THE IMPACT OF PRODUCTION, PLANNING AND CONTROL ON PROFITABILITY IN SEVEN-UP BOTTLING COMPANY

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THE IMPACT OF PRODUCTION, PLANNING AND CONTROL ON PROFITABILITY IN SEVEN-UP BOTTLING COMPANY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

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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