LINE BALANCING RISKS AND PERFORMANCE OF MANUFACTURING COMPANIES IN OGUN STATE, NIGERIA

H.N Nzewi, O.M. Chiekezie, B.I. Akinroluyo

Abstract


This study examined the effect of line balancing risks on organizational performance in selected manufacturing companies in Ogun State, Nigeria. Specifically, it investigated the effect of buffer allocation on profit margin and determined the impact of task distribution on return on asset (ROI). To achieve the objective, the study employed descriptive and inferential statistics. Data were retrieved from annual report of Dangote Cement plant Ibese, Ogun state Nigeria from 2019 to 2022. The data were analyzed through the use of Statistical Package for Social Science (SPSS) version 25, while simple linear regression analysis was used to test the hypotheses formulated. Result of the findings revealed that there is a strong positive relationship between buffer allocation and profit margin and there is strong impact of task distribution on return on investment with the co-efficient of 0.731 and 0.819 respectively, at 1% level of significance. Thus, this study concluded that buffer allocation affects the profit margin of Dangote Cement Company and that task distribution has a strong impact on their return on asset. The study recommends that organizational managers particularly production managers need to give full consideration for line balancing techniques through buffer allocation and distribution of task adequately and fairly among workers.

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References


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