ABSTRACT
This
research work aims at critically evaluating the process of production and the
extent to which the installed capacity of Nigeria Breweries utilized. The
study traced the historical development of the company, its range of production
and the extent which its capacity is utilized.
In collecting data for the research, two sources of data collection were
used. They are primary and secondary data sources. The primary data
were gotten through personal interview and observation, while secondary data
were collected from Nigeria Breweries Plc Enugu and other relevant materials
and information centres.
From the analysis of the data collected, the following findings were made.
1.
There is problem with the acquisition of the spare pars because of the
prohibitive price of foreign exchange.
2.
Poor Maintenance of frequent machine breakdown, statistics are not kept on the
performance of machine.
3.
Inadequate raw material which is one of the factors of the full utilization of
the installed capacity.
4.
Power failure breakdown on the installed capacity, their installation of 15mega
watts electric generating plants as a safeguard against intermittent power
supply from Power Holding Company of Nigeria (PHCN) the company still suffers
from Power Supply problem.
Based
on the above findings the following recommendation were offered after
analyzing.
1.
The rate of breakdown of machines will prevent the purchase of out model,
recommendation of periodic maintenance of machine should be adopted to reduce
incidence of breakdown.
2.
There is high cost of certain items like bear which makes the consumptions low.
It was recommended that the company should be doing a objective pricing of its
goods that it does not price itself out of the market.
3.
There is not enough training and development of staffs for proper handling of
the facilities of production industries it was recommended that enough training
and development of staff should be provided by the company. It will enable them
to shift emphasis on keeping track of manufacturing line cost of facilities of
production.
TABLE OF CONTENTS
CHAPTER ONE
1.1
Background of the
Study
1.2
Statement of the
problems
1.3
Objectives of the
Study
1.4
Scope of the
study
1.5
Research
questions
1.5
significance of the
Study
1.6
Limitation of the study
1.7
Definition of
Terms
CHAPTER TWO
2.0
Review Of Related Literature
2.1 Definition and Concepts
2.2
Production Planning and Control
2.3
Activities Involved in Production planning
2.4
Process Planning and
Design
2.5
Capacity Utilization
2.6
Material
Handling
2.7
Peak Versus Normal Lead Capacity
CHAPTER THREE
3.0
Research Design and Methodology
3.1
Research Design
3.2
Area of
Study
3.3
Population of the study
3.4
Sample Determination
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
3.10
Questionnaire Distribution and Retrieval
CHAPTER FOUR
4.0
Data Presentation and Analysis
4.1
Presentations and Analysis
4.2
Summary of
Results
References
CHAPTER FIVE
5.0 Discussion, Recommendation
and Conclusion
5.1
Discussion of Result
Findings
5.2
Conclusion
5.3
Recommendations
Bibliography
Appendix
Questionnaire
CHAPTER
ONE
1.0 INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Production
management refers to those activities that involve planning, organizing,
directing, integration, controlling, and evaluation of the entire process of
manufacturing goods or providing services at the right cost and in its right
time, quantity, quality and place. Production management is about in the
way organization produces goods and services. For instance, everything you eat
sit on, read and knock about on the sport field comes to you, courtesy of the
production managers who organized its production. Every book you borrow
from the library, every treatment you receive at the hospital, every service
you expect in the shops and every lecture you attend at school, all have been
produced. Production is all evolving. Which the people who supervised their
production may not always be called production manager, but that is what they
really are (production manager but that is what they really are) production
management is concerned with the organization of the use of equipment and their
resources. Production management is utilization of the highest production
resource at the least cost.
E. U. L. Imaga said that the performance of the managerial activities entailed
in selecting. Designing, operating, controlling and updating productive
systematically defined production management that it should be pointed out that
production first like any other field of study has many definitions as there
are participate in the field.
Mayer (1982), defined production with references to goods as the fabrication of
a physical object through the use of labour, material and equipment whereas
with reference to service, production is the discharge of the function, which
is utility. In either case something is being produced which did not exist
earlier from the above explanation, production is the transformation of
resources into finished goods and services. He also pointed out that any
organization which transforms inputs is engaged in production.
Buffa E. S. (1973) said that production is process by which goods and services
are created. He also stated further that production process are found in
factories, offices and hospitals. The primary aims of the production
management is to optimized the production system, the consequent result of
optimization is production efficiency.
The dictionary of business management defined production as any activity that
adds value to goods and services including transportation and warehousing until
it is used. Utility is the ultimate satisfaction derived from the consumption
of a particular goods and services.
Devck Labley (1974) said that the process of converting raw or base material
originally extracted from the earth, sea or atmosphere into form which yield
utility or satisfaction to consumer at a time and place convenience to the
consumer. The emphasis is still on the ultimate satisfaction of the
consumer which is what production is to bring about this transformation. In
some circumstance it is appropriate to produce goods by employed labour to the
other factors of production.
Production capacity according to Jerry Rosenbery is the available equipment,
the maximum quantity at unit that can be made on stated period the full
capacity of production is predetermined and install before the commencement of
production process, adequate planning and forecast is made to that effects.
The Dryder Press (1990), said that capacity widely understood by many people
can be seen as a ability of a unit to produce that which consumer require and
clearly there must be some match between needs characterized by market forecast
and ability characterized capacity. In this regard capacity can be by
differentiated into three level and they are as follows:
i.
potential capacity
ii.
Immediate capacity
iii.
Effective capacity
Potential
capacity is that capacity which can be made available with current budget
period.
Immediate capacity is that capacity which is used within the current budget
period.
Therefore, production management modifies production policies and some times
aids the production engineer to modify design as well since production
engineering is more concern with the design of physical equipment.
1.2
STATEMENT OF THE PROBLEM
Productivity
in a country as Nigeria as a matter of fact is low and as such as describe as a
developing economy. In countries where productivity is high we say such
countries have developed economy. In view of this, this research set to
examine the following problem:
i.
What are the problems encountered when putting the raw materials used in the
production process in Nigeria Breweries plc.
ii.
What are the problems of inventory management in Nigeria Breweries and what are
the problems of inventory management policies of the company?
iii.
What are the problems encountered in the utilization of the installed capacity
in the Nigeria Breweries Plc?
iv.
What are the problems in production process in Nigeria Breweries plc?
1.3
PURPOSE OF THE STUDY
The
purpose of this research work area as follows:
i. To
determine the process of production of Nigeria Breweries.
ii. To
ascertain to what extent the install capacity of the Nigeria Breweries is
utilized.
iii. To find out how the
Nigeria Breweries cope with the management of its inventories.
iv. To ascertain how the
raw materials used in the production process are sourced and substituted.
v. To make
recommendations.
1.4
SCOPE OF THE STUDY
The
research intend to under study the production process and capacity utilization
of the Nigeria Breweries Plc Enugu. The Nigeria Breweries is a very big company
with network of branches in some part of the federation. Carrying out a
study in all the Nigeria Breweries as a whole will be very time consuming and
cumbersome i.e it will entail traveling to some parts to obtain facts about the
Nigeria Breweries. Hence the research tried to cover production process and
capacity utilization in the Nigeria Breweries Plc., Enugu.
1.5
RESEARCH QUESTIONS
i.
How does Nigeria Breweries structure their product design to meet the demand of
present and potential customer.
ii.
How does Nigeria Breweries handle certain factors that can hinder or affect the
design of a product?
iii.
Since material handing are costly by nature how has Nigeria Breweries plc
minimize the handle of materials?
iv. In
what way has Nigeria Breweries plan and design their production to reflect the
operating strategy for the business.
v. How
does Nigeria Breweries estimate long range capacity production in relation to
the industry capacity.
1.6
SIGNIFICANCE OF THE STUDY
The
significance of this study is to analyze and evaluate the process of production
and capacity utilization in Nigeria Breweries as its seek to achieve a high
degree of efficiency of product. This study also analyze various
resources needed in production process and factors affecting its growth, tends
to attract in increasing interest of economist, industrialist and statisticians
in research. Prior to the attempt to analyze was the method by which
efficiency or problem of its evaluation as mathematically concerned. It is
important to give at least a brief but well concerned concept applicable to the
topic under review. There are many concept of efficiency. The term has
practice significance not only in enormous but also in sociology, enology and
other branches of sciences. The context of its study in a particular area
of study a research into production and capacity utilization (is necessary) is
necessary because man’s existence on earth cannot be assured with
production. Effective utilization of resources leads to less wastage of
resources and elimination of the facilities. The researcher considers it important
to carry out an investigation on the process of production and capacity
utilization because of its importance in an organization.
1.8
DEFINITION OF THE STUDY
Optimization:
Is the process
of achieving the best thinking
doing.
Capacity: This is the ability of an
organization to contain or hold the needs aid wants of its prospective
customers.
Utilization:
This is the ability of a firm to make use of its available resources to produce
good and services for the satisfaction of human needs and wants.
Productivity: This
is the rate of efficiency of work done, that is the output per unit of a
factory production.
Installation: This
is the process of position new production in an organization with the aim of
making profit.
Integrate: This is the act of combining
different factors or parts to make a whole.
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