The analysis of factors affecting performance Of chemelil sugar company.

Abstract

Chemelil Sugar Company is located along the Awasi nyando road.It started in the year 1965 as a private company. The original shareholding was 57%, private and 43% government ownership. Low cane yields and low cane quality due to low performance of most agricultural activities in land preparation, planting, cane husbandry and harvesting and transport. Cane shortage has been a major limiting factor in the performance of the company crushing capacity The general objective is to analyse factors affecting performance,while the specific objectives are the relationship between time stoppages due to factory and lack of cane, and also lack of cane crushed affects the performance of the company The target population of this study had comprised of the performance of chemelil Sugar Company for a period of 48 years beginning from 1968 -2016. The sample size for the study was the performance of chemelil sugar company for a period of 5 years as from 2005-2014.Descriptive research design was employed in this study. Secondary data was required based on their ease of accessibility using the company’s performance for the last 10 years beginning from 2005-2014 which will be obtained from the company’s documents. Analysis was done using the software Minitab version 17 to produce time series analysis Simple linear regression model : Yi= β0 + β 1X1+ β 2X2+ β 3X3+UI The process of data analysis involved several stages namely; Trend analysis of the independent variables, Descriptive statistics and Regression analysis. Quantitative methods of data analysis were adopted in this study. Quantitative analysis involved use of mean, median, quartiles, Maximum, Minimun, Standard deviation and Standard Error. Relationship between dependent and independent variables was fitted using the simple regression model – Yi= B0 +B1X1+B2X2+B3X3+UI; where Yi is the independent variable (amount of sugar produced) X are the dependent variables (input). The adequacy of the regression model was tested using F-test based on the following Null and Alternative Hypothesis.Generally the amount of sugar produced is to large extent affected by the amount of sugarcane crushed and to a small extent by the stoppage hours due to factory in operation. Howeverit’s also observed that the amount of sugar produced is not affected by the stoppage time due to lack of cane. It can therefore be concluded that in the future Chemelil sugar company will be collapsing following the general decline in the amount of sugar produced, the amount of cane crushed,the increase in the stoppage time due to factory and to a smaller amount stoppage time due to lack of sugar cane. This factors can be attributed to the low profits that leads to reduced performance of the company which may lead to possible closure of the company