Statistical Analysis On The Production And Sale Of Flour Between 2005-2010 (A Case Study Of Dangote Flour Mill Plc Ilorin)

Project and Seminar Material for Statistics

Statistical Analysis On The Production And Sale Of Flour Between 2005-2010 (A Case Study Of Dangote Flour Mill Plc Ilorin)


This research production and sales of flours in Dangote aimed to determine whether there exist a relationship between sales and production of flours and also to determine if there is increase in the sales and production. Regression analysis and product moment correlation coefficient were used to analyze the data. The results of the analysis revealed that there is perfect correlation between the sales and the production of Dangote flours and also regression analysis revealed that there is linear relationship between sales and production. We there by recommend to the Management Board of Dangote Flour Mille to increase their production force in order to increase their sales in the nearest future.

Chapter One

1.1 Introduction

The production of flour for bread, cake, and the backed food mainly from wheat which is the major materials used by the miller. Wheat is the most important and widely cultivated of the world’s main cereal crop. It is grown in every climate from cold regions like USA, Canada, Russia etc and extreme heat region like India.

In characteristics the wheat may be regarded as hard or soft, strong or weak and to the miller of baker its most important qualities are its strength, colour, flavor and of cause the amount of flour it will yield (Milling Journal 1997).

Wheat is grain like other grains e.g rice, millet, maize etc. the purpose of milling endosperm gradually into flour with minimum or no contamination of the brain, which is the wheat cover.

Dangote flour mill Ilorin is making used of hard red winter (H.R.W) wheat called friticum gestium which is the botanical name for it, to produce its product like bread, flour, Danvita (semolina) and brain.

Shortage of cassava flour coupled with surging wheat prices at the world market are adversely affecting the operations of flour milling companies in the country. In the flour mills industry almost 90% of the raw materials are imported because Nigeria’s climate is not viable for the production of wheat. There for rising price of wheat is therefore a major challenges begin faced in the industry as a ton of wheat is currently priced at between $180 and $240

1.2 Aims and Objectives of the Study

The main objective of the study is to carry out a research work in order:

  1. To know relationship that exists between the flour production and sales
  2. To determine the strength of their relationships
  3. To know the effectiveness of statistical tool used for the analysis of data
  4. To know whether there is occurrence of significant difference between production X and sales Y

1.3 Statement of Problem

One of the major defects in flour production in Nigeria is unavailability of raw-materials as a local content (not grown locally) and the cost involved in the importation of cereal (wheat) from other part of the country.

Moreso, high cost of machine spare parts as well as power, coupled with the problems of distribution of products encountered by sales the department and the problem of bad road, are some of the major problem affecting the distribution and sales of flour.

1.4 Statement of Hypothesis

  1. There is relationship between the sales and production of flour at Dangote flour mile
  2. To test whether the production of flour is independent of time
    Alternative Hypothesis: To test whether the production of flour is dependent of time
  3. Null hypothesis: To test whether the sales of flour is independent of time
    Alternative Hypothesis: To test whether the sales of flour is dependent of time

1.5 Scope and Limitations of the Study

Data used for this project work is mainly secondary data. Extracted from production and sales Department Dangote flour mill, Ilorin for the period of (2005-2010).

The data covers only one month, partly because it refers to daily occurrence and partly because of some other condition which include:

  1. Time consumed to visit Dangote flour mill for the extraction of facts. It took series of appointment in consulting one department to others. At end little data was released.
  2. Re-booking of appointment: Due to assignment lectures and other academic activities sometimes miss the appointing time therefore, I need to re-book another day of appointment.
  3. The general problem of not wanting to release data.

1.6 Definition of Terms


A genetic term applied to wheat, which is due to variety of characteristics.


A process less elaborate conditioning which produce desired physical champ in wheat by means of (10 water addition and two (2) time for penetration).


The embryo extracted from the grain kernels (wheat)

Flour Milling

Is a mechanical manufacturing process, which produces flour from wheat through comprehensive stage of fonding and separation


Particles of endospermic which have been extracted from the bran as a break rolls which have get to be reduced to flour fineness.


Foreign materials in the wheat that is removed during process of cleaning.

Danvita (Semolina)

A course separation of endosperm extracted from wheat.

Combi Cleaner

It is the combination of three-machine stronger, separator and the concentration.


It is the final means by which the finest particles are separated from the conveying air.


It is the unit of bins which flour are stored before transfers to and packing bins from bagging out according to Gem.


It is the part of the kernel that makes white flour

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

Having applied the two analyses of the data collected the following are the result obtained from my findings.

The computation r = 0.95 of the correlation coefficient analysis shows a perfect relationship occurrence between production and sales and rejection of Ho arises as a result of t calculated = 10.970 greater than t table value at 2.160. Therefore we would reject Ho an conclude that there is a general correlation between the product X and sale Y at 95% level of significant.

The ANOVA table of the regression analysis shows that the test statistics = 12.79 is greater then that of f.table value 4.67 this also means that we would reject Ho and conclude that the regression model is significant to both sale and production data at α = 0.05 level of significant.

5.2 Conclusion

It could be concluded that the production and sales of the flour products are linerarly correlated and this shows that increase in the production is usually assocaited with the increase in the sales.

It is also shows the increase in the discovery of the usefulness of their products by local and international end user due to the richness in vitamins used to fotify their flour.

5.3 Recommendation

In view of the results obtained from the analysis and the relationship that exist between productions and sales I hereby recommend the following which could aid production and also sales of the products in the company.

  1. The authority of the company should put more facilities (human and materialistic) into their statistical and quality control unit to improve productions and sales of the flour products in the company.
  2. The company management board of authorty should also try as much as possible to maintain the relationship that exists between production and sales of flour, by improving the product always.
  3. And lastly they should also try to accept the recommendations and conclusion made. And also to be educated about the need of expert (statistician) in the area of data and interpretation.

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