PRODUCTION PLANNING IN A MANUFACTURING ORGANIZATION
(A CASE STUDY OF OKIN BISCUIT LIMITED OFFA, KWARA STATE)
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TABLE OF CONTENT
TITLE PAGE i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENT vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Aims and Objective of the Study 2
1.3 Significant of the Study 3
1.4 Statement of the Problem 3
1.5 Statement of Hypothesis 5
1.6 Scope and Limitation of the Study 5
1.7 Definition of key Terms 6
1.8 Organization of the Study 9
CHAPTER TWO
2.1 Brief History of Okin Biscuit Limited Offa, Kwara State 12
2.2 Literature Review 15
CHAPTER THREE
3.0 Research Methodology 43
3.1 Research Design 43
3.2 Research Question 44
3.3 Data Gathering Procedure 44
3.4 Procedure For Data Analysis 45
3.5 Research Population and Sample 45
CHAPTER FOUR
4.1 Presentation and Analysis of Data 49
CHAPTER FIVE
5.0 Summary of Findings 61
5.1 Conclusion 62
5.2 Recommendations 63
REFERENCES 65
QUESTIONNAIRE 66
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
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 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.
1.2 AIMS AND OBJECTIVE 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:
- Establish the need and importance of production planning.
- 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.
1.3 SIGNIFICANT OF THE STUDY
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 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 to 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:
- What is production
- What is meant by productivity agreement
- What are the aims and method of production
- The factors affecting production
- The effect planning has on production in Okin Biscuit Limited Offa, Kwara State.
1.6 STATEMENT OF HYPOTHESIS
Two kind of hypothesis will be analysed which are alternative hypothesis (Hi) and Null Hypothesis (Ho).
The alternative hypothesis (Ha) give positive assumption while null hypothesis (Ho) give negative assumption.
Hi: Production Planning prevent bottlenecks in production and avoid delays.
Ho: Production Planning does not prevent bottlenecks in production and does not avoid delays.
Hi: Production planning ensure that there is a coordinated flow of work lading to complete manufacture of required goods.
Hoii: Production planning ensure that there is a coordinated flow of work lading to complete manufacture of required goods.
1.6 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.
1.7 DEFINITION OF KEY TERMS
- 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.
- 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.
- 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
- 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.
- 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.
- 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.
1.8 ORGANIZATION OF THE STUDY
Okin Biscuit Limited was established in May 1978 by a business man Chief E. O. Adesoye, an indigene of Offa, Chief E. O. Adesoye was one of those who responded to the call made by Military Governor Of Kwara State Col. Agbazika J. Imnih (Rtd) in 1977 for the industrialization of the state. Some private individuals like Chief Emmanuel Adesoye (Maje of Offa) generated some funds and heeded to the call, the chief contacted some India technician in Kaduna who gave him the necessary information regarding biscuit industry.
Although Okin Biscuit Limited was incorporated in response to a clarion call. It was not an easy task for chief E.O Adesoye to realize these dreams as he encountered many problems. For instance in acquiring land on which the factory is now located did not come easily.
Though the company was incorporated in May, 1978, production and sales did not commence till second June 1980.
The company started production on three varieties of biscuit namely cabin, gem and coaster in 1980 , other varieties like shortcake, olomo kulumba e.t.c were later introduced . The demand for Okin Biscuit out weighted the supply. Subsequently the machine the 2nd line production was installed in 1982 to double the capacity of biscuit production per year . Due to restriction and non availability of import license, production target was affected between 1982-1987, Okin Biscuit Limited survived the adverse situation of foreign exchange by 25% to 30% reduction in capacity utilization.
In 1987 when the federal government banned the importation of the wheat flour which is the major raw material for Okin Production. Okin Biscuit Limited which believe in Federal Government policy of self reliance wasted no time on alternative sourcing of raw materials, local substitute was tried and was partly successful.
In the light of this development, Okin Biscuit Limited decided to go for experimental farming of wheat farming on hire or lease.
The lifting of ban on importation of wheat, the production of biscuit has now improved tremendously as well as the capacity utilization.
CONTRIBUTION TO GOVERNMENT
The company has paid about fifteen million naira by way of exercise duty to the State Government on its product and companies income tax from 1980 to date. The chairman has also donated substantial amount to the kwara industrial development e. t. c
ECONOMIC CONTRIBUTION
The company has provided direct and indirect employment’s for thousand of people attached to the distribution trade and related business. The company is greatly committed to sport, development as a social contribution since 1983 for example, the company has been sponsoring Badminton championship in the state. The company also encourage sporting activities in the local government area. He was the first to conduct a table tennis tournament for primary and secondary school in their local government area.
EMPLOYMENT AND TRAINING
The company has employed between 450 and 500 employees during the last 10 years and about 90% of them are skilled workers.
Training courses were conducted in conjunction with industrial training found (ITF) to develop the skill and talent of employee.
GENERAL FINANCE
Okin Biscuit limited is an indigenous company wholly owned by Nigeria a private liability company with an initial authorized and issued shared capital of #4,000,000 no where. Capitalized to authorized and issued capital of #30,000,000
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