IMPACT OF PRODUCTION PLANNING AND CONTROL IN A MANUFACTURING ORGANIZATION
ABSTRACT
The research work is to determine the impact of Production Planning and Control in a manufacturing process. The Nigeria Bottling Company Aba plant has been chosen a questionnaire and personal interview were used to collection of data. Research question were made and two hypotheses were formulated to determine whether poor scheduling has any effect on the productivity of a manufacturing firm and also to know if there are rules for job processing in a manufacturing firm. Chi-square was used to test the hypothesis at 0.05 level of significance. The major findings of the study were that firm reviews their production plan and budget on quarterly basis so as to take into consideration the major season of the year. The analysis of variance by the production department through production process helps the firm to discover areas of short comings in production process. It was concluded that profitability and efficiency will be improved based on a production department through production budget in order to ensure minimization of cost so as to meet customer satisfaction and profit maximization.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Production planning embraces the task of adjusting the product throughout it life to match the ever-changing demands of the market place. Too many organization make the mistake of thinking that consumer fed and act as they do and share their want. The job of managing a product then is one of constantly monitoring the market and adjusting the product to meet the market need and want. The better the product matches the need of the market, the more successful it is likely to be. Today as product and service becomes more and more commoditized many organization are moving to new level in creating value for their customers. To differentiate their offers they are developing and delivering total customer, experience where as product are tangible and services are intangible experience are memorable whereas product and services are external, experience are personal and taken place in the minds of individual consumer organization that market experience realize that customer are really buying much more than just product and services.
For a product to be successful, gain acceptance in the market environment, a well organized product planning is the process of tilling the proposed product to the requirement and opportunities the process an anticipating the need of the market place initiating action toward the identification and production of product and services which will best satisfy the need and want of the trapped market environment. Production planning is internal factor in an organization. A product once it is commercialized face the problem of management. The firm is not alone in the industry and competition will want to enter the market if the industry and competitor will want to enter the market, if the product process successful therefore, follow that the firm must manage its product right from the introduction stage till the mature or even declining state (Buzzell 1996).
Production planning is however characterized by dangers and uncertainties, the danger may be in wishing financial and human resources with achieve success protection and market acceptance, the uncertainties arise as to whether the product will service, face much competition or die on the introduction, Anyanwu (1993). Managing the product variable embraces planning and or service to be marketed by the company. The product mix element constitute the most important it is thus produced that every producer tries to conceptualize in the form most desired by the consumer in order to satisfy his need for proper management of product, the organization (Dick Berry 1981). This is because the factors will determine the success of the product in the marketing environment. In production planning process the product like cycle provides useful information on how to apply the principle of marketing and management in organizing and in carrying out that activities that will successful market the product. If a firm fact to manage it product, it plan to part in launching it product.
There are reasons why market parts in the market environment.
1. Lack of distinctive advantage in product performance and price.
2. Over estimation of the target market which may result in low demand.
3. Inability to utilize company strength to capture profitable opportunities.
4. Unpredictable change in consumers preference for goods and services.
5. Product which facilitate competitive entry into the market by competitors.
6. lack of support from the marketing intermediaries.
In order to avoid the above mentioned area the firm must consider and evaluate the product satisfaction and acceptance in such ways that will favour the consumer and the organization in general (Anyanwu, 1993) in managing a product especially in marketing product service, the functions varies from organizations objective to the other. But the basic function in managing a product are the same with the principle function of management as it is stated in the management field. But the different is that production planning are guided toward developing are organizing a successful product that will gain acceptance in the marketing environment the following are the basic function of product management.
PLANNING FOR THE PRODUCT Planning is the first production planning function on which the other take bearing, it refers to as forecasting the product future circumstance and requirement dealing product objective and determine product to be followed and set product standard planning in production planning plays and important impact because it determine the success of the product in the market environment.
ORGANIZING THE PRODUCTHow to accomplish the goal is the next thus organizing the product is the process of providing and evaluating the product attribute and successful accomplish the stated product objective. Control the product and the environment controlling the product is the process of ensuring that the product objectives are reaches and deviation from planning for the product are corrected controlling could be effective- when report are gotten from the marketer and sale representative regarding area of deviant fro correction purpose. However the organization must understand and monitor the actors and forces that effect the environment before organizing and co-ordination the production planning process. This is because the environment is a very dynamic one and it need a well organized structure before any marketing activities can gain acceptance to the environment.
1.2 STATEMENT OF THE PROBLEM
7up bottling company has been making relentless effort toward the management of product in Aba Abia State yet many of the product managed have all been able to satisfy the need for their target customers. As a result of this these product do not receive adequate patronage and resources wasted. This affect product profit negatively moreover, there are many hard nuts to crack in the management of product which makes it difficult for management to introduce new product even when old ones lack patronage product and hence slowness in generating income.
Again, some of the target customers are not aware of the existence of some the product which makes such product lack patronage and even when patronized only a few people patronize them. Hence product effort in their management become futile furthermore customers of the product are not adequately educated on the product managed and some product staff are not properly equipped on the marketing of financial service which makes it possible for profitable opportunities to be grasped in the product such lack of education renders product effort fruitless and resources used in managing such product wasted.
1.3 OBJECTIVES OF THE STUDY
The rationale defined this study is to examine different product of the 7up bottling company are discovered for they are managed, other objectives are as follows:
1. To find out the difficulties encountered in the process of production in 7up bottling company.
2. To discover whether product customers are really satisfied with management product or not and why?
3. To find out how best customers of the product can be educated on the use of the product planning and how best to get them known about the existence of such product.
4. To determine the effect of production planning on profitable.
5. To offer possible solutions/suggestions for addressing such problem and/or make recommendation that may lead to better product customer relationship increase so as to increase customer satisfaction.
1.4 FORMULATION OF HYPOTHESIS
In the process of consulting this research the following hypothesis have been stated:
HYPOTHESIS 1
Ho: 7up bottling company product do not satisfy customer basic interest.
HI: 7up bottling company product satisfy customers basic interest.
HYPOTHESIS II
Ho: The major problem encountered in production planning is not wrong segmentation of target market.
HI: The major problem encountered in production planning is wrong segmentation of target market.
HYPOTHESIS III
Ho: Effective management of product result to increase in profitability of product.
HI: Effective management of product do not lead to increase
1.5 SIGNIFICANCE OF STUDY
This study will in great way of significance to the product manager customers, individuals wishing to engage themselves in production business, unemployed graduate, government and corporate organization in Aba. To the government the result of the study will not only enable them find out a well defined administrative strategies and management problem of the product firm of various state, but also would act as a panel to solving similar problem of government. To the customer, it will expose them to the various marketing strategies that will lead to optimum production business and high light problem facing the products so to prefer a better solution, it will also expose the advantages they stand to benefit from the product service patronization.
To the corporate organization and other people or individuals wishing to engage themselves into producing business, the study will satisfy as much as possible suitable management procedure that will help them operate at the long run, since this is the motive every business has. To the student the study will enlighten their mind on the great importance of product to an effective and efficient marketing strategy through the role product service play in the financial sector. Finally, to the researcher the study will enhance an in-depth knowledge of product planning, marketing strategy the management and operation while to the customers to appreciate the marketing means through which they reach them and perhaps bear with them whether they live stock of expectation to problem beyond their control.
1.6 SCOPE OF THE STUDY
This research work encourages and encompasses production planning in all 7up bottling Company in Aba as data was taken from four branches of the product in Aba in Abia State as the case study. The effort they make towards managing such product and problem they consider in doing this, this study will also cover only all the production management, it also cover all the employees in the 7up production department.
1.7 DEFINITION OF TERMS
1. Production management: The task of adjusting the product throughout its life to match the ever- changing demand of the market place.
2. Marketing: The sensing and servicing of consumer need through an exchange relationship aimed at creating value in form of profit and satisfaction to the consumer.
3. Marketing segmentation: The process of diving the total heterogeneous market for a product into several submarket or segment each of which lend to be homogenous in all significant aspect.
