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INTERNSHIP REPORT
PRODUCTION MANAGEMENT AND ITS IMPACT ON
PROFITABILITY WITHIN AN ORGANIZATION: THE
CASE OF BERI SOIF”
An internship report carried out from the 1st August to the 31st 2021 in partial fulfillment of
the requirements for the award of the Higher National Diploma (HND)
SPECIALITY:
PROJECT MANAGEMENT
MATRICULE No:
IUC20E0054369
WRITTEN BY:
NDUKONG BERTILLA YAAH
ACADEMIC SUPERVISOR PROFESSIONAL SUPERVISOR
Dr, DOUMTSOP KANOUO GERVAIS
CERTIFICATION
This is to certify that this report entitled “PRODUCTION MANAGEMENT AND ITS
IMPACT ON PROFITABILITY WITHIN AN ORGANIZATION: THE CASE OF
BERI SOIF”. An internship report carried out from 1st July to 30st July 2021 at BERI
SOIF has been carried out by NDUKONG BERTILLA YAAH under the supervision of
Dr. DOUMTSOP KANOUO GERVAIS with registration number IUC 20E0054369 FOR THE
AWARD OF A Higher National Diploma in Project Management.
Academic supervisor
Internship supervisor
DEDICATION
TO THE NFORMI’S
FAMILY
ACKNOWLEDGEMENTS
WRITTEN AND PRESENTED BY : NDUKONG BERTILLA YAAH II
PRODUCTION MANAGEMENT AND ITS IMPACT ON PROFITABILITY WITHIN AN
ORGANIZATION: THE CASE OF BERI SOIF
I wish to thank the lord God almighty for his grace and strength granted to me during the
internship period and all those who in one way or the other supported me in the realization
of this work.
My first gratitude goes to the INSTITUT UNIVERSITAIRE DE LA COTE and its director
MR GUIMEZAP PAUL for creating such a wonderful institution in a conducive
environment. Thank you, sir!
I very much appreciate the efforts of my academic supervisor Dr. DOUMTSOP KANOUO
GERVAIS, for his guidance and advice for the accomplishment of this work.
I also want to appreciate my classmates Marylyn, Becky and Queency for their time and
energy they dedicated to me.
ABSTRACT
WRITTEN AND PRESENTED BY : NDUKONG BERTILLA YAAH III
PRODUCTION MANAGEMENT AND ITS IMPACT ON PROFITABILITY WITHIN AN
ORGANIZATION: THE CASE OF BERI SOIF
month has as main objective to assess the Impact of production quality on the
organizations productivity. For the methodology used in production results, the intern used
both primary and secondary sources of data. For the primary source she made use of the
questionnaires, interviews and observation and for the secondary source, she made use of
the internet. During the internship period, the intern identified some problems face by BERI
SOIF of which some of them included; poor information flow, incomplete organizational
RESUME
PREFACE
The Cameroon government with the aim of ensuring suitable development and providing business
with competent and competitive workforce in various fields through the Ministry of Higher
Education has opened the Private Institute of Education. Hence giving the opportunity to private
institutions to contribute to the acquisition of an academic and professional inadequacy with the
professional world.
This has made room for the creation of ISTDI (Higher Institute of technology and Industrial
Design) by degree N° 02/0094 / MINESUP / DDES / ESUP of September 13, 2002 and
authorisation opening N° 0102 / MINESUP / DDES / ESUP of September 18, 2002. Located in the
coastal region, Wouri department, District of Douala 5th, in Logbessou district. The ISTDI is then
created in the University Institute of the Coast (IUC) by decree N° 5/05156 /N / MINESUP / DDES
/ ESUP / SAC / EMB, and comprises today of four establishments.
Electronics (EN)
• INDUSTRIAL
AND
TECHNOLOGICAL
PROFESSIONAL
Software Engineering
Electrical
Electronics
Civil Engineering
Wood Engineering
• BACHELOR OF TECHNOLOGY
University of Dschang
Assurance (SA)
Finance-Accounting
Bank
Bank-Insurance
Quality Management
• BACHELOR OF SCIENCE
EXECUTIVE MBA
University of Dschang
Management of organisations
Finance Accounting
Software Engineering
Civil Engineering
All these schools offer courses of an international character in the sense that they are aligned with
the new LMD pedagogical system, and the skills acquired by our students, as well as the spirit of
openness and adaptation that we teach them allow to carry out the mission entrusted to them in all
the organisations and to consider the possible options for their professional future in a changing
global context, and whose environment is more demanding.
The student in HND is held in 2020 to perform a speciality project during his academic course. This
project will allow students to better understand the knowledge acquired and especially applied to a
field of specialty. It is with this in mind that we have done work on the theme
“PRODUCTION MANAGEMENT AND ITS IMPACT ON PROFITABILITY WITHIN AN
ORGANIZATION: THE CASE OF BERI SOIF”
IDENTIFICATION SLIP
ACRONYMES BS
LIST OF ABBREVIATION
BS BERI SOIF
TABLE OF CONTENTS
CERTIFICATION.................................................................................................................................i
DEDICATION.....................................................................................................................................ii
ACKNOWLEDGEMENTS................................................................................................................iii
ABSTRACT........................................................................................................................................iv
RESUME..............................................................................................................................................v
PREFACE...........................................................................................................................................vi
IDENTIFICATION SLIP....................................................................................................................xi
LIST OF ABBREVIATION..............................................................................................................xii
TABLE OF CONTENTS..................................................................................................................xiii
GENERAL INTRODUCTION............................................................................................................1
3.1.1.1. PRODUCTION..............................................................................................................16
GENERAL CONCLUSION...............................................................................................................34
GENERAL INTRODUCTION
A successful company is measure by more than just a bottom line, as it is also about
performance and Production relationships. The production industry is booming in
Cameroon and the African continent as a whole. The growing consumption for purified
water and yogurt for good health is a key sign for rapid expansion.
There are number of mineral production companies that have exited the market today due
to poor production quality they offer to their clients, as they ignore value added as a
means of customer retention and an open door to sustainable competitive advantage.
Other competitors in the industry include Super Mont, OPUR, Tangui and Vita.
Chapter talks about the evolution of the internship, which is also divided, into two
sections; section one talks the presentation of the host department and section two talks
about the chronogram of internship activities and justification of our topic.
This chapter states and explain the history and creation of universal logistics SARL
Cameroon where the intern carried out her internship. This chapter is divided into two
Sections
BERI SOIF is a mineral water and yogurt production and distribution Company created 2021
(approximately one year of existence). The head office and production plant is located in Carrifour
Jango, Kribi, Cameroon. The company is own by Mr. NFORMI RICHARD MBINKAR, who
hails from the North West Region, Cameroon.
After assessing the state and scarcity of good drinking water in Kribi town, he saw a need for a
good source of drinking water. This was to reduce the number of typhoid and cholera patient. To
this effect, administrative procedures followed with respect to the creation of BERI SOIF. Few
months after a geographical survey was carried out on the intended portion of the land on which the
forage had to be drilled 50 matters in to the surface where the water table was encountered.
Finishing work was done on the forage and the water purification process using a system of
industrial filters and the reversed osmosis system was installed. With this installation osmosis,
water alkaline and natural purified water obtain as a by-product. The products are taking lead in the
town of Kribi because of the production of good quality water.
All BERI SOIF products are license for production by the Agency for Promotion of Small and
medium sized enterprises (APME) under the MINISTRY OF SMALL AND MEDIUM
SIZED ENTERPRISES, AND SOCIAL ECONOMY.
BERI SOIF, have an estimate of 10 workers including the Director, and distributors. Their main
areas of market distribution include. Kribi, Edea, SOCAPALM and HEVECAM, with their main
market recording the highest amount of sales being Kribi and HEVECAM.
The General
Manager
Ass. General
Manager
Purchasing Security
Sales Account
PRODUCTIO Manager Manager
N - Manager
Manager
• They are responsible for petty cash [ the entrance and going out of
funds]
• Invoicing of clients
•
ake care of taxes
PURCHASING DEPARTMENT
Her responsibility is to procure all the necessary raw materials needed and daily
operation of the company.
SECURITY
They are in charge of the security of the company 24hours
on 24
This has to do with the day to day activities of BERI SOIF. The following are
some of the services rendered by BERI SOIF;
• Production of purified mineral water in in quantities of sachet 0.5cl,
Bottle 1.5L, Bottle 10L and Bottle 20L
• Packaging and storing of the water
•
ransportation and Distribution of the water to various customers in
different areas (Kribi, Edea, SOCAPALM and HEVECAM)
1.2.2.1 OPERATION WITH THE INTERNAL ENVIROMENT
1. Mission
T Mission of BERI SOIF is to “provide Quality water to our local communities
by ensuring the continuous production and distribution of quality water”.
2. Company’s culture
Organizational culture is the collective behavior of workers of the organization
and values, vision, beliefs, habits that they attach to their action. BERI SOIF has a
culture of collective teamwork.
3. Resources
Here we specifically make mention of the financial resources. A company with
limited capital has little chances of growth. BERI SOIF is limited in financial
resources, which is a weak point.
4. Staffs
Employees are the main actors in the internal environment and the most important
element, which performs the tasks of the administration and Production activities.
Individual employees and the labor unions they join are important of the external
environment. If managed properly, they can positively change the organization’s
policies. However, a poorly managed workforce could lead to a catastrophic
situation for the company.
5. Owners
Owners are people who invested in the company and have property right and
claims on the organization. Owners can be an individual or a group of persons
who started the company; or who bought a share in the company in the share
market. Therefore, BERI SOIF is one-man business own by Mr. NFORMI
RICHARD NDUKONG
This refers to the approach of the manager in dealing with employees. This can be
autocratic, democratic or laisse faire management style is autocratic
Here, we have both the micro and macro external environment of BERI SOIF
1. Competitors
These are those who operate in the same industry. Some of the competitors of
BERI SOIF include; Super Mont, OPUR, Tangui and Vita.
2. Customers
They are usually referred to as KINGS for they are the ones who make up the
business. Without the customers, the company exists in vain. BERI SOIF Main
customers is the general
3. Suppliers
Suppliers are the providers of production or service materials. Dealing with
suppliers is an important task of management and keeping a good relationship
with the supplier is important to keep a steady following of quality input
materials.
4. Regulators
Regulators are units in the task environment that have the authority to control,
regulate or influence an organization’s policies and practices. Government
agencies are the main player in the environment and interest groups are created by
its members to attempt to influence organizations.
Political factors
Here, the political situation of the country is taken into consideration. It encloses
the political conditions that affects the business. Some of these political factors to
which BERI SOIF is exposed to include; taxes and road control of their trucks .
Economic factors
This involves the economical state of the country and especially that of the
citizens. They are factors that determine that direction towards which the economy
drives to. Some of the economics factors to which BERI SOIF is exposed to
include; the economic growth and development, inflation rate and the economic
system.
Socio-cultural factors
Every country has a distinctive culture. His attitude has an Impact on the business. These
factors might therefore affect the sales of services. Some these factors affecting BERI
SOIF include; the level of education and language.
Technological factors
Technology is advancement to innovations. The increase in the level of technology will
help the company to know how the customers adapt themselves to the various changes in
technology. Some of these technological factors related to BERI SOIF include;
innovation and invention, research and development.
Ecological factors
This refers to natural environmental factors or variables, which affects organizations.
Some of this factors affecting BERI SOIF include, natural disasters, climate change.
Legal factors
This refers to the framework of law within which businesses operate. Legislative changes
take place from time to time. Many of these changes affect the business. Some of this
factors affecting BERI SOIF include; consumer protection and business regulations.
INTRODUCTION
This chapter talks about the reception of the intern at BERI SOIF and the different
activities carried out during the internship period. This chapter is divided into two
sections of which section one comprises of the reception of the intern in BERI SOIF and
the second section comprises of the activities carried out with their outcomes and the
justification of the topic.
After being received by the general manager, a general presentation was made with all
the staffs of different departments of BERI SOIF. The intern was told that there is no
project management department in the company and it was then decided for her to
intergrade the company as a whole and to interact fully with all the departments.
In the interaction with the company, the intern was given a department where she will be
working which was with the Production and Distribution department.
The intern was given a task to perform which was to be handed at the end of her
internship period. The intern was engage in the packaging the water and transferring to
the ware house which will later be sent out for distribution to the different zones where
her customers are located.
In the production department she took part in the packaging of purified water for sell she
was able to package 500 sachet of pure water. The intern was doing this with the
assistance from the other full time staff who are well experience. The intern was trained
on how to package water at first the process was difficult but with time and with the help
of the staff the intern gained enough experience from the production department.
At the end of the internship period, the intend handed the duty given to her by the general
manager and then, got her internship attestation that eventually proves that, the intern
carried out her internship at BERI SOIF
FINDINGS:
From findings the intern notice the workers of BERI SOIF were very
collaborative that is working as a team and this made work very easy and
ORGANIZATION: THE CASE OF BERI SOIF”. The intern choose this topic there is
need for organizations to compare their production with the profitability levels. This
will enable organizations avoid Over Production (which ties down company’s
capital) and “Under Production” (which demand exceeds supply and can lead to
loss of customers).
CUSTOMER SATISFACTION
For it will be beneficial for BERI SOIF” to know how the client feel and think about
their services and how to improve in the case of dissatisfaction. For, it is the
customer that makes the business. For if there is no customer, there will be no
productivity and no profitability. So, the company’s maximization point is on
customer satisfaction. It is best to keep the actual customers and gain more rather
than gaining other customers and losing the actual ones.
Chapter four talks about the critical approach that is the criticisms in which section
one is the difficulties and weaknesses and section two on the other hand is the
recommendation or the suggestions and challenges.
3.1.1.1. PRODUCTION
Production
It is the process of creating a product using primary and intermediate factors of
production. Production is a specifically human type of metabolism between man and nature, or,
more precisely, the process of actively converting natural resources into a product by people.
Types of Production
There are four types of production
Unit or Job type of production
This type of production is most commonly observed when you produce one single unit of a product.
A typical example of the same will be tailored outfits, which are made just for you, or a cake, which
is made just as if you want it.
Mass production is generally used to dole out huge volumes of the product
It is used only if the product is standardized
Demand does not play a major role in a Mass production. However, production capacity
determines the success of a mass production.
Mass production requires huge initial investment and the working capital demand is huge too.
Production Management
Production management covers the planning and implementation of the entire production process,
from the order of raw materials to delivery to the client. Any decisions you make for your
business within these bounds is an element of production management. As a small business
owner, you focus on problem-solving, efficiency of production and quality of products.
Production management systems abound. Most businesses build around one system while
drawing on elements of others, creating a custom blend that suits their market and clients.
A given quantity of finished goods requires a given quantity of raw materials and components to
make them. Materials requirement planning systems are computerized tools that manage when
materials must be ordered to supply production later. MRP is effective when output quantities are
known. Small business owners are often their own MRP systems, storing the information needed
to supply production in their knowledge and experience. Activities such as computer tracking
inventory and forecasting demand are MRP activities.
Just-In-Time
Just in time, or lean manufacturing, is a production management philosophy built around the
continuous reduction of waste. It is suited for businesses where production efficiency is key.
Anything that interferes with productivity is waste and, therefore, the enemy under JIT systems.
Techniques that support JIT philosophy include reducing inbound inventory by creating supplier
delivery schedules, minimizing outbound stock with customer delivery schedules and constant
work in-house reducing scrap material and wasted man-hours. These techniques improve cash
flow and maximize sales margins.
Flow Control
Flow control, also called optimized production technology, focuses on the efficient flow of
material through the production process. The philosophy of flow control focuses on bottlenecks.
For example, an owner using flow control will not buy a machine capable of 1,000 units an hour
if supply is only 500 units. Examine systems and determine where lowest flow is experienced,
then address that point and make sure it operates at full capacity. Flow control applies well where
maximum productivity is required.
Profitability
Profitability is the ability of a business to earn a profit. A profit is what is left of the revenue a
business generates after it pays all expenses directly related to the generation of the revenue, such as
producing a product, and other expenses related to the conduct of the business activities.
There are many different ways for you to analyze profitability. This lesson will focus
on profitability ratios, which are a measure of the business's ability to generate revenue compared to
the amount of expenses it incurs. Let's look at a few of the primary analytical approaches
Net profit margin measures the profitability of your business. The formula is:
Operating Margin
Operating margin tells you how much costs unrelated to producing the product for sale are cutting
into your profits. Costs unrelated to production can include such things as general business, staff
and administrative expenses of the business. Net operating margin is often referred to as
your Earnings before Interest and Taxes (EBIT). The formula for this is:
CUSTOMER
A customer is a person or a company that receives, consumes or buys a product or
service and can chose between different goods and suppliers. The customer is the focus
of every company for they live through them and die through them. If the customer is not
there, then the company exists in vain. The customer is usually referred to as king for
they determine the profitability and breaking down aspect of the company. We have
several types of customers of which some of them include;
Loyal customers; they are very few in number but promote sales and
profit as compared to other customers as these are the ones who are
completely satisfies.
Discount customers; they are frequent visitors but they are only part of
the business when discount is made on a product or a service therefore
buy only low quality products.
5. SATISFACTION
This refers to a pleasant feeling that you get when you receive something you wanted, or
when you have done something g you wanted to do. It can also be referred to as the act
of fulfillment in a way that a person feels pleased and satisfies towards something.
It is a feeling and can even be a state of mind, when a person has nothing to complain
about. Some of the satisfactions include;
Customer satisfaction
Employee or job satisfaction
Life satisfaction
CUSTOMER SATISFACTION
Philip Kotler defines customer satisfaction as a person’s feeling of pleasure or
disappointment, which resulted from comparing a product’s perceive performance or the
outcome against his/ her expectation.
SOIF did not provide high quality products to its customers compared to her competitors due
to poor distribution channels and late delivery to customers compared to competitors.
Production quality is very important for and organization and has a very great impact as
long as business is concerned for it creates customer satisfaction and hence yields
profitability as figured below;
Production Customer
Profitability
Quality Satisfaction
The reasons for the BERI SOIF Company to provide a good Production quality includes;
If production quality is not rendered, the company BERI SOIF may suffer from the
following;
Interviews:
Interviews where being carried out in the company by the intern so as to know the way
about of the company, to know how the employees achieve their tasks and what they
thing about the organization. An interview was also carried out to the external
environment so as to identify the customer’s perception towards the company.
Observations;
Observing is one of the most passive qualitative data collection methods. During the
internship period, the intern kept on observing the different moves of the employees,
their discussions and taking note.
The internet;
The internet enabled the intern to make some research on their competitors and to know
their way about. How they function, how they work so as to improve on the functioning
of BERI SOIF.
School note books; the intern also used school note books she got from the classes
in school. That is;
Production Management
Supervisor; the academic and professional supervisors of the intern were also a
source of information to the intern.
It was also noticed that, some employees find the tasks given to them bulky but do
employ their maximum efforts to complete the job on time.
Furthermore, the intern noticed a poor information flow between the company and the
clients/top management with the employees.
Moreover, there was a notice in the production department, for delivery tricycle vans,
which lack durable tires, which made it impossible for the tricycle to go on long
distances without breaking down, hence, limiting their market share and reducing their
clients.
In addition, it was noticed by the intern that, the drivers are not trust worthy.
3.2.1.2 ANALYTICAL TOOL
The intern used the quantitative analytical tool to analyze her data. She visited some of
the customers of BERI SOIF and interviewed them to rate on the service quality of
BERI SOIF. On a scale of four (4) and it was done as follows:
1 2 3 4
POOR AVERAGE GOOD VERY GOOD
Table 1: Rating scale
MINI PRIX gave a rating scale of 2/4*100 giving her a satisfaction rate of 50%
PAS D’OR gave a rating scale of 1/4*100 giving her a satisfaction rate of 25%.
GALAXY gave a rating scale of 3/4*100 giving her a satisfaction rate of 75%
SALAM gave a rating scale of 1/4*100 giving her a satisfaction rate of 25%
A) STRENGTHS
BERI SOIF has the following strengths:
•
ocation; BERI SOIF is situated at Kribi specifically at Carrifour Njango. Kribi is
a town where most commercial activities are been carried out and hence, tend out
to facilitate the company in its activities.
•
killed workers; BERI SOIF has a good number of professional skilled workers
who know what to do and how to do.
•
eam spirit/ work; in BERI SOIF, all the departments work as a team which is
one of their main strength
•
nity of action; in BERI SOIF, the different departments often work together for
the accomplishment of their departmental objectives and hence leading to the
accomplishment of the organizations objectives and goals which is a quality
lacking in many competitors.
B) WEAKNESSES
Universal logistics has the following limitations;
Capital, BERI SOIF is limited in its capital which is a very great limitation
for its activities. Capital is one of the main resource of a company for without
finances, activities will not move fluently and the employees too may risk
their pay and not to meet up with customers demand.
Slow decision making; specifically concerning the finances. Finances in the
payment concerning their taxes, and some other obligations that may turn off
slowing down their activities.
An incomplete organizational structure; the organization of BERI SOIF is
quite incomplete and tends to promote complexity of operations within the
employees which is a deficiency for its functioning.
Customer service; due to a representative who is rude to a customer with the
customer then posting evidence and complaints to social media.
A) OPPORTUNITIES;
B) THREATS
Some of their threats include;
Competitors; this is the biggest threat a company may face. Competitors are those
who deal in the same industry with you and a change in the competitive landscape
is a great threat to the company.
Customer satisfaction; this is one of the major threat for BERI SOIF; for
satisfying a client comes up to know exactly what the customer wants and being
able to fulfill its expectation and even exceeding it.
The suppliers; they are a great threat to BERI SOIF due to the fluctuation of
prices and who may at any time withdraw from the company and who might also
fail to fulfill its commitments.
Changes in technology; this will be a threat to BERI SOIF the case where their
employees will not be enough trained and aware of the upcoming technologies.
Taxation; increase in taxation that may reduce the profitability of BERI SOIF
This chapter elaborates on the difficulties and weaknesses of the enterprise and the various
solutions proposed by the intern to overcome the problems faced. It is divided into two
sections.
In this section, the intern elaborates on the difficulties and insufficiencies faced by BERI
SOIF Cameroon because of production quality and its impact on productivity.
Fuel cost; one of the highest cost contributing to the cutting transportation cost
concern is fuel prices. Higher fuel prices are likely to increase transportation cost
transporting their products to different areas.
Manpower management; one of the problems faced by BERI SOIF is managing
manpower. Dealing with productivity, warehouse management, sales agents and
distributors are some of the vital requirements and should be handled in a
respectful and efficient way.
4.1.2 INSUFFICIENCIES OF BERI SOIF
During the internship, the intern noticed some of the weaknesses faced by BERI SOIF
SARL related to production and its impact on production quality. Some of which include;
- Poor information flow; during the internship period, the intern due to her research
noticed that there was a poor information flow between the departments
specifically with the drivers responsible for the distribution of the products. The
accountant working directly with the distribution department did not have
information on the way bills of the clients on time. In addition to that, the drivers
after executing their job do not give all the details concerning the transaction
details to the logistics department.
- Incomplete organizational structure; BERI SOIF is a production company with an
incomplete organizational structure. They don’t have the following departments;
- Human resource department
- Operational department
- Insufficiency of trucks; during some times, the client will make a request to
have a certain amount of trucks but the trucks demanded by the client is not
available thus reducing customer’s satisfaction. This is a great problem faced
by BERI SOIF and this tends to reduce customer trust in the company and will
make the client to turn to another company to place order
- Breakdown of trucks: this is a problem that appears most at times when
customers demand and the respond is not favorable due to truck breakdown.
This tends to reduce the customers trust in the company.
- In other to solve the information blockage, there can be a meeting calling on the
drivers and the transportation department so as to know what the problem truly is.
- In addition to the above, the incomplete organizational structure can be solved by
creating the missing departments which some of them includes, the human
resources department, and the operation department. Doing this will tend to
reduce the work beard by the general manager.
GENERAL CONCLUSION
The analytic tool used by the intern is the quantitative tool. The intern used a rating scale on
five (4) to know the satisfaction level of the various customers of BERI SOIF.
Some of the problems discovered by the intern in BERI SOIF include: poor information
flow, insufficiency of trucks, no professionalism of drivers and breakdown of trucks.
From findings, the following recommendations; were made, firstly, we have meetings
calling on the drivers to resolve personal problem, creation of missing departments,
partnership, vehicle checkups and a preventive maintenance.