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Adopting modern management practices reduced quality defects by 43.1% (p = 0.001), lowered yarn inventory by 21.7% (p = 0.060), increased output by 9.4% (p = 0.026), and increased Total Factor Productivity (TFP) by 16.6% (p = 0.061), yielding an estimated annual profit increase of $325,000 per plant.
Experimental treatment plants increased output by 9.4%, increased Total Factor Productivity by 16.6%, and expanded annual plant profit by approximately $325,000, representing an average 130% one-year return on the market cost of consulting services.
Adopting baseline management practices increased total factor productivity by 16.6% within one year and generated an estimated US$325,000 increase in annual profit per plant, narrowing the TFP gap between Indian and US firms.