Assessing the effectiveness of the production planning system in spinning mills: A case study at Bahir Dar Textile Share Company

Abstract

Within the textile manufacturing value chain, spinning mills occupy a strategically critical position; however, persistent operational inefficiencies including output delays, excessive inventory holding, and underutilized equipment frequently hinder performance. This study evaluates the effectiveness of the production planning system at Bahir Dar Textile Share Company (BDTSC) in Ethiopia. Adopting a mixed-methods case study design, primary survey data from 67 key stakeholders were triangulated with 12 months of archival shop-floor records. The findings reveal a significant operational gap between user perceptions and system performance. While respondents acknowledged moderate capabilities in basic production scheduling, objective metrics demonstrate systemic underperformance: actual production output reached 1,400 tons against a planned 2,000 tons (70.0% achievement), average machine utilization stood at 70.0% (against an 82.0% target), unscheduled downtime reached 1,425 hours per year, and inventory turnover remained low at 2.1 turns per year. Furthermore, delivery reliability was constrained by an On-Time In-Full (OTIF) rate of 62.3%. The analysis indicates that the planning framework suffers from a lack of real-time shop-floor integration, absent predictive modeling, and limited inter-departmental visibility. Rather than isolated adjustments, BDTSC requires targeted interventions, including modernizing IT-ERP infrastructure, establishing real-time inventory and maintenance tracking, and upgrading workforce analytical skills.