BASIC PRODUCTION CONTROL PROBLEM IN AUTOMOBILE INDUSTRY AND BEST WAYS OF SOLVING THEM (A CASE STUDY OF PAN)
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BASIC PRODUCTION CONTROL PROBLEM IN AUTOMOBILE INDUSTRY AND BEST WAYS OF SOLVING THEM
(A
CASE STUDY OF PAN)
ABSTRACT
This
research is on basic production control problems in automobile industries and
best way of solving them with reference to Peugeot Automobile Nigerian Limited,
Kaduna. Its primary aim is to determine the basic
production control problems in automobile industries and best way if solving
them. The researcher also aims to find related to production control problems
among others. The researcher divided the project work into five chapters.
Chapter one forms the general introduction, brief history of the organization,
statements of problems, research questions, scope and limitation of the study,
and definition of key terms. Chapter two deals with review of related
literatures. Chapter three deals with research methodology. Chapter four
analyzed and presented the data collected and answered to research questions. Chapter five deals with the summary,
conclusion and recommendations.
CHAPTER
ONE
1.1 INTRODUCTION
Ever since the industrial revolution
a couple of years ago which encouraged us from an economy based in agriculture
into on based on manufacturing, our standard of living depended on the
efficient production of goods and services, without production we would still
be a poor and backward nation instead of being what we re. we have been
overtaken by some many countries in recent years and one of the main reason for
this is that our production of goods and services has not been efficient as in
those countries. Am obvious example is Japan which may have viable mineral
resources compared to our own nation that has a lot of them. Japan his risen through
the years due to their efforts in technology. The country has advanced in
technology up to the extent of overtaking us in terms of wealth without viable
mineral resources.
In almost every country, people want
a high and risen standard of living and this could only be achieved by more
effective production of goods and services. Every industry, whether
manufacturing are services, need to be run efficiently and competently both in
its technological advancement and its organization. In short, it most produce
the goods. Production is basically about the creation of goods and services. It
cal also include the modification and assembly of existing goods such as
turning copper wire into electric motor and the repair and servicing of broken
goods. Whatever from production may take it must be carefully planned and
controlled. The control of production itself must be carefully planned and
implemented indeed the most beautiful production plan cannot be very effective
it if ir not guaranteed.
In this study therefore intend to critically examine the concept of
production using PAN as a case study.
1.2 PURPOSE
OF STUDY
The main objective of this research
among other things is as follows:
§
To
meet basic requirement for the award if higher national diploma in production
and operations management.
§
To
critically look at various production control problems faced by PAN.
1.3 HISTORICAL
BACKGROUND OF PAN
The historical background of PAN. The
history of what has become Nigeria
favourite car dated back to 1957 when 100 units of Peugeot 403 were imported by
individuals into the country. Tow years later SCGA was appointed, the sole
agent to Peugeot cars and imported the first of 403 Peugeot cars. Recognizing
the need and to meet up demand, the military government of Nigeria opened
negotiations with Peugeot company based in France for setting up of an assembly
plant in Nigeria. The dream become reality on December 15th 1972 Peugeot
Automobile Nigeria was incorporated with an authorized share capital of three
million naira on March 14th 1975, the Assembly plant in Kaduna State
was commissioned by the then Head of State, General Yakubu Gowon as the first
set of Nigeria Peugeot cars rolled our of the plant. Since then PAN’S annual
turnover has undergone remarkable growth from eight million four hundred in
1975 to height fifty six million six hundred since its inception, PAN has tuned
out over 300,00 cars within the first decade. As at the end of 1986, total
assets of the company stood over one billion (1,000,000,000). PAN was
established with a primary objective of assembling and manufacturing Peugeot
brands of vehicles the industry is expected to serve as concrete “justification
for Nigeria’s Steel Industry” and a catalyst for spring up of other forward and
backward integrated industries. All these objectives besides proving employment
to thousand of Nigerians are gradually
being achieved.
OWNERSHIP
The ownership structure of the
company is as follows:
Federal Government of Nigeria - 40%
Automobile Peugeot of France - 40%
Kaduna/Katsina State Government - 10%
Distributors - 10%
MANAGEMENT
The Company policy affairs are looked
after by Boards of Directors headed by a Chairman, while the general management
team id headed by a managing director, assisted by deputy managing director and
also by:
§
The
members of federal ministry of industries
§
A
representative of Federal Ministry of trade
§
A
Representative of Kaduna state Government
§
A
representative of Automobile Peugeot
These are five major divisions under
the management structure, these are:
Personnel
Administration
Commercial
Finance
Manufacturing Plant and local content
or purchase division each headed by a general manager.
1.4 STATEMENT
OF RESEARCH PROBLEM
This study as earlier indicated is
focused on the production control problems. What are the various production
control problems with an effort to providing valuable solution.
I shall closely study the operations
of control division with the view of determine the production control systems
being applied and identifying the problem encountered. To put the subject of
discussion into proper context and to enhance greater understanding, attempts
are being made to review the existing literature on the subject.
1.5 RESEARCH
QUESTIONS
a)
How
adequate is the practice of production control in respect to selecting and
loading in PAN?
b)
How
effective are the practice of control system in PAN?
1.6 SCOPE
OF THE STUDY
The task of achieving the objective
of this study has not been a problem free. A number of problems have been
encountered that tend to limit the success of the work. For instance there was
the usual problem of reluctance of respondents to provide the needed
information. Transportation to the company posed a lot of problems considering
the location of the factory, which is at the outskirt of the town.
Time constraint due to the nature of
the course an the tedious task of having to combine the rigorous activities of
the course and the research work coupled with one’s vocation makes the research
highly time and energy demanding. Financial problem were also not ruled our as
a regards to the cost of material needed and information for the research and
the compilation of the report. With reference to PAN. This means that
particular attention will be given to the company, precisely I shall closely
study the operation of the control division with the view of determining the
production control systems being applied and identifying the problem
encountered.
To put the subject of discussion into
proper context and to enhance greater understanding attempts are being made to
review the existing literature on the subject.
1.7 DEFINITION
OF KEY TERMS
§
Production
can be defined as transformation of input into output. A component may be a
machine, a man, a tool or a part of the environment of the system. An input may
be a raw material, a person, or a finished product emanating from another
system, which I to be acted upon. Some transformation that take place are:
a)
Physical
as in manufacturing
b)
Locational,
as in transportation
c)
Exchange,
as in retailing
d)
Storage
as in warehouse
§
Control
is a genera management function which can be described as the follow-up of
outcome of event to ensure that policies are adhered to in the execution of
duties.
§
Product:
can be defined as anything that can be offered for attention, acquitting use or
consumption and satisfaction of wants and needs.
§
Inventory:
Can be defined as the mans by which material of the right quantity are made
available as and when required
§
Manufacturing:
Can be defined as a process of transformation of goods and services.
§
Industries:
Can be defined as a place where raw materials are being transformed into goods.
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