Productivity improvement through optimum utilization and labour in beverage industry in Uganda; a case study of Nile Breweries and Coca Cola limited
Abstract
Productivity has often been cited as a key factor in industrial performance, and actions to
increase it are said to improve profitability and the salary earning capacity of employees.
The purpose of the study was to determine productivity of the beverage industry through
optimum utilization and labour at Nile breweries and coca cola in Uganda. The objectives
of the study were; 1) to determine the factors that affect optimum utilization of machines
at Nile breweries and coca cola, 2) to explore the factors that affect labour productivity at
Nile breweries and coca cola, and 3) to suggest the best practices that can be used to
improve productivity through optimum utilization of machines and labour productivity at
Nile breweries and coca cola. The study applied mixed methods research by collecting data
from one alcoholic and soft beverage companies. The purpose of this was to generate
results that gives a general picture for the whole beverage industry. It believed that some
processes in the alcoholic beverage manufacture and soft beverage manufacture differ and
therefore using data from the two sides gives results that are less biased. The found out that
production planning, maintenance planning, and batching and number of workers running
each machine significantly affect optimum utilization at Nile breweries and Coca-Cola.
Regression results confirmed the overall insignificancy of these factors on optimum
utilization. Results further indicated that hours worked per day, Optimum energy utilization
and savings, Material handling system, size and capacity of the plant and technology used
significantly affect labour productivity. Regression results indicated the overall
significance of these factors on labour productivity. The best practices for productivity
improvement are; computer integrated manufacturing, job design, and employee
motivation. The study recommended that effective implementation of production planning
and control will improve the overall growth of the beverage production companies through
improved productivity by optimum utilization.