ABSTRACT

The research work is concerned on "An Appraisal of the Effects of cost Reduction Schemes on the performance of Manufacturing Firms". (The study of Emenite Plc, Adic Plastic and Lano Printing and Publishing Companies). The researcher in the cause of this research work employed the use of both historical and survey research design. The historical research design is for the researcher to review some of the related literature concerning cost reduction scheme. The survey was to get information from the respondents concerning cost reduction generally and its effects on the performance of Emenits Nigeria Plc, Adic Plastic and Lano Printing and Publishing Companies. Moreso, the researcher adopted the stratified random sampling in choosing or selecting the population and sample for the study. Data collected were analyzed and presented with percentage tables and the researcher made use of research questions. The researcher formulated three hypotheses for the study, which the researcher used Regression for hypotheses 1, correlation for hypotheses two and chi-square test for hypothesis three. In view of the findings made, it is recommended that the management should allow their subordinate to improve on their creative skills. That sourcing of raw materials locally increases growth variables such as capacity utilization rate, net profit, profit turnover and sales volume rather than sourcing raw materials externally which contributed to high cost of funds and relatively time consuming which may disrepute production process. The researcher identified further that lack of skilled technical and managerial staff, the management inconsistency in policy administration, communication gap and introducing sudden change pattern in the process of production threatened the security of the employees and reduce workers moral.