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.