Improving Productivity in Automotive Manufacturing: A Combined Approach of Root Cause Analysis and Sem Models

Abstract

This study investigates the root causes of productivity decline in the automotive assembly section of a Nigerian industry, and proposes revitalization strategies and optimization models. Mismanagement in productivity measures, particularly in labour and capital, is a major cause of failure in manufacturing industries. The research methodology of this study utilized data collected through questionnaires, company records, and analyzed using Excel and MATLAB software, afterward, regression and SEM models were applied. From the result obtained, political factors, machine failure, and financial challenges were identified as the top root causes, with impacts of 20%, 18%, and 15% respectively. The models showed a good fit, with regression and SEM estimates of 95% and 90%. The recommended strategies indicated a direct relationship with the case study company and other manufacturing company factors and sections that makes up an industry, indicating a positive revitalization techniques and maintenance sustainability. The study recommends strategies include financial restructuring and technological innovation to enhance operational efficiency and align with industry standards.