THE IMPACT OF PRODUCTION PLANNING AND CONTROL ON OPERATIONAL COST OF MANUFACTURING INDUSTRY IN NIGERIA (A CASE STUDY OF SEVEN-UP BOTTLING COMPANY)

CHAPTER ONE

THE MEANING OF PRODUCTION 

Production is the central point of any manufacturing concern basically it is the stage where real action takes place either the transformation of raw materials (input) into finished products that is (output) concept of production has been subject to various definition Buffa (1980) define production as the process by which goods and services are created, similarly apple by RC (1996) defined it as the activity of transformation of raw materials or components into finished product.  Whatever the definition, it is clear that production essentially entails the production of goods and service.

The idea of production dates back to the ancient time when human beings conceive modes of productive system.  Beginning with the family hand craft system.  Cummulating to mass production line and automation concept.  Thus production are the unique invention of mankind.  They are the means by which we create goods and services needed from sustain modern society.  The determinants of the production process can never be over emphasized.  If the development of production unit were are accompanied by successive change from job production to batch and finally to follow which stress that manufacturing capacity is only one of the factors which determines the type of production employed Mayer R.R. (1984).   There is a logic behind the operation of the production process, it stems from type of technology involved in the complexity and size of the products as well as in type of production in the particular manufacturing process.

PRODUCTION PLANNING 

This is a managerial function that tends to design and plan what to produce, when to produce, where to produce and how to produce the quality, the quantity to produce and for whom to produce. These functions attempts to define the key decision model involved in production that is the long term and the short term planning as well as identifying the procedure, politics and their control a cost effective way wild R (1980).  This function requires action.

STEPS OF PRODUCTION PLANNING 

1.     Designing or developing a product that is translating conceived production requirement into form that is capable of being produced or used.  This involve in process of studying consumer need, choice of specific product features, evaluation of alternative design and the final design which establishes a fit between the customer products requirements and technological requirements.

In doing this, action should be taken at certain occasion because customers need which form the basis of product design is subject to change hence the need to change product design.  The change may be induced by change in technology.  Generally when designing a product, room must be allowed for modification of units for the products to meet the general market and customer requirement.  This require close co-operation between the production and marketing department for effective product design or development.

PRODUCTION DESIGN

 Having designed or determine a product, the next step in production planning and control is the production design.  This involve considering and evaluating the various alternative design and selecting those designs which generates the least cost. 

Now that the product is designed, the next thing is to determine the basic operation required in the production of the designed product.

DESIGNING PRODUCTION PROCESS 

This is a stage in the design process which determines the activities required to produce the desired product. The sequence of operation as well as the equipments tools skill required to carryout the operation effectively.  This is done by taking into action demand forecast and the type of production system, which determines the operation sheets and equipment to be used, to determine the routes sheets in other to know the sequence that will be carried out.

In the process of designing production planning and control, decisions have to be made about whether to produce a product that will serve the need to different customers standard product or whether to eliminate certain tasks or merge several jobs into a single operation (production simplification).  All these are attempts to reduce production cost.  The company must face the problem of making a choice-between alternative process.  Based on the above, it may decide whether to buy all the parts externally or source for it though other means the process to embark upon.  The control and effective co-ordination of the above mentioned stage tends to reduce the cost of production and increase productivity.  The last stage in the planning function, this is the total arrangement of machine work place and storage in the capacities required.  (Plant layout) this refers to the decision on the solution of the type of material handling system and auxiliary service for production such as tool and maintenance shop and for personnel such as medical facility and cafeteria.  The main objective of this function is to develop a production system that meets the requirement of capacity and quality on a most flexible and economical way.  On deciding plant layout, a lot of considerations could be made on the capacity requirement of the proposed plants as this is a primary output to determination of plant machine space requirement.