IMPORTANCE OF PRODUCTION PLANNING AND INVENTORY CONTROL IN AN ORGANIZATION

 

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ABSTRACT

Verily the idea of production generally dates back to the ancient days/times when human being concerned most production systems, beginning with the family and craft system which involves into the factory system culminating in mass production lines and the automation concept. This productivity system are unique inventions of mankind. They are mean of which we create an endless list of goods and services needed for sustained modern society. Consequently, production planning and inventory control in an organization is basically aimed at establishing the significance of the subject matter organizations performance relating to the production process production control and planning inventory control. This is consistently relevant activity in production. Marketing and finance department in the organization toward achieving its objectives.

 

 

 

CHAPTER ONE: INTRODUCTION

1.1     Background of the Essay      –         –         –         –         –         1

1.2     Statement of the Problem    –         –         –         –         –         3

1.3     Limitations of the Essay       –         –         –         –         –         4

1.4     Definition of Terms     –         –         –         –         –         –         5

1.5     Scope of the Essay       –         –         –         –         –         –         11

CHAPTER TWO: LITERATURE REVIEW

2.1     Concept of Production –         –         –         –         –         –         12

2.2     Production Planning    –         –         –         –         –         –         24

2.3     Inventory Control        –         –         –         –         –         –         29

2.4     Significance of Production Planning and Control     –         33

 

CHAPTER THREE: SUMMARY, CONCLUSION AND RECOMMENDATION

3.1     Summary   –         –         –         –         –         –         –         –         35

3.2     Conclusion –         –         –         –         –         –         –         –         36

3.3     Recommendation         –         –         –         –         –         –         37

Bibliography       –         –         –         –         –         –         –         –         40

 

 

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Essay

This essay is aimed at establishing the importance of production planning and inventory control in an organization with particular emphasis in the consideration on what the subject matter production planning, inventory control is all about to be emphasis in the introduction of the essay.

Basically, production refers to the transformation of raw materials into output, while production planning on the other hands is the determination of the production operation in a manufacturing unit.

Inventory technique is an internal control system that serves to ensure the maintenance of adequate inventory level in an organization. Moreover, inventory control represents the major capital investment in an organization.

The inventories in an organization function or stock record keepings stocks therefore can be seen as finished goods reader for sales. The importance of production planning and inventory control in an organization is to feed the organization with information about the stock of the organization in other to safeguard the organization from the risk of obsolesce of excess purchases of raw materials, it also ensure that the needed raw materials for production operation is constantly viewed or verified to meet the production. It also serves as a basis of which the purchasing as the stock inventory control will provide information about stock that are excess and those are by specification i.e. those are where the organization will likely be running of stocks.

Inventory Control in an organization is an important aspect in the daily life of an organization. This is because inventory control enhances organizational progress. The existing problem in this stock inventory control which instigate this standing to my point of view indirections. That is, it may be too large or too small so if it is large relative to it, the cost of carrying the inventory control will be equally higher than it needs be, while if it is too small, the cost of controlling the inventory will be small. Consequently, the inventory carrying cost include cost include such things as interest on the inventory management, handing cost depreciation and obsolesce.

1.2     Statement of the Problem

The basic significant statement of the essay is aimed at bringing a clear picture and transparent understanding of the essay “Production Planning and Inventory Control in an Organization”, it also embraces the problem facing the production sector, types of production and production planning methods of controlling inventories in an organization.

Furthermore, this essay entails all the necessary inventory techniques available in the management of…

 

 

 

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Inventory management on productivity in an organization

 

 

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ABSTRACT

This research is on impact of inventory management on productivity in an organization with zarewa aluminum and plastic limited as a case study. Its primary aims is to determine the level of inventory of goods and documented with the organization. It also the aim of the research is to find out the methods of control of goods with a view to eliminate the element of waste and thereby minimize the amount of material purchased from tying down capital stock out. The researcher divided the protect into five chapters. Chapter one forms the general introduction, brief history of zarewa aluminum and plastic limited, statement of general problems, hypothesis, limitations and significance of the study. Chapter two deals with review of related literature. While chapter three deals with the research methodology. Chapter four was used to analyzed and present the data collected in a tabular form. While chapter five deals with the summary, conclusion and recommendations.

 

 

 

 

TABLE OF CONTENTS

Title page                                                                         i

Approval page                                                                 ii

Declaration                                                                      iii

Dedication                                                                        iv

Acknowledgement                                                          v

Abstract                                                                            vi

Table of contents                                                           vii

CHAPTER ONE: INTRODUCTION

• Background for the study 1
• Statement of general problem 5
• Aims and objectives 6
• Statement of hypothesis 7
• Rationale of the study 7
• Scope and limitation of the study 8
• Historical background of zarewa aluminum

and plastic limited                                                  9

• Definition of terms 13

 

CHAPTER TWO: LITERATURE REVIEW

2.1     Introduction                                                            16

2.2     Receipt of goods                                                   22

2.3     Stock or (Stores) issues                                       24

2.4     Authorization of issue                                           28

2.5     Stock records                                                        29

2.6     Store-house locations system                             32

2.7     Inspection of incoming goods                              35

2.8     Stock-taking                                                           36

2.9     Perpetual inventory                                               39

2.10   Stock valuation                                                      41

CHAPTER THREE:

3.1     Research methodology                                        46

3.2     Research methods or approaches used            46

3.3     Justification for approaches used                       47

3.4     Instruments or tool used                                       48

3.5     Research population and sample size               49

3.6     Sampling procedures                                           50

3.7     Justification for sampling procedures used

and sample size                                                    50

3.8     Statistical techniques used in

analyzing the data                                                 50

CHAPTER FOUR

4.1     Data presentation and analysis                           52

4.2     Testing of hypothesis                                           67

4.3     Testing of hypothesis using chi-square              68

CHAPTER FIVE

5.1     Summary, Conclusion and Recommendation   72

5.2     Summary of findings                                             72

5.3     Conclusions                                                           74

5.4     Recommendations                                                75

Bibliography

 

CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

Inventory in the form of raw materials, work in progress and finished goods constitute significant proportion of assets of most organization. But why is it pertinent to keep any eye on these items in other words, why do we engage in inventory management?

Inventory items cost money to acquire, they cost money to store and to look after, which means storage facilities has to be provided so as to make sure that these materials or items do not get spoilt until they are turned into sellable goods, they do not produce money. When stock are held, it means tying down capital that would have been used in other areas, so it all represent cost and should be managed properly to acquire efficiency.

 

We must however, hold stock to meet production needs and sales needs. This is because if we do not hold stocks in sufficient quantities, we stand the risk of running out of stock.

Similarly, if we are short of finished goods, we may disappoint our customers. Inventory shortages in both of these forms will likely lead to loss of customers and money. For the organization not have the above problems, they should strike a balance between carrying too much stock (over stocking) and carrying too little stock (under stocking).

This is essentially the importance of inventory management. Managing assets of all kinds is basically an inventory problem, the same methods of analysis applies to cash and fixed assets as to inventory themselves.

 

First of all, a basic stock must be on hand to balance in flows and outflows of items. The size of the stocks depends on the pattern of flows whether fast moving or regular items, slow moving or irregular items.

Secondly, because the unexpected may occur, it is necessary to have safety stock on hand representing, extra stock to avoid the cost of not having enough to meet current needs.

Thirdly, additional amount may be required to meet future growth needs these are called anticipation stocks, related to anticipation stocks, is the recognition that, these are optimum purchases sizes defined as economic order quantity (EOQ).

 

In borrowing money, for buying raw material for production or purchasing plants and equipment, it is cheaper or more economical to buy more than just enough to meet immediate needs.

Manufacturing firms generally have three kinds of inventories:

1. Raw material
2. Work in-progress
3. Finished goods

 

• The level of raw materials; inventory is influenced by anticipated production, seasonality of production, reliability of sources of supply and efficiency of scheduling purchases as well as production operations.

 

• Work in-progress inventory is greatly influenced by the length of the production period, which is the time between planning raw material in production and completing the finished products. Inventory turn over can be increased by increasing the production. One means of accomplishing this is to perfect engineering techniques there by spreading up to manufacturing process. Another means is to buy rather than make them. The level of finished goods inventory is a matter of coordinating production and sales.

 

Holding stock in whatever form cost money. The capital tied down by the stock itself has to be serviced by the payment of interest and the land or warehouse needed for the stock has to be bought or rented. The handling of the securing of the stock and any quality deterioration that occurs also cost money. The sample type of stock control system used in most organizations is two, the bin system of stock control and is of two quantities.

The first quantity is the stock level below which is new order is to be placed. Under this system, the units of stock are held in two: one and two stock is taken from bin as required until this                       bin is empty.

 

More are then order by the quality being determined by the rate of usage or consumption rate; comprehensive inventory, planning and control system have been successfully installed or established in many organizations. The major objectives of inventory management is to discover and to optimum level of investment in the inventory. Inventories may be too high or too low, if too high there are unnecessary carrying cost and risk of obsolescence. If too low, production may be disrupted or sales permanently lost and loss of good will, reputation, and customers to other firms in the same industry.

The optimum inventory level is that which minimize the total cost associated with inventory.

 

• STATEMENT OF GENERAL PROBLEM

The life blood of any organization both private and public sector is material and this has been neglected long ago by various business concerned. The survival of any business set up depends upon sufficient application of material functions, policies involved and recognition according to the function.

Up till now inventory management has not been able to occupy it rightful position due to one reason or the other. There has been infringement on the right of inventory management personnel. They are often restricted to mere clerical work in many organizations.

 

The lack of recognition for inventory management function in many organizations has caused so many havoc.

For instance where the function is forced to be recognized and established because of the demand to manage the affairs of various…

 

 

 

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LEADERSHIP AND ITS EFFECT ON PERFORMANCE , ACHIEVEMENT AND GOAL REALIZATION

 

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CHAPTER ONE

1.1     INTRODUCTION

Out of the twenty three (23) local government councils in Kaduna State none has met the expectations and aspirations of the electorate who voted them into office. Some people blamed the disappointment on the council leaders. Studies in leadership is as controversial as the concept itself. At the local government level there are numerous leaders. The Local government chairman is a leader, just as the Director of Human Resources. The Treasurer is a leader just as the Director of works. Nobody will declare the Head Driver, the Head of security, the Head Messenger etc as non-leaders. They are all leaders in their own rights.

Even if this research is concerned mainly with political leaders it may seek to find out if leaders are born or made. In other worlds, is good leadership a product of appropriate training or talent from God? For instance, is Muritala Mohammed good leadership a product of his training? Is Obafemi Awolowo’s credible leadership as premier of the defunct Western Region a reflection of his training? President Nelson Mandela spend 22 years in prison. After was this the outcome of his training while in detention?

This research will try to establish the role of fund, personnel, cooperation, fellowship and of course, leadership in the delivery of dividends of democracy at the gross roots level.

1.2     BACKGROUND OF THE STUDY

This study on the relationship between LEADERSHIP AND ITS EFFECTS ON PERFORMANCE, ACHIEVEMENT AND GOAL REALIZATION is carried on at the Kaduna South Local government as a case study. There are many theories and principles on leadership styles and their application in organized private set like banking, manufacturing, industry etc. Can these also apply and work out the same way in a politically influenced and controlled like the local government particularly in a federation such as Nigeria?

In carrying out any collective task leadership is a major element which bring about either success or failure leadership plays central role in offering direction and purpose towards achieving set goals of an organization including Kaduna South Local ;government. It is also an important element in the social relationship of groups of work. Leadership is the main factor that determines and sharpens group behaviour especially when it is correctly applied. In his approach, each employee enjoys a feeling of strong commitment and dedication towards achieving organizational goals. Regardless of inequality of members of staff appropriate leadership style can serve as a maginet drawing every body to the centre there by providing a formidable workforce. As the saying goods unity is strength.

However, Kaduna South Local government goals can never be achieved without proper leadership style in place. It is important not that the effective performance of an individual employee is a function of both his personal characteristics and the individual environment. A careful consideration of knowledge, skills, experience, attitude and motivation of an employee enhance maximum productivity and efficiency in the job. Since leadership deals with the human resource element, it provides the basis for effective utilization of material resources in an organization through individual skills, know ledge and ability.

According to Merenu (1988) Leadership is the most influential person in an organization who provides direction, guides, group activities and ensure that group objectives are obtained. Leadership is the life wire of an organization. Douglas Mc Gregor theory X and theory Y is of the view that leaders, attitude towards subordinates has a large influence on how such workers behave both on the job and towards their leader. It is how ever important to note that no single leadership style is likely to be effective in all circumstances. Leadership styles vary based on social political environment and other circumstances.

Finally, an effective leader is measured by his ability to manage and withstand forces around him and how to effectively utilize human and material resources to ATTAIN ORGANIZATIONAL OBJECTIVE. DOUGAS MCGREGOR, put it clear that there is a close relationship between leaders’ expectation and the resulting performances of the subordinates.

A pertinent question which this research seeks to answer is “can leadership style enhance or hinder the delivery of dividends of democracy at the local government level.”

1.3     STATEMENT OF THE PROBLEM

The problem identified by the researcher is the perceived poor service delivery by the various Local Government councils in Nigeria.

Many Nigerians are dissatisfied with performances of Local Governments in the country. It could be assessed that more than 80% of the 774 Local government councils in Nigeria have nothing to show for their existence in terms of executing public policies within their areas of jurisdiction, especially from 1999 to 2011. This research is therefore set out to investigate factors which are responsible for poor or low productivity in Kaduna south local government area.

ORGANIZATION STRUCTURE AS A TOOL FOR EFFECTIVE MANAGEMENT ORGANIZATION STRUCTURE AS A TOOL FOR EFFECTIVE MANAGEMENT

 (A CASE STUDY OF INSTITUTE MANAGEMENT AND TECHNOLOGY) 

 

 

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13. Unity Bank:
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14. Zenith Bank:
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CHAPTER ONE

1.1    INTRODUCTION

1.2       Historical Background

1.3       Statement of Problem

1.4       Objective of The Study

1.5       Research Hypothesis

1.6       Scope of Limitation of Study

Reference

 

CHAPTER TWO

LITERATURE REVIEW

2.1       Definitions and Explanation

2.2       I.M.T Performance and Growth

2.3     Need of Organization and Types of Organization Structure

2.4       Process of Designing and Organization Structure

2.5       Common Mistakes in Organization Structure

2.6       Making Organization Structure Effective

2.7       Essence of Organization Chart

Reference

2.8       Essence of Organization Chart

Reference

 

CHAPER THREE

RESEARCH METHODOLOGY

3.1       Research Design

3.2       The Population

3.3    Sample Size

3.4    Source of Data

3.5    Method of Data Collection

3.6    Method Data Analysis

 

 

CHAPTER FOUR

Data Presentation and Analysis

4.1       Presentation and Analysis of Data

4.2       Analysis of Data

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMEND

5.1    Recommendation

5.2    Conclusion

5.3    Bibliography

Appendix I

Appendix ii

CHAPTER ONE

 

1.1       INTRODUCTION

Every organization is made up of human and physical resources. The resources are bought together in order to accomplish these objectives, tasks must be identified, the tools and technology required must be provided and a structure of relationships must be created. It is the sole function of management to determine the best structure that will optimizes the utilization of the resources.

Thus organization is a means of achieving the best result from concerted effort, organizations deals with people and their relationship within an enterprise.

It is the type of organization that determine the type of people require and their relationships.

Osisoma defined organization as a social and technological device made up of people and physical factors which process certain inputs, and execute functions and tasks that lead to the accomplishment of specified objective”. Organization is also two or more people working together in a co-ordinate manner to achieve group objective or result.

Akpala said that “organizing is a management function of dividing out the constitutions activities into elemental units for facilitating operations, of grouping the units into wider sub-systems called departments branches or division of placing people or decision makers on to the units created of establishing functional or responsibility and authority relationships between the various units and person holding offices”. Hodget said that “organizing entail the assignment of duties and the co-ordination of efforts among all organizational personnel to ensure.

Maximum efficiency in the attainment of predetermined objective.

Structure can be seen as a framework providing a pattern for organization structure has been defined by Hurley as “patterns of relationships among the various people occupying the positions” Yode said that “organizational structure is a structure that provides a systematic arrangement of functional assignments in which component parts have specialized duties, a;; presumably contributing to the over all objective organization structure has also been defined by Osisoma as “ the framework of the formal relationship within which management can adequately and effectively control, supervise, delegate and fix responsibilities and synchronize the work done by divisions, departments and individuals” Nwachukwu opined that organizational structure. Involves dividing activities into departments, divisions, units and sub-unit defining relationships between the heads and members that make up the units” while KWCHER and MASOW explained that an” organizational structure establishes the responsibility and authority relationships between people in enterprise. The purpose is to find the structure, which will be most efficient and effective. They went further to defined the key word as follows: responsibility refers to the set of duties one must perform, the requirement one is accountable for or answerable to in order to achieve a purpose. Authority is the right or power to give commands to others to perform duties and requirement” these views are in line with the of hinterland, who defined organization structure as the pattern or network relationships between the various positions and position holders.”

The arrangement within the framework of interaction in-the organizational is hierarchical in the organizational is hierarchical. The definition by professor Akpala which saw organizing as the management function of dividing out the institutions activities into elemental units for facilitating operations of grouping the units into wider sub-system called departments, branches or division or establishing function or responsibility and authority relationships between the various units and the persons holding offices, will be adopted that the purpose of the study.

From the following definitions, organizational structure may be for the purpose of this study be defined as the sanctioned network in interactions and relationship between positions, their functions and occupants and a means through which management attempts to achieve predetermined organizational goals. These includes who reports to who, levels and patterns of communication, the specific functions of members of the organization; the rules, regulation and procedures that govern individual activities.

This is because the definition tries to bring in all the important elements in the understanding of organizational structure. The important of development of an appropriate organizational cannot be over emphasized. It provides the over-all guider-line essential for effective employee performance. The organizational structure provides the guidelines for clarifying and communicating the line or responsibility, authority and accountability within the firm.

Organization structure shows clearly the authority relationship in an organization. It vividly defines the centers of authority. Organizational structure provides a framework within which delegation and assignment of responsibility can perfectly take place. It shows line of communication and also helps to provide an effective mechanism for monitoring performance and taking corrective actions.

 

1.2       STATEMENT OF THE PROBLEM 

Main Problem: This study set out to establish important functions and needs for a well-defined organizational structure so as to prevent overlapping of functions in organization.

Sub-Problem: The purpose of the study is to examine how a well-defined organization structure helps to achieve an organizational objective so as to bring about efficiency.

Sub-Problem II: The purpose of the study is to investigate how a well-defined organization structure is arranged in a firm or enterprise do as promote high productivity.

Sub-Problem III: The purpose of study is to discover how organization structure is designed so as to determine the other of responsibility.

Sub-Problem IV: The purpose of the study id to examine critically how functions can be clearly shown in an organization structure so as to prevent duplication of functions.

 

1.3    OBJECTIVE OF THE RESEARCH            

The objective of this research is to establish the essence of a sound organization structure as a means of achieving total management effectiveness in an organization be it business, government, religion, educational.

The study will also point out how a well-designed organization structure will be a motivating factor to workers in an organization. Such workers, having known the roles expected of them, their relationship with other workers, their level within the organization as well as the next level they can aspire to as shown in the organization chart, will strive along with others towards realizing the organization goal at the sometime.

To achieve this, I intend to examine leading theories in organization structure, its different models and principles. Furthermore, questionnaires would be administered on workers of the institute of management and technology (I.M.T) to know the working of departments organization structure, observe nay possible lapses and make useful suggestions for improvements.

 

1.4   RESEARCH HYPOTHESIS 

a)   A well defined organizational structure bring about efficiency

b.    A well design organizational structure leads to a clear order of responsibility.

c.    A well-defined organizational structure in a firm promotes high productivity.

d.    Clearly stated functions in an organization eliminates duplication of functions.

 

1.5 SCOPES AND LIMITATION OF THE STUDY  

AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY

 

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CHAPTER ONE: INTRODUCTION

1.1     Background of the Study –         –         –         –         –         –         –         1

1.2     Statement of the General Problem        –         –         –         –         –         3

1.3     Objectives of the Study    –         –         –         –         –         –         –         4

1.4     Statement of Research Hypothesis       –         –         –         –         –         5

1.5     Significance of the Study –         –         –         –         –         –         –         5

1.6     Scope of this Study          –         –         –         –         –         –         –         6

1.7     Limitations of the Study  –         –         –         –         –         –         –         6

1.8     Historical Background of the Study     –         –         –         –         –         8

1.9     Definition of Terms         –         –         –         –         –         –         –         9

CHAPTER TWO: LITERATURE REVIEW

2.1     Concept of Material Management        –         –         –         –         –         11

2.2     The Significance of Materials Management Concept          –         –         14

2.2     The Material Flow System         –         –         –         –         –         –         15

2.4     Scope of Material Management  –         –         –         –         –         –         19

2.5     Determination of Material Needs         –         –         –         –         –         21

2.6     Material Cost Reduction Strategies       –         –         –         –         –         23

2.7     An Appraisal of Material Management Concept as a Strategy for Achieving Higher Productivity  –         –         –         –         –         –         –          26

CHAPTER THREE: RESEARCH METHODOLOGY

3.1     Research Design    –         –         –         –         –         –         –         –         28

3.2     Research Population        –         –         –         –         –         –         –         28

3.3     Sample Size and Sampling Technique –         –         –         –         –         29

3.4     Method of Gathering Data         –         –         –         –         –         –         29

3.5     Justification of the Method Used         –         –         –         –         –         31

3.6     Method of Data Analysis –         –         –         –         –         –         –         31

3.7     Justification of the Instrument Used     –         –         –         –         –         32

Bibliography          –         –         –         –         –         –         –         –         33

 

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

The Need for Appraisal of Material Management Concepts as a strategy for achieving higher productivity and to make up with the growing complexity of industrial needs. Management performance appraisals is one of the most important opportunities in effective delivery of the company’s set objective if done correctly, performance appraisals can help close the gap between the actual performance of the company and the performance needed to make corporate objectives.

Appraisals Management can be compared to an annual check-up: both provide an opportunity for an honest assessment of how you are doing. You need to know what you are doing is right so you can continue with those activities.

Modern management has expanded the traditional scope of purchasing and procuring to cover the entire material management process. Thus Lee and Dubler (1983) define Material Management as a confederacy of traditional material activities bound by a common idea, and of intergraded management approach to planning. Acquisition, conversion, flow and distribution of production material from the raw material state to the finished product state.

The concept also provide for delegation of responsibility and authority with regards to procurement and supply of material. The concept also recognizes the importance of the principle of accountability by providing a management approach which is responsible for all decisions.

Through material management, there is relatively recent concept much through has been given to it particularly since World War II, when industries all over the world were awoken to the fact that tremendous economies could be achieved by sufficient material management. The concept is today relevant to business organization because they will have a centralize body responsibility for buying with the overall advantage of procuring standard material at possible bulk. Disco unit and obtaining special vender relation. It means that spending valuable money is in the heart of people who are trained and competent for this job.

Performance Appraisal in Material Management evaluates materials employee’s current and past performance to the productivity standard, management processes through which companies ensures that the materials are working towards organizational goals include, practice through which manager defines the materials sets targets and work, develops the productivity and evaluate the outcome of production.

Frequently, it is found that material are expensive and in order to reduce overall costs, it require the close cooperation and co-ordination of material and other user department to ensure that material ordered are made to arrive only when they are needed, the benefit of this approach is that of cost reduction and maximization of the company’s profit.

Thus, the growing need for efficient operation of material management is increased in recent time.

1.2     Statement of the General Problem

Attempts has been made towards operating on integrated approach to their material problem such as lead time organization is not certain so therefore time given to complete a given task of production delivery of goods always exceeds the expected given time.

The use of quantitative techniques in assigning jobs in some organization may cause wastages of materials as the individual involved may not have the skill and technical know-how to carry out the task effectively and efficiently.

Lack of training and retraining of members of staff on how to use the materials and keep the proper records of inventories can also bring losses and production of inferior or scraps that may not be useful to the stud