THE IMPACT OF PRODUCTION PLANNING AND CONTROL ON OPERATIONAL COST OF THE MANUFACTURING INDUSTRY (A Case Study of Nigeria Bottling Company Plc, Kaduna)
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THE
IMPACT OF PRODUCTION PLANNING AND CONTROL ON OPERATIONAL COST OF THE
MANUFACTURING INDUSTRY
(A Case Study of Nigeria Bottling Company Plc,
Kaduna)
ABSTRACT
This research work was designed to examine at
the impact of production planning and control in manufacturing company as a
primary function of production management. Consequently, it integrates the
planning and control activities with other managerial activities. The project
views the production planning and control in the context of the business
operation and consistently relates this function of management to relevant
activities in production marketing and finance departments. It urges that in
most business operations to day lack of planning in unit, section, department
or organisation as a whole leads to over production or under production and
some time complete failure of the business organisation especially in the
production planning and control department. Planning in the organisation
hierarchy, size and product. The project stresses the immense value attached to
production planning and control as well as its application of systematic
planning techniques, on the of overall production operations management. The
study is also brings to light the importance of production planning and control
and the role of forecasting in production management
TABLE OF CONTENTS
Title page - - - - - - - - - - i
Declaration - - - - - - - - - ii
Approval - - - - -- - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vii
Table of contents - - - - - - - - viii
CHAPTER ONE
1.0
Introduction - - - - - - - - 1
1.1 Background
Setting of the Study - - - - 3
1.2
Statement of the Problems - - - - - 5
1.3
Objectives of the Study - - - - - - 6
1.4
Hypothesis - - - - - - - - 7
1.5
Scope of the study - - - -- - - - 8
1.6
Significance of the study - - - - - - 9
1.7
Definition of Key Terms - - - - - - 10
CHAPTER TWO Literature Review
2.0 Introduction - - - - - - - - 12
2.1
The Meaning of Production - - - - - 12
2.2
Production Planning - - - - - - 14
2.3
Production Design - - - - - - - 15
2.4
Short-Term Production Planning - - - - 20
2.5
Production Control - - - - - - - 21
2.6
Planning and Control - - - - - - 23
2.7
Relationship Between Planning and Control - - 28
2.8 Continuous
Versus Intermittent Systems - - - 29
2.9 Production
Design and Process Planning - - 30
2.10 Basic Alternative and Process Selection - - - 32
CHAPTER THREE: Research Methodology
3.0 Introduction - - - - - - - - 36
3.1 Research
Methodology - - - - - - 37
3.2 Area
of Study - - - - - - - - 38
3.3 Research
Population - - - - - - - 39
3.4 Sample
and Sampling Techniques - - - - 39
3.5 Instrument
of Data Collection - - - - - 40
3.6 Validation
of the Instruments - - - - - 42
3.7 Method
of Data Collection - - - - - -
43
3.8 Data
Analysis - - - - - - - - 44
CHAPTER FOUR
4.0 Presentation and
Analysis of Data - - - - - 46
4.1 Testing
Hypothesis - - - - - - - 62
CHAPTER FIVE:
5.0 Summary,
Conclusion and Recommendations - - 65
5.1 Summary
of Findings- - - - - - - 65
5.2
Conclusion - - - - - - - - 66
5.3
Recommendation s - - - - - - - 67
Bibliography
- - - - - - - - 69
Appendix - - - - - - - - - 70
CHAPTER ONE
GENERAL
INTRODUCTION
1.0 INTRODUCTION
Production
planning and control are term that though commonly used have witness a lot of
changes both in meaning and scope in the past few years. For example based on the extended view of
production to include the provision of all sort of service production both as a
discipline of study and as a profession can now be practiced in all king of
organization.
As
in other fields of management planning and control from the primary function of
production management. It is for this
reason that the 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 produced in the
industry as exemplified by the Nigerian Bottling Company (NBC) Kaduna. Production can be regarded as the centre
focus of any manufacturing concern. It
is the stage where the real action takes place that is the transformation of
raw materials (inputs) into finished products (outputs). The planning and control operations are
necessary because in every manufacturing unit there are people, machine and material. 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 organizations
Modern
production is complex hence both technologically related operation and administrative
activities must therefore be planned carefully to make account of all the
possible restriction constraints and advantages. In planning to meet orders at less cost is
the objects of production planning.
Production
planning involves not only types of operation to be used but the order of these
operation as well as a time of duration the operation should take and how the
plan should be laid out.
This
maiden chapter consider the background setting of the study. It defines the problem and objectives of the
study. The hypothesis are formulated and
the scope and limitation of the study defined.
The chapter end with the significance of the study stated and key term
defined.
1.1 BACKGROUND SETTING OF THE 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 every day in all parts of the globe from Canada in the
north to Argentina and new zeal end in the South from Alaska to china from
Mexico to Nigeria. Coca-cola first came
to Nigeria in 1953 when Nigeria Bottling Company set up the first plant in
Lagos A.J. Leventist brought Coca-cola to Nigeria and he is the owner of
Nigerian Bottling Company (NBC). The
first plant was built in Apapa, Lagos while Coco-cola Company was established
in Kaduna in the year 1976 when bottling commenced. It was to the beginning of an exciting story
of growth and development particularly during the last 10 years of the 20th
century.
Nigerian
Bottling of soft drink selling more than 6 million bottles per day this figure
which is still growing with the continuing expansion of the existing 12 plants
and the opening of brand new plant in various parts of the federation. Fanta by far the number one best seller in
the orange segment and sprite is the most widely sold lemon lime drink in
Nigeria other products bottled by NBC include Fanta ginger Ale, Fanta tonic,
Fanta soda club soda and crest bitter lemon.
The
success of Coca-cola has brought with it the development of a number of sister
industries all contributing to the growth of the Nigerian economy the Delta
Glass Company Ughelli which supplies million required to keep a large bottling
company in operation and the crown product factory in ijebu-ode and Kano which
manufacture the metal crown to seal the bottle.
The
Benin plastic company which make the 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 sold assembled in
Nigeria. Nigerian Bottling Company is
also the largest manufacturer of Co2 in the country used for
carbonating your favourite soft drinks, Nigeria Bottling is all fields of
operation.
1.2 STATEMENT OF THE PROBLEMS
The
success of our present day industries depend on how to manage our resources and
to enhance growth and development for the better industrialization. Therefore, this research work is concerned
with identifying and proffering remedies to the problems of production planning
and control in the manufacturing company.
To this end, the following question occupy our mind as problem before
the research. What role does the choice
of production planning and control play in the beverage industry.
Also
the researchers want to know the reason why planning and control is very
important and useful in every manufacturing company.
Lastly,
the researchers want to analyze the level of development through the impact of
production planning and control by means of planning and control. Based on the above, there are need to rectify
the problem of lack of planning and control and the general weak attitude
towards planning and control (organization especially the beverage activities.
RESEARCH
QUESTIONS
1.
What is the impact of production and
control to operational cost in manufacturing sector?
2.
What are the problems that are likely
to occur if production planning and control is not taken into consideration at
the nearly stage of production process.
1.3 OBJECTIVES OF THE STUDY
The
main purpose of this study is to full of the basic requirement for the award of
a Higher Diploma certificate in production and operations management studies
Kaduna Polytechnic Kaduna.
Secondly,
the study aims to examine the theory and practice of production planning and
control in manufacturing company that deals with the production beverage.
Furthermore,
the study is aimed at examining the effectiveness of the application of
production planning and control techniques and its impact or otherwise for
growth of the company, more specially the research shell dwell on the relevance
of production planning and control to the operational cost and expenses in
organization. Conclusively, efforts
shall be made to give recommendation necessary.
1.4 HYPOTHESIS
This
research work is specially designed to test the following hypothesis.
Ho
– effective production planning and control does not significantly reduce
operational cost in manufacturing company.
Hi
– effective production planning and control significantly reduces operational
cost in manufacturing company (NBC) Kaduna.
1.5 SCOPE AND LIMITATION OF THE STUDY
This
research covers the historical life cycle of coca-cola from the year 1953 to
2003 specially the study concentrates on the Kaduna plant. Its area of interest is the manufacturing or
industrial sector of Nigeria economy in the field of management studies the
research examines the concept of production planning and control as it affects
operation cost. The research used NBC
coca-cola as its case study. The main
problem of any kind of research work is the financial constraint that is one of
the major thing that affect the quality of the research work, this is due to
the escalating price of stationeries and transportation cost of data
acquisition.
Limitation
is likely difficulties that may impair the quality of research work. One limitation to good quality of the
research work is uncooperative attitude to some management personnel in
granting access to relevant information and documents that is vital to the
research.
Time
factor: – this is essential for the success of any
research work. The need for thoroughness
and accuracy demands a considerable length of time. But the available time is short and the
researcher has to attend lectures as well as other assignments. Despite this, the research will meet the
demand of users.
1.6
SIGNIFICANCE OF THE STUDY
This
is trying to highlights more on the aims and objectives why the study is being
carried out. First to know the basis of
the study and to look at the issue of production planning and control that has
being taking place at (NBC) to know each individual process that make it
possible. One bottle of soft drink what
it takes from the beginning to the end to step and details of the whole
process.
Hence,
the research is relevant to the workers of NBC student of the production
management and transformation in its fields of production and operations
management.
1.7 DEFINATION OF KEY TERMS
NBC - Nigeria Bottling Company
CBM - Condition
Base Maintenance
EXIM - Excellence
in Maintenance
QAD - Quality
Assurance Department
SLP - Safety
and Loss Prevention
PRODUCTION
SCHEDULE
This
master production comes next in the sequence of sevents to produce products and
services. It is proceeded by demand
forecast and a production plant.
BATCH PRODUCTION
The
batch production which is much like continuous manufacture of the processing
kind you find it in making or preparation of foods, paper, glass, rubber and
even steel.
PROCESS
LAYOUT
Characterized
by situation in which similar machines and services are located together.
LINE
LAYOUT
Are
production in which the product moves down in a line pass successive work station where one
operation after another is done.
INTERMITTENT
PRODUCTION
This
where physical facilities must be flexible enough to handle a wide variety of
product and size. The basic nature of
activities imposes change of the design.
INVENTORY
This
is keeping track of stock of materials needed for work at any given point in
time i.e. use of operation of the business.
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