PRODUCTION PLANNING IN A MANUFACTURING ORGANIZATION (A CASE STUDY OF OKIN BISCUIT LIMITED OFFA, KWARA STATE)
ABSTRACT
This project work focuses on production planning in a manufacturing organization. It will explore the manner in which production are planned in an organization towards achieving effective production. What is production planning? Production planning is the function concerned with the process of converting raw materials into finished product, and the way in which the production facilities such as building, equipment etc should be laid out in the space available for production. The work is divided into five (5) chapters. Chapter one will start with the introduction of the study, the purpose of the study, statement, significance, objective, scope and limitation of the study, the definition of terms. Chapter two entails the literature review of production planning and brief History of Okin Biscuit Limited, Offa Chapter three comprises of research methodology, the data necessary for the project was collected through personal interview and questionnaire. Chapter four comprises of presentation of data, analysis of data and hypothesis testing and chapter five which is the last chapter comprises of the summary, recommendation and conclusion.
TABLE OF CONTENT
TITLE PAGE i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT vii
TABLE OF CONTENT viii
CHAPTER ONE
1.1 Introduction 1
1.2 Statement of the Problem 2
1.3 Purpose of the Study 3
1.4 Scope and Limitation of the Study 5
1.5 Definition of key Terms 8
CHAPTER TWO
2.1 Brief History Of Okin Biscuit Limited Offa,
Kwara State11
2.2 Literature Review 14
CHAPTER THREE
3.0 Research Methodology 47
3.1 Research Design 47
3.2 Research Question 48
3.3 Data Gathering Procedure 48
3.4 Procedure For Data Analysis 49
3.5 Research Population and Sample 49
3.6 Formulation of Hypothesis 52
CHAPTER FOUR
4.1 Presentation and Analysis of Data 54
CHAPTER FIVE
5.0 Summary 67
5.1 Conclusion 68
5.2 Recommendations 69
REFERENCES72
APPENDIX 73
QUESTIONNAIRE74
CHAPTER ONE
1.1 INTRODUCTION
Production planning is a management tool design to facilitate the achievement of organization objectives .production. planning is also the function concern with planning, direction and controlling the methods to be used to produce product and the way in which production facilities such as building, equipment e.t.c. should be laid out in the space available for production to be effectives in the area of production. Planning in modern contexts, one must be familiar with computational and quantitative techniques and their roles in the solution to production planning problems
A general statement of the objectives of production planning is making the best uses of the available resources while satisfying demand.
Considering the topic study under production planning has a great effect on the output of any production process i.e in achieving optimum productivity level.
Is this study, we focus on Okin Biscuit Limited, Offa Kwara State, we look into how production is being planned and its effect on the company’s objectives, these and other related matters will be fully considered in the course of study.
1.4 STATEMENT OF THE PROBLEM
Planning is regarded as the lifeline of any organization, it is to an organization with blood is to human being. Hence production planning in an organization is equally vital and is of a great significant of managing financial and other resources of each organization knowing fully well that the management ability to effectively manage and utilize the resources at its disposal will go along to determine the success of such an organization.
At this point, it become imperative to closely study the effectiveness and efficiency of production planning and the implication it will bring upon the organization. Most especially as it relates to the attainment of the set goals and objectives for which such organization exist.
The main purpose of this study is to examine how production planning is implemented in Okin Biscuit Limited, Offa Kwara State which is the case study.
Specially, the following points will be considered in the study:
1. What is production
2. What is meant by productivity agreement
3. What are the aims and method of production
4. The factors affecting production
5. The effect planning has on production in Okin Biscuit Limited Offa, Kwara State.
1.5 PURPOSE OR SIGNIFICANT OF THE STUDY
The study is purposely designed to investigate into production planning in a manufacturing organization. This study focused on Okin Biscuit Limited Offa Kwara State. A profit oriented organization that needs planning in order to achieve effective production and its desired production level.
All over the world, business organizations operate in a dynamic environment, many of these are caused by technological advancement, government, economic and social policies. As a result of this the purpose of this study is to:
a) Establish the need and importance of production planning.
b) Examine production planning process in Okin Biscuit Limited Offa, with a view to determining the future sales level of its production and make recommendation base on this discovery.
Talking about the significance of this study as said earlier in the introduction, production planning is of great importance as it results into effective output and maximum utilization of all the available resources.
The significance of production planning in a manufacturing organization is that it is enables the various production manager to know the particular problem that affect their operation as a result of the research being carryout thereby enabling them to implement plan in the necessary area.
The study will also be of great help to other student , in similar project on production planning.
1.4 SCOPE AND LIMITATIONS OF THE STUDY
The scope of this project covers production planning in Okin Biscuit Limited Offa, Kwara State. It focuses on planning production in Okin Biscuit so as to achieve their sole aim which is optimum productivity. Production planning in Okin Biscuit Limited is a top management activity. The production department coordinate all these activities that are connected with buildings, machines, equipment etc should be laid out in the space available production.
The limitation of the study was a result of lack of time, lack of finance and movement restricted to only some area which makes it a bit difficult to cover most of the places.
Inspite of these, enough literature review was carried out in order to help achieve other fact.
1.5 DEFINITION OF KEY TERMS
Ø Production: Production is the process of converting raw materials into finished goods or product. Production consists of using resources in order to obtain goods and services. Resources are combined in such away that utilities are created.
Ø Production Planning: production planning is the function of management concerned with planning, directing and controlling the methods to be used to make product and the way in which the production facilities, buildings, machines, equipment etc should be laid out in the space available production.
Ø Production Control: this is the management function which plans, directs and controls the materials supplying and processing activities of an enterprise so that specific product are produced by specified method to meet an approved sales programme
Ø Productivity: in its broadest sense is generally viewed as a more intensive use of conversion resources such as labour and machine and if measure on a factual basis, it should indicates reliable performance and efficiency. Productivity can also be defined as the measurement of success or achievement of individual firm in relating to increase output, according to international encyclopedia of social science (vol.9) productivity is defined as the empirical output, input ration that is widely used in economic, history, economic analysis and economic policies. Productivity and production may be regarded as synonymous. An improvement in production may be obtained, supply by increasing the resources of production such as:
- Increase the labour force
- Working additional labour
- Providing more capital and equipment
But by increasing such resources, productivity may well be sacrificed while figure of production tell how much is produced, productivity tell how well the resources have been used in production.
Ø Productivity Agreement: this is a situation whereby workers agreed to make a change or more changes. Productivity agreement has a wide range and has a great effects. they may deal with all the factors of management as well as technical factor and those factors dealing with overall efficiency of the organization.
Ø Productivity Aims: the aim is to agree on a way of using all the resources available for more effective production. Specifically, it is aimed at achieving a stipulated result through a clearly defined set of plans.
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