Analysis of the Production Performance of Manufacturing Textile Products, Bahir Dar Textile Share Company, Ethiopia

Background: The textile industry is the world's second-largest employer, a critical component of a country's economy, and provides numerous job opportunities. The study's goal was to analyze the production performance of the Bahir Dar textile share firm by examining how operational factors influence productivity in spinning, weaving, finishing, and garment manufacturing. Method: This analysis used secondary data on the performance of textile manufacturing from January 2016 to December 2023. VAR models were used. While putative causal relationships were investigated using Granger's causality tests. Furthermore, the short-run interactions between the variables were discovered using impulse response analysis. Results: The unit root tests of the studied series show that all of them were stationary after the first difference. The correction factors for garments, finishing, weaving, and spinning were -0.43, -0.33, -0.84, and -0.22, respectively. The lack of power, mechanical, and water supply had a severe impact on the spinning production process. The Granger causality test revealed that in the long run, spinning forecasted weaving, weaving forecasted finishing, and finishing predicted garmenting. Conclusion: Mechanical faults, a shortage of electricity, a lack of water supply, and an insufficient supply of air to textile industry machinery all have a negative impact on product performance. The company should place a high priority on factors that increase productivity.