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THE IMPACT OF PRODUCTION PLANNING AND CONTROL ON
PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Production
Planning and Control are terms that though commonly used have witnessed 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 organizations. 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 into production planning
and control as practical in beverage industrial sector of the Nigerian economy.
This is informed by the variety of major product and beverage products 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 can 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 product (output).
The
Planning and Control operation are necessary because in every manufacturing
unit there are people, machine and materials for production. There is the need
to plan all expensive resources required for production in order to make
effective use of them and maximize profit 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, constraint and advantages. For planning to
meet order at less cost, there must be production planning.
According
to Mayer (2002), there is a logic behind the operation of the production
process, it starts from the types of technology as well as the 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 as well as identify the procedure and
control in a cost effective way.
Apple
(2002) defines production as the activity of transforming raw materials or
components into finished product. However, the definition is clear that
production essentially entails the transformation of raw materials into
finished goods and services.
Production
planning involve not only the types of operations to be used but the order of
these operations as well as a time or duration the operation would take and how
the plan should be laid out.
1.2 STATEMENT
OF PROBLEM
Most
organization production processes are slow and the time given to complete a
given task is always exceeded. This study intends to investigate and know the
reasons behind slow productivity among the employees.
And
most time, the use of quantitative techniques in assigning a job in an organization
is not properly maintained, there is
shortage of materials due to lack of good stock control. The scope and
concept of production management is not fully known by some managers. The
problem and solution of production planning and control will be discussed in
this research work.
Lastly,
the study intends to know the problems associated with the activities of
planning and control in relation to Coca-Cola production and suggest possible
solutions.
1.3 OBJECTIVES
OF THE STUDY
The following are the objectives of
this study:
i)
To assess the
impact of Production Planning and control in Nigerian Bottling Company.
ii)
To determine
how effective planning and control enhance the productivity of Nigerian
Bottling Company.
iii)
To identify
the strategy for enhancing the productivity of Nigerian Bottling Company.
iv)
To assess
adequate measures in controlling materials in Nigerian Bottling Company.
1.4 STATEMENT
OF HYPOTHESIS
H0: Effective Production Planning and Control
does not enhance the productivity of Nigerian Bottling Company.
H1: Effective
Production Planning and Control enhances the productivity of Nigerian Bottling
Company productivity.
1.5 SIGNIFICANCE
OF THE STUDY
The
significance of this study cannot be overemphasized, because it helps managers
and organizations to minimize the time and cost of production by revealing to a
production manager when to assign task, which staff to assign the task, on
which equipments or method to apply at any given situation or circumstances. It
will also help Nigerian Bottling Company to maximize the efficiency of the
operation and reduce production cost thereby maximizing profit through
effective use of plant and machine sand by taking corrective measures. Nigerian
Bottling Company will see its own lapses and improve on them so as to meet its
own objective and also other organizations will 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 areas that are relevant to the
problem under investigation that is effective production planning and control
taking Nigerian Bottling Company into consideration.
The
major areas covered are the bottling line where the actual production
scheduling and programming activities mostly take place. It covers other
departments in relation to production because they are all interrelated.
1.7 LIMITATION
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 is another factor. Finance, inadequate answers
to question from the organization (Nigerian Bottling Company).
Another
problem encountered is the respondents attitude while administering the
questionnaire. Some of the employees showed non-challant attitude towards this
work. Despite these problems faced, the researcher was lucky to gather adequate
materials necessary for the successful completion of this project.
1.8 HISTORICAL
BACKGROUND OF THE CASE STUDY
Coca-Cola
first arrived Nigeria in (1951), that same year, the Nigerian Bottling Company
Ltd (NBC) was incorporated to bottle and sell carbonated beverages. NBC has the
sole franchise to bottle Coca-Cola products in Nigeria.
Coca-Cola
was an instant hit with the Nigerian consumer and has remained so over the last
six decades. NBC has continued its journey in keeping its promise of refreshing
consumers, straightening its communities, enhancing the workplace and
preserving the environment while recording many memorable milestones along the
way. To mention a few:
1953: Production of Coca-Cola began at a bottling
facility in Ebute-metta, Lagos State. The same year the company opened its
first bottling plant in Apapa.
1960: The year Nigeria gained independence, NBC
executed the one million cases a year mark.
1961: Commissioned its second bottling facility
at Ibadan, Oyo State and rapidly expanded its operation over the next couple of
years.
1972: Listed its shares on the Nigerian stock
exchange market and became a publicly quoted company.
1991: Acquired the Eva Premium Water and
Schweppes brands.
2000: Became a member of the newly formed
Coca-Cola Hellenic Bottling Company S.A. (an anchor bottling group which
operates in 28 countries worldwide).
2001: Commissioned the first ultra-modern fully
automated NBC plant in Benin.
2003: Launched the Five-Alive juice brand.
2004: Launched Polyethylene Terephthalate (PET)
packaging for its sparkling soft drinks category.
2006: Launched the energy drink, Burn.
2007: Launched on-the-go can packaging for core
brands Coca-Cola, Fanta and Sprite in 2006.
2008: Introduced the more environmentally
friendly ultra glass packaging for its returnable glass bottle product segment.
2010: Today the operation stands at 13 facilities
and 59 depots across the country.
2011: The company was recognized for its
corporate social responsibilities as the most Socially Responsible Company in
Nigeria and most Environment Friendly Company at the Social Enterprise
Reporting Awards. The company obtained Nigeria’s Fast Food Safety System
Certification (FSSC) 22000.
1.9 DEFINITION
OF TERMS
i) Production
Schedule: Is a project plan of how the production budget will be spent
over a given time scale for every phase of production. It is also a time-table
for the use of resources and processes required by a business to produce goods
or provide services.
ii) Process
Layout: It is also known as functional layout or job-shop layout, it
involves a group of all similar types of equipment or functions called the
lathe machines in one area, all drilling machines in another area, while all
assembly work are done on another area.
iii) Line
Layout: It is completely specified by the sequence of activities needed
to perform a given transformation. It is also the sequence line machines and
equipment needed to make a specified or specific product as set out in the same
areas.
iv) Intermittent
Production: Is sometimes described as job production which defines a
situation whereby a whole project or job is considered as one operation and
work is completed on each product before passing on the next segment.
v)
Inventory: The raw materials, work-in-progress goods and
completely finished goods that are considered to be the portion of a business
asset that are ready or will be ready for sale.
vi)
Material: Refers to substances or components with certain
physical properties that are used as inputs to production or manufacturing.
vii)
Production: Is the transformation of raw materials into
finished goods in order to satisfy human want or needs.
viii)
Planning: Is forecasting future circumstances and
requirements through deciding objectives, making long and short-term plans,
determining polices to be followed and standard to be set.
ix)
Control: It involves setting standard and correcting
deviation to follow plan where necessary.
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