Firm productivity is an essential indicator of the strength of firms to stay in operation in local and international markets. Managers coordinate the application of labor, capital, and intermediate inputs. Incapability to well control, coordinateas well as plan these resources significantly reduces plantefficiency and finally lower productivity.The purpose of the study was to investigate the existing system and improve productivity in Yirgalem Addis textile factory plc. In this study descriptive research design was adopted to identify the major determinants factors that significantly affect productivity at Yirgalem Addis textile factory plc.In terms of data, the study relied on primary data collected using structured questionnaires. The tool was pre-tested to ascertain its reliability and validity. Data collected was checked for errors and omissions and then coded before applying Statistical Package for Social Sciences (SPSS) analysis.The study results showed that out of 13 determinant factors, nine independent variables were found to have significant relationship with firm productivity. Insufficient skill gap training to technician, spare part scarcity, frequent machine downtime, poor preventive maintenance experience and inadequate skill of the maintenance personnel were among the major problems. Following thisresult, the appropriate productivity improvement technique that could address the major problem was selected and possible solution was suggested. After that TPM implementation plan was developedso as to address the problems and improve the productivity of the plant. Finally, as the result of regression analysis shown, Yirgalem Addis Textile factory, after successfully implementation of TPM,could improve the current OEE level of blanket plant (54.99%) to 82.7%.