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ASSESSING THE STRATEGIES OF PRODUCTION PLANNING AND INVENTORY CONTROL IN HOSPITALITY INDUSTRY

ASSESSING THE STRATEGIES OF PRODUCTION PLANNING AND INVENTORY CONTROL IN HOSPITALITY INDUSTRY
(A CASE STUDY OF JUBILEE HOTEL KADUNA)

 

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ABSTRACT

The aim of this research is to look at and asses the strategies of production planning and inventory control in the hospitality industry. This research work stated with a background on production planning and inventory control strategies. Then the research tried to establish an understanding of production planning and inventory control. And the emphasis of this research in on Jubilee Hotel, Kaduna. Furthermore, the rationale for the research was highlighted. In addition works be different authors were consulted and the authors duly acknowledged. The research covers a population of 300 and sample of 50. Questionnaire were administered to all respondents which they all responded. For the research to have meaning, hypothesis were developed and tested. The hypotheses developed are;

H1: Production planning and inventory control in hospitality industry enhance profitability.

Ho:         Production planning and inventory control in the hospitality industry doest not enhance profitability. In the course of the project it findings were made and recommendations were also developed to enhance profitability.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

  • Background of the study 1
  • Statement of the problem 4
  • Objectives of the study 5
  • Statement of hypothesis 6
  • Significance of the study 6
  • Scope of the study 7
  • Limitations of the study 7
  • Historical background of the case study                               8
  • Definitions of terms 9

CHAPTER TWO

LITERATURE REVIEW

  • Introduction 11
    • Theories of strategies of production

Planning and inventory control                                                                12

  • Production planning and inventory   control in the hospitality Industry 14
  • An appraisal of operations in Jubilee

Hotel Kaduna                                                                                                19

  • Production planning and inventory

control procedure                                                                                       26

  • Assessing the strategies used and the

improvements required if any                                                                   27

CHAPTER THREE

RESEARCH METHODOLOGY

Research design                                                                            31

  • Research population 31
  • Sample size and sampling technique                32
  • Method of gathering data 32
  • Justification of method used 33
  • Method of data analysis 33
  • Justification of instrument used.                34

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

  • Data presentation 35
  • Data analysis 42
  • Test of Hypothesis 46

CHAPTER FIVE

SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATION

  • Summary of findings                                                                                     50
  • Conclusion 51
  • Recommendations 52

Reference                                                                                                                    53

Appendix                                                                                                                     55

 

CHAPTER ONE

INTRODUCTION

 

  • BACKGROUND OF THE STUDY

Hospitality industry is one of the leading industries in the world;

It contributes to prosperity creation and further economic development of a country; it covers hotel, resorts, and travel as well as restaurant businesses.

These services business are mutually depend increase in tourism will ultimately lead to improvement in resorts, restaurants, hotel including travel industries.

This study basically concerned with assessing the strategies of the production planning and inventory control in hospitality. This will consequently access the extent to which stock can be controlled.

Production planning and inventory control is a management function that involves planning organizing, directing, coordinating, motivating, staffing and controlling of activities in the store and inventory control.

On the other hand it can also be defined as the art and science of achieving objective of the store in an organization.

A fundamental problem currently faced by hospitality according to Karlin and Zipkin (2009) is the seasonal demand for their products. This problem is very common and concerns a wide variety of products such as food stuff, functions and banqueting and many other applications.

The seasonal demand issue is difficult to access for both the theorist and practitioner. The problem requires the optimal combination of inventory and production rates for each product in each time period to be found; principal question is to determine the product quality in each period so as to minimize the discounted costs of production, inventory storage, and cost sales. This type of demand usually creates more complex problem because firms usually have insufficient capacity to meet demand in high demand period.

This ultimately impacts on planning of production process as a whole.

The main thrust of this study is to map out strategies to solve the problems of seasonality of the perishable goods which is very prevalent in the Nigerian hospitality industry.

The central question here is, how can menu planning guests, and what range of perishable food items can be stored and over what period of time?. As opined by Patrick (2009) combinatorial optimization which means combining planning and inventory control to optimize guest satisfaction in the running of hospitality business remains one of the mathematical challenges.

Strategies directed towards confronting these challenges are many and varied, depending on the methods of meal preparation service and the variety of customer’s satisfaction where stocks are produced independent of orders because there is a need to supply customers immediately with good meals from that stock.

  • STATEMENT OF THE PROBLEM

Most hospitality industry today faces one or more problems. This problem of seasonal availability of food items is common to all hotels hence difficult to manage efficiently.

In terms of perishable foods especially, it affect production planning in the hotels.

Since local storage facilities are virtually absent, there is acute shortage of certain items at certain tune of the season and this is accompanied by serious price fluctuation.

Also the preference of customers affects the planning of the menu to satisfy the guest need.

Therefore, the problems enumerated has necessitated this study of assessing the strategies of production planning and inventory control in hospitality in Kaduna state. This is geared towards enhancing efficiency in the planning of menu meals service to customer preference and price fluctuation. Other wise the meals planning

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MADE IN NIGERIA” GOODS AS A TOOL FOR THE DEVELOPMENT OF THE NIGERIA ECONOMY

EXPORTATION OF “MADE IN NIGERIA” GOODS AS A TOOL FOR THE DEVELOPMENT OF THE NIGERIA ECONOMY

 

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ABSTRACT

An investigation into exportation of “made in Nigeria” goods as a tool for the development of Nigeria economy is an interesting topic.

The population for this study consists of all the workers of the Nigeria export promotion council information was gathered using questionnaires from thirsty-one employees of which only twenty of them were returned.

Findings showed that exportation of made in Nigeria have much role to play in the development of the Nigeria economy.  It also shows that in order to achieve this purpose incentives should be provided for producer of exportable goods, stiff prohibitive measure restricting export of goods should not be adopted and also to manufacture exportable goods to meet international make goods enhances the standard of living of Nigeria.  The so much needed foreign exchange depends on exportation of goods made in Nigeria goods enhance the  standard of living of Nigeria they include prohibitive tariffs, lack of export market.

The Nigeria export is dominated by a particular product serving as a major foreign exchanges and revenue earner, the federal government has may roles to play in strengthening the export sector of the Nigeria economy.

TABLE OF CONTENT

 

CHAPTER ONE

1.0            INTRODUCTION

1.1     Background of the study

1.2            Problem associate with the subject.

1.3            Purpose of the study

1.4            Research question

1.5            Signification of the study

1.6            Delimitation

1.7            Limitation

1.8            Definition of terms used

Reference

 

CHAPTER TWO

2.0            REVIEW OF RELATED LITERATURE.

2.1     Export and exportation

2.2            Constituent of export

2.3            Causes of non-affectation of made in Nigeria good

2.4            Factors leading to effective exportation.

2.5            Barriers to effective exportation

2.6            Export and the Nigeria economy

2.7            Scope of the study

2.8            Population size

References

 

CHAPTER THREE

3.0            Research methodology

3.1     Sources of data

3.2            Sample size determination

3.3            Research instrument used.

3.4            Presentation of data

3.5            Analysis of data

3.6            Summary of finding

3.7            Conclusion

3.8            Bibliography

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The issue of exportation of good in Nigeria dates back to the beginning of this country.

Its importance cannot be over emphasized because it contributed immensely, to the development of the Nigeria economy.

After the Amalgamation of the two protectorates that formed Nigeria in 1914, exportation of goods because an economy element but mainly agricultural materials which were semi-finished.  After independence, expectation because the  main stay of the Nigeria economy.  If stood the only sources of foreign, exchange to a very great extent that if because a development stimuli of the economy exportation is the act of making available goods produce in one nation to another nations.  It is an international trade variable.  It is an international trade variable. It is difficult to write a detailed descriptions of export, its importance and implications because writers have not been interested in this field.

The exportation of made in Nigeria goods is in its infancy.  This study tends to emphasize the importance of exportation of made in Nigeria goods in order to ensure a fast growing economy.

1.2     STATEMENT OF PROBLEMS

Nigeria has been marketed as one of the industries state in Africa exporting  some of her goods.  If has also been showed that agriculture, products, constituted export in the early stage.  From the 1970’s, Nigeria has been know to be endowed abundant natural resources industrial institution has taken the economy sphere of Nigeria.  Despite this great achievement in the years that most made in Nigeria goods are not exported.  This project tends to emphasize the importance of exported of made “in Nigeria” goods as a tool for the development of the Nigeria economy.

To find out what constitutes Nigeria export and its economic effect.

To find out what reasons account for the non exportation of Nigeria goods  that is to say can the goods be exported and how, there are problems a researcher is faced with and for which this study will by to solve.

1.3     PURPOSE OF THE STUDY

motivation and interest for this study is stimulated goods dwindling exports and continued under development of the Nigeria economy.

Specifically, the purpose of this study are:

1.       To ascertain how “made in Nigeria” good can be exported.

2.       To ascertain what should constitute export in Nigeria

3.       To know what caused the non-exportation of goods in Nigeria.

4.       To know the effect of export on the economy.

  1. To ascertain the factory leading to effective exportation

1.4     RESEARCH QUESTION

The study is faced with the following question.

1.       What constitutes export in Nigeria?

2.       Can their goods be exported?

3.       How can they be exported?

4.       Can Nigeria  export all her goods?

5.       Which do you think is not liable to be exported?

6.       Should Nigeria satisfy all her citizen before exporting ? why

7.       Do you referee Nigeria exporting only one for her goods to two or more?

8.       Is export regulated, how?

9.       Who is responsible for export regulation of goods in Nigeria.

10.     what are the factors that retain export of goods in Nigeria.

11.     why the need for Nigeria to export?

1.5     SIGNIFICANCE OF THE STUDY

This study when completed will emphasize the importance of exportation to exporters, manufacture and government.

They will be familiar to the economic effect of exportation of goods produced or manufactured by them.  They will come to know how, they can go into production of goods suitable for export.  Finally the importance of export will be exposed to every individual as a result of its impact on the general economy.

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THE IMPACT OF MANPOWER DEVELOPMENT AND TRAINING IN EFFICIENT MANAGEMENT OF PARASTATAL

THE IMPACT OF MANPOWER DEVELOPMENT AND TRAINING IN EFFICIENT MANAGEMENT OF PARASTATAL

(A CASE STUDY OF NIGERIA RAILWAY CORPORATION EASTERN DIVISION ENUGU) 

 

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ABSTRACT

The growth and innovation in the field of science and technology and the complex nature of modern business activities and the need for the expert handling of modern equipment and budget I call for the urgent training and development of organization manpower resources in order to meet these challenges. Today, we know that our problem is not how to avoid change but how to analyze the victim that all development spells opportunity and get ourselves equipped to handle the increasing complexity in manpower and managerial activities.

The research work undertake a survey of the manpower development policies and programmes of the Nigeria Railway Corporation and found that though there exists an established policy and programmes for employee development there polices and programmes are deficient in content and complementary.

Based on the followings, we suggested an immediate review of the training and development policy and programme in order to make it more functional and adaptable to the present and future needs of corporations intended objectives.

In carrying out the research, oral interview and research questionnaire were used.  The analysis of the questionnaire was done based on percentages.  Allowing the greater or less than factor to influence the judgment either by mollified the oral interview responses gotten.  The work is divided into five chapters.  The first chapter contains the statements of problem and purposes of the study.  Three assumptions were made as forming basis for the study.

In chapter two, relevant literature on manpower development and man power development problems, methods and strategies were reviewed.  In chapter three, the research methodology and source of data are presented.  Chapter four contains the presentation and analysis of data and test of hypothesis.  The chapter five contains summary of the findings, conclusion and recommendation.

 

 

 

TABLE OF CONTENTS

CHAPTER ONE

1.0            INTRODUCTION

1.1     Background of the study

1.2            Statement of problem

1.3            Objective of the study

1.4            Significance of the study

1.5            Scope of the study

1.6            Limitation of the study

1.7            Research question

1.8            Hypothesis

1.9            Definition of term

CHAPTER TWO

2.0            LITERATURE REVIEW

2.1     Defining manpower training and development

2.2            Areas and objectives of manpower development

2.3            Aims and objectives of manpower development

2.4            Methods and types of manpower development

2.5            Determination of development needs

2.6            Steps in designing a manpower development programmes

2.7            Manpower development problems

2.8            Manpower development in Nigeria

References

 

CHAPTER THREE

3.0            Research Design And Methodology

3.1     Introduction to the study

3.2            Area of study

3.3            Population of the study

3.4            Sample size determination

3.5            Instrument for data collection

3.6            Validation of the instrument

3.7            Reliability of the instrument

3.8            Methods of data collection

3.9            Method of data analysis

 

CHAPTER FOUR

4.0     Presentation, analysis and interpretation of data

4.1            Testing of hypothesis

 

CHAPTER FIVE

5.0     Summary of findings, conclusion and recommendation

5.1            Summary of findings

5.2            Conclusion

5.3            Recommendation

5.4            Bibliography

5.5            Research questionnaire

 

 

 

CHAPTER ONE
 
INTRODUCTION

Contemporary thoughts on national development and growth emphasize the need for the training and retaining of the human resources and economic independence of the nations.  The objectivity of this assertion becomes apparent when viewed against the background of the study.  Damages wrecked on the socio-political and economic structure and integrity of most independent developing nations by foreign interest acting under pretension of assisting them in their development efforts.

The realization of complete independence is therefore a function of an effective development strategies and efficient utilization of a country’s potentials studies shows that most countries are blessed with abundant natural resources.  They lock the basic technology for transforming and maximizing the benefits of these natural endowment resulting from the under development of the human portentous.

Since Nigeria gained her independence in 1960, we have been faced with the challenge of providing adequate and effective manpower need for the management of our economic resources.

Our inability to provide for the necessary manpower needs results in the inefficient and under utilization of the abundant economic resources.  Most organization in Nigeria is so much concerned with the profits maximization, they ignore the need for training their workers, and instead, they consider the money they will spend on their training programme as waste rather than as an investment.  The fail to foresee the desirability of continuous retaining and development of their workers in order to promote the efficiency and effectiveness of their organization.  Consequently instead of growing, the business rather fails and much capital wasted.

 

Commenting on the general poor development of the Nigerian workers, W.R. Haires observed that the Nigerian workers are under used, under employed, frustrated and preventive from bringing their talents to bear on the well-being of their employers, organization and the nation at large.

Manpower development is a dynamic process, in other words, it is a response to change in the beliefs, attitudes and behaviour of individuals so that they can better adopt new techniques and challenges.

In recognition of the need for the training and development of the human potentials and resources of employees as a means of achieving organizational objectives and goal with efficiency and effectiveness, the Nigeria railway corporation established a training policy for her employee.  In pursuance of this noble objective of manpower development and training by the organization, a lot of difficulties arises which affected the success of the programme.  This research work is therefore directed towards an evaluation of the manpower development and training programme of the corporation with a view to identifying problem areas (where any) and making suggestions on ways of achieving greater successes in their manpower development efforts.

 

 

1.2            STATEMENT OF PROBLEMS

After an employee has been recruited and inducted, his skills must be updated and developed to better fit into the job and the organization.  The need for training and developing the employee not only arises from the fact that he might not fit in the job posses the necessary skill needed in the job but have the effect of the dynamic nature of the society influenced by changes in the field of science and technology necessitated the continuous improvement of worker’s skill and the sill he expected to have in order better fit into the new job demands is bridged by manpower training.

Many organizations have over the years established good manpower training and development programmes in order incite better employee performance at work and increased productivity.  Good development programmes have not always been easy to attain in organization because of the forces that impede against the achievement of their objectives.  Some of the impeding forces include selections or recruitment problems, training procedure and inadequate facilities, government policy, the economy and labour legislation.  The crucial problems this research will address include:

  1. The problem of inadequate manpower resources in the Nigeria railway corporation.
  2. The lack of functional manpower development programmes.
  3. The under utilization of available manpower resources.

 

A critical analysis of these problems will be done with a view to determining their causes and consequences on the corporation.  The researcher will also make contribution on ways of redressing the problems.

 

1.3            OBJECTIVE OF THE STUDY

The decision to research on this field of human development results from my interest in the areas of manpower planning and development as it occupies a strategic position in the effective and efficient realization of organization’s goal.

Apart from giving the reader a general idea of what manpower training and development entails, this study is designed to examine and clarify the following issues:-

1)                To identify the manpower training and development programme of the Nigeria railway corporation.

2)                To determine the impact of this programme on workers performance.

3)                To identify the problem which negatively affect the successful implementation of the programme and achievement of the desires result?

4)                Make recommendation on ways of ensuring greater successes in future.

 

 

1.4            SIGNIFICANT OF THE STUDY

We have noted earlier in this research the important role of manpower training and development in achieving organizational goal.  We also noted the problem of lack of well-developed, specialized and dynamic management that will be capable of harnessing the development.

The significance of the study therefore in it’s potentiality in serving as a reference took for both individual organization and government policy makers who desire to eliminate all and avert obstacles associated with manpower planning.

It will also be of immense benefit particularly in the organizers and executors of manpower development and training programmes in the Nigeria railway corporation.  This is because the clearly identified problem areas in the design and implementation of manpower development programmes.  This research will also discuss various manpower development and training related issues and suggests ways that can be adopted to solve manpower training and development problems.

1.5            SCOPE OF THE STUDY

TRANSPORTATION PROBLEMS IN MULTI-CAMPUSES IN HIGHER INSTITUTION OF LEARNING

TRANSPORTATION PROBLEMS IN MULTI-CAMPUSES IN HIGHER INSTITUTION OF LEARNING AND THEIR POSSIBLE SOLUTIONS  (A CASE STUDY OF I.M.T ENUGU).

 

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ABSTRACT

The study has the aim of elaborating on some of the causes of transportation problems in multi-campuses in higher institutions of learning and their possible solution.
The method of research used to collect information for the study is secondary source, with the help of secondary source, the researcher was able to ascertain some of the causes of transportation’s problem in multi-campuses in higher institutions of learning such as bad road etc and their possible solution.
Based on these findings, useful suggestions were equally made on how to solve the problem of transportation in multi-campuses.  Some of these suggestions include proper management, re-orientation, abolition of multi-campuses system etc.
TABLE OF CONTENTS
CHAPTER ONE

  1. Introduction

1.1     General background to the subject matter

    1. Problems associated with the subject matter
    2. The problems that the study will be concerned with
    3. The Importance of the studying the area
    4. Definition of important terms
    5. Reference

CHAPTER TWO

  1. Literature Review

2.1     School of Thought within the subject area

    1. The origin of the subject area
    2. The School of Thought relevant to the problem of study
    3. Different methods of studying the problem
    4. Summary
    5. Reference

CHAPTER THREE:

  1. Conclusion

3.1     Data presentation (Highlights of the subject)

    1. Analysis of the Data
    2. Recommendation
    3. Conclusions
    4. References

 

 

 

CHAPTER ONE

  1. INTRODUCTION

Life expectant has never met anyone without some hitches.  This is a result of the unclear nature of the world we are in. Transportation case, is not an exception, in schools or in the commercial sector, transportation has been a major stumbling block to economic growth.

 

In our higher institution, especially the multi-campuses, this has gained lots of havoc to the human resource development.  This becomes more complex when it has been confirmed that almost nothing is done to alleviate the problem by the authority that be. Education is one of the greatest assets for any nation.  It is a long run profitable venture for any nation.  Transport to say is the knitting needle with which every other national affair is being brought together and education is not an exception.  Due to its prime importance to bringing people in different location together, its negative effect has deterred the advancement of education in higher institutions especially the multi-campus ones.  But it, students can go to school and to their home especially for non residential institution or movement from one of the campus to the other.

 

This project will go into in-depth investigation to find out the causes of this transportation problem in our campuses and possible way out of the problem(s).  A case study is the Institute of Management and Technology, Enugu, Enugu State.
At the end of the study, revelations shall be made on how to improve the transportation problem(s) of the multi-campus institution in our nation.

1.1     OVERVIEW OF TRANSPORTATION/GENERAL BACKGROUND TO SUBJECT MATTER:
MODES OF TRANSPORTATION:
The movement of resources, be it human or material is a location of plenty to that of absent or vice versa has unique mode.
The modes of transportation among other includes:
(i)      Land transportation
(ii)     Water transportation
(iii)    Air transportation

(i)      LAND TRANSPORTATION:
This form of transport has been as old as man.  People, goods and services are conveyed from one place to another by land.  This started with long distance transport on foot followed by the use of animals as Horse and Donkeys for carrying loads.  Over the years, as man ingenuity to form the earth to his taste increases, he continues to develop easy and faster modes of land transportation.  Amongst these are road transportation and rail transportation.

(ii)     WATER TRANSPORTATION:
Is the means of carrying goods and services, people from one location to another by water.  This is achieved by means of liners, canoes, ships, engine boat etc.  It could be within a country (nation) or between two or more countries (international).
In international water transportation, ocean liners, or streamers and tramp liner are used, and it takes place on high seas, oceans and big risers.  National is within the water mass of the country; here we have lances, canoes, and engine boats as the transportation means.
Transportation by water is very good and efficient in making long distant Journey.  It is most convenient in carrying bulky goods. The weight of goods carried by this means far outweighs any other form of transportation.

(iii)    AIR TRANSPORTATION:
This started with the invention of airplane and helicopter and first flown by the WRIGHT BROTHERS.  This form is in no doubt the height of means ingenuity to making transportation much more effective, efficient and faster.  It is fastest, align much more effective, efficient and fastest.  It is fastest, safer and can convey both people, goods and mail at ease.  Bulky goods are also flown into air without a do.  It makes the farthest distance ever.  International travels are made in hours, and minutes.  Presently, homage is being paid to other plants like mars, Jupiter etc by an advanced country from aeroplane called space craft.

 

 

    1. PROBLEM ASSOCIATED WITH TRANSPORTATION:

Life is never a mary-go round affair.  At one in or the other, unwanted events stand on the way of progress.  Transportation also face the same fate.  Amongst the problems of transportation are:

(a)     Lack of Good Road:
This as a result, great extent militate road transportation case.  Our roads are too bad for the vehicle that plays in them.  During the season, most of them are so worst that no vehicle can pass, they become barriers in certain places if any driver insist on crossing over, his vehicle with either sink of fail into it and he would have himself to blame.

(b)     Weather:
Weather according to Oxford Advanced Learners of current English defines weather as the climates condition of a place over a period of time.  Weather in air travel, aeroplane seldom makes flight when the weather condition is poor.  If visibility is poor, flight could be suspended or if there is impending snow fall or hail stone, flight could also be suspended.  Likewise countries that experience snowfall avoid transportation within the period of fall till it dries off.
Bad weather condition such as water, trade, wind etc to affect water transportation in the negative way during such period, ocean liner etc take cover at any nearby shore.

(c)      Lack of Good Network Roads:
The absence of good road network, militates the free flow of goods, people and services.  When two or more places are not properly linked locating an area from another became a tasks which may be foregone unless on strong desire/needs.  This could be as a result of natural barriers like mountain, hills, valley or negligence by the authorities concerned.
This is the sole reason why the government of any nation gives a ministry takes care of this problem, ensuring within their capability that the major area are linked up and that there is easy and free flow of traffic in Nigeria the incumbency lies on the Ministry of Works and Housing.

 

AMONG ST THE PROBLEM ARE:

(a)     Management:
By management we mean poor or improper managing, controlling and co-ordinations of the available resources.  With which the school is being run.  These resources could be human, such as the staff and student or materials like the school house, machine building etc.  In the organization chart of the institution management, we have the personalities at the top, these are managers.

They include Vice Chancellor, Deputy Vice Chancellor, the Registrar, Deans of Faculty, Heads of Department etc.  Misdirection of the duties has really shown in many other sections of the institution management and has not only caused the problem of transportation of a lot have led to many hydra-headed problem to the institution as a whole.

This management can be seen in the following areas:
(i)      Laissez Faire Attitude of the Management over the Proper Maintenance of the School Vehicles:
The Enugu Campus (UNEC) of the institution has a work department which is more or less a camouflage or museum in the sense that the place is infested of spoilt vans littered here and there none is functional or more to put anyone functional being made.  The place has turned out to be a dumping ground for damaged van rather than vehicle maintenance unit.  Even though the school is child of the nation and should be given maximum attention, setting the standard for other schools to follow.  Transportation problem still torment the school.

Last time in June 2000, when the student of the school was assassinated by unknown men in this campus, the students wanted to take him to the UNTH to their dismay, this only Mercedes being car meant for emergency van, was said to have no flue in this student got furious by this and since they couldn’t got any vehicle to rush him to the hospital because it was at night 11.00am, this made them to act otherwise and the car was damaged entirely by the students who couldn’t control their furry.

(ii)     Excess Admission of Students:
The UNN of yester-years is no longer to UNN of present.  Then, when admission was purely on merit and within a certain range of student per department for school for years.  This time a class exceeds one hundred (100) student as against the classroom standard of 25-50.  This overcrowded situation makes consumable resources transportation.  In particular, sources because the students wouldn’t be well accommodated within the school thereby forcing them to live off-campus.

 

 

 

Continue reading TRANSPORTATION PROBLEMS IN MULTI-CAMPUSES IN HIGHER INSTITUTION OF LEARNING

AN EVALUATION OF MONETARY POLICIES IN NIGERIA

AN EVALUATION OF MONETARY POLICIES IN NIGERIA 

(A CASE STUDY OF CBN).

 

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TABLE OF CONTENT

CHAPTER ONE

1.0    Introduction

1.1        Historical background of study

1.2        Statement of problems

1.3        Objective of study

1.4        Hypothesis

1.5        Research Questions

1.6        Limitation of the study

1.7        Definition of terms

CHAPTER TWO- Literature review

2.0    Introduction

2.1    The Concept of Monetary Policy

2.2    Institutional arrangement for formulation and implementation of Open Market operation

2.3    Technical and Operational Modalities

CHAPTER THREE – Research Methodology

3.0        Introduction

3.1        Research Methods

3.2        Interview

3.3        Existing Document

3.4        Documentary Method

3.5        Validity of the Method Adopted

CHAPTER FOUR – Presentation and Data Analysis

4.0        Introduction

4.1        Presentation and Data Analysis

4.2    performance result and finding

 

CHAPTER FIVE – Summary, Conclusion and Recommendations

5.0        Summary

5.1        Conclusion

5.2        Recommendations

Bibliography

Appendix I

Appendix II

 

CHAPTER ONE

1.0        INTRODUCTION

Monetary policy deals with the discretionary control of money supply by the monetary authorities in order to achieve the desired economic goals. It cold be seen that money policy comprises of those government actions which are designed in attempt to change the influence the behaviour of the monetary sector of an economy. However, there are two views on the efficiency or monetary policy, monetarist and Keynesian view. The Keynesian view is that monetary policy should be direct towards interest rates rather than money supply and that the monetary policy should be subsidiary to fiscal policy. The monetarist recommends that the control of money supply should be the main concern of the money authorities. But it should be noted that money policy has a central role in macro economic management primarily because of the close relationship between the monetary aggregate and economic activity.

This is true irrespective of whether one is considering the monetarist or Keynesian framework. Although it may be desirable to introduce some monetary instruments the environment for their effective application may not be suitable. This fact should be borne in minds as we considered the application of various instrument of controlling money supply in the Nigerian economy. The Nigeria monetary system is part of the wider financial sector and its major operators are the monetary authorities, the banks merchant and commercial banks) as we as discount houses recently permitted to operate within the system.

The monetary authorities design and implement monetary policy and consist of the presidency, apex bank and federal ministry consist of these, the apex bank is the agency which is primarily responsible for designing monetary policy proposal for presidential approval and ensuring implementation of the monetary policy measures accepted by the federal government.

These goals of monetary policy remain the same irrespective of the package of instruments in use. The monetary policy attempts at maintain a balance as possible between the supply and demand for the monetary assets of the economy in order to achieve adequate economic growth. This broad purpose may be transmitted or rather translated into several specific objectives such as price stability, high level of employment or an acceptance  growth rate of the real gross domestic product (GDP), as well as balance of payment equilibrium.

Monetary management could take the form of direct or indirect control instruments comprising of interest rate registration, credit ceilings and sectorial allocation of credit. An indirect control instrument is mostly adopted by market based economy.  It has the advantage of the relationship between money supply and the monetary base and the ability of the monetary authorities to induce appropriate change in the monetary base. Banks reserves constitute an important component of the monetary base usually targeted by the monetary authorities to control the money supply in the Nigerian economic through the manipulation of the discount rate and reverse ratio. In Nigeria, the application of credit ceilings was designed to ensure that domestic credit expansion and the monetary implications of the balances of payment targets the expected increase in total demand for liquidity in the economy. But Nigerian have decided to move away from indirect and direct monetary instruments under credit ceiling for instance, the apex bank found it increasingly difficult to achieve the stated monetary targets. The techniques of indirect monetary control basically involves the control of the money stock through the manipulation of the sources of the monetary base by the application Open Market Operation (OMO), reserve requirement and rate.

OMO is conducted mainly in the secondary market for government securities through the buying and selling of government securities, the apex bank directly changes the level of the bank reserves and indirectly induces changes in the level of interest rates, terms and availability of credit and ultimately the money supply.

1.1    HISTORICAL BACKGROUND OF THE STUDY

the adoption of a market-base framework such as Open Market Operation in an economy that had been under direct control for long required substantial improvement in the macro-economic stability, effort were directed to the management of excess liquidity. Thus a number of measures were introduced to reduced liquidity in the system. These includes the reduction in the maximum ceiling on credit growth allowed for banks; the recall to Central Bank of Nigerian (CBN) from banks of the special deposits as requirements against outstanding external payment arrears; abolition of the use of foreign guarantees or currency deposits as collateral for naira loans and the withdrawal of public sector deposits fro banks to the CBN. The use of stabilization securities for purpose of reducing the bulging size of excess liquidity in banks was introduced in August, 1990.

Commercial banks cash reserve requirement were increased in 1989, 1990 and 1992; the rising level of fiscal deficits was identified as a major source of macro economic but also to synchronize fiscal and monetary policies. In the legal aspect, the federal government promulgated the CBN decree (BOFID) No. 1969, the CBN decree enhanced the banks powers and discretion in the design and conduct of monetary policy, while the BOFID addressed the problem of policy leakages in the monetary management by bringing the non-bank financial intermediaries, which hitherto, were entirely outside the control of the CBN under the control and supervision of the bank.

The decree streamline and simplified procedures for licensing bank and established procedures for licensing and controlling of other financial institutions including discount houses and financial companies. Three discount houses have been fully licensed to undertake secondary market dealership in treasury security. By way of inducing efficiency and encouraging a good measure of flexibility in banks, credit operations, the regulatory environment was also improved. Consequently, the sectors specific credit distribution targets were compressed into four (4) sectors in 1986 and to only two (2) in 1987. The commercial and merchant banks were subjected to equal treatment since their operations were found to produce similar effect on the monetary process. Hence, merchant banks, hitherto excluded from cash reserve requirement, were subjected to the same cash ration with commercial banks. Also liquidity ration of merchant banks was raised to the level applicable to commercial banks. In August 1987, all controls n interest rates were removed. However, in 1991, bank maximum lending rates were pegged at 21% while a minimum of 13.5% was stipulated for saving deposits. From 1992 the markets was feed of interest rate controls. However, controls measures were re-introduced in 1994 and later deregulated in 1997.

In recognition of the fact that well capitalized banks would strengthen the banking system for effective monetary management, the monetary authority increase the minimum paid capital of commercial bank and merchant banks in February 1990 from N40 million and N50 million and from N12 million to N20 million respectively. This was later increased to N500 million  for both banks in 1997. Also in 1990, the apex bank brought into force the risk weighted measure of capital adequacy recommended by the BALSE committee of the bank for international settlements for licensed banks, which were complementary to both the prudential guidelines for licensed banks, which were complementary to both the capital adequacy requirements and Statement of Accounting Standard (SAS). The prudential guidelines among others, spelt out the criteria to be employed by banks for classifying non-performance loans. The CBN and NDIC continue to monitor and examine banks in order to promote stable banking system.

In an effort to improve the operation of the money market an auction – based market for treasury securities was introduced in 1989 and these treasury instruments were made bearer bills so as to enhance transferability and promote secondary trading. The importance of timely data for the success of indirect monetary management, especially through OMO was realized by the CBN such that efforts have been made to improve the quality and timeliness of financial data. To this end, remarkable progress have been made in the computerization effort to the CBN and banks thereby creating a more conducive atmosphere for quick processing of relevant data. From 30th June 1993, the CBN commenced OMO in treasury securities with banks through discount houses. The OMO is coordinated with discount window and reserve requirement policies to ensure the attainment of the monetary policy objectives and targets. In particular OMO has been conducted every week monitoring the growth in the monetary base, which consists of currency in the hands of the non-bank public total bank reserves.

OMO is based on the discretionary of CBN to buy and sell eligible securities in the money market from the private sector, depending on the objectives of the policy. Thus, if there is need to reduce bank credit and hence money stock in an inflationary economy, the appropriate response of CBN is to sell traded securities, hoping that the private sector (bank and non bank public) would purchase them. When purchases are made by bank on behalf of their customers, the banking system, money stock is still constrained through reduction in the system’s reserve and hence ability to expand credit. However, if the purchase security off the private is financed through currency outside the banking system, the constraining effect on money supply is direct. When the stance of the policy is monetary ease, the apex bank reserves it strategy of the banking system is expanded. This enable the bank expand credit which influence money stock, where funds sis realize from the sale of securities by non – bank public are kept outside the banking system, OMO expand money supply directly. Though, the effect of OMO is more flexible and better suited for ay to day adjustment of the reserves in the desired direction.

The type of securities used for OMO varies from country to county but generally they consists of both government and non-governments with issues ranging from very short to long term maturities. The essentials is that the securities trade should be those which the CBN can use easily to influence the level of reserves, credit and money and money stock thereby inducing favourably changes in order relevant variables for economic growth. Depending on the sophistication of the financial market the operation vary from outright sales and purchases to temporary trading securities. Temporary trading could be reports in which case securities are sold with an agreement to purchase in future before maturity; or reverse response in which securities are purchased with an agreement to resell later before maturity. Other techniques of OMO include forward sales sand purchase as well as swaps.

Recruitment of participations of OMO depends largely on the structure of the financial system. Where there are discount houses, it is common for the apex bank to channel transaction primary through discount houses, in their absence the CBN relies on the selected from the foregoing that the main purpose of OMO is to influences banks liquidity with a view of influencing monetary growth. However, the expansion or contraction in money stock is not desired for its own sake but rather to achieve monetary growth, that is consistent with short term to long term objectives of the economy especially with regards to exchange rates, interest rate, investment and low or non-inflationary growth in goods and services.

extreme

1.2    STATEMENT OF GENERAL PROBLEM

The fundamental problem of any government is it economic or otherwise its implementation. a number of government monetary policy instrument have been designed and applied in Nigeria in the hope of achieving the desired result of stable price level, low level of unemployment, efficient banking system etc. but the application of direct monetary instrument have not bring forth the desired objectives stated above hence, left the government with no any other alternative than to turn to the direct monetary instrument. Therefore, the problem under study is the application of OMO as an instrument of monetary policy in Nigeria.

Continue reading AN EVALUATION OF MONETARY POLICIES IN NIGERIA