CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF STUDY

Production is one of the most important function of management in every organization. The essence of production is to prepare  or forecast into the future in terms of production in an organization. As such Baryoko (2002) opined that production planning is mainly concerned with the directing and controlling of production process of an organization in order foster optimum utilization of human and material resources  use in production, which brings about increase productivity and consequently profit maximization.

Similarly Nwachukwu (2007) opined that production planning involves the establishment of the overall strategy and process design required for the realization of effective production in an organization.

As such, production planning’s particularly very important in a developing country where resources are relatively scarce. In Nigeria, where many of the manufacturing firms are inexperienced interms of technical know-how, production planning become very imperative in other to avoid waste of resources. This is so because production planning is a blue print for action. As such all manufacturing organization who are into production need to plan their production in order to gain an optimum utilization of their plant and raw materials use in production.

However, Ayo (2006) opined that failure to engage in production planning give rise to inefficiency and lack of direction. It make the organizations to constantly put off fire instead of preventing its occurrence. This implies that production planning entails the identification of what at business plans to do in terms of growth, development and survival or continuous existence. But inspite of this, over 48.6% of Nigeria indigenous organizations do not undertake a formal plan and do not have production budgets.

It is against this background that the researcher deemed it very imperative to investigate the subject matter of this research. The impact of production planning on productivity in seven-up bottling company Kaduna.