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THE IMPACT OF PRODUCTION PLANNING AND CONTROL ON OPERATIONAL COST OF MANUFACTURING INDUSTRIES_ A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC KADUNA
Production is the central point of any manufacturing concern basically, it is the stage where real action takes place either the transformation of raw materials (input) into finished products that is (output) concept of production has been subject to various definition Buffa (1980) define production as the process by which goods and services are created, similarly apple by RC (1996) defined it as the activity of transformation of raw materials or components into finished product. Whatever the definition, it is clear that production essentially entails the production of goods and service.
The idea of production dates back to the ancient time when human beings conceive modes of productive system. Beginning with the family hand craft system. Cumulating to mass production line and automation concept, thus production are unique invention of mankind. They are the means by which we create goods and services needed from sustain modern society. The determinants of the production process can never be over emphasized. If the development of production unit are accompanied by successive change from job production to batch and finally to follow which stress that manufacturing capacity is only one of the factors which determines the type of production Mayer, R.R. (1984). There is a logic behind the operation of the production process, it stems from type of technology involved in the complexity and size of the products as well as in type of production in the particular manufacturing process.
1.1 BACKGROUND TO THE STUDY
Many organizations today do not take the production planning and control serious. They fail to understand that, the success and failure of any organization depend mostly on the various categories of planning and control. The company should have a well articulated design programme for systematic management of planning and control to enhance the transformation of policies to continue in practical realities.Stevenson (2002), stated that production planning and control is the direction and co-ordination of the firm’s material and physical facilities towards the attainment of pre-specified production goal in the most efficient available manner.
Production can be regarded as the centre focus of any manufacturing concern. It is the stage where the real action takes places, that is, the transformation of raw material (input) into finished product (output). Planning and control in some operation are necessary because in every manufacturing unit there are people, machine and material. There is need to plan all resources required for production in order to make effective use of them and maximized profit making for organization. According to Imaga (2003), production planning and control ensure co-ordinate flow of work so that the required numbers of product in the required quantity and of required quality at the required time at optimum efficiency.Production planning and control ensure the continuous flow of production to achieve smooth and continuous production by eliminating all sorts of bottlenecks in the process of production through well planned routing and scheduling requirements relating to production work. Sharms (2004), maintained that production planning and control is a co-ordinating agency which co-ordinate the activities of engineering. Purchasing production, selling and stock control department. Successfully organization today realize the fact that human resources deserve and requires attention because it is the significant factor in management strategic decision which planning and control helps to achieve in an organization.
1.2 STATEMENT OF THE PROBLEM
The success of our present day industries depends on how well to manage resources to enhance growth and development for better industrialization. Therefore, this research work is concerned with identifying and proffering remedies to the problem of production planning and control of the manufacturing company. To this end, the following questions occupied one’s mind as the problem before the researcher
(1)What role does the choice of production planning and control plays in the manufacturing industries?
(2)Why planning and control is very important and useful in every manufacturing company?
(3)Lastly, how does the level of development affect a manufacturing industry through the impact of production planning and control?
Based on the above, there is need to rectify the problem of lack of planning and control as a general weak attitude toward planning and control especially in the Nigeria Bottling Company (NBC) Kaduna.
1.3 RESEARCH QUESTIONS
Operating problems of management can be placed in the general context of planning and control the research question of this project is therefore to:
(1) Does effective production planning and control reduce operational cost in a manufacturing company?
(2) How does increase in productivity and as well as evaluation of performance reduces or affect production planning and control in a manufacturing company?
(3) What contribution do planning and control have made to the development of industry?
1.4 OBJECTIVES OF THE STUDY
The objectives of this study are:
(1)To find out whether effective production and control reduce operational cost in a manufacturing company.
(2)To find out whether increase in productivity and as well as evaluation of performance affect manufacturing company
(3)To find out what contribution does planning and control have made to the development of a manufacturing company
1.5 STATEMENT OF HYPOTHESES
Hypothesis is a declarative statement of prediction meant to help in the clarification of research questions. For the purpose of guidance in order to enhance this study, the following hypothesis would be used.
(1) H0: Effective production planning and control does not significantly reduce operational cost in manufacturing company.
Hi: Effective production planning and control reduces operational cost of manufacturing company.
(2) H0: There is no relationship between planning and control in a manufacturing industries like Nigeria Bottling Company.
Hi: There is relationship between planning and control in a manufacturing industries like Nigeria Bottling Company.
(3) H0: Poorly defined organizational objectives cannot reduce the level of production.
Hi: Poorly organizational objective can reduce the level of production.
1.6 SCOPE OF THE STUDY
This research covers the historical life of coca-cola from the year 1953 to year 2003 specially the study concentrate on the Kaduna plant.
Its area of interest is the manufacturing or industrial sectors of Nigeria economy in the field of management studies. The research examines the concept of production planning and control as it affects operational cost. The research use NBC coca-cola as its case study.
1.7 LIMITATIONS OF THE STUDY
The main problem of research work is the financial constraints that is one of the major thing that affect the quality of the research work, this is due to escalating price of stationeries and transportation cost of data acquisition.
But the available time is short and the researcher has to attend lectures as well as other assignment. Despite, this research will meet the demand of users.
1.7 SIGNIFICANCE OF THE STUDY
This study will review the concept of production planning and control as it affects operational cost.
To the Nigeria Bottling Company, the study would analyze its performance using data taken into consideration what it has achieved as against what it could achieve.
This would enable the Nigeria Bottling Company to take necessary correction measures that would enable it to attain its stated goals and objective.
Finally, it will help employees of Nigeria Bottling Company as well as any other related field and to their future workers as their secondary data that could be related to the study and further research studies.
1.8 DEFINITION OF TERMS
(1) Production: Is defines as the transformation of raw materials or components into finished product.
(2) Planning: It is defined as deciding in advance what to do, how to do it and who to do it.
(3) Control: This is a managerial function of measuring and correcting the performance of activities of subordinate in order to make sure that enterprise objectives and plans devised to attain them are accomplished.
(4) NBC: Nigeria Bottling Company
(5) GNP: Gross National Product
(6) SLP: Safety and Loss Prevention
1.9 ORGANIZATION OF WORK
Chapter one focuses on the background to the study while chapter two deals with literature review and chapter three discuss the research methodology, chapter four shows data presentation and analysis and chapter five treats summary and recommendations.