CHAPTER ONE

• 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.

• 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.

• 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.

• 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.

• RESEARCH QUESTIONS

1. How adequate is the practice of production control in respect to selecting and loading in PAN?
2. How effective are the practice of control system in PAN?

• 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.

• 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:
  1. Physical as in manufacturing
  2. Locational, as in transportation
  3. Exchange, as in retailing
  4. 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.