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EVALUATION OF AGRICULTURAL MACHINERY MAINTENANCE COST EFFECTIVENESS AT FINCHA SUGAR FACTORY, ETHIOPIA

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dc.contributor.author ABOMA, HAILU
dc.date.accessioned 2022-11-25T07:31:13Z
dc.date.available 2022-11-25T07:31:13Z
dc.date.issued 2022-03
dc.identifier.uri http://ir.bdu.edu.et/handle/123456789/14565
dc.description.abstract This study was undertaken with the objective to evaluate cost effectiveness of maintenance operations of agricultural machinery at Fincha Sugar Factory (FSF) through determination of lagging key performance indicators. The study was executed mainly based on secondary data records of FSF plus assessment of existing maintenance management practices through questionnaire survey. The study revealed escalation of maintenance operation costs without yielding similar work output was a major problem of the Sugar Factory. It also exhibited absence of a system or technique to evaluate cost effectiveness of maintenance works. The study resolute annual mean & study period mean ratios of result measuring lagging Key Performance Indicators (KPIs) such as Total Maintenance Cost/Total Output (TMC/TO), Total Maintenance Cost/Total Production Cost (TMC/TPC), Total Maintenance Cost/Total Revenue (TMC/TR), and Maintenance Labor Cost/Total Maintenance Cost (MLC/TMC) of 13 production years at FSF. Accordingly, the values of TMC/TO ration found to be 78.24, TMC/TPC become 25% while the result of TMC/TR and MLC/TMC was 21% and 31% whereas, the industry standard of some similar processing, chemical and manufacturing industries is 15–40 for TMC/TO, 10–15% for TMC/TPC, 6–8% and 20–25% in case of TMC/TR and MLC/TMC respectively. The broad indicators determined in case of FSF found above the limit of standard; which should have been equal or lower; and this indicated maintenance work of FSF was not cost effective. The study also revealed Fincha Sugar Factory was not practicing Maintenance Performance Measurement (MPM) to evaluate cost effectiveness of agricultural machineries maintenance operation to know the scale of its expenditures. Thus, it becomes important to deploy newly developed interlocked strategic framework of maintenance which has a provision to carry out periodical MPM in the maintenance management process of the Factory. It enable the Factory to control overall maintenance cost and in turn contributes to improve cane production and supply work profitability. The study can serve as a starting point to do research in the future using more production year data under other factories so that determine standard KPIs of agricultural machinery maintenance operations. Keywords: maintenance framework, maintenance cost, cane cost, cost effectiveness, performance indicator, industry standards. en_US
dc.language.iso en_US en_US
dc.subject MECHANICAL AND INDUSTRIAL ENGINEERING en_US
dc.title EVALUATION OF AGRICULTURAL MACHINERY MAINTENANCE COST EFFECTIVENESS AT FINCHA SUGAR FACTORY, ETHIOPIA en_US
dc.type Thesis en_US


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