PRODUCTION TECHNIQUES AND ORGANIZATIONAL PRODUCTIVITY A SURVEY OF LARGE MANUFACTURING COMPANIES IN PORT HARCOURT.
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PRODUCTION TECHNIQUES AND ORGANIZATIONAL PRODUCTIVITY
A SURVEY OF LARGE MANUFACTURING COMPANIES IN PORT HARCOURT.
TABLE OF CONTENTS
Title Page i
Table of contents v
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objectives of the study 5
1.4 Research questions 6
1.5 Research hypothesis 6
1.6 Scope of study 7
1.7 Significance of the study 8
1.8 Limitation of study 9
1.9 Definition of terms 10
1.10 Organization of the study 11
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 14
2.1 Production activities of the organization 15
2.2 Features of production 16
2.3 Production techniques 19
2.4 The production function 21
2.5 Production control 24
2.6 Production steps 29
2.7 Production analysis and methods 32
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 38
3.2 Research design 38
3.3 Population of the study 38
3.4 Sample size determination 39
3.5 Operational measure of the variables 41
3.6 Method/instrument for data collection 41
3.7 Data analysis 42
CHAPTER FOUR: PRESENTATION OF ANALYSIS OF DATA
4.1 Introduction 45
4.2 Data presentation 46
4.3 Data analysis 63
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction 71
5.1 Summary and discussion 71
5.2 Conclusion 72
5.3 Recommendations 73
This study is on production technique and organizational productivity. The objective of the study is to examine the relationship between the production techniques and productivity of large manufacturing firms in Port Harcourt. The study adopted primary and secondary sources to collect data. The instrument for primary data is questionnaire while secondary data consist of literature such as text books, journals, and newspaper, article and internet publications. The sample of 60 was selected from the study population using Yaro Yamen’s formula, while percentage is the data analysis technique, the hypothesis was tested using spearman rank order correlation coefficient (r2) and chi-square (X2) respectively. The study found out that there is a significant relationship between job production techniques and output level of large manufacturing firms. Secondly there is a significant relationship between batch production technique and profit margins and thirdly, there is a significant relationship between flow production technique and sales volume of large manufacturing firms in Port Harcourt. The study recommended careful selection of production technique, adequate production and operational planning and periodic review of production technique by large manufacturing firms. In conclusion, the study enriches the management research particularly on production technique and productivity studies.
1.1 BACKGROUND OF THE STUDY
Production could be conceived as the process of creating goods and services. The process of production required the acquisition of inputs, materials, equipment, manpower, money and others and their conversion into outputs that conform closely to the established technical and general specifications needs and services.
The issue of production has enkindled such interest that in recent years numerous researchers have attempted to explore the field. As Galloway (1992) puts it, this of course is understandable since production is very significant to all business organizations.
Musselman Hughes (1981) defines production as the process of transferring inputs from human and physical resources into outputs wanted by customers. The output may be either goods or services, what is involved in the production process will, however, vary with the type of enterprise, that is, whether service enterprise, manufacturing and so on production management involves the control and management of all facet of production activities necessary for the transformation of the input resources into finished outputs.
It can be described as an organized set of functions or activities aimed to enhancing production or operational efficiency within an organization.
In the opinion of Macodo (2005) the management of production required the performance of the basic functions of planning, reorganizing, and controlling just as the general management of the enterprise involves these functions. The production of goods is apparently the most important activity in all the sectors of the economy.
Firstly, all humans have need that requires satisfaction and it is only through production that they are made available to consumers. To accomplish this effectively, available resources have to be carefully organized and harnessed so that more can be produced at less cost. Examples of industries that heavily depend on production of commodities on which they rely include: transportation, wholesaling, retailing, construction and service industries.
According to Brown (2001) the modern production system consists of inputs, transformation process, outputs and controls. The inputs include human resources (works and management) capital (equipment and facilities) purchased materials and services, land and energy. Production involves the transformation of materials into forms different from the original materials. Typically, the process may involve a raw material producer, a user of raw materials combining or changing them into parts which are then assembled by another process into assemblies or finished goods.
Production operations are geared toward converting inputs to outputs. The inputs may include machines, funds and professional skills, while the outputs may be good and services. As Starr (1989) notes, outputs are produced by processing and refining resources to increase their value and this is accomplished through co-ordinated efforts of several individuals. Thus, the essential features of production function include the bringing together of people, plant and material to provide goods or services for sale. The study attempts to examine the relationship between production technique and productivity of manufacturing firm in Port Harcourt.
1.2 STATEMENT OF THE PROBLEM
1. The management of production is mainly done in such a way that objectives are not established, plans are not developed, organization structure and team is not set up, and neither is control exercised. This could considerably affect the extent to which organizational objectives is actualized.
2. In many manufacturing companies, management do not plan on what to produce in order to achieve specific objectives. Such planning is necessary as it enable them to identify strength and weakness in their immediate environment which could enhance their competitive advantage.
3. Failure to engage in product line planning could affect productivity in the firm.
4. Secondly in designing the product, management of many manufacturing fail to determine the attributes of the kind of finished product that is to be desired. This could have significant effect in sales volume.
5. Many manufacturing firms also engage in activities and tasks which do not only involve heavy resource.
1.3 OBJECTIVES OF THE STUDY
The study was undertaken to achieve the following objectives:
1. Examine the relationship between product line planning and productivity in large manufacturing firms in Port Harcourt.
2. To determine to what extent job production technique affect output levels of large manufacturing companies in Port Harcourt.
3. Determine to what extent product design affects sales volume of large manufacturing firms in Port Harcourt.
4. Determine to what extent production cost affect profit margin of large manufacturing firms in Port Harcourt.
1.4 RESEARCH QUESTIONS
The research questions were formulated to achieve the objectives of the study. The questions are:
1. What is the relationship between production technique and productivity of large manufacturing firms in Port Harcourt?
2. To what extent have product line planning affect output levels of large manufacturing firms in Port Harcourt?
3. To what extent have product design affect sales volume of large manufacturing firms in Port Harcourt.
4. To what extent have production cost affect profit margins of large manufacturing firms in Port Harcourt.
1.5 RESEARCH HYPOTHESES
The research hypotheses were formulated as follows:
H01: There is no relationship between product line planning and output levels of large manufacturing firms in Port Harcourt.
H02: There is no relationship between product design and profit margins of large manufacturing firms in Port Harcourt.
H03: There is no significant relationship between production cost and profit margins of large manufacturing firms in Port Harcourt.
1.6 SCOPE OF THE STUDY
The scope of study has geographical, conceptual and levels of analysis dimensions.
Geographically, the study includes all large manufacturing firms in Port Harcourt. Conceptually, the study discussed all the concepts, theories and viewpoints in production planning and management. It includes the production techniques, systems and processes particularly of manufacturing firms.
Under levels of analysis, of the study analyzed indices for measuring performance and trends at each or individual manufacturing firms in Port Harcourt.
1.7 SIGNIFICANCE OF THE STUDY
The study is useful to the following groups and organizations. It is beneficial to all stakeholders in large manufacturing firms such as production manages, host communities, suppliers and distributors as the study examines the relationship between production techniques and organizational productivity.
The study is useful to employees and investors as it discussed the factors that affect organizational effectiveness or productivity, production techniques, problems and challenges.
The study is valuable to top management of manufacturing firms and investors as the study analyzed the strengths, weaknesses, opportunity and threats in the environment where these firms operates.
The study is useful t management students of university of port Harcourt particularly those involved in seminars, workshops and symposia because it is a rich resource material.
The study enriches management science research as it provides a bride across the vacuum or gulf created by existing literature on the research problem.
1.8 LIMITATION OF THE STUDY
The scope of study imposes constraints on the study. The limitations in the study are bureaucratic difficulties encountered in many manufacturing firms during instrument administration, and the large population of study.
Others include the research design, sampling procedures, sample size determination, instrument, methods for data collection, the operational measures of the variable and the data analysis techniques.
The study is limited to selected large manufacturing firms in Port Harcourt. These are Ibeto coment limited Nigeria, Nigeria engineering works and Port Harcourt flour mills limited respectively.
1.9 DEFINITION OF TERMS
It is the division of a work on each product into batched or parts so that each part is complete before the manufacturing firms proceed to the next part.
It is the manufacturing of a product in a concurrent operation by a manufacturing firm.
It is the manufacture of a simple complete unit by an operator or group of operations in a manufacturing firm.
It is the method(s) adopted by manufacturing firms or converting inputs to outputs for their customers.
It is the bringing together of people, plant and material to provide goods for sale by manufacturing firms
It is the control and coordination of all facets of production activities necessary for the transformation of the input resources into finished outputs by manufacturing firms.
The difference between net and gross profit earned by manufacturing firm per time period.
It is the design process by which elements are transformed into useful products by manufacturing firms.
The revenue (net or gross) earned from the sale of finished products of manufacturing firm.
1.10 ORGANIZATION OF THE STUDY
The study is arranged into five chapters, chapter one provides the introduction of the study. These consist of the background of the study, statement of the problem, objectives of the study, research question, and hypotheses, among others.
Chapter two reviewed existing literatures on the study. The materials are on production function, techniques, features of production, objectives of production management, production control and performance measurement.
Chapter three discussed the methods and procedures used to investigate the research problem. These include research design, sampling procedures/sample size determination, instruments/methods for data collection operational measures of the variables and data analysis techniques.
Chapter four is concerned with the presentation and analysis of data and the test of hypotheses formulated for the study.
Chapter five provides for summary of findings, conclusion and recommendation for the remedy of the research problem.