Operations Management Efficiency and Profitability in the Nigerian Cement Industry: A Study of BUA Cement, Sokoto

📖 ABSTRACT/OVERVIEW

This research examines the relationship between operations management efficiency and profitability at BUA Cement's Sokoto plant, one of Nigeria's major cement production facilities in the North West geopolitical zone. Operational efficiency in cement manufacturing has direct implications for production costs, energy consumption, and market price competitiveness, making it a critical strategic dimension. This study employs a case study and survey combined design with data obtained from 95 production supervisors, operations analysts, and procurement managers. Structured questionnaires and secondary production data were analysed using descriptive statistics and regression techniques. The study evaluates five operations management dimensions: production scheduling efficiency, capacity utilisation rates, maintenance management quality, waste reduction practices, and logistics optimisation. Findings indicate that capacity utilisation rates and maintenance management quality are the strongest predictors of profitability, accounting for the largest share of variance in net margin performance. Waste reduction practices showed growing importance as energy costs increase. Logistics optimisation emerged as a critical but underdeveloped area, particularly in the firm's regional distribution network. The study recommends that BUA Cement strengthen predictive maintenance systems, improve capacity planning processes, and invest in logistics technology to enhance last-mile distribution efficiency. This research provides practical operations management insights for Nigeria's cement manufacturing sector. Keywords: operations management, profitability, cement industry, BUA Cement, Sokoto State.

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Departments# Management