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Solution Strategies To Basic Production Control Problem In Automobile Industries. (Using Ivm As A Case Study)




This project represents the solution strategies to basic production control problem in Automobile industries. The problem of production control was executed by sending questionnaires to some workers of innoson vehicle manufacturing company, nnewi. Result obtained were analysed with average index technique and chi-square goodness-of-Fit method to test the hypothesis. It was discovered that if production control is ignored, it can lead to production problems.



Ever since the industrial revolution a couple of years ago which encouraged us from an economy based in agriculture and also  based on manufacturing, our standard of living depended on the efficient production of goods and services, without production we would still be a poor and backward nation instead of being what we are. We have been overtaken by so many countries in recent years and one of the main reasons for this is that our production of goods and services has not been efficient as in those countries. An obvious example is Japan which may not have viable mineral resources compared to our own nation that has a lot of them. Japan has risen through the years due to their efforts in technology. The country has advanced in technology up to the extent of overtaking Nigeria in terms of wealth without viable mineral resources.

In almost every country, people want a high and risen standard of living and this could only be achieved by more effective production of goods and services. Every industry, whether manufacturing or services, need to be run efficiently and competently both in its technological advancement and its organization. It must produce the goods. Production is basically about the creation of goods and services. It can also include the modification and assembly of existing goods such as turning copper wire into electric motor and the repair and servicing of broken goods. Whatever form production may take, it must be carefully planned and controlled. The control of production itself must be carefully planned and implemented. Indeed the most beautiful production plan cannot be very effective if it is not guaranteed. Some of the production problems are globalization, market value, increased pressure for innovation, accelerated modification of product,

This study therefore is intended to critically examine the concept of production control problems using Innoson Vehicle Manufacturing Company as a case study.


The aim of the work is to look at the solution strategy to basic production control problem in automobile industries.


The aim of any automobile industry is to be productive. Many at times when there is poor power supply or low source of raw materials and lack of automatic machines, the automobile industries suffers production problems as a result. This study therefore intends to find out how production problems in IVM can be placed under control and how the use of man power can be minimized.

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The following questions were considered:

  • Does a government policy affect level of production?
  • Does the company locally source their raw materials?
  • Has the company been meeting up with the federal governments demand on importation?
  • Has the company been withstanding the accelerated modification in automobiles?
  • Does the company have any form of return policy?


Research study, first of all attempt either test hypothesis or answer questions. The statement of the problem indicates in clear terms that questions are to be tested. The new hypothesis in this research which are derived from the statement of the problem must b e tested. The null hypothesis usually denoted by (Ho) normally takes a positive stand, stating that there is no “cause and effect” relationship between the two variables while the alternative hypothesis denoted by (H1) assumes that there is a casual relationship between the variables in this research. The following sets of hypothesis are formulated:

  • Ho: the importation of raw materials does not increase productivity.

H1: the importation of raw materials increase productivity.

  • Ho: the use of man power does not improve productivity.

H1: the use of man power improves productivity.

  • Ho: the current state of the economy does not affect productivity.

H1: the current state of the economy affects productivity.

  • Ho: the current state of energy source does not affect productivity.

H1: the current state of energy affects productivity.


This study is limited to IVM. The findings of this study and its recommendations can still be adopted by other automobile industries as a useful tool for smooth industrial management.

1.5 A Brief History of Innoson Vehicle Manufacturing Company Limited    

The Innoson Vehicle Manufacturing Company Limited is situated at # 2 Innoson Industrial Estates, Uru, Umudim. P.O.BOX 1068, Nnewi, Anambra state. In February 2007, Chief (Dr.) Innocent Ifediaso Chukwuma Mojekwu of Uru-Umudim, Nnewi in Anambra state embarked on what some analysts perceived then as mission impossible when it incorporated INNOSON Vehicle Manufacturing Limited (IVM) as a private limited liability company in Nigeria under the allied matter decree of 1990, to produce sundry commercial automobiles, utility vehicles and passenger cars in collaboration with a consortium of Chinese automobile manufacturers.

Innoson Vehicle Manufacturing Company Limited made its first outing at the Nnewi International Auto Trade Fair in 2009, with the display of its vehicles to the Nigerian market. The plant was officially opened and commissioned by the President, Commander in Chief of the Armed Forces, Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan GCFR, in October 2010.

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Innoson Vehicle Manufacturing Company Limited, IVM is the latest mind blowing achievement of the Innoson Group of Companies. IVM took the quantum leap to become the first indigenous company to manufacture different types of commercial automobiles, utility vehicles and passenger buses. . This milestone was achieved in collaboration with LinhaiOalai Import & Export Company Limited of Linhai City, China and Xiamen Golden Dragon Bus Company Limited, Xiamen, China.

The company is organized into eight (8) departments with each department carrying out a specific set of duty in other to ensure an effective and efficient production.

The eight (8) departments are;

  1. Administrative Department
  2. Production Department
  3. Quality Control Department
  4. Finance Department
  5. Marketing and Sales Department
  6. Repair and Maintenance Department
  7. Security Department
  8. Medical Care Department
  • Administrative Department

This department is tasked with providing administrative and logical support to the entire organization. Important documents, information concerning the company and staff, records of purchases and expenses from different parts of the company are filled carefully in this department.

  • Human Resources Department

The human resources department is responsible for hiring employees, maintaining employee’s well-being and dismissing employees when necessary. This department also handles tasks related directly to employment issues, such as payroll, insurance, benefits and taxes, and it is responsible for staying up to date on legal issues affecting employment.

  • Production Department

This department is responsible for the production and assembling of vehicles, the specific design of the vehicles produced and the method used in the process of production and assembly of the vehicles. The production department is often responsible for the maintenance and proper care of the machinery and equipment used during the process of production. The production department in IVM is grouped into two because of the size of the vehicles produced, they are;

  1. Big Vehicle Production Department
  2. Small Vehicle production Department

The two production departments are each sub-divided into four (4) departments. They include;

  1. Body Welding/Assembling Department
  2. Electrophoresis Resin Treatment/Painting Department
  • Chassis Assembling Department
  1. Final Vehicle Finishing/Trimming Department
    • Quality Control Department

The quality control department ensures that the finished vehicles meet minimum quality standards. This department is responsible for testing and monitoring the manufacturing process at the beginning, at the middle and at the end to ensure that the production quality remains the same throughout and reporting the quality results to the management.

  • Finance Department

The finance department is responsible for all financial matters concerning the company. This department keeps and maintains financial records, prepare and create financial accounts, prepare and plan financial information, analyze current financial performance, pay creditors and pay employees’ salaries and wages.

  • Marketing and Sales Department

The marketing and sales department is responsible for the sales and distribution of the finished vehicles to the different regions and also transporting the finished vehicles to the show rooms spread across the country, this department is also responsible for making advertisements about the different vehicles produced.

  • Repair and Maintenance Department
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This department takes care of all the repair and maintenance activities carried out on the customer’s vehicle provided that the vehicle is an IVM product. If the repair and maintenance is carried out on the vehicle within the specified period of the warranty, then it’s free of charge but if done after the expiration of the warranty, the customer pays for the service.

  • Security Department

This department plays a major role in the company because it provides personal safety for members of the company and visitors also, provides protection and security of the company’s property and enforces security rules and regulations of the company on the staff and workers.

  • Medical Care Department

The medical care department offers medical attention to any staff or worker within the company, this department also attends to workers who acquire injuries during the course of carrying out his or her duty.


FIG. 1.1    


FIG 1.2


FIG 1.3


  • Production can be defined as transformation of input into output. A component may be a machine, a man, a tool or a part of the environment of the system. An input may be a raw material, a person, or a finished product emanating from another system, which I to be acted upon. Some transformation that take place are:
    1. Physical as in manufacturing
    2. Location, as in transportation
    3. Exchange, as in retailing
    4. Storage as in warehouse
  • Control: is a general management function which can be described as the follow-up of outcome of event to ensure that policies are adhered to in the execution of duties.
  • Product: can be defined as anything that can be offered for attention, acquitting use or consumption and satisfaction of wants and needs.
  • Inventory: Can be defined as the means by which material of the right quantity are made available as and when required
  • Manufacturing: Can be defined as a process of transformation of goods and services.
  • Industries: Can be defined as a place where raw materials are being transformed into goods.

Pages:  57

Category: Project

Format:  Word & PDF

Chapters: 1-5

Material contains Table of Content, Abstract and References

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