AN EVALUATION OF PRODUCTION PROCESSES AND CAPACITY UTILIZATION (A CASE STUDY OF NIGERIAN BREWERIES ENUGU)

AN EVALUATION OF PRODUCTION PROCESSES AND CAPACITY UTILIZATION (A CASE STUDY OF NIGERIAN BREWERIES ENUGU)

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 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 (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 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:

(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)               To make recommendations.

1.4              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 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 with problems of inadequacy of every resource.

AN EVALUATION OF PRODUCTION PROCESSES AND CAPACITY UTILIZATION (A CASE STUDY OF NIGERIAN BREWERIES ENUGU)