Investigating Production Planning In A Manufacturing Company

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:

1. Establish the need and importance of production planning.
2. 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:

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.

1.6 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.

H_i:   Production planning ensure that there is a coordinated flow of work lading to complete manufacture of required goods.

Ho_ii: Production planning ensure that there is a coordinated flow of work lading to complete manufacture of required goods.