functions
 use for appropriate manufacturing process for laying out in dimensions of
metal surface
 Compare the relative degrees of accuracy of marking out of metal items.

• Value analysis of selecting appropriate Cutting Process

 Functions
 Use appropriate cutting machines and modern cutting tools to produce
good quality of surface finish
 Ability to cut complex shapes with good accuracy with determined
dimensions.
vi. Main chain: Shaping

48
 • Value analysis of selecting appropriate Bending process
 Functions
 Use appropriate bending procedure which saves time and money
 Fabricate manual bending machine for sheet metal, round bar and flat iron
bending.
 According to materials type to produce high quality surface finish.

• Value analysis of preparing scrolling process

 Functions
 Use appropriate scrolling manufacturing process to save time and money.
 Use proper scrolling machine for specified design according to materials type to
produce high quality surface finish.

• Value analysis of preparing Twisting process

 Functions
 Use appropriate twisting manufacturing process which saves time and
money
 Select proper twisting machine for specified manufacturing process and
design according to materials type to produce high quality surface finish.

• Value analysis of preparing Drilling process

Functions
 Use appropriate drilling process which saves time and money
 Buy drilling machines for manufacturing process
 Select proper drilling machine for specified manufacturing process and design
according to materials type to produce high quality surface finish.

vii. Main chain: Assembling

• Value analysis of welding machine
Functions
 Buy standard welding machines for metal welding.
 Fabricate manual welding machine for weld flat iron, sheet metal and small
diameter round bars.

49
 • Value analysis mechanical assembling
Functions
 Buy screw rivet and bolt for assembling fabricating metal
• Value analysis of Riveting
Functions
Buy riveting gun for assembling of sheet metal, flat iron and joint for
manufacturing process.

viii. Main chain: Finishing

• Value analysis Grinding
 Functions
Buy standard grinding machines for manufacturing metal fabrications
• Value analysis of Body filler
 Functions
Understand types of metals
Know types of mold sands

• Value analysis Sanding

 Functions
 Buy standard sand paper for finished metal fabricating parts
 Understand types of metals
• Value analysis Painting
 Functions
 Buy standard painting materials for finished metal fabricating parts
 Understand types of metals
ix. Main chain: quality control
• Value analysis of Inspection and testing
Functions
Observe the smoothness, shininess, roughness, etc
Test the aesthetics of the product
x. Main chain: Product packing and storage

50
 • Value analysis of packing
 Functions
Buy packing materials for metal finished products
Fabricate manual packing materials
Prepare packaging material

• Value analysis of storage

 Functions
Build store room for storing products
Use kaizen principles to partition the working area and prepare store room
Rent store room for storing products
xi. Main chain: Transportation
• Value analysis of transport
 Functions
 Buy cars or carts for transporting products
 Rent cars or carts for transporting products
xii. Main chain: Marketing
• Value analysis of Retailer
 Functions
 Proper packaging (labels)
 Proper display with price tag and varies
• Value analysis of Wholesale
 Functions
Proper packaging (labels)
xiii. Main chain: After sell service
• Value analysis of Service, repairing & training centers on domestic
markets appearing
 Functions
 support provided to a customer after the product or service

51
 4.3.3 Characteristics of Inputs and Supplies

The inputs (raw materials) mostly used for metal production by the micro and small
enterprises in the study area are different types and thickness of Mild steel, Sheet metal,
aluminum sheet metal , mild steel, round bars and etc.. Additionally, manufacturing
enterprises use semi-finished metal products like; standardized aluminum metal, casted
iron, metals hinges ,Flowers, tendons with different shape , diamond shapes, zigzags,
wheat shape, leaf shapes, strawberry shapes, and circular shapes are few among many
types of semi-finished metal products. The analysis showed that all almost 97.3%of the
respondents get their inputs from local suppliers. The questionnaires also distributed to
these suppliers in order to get the reason why the suppliers works in this field of trading.
The analysis showed that75% of the respondents gave a reason that “there is a high
demand of metal in the market”. On the other hand, all the enterprises think and give
reasons as there is high customer demand in the market. The market condition is also
necessary to analyze the value chain and to interpret forecast the demand of metal
fabricating products of market. From the distributed questioners, 100% of the supplier
shows there is a strong demand and it is increasing. The other investigated actors
(enterprises) 100% responded that the market demand is increasing.85% the respondent
to purchase materials by using measurement instrument such as caliper, steel rule, tap
rule mete and etc.; to manufactured metal products.

Table 4. 5Comparative value Chain Analysis (Metal product)

Parameters
Value chain
Variety and quantity Quality Cost Time
1. Market
As Is To Be As Is To Be As Is To Be As Is To Be
survey
1.1 raw low Enough low standard Fair On time

52
materials delivery
1.2 human unqualifi Cost
low Enough qualified Fast
resource ed effective
2. Market
As Is To Be As Is To Be As Is To Be As Is To Be
survey
2.1 Receiving low Based on Clear order and Cost Cost free Time
order customer full information free bounded
demand from a
customer
2.2 Survey team No A well No Knowledgeable Effective On time
organized and skillful survey
team
2.3 Demand No Highly No Tangible No Effective No
Forecasting needed forecast
3. Material
requirement
As Is To Be As Is To Be As Is To Be As Is To Be
Planning
(MRP)
3.1 Identifying No well Set standard on Well Respect
Potential organized purchased informed negotiated
suppliers information items decision Deadline
on potential for better
suppliers price
3.2 Preparing No For each Well outlined Cost Minimum
Master product and production effective Production
Production production schedule and based time
Scheduling process on profit schedule
( MPS) maximizat
ion
3.3 Inventory No Effective Well Cost Twice a
control Inventory documented effective year
for each
product
4. Detail design As Is To Be As Is To Be As Is To Be As Is To Be

53
4.1 customer Low Consult the Satisfied Low cost Meet
based product customers customer product Deadline
development for their developm
interest ent
4.2 Designing Low Enough Well-designed Cost Must be
necessary tools number of tools effective done before
and equipment tools and &equipment the
equipment production
schedule
started
4.3 Preparing Low Standard Full Will Must be
detail drawing working information minimum done before
drawing working cost and the
Should be drawing maximize production
prepared profit schedule
started
4.4 Preparing Low Standard Full Will Must be
assembly assembly information minimum before the
drawing drawing assembly cost and production
Should be drawing maximum schedule
prepared profit started

4.5 Preparing Proper Standard Cost On time

material material procedure effective selection
selection should be should be
selected followed to
ensure quality
5. preparation As Is To Be As Is To Be As Is To Be As Is To Be
5.1 allocation of Enough Enough raw As per the Cost On time
raw materials raw material standard effective delivery
material requirement
5.2 precision low Enough low High precision low Cost Requi With
measuring tools tools and best re Minimum

54
 accuracy effective long measuring
time time
period
5.3 standard low Enough Best accuracy Cost low With
marking tools effective Minimum
process time
5.4 standard low Enough low with cutting Cost With
cutting tools and cutting tools standard effective Minimum
machines and requirements and based process time
machines on profit
maximizat
ion
6. shaping As Is To Be As Is To Be As Is To Be As Is To Be
6.1 hydraulic Low Enough low High accuracy Cost With
bending bending effective Minimum
machines machines process time
6.2 twisting No Enough No Good profit With
machine twisting maximizat Minimum
machines ion process time
6.3 Drilling Able to drill High precision drilling Fast
machine different and production machine
size metal capacity with
hole Minimum
cost
6.3 scrolling Able to roll High precision Rolling Fast
machine different and production machine
size plate capacity with
and sheet Minimum
metal cost

7 . Assembling As Is To Be As Is To Be As Is To Be As Is To Be

7.1 standard Able to It produces a Well Fast

Welding weld permanent priced and
machine different connection. affordable

55
 types of
metal
7.2 mechanical Well High accuracy Cost Minimum
assembly screw planned and precision effective joining
and bolt joining joining process process time
process
8. Finishing As Is To Be As Is To Be As Is To Be As Is To Be
8.1 standard Enough High precision grinding Fast
Grinding number of and capacity machine
machine grinding with
machine Minimum
cost
8.2 metal stucco Enough provides an Minimum With
stucco to fill excellent seal cost Minimum
gaps process time
8.3 sanding Able to Good polishing Minimum With
papers and polish quality cost Minimum
machines different process time
metal
8.4 painting with Well planed High accuracy Cost Minimum
spray and painting and precision effective painting
compressor operation painting operation
operation time
9. Quality
As Is To Be As Is To Be As Is To Be As Is To Be
control
9.1 Inspection Knowledge Produce with Cost With
and testing based accurate testing effective Minimum
Inspection process time
and testing
9.2 checking Use Produce with Cost Shortest
Dimension different Accurate effective time
dimension dimension
tools
10. packaging As Is To Be As Is To Be As Is To Be As Is To Be

56
and storage
10.1 packed Depend on Safe packaging Low cost Fast
finished product the product and storing
and store in
appropriate area
11. Transportation As Is To Be As Is To Be As Is To Be As Is To Be
11.1 delivery by Well Safe product Low cost Meet
car, train and air organized handling deadline
plane logistic team logistic system
12. Marketing As Is To Be As Is To Be As Is To Be As Is To Be
12.1 pricing Well planed Good effective fast
decision pricing estimation of
process product`s price
12.2 selling the Well planed Staying Cost fast time
product selling focused on the effective
process details of your
product and
customers.
12.3 proper Depend on Safe packaging Low cost Fast
packaging labels the product
13. After sell
As Is To Be As Is To Be As Is To Be As Is To Be
service
13.1 service Depend on Safe repairing Low Cost Shortest
repairing and the customer and training time
training

57
 4.4 Identification of Gaps/Constraints
The following TO-BE value map has explored the main chain and sub-chain gaps and constraints which were existed in the AS-IS metal
production method.

Figure 4. 6Identification of Gaps Value Chain

Input Market MRP Product

survey preparation Shaping assembling Finishing Quality
supply design Packaging & transportatio marketing Aftersell
control storage n service

Identify Standard Standard Standard

Raw Receiving Customer Precision Inspectio Packed Delivery Pricing Service
order potential based hydraulic Welding grinding
materials measuring bending machine
n and finished by car,
decisions repairing &
supplier product machine train, air
tools machine testing product training
developme plane
Survey nt centers on
Human Mechanical Body filler Store in domestic
team assembling Selling the
resource Preparing using metal appropriate markets
Standard product appearing
MPS Designing stucco area
marking Screw bolt Checking of
necessary Twisting and rivet
Demand tools
tools & machine dimension
forecasting equipment
Inventory
control Proper
Sanding
Standard packaging
using
cutting (labels)
sanding
tools & Drilling
Preparing
machine paper &
detail machines machines
drawing

Preparing Painting using

assembly
Scrolling
spray and
drawing machines
compressor

58
 Material
selection
Table 4. 6Cause and Effect Analysis

Table 4.3: Cause and Effect Analysis

Value chain
No Constraints /Gaps Causes Effects Solution Responsiblesectors
activities
1 Input supply - - - - -
Market Survey ♦Survey team ♦Lack of experienced ♦Market decline, ♦ Employing marketing ♦ EDC, TVETs, Trade
employee personnel, & Industry bureaus,
♦Demand ♦Incompetent in market
♦lack of entrepreneur ♦ Short term training on Universities, Science
forecasting share
entrepreneur skill and Technology
skill
♦Unable to meet the demand Institute
♦ Lack of demand of the market
forecasting method
2 MRP (Material ♦Identifying ♦Information gap ♦Wastage of materials, ♦ Training on material ♦TVETs, KAIZEN
Requirement requirement planning, Institute,
potential suppliers ♦Lack of training on ♦Delay of Production and
Planning) inventory control, Universities, Science
♦Preparing MPS inventory management lead time elongation ,
and Technology
(Main Chain (Master production ♦Lack of KAIZEN ♦ Unable to create conducive ♦Implementing KAIZEN
Institute
Gap) scheduling) working environment,
application
♦Inventory control

59
3 Product Design ♦Designing ♦Lack of design concept ♦loss of competitiveness in ♦ Employing mechanical ♦ Universities, TVETs,
necessary tools and (Engineering design), a market, designer, Science and
equipment ♦ Technology Institute
♦ Decline of customer Short term training on

satisfaction, different CAD software’s,

♦Outsourcing and decline of ♦ Upgrading self-skill and

knowledge by browsing
income
internet and,

4 preparation - - - - -
5 Shaping ♦twisting machine ♦economical problem ♦unable to produce ♦buying the machine by ♦Debub capital, omo
decorative products loan microfinance and
development bank
♦lose of competitiveness in a
market,
6 Assembling - - - - -
7 Finishing - - - - -
8 Quality control - - - - -
9 Packaging and ♦packed finished ♦lack of packing materials ♦ poor product handling ♦Develop packaging in ♦ Universities, TVETs,
storage management, (product context with the Science and
product ♦Lack of space
♦ store in damage, waste of time and competition. Technology Institute
utilization,
energy) Giving training on
appropriate area
♦Lack of KAIZEN material management
application

60
 system,
♦ not protecting the
♦Applying KAIZEN
product from damage and
contamination.

10 Transportation ♦ delivery by car, ♦lack of transporting ♦ unable to reach customers ♦using smaller means of ♦Debub capital, omo
♦ unable to distribute the microfinance and
train and by Media transporting methods
product development bank
airplane ♦economical problem ♦buying vehicles using
to buy transporting loans
vehicles
11 Marketing ♦ proper ♦lack of knowledge of ♦ unable to promote their ♦ short term training on ♦ Universities, TVETs,
packaging (labels) writing and printing product labeling Science and Technology

materials ♦ less market Institute

12 After sells ♦ service repairing ♦ It imposes extra cost on ♦Does not Convince ♦ Awareness creation ♦ Universities, TVETs,
services and training the firm consumers to trust the Science and Technology

firm and buy the product Institute

♦ Damages the reputation

of firms.

61
 Cause and effect analysis
Figure 4. 7vCause and effect analysis
Causes
Poor transporting
Poor MRP & inventory system Machines
control
Lack of
transporting
Information media Outdated
machines Effect
Lack of kaizen
application
Economical Poor
problems maintenance
Lack of training on
inventory Lack of finance
management Lack of
competitivenes
s

Lack of surveying Poor reading &

Skill gap interpreting drawings
methods
Lack of Lack of adopting
Lack of demand employee new technology
forecasting Lack of design
method Lack of concept
experience

method Knowledge
Man power

62
4.6

4.6.1 Technology Identification

The process of technology identification gains high importance in Technology Management.
By identifying the appropriate technology, organizations cope with development in
technologies, are able to offer the latest and up-to-date technology and services and will
produce a high quality and enhanced services with a high quality and competitive prices.
Technology identification is the process of identifying technologies from the benchmark.
If the technology in the benchmark is somehow complicated and sophisticated with
respect to the country`s potential and focus, it is possible to look for other additional
alternative Technology Identification, Categorization and Prioritization technologies
(equivalent technology from other best practices) without compromising the quality and
efficiency.

In order to mitigate the above constraints, adoptions of different technologies are very important.
So we recommend the following technologies to mitigate constraints metal production as shown
in table 4.7 below.

4.6.2 Technology Categorization

The process of segregating identified technologies in to four categories of technologies
namely Techno ware, Human ware, Info ware and Orga ware. So the above technologies
that we have recommended to mitigate metal production constraints are grouped in to
four categories as shown below in table 4.8

63
64
Table 4. 7Identified Technologies for each value chains

Input MRP

supply (Material Packagi Trans Marketi After sell

preparati Quality
Market Requirem product Shapi Assembli ng and portin ng service
on finishing Control
Survey ent Design ng ng storage g
Planning)

Sheet Market Computer Problem Electrode Bendin Welding Grinding Checking Metal Anima computer Maintenan
metal research identifications g machines: machines the boxes l ce
and machi (MIG/ dimension Cart equipment
recognition of ne MAG, as per the , tools and
need TIG, design materials
SMAW,
Gas
welding)
RHS Market MRP Problem Drill bit Lathe screw Body Checking Packing vehicl Marketin
linkage software definition and machi filler surface materials es g soft
conceptualizat ne metal finish wares
ion stucco (observati
on)
Flat iron Export Bin card Geometric Grinder Lathe Bolt and Sand Checking Cart Websites
market modeling (3D disc machi nut paper aesthetics
analysis) ne
Steel Promoti Engineering Cutter Drillin Riveting Sanding Straightne Trolley Display

65
plate on of analysis and disc g machines ss, board
the optimizations machi flatness,
product ne squareness
,
parallelis
m,
roundness
Aluminu metal Prototype Hack Spray Store Promotio
m product development saw room n using
bazaars blade different
media
channels
Paints compress Shelf
or
Brush brush Cabinet

Sand Conveyo
paper r

Brushing
disc
Molding
sand
Wood
Rivet

66
Rulers
Caliper
Tap rule
Dividers
Scriber
Hammer
Vice
Anvil
Clumps
Mallet
hammer
Wire
brush
Rivet
gun
Snip
Tongs
Wire
brush
hack saw
Punch

67
 Jigs and
fixture
Dies
Ladle

Table 4. 8Technology Categorization

Technology Intervention
Values Gap/Constraints
Techno ware Human Ware Info wa3re Orgaware
Input supply - - - - -
Market Survey ♦ Survey team ♦Vehicle/motorbike ♦ Marketing ♦ Identifying target ♦ Market Research templates,
♦ Demand forecasting for market survey personnel, market, ♦ Demand forecasting
(Preferably ♦ Understanding strength techniques/methods,
Employing and weakness of
women) competitors,
♦ Developing pricing

68
 strategy,
♦ Researching similar
products,
♦ Identifying best location
for products
♦ Survey of buyers' studies
(Delphi method),
♦ Sales Force polling or
Expert opinion polls,
♦ Analysis of Time series
& Trend projections,
♦ Judgmental approach
MRP (Material ♦ Identifying potential ♦ Computer, ♦ Production ♦ Bill of Materials, ♦ Product Tree diagram,
Requirement suppliers ♦ Printer, material planner ♦ Inventory data, ♦ Establishing Gross
Planning)
♦ Preparing MPS (Master ♦ BOM software ♦ Supplier Lead time, requirement,
production scheduling) ♦ Customer order, ♦ Determining net requirement
♦ Inventory control ♦ Forecasted demand ((net requirement= (gross
requirement-(scheduled
receipts + on hand inventory) ,
* Time phase net requirements,

69
 * Determine the planned order
releases.
♦ Multi view drawing ♦ Problem identification and
♦ Computer, ♦ Isometric/axonometric recognition of need,
♦ CAD Software ♦ Mechanical drawing ♦Problem definition and
(Auto CAD, Solid Engineering ♦ Customer interest, conceptualization,
♦ designing necessary
Product Design work, Master cam, Designer, ♦ Available raw ♦ Geometric modeling,
tool and equipment
Sketch up) ♦ Manufacturing materials/inventory data ♦ Engineering analysis and
♦ Printer, Engineer ♦Available Machine optimization,
♦ Paper capacity, ♦ Prototype development
♦ Production process
Preparation ♦Bender machine ♦Bender machine ♦ Mechanical ♦ identify supplier ♦ Operational manual,
♦Multi-purpose lathe Engineering ♦ Technical specification
machines ♦Multi-purpose Designer,
♦Mixer machine lathe machines ♦ Manufacturing
♦Maize smashing ♦Mixer machine Engineer
machine ♦Maize smashing
machine
♦wheat harvesting
machine

70
 ♦ lathe machine ♦lathe machine ♦ Mechanical ♦ identify supplier ♦ Operational manual,
Engineer, ♦ Technical specification
Shaping
♦ Manufacturing
Engineer
Assembling - - - - -
Finishing - - - - -
Quality Control - - - - -
♦ packing and storing ♦ packing machine ♦ Mechanical ♦ selecting appropriate ♦ Standard packing template
products in appropriate ♦ packing materials Engineer, packing materials and
area ♦ shelf and cabinet ♦ Manufacturing machines
Packaging and
♦ store room Engineer
storage
♦ store keeper

♦ delivery by car, train, ♦ car ♦ driver ♦ selecting appropriate ♦ Standard Inventory control
Transportation airplane ♦train transporting mechanisms template

Marketing ♦ labeling ♦ printer ♦ computer ♦ internet

71
 ♦ labeling materials expert
♦ Maintenance ♦ Maintenance manual
After sell service
training

72
4.6.3 Technology Prioritization
The value analysis of technology constraints or gaps are collected, and ranked based on
the following parameters.
Table 4. 9Parameters for Technology Prioritization

No
Parameters

Marketability
1
Attractiveness to potential buyers of the product and services
Profitability
2
Able to yield a profit or financial gain
Capability and Usefulness
3
Able to be used for a practical purpose or in several ways
Functionality
4
The quality of being suited to serve a purpose well
Import Substitution
5
Able to replace the product imported from outside of the country
Feasibility
6
State or degree of being easily or conveniently done within MSE’s level
Adaptability
7
Able to adjust into a local condition
Potential Impact to the MSE
8
Able to strengthen the linkages with Micro Small and Medium Enterprises
Woman Empowerment
9
Able to offer equal rights to men and women
Employment
10 Ability to utilize available manpower including persons with disability and can
reduce the unemployment rate in the country

Hence, based on the above Parameters for technology prioritization; the major gaps of the
value chain are described below in table 4.7 in their degree of critical order.

73
74
 Table 4. 10Degree of critical order for technology prioritization

Main chain based on Rank order Over all rank of Rank

No Sub chain Over problem/gap prioritize
their rank of sub chain sub chain Over all

1 Input supply - - - - -
Survey team 1st 1st Survey team 1st
Market Survey
2 Demand forecasting 2nd 2nd Demand forecasting 2nd
Identifying potential suppliers 3rd 3rd Identifying potential suppliers 3rd
3 Preparing MPS (Master 2nd Inventory control
MRP (Material 5th 4th
production scheduling)
Requirement Planning)
Inventory control 1st Preparing MPS (Master
4th 5th
production scheduling)
Designing necessary tools and 1st Designing necessary tools and
4 Product Design 6th 6th
equipment equipment

5 Preparation - - - - -
6 Shaping Lathe machine 1st 7th Lathe machine 7th

7 Assembling - - - - -
8 Finishing - - - - -
9 Quality control - - - - -
10 Packaging and storage Packed finished product and 1st 8th Packed finished product and 8th

75
 store in appropriate area store in appropriate area
11 Transportation Delivery by car and train 1st 9th Delivery by car and train 9th
12 Marketing Proper labeling 1st 10th Proper labeling 10th
13 After sell service Service repairing and training 1st 11th Service repairing and training 11th

76
4.7 Role of Actors and Stakeholders in metal production
In implementing of metal production value chain there are different value chain actors
and stakeholders and have different contributions.

4.7.1 Role of Actors

i. Suppliers

Supplier delivers input materials to the market or to metal manufacturers in a timely and
cost effective manner.

ii. Producers

Producers are the main actors and manufacturers that produce metal products. These
metal product manufacturers are micro, small, medium or high industry level enterprises.

iii. Whole sellers / Traders

These actors provide/sells the end products or metal product from a manufacturer to the
market/end users.

iv. Users/ consumers/ end users

End users are the last actors who use metal products and metal technologies.

4.7.2 Role of value chain stakeholders

i. TVET Collages

The bureau of TVET perform value chain analysis, Provide short training based on their
gaps/ kaizen, entrepreneur skill, and develop different technologies.

ii. Universities

Universities play an important role in research and technology transfer that help to drive
manufacturing sectors. Specifically they provide in study, development and
implementation of value chain analysis for metal production.

iii. Loan organization /Financial Resources

77
These organizations give loan services the extent of financial resources and their timely
availability is very critical in building competitiveness of the cluster units. While
designing and offering support schemes, guidelines based on Micro and Small and
Medium Enterprises (MSME). Such loans should be linked to productivity related
investments.

iv. Bureau of Micro finance and Small enterprises

Those sectors Organize cooperatives facilitate financial service, preparing working

place /sheds.

v. Entrepreneurship Development Center (EDC)

This sector gives entrepreneurship training for micro, small and medium enterprises to
increase their entrepreneur skills.

vi. NGOs

The term NGO stands for non-governmental organizations, and it includes private
voluntary organizations, civil society, and nonprofit organizations. They provide funds
for different functions.

vii. KAIZEN institute

Kaizen institute gives training about kaizen principles for different sectors.

viii. SNNPR technical and vocational training Institute

This institute makes integration between the metal product manufacturers to other stake
holders like TVETS, loan sectors, universities and other governmental offices. Also
provide in study, development, technology development and transfer, research and
implementation of value chain analysis for metal production.

78
CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1.Conclusion
This study was carried out in Jinka city administration ,Debub ari, Weba ari and Hamer
bena werwdas of South omo zone to assess metal product value analysis in Jinka city,
Webihamer, Turim and Gazer town in metal manufacturing sectors of selected micro and
small enterprises and actors that are found in selected town. The study was based on the
cross-sectional data collected 38 individual’s enterprises were involved in this study by
simple random sampling techniques and Three polytechnic collage, Three Omo
microfinance, Three Trade and Industry department from each zone would be selected by
censes sampling techniques; and Three metal product suppliers and three metal product
users household would be selected by purposive sampling techniques would be selected
from this study. The purpose of metal Value chain study was to assess metal products
fabrication area in selected three Cities and identify potential products within the metal
fabrication sectors which could be improvement enhancing. Based on the value chain
selection criteria; there are four types of products are selected from those metal product
value chain were identified as potential product.

The study was additionally aimed at identifying issues which constrain the development
of the metal products. Finally, it assesses the possible role of actors, stakeholders and
technology interventions wherever necessary to increase the metal fabrication production.

Many problems looks in the study area, metal product manufacturing were identified in
this paper and the key findings are marketing and demand forecasting, material request

79
planning, identification of different production processes, product handling and storage,
and display and supply which in turn affects the productivity and competitiveness in a
market.

To alleviate constraints facing in metal manufacturing and to propose the best bench
mark, a number of related literature reviews have been carried out. As a result, Chinese
metal product manufacturers were reviewed and compared with selected study area AS-
IS metal product manufactures. In order to carry out the value chain analysis, a number of
data analysis methods were implemented. To mention few: mapping the AS-IS value
chain, mapping the bench mark value chain (To Be), Cause and effect analysis are the
major ones. Generally, following the analysis result, the study figured out that the bench
mark (To Be) has depicted a lot of gaps/constraints with its possible solutions and the
corresponding actors and stakeholders.

80
 5.2. Recommendations

On the basis of the findings, the following suggestions and recommendations are given to
government, stakeholders and actors to tackle the identified gaps and constraints in the
value chain:
 TVET college gives job-related training related to value chain analysis should be given to
those who participates technology production.
 Trade and Industry department should facilitate Proper assistance in the promotion and
marketing of metal products.
 Polytechnic College should Provide appropriate design technology, marketing, training
and education on development of high end products.
 Government should facilitate better facilities for this sector such as shed, road, electricity
and storage to manufacturing sites; workshops to promote the local producers.
 MSE should open their doors for TVET instructors, researchers and expertise; they
should also focus on quality product production system and continuous improvement.
 Universities should focus on industries linkages for giving quality manpower train and
practical research works; it helps to improve of MSEs.
 SNNPR technical and vocational training institution should coordinate effective value
chain analysis for technology innovation, adaption and transfer to TVET colleges.
 SNNPR technical and vocational training institution should give capacity building
 training in research, community service and etc… for TVET colleges.
 TVET office should give quality training to trainees in metal product manufacturing. The
training will produce a lot of qualified manpower.
 Enterprise and Industry development departments should facilitate working and
displaying are as for the MSEs so that they would enhance their production capabilities in

81
order to substitute the imported products and make capability to competitive in export
market.

REFERENCE:

Amit, R. &Zott,C. 2002. Wealth-creating business models and identifying opportunities.

In Hitt, M., Amit,R., Lucier, C. & Nixon, R. (eds). Creating value: winners in the new
business environment. Great Britain. Blackwell.

Coelho, E. 1999. Impact of information on the value chain of an enterprise in the new
economy. South African Journal of Information Management.

Hugo,W., Badenhorst-Weiss, J. & van Biljon, E. 2004. Supply chain management:

Logistic CS in perspective. Pretoria. Van Schaik.

Kaplinsky, R. & Morris, M. 2002. A handbook/or value chain research.

Lysons, K. 2000. Purchasing and supply chain management. England. Pearson

Education.

Porter, M. 2005. Competitive advantage: creating and sustaining performance. London.

Macmillan.

Asmamaw (2010), “Ethiopian Basic Metals and Engineering and technology challenges”.

GirumAbebe (2001), “Ownership, Management Practices, Upgrading, and Productivity in

the Metalworking sector: Evidence from Ethiopia” EDRI Working Paper 009, Addis
Ababa.

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Fransika (2006), “What is Competitiveness?” Boston

http://www.ehow.com/about_5435976_history-metal-art.htm

http://artsofthetimes.hubpages.com/hub/metal-art-history-of-decorative-metal-works

Appendixes
Appendixe-1

ቃለ መጠይቅ (Questionnaires)
ለአነስተኛና መካከለኛ ኢንተርፕራይዝ የተዘጋጀ መጠይቅ (Metal Fabrication)
1. የተሰማሩበት የስራ መስክ ፡የብረታ ብረት ስራ ማህበር
2. የኢንተርፕራይዙ ስም:
3. ኢንተርፕራይዙ የተቋቋመበት ዓመት ________
4. አድራሻ ___________ወረዳ_________ቀበሌ_________መንደር___________
የስልክ ቁጥር:
5. መጥየቁን የሞላው (የሰራተ ስም): የአባላት ብዛት:
ወንድ : ሴት : ድምር

83
 6. መጠይቁን የሞላው ግለሰብ የትምህርት ደረጃ___________________
7. የካፒታልምንጭ፡ ሀ/ ከመንግስት ለ/ ከቤተሰብ ሐ/ ከማህበሩ አባለት መዋጮ መ/ ከኦሞ መ/ፋይናንስ ሰ
/ ሌላ ካለ ይጥቀሱ ……………………………
8. ኢንተርፕራይዙ አሁን ያለው የካፒታል መጠን በብር ____ ቋም ንብረት_______
9. የምታመርቷቸው ዋና ዋና የምርት ዓይነቶች

10. እነዚህን የምታመርቷቸው ምርት ከምን አንጻር ወይም መነሻ ልትመርጡ /ልታመርቱ/ ቻላችሁ

11. ምርቱን ካመረታችሁ በኃላ ምን ዓይነት የማጠናቀቂያ ዘዴዎችን ትጠቀማላችሁ?

12. በምርት ሂደት ዉስጥ የማጠናቀቂያሥራዎችሥትሰሩ ያጋጠማችሁ ችግር ካለ

13.ከላይ ለተጠቀሱት ችግሮች የመፈትሄ ሃሳብ ነው የሚሉትን ቢጠቅሱልን?

…………………………………………………………………………...
………………………………………………………..........................
14 ምርቱን ካመረታችሁ በኃላ የማጠናቀቂያ ስራዎችን ለመስራት ተሞክሮ የወሰዳችሁትካለ

13. የምታመርቷቸው ምርት የገበያ ተፈላጊነታቸው ምን ያህል ነው

1. ከፍተኛ
2. አጥጋቢ
3. ዝቅተኛ
14. የምታመርቷቸው ምርት ተፈላጊነታቸው በምን ትገልፃቸዋላችሁ

84
1. በዋጋ
2. በጥራት
3. በምቾት
4. በሌላ
15. ምርቶቹን የሚታስተዋውቋቸው መንገድ ሀ. በደንበኞቻችሁ በኩል ለ. በተለያዩ በራሪ ወረቀቶች/ቢዝነስ ካርድ
ሐ. የድርጅቱን ባነር በመለጠፍ መ. በሬድዮና ቴሌቪዥን ሰ. ቤት ለቤት በመሄድ ረ. ባዛር ሠ. በሶሻል ሚዲያ
ሸ. ሌላ ካለ ይጥቀሱ
16. እነዚህን ምርቶችን ለማምረት ምን ምን ዓይነት የማጠናቀቂያ ማሽኖችን (የእጅ ማሳሪያዎችን) ትጠቀማላችሁ
____________________________
_____________________________
____________________________
________________________________
______________________________
17. የማጠናቀቂያ ሥራዎችን በምን ዓይነት የአመራረት ሂደት ትሰራላችሁ
1. በልምድ
2. በዕዉቀት
3. ሌላ ካለ ይገለጽ
18. የማጠናቀቂያ ሥራዎችን አሠራር ከየት ታገኛላችሁ/
1. ከተዘጋጀ አሰራር/ From prepared design (drawing)
2. ከተዘጋጀ ንድፍ/ From prepared sketch
3. እንዲሁ በግምት/ Simply by assumptions
4. ሌላ ካለ ይጥቀሱ
19. የማጠናቀቂያ ሥራዎችን ለመስራት አስፈላጊ የሆነ ነገር ግን ለእናንተ የሌላችሁ የማጠናቀቂያ ማሽኖችን
(የእጅ ማሳሪያዎች) ካለ

20. ምርትን ለማምረት ምን ምን ዓይነት ጥሬ ዕቃዎችን ትጠቀማላችሁ

85
 21. ጥሬ ዕቃውን በተፈለገው ግዜና ብዛት ታገኛላችሁ ወይ?
ሀ.አዎ ለ.አይደለም
መልሶ አይደለም ከሆነ ምክንያቱን ይጥቀሱ____________________________________________
___________________________________________________________
22. በቀጣይ ልታመርቱ የምትፈልጓቸው የምርትዓይነቶች ካሉ ቢገለጽ

23.ከምርት ሽያጭበኋላከደንበኛዎስለምርቱአስተያየትይጠይቃሉ
ሀ.አዎ ለ.አይደለም
መልሶ አይደለም ከሆነ ምክንያቱን
ይጥቀሱ___________________________________________________________________
____________________________________
23. ለምርቶቹዲዘይን (ንድፍ) ያዘጋጃሉ
ሀ. አዘጋጃለውለ. አላዘጋጅም
የማታዘጋጁከሆነምንድነውነውችግሩ
------------------------------------------------------------------------------------------------------------
----------------------------------------------------
24.ማጠናቀቅ (ፊኒሽንግ) ሂደቱንአብራሩልን ?
________________________________________________________________________
_________________________
28. ቅብለመቀባትሂደቱንአብራሩልን ?
________________________________________________________________________
_________________________
29. የመሻጫ ዋጋ ሂደቱን ምን መልክ አለዉ ;ሂደቱን አብራሩልን ?
________________________________________________________________________
_________________________
30. የምርት ጥራት አጠበበቂ ሂደቱን አብራሩልን
________________________________________________________________________
_________________________
31. ከብረት አቅራቢ ጋር የለችዉ ግንኙናት (የሽያጭ ,የብድር,,,,)ሂደቱን አብራሩልን

86
Appendixe-2

ቃለ መጠይቅ (Questionnaires)ለምርት ተጠቃሚዎች የተዘጋጀ መጠይቅ

1.የምርት ተጠቃሚዉ ስም:----------------------------------------------------------
አድራሻ ------------------------------------------------
የስልክ ቁጥር: ------------------------------------
2.የምርት ተጠቃሚዉ (የስራ ድርሻ): 1. አስተማሪ 2. ነጋዴ 3.አርሶ አደር
4.ሌላ-------------------------------------------------
3.የምርት ተጠቃሚዉ ፆታ 1. ወንድ 2.ሴት
4.እድሜ :(የምርት ተጠቃሚዉ) 1. 18 ዓመት – 25 ዓመት: 2. 26 ዓመት – 35 ዓመት : 3. 36 ዓመት – 46
ዓመት 4. ከ 46 ዓመት በላይ:

87
5. ምርቱን ለመግዛት ምን አነሳሳችሁ?

6. ምርቱን ከጥራት፣Finishing ,ከጥንካሬና ዋጋ አንጻር እንዴት ታዩታላችሁ?

7.ምርቱን ከገዙ በኋላ ያገኙት ጥቅም ካለ ቢገልጹልን
8. ምርቱ ከገዙ በኋላ ያጋጠሞት ችግር ካለ ቢገልጹልን
___________________________________________________________
___________________________________________________________

9.ለወደፊት በምርቱ ላይ በማጠናቀቂያ ሥራዎች ቢሻሻል ጥሩ ነዉ የሚሉት ነገር ካለ ቢገልጹልን

Appendixe-3

ቃለ መጠይቅ (Questionnaires) ለብረታ ብረት ጥሬ አቃ አቅራቢዎች የተዘጋጀ መጠይቅ፡

1.ብረት አቅራቢ ስም :,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
አድራሻ :,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
የስልክ ቁጥር: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
2.ትምህርት ደረጃ---------------------
3.ጥሬዕቃውንየምታስገቡትከሀገርውስጥነውወይስከውጭ ?
በሀገርውስጥናበውጭዕቃዎችላይያለውንልዩነትከጥራትናዋጋአንጻርእንዴትትገልጸዋለህ?

4.ጥሬእቃዎችንበብዛትየሚረከቡትእነማንናቸው? ማህበራት ከሆኑ በዝርዝርማህበሩን ቢትነግራን?

5.አብዛኛውንግዜየሽያጭስልትህበዱቤነውወይስቀጥታሽያጭ? -------------
በዱቤ ከሆነ ለማን-----------------------------------
4. ከውጭየምታስገባ (import) በምታደርጉበትሂደትላይያለውንተጨባጭተግዳሮትብታብራራው?

5. የገበያውመውጣትናመውረድበስራችሁላይያመጣውንመልካምወይምመጥፎውጤትብታብራራው:

88
Appendixe-4

ቃለ መጠይቅ (Questionnaires) ለማይክሮ ፋይናንስ የተዘጋጀ መጠየቅ፡፡

1.መጥየቁንየሞላው (የስራ ሀላፊ ስም):
2. የኃላፊነት ድርሻ
3.ፆታ :
4. መጠይቁን የሞላው ግለሰብ የትምህርት ደረጃ___________________
5.ለ MSE ተቋማትመለቲም metal fabrication and metal manufacturing
የብድርአሰጣጥምንእንደሚመስልብታብራራው?
6.የብድርአመላለሱሁኔታ በመለቲም በ metal fabrication and metal
manufacturing ምንተግዳሮትአጋተሙትያወቃልብታብራ

7.ተቋሙለጥቃቅንናአነስተኛኢንተርፕራይዞችየምታደርጉትየተለየድጋፍታደርጋላቸሁ ?
የሚደረግላቸውከሆነቢብራራ

8.ተቋመትየተበደሩትንብድርበተሰጣቸውየግዜገደብውስጥየሚመልሱበትሁኔታብትገልጽልን:-

89
Appendixe-5

ቃለ መጠይቅ (Questionnaires) ለቴክኒክናሙያት/ስልጠናኮሌጆችየተዘጋጀቃለመጠይቅ

1.መጥየቁንየሞላው (የስራ ሀላፊ ስም):
2. የኃላፊነት ድርሻ
3.ፆታ :
4. መጠይቁን የሞላው ግለሰብ የትምህርት ደረጃ___________________
5.በከተማችሁየሚገኙበብረታብረትዘርፍየተደራጁማህበራትንበ ማ ጠ ና ቀ ቂ ያ ሥ ራ ዎ ች (Finishing)
ከመደገፍአንጻርምንምንስራዎችተሰርተዋል?

5. የማህበራትንምርታማነትየሚጨምሩስራዎችንበተመለከተለምሳሌካይዘንንከመተግበርአንጻርየተሰሩስራዎችካ
ሉቢገለጽ?

7.የኢንዱስትሪኤክስቴንሽንድጋፍለማህበራትከመስጠትአንጻርምንምንስራዎችተሰርተዋል?

90
Appendixe-6

ቃለ መጠይቅ (Questionnaires) ለኢንተርፕራይዞችና ኢንዱስትሪ ልማት ቢሮ የተዘጋጀ ቃለ መጠይቅ

1.መጥየቁንየሞላው (የስራ ሀላፊ ስም):
2. የኃላፊነት ድርሻ
3.ፆታ :
4. መጠይቁን የሞላው ግለሰብ የትምህርት ደረጃ___________________
5. በከተማችሁምንያህልበብረታብረትዘርፍየተደራጁኢንተርፕራይዞችአሉ?

6.ከቴ/
ሙያተቋማትጋርበመተባበርቴክኖሎጂዎችንለማህበራትከማሸጋገርአንጻርእየተሰሩያሉስራዎችምንይመስላሉ?

7.በከተማችሁበብረታብረትዘርፍለተሰማሩብረታ ብረት አምራችማህበራትምንዓይነትድጋፍታደርጋላችሁ?

91
8.
በኢንተርፕራይዞችየተሰሩቴክኖሎጂዎችንወደተጠቃሚከማስተላለፍአንጻርምንዓይነትየገበያድጋፍታደርጋላችሁ?

9. ምርቶቹንስከማስተዋወቅአንጻርየፕሮሞሽንስራውምንይመስላል?

92
Machine Function

1  multipurpose Sheller machine

it Sheller s
 wheat
 barley
 rice
 sorghum
 beans
66
 maize

 Sheet metal rolling machine

 It will roll different kinds of metal sheet
into a round or conical shape.

3
 Shearing machine
 It will cut metal sheets

4  Chicken feed pellet making machine

It mill

 wheat
 maize
 barley
 rice
 sorghum
 beans
 bone etc…

5  twisting machine
 It twists metals into a different shape

93