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
PAGE
Title Page i
Certification ii
Dedication iii
Acknowledgment iv
Table of contents v
Abstract vi
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
Appendix 76
Bibliography 84
ABSTRACT
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.
CHAPTER ONE
INTRODUCTION
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
Batch Production
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.
Flow Production
It
is the manufacturing of a product in a concurrent operation by a manufacturing
firm.
Job Production
It
is the manufacture of a simple complete unit by an operator or group of
operations in a manufacturing firm.
Production Techniques
It
is the method(s) adopted by manufacturing firms or converting inputs to outputs
for their customers.
Production Function
It
is the bringing together of people, plant and material to provide goods for
sale by manufacturing firms
Production Management
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.
Profit Margin
The
difference between net and gross profit earned by manufacturing firm per time
period.
Production Systems
It
is the design process by which elements are transformed into useful products by
manufacturing firms.
Sales Volume
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.
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