Enhancing Performance of Production Planning and Controlling: A Case Of Hiwot Bottled Water Factory
No Thumbnail Available
Date
2020-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The purpose of this study is an attempt to identify the problems of production planning and controlling performance in Hiwot bottled water. Additionally, to study the effective utilization of resources and not accurate planning analysis, coexist in the company. To conduct this research-intensive literature survey was carried out. With regards to the research, questionnaires were developed; general information production planning and controlling, material requirement planning, demand forecasting, lead time, inventory control, scheduling accuracy, production planning tracking are key performance indicates are selected for analysis. The questioner (research tools) was distributed to 11 staff which are directly involved in production planning and controlling activity and all questionnaires filled. Then, the collected data were analyzed using IBM SPSS 20.0; in both descriptive (mean and standard deviation and inferential statics (correlation and regression).in addition to these the optimizations analysis are done using Goal programming with POM-QM software and got an optimal solution for throughout a year and analyzed basic utilization of resource ( production time, cost, warehouse capacity, inventory, labour).
Finding values: Regarding the correlation analysis, it is possible to conclude that there is strong and positive relationship among the key performance indicators of production planning and controlling are material resource planning, manufacturing resource planning, lead time, scheduling accuracy, capacity planning, production planning tracking and correlation analysis indicates statistically significant of 0.53, 0.693, 0.667, 0.731, 0.747, 0.630 and the optimal result For the first quarter deviational variable; d1+ to d12+ are equal to zero so that the objective four can be attained in January, February, March, but cannot attain in this period from January to march deviational from d24+, d25+ , d26+ and d27+ are 0, 0, 1530438, 1878087 respectively, the value d25+=1530438, d26+= 1878087. For the second quarter the analysis showed that the production costs in these time intervals are underutilized. Between July to September the production costs reduced and the resource in these time intervals are underutilized. The percentage utilization in two consecutive months are 9.49%, 11.3%. The warehouse capacity will be under capacity during the first quarter to fourth quarter year.
Finally, the study develops a model and recommended the factory to have a proper production planning and control with better utilization of resource in order to enhance production planning.
Description
Keywords
Hiwot Bottled Water Factory, Production Planning, Enhancing Performance, Controlling