Methodological Evaluation of Manufacturing Systems Yield Improvement in Ethiopian Plants Using Multilevel Regression Analysis

Manufacturing systems in Ethiopian plants have shown variability in yield across different settings. The study utilised a multilevel regression model, accounting for both plant-level and regional factors affecting yield. The model is represented as Yᵢⱼ = eta₀ + eta₁Xᵢⱼ + uᵢ + vⱼ + eᵢⱼ, where Yᵢⱼ represents the yield in plant i of region j, Xᵢⱼ are control variables such as raw material quality and labour productivity, uᵢ accounts for unobserved heterogeneity at the plant level, vⱼ captures regional effects, and eᵢⱼ is the error term. Robust standard errors were used to account for potential model misspecification. A significant proportion (35%) of yield variability was attributed to differences across regions, indicating that regional factors play a substantial role in determining plant performance. The multilevel regression analysis revealed the importance of considering both plant-level and regional factors for optimising manufacturing systems yields. This approach can help identify specific strategies to enhance yield uniformity across Ethiopian plants. Encourage data collection on region-specific challenges and opportunities, which will inform tailored interventions aimed at boosting overall yield performance. Manufacturing Systems, Yield Improvement, Multilevel Regression Analysis, Ethiopia