Abstract: A well designed and executed Production Planning
and Control (PPC) system is one of the key levers for superior
performance in the current manufacturing set-up. Hence, measuring
the PPC system performance has become a necessity for long term
success. The present study examined PPC related issues which
impact the production capacity and productivity of leather companies
with special focus on Kombolcha Tannery Share Company (KTSC),
Ethiopia. Physical observation, interview, and questionnaire were
used to generate necessary information from the respondents and
reach valid conclusions. Company annual reports were referred and
analyzed to triangulate primary data. Consequently, the study
revealed that KTSC runs below its capacity due to its inefficient PPC
system being in use for which the root causes were identified. The
study thereby conceptualizes a PPC system improvement framework
comprising three pillars viz., management culture, internal capability
and performance measurement together with key considerations in
each case. The study findings enable the company to recognize the
importance of efficient PPC system as a source of competitive
advantage. It also aid managers in evaluating various PPC execution
schemes to enhance productivity.
Abstract: Data Envelopment Analysis (DEA) is one of the most
widely used technique for evaluating the relative efficiency of a set
of homogeneous decision making units. Traditionally, it assumes that
input and output variables are known in advance, ignoring the critical
issue of data uncertainty. In this paper, we deal with the problem
of efficiency evaluation under uncertain conditions by adopting the
general framework of the stochastic programming. We assume that
output parameters are represented by discretely distributed random
variables and we propose two different models defined according to a
neutral and risk-averse perspective. The models have been validated
by considering a real case study concerning the evaluation of the
technical efficiency of a sample of individual firms operating in
the Italian leather manufacturing industry. Our findings show the
validity of the proposed approach as ex-ante evaluation technique
by providing the decision maker with useful insights depending on
his risk aversion degree.