Guinness Nigeria PLC was in cooperated in 1950 and its duty then was to import and distribution Guinness stout from Britain for sale in Nigeria. Due to its great success in the sale of the imported stout beer in Nigeria, it was decided that the above brewery will built at the cost of N24M in 1961. The brewery stated production in 1962, this made Guinness Nigeria Plc one of the first companies in the world to produce Guinness stout outside Britain.
This factory was located at Ikeja (Ogbe) Lagos state, and as at then, it was producing only Guinness stout. The company become a public liability company in 1965, and was managed by Nigerians. This makes it possible for Nigerians to buy shares in the company, thus making Guinness Nigeria Plc one of the first companies to be quested on the Nigeria stock exchange market (then the lags stock exchange) one thousand Nigerians acquired some shares in the company totaling twenty percentage (20%) of the company as at the time.
Currently, seventy-five percent (75%) of the company’s share are held by Nigerians. The remaining twenty-five percent (25%) is owned by Guinness oversee limited Atlanta limited. Later in 1990, Guinness Nigeria limited went into the production of malt drink called “MALTA GUINNESS” which similarity is (100%) locally sourced. In the same year Guinness Nigeria limited was re-named Guinness Nigeria PLC in compliance with the provision if the companies and Allied matters decree (1990). Also in 1995, they embarked on the production of a new product called “SATZENRARY” which is one hundred percent (100%) locally sourced and the source will not discuss on it security reason. The product is no longer in the market due to its advertisement problem. The staff strength of the company as at 1962 when the Brewery first started was only twenty-five (25) persons, but at the time of this study the staff strength of the company standard at two thousand (2000) persons including junior, middle and top management staffs. The current products the companies are as follows:-
i. Guinness stout (Large and Small)
ii. Harp Larger Beer
iii. Guinness Malt
iv. Gordon Sparks
These problems of raw material management comes from his production levels in the industries are handled. There are some difficulties in the handling of raw materials in any production process. No organization or industry can effectively carry out its activities in a wall organized manner without the proper interpretation the flow of raw materials.
The role of raw materials in the production process becomes readily appreciated when we compare the cost of acquiring such amenities to the total production cost.
According to David Farmer (1991) he defined materials management as the concept concerned with the management of the flow of materials into an organization to the point where these materials are converted into the firms product. It is only when management becomes successful to the problems encountered with these raw materials management and critically examine the effect other functions of the firm, that the company will be said to have applied the concept of raw materials management in the production level of the firm. No enterprise can effectively carry out its activities in a well organized manner without the interruption in the flow of raw materials. The role of raw materials in the production process becomes readily appreciated when we compare the cost of production in any manufacturing company.
According to the encyclopedia of management by HEYEZ (1983), Raw materials handling represent thirty five of forty percent (35 – 40%) of all production costs. Some time, it is as much as seventy – five percent (75%). From the above, one recognizes the inevitable need for raw materials management which the researcher is gong to study the above named organization for the basis of this study.
A survey of the Brewery in Niger and Enugu State in particular reveled that little or no attention has been paid to the aspect of raw materials management.
Another problem is the federal government directives and raw materials contents in the production of beer should be hundred percent (100%) locally sourced.
Another area in which the Brewery has problem of raw materials management is the area of the application of inventory techniques and quality control, which minimizes wastage of cost. It is these problems and more that the research seeks to study.
The objectives of the study is as follows:-
1. To know the raw material management practices which Guinness Nigeria PLC is using.
2. To Examine the nature of the decisions made on raw materials sourcing and its cost effective to the organization.
3. To determine the impact on effectiveness and efficiency of the method and technique adopted by the company in raw materials management on workers output.
4. To determine the relationship between he raw materials acquisition, reasonable materials handling costs reasonable utilization of machines and reasonable production and service to customers.
1.4 SCOPE OF THE STUDY
This research study of raw materials management in Guinness Nigeria PLC will be limited to the main branch of the company, because of the financial aspects that is involved in carrying out this research work.
1.5 RESEARCH QUESTIONS
The following research question was raised on the course of this study.
1. Does the Guinness Nigeria PLC make decision based on financial statement on the importation of raw materials.
2. Is raw materials locally good enough in Brewery process?
3. What are the workers attitude to the locally sourced raw materials?
4. Does the problem of raw material management be solved through the application of raw material techniques?
5. Does impacts of cost saving scheme on locally sourced
| 1 - 5 of 96 Reviews |