THE IMPACT OF PRODUCTION PLANNING AND CONTROL IN THE MANUFACTURING INDUSTRY

THE IMPACT OF PRODUCTION PLANNING AND CONTROL IN THE MANUFACTURING INDUSTRY

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ABSTRACT

This research work, accessing the impact of production planning and control on productivity in the manufacturing industry. This study is focused on Nigeria Bottling Company (Coca-Cola), Kaduna. The study covers five chapters, Chapter one introduces the subject matter and spells out the significance of the study. Chapter two make criteria review of the current literature on the subject matter. The third chapter presents the methods of data collections, chapter four shows the presentations and the analysis of the data collected from the respondents. The fifth chapter shows the summary, recommendation and conclusion. The population for this study covers three hundred staff of Cocacola, the researcher randomly selects thirty staff as his sample size. The hypothesis formulated of his study includes: H0: Effective production planning and control do not enhance organizational productivity. H1: Effective production planning and control enhance organizational productivity. Data collected were presented and analyzed in a tabular form using percentage. It was further tested with the use of chi-square and hypothesis was confirmed.

CHAPTER ONE

1.1    BACKGROUND OF THE STUDY

Production Planning and control are terms that though commonly used have witness a lot of changes both in meaning and scope in the past four years, for example, based on the extended view of production to include the tradition of all of production services both as discipline of study and as a profession can now be practiced in all kind of organization. As in other field of management, planning and control forms the primary function of the production management. It is for this reason that this research has decided to take a critical look at production, planning and control as practiced in beverage industrial sector of the Nigeria economy. This is informed by the variety of major product and beverage produce in industry as exemplified by Nigerian Bottling Company (NBC) Kaduna.

Buffa (2002) defined production as the process by which goods and services are created. Production cab be regarded as the central focus of any manufacturing concern. It is that stage where the real action takes place i.e. the transformation of raw materials (input) into finished products (output). The planning and control operation are necessary because in every manufacturing unit there are people, machine and materials. There is the need to plan all expensive resources required for production in order to make effective use of them and maximize profit making for the organization.

Modern production is complex hence both technologically related operation and administrative activities must therefore be planned carefully to make account of all the possible restructure, constraints and advantages. In planning to meet order at less cost in the object of production planning.

According to Mayer (2002), there is a logic behind the operation of the production process, it sterns from the types of technology as well as in type of production in the particular manufacturing process.

Wild (2002) defined production as a managerial function that tends to design, plan what to produce, when to produce, where to produce and for whom to produce, the quantity, the quality to produce and for whom to produce. These function attempts to define the key decision model involved in production i.e. the long term and the short term planning and as well as identify the procedure and their control in a cost effective way.

Apple (2002) defined it as the activity of transforming raw material or component into finished product” whatever the definition it is clear that production essentially entails the production of goods and services.

Production planning involve not only the types of operation to the used but the order of these operations as well as a time or duration the operation should take how the plan should be laid out.

1.2       STATEMENT OF THE PROBLEM

Most organization production certainties are slow and time given to complete a given task always exceeds the expected given time. This study intends to investigate and know the reasons behind productivity among the employees.

And also a times, the use of quantitative techniques in assigning jobs in an organization, it is properly maintained, they get short of material due to lack of good control of stock. The scope and concept of production management is not fully known in some managers. The problem of production planning and control will be discussed in this work and solution.

Lastly, the study intends to know the problems associated with activities of planning in relation to Cocacola Production and Solution suggested.

1.3       OBJECTIVES OF THE STUDY

The following are the objectives of this study:

i)            To assess the impact of production planning and control on manufacturing industry.

ii)          To determine how effective planning and control enhance organizational productivity.

iii)        To identify the strategy for enhancing the organizational productivity.

iv)         To assess adequacy in controlling materials.

1.4       STATEMENT OF HYPOTHESIS

H0: Effective production planning and control do not enhance organizational productivity.

H1: Effective production planning and control enhance organizational productivity.

1.5       SIGNIFICANCE OF THE STUDY

The significance of this study cannot be overemphasized, because it helps manager and organization to minimize the production time and costs, by telling a production facility when to make with which staffs on which equipment or method to apply at any given situation or circumstances. It will also help the organization to maximize the efficiency of the operation and reduce costs thereby maximizing profit through effective use of plant and machines and by taking corrective measures. The organization will see it own lapses and improve on them so as to meet it own objective; other organization in the organization same time take correction on their production system.

1.6       SCOPE OF THE STUDY

Production Planning and Control being a complex and dynamic concept has a wide area of coverage so it is clear that research of this nature cannot hold without problem. As such this work is limited to the area that are relevant to the problem under investigation that is effective production planning and control on manufacturing industry taken Nigerian Bottling Company as a Case Study.

The major areas covered are the bottling line where the actual production scheduling and programming activities mostly take place. It covers other department in relation to production because they are all interrelated.

1.7       LIMITATIONS OF THE STUDY

In the course of writing this work some limitations were encountered. For instance, the high cost of transportation limited the movement of the researcher. Also time constraint or limitation is another factor since the semester is a short one.

Another problem encountered is the respondents attitude while administering the questionnaire some of the employees showed non chalant attitude towards this work. Despite these problems faced, the researchers was lucky to gather enough materials necessary for the successful completion of the project.

1.8       HISTORICAL BACKGROUND OF THE CASE STUDY

Coca – Cola is the world – leading manufacturer of soft drinks sold in more than 145 countries. A total of 250 million bottles are consumed daily in all parts of the globe from Canada in North to Argentina and New Zealand in the South, from Alaska to China, from Mexico down to Nigeria. Coca – Cola first came to Nigeria in 1953 when Nigerian Bottling Company set up its first plant in Lagos. AJ Leventis brought Coca – Cola to Nigeria and is the owner of Nigerian Bottling Company (NBC).

The first plant was built in Apapa, Lagos. The Coca – cola company in Kaduna was established in the year 1976 when bottling commenced. It was to be the beginning of an exciting story of growth and development particularly during the last 10 years of the 20th century.

Nigerian Bottling Company is today Nigeria’s No. 1 bottler of s oft drinks, selling more than 6 million bottles a day. This figure made which is still gaining with the continuing expansion of the existing 12 plants and the opening of new plants in various parts of the federation.

The success of the Coca – cola has brought with it the development of a number of many industries, all contributing to the growth of the Nigerian economy, the Delta Glass Company, Ugheli which supplies millions of bottles requires to keep a large bottling company in operation in operation and the crown product factory in Ijebu – Ode and Kano which manufacture the metal crown used to seal the bottle. The Benin Plastic Company makes plastic crates for carrying the bottles. In addition, the trucks which are familiar in many parts of the country delivering soft drinks to more than sixty thousand dealers are assembled in Nigeria. Nigerian Bottling Company employs over 6,00 Nigerians in all fields of operation.

1.9       DEFINITION OF TERMS

i)            Production Schedule: This master production schedule comes next in sequence of events to produce products and services. It is proceeded by demand forecast and production plan.

ii)          Process Layout: This is characterized by situation in which similar machines and services are located together.

iii)        Line Layout: This is a production in which the products moves down a line, pass successive work situation where one operation is done after another.

iv)         Intermittent Production: This is where physical facilities must be flexible enough to handle a wide variety and size. The basis nature of activities impose change of the design.

v)           Inventory: This is keeping track of stock of materials needed for work at any point in time for the smooth operation of the business.

vi)         Materials: These are items used directly as part of the product being produced.

vii)       Production: Process of producing and manufactured goods.





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