PROBLEMS OF ACQUISITION AND REPLACEMENT OF PLANT AND EQUIPMENT IN A MANUFACTURING INDUSTRY
This research is a study of the problems of acquisition and replacement of plant and equipment in a manufacturing industry. It is aimed at examining the activities involved in the production process with a view to using it in determining whether or not resources were fully utilized. It is also aimed at discovering the bottlenecks and weakness in the operations of manufacturing firms using Anambra motor manufacturing company limited as a case study.
This study has five chapters, which were combined to bring out all the ideals for a comprehensive work.
Chapters one contains general ideas of the study. It introduced the study and laid the foundation for the other chapters that appear in the other parts of the study. It contains three hypothesis which were tested in chapter four for statistical significance.
Chapter two reviewed related literature on the evolution of capital goods and investment appraisal techniques to be used in capital budgeting.
However, chapter three is on the research methodology, population size, sample size and measuring instrument used in the study. To make the study possible, survey research method was used based on the sample size of fifty two respondents.
Questionnaires were used as the research instruments administered, data collected, analyzed and interpreted in chapter four.
Chapter five deals specifically with summary, conclusion and recommendation.
1.1 Background of the Study
The establishment of a consistent industrial system in which technology is fully understood is the primary objective of many developing countries. According to Omorodion (1986) an industrial system is a body of capital goods industries (Metallurgy, engineering, building and public works) of intermediate goods and consumer goods which are linked together by buying and selling relationship.
There are many obstacles to the emergence of an industrial system. In this study, they will be grouped into two, namely external and internal obstacles. External obstacles are likened to the world economic crisis. The fragile nature of the economy has resulted in industrialized countries altering their production system, thus, modifying the production system or methods and the distribution of industrial products. These are noticed in monetary imbalance, the drop in exports of manufactured products and the reduction of outlets. The bad economic situations experienced by the industrialized countries bounce back to the developing countries.
The situation is worsened by the continuous deterioration in he terms of trade, increasing indebtedness and the difficulties in the payment of debts. It is clear that inordinate increases in interest rtes are causing considerable problem in the debt management. Some of them have instituted austerity measures in order to avoid bankruptcy. In Nigeria, the structural Adjustment progrmme measure was introduced by the Babangida administration.