IMPACT OF PRODUCTION PLANNING AND CONTROL ON OPERATIONAL COST IN MANUFACTURING INDUSTRY
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ABSTRACT
This study was carried out to examine the impact of production planning and control on operational cost in manufacturing industry using seven up bottling company Benin factory in Edo State as a case study. Specifically, the study aimed at examining the effect of production planning and control on operational cost of Seven up bottling company; examine the effect of production planning and control on profitability of Seven up bottling company; and examine the effect of production planning and control on organizational effectiveness and productivity of Seven up bottling company. The study employed the survey descriptive research design. A total of 133 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that there is a significant relationship between production planning/control and operational cost in seven up bottling company; there is a significant relationship between production planning/control and profitability in seven up bottling company; and there is a significant relationship between production planning/control and organizational effectiveness/productivity in seven up bottling company. The study therefore recommend that since production planning enhances corporate productivity performance, Nigerian manufacturing firms must with seriousness be involved in effective and formal planning of production activity and its implementation, irrespective of the size and age of the firm. Moreso, Nigerian manufacturing firms should embrace the application of advanced manufacturing technology, such as automated production technology, computer assisted design and manufacturing (CAD/CAM), robotics and flexible, manufacturing systems.
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