MINIMIZING DEFECTIVE PRODUCT THROUGH EFFECTIVE PRODUCTION PLANNING AND CONTROL IN DEFENCE INDUSTRIES CORPORATION OF NIGERIA

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MINIMIZING DEFECTIVE PRODUCT THROUGH EFFECTIVE PRODUCTION PLANNING AND CONTROL IN DEFENCE INDUSTRIES CORPORATION OF NIGERIA

TABLE OF CONTENTS

Title page – – – – – – – – – –

Declaration – – – – – – – – –

Approval page – – – – – – – – –

Dedication – – – – – – – – – –

Acknowledgement – – – – – – – –

Abstract – – – – – – – – – –

Table of Contents – – – – – – – –

CHAPTER ONE

1.1 Background of the Study – – – – – –

1.2 Statement of Research Problem – – – – –

1.3 Objective of the Study – – – – – – –

1.4 Significance of the Study – – – – – –

1.5 Statement of Hypothesis – – – – – –

1.6 Scope of the Study- – – – – – – –

1.7 Limitation of the Study – – – – – –

1.8 Historical Background of the Study – – – –

1.9 Definition of Terms – – – – – – –

CHAPTER TWO

LITERATURE REVIEW

2.1 Production – – – – – – – – –

2.2 Planning – – – – – – – – –

2.3 Control – – – – – – – – –

2.4 Production Planning – – – – – – –

2.5 Production Control – – – – – – –

2.6 Planning and Control – – – – – – –

2.7 Basic Alternatives/Process Selection – – – –

2.8 Summary of Review – – – – – – –

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design – – – – – – –

3.2 Research Population – – – – – – –

3.3 Sample Size and Sampling Techniques – – –

3.4 Method of Data Analysis – – – – – –

3.5 Justification of Method Used – – – – –

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Presentation and Analysis of Data – – – – 44

4.2 Test of Hypothesis – – – – – – – 50

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings – – – – – – – 53

5.2 Conclusions – – – – – – – – 54

5.3 Recommendations – – – – – – – 55

References – – – – – – – – – 56

Appendices – – – – – – – – 57

ABSTRACT

This research work examine production planning and control as a tool for minimizing defective products through effective production planning and control in Defence Industries Corporation of Nigeria (DICON), Kakuri Kaduna. Hence the scope of the research cover every activity which has to do with production planning and control. The work covers statement of the general problems, research objectives, scope of the study, significance of the study and limitation of the study. Also diverse view of authors on production planning and control and other related areas in review. The research work employs the descriptive method for the purpose of an in-depth investigation. A sample size of 70 respondents was selected from the total population of 180 staff, questionnaire were administered to them, oral and verbal interview as well as obtaining information. Hypothesis H₀ and H₁ formulated on using effective production planning and control to minimize defective product in production performance. Date collected were presented and daily analyzed in tabular format using percentages, other findings of the studying centered on the required raw materials used by the organization but sourced outside the country, government policies such as hinge tax payments, customers and excise charges contributes to high production cost with locally sourced raw materials not maintaining a stable price from time to time with future plans having limitation due to some government regulations, economic downs turn, environmental factors technological changes, competitors actions. The study also brought to the fore the importance of production planning and control in the role of forecasting in production and operation management. Finally based on the findings a number of quality recommendation were offered to the organization to embrace in raw materials sourcing using alternative means i.e. research and development department, the complete computerization of the control system and other key system should be pursued effectively.

CHAPTER ONE

BACKGROUND OF THE STUDY

Production Planning and Control provides the foundation for any effective production management in every organization or manufacturing sector by minimizing defective products is very vital issue to a production managers.

To guarantee effective material flow Production Planning and Control represents the beating heart of any manufacturing process. Production Planning and Control purpose is to minimize production time and costs, efficiently organize the use of resources and maximize efficiency in the work place.

Production Planning as defined by Digreens (2009, pg. 21) “is a set of function concerned with the effective utilization of limited resources (such as raw materials, manpower, machinery etc.) and the management of materials flow through these resources, so as to satisfy customer demands and create profit.

As can be seen in other related field of management, Production Planning and Control plays the primary functions of the production management and operations.

This has prompted this research work to look at Production Planning and Control as a tool for minimizing defective product in manufacturing industries of Nigeria economy as exemplified by Defence Industries Corporation of Nigeria Kakuri, Kaduna. Production is the central focus of any manufacturing concern. It is the platform where the real mix takes place i.e. the conversion of raw materials (in-put, starters) into completed or finished products (output) after a well planned logical form or process production planning incorporate a multiplicity of production elements, ranging from the every day activities of staff to the ability to realize accurate delivery times for the customers.

Modern and improve production is complex hence technologically related operations and administrative activities must be planned carefully to make account and benefits. With an effective production planning cooperation at its nucleus, any form of manufacturing process has the capability of exploit its full potential.

In Production Planning, it not only involves the type of operation to be used but also the order of these operations as well as time which the operation should take and how it should be properly and effectively laid out.

There are different function performed by Production Planning and Control Department of an organization. Procedures may also vary; all the production planning and control department are essentially expected to perform the following functions:

According to Buffa, E.S, Modern Management, New Delhi: Willy 1988 “Production Planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency.” It helps entrepreneur to work out the quantity of material, manpower, machine and money requires for producing predetermined level of output in a given period of time.

Routing: Under this, the operations their path and sequence are established. To perform these operations, the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence and to ensure that this sequence is strictly followed.

Routine procedure involves following different activities:

An analysis of the article to determine what to make and what to buy.
To determine the quality and type of material.
Determining the manufacturing operations and their sequence.
A determination of lot sizes
Determination of scrap factors
An analysis of cost of the article
Organization of production control firm

Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowance for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one another which is listed below:

Production Schedule: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without inference. Its not independent decision as it takes into account the following factors.
Physical plant facilities of the type required to process the material being scheduled.
Personnel who possess the desired skills and experience to operate the equipment and perform the type of involved.
Necessary material and purchased parts.
Master Schedule: Scheduling usually start with preparation of master schedule which is weekly or monthly break-down of the production requirement for each, product for a definite time period; by having this as a running record of total production requirement. This forms a base for all subsequent scheduling activities. A master schedule is followed by operator schedule which fixes total time required to do a piece of work with a given machine or which shows the time required to do each detailed operation of a given job with a given machine or process.
Manufacturing Schedule: It is prepared on the basis of type of manufacturing process involved. It is very useful where single or a few product are manufactured repeatedly at regular interval. Thus it would show the required quality of each product and sequence in which the same to be operated.
Scheduling of Job Order Manufacturing: Scheduling acquires greater importance in job ordering manufacturing. This will enable the speedy execution of job at each center point. It enables the foreman to see at a glance;
The total load on any section
The operational sequence
The stage, which any job has reached

Loading: The next step is the execution of the schedule plan as per the route chalked out, it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determine where and scheduling determines when it shall be done.

Production Control:

Samuel Elison (1994) in his book, Element of Production Planning and Control, Bombay: Universal Book Co., 1985 says “Production control is the process of planning production in advance of operation, establishing the extract route of each individual item part or assembly, setting, starting and finishing production and releasing the necessary order as well initiating the necessary follow-up to have the smooth function to the enterprise.

Dispatching: Dispatching involves issue of production order for starting the operation, necessary authority and confirmation is given for:

Movement of materials to different work station
Movement of tools and fixtures necessary for each operation
Beginning of work on each operation
Recording if time and cost involved in each operation.
Movement of work from one operation to another in accordance with the route sheet.
Inspection or supervision of work.

Dispatching is an important step as it translate production plan into production.

Follow Up: Every production programme involve determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operation are taking place in accordance with the plans. It spot delays or deviation from the production plans. It helps to reveal defects in routing and scheduling, misunderstanding or orders and instruction, under loading or over loading of work etc.

Inspection: This is mainly the quality of goods, it can be required as effective agency of production control.

Corrective Measure: Corrective action may involve any of those activities of adjusting the route, rescheduling of work changing the work loads, repairs and maintenance of machinery or equipment, control over inventories of the cause of deviation in the poor performance of the employees. Certainly personnel decisions like training, transfers, demotion etc. may have to be taken alternative methods may be suggested to handle peak loads. The following are required to be able to achieve the activities successfully:

Sales or contract programmes
Approval of design for manufacturers
Jigs and fixture tools for manufacturer
Rate fixing and time study – work study
Estimate of costs – labour, overhead experience etc.
Routine and machine allocation
Amount of inspection required and necessary
Labour/workforce required e.g. skilled or unskilled
Report writing i.e. finding reported for appropriate action

STATEMENT OF RESEARCH PROBLEM

For a manufacturing organization and indeed any other organization besides the general planning and control planning, control of materials is particularly very crucial for its survival hence effective producing planning and control is necessary in every organization.

The success of our present day industries depends on how to effectively utilize and to enhance growth and development and sustain for better industrialization.

Therefore, this research work is concerned with identifying the way in which defective product can be minimized through effective production planning and control in Defence Indus tries Corporation of Nigeria.

To this end, the following questions occupy our mind before the research as problem generally associated on what roel does the choice of production planning and control plays in a Defence industries.

The researcher wants to know why production planning and control is vital and useful in minimizing defective products in Defence Industries.

While there is not standard system in production planning and control which can be universally recommended, even production planning and control system must be designed to meet the particular needs and concern of the manufacturing organization.

OBJECTIVE OF THE STUDY

The importance of production planning and control motivated me to undertake a study of how the principle and techniques of production planning and control are applied in defence industries corporation of Nigeria (DICON), Kakuri Kaduna.

However, the primary concern of this research work is to investigate.

The tool to minimize defective product in Defence Industries that deals with the production of arms and ammunition.
The study is also aimed at examining the effectiveness of the application of production planning and control in today’s manufacturing for the growth of the organization and at the same time provide useful suggestion to the identified problems by advising the management all cost associated and increase efficiency in the organization as a whole.
The factors influencing the choice of production.
Various factors, which are crucial for designing the production.

It is hoped that, this objectives when attain will be tremendous benefit to the Defence Industries Corporation of Nigeria (DICON) and Nigeria in general.

SIGNIFICANCE OF THE STUDY

This study will be of great significance in that it seeks to emphasize on:

How the principle and technique of production planning and control has been practiced as DICON ordnance factory complex, Kakuri Kaduna.
The entire process involve that make production of each arm and ammunition possible from the start of production, steps it passes through and detail of the whole process.
It will help in broadening the academic horizon of the researcher.

Finally, it is hoped that the work will serve as a reference guide to students and scholars who ought to use it.

Statement of Hypothesis

This research work constitutes the following statement of hypothesis:

H₀: Defective Product cannot be minimized through effective Production Planning and Control.

H₁: Defective Product can be minimized through effective Production Planning and Control.

SCOPE OF THE STUDY

The scope of the study is to investigate the effective measure on Production Planning and Control that exist at DICON and the individual production process of each arm and ammunition from start to finish of the detail process in doing so, the researcher will re strict attention to Defence Industries Corporation of Nigeria ordnance factory complex Kakuri Kaduna, Production Planning and Control Department.

LIMITATION OF THE STUDY

The part of any undertaking is not an easy one, constraints, limitation, hindrances, unforeseen problems and stress are generally expected and bound to happen in most research work, thus my research is same and is not exception.

The first problem being in collecting, finding and required text books on the subject matter of the research at the initial stage.

Next problem was time constraint. Time is very important and to get accurate and up to date data but the time allowed for the work is not adequate because being a student, the researcher, at the same time battling with class works, assignments as well as external classroom problems coupled with the global melt down experiencing presently.

Finally, other commitment such as work pressure which also have to be considered.

HISTORICAL BACKGROUND OF THE STUDY

Defence Industries Corporation of Nigeria (DICON) was established by an act of parliament in 1964 to “operate maintain and control factories for the manufacture, storage and disposal of ordnance and ancillary stores and materials; to provide for alteration in any such manufacture, storage and disposal at any time; and for related matters”. As an arm or department under the supervision of the Ministry of Defence, DICON is governed by a Board of Directors, which provides the overall policy direction for the corporation as desired by the Federal Government. The DICON Board is presently constituted as follows:

Permanent Secretary, Ministry of Defence Chairman;
Director General – DICON, Vice Chairman;
Representative of the Accountant General of the Federation, Member;
Representative of the Federal Ministry of Industries, member;
Representative of the Chief of Naval Staff, Members;
Representative of the Chief of Airstaff, Member;
Representative of the Inspector General of Police, Member; and
Representative of the Federal Ministry of Finance, Member.

The Director – General is the Chief Executive Officer (CEO) of the Corporation and is responsible for the day to day running of DICON. The corporation is structured on six (6) professional departments namely:

The Directorate of Production;
The Directorate of Research and Development;
The Directorate of Engineering Services;
The Directorate of Human Resources Management
The Directorate of Finance and Account; and
The Directorate of Planning and Business Development.

The Corporation vision is built on a sound commercial footing to continuously produce and constantly improve on the quality of arms and ammunition needs of the defence security and foreign policy of Nigeria in compliance with the best international and standards.

Mission is to operate ordnance factories for the manufacture and supply of arm and ammunition as well as inspecting, testing and recommending ordnance material and other security organization while using the excess capacity to support the development of local industries.

DEFINITION OF TERMS
Production: This refers to the conversion of a set of inputs into a set of desired outputs.
Planning: This refers to an outline drawing that plans or helps the organization to define its purpose of activities.
Production Planning: May be defined as the technique of foreseeing every step in a long series of separate operation.
Production Control: This is the function concerned with controlling manufacture in such a manner as to enable plan to be achieved or to limit the deviation form those plan.
Production Scheme: This master production schedule comes next in the sequence of event by demand forecast and a quality of production plan.
Batch Production: This refers to the batch production which is much like continuous manufacture or preparation of foods, paper, glass, rubber and even steal.
Process Layout: This refer to the situation in which similar machine and services are located together.
Line Layout: This refers to the way product move down a line pass successive workstation where one operation after another is done.
Intermittent Production: Is where physical facilities must be flexible enough to handle a wide variety of product and size.
Inventory: This refers to material or goods kept in the store.
Control: Checking to ensure that accurate quantity and quality is maintained.
Inspection: This refers to the process of checking to make sure that, the material supplied is to specification and of right quantity.
Stock Record Card: This is the card showing the quantity unit price and total value of balance at hand.
Storage: This means holding and protecting commodities or materials for later use and the system which such material are handled, controlled for effective retrieval.
Leadtime: Refers to the expected time of delivery.
Loading: Refers to the load as the work assigned to a machine or an operator.
DICON: Defence Industries Corporation of Nigeria.
QCD: Quality Control Department.