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THE IMPACT OF PRODUCTION PLANNING AND CONTROL ON PRODUCTIVITY
CHAPTER ONE
INTRODUCTION
1.1 Background of the
study
The Impact of Production
Planning on Productivity in the Seven up Bottling Company Kaduna
Production is one of the
most important function of management in every organization. The essence of
production is to prepare or forecast
into the future in terms of production in an organization. As such Baryoko (2002)
opined that production planning is mainly concerned with the directing and
controlling of production process of an organization in order foster optimum
utilization of human and material resources
use in production, which brings about increase productivity and
consequently profit maximization.
Similarly Nwachukwu (2007)
opined that production planning involves the establishment of the overall
strategy and process design required for the realization of effective
production in an organization.
As such, production
planning’s particularly very important in a developing country where resources
are relatively scarce. In Nigeria, where many of the manufacturing firms are
inexperienced interms of technical know-how, production planning become very
imperative in other to avoid waste of resources. This is so because production
planning is a blue print for action. As such all manufacturing organization who
are into production need to plan their production in order to gain an optimum
utilization of their plant and raw materials use in production.
However, Ayo (2006) opined
that failure to engage in production planning give rise to inefficiency and
lack of direction. It make the organizations to constantly put off fire instead
of preventing its occurrence. This implies that production planning entails the
identification of what at business plans to do in terms of growth, development
and survival or continuous existence. But inspite of this, over 48.6% of
Nigeria indigenous organizations do not undertake a formal plan and do not have
production budgets.
It is against this
background that the researcher deemed it very imperative to investigate the
subject matter of this research. The impact of production planning on
productivity in seven-up bottling company Kaduna.
1.2 STATEMENT OF THE PROBLEM
Production planning as
earlier indicated is a very crucial aspect of any management process. Hence,
efficient production planning becomes very imperative for the sustainability of
an effective production system that would be cost effective and profitable.
But inspite of the
importance of production planning and its positive impact on productivity, it
is observed by Ayo (2006) that about 48.6% of Nigerian indigenous organizations
do not undertake a formal plan and do not have production budgets. As such
doubt is expressed about production planning in most organization in Nigeria.
Hence the need to investigate the impact of production planning on the
productivity of seven-up bottling company Kaduna become very imperatives and
the subject matter becomes an empirical problem worthy of investigation.
1.3 OBJECTIVES OF THE STUDY
The central objective of
the study is to investigate the impact of production planning on productivity
in seven-up bottling company Kaduna. Other sub-objectives are as follows:
To determine production planning activities
of seven-up bottling company Kaduna plant.
To evaluate the effect of production system
in manufacturing of seven up products?
To explore the meaning of production
planning
To evaluate the relevance of production
planning concept.
1.4 SIGNIFICANCE OF THE STUDY
This study examines the
impact of production planning on seven-up bottling company Kaduna plant. The
significance of the study of this magnitude cannot be overemphasized. The
government corporation, corporate organization, small and medium enterprise
involved in manufacturing will really find this study useful, especially as
they utilize the findings of this study. The study will also add to the
existing knowledge on production planning
and would also be useful to student and researchers.
The government corporation
and corporate organizations involved in manufacturing can use the finding of
this research in policy formulation regarding production planning.
Small and medium
enterprise may also find the findings of this study really significant as they
utilize the finding as a guideline in
formulating their production planning.
The study will also
contribute to knowledge by being a good reference material to students,
scholars, resources and individuals who may wish to undertake similar research.
This research can be used as a spring board to undertake their own work.
1.5 RESEARCH QUESTIONS
i. What are the production planed activities
in seven-up bottling company kaduna
ii. What is the effect of production system
in the manufacturing of seven up products?
iii. What is the meaning of production planning
iv. Is Production planning relevant to
productivity.
1.6 SCOPE OF THE STUDY
The study covers the
effect of production planning in seven-up bottling company Kaduna plant a
1.7 LIMITATION OF THE STUDY
Every research activity
has its constraints this particular one is however not an exception, certain
factors limit the process of writing this research work, which include:
Inadequate research materials the research:
Materials on this subject matter were very few. The much relied library is
filled up with outdated books, which are of little relevance to current
research. Moreover, the cost of new and updated materials are exorbitant which make them not readily
affordable.
Lack of cooperation of subjects: Sourcing
for information from source of respondents was not an easy task,
particularly with regards to some
information that are regarded as classified or highly confidential to the
company, the degree of cooperation of staff of seven-up bottling company was
minimal
Low
return of questionnaires in the process of gathering data, it was
discovered that not all questionnaires issued out were returned. Some of them
were also wrongly filled which means a great
deal of relevant information was held back, and which could have
enhanced the quality of this study.
Inaccessibility to subjects: Another
constraint encountered during the research is the inaccessibility to the
inventory management, manager who was not always available to provide desired
data.
1.8 DEFINITION OF TERM
Production: this refers to
an outline process that is aimed at satisfying human needs and wants. That is
the only process that deals with the transformation of raw materials into
finished good.
Planning: is a set of
managerial function which prepares forecast into the future and ensure that
decision regarding the use of human and material resources involved in
production is effectively managed
Production planning: This
is a managerial function concern with planning directing and controlling the
method to be used in manufacturing a product.
Schedule: This is
prescribing of when and where each operation necessary for the manufacturing of
a product is to be performed or the establishment of time at which to begin or
complete each event or activity.
Raw materials: this are
the basic inputs required for productions.
Work-in-progress: There
are semi-manufactured product. Product that is uncompleted and skill in the
process of production.
Finished good: product
that has been completed and ready for consumption.
Lead time: This refers to
the expected time of delivery.
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Production Planning & Control Improved organization to ensure that deliveries are consistently made on time. Procurement of raw materials requires better communication with suppliers. Inventory expenditures are lower. By improving efficiency, we were able to lower the cost of production.
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