FACTORS AFFECTING BRICK PRODUCTION AT TRADITIONAL NORTH SINDH RED BRICK KILNS

Abstract

This research is conducted to check impact of inputs (costs of production) on the total brick production at an average kiln using Cobb Douglas Production Function. Overall North Sindh kilns experience IRS (increasing returns to scale) with elasticity of production 1.09. It is sum of coefficients of all factors (costs) of production. Variable Cost is 27%, 16% and 12 % of total COGS for small, medium and large kilns. COGS is the final kiln cost. Largest cost for all small and medium kilns is labour cost as 36-40% of the COGS. For large kilns it is fuel cost (39%).Second largest cost for small, medium and large kilns is FOH (17%), fuel(34%) and labour cost(36%) respectively. Least cost for small, medium and large kilns is clay (3%), water cost (0.9%) and water cost (0.4%). R square is.995. Aggregate hypothesis tells there is relation between X variables and Y (no any Beta is 0). Land rent, maintenance and transport cost have negative relation with total production level. Labour is the most powerful variable. Only labour, capital, clay and fuel costs are significant in The Model.