As global competition become tightens every day, there is an urgent need for manufacturingrnoperations to continually striving to increase productivity and output of their operations.rnProductivity improvement should be a concern of every industry regardless of the type ofrnproduction, economic or political system. Productivity can either be improved through increasingrnthe output value by increasing the quality or quantity of products, or through decreasing the inputrnvalue by utilizing the resources effectively & efficiently. Well-organized use of availablernresources is one way of improving the productivity through capital resources of the company.rnThe productivity improvement has a great significance for Ethiopia footwear industries. In thisrncountry there are limited resources which should be used to get the maximum output i.e., therernshould be attempts to perform a job by cheaper, safer and quicker ways. The aim should bernoptimum utilization of resources, so as to provide maximum satisfaction.rnThe paper has examined how proper utilization of available resource improves the productivityrnof footwear industries that is demonstrated by taking peacock shoe factory as a case study.rnFootwear industry, as it is one of the potential economic sectors, it should be given properrnattention for sustainable development of the country. Thus, the purpose of this paper is to findrnout improvement areas in resource utilization activities that are considered as an immense factorrnfor performing under.rnThe productivity improvement in footwear industry can be approached by different methods. Onrnthis thesis productivity improvement through work study are done, because footwear garmentrnwork is labor-intensive and largely depends on the skills and sensibility of the operator. Thernproductivity of a factory is adversely affected by the advantage of the operators.rnThe topic of this master thesis originates from the practical problem that the company faced; thernmain intention of the thesis to show how productivity improvement can be achieved by analyzingrnoperation, process, time study, process organization (line balancing) and lay out.rnThrough balancing the production line, the line efficiency of peacock shoe factory can bernimproved from 44% to 81%. Finally by analyzing the results obtained framework forrnimplementation had formulated.