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THE EFFECT OF COST REDUCTION TECHNIQUES AND PRODUCTIVITY IN MANUFACTURING FIRM

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THE EFFECT OF COST REDUCTION TECHNIQUES AND PRODUCTIVITY IN MANUFACTURING FIRM

 

ABSTRACT

 

This work was carried out to appraise the Cost Reduction Techniques and Productivity in a Manufacturing Firm. Cadbury Nigeria Plc. was chosen as a case study. The researcher is assessing the Cost Reduction Techniques and Productivity of Manufacturing Firm. Organization is faced with myriad of challenges. Some of these challenges are unexpected; others are complex issues that must be dealt with at various times in the business cycle. Regardless of whether it is unexpected or a regular challenge, each challenge will include variables that will require creative methods of navigating the complex challenges.

 

In today’s competitive world corporate and businesses are struggling  to maintain profits and healthy bottom lines. Cost of production, fuel, raw material and human resources is rising each year. These developments have prompted people to look for Cost reduction Ideas & methods. Those who have opted for focused cost reduction strategies have survived those who could not managed have perished. In recent economic down turn it becomes more important to make cost reduction program a major initiative in industry. Companies are finding it difficult to retain people and are laying off people which are un – precedence in recent history of industrial recession. Companies have to develop its own cost reduction program for savings without cutting jobs.

 

This research is primarily carried out to identify cost reduction techniques and productivity in manufacturing firms. Furthermore the study will identify factors that inhibit the accuracy of inventory which results in production shortages, premium freight, and often inventory adjustments.

 

The major issues that inhibit productivity in a firm are incorrect bills of materials, inaccurate cycle counts, un-reported scrap, shipping errors, receiving errors, and production reporting errors.

 

Information on the subject matter was obtained through extensive review of literature by different authorities and scholars who have carried out similar researches. Survey research design was used to carry out the study. Three hypothesis differences were postulated.

 

A sample of fifty (50) respondents was randomly selected from the pool of employees in Cadbury Nigeria Plc. they were administered questionnaires from which data was obtained. This data was-analyzed and the three hypotheses were tested. Tables were used for data presentation, simple percentage was used to analyze the data and the chi – square technique was used to test the hypotheses.

 

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