Raw Material Management In A Brewery Industry

Project and Seminar Material for Business Administration and Management BAM

Chapter One

1.0 Introduction

The major fact the characterize the parents economic science in Nigeria is the man reduction of workers under utilization of factory capacities profit margin closing down of so many factories lost/ shortage of very essential industrial out put and consumer good etc.

There problems emerged from how the level of productions in industries have be developing difficulties in the requisition and handling of raw material in any production process.

No organization or firm can effectively carry out its duty activities in an organized manner without the interruptions in the flow of raw material.

The position enquired by raw material in the process of production now become reality applicator when the coot of acquiring such amenities is been compared to its total cost of production.

According to the encyclopedia of management by Heyez (1983) raw material handling represent thirty-five to forty percent (35-40%) of all production cost sometimes it is or such or seventy-five percents (75%)

From the above we can now see the importance of raw material management

David farmer defined material management or the concept concerned with the management of flow of material into an organization to the point where there material are converted into the firms prod into the firms products it is only when management become successful to the problems encountered with there raw material management and critically examine the effects on other function of the firm.

Hence this study of given breweries plc material management method so see if there company with the generally accepted practical method and the effect of such on the production process.

1.1 Historical Background Of Guinness Breweries Plc

Guinness Nigeria plc was established in the year 1950 and or at then the duty was to import and distribute Guinness stout from Dubum for sale in Nigeria.

As a result of its great success in the sale of the imported bear (stout) in Nigeria it was decided that the above brewery was built at the cost of N2.4 million in 1961. he brewery started production in 1962 this made Guinness Nigeria plc one of the first companies in the world is produce guineas stout outside Britain.