TIlis study examines cos t min imizat ion strategies adop ted by manu facturin g firms in Nigeria . The study is fundamentally pred icated on primary data obtained from questionnaire administered on principal officers of Lever Broth ers (one of the leading manufacturin g firms in Nigeria) who occupy strategic position at various cos t centers of the company. Eight areas of cost that cut across the three ' major cost clements, namely; labour, materials and overheads were identified in the company. Data obtained from pr incip al officers occupying strategi c position s 31 these centres were used to evaluate the impact of the company's various cost minimi za tion strategies on the unit cos t in such areas, From the findings, of thi s study, we conclude that manufacturing firm s in Nigeria are familiar with a number of COSt minimization strategies that ;.IfC in vogue within thc system. COSl minimiza tion strategies such as variety redu ction, work-study, organization and method, value analysis and j ust-intime (lIT) are used by manufactur ing firms in Nigeria. But the choice of each strategy is contingent UII factors such as: familiarity. cheap ness, effectiveness and recommendat ion by consu lta nts. Based on :hc findings of this study, we recommend that manufacturing firms in Nigeria should intensify their effort in backward integratio n strategies (0 enabl e them invest in the pro duction of their basic raw materials as a rel iabl e source of cost minimization. And should structure their raw material procurement processes to involve better purchasing terms that will take advantage of discount concession.
- COST MINIMIZATION,
- EMPIRICAL INVESTIGATION,
- MANUFACTURING FIRMS,
Available at: http://works.bepress.com/chukwumah_obara/15/