CHAPTER ONE: INTRODUCTION

1.1       Background of Study
Production which is concerned with creation of utility provides for activities that produced goods through forms, time and place. This is the reason for Olayinka and Aminu’s (2006: 345) opinion that production is not complete in the absence of adequate technological capacity, strength or Ageing condition of equipment and quality control. In their explanation production in organizations when focused on innovative management (i.e technology) produced results that stands today’s world of intense competition and rapidly changing consumers tastes, wants and values. No organization relaxes and hope that at the end any goods produced will be sold. To stay relevant to the environment and stakeholders, organizations production requires planning that guarantees preferred quality by consumers. At this, Ewurum (2004) encourages that organizations continuously evolve means developing and managing production and products capable of creating product standard as well as sustainable value that satisfies customers through competitive advantage of such organization.
Thus, production planning of organizations are effective when it constantly explores and traverses the frontiers of innovation for new idea, methods, technology and products that can give the much-needed competitive edge. Production planning that gives organizations deserve product quality according to Onuoha (1999:173) is one in which the future and its consequences are predicted inline with recent trends. It is expected to involve acquiring the right materials using predetermined cost and times. In other words, relevant raw materials are purchased, processed in the right time, place and persons by way of finished products. As such production planning enables organizations to provides for future uncertainties or at least ameliorate their negative effects in product quality . what production planning is effectively carried out in organizations, ambiguity, errors, wastes and underutilization of resources are minimized for maximum productivity and quality product/service delivery to customers.
However, Chang’s (2001) assessment is that production planning that results into product quality of organizations depends on the type of plan in place. He specifically encouraged that organizations should embrace both short- and long-term production plan in addition to stipulated production policies, procedures, rules, programmes, projects and budgets. Production planning for product quality control according to him (Chang, 2001) is set to meet production of right quality and quantity.
The quality of the product is established based on the customer’s needs, customer’s needs are translated into product specifications by the design for engineering department. The manufacturing department then translates these specifications into measurable objectives. Thus the cost/quality trade off decides the final quality of the product. Therefore, a proper balance is obtained such that the product quality offered to the customer is within the pre-established manufacturing cost.
The manufacturing organization produced the products at the right number. If the products are produced in quantity excess of demand, the capital will be tied up in form- of inventory and if it is produced in quantity short of demand, there will be shortages of products. Thus a decision is taken regarding how much to produce. In an increasingly knowledge-based economy that emphasizes the ability of organizations to produce is greatly influenced by ideas and innovation in the adoption and utilization of production capacity and quality control. Among all organisational outputs, innovation in production and resource control is fundamental not only in view of its direct impact on the viability of firms but also because of its profound effects on quality service delivery (Robin and Courter, 2008). while manufacturers had hitherto focused on new product development as a means of growth, it is argued that a more structured mechanism for managing the process of product quality as value added to profitability. The modern industry must develop a way to coordinate and manage the flow of information and ideas on product planning and quality, between the various functions in the industry if it is to tap from the ‘pool of knowledge’ to survive competition. This underscores the importance of planning (evolving and developing) products and production effectively in the industry. In this connection, they (Robin and Courter, 2008) assert that production planning and product quality control are process that companies are going to have to manage, rather than something that magically happens. Companies need to establish a seamless innovation process in production planning and product quality control required to create, market, and service breakthrough products are available and assessable to those who need them. This way a company can realistically hope to remain competitive and provide attractive returns on shareholders’ investment in the dynamics of global standards.

1.2       Statement of Problem
Production planning like any other managerial activity is not always easy and smooth. A number of factors seem to impede effective production planning and product quality control, one of them is the problem of rapid change, for example, dynamic and complex environmental, technological, political, social and economic changes that has continually affected a given production plans and product control. Although all businesses are subject to some change, the degree of instability and complexity caused by social dynamic varies considerably from industry to industry and business environment. However, rapid change in the social dynamics remains a major challenge in production planning and product quality control. Despite the pervasiveness of production planning and product quality control, some managers resist change resulting from it for the following reasons; a preference for familiar goals and plans, fear of the unknown, economic insecurity, prolonged negotiation with labour union(s), government control and regulations, scarcity of raw materials and shortage of managerial and technical talents. It should also be noted that good production planning and product quality control is both time- consuming and expensive as reasonable amount of time and effort are usually devoted to forecasting and evaluation expected result and performance.
Specifically, production planning and product quality control in Nigeria Breweries Plc has been adversely affected in declining capacity utilization, customer reduction, profit drop, and capital depreciation. Adequate production planning and product quality control practices are important for any organization’s survival in the dynamic world of change (global competition). Based on the above consideration, this study will answer the question of, how can production planning and product quality control be effectively established and managed to achieve sustained growth and create value for all stakeholders in the manufacturing industry?

1.3       Objective of the Study
The main purpose of this study is to examine production planning and product quality control in manufacturing industry of Nigeria, using Nigeria Breweries Plc in Lagos state as a case study.
Main objectives of the study are:

1.  To ascertain if dynamic and complex business environment affects production planning and product quality control of organizations.
2. To highlight some of the challenges associated with production planning and product quality control of organizations.
3. To examine which type of production planning and product quality control of organizations is frequently used and most effective.
4. To find out how production planning and product quality control of organizations result to declining capacity utilization, customer reduction, profit drop, and capital depreciation of organizations.
5. To determine the impact of production planning and product quality control of organizations on corporate performance.
6.  To identify factors that will enhance production planning and product quality control of organizations.

1.4       Research Questions
The following research questions were formed to guide this study:

1. Does dynamic and complex business environment affect production planning and product quality control of organizations?
2. To what extent has inconsistent policies and attitudes to change affected production planning and product quality control of organizations?
3. Which is the type of production planning and product quality control of organizations most frequently used and effective?
4. Do production planning and product quality control of organizations result to declining capacity utilization, customer reduction, profit drop, and capital depreciation?
5. Do production planning and product quality control of organizations impact on corporate performance?
6. What factors enhance production planning and product quality control of organizations?

1.5       Research Hypotheses
The following research hypotheses formulated will be tested in chapter four;
Hypothesis One
H0: Dynamic and complex business environment does not affect production
planning and product quality control of organizations
H1: Dynamic and complex business environment affects production
planning and product quality control of organizations
Hypothesis Two
H0 : Inconsistent policies and attitudes to change does not affect production planning and product quality control of organizations
H1: Inconsistent policies and attitudes to change affect production planning and product quality control of organizations
Hypothesis Three
H0: Medium/long term production planning and product quality control of organizations are not frequently used and effective
H1: Medium/long term production planning and product quality control of organizations are frequently used and effective
Hypothesis Four
H0: Production planning and product quality control of organizations do not results to declining capacity utilization, customer reduction, profit drop, and capital depreciation
H1: Production planning and product quality control of organizations results to declining capacity utilization, customer reduction, profit drop, and capital depreciation
Hypothesis Five
H0 : Production planning and product quality control of organizations do not impact on corporate performance
H1: Production planning and product quality control of organizations impact on corporate performance
Hypothesis Six
H0 : Increase in profit performance of organizations does not enhance their production planning and product quality control process
H1: Increase in profit performance of organizations enhances their production planning and product quality control process

1.6       Significance of the Study
This study will be relevant to both the management and staff of Nigerian Breweries Plc and all other players in the industry. The study will be beneficial to; researcher, stakeholders; government and related persons or institutions.
The findings of this study will be explored by brewery industry as inputs for planning and in the formulation of relevant policies concerning their operations (i.e production planning and product quality control). The effect of this is that improved productivity can be enhanced from brewery industry translating into higher returns on investment, thereby ensuring the going–concern status of the brewery understudy. The study will also help the government in harnessing the nation’s resources by reviewing the usefulness this would have on the economy especially in the production of quality products. It will make for recommendations as to how performance and productivity can be improved. Finally, to the academic community and other interested researchers, this study will add to the existing knowledge for reference purposes. It will also help in identifying chronic management problems that do not lend themselves easily to management solutions.

1.7       Scope of the Study
The research focused on production planning and product quality control in brewery industry of Nigeria with particular reference to Nigerian Breweries Plc in Lagos State between 2005-2012. The study covered Senior Managers, Managers, Officers and Supervisors /Others management staff in different departments with different educational background.

1.8       Limitations of the Study
The main limitation of this research is divided into three parts.
Time Constraint: Due to the limited time frame for this study, the research could not really get all required information needed for the study.
Attitude of the Respondents: The attitudes of respondents are likely to affect the research work because some of them may be unwilling to cooperate with the researcher as they might have nothing to benefit from the study financially and otherwise.
Finance: This study is likely to be affected by financial constraints and consequently the researcher could not visit all the places where necessary information relevant to the study could be obtained.

1.9       DEFINITION OF TERMS
The following terminology in this study means;
Input: This is used to measure the effect of an idea, concept, event and programme on the existence of an entity (Ama, 2001:387).
Product Planning: This means sourcing raw materials, processing and producing finished goods that satisfies wants and needs of consumer (Aminu and Olayinka, 2006).
TQM: This means total quality management and it is a concept used to improve on service delivery of an organization to its customer (Coulter and Robbins , 1998:501).       
Competence: This term is used to describe the knowledge, skills and behaviours needed for effective job performance (Onuoha, 198:17).
Stakeholders: These are the owners of organizations by virtue of their resource commitment to the running of such organizations (Olowe 1998:433).
Customers: These consist of buyers that patronize goods and services as produced in an organization (Okpara, 2002:142).
Employees:     These are the operational that sees to the day to day running of organization activities. In other words, the performance in an organizations daily routine in the production of goods and services is conducted through them (Coulter and Robbins, 1998:637).       
Productivity: These involve input/output relationship in the production of goods and services aimed at maximizing profits (Coulter and Robbins, 1998:582).          
Effectiveness: This is the ability to determine and achieve the organizational objective (Onuoha, 1998:19).
Organizational Resources: These are human and material activities put together in an organized system to achieve predetermined goal(s) (Olise, 2003:28).