Production Optimization and Corporate Productivity in the Nigerian Manufacturing Industry

Eretan, Gbenga Ologbon, Babajide D. Adesina


Production optimization is a required process in any manufacturing sectors; it involve challenges that manifested in form of seasonal variations, size of market, unpredictable circumstances, challenges of dynamic modern technology that provide competitive edge in the industry, other break through strategies and much more. Production optimization involves production planning and control which is defined as planning, direction and coordination of firms’ resources towards attaining the set objectives. In Nigeria, manufacturing sector has been characterized by low quality products, lack of continuity and high cost of production which is traced to unscientific method of production and lack of product planning. The objectives of the paper are to determine the impact of production optimization (PO) on corporate performances (OP) and also to ascertain the relationship between production optimization practices (Pop) and product quality (PQ).Data were sourced from primary sources using questionnaire as the instrument of data collection. Structured questionnaire were administered in the manufacturing companies used as case study (Cadbury Nigeria PLC, Guinness Nigeria Plc, Honeywell Flour Mill PLC and Vitafoam Nigeria PLC). Data collected were analyzed using non parametric statistical tool of Chi Square on Statistical Package for Social Scientists (SPSS 20.0). It was discovered that Production optimization (PO) has significant impact on organizational performances (OP) and that production optimization practices has help management to achieve organization goals and responding to threats and opportunities in the industry. Therefore it was recommended that proper production planning and control that rely on empirical research should be performed from time to time in other to improve and enhance the competitive edge.

Keywords: Production optimization, corporate performances, organization profitability, organization efficiency

DOI: 10.7176/EJBM/12-21-11

Publication date:July 31st 2020


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