ABSTRACT
The effects of safety performance on productivity of manufacturing industries in Nigeria were studied. Twenty manufacturing industries of which ten were large manufacturing industries and the remaining ten small manufacturing industries were sampled, and the relationship of their productivity and industrial accidents on employees between 2012 and 2016 were also studied. It was observed that large manufacturing industries tend to suffer more on this issue since most of them have zero tolerance for idle time during production process. It was observed that average level of safety compliance among the small manufacturing industries is at 55.5%, while the average level of safety compliance among the large manufacturing industries is at 70.3%. It was further observed that there is no sequential effect of these industrial accidents on productivity, but the management of such accidents explains how severe its effect can be on the productivity of these manufacturing industries. Descriptive statistical tools were used to compare the effects of accidents on productivity, and It was also observed that the average of the productivity/industrials accidents on employees in the large manufacturing industries were 7.9%/19 for NBC, 2.6%/4 for CNL, 5.3%/29 for NSS, 20.2%/13 for PBMN, 7.9%/27 for 7UP, 6.7%/22 for TNL, 7.9%/10 for ANL, 5.3%/2 for ICL, 7.9%/24 for GEOKER and 7.9%/21 for STALLION, while that of the small manufacturing industries were 5.6%/5 for SINACH, 4.4%/3 PVN, 4.4%/3 for ONYX, 5.6%/2 for BONSAC, 6.7%/4 for FPS, 6.4%/4 for S.Y. ABED, 4.8%/6 for NASON, 5.6%/3 for DOZA, 4.4%/6 for MAFO and 6.4%/2 for BEST BIE. Therefore, management of these manufacturing industries should be enlightened on the need for proper industrial accident management since industrial accidents are inevitable.
TABLE OF CONTENTS
Title
Page i
Certification ii
Declaration iii
Dedication iv
Acknowledgements v
Table
of Contents vi
List of
Tables viii
List of
Figures ix
Nomenclature
x
List of
abbreviation xi
Abstract
xii
CHAPTER 1: INTRODUCTION
1.1 Background
of Study 1
1.2 Statement of Problem 4
1.
3 Aim and Objectives of Study 5
1.4 Scope of Study 5
1.5 Justification of the Study 6
CHAPTER 2: LITERATURE REVIEW
2.1 Overview
of Workplace Accidents and Safety 8
2.2 Compliance to Industrial Safety in
Nigeria 23
2.3 Advances
on Industrial Health and Safety 28
CHAPTER
3: MATERIALS AND METHODS
3.1 Materials 34
3.2
Methodology 34
3.2.1
Method for the identification of potential source of danger 35
3.2.2 Method for the
identification of level of adherence to safety regulations 37
3.3
DATA ANALYSIS PROCEDURE 37
3.3.1
Model specification 37
CHAPTER 4: RESULTS AND DISCUSSION
4.1 Hazard
Concerns of Manufacturing Industries 42
4.2 Prevalent
Safety System in Manufacturing Industries 44
4.3 Safety
Adherence in Manufacturing Industries 45
4.4 Accident
Occurrence in Manufacturing Industries 46
4.5
Effects of Accidents on Productivity
in Manufacturing Industries 48
4.6 Comparative
Analysis of Productivity in Manufacturing
Industries 50
CHAPTER
5: CONCLUSION AND
RECOMMENDATIONS
5.1 Conclusion 52
5.1.1
Contributions
to Knowledge 53
5.2 Recommendations 53
References 55
Appendix 63
LIST
OF TABLES
Table Page
3.1 Basic
workshop safekeeping guidelines by O.H.S.R 36
3.2 Ranking
system of appropriate PPE 37
4.1 Comparison
between productivity due to accident and actual
productivity
among the large manufacturing industries 51
4.2 Comparison
between productivity due to accident and actual
productivity
among the small manufacturing industries 51
LIST
OF FIGURES
Figure Page
2.1 Types
of accidents 11
4.1 Hazard
concern of small scale manufacturing industries 42
4.2 Hazard
concern of large scale manufacturing industries 43
4.3 The
prevalent safety system in the large scale manufacturing industries 44
4.4 The
prevalent safety system in the small scale manufacturing industries 45
4.5 Level
of safety adherence among the small manufacturing industries 46
4.6 Level
of safety adherence among the large manufacturing industries 46
4.7 Accident occurrence among the large
manufacturing industries in
Nigeria 47
4.8 Accident occurrence among the small
manufacturing industries in
Nigeria 48
4.9 Effect of accident on productivity large
manufacturing industries in
Nigeria 49
4.10 Effect of accident on productivity small
manufacturing industries in
Nigeria 50
NOMENCLATURE
A
(1) Risk management
B
(2) An accident reporting
system
B Installed
capacity (unit/hr)
C
(3) Medical clinic
C Actual
capacity (unit/hr)
Actual
capacity due to accident (unit/hr)
D
(4) Written health and
safety policy
Number
of accident occurrence
Leave
to victims (hrs)
Experimental
period in years
Number
of employees on production line
Number
of accident victims
Productivity
due to accident (%)
Q Quantity
of products (units)
Total
working time (hrs)
Total
working time due to accident (hrs)
Working
days (hrs)
Working
hours (hrs)
Working
time (hrs)
Total
working time to accident victims (hrs)
Productive
working time for victims (hrs)
LIST
OF ABBREVIATIONS
7UP 7up
Bottling Company, Aba
ANL Alcon
Nigeria Limited
BEST BIE Best
Bie Nigeria limited
BONSAC Bonsac
special quality loaf
CNL Chemlap
Nigeria Limited
DOZA Doza
soaps
FPS Fair
Price Sawmill
GEOKER Geoker
Nigeria Limited
ICL Ivory
Oil Company Limited
MAFO Mafo
global services
NASON Nason
bottle water
NBC Nigerian
Bottling Company Oweeri plant
NSS Njoku
& Sons Sawmill
ONYX Onyx
Oils Limited
PBMN Paper
Board Mills Nigeria
PVN Providence
Nig. Limited
S.Y. ABED S.
Y. Abed Gen. Ent. Ltd
SINACH Sinach
construction
STALLION Stallion
Plastic Limited
TNL Tonimas
Nigeria Limited
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF STUDY
Industrialization is essential in
economic development of any country. The effect of industrialization has
remained a stimulus that accelerates the rate of structural transformation and
diversification of any economy. With this, a country utilizes its endowment and
reduces its dependency on foreign finished products and raw materials for its
economic growth, development and sustainability. Industrialization is a
deliberate, constant application and combination of an appropriate technology,
important resources and productive economic activity for the conversion of raw
materials to finished products, and this has attracted considerable interest in
developing economies in recent times (Okafor, 2005). Manufacturing sector is
assumed to be more relevant and dynamic in economic growth than other sectors,
therefore, a transfer of productive resources to more dynamic sectors
contributes to growth. (Szirmai, 2008).
Manufacturing
is a process where raw materials are converted to finished goods that meet a
customer’s specifications, (www.businessdictionary.com). It is also the
assembly of parts into finished products. The output of the manufacturing
sector contributes to the Gross Domestic Product of a nation. The manufacturing
system is one of the potential keys to modernization, it creates opportunities
for skilled jobs, and provides positive overmuch effects (Tybout, 2000).
Archaically, most economies have enjoyed successful transformation as a result
of the growth in the output of manufacturing sector. In Africa, the
manufacturing performance has been poor over the last three decades. The share
of the manufacturing sector in Nigeria’s GDP was 9 per cent in 1970, 10 per
cent in 1980, declining to 8 per cent in 1990 and 1998, showing instability in
the contribution of the sector to gross domestic output. Presently,
manufacturing sector contributes about 5% GDP to the Nigerian economy, which is
low among some other countries of Africa; compare the 20 per cent levels for
South Africa and Mauritius. Ayorinde and
Ola (2001) described the manufacturing sector as a dynamic sector of the
Nigerian economy.
There is no specific definition of
small – scale and large – scale industries rather it varies from one country to
another. In most of the countries, the criteria for defining small – scale and
large – scale enterprises are related to the size of employment. Thus, what is
assumed small industry in a developed country like the UK could be classified
as large in a developing country like Nigeria (Evbuomwan
et al., 2016). In U.S.A small business is assumed
to be one, which has employment of less than 500 people. In the U.K it is less
than 20 skilled workers, in Germany less than 300 workers, in Sweden and Italy
less than 50 and 500 people respectively. In Japan, the investments in
industrial undertakings should not exceed 100 million employing not more than
300 employees (SIDBI, 2000). However, the definition of small and large
industries in Nigeria as produced by the Small and Medium Enterprises
Development Agency of Nigeria (SMEDAN) in 2007, is adopted in this paper
because it is in line with the definition in other developing countries like
Indonesia as revealed by Timberg, (2000) and Ghana (Elijah and Nsikak, 2011) as
well as in the European Union (EU) (European Commission, 2007). In Nigeria, small-scale industries are
classified as one with employment between 10 – 49 employees with about 50
million naira worth of assets excluding land and building. The large – scale
industries is one with employment of 200 and above employees with above 500
million naira worth of assets excluding land and buildings (Evbuomwan
et al., 2016).
Productivity is a ratio that
measures how well a manufacturing industries put resources into goods and
services. The
concept of productivity is also increasingly linked with quantity of output,
input and the process itself. An element of key importance is the quality of workforce,
its management and its working conditions and it has been generally recognized
that improving quality of working life and rising productivity do tend to go
hand in hand. Most manufacturing industries aim at
maximum productivity from their workforce and equipment. There are however, a
number of occupational accidents and injuries that staff are exposed to in the
production departments of manufacturing industries in Nigeria, leading to
decreased employee productivity (Katsuro et
al., 2010). Hence, industrial safety has been a general concern of the
well-being of workers in the workplace (Festus et al., 2013). Therefore, the need for safety measures which are
facilities and strategies that are put in place to prevent or minimize accident
during various stages of a project (Okeola, 2009).
Generally, the condition of being protected from or unlikely to
cause danger, risk, or injury
(Rim-Rukeh,
2009). It is seen also as state of being free from hazard and all conditions
that have the capacity of inflicting damage, harm or injury (Hughes, 2007;
Cole, 2002). The term safety does not imply the total risk-free, but the
elimination of unnecessary risks. Safety is the
immunity from the occurrence or risk of injury or loss (Aswathappa, 2004). From
the work, industrial safety was deduced to mean the protection of workers from
the dangers of industrial accidents.
International
Labour Organization (ILO, 2012) about 6,300 people are reported dead as a
result of industrial accidents or work-related diseases, while over 2.3 million
deaths per year, 317 million accidents occur on the job annually; were in many
cases there are elongated absence from work. The human cost of this daily
crunch is colossal, and the economic hardship of indigent industrial safety and
health practices is estimated at 4 percent of global Gross Domestic Product
each year. Most of these deaths and injuries occur particularly in developing
countries like Nigeria where a large part of the population is engaged in
hazardous activities taking severe toll on these economies.
The
documentary of the reasons of the high rate of accidents and poor industrial
safety records is pivotal in developing countries. The lack of experience from
developed countries’ technology and machinery is quoted as a cause and many
others. According to Takala (2002), the safe work program director of the ILO,
lack of training and skills have remained the greatest factor industrial
accident in the developing nations. Majority of the people in these economies
have little or no experience in working with heavy industry. (Perez-Floriano
and Gonzalez, 2007). McLain and Jarrell (2007) suggested that the agreeableness
of safety and production demands has a positive impact on safe work behavior.
Therefore, such findings revealed that managers should pay attention to
agreeableness of safety and work as an integral part of work design. It implies
that to ensure a good level of productivity in the manufacturing industries;
operation of machines, plant and equipment, use of hand tools and many other
operations call for attention from relevant authorities, regulatory bodies,
societies, scientists, professionals and businessmen to establish safety and
health management programs and laws governing the industry and all workers
activities (Badekale, 2012). Lehtinen
(2001) argued that health and safe working conditions improve productivity and
will thus, help developing countries become competitive in the globalized world
economy and that is why many industries are making efforts to ensure that
safety regulations are adhered to at the work place effectively.
1.2 STATEMENT OF PROBLEM
Health
and Safety has not been given enough attention in most of the manufacturing
industries in Nigeria thereby making the workmen on site prone to accident. As
a result of this poor attitude it is found necessary to create a solution to
the problem encountered in the provision of Health and Safety of workers on
site (Badekale, 2012).
Manufacturing industries is the most endangered environments
employees do work. It is where workers are exposed to all forms hazards and
other situations that compromise their safety such as inordinate noise,
operating on complex machines and other conditions that cause injury to
employees. Casio (1996) acclaimed that machines and work environment have been
the major safety hazards threats. This is attributed to disregard to safety
measures and regulations instituted by the organisation. The effects of
non-compliance to safety regulations result in accidents bringing about rampant
loss of lives, injury and damages to properties which affects industrial
productivity negatively. Thus, resources meant to be used for staff development
or expansion of business are spent on medical bills, given as incentives and
hiring of temporary, paying for compensation and related legal issues which
also has impact on the industry.
The attempt at determining effect of compliance to
safety regulations on productivity of industries is to use it at a fore against
which to compare and understand the status and problems of adhering to safety
regulations and its effect on productivity in the Nigerian manufacturing sector,
in order to proffer solutions.
In Nigeria, industrial accidents
are usually under-reported, which makes it difficult to obtain an accurate
number of accidents. In recent time, statistics has shown that workplace safety
research were rarely carried out at industrial area despite presence of high
rate of industrial accidents and negligence of safety precautions due to
controversial issues among safety experts on the appropriate measures of
predicting and preventing workplace accidents. Many
researchers have worked on similar area of study but most of the research have
always focused on safety policies and the consequences, sanctions or
punishments, yet no examination on the effect of safety compliance on
productivity. It is against this backdrop that this research is
focused on the level of effects of safety performance/compliance on
productivity between small scale manufacturing industries and large industries
in Nigeria.
1. 3 AIM AND
OBJECTIVES OF STUDY
The
aim of this study is to evaluate the effects of non-safety compliance on
productivity of manufacturing industries in Nigeria. The specific objectives
are;
1.
To identify the potential hazards and harmful practices in
the industries.
2.
To examine the
level of safety compliance between the small and large scale manufacturing
industries.
3.
To determine the effects
of non-safety compliance on productivity of Nigerian manufacturing industries.
1.4 SCOPE OF STUDY
This work is geared towards the
determination and comparison of the effects of non-safety compliance on productivity of small scale and
large manufacturing industries using data from the respective manufacturing
industries in Nigeria. Beside several factors that caused physical
accident in industries, this research is centered on exploring non-safety
compliance and its effect on productivity of large scale industries and small
scale industries. In achieving this goal, this study is restricted to five
years data (from 2012 to 2016) of twenty (20) selected manufacturing industries
in the southern part of Nigeria.
1.5 JUSTIFICATION
OF THE STUDY
The importance of
industrial safety on productivity in the manufacturing sector of the economy
cannot be overstated. It has remained pertinent that many Nigerian
manufacturing industries struggle to abide tenaciously to safety policies. This
acts of negligence and indifference is as a result of lack of knowledge on the
negative impact that industrial accident can have on the productivity of the
industries. Therefore, it is necessary that Nigerian manufacturing industries
both small and large be enlightened on the cost of negligence to safety
compliance in their respective industries. Hence, this research will render
insight on such cost.
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