An Evaluation Of Production Processes And Capacity Utilization
(A Case Study Of Nigerian Breweries Enugu)
TABLE OF CONTENT
1
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
List of tables
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
1.2
Statement of the problem
1.3
Purpose of the study
1.4
Scope of the study
1.5
Research hypothesis
1.6
Significance of the study
1.7
Limitations of the study
2
References
CHAPTER TWO
LITERATURE REVIEW
2.1
Definitions and concepts
2.2
Production planning
2.3
Process planning and design
2.4
Inventory management
2.5
Capacity utilization
2.6
Production planning and activities in Nigerian breweries plc.
References.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1
Research design
3.2
Area of the study
3.3
Population of the study
3.4
Sample and sampling procedure
3
3.5
Instrument for data collection
3.6
Validation of the instrument
3.7
Reliability of the instrument
3.8
Method of data collection
3.9
Method of data analysis
References.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1
Data presentation and analysis
4.2
Testing of hypothesis\
4.3
Summary of results
References
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1
Discussions of results / findings
5.2
Conclusion
4
5.3
Implications of research findings
5.4
Recommendations
5.5
Suggestions for further research.
Bibliography
Appendices.
CHAPTER ONE
INTRODUCTION
The result of the tendency of people to consume is to increase the capacity of
production in the various aspects of human need. There arose the separation of
management from ownership in this production function. A further
development is the growth, organizational complexity and size, thus large
organizations, management is divided into production, personnel management
and finance as well as marketing. Other specifications are made as
organizations need for them arises.
Production management is essential and basic to all organizations
whether it is manufacturing or service. It should be pointed out that the survival
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of organization is dependent on how its production processes are managed.
Barry Shord explains operations management in his book thus “any
organization which transforms inputs into output is engaged in production”.
Percentage of capacity utilization measure relate output measures to
inputs.
The brewing industry in Nigeria has passed through a stage of total importation
of a foreign products to stage where some beer manufacturing companies now
source their raw materials locally.
BARRY SHORE: Operations Management MC Graw Hill, International
Company 1985 pg.30
1.1
BACKGROUND OF THE STUDY
Nigerian Breweries Plc was incorporated first as Nigerian Brewery Limited on
the commencement of operations in a second Brewery in Aba in 1957. In
accordance with the Companies and Allied Matters Act of 1990, the name was
again changed to Nigerian Breweries Plc. Since the formal incorporation in
1946, 50 momentous years that saw the company grow from its modest
beginnings into the giant company that it is today. The company now does five
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(5) breweries from which our highly refreshing quality brands are distributed to
all the nooks and crannies of this great country.
The company of my case study, Nigerian Breweries Plc has kept pace
with the key international developments, thus ensuring that our systems,
processes amd operational procedures are always in conformity with proven
best practices in the most parts of the world. This has been evident in the vision
and professionalism demonstrates in the way the business has been managed
in the past 50 years.
The company now has a portfolio of five high quality brands: Star, Gulder,
Maltina and Amstel drinks and Legend Extra stout. Together they have
facilitated leadership position in the total brewed products markets in Nigeria.
The outstanding quality and consumer franchise complement other companies
and capabilities to set Nigerian Breweries apart as the house of quality the
house that star built.
Alongside, there developments has been a corresponding growth in the
prosperity of company’s shareholders whose funds have appreciated into
values for excess of their original investment. They have also had the good
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fortune of reaping excellent dividends on these blue chips shares year on –
year.
1.2
STATEMENT OF THE PROBLEM.
Productivity in this country Nigeria as a matter of fact is low and as such it is
described as a developing economy, in countries have developed economies. In
view of this, the research is set to examine the following problems:
1.
What is the extent of the utilization of the installed capacity in
Nigerian Breweries Plc?
2.
What are the resources of raw materials used in the production
process in Nigerian Breweries Plc?
3.
What are the steps in the production process of Nigerian Breweries
Plc?
4.
How are the inventories managed in Nigerian Breweries Plc and what
are the inventory management policies of the company?
1.3
PURPOSE OF THE STUDY.
The purpose of the research work are as follows:
8
(1)
To ascertain the extent to which the installed capacity of
Nigerian Breweries Plc is utilized.
(2)
To examine how the raw materials used in the production
processes are sourced and sustained.
(3)
To determine the process of production of Nigerian Breweries
Plc.
(4)
To find out how the company of study copes wit the
management of its inventories.
(5)
1.4
To make recommendations.
SCOPE OF THE STUDY.
The study is based on the Nigerian Breweries Plc Enugu and our data will be
collected their. Therefore, the survey will specifically broaden on planning and
controlling techniques and it is hoped that results arrived will be true of the
Nigerian Breweries Plc Enugu.
However, controlling system in profit seeking organizations are highly
developed because of clear organization goals or objectives dominance by
professional and difficult in the measurement of standard. As a result, budgeted
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expenditure (standard expenditure) will be used to compare actual performance
(actual expenditure) using the programme planning and budget system.
This study like every other human academic quest is faced wifth problems of
inadequacy of every resource.
Taking into account the academic standard of the researcher, the scarcity
of information and unavailability of certain sophisticated control system in
companies. This work will discourse only the easier and a standard of a
students in the project writer status.
1.5
RESEARCH HYPOTHESIS
Null Hypothesis
Ho:
The company’s process planning and design does not take place by the
advice of its technical partners.
Alternatives
Hi:
The company’s process planning and design take place by the advice of
its technical partners.
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Null Hypothesis
Ho:
The level of product / services quality is not high
Alternative
Ho:
The level of product / services quality is high
Null Hypothesis
Ho: Capacity utilization is not slightly above average.
Alternatives
Hi:
Capacity utilization is slightly above average
1.6
SIGNIFICANCE OF THE STUDY
The significance of this study is to analyse and evaluate the processes of
production and capacity utilization in Nigerian Breweries Plc as it seek to
achieve a high degree of efficiency of production. In a world of dwindling
ventures questions revolving on efficiency of production and factors effecting
its growth tends to attract the increasing interest of economists, industrialists
and statisticians and researchers.
11
Prior to the attempt to analyse ways and methods by which efficiency or
effectiveness of production are determined by and problems of its evaluations
as mathematically conceived. It is needful to initially give at least a brief but
well conceived concept applicable to the topic under review.
There are needed many concepts of efficiency. The term has practical
significance not only in economics but also in sociology, ecology and other
branches of science. The contents of its study on a particular are of study.
A research into production and capacity utilization is necessary
because man’s existence on earth cannot be measured with production.
Effective utilization of resources leads to less wastage of resources and
elimination of idle facilities.
The research deems it pertinent and important to carryout an
investigation of the processes of production and capacity utilization because of
the aforementioned importance of production.
1.7
LIMITATIONS OF THE STUDY.
A study of this magnitude and scope could not be carried out without
encountering problems that tends to hinder the progress of the study or the
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volume that would have been covered by the researcher. These problems range
from personal to environmental constrains. A look at these problems will only
tell so much about our level of under development.
FINACE
As a result of serious constraints of finance, the researcher would have done a
critical comparative study of the firms narrow the study down to Nigerians
Breweries Plc with its factory here too. The financial constrains in this regard
bordered a little far away from the base of the researcher.
TIME.
Time was another problems encountered by the researcher so as he had to be
doing the balancing act of missing her lectures so many days in search of data
of Enugu and other places. Nigerians Breweries Plc being a public limited
company operated between Mondays and Fridays and these are days of normal
lectures go on in the campus. This created a great deal of problems for the
researcher.
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Also, in relationship to the time constrains, the researcher sometimes made
futile moves at getting at the respondents who either complanined of being too
busy to attend to the researcher or weren’t on seat.
RESPONDENTS.
Some of the respondents were not forthcoming with the information required
by the researcher. The interview respondents hoarded information that they
considered sensitive to the researcher for fear that such could get intof the
hands of their competitors. They added that if they consider the information
non-sensitive they might release such to their researcher.
Attempts by the researcher to convince the respondents that the exercise
was purely academic proved abortive. However, he was able to continue with
the much he was given.
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REFERENCES.
1.
Arrow K.J. (1987) Research in Management Control: A critical
Synthesis, (Dryden Press) p. 140, England, Europe.
2.
Drucker P.F. 1978) Control and Management (MC Graw Hill) P.78,
New York.
3.
Elion S. (1979) Management Control England Penguin Press Ltd
p.16, Britain
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