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.
1.2
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, 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, .
1.3
PURPOSE OR SIGNIFICANT OF THE STUDY
The study is purposely designed to investigate into
production planning in a manufacturing organization. This study focused on
.
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,
. 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.