Production planning and firm operational performance: A perspective from Dangote Cement PLC

Abstract

This paper focused on the effect of production planning on firm operational performance at Dangote Cement Plc. The study specifically investigates the impact of inventory control and forecasting on operational performance. The study was anchored on the theory of Resource-Based View (RBV). A descriptive survey research design was employed. The total population of the study comprises the staff of the selected departments in Dangote Cement Plc Benue Plant, which is one hundred and five (105) staff. This population was chosen because of their knowledge about the study. The sample size was determined at 83 using Taro Yamane’s statistical formula. The reliability of the instrument was ascertained using Cronbach's coefficient statistics at 85%. The tested hypotheses revealed that inventory control and forecasting have a significant influence on the operational performance of Dangote Cement Plc Benue Plant. The study concluded that production planning determines the kind of activity to be carried out and the amount of time needed to perform this activity. This will improve and foster productivity through high organisational structure. The study therefore recommended that the management timely place an order for basic raw materials, as that will minimise the incidence of stock outs, which may affect the production process and customer satisfaction.