PROBLEMS FACING MANUFACTURING ORGANIZATIONS IN NIGERIA (A CASE STUDY OF DOYIN INVESTMENT NIGERIA LIMITED)

CHAPTER ONE

1.1     INTRODUCTION

One of the major problems facing manufacturing organizations in Nigeria is how to get raw materials for production.

It is on record that many manufacturing organization have decided to reduce their production or close down as a  result of inadequate supply or  total lack of  raw materials, these has affected employees in these organizations. The economic down turn which had led to the introduction of structural adjustment programme had necessitated the introduction of such raw materials research and development council (RMRDC) which was established in the yea 1981 with the primary mandate to promote the development and utilization of Nigeria industrial raw materials and to provide industrial support based investment in all the states of the federation. The effort of the council has significantly widened in respect of the raw materials base for the manufacturing and service rendering organization.

It is then responsibility of the purchasing manager to ensure that the materials are purchased and delivered to the organization at the right time in order to carryout this  function effectively, there is need for although suitable market research to find a source or source from where the material can be obtained through the sourcing technique.

1.2 STATEMENT OF THE GENERAL PROBLEM

          The most common and general problem affecting sourcing in Doyin investment Nigeria limited, Ilorin are the following.

1. Problem of allowing the non professionals to function: this problem arises in a situation where the organization is using  is using non professional for sourcing function resulting in poor selection. Or the suppliers
2. The problem of constraint price inflation by the suppliers on the pretence that price has gone up
3. Problem of specification: in accurate specification of materials leads to sourcing unerring g or wrong materials which does not meet the organization latude for creating an arms supplies and need. Co sequencing and arms suppliers and need. Consequently considerable consist and effects and lost.

1.3     HISTORICAL BACKGROUND OF DOYIN INVESTMENT NIGERIA LIMITED

          The doyin investment Nigeria limited Ilorin was sited along Asa-dam road, Ilorin Kwara State. The company which specialized in the production of soaps extra power flash hi clean, vogue, dentol- clean and wash right.

The company was incorporated in October 1984 by the federal government of Nigeria under commerce an the industry law in 1985, will the plants were required into the staff and the process of installation stated immediately. The  commissioning  of the industry was done toward the end of 1985. This industry is under doyin group of company, the head office is at Lagos. Doyin is from kwara state. He decided to site, the industry in the state capital for the purpose of reducing the problems of unemployment within and outside the state. The organizational structure of the company shows the forcing musical management who is at the head of the industry. The responsibilities of the whole organization rest on him. He is the only person that gives orders on any important issues may be when there is any purchase of capital equipment of if they are going to purchase a large quantity of raw materials involving thousands of naira.

After the general manager production manager and auditing control manager are the next the technical manager is the electronically engineering store. The store supervision port directly to the technical manager whenever there is any need to purchase costly equipment or tools.

1. The production includes:-
2. Flash cartoons for packing the detergent in case.
3. Inner cases to which the scalp or the detergent itself is being packaged
4. Policy product (wash right bags) is used to pack the detergents that were not in to cartons it is weighted in kilogram (500kg).

B. The component of the raw materials stores.

i. stop (sodium tripolifo stato)

ii. Sodium silindicate

1. Glue
2. Blue crop
3. Blue dye

All these raw materials that are kept for the production process in  the raw materials store until they came to request for them from the production shop floor.

The quality control manager, in collaboration with design and engineering department work on quality chemical that should be used, the  designing packaging and packages. What types of colour will attract customers dimension of the carton hardiness so that it does not just get pilled any how. The quality control department forecast the amount of raw materials to be used as it is always happing in all organization on stores department will supply the entire documents connected with the purchase of raw materials and stationary to the account department so that the necessary funds is given to them to buy from outside organization. All these decumbent are not given to the accounts department alone to supply money from the purchase but the account department uses it for preparation of the annual budget.

In every department there are supervisor monitoring the affairs of clerks and other cleanses