The purpose of writing this project is for the partial fulfillment of the requirement for the award of higher National Diploma in Business Administration and management. This research project is aimed to exaime production planning and inventory control in manufacturing company using TUYIL pharmaceutical industry limited, Ilorin as a case study. This study is divided into five chapter controls which the first chapter focused on the introductory aspect discussing relevant sections such as statement of research problem, important of the study, the objective and limitation of the study. Chapter two focuses on the review of relevant literature on the topic i.e. it considers views od different authors on production planning inventory control. In chapter three, the research methodology used for the project work fully discussed. Questionnaires were used to gather more information also brief history of the organization understudy as well as its organization structure is x-rayed. The questionnaire administrated chapter three is also critically analyzed and present in chapter four. While necessary recommendation and made and conclusion drawn in chapter five.


Title page





Table of contents


1.0 Background of the study

1.1 Statement of the problem

1.2 Objectives of the study

1.3 Significance of the study

1.4 Research questions

1.5 Statement of hypothesis

1.6 Scope of the study

1.7 Limitation of the study

1.8 Definition of terms


3.0 Research methodology

3.1 Historical background of the case study

3.2 Population of the study

3.3 Research design

3.4 Sources of data

3.5 Method of data analysis


4.0 Introduction

4.1 Data analysis

4.2 Interpretation of results

4.3 Testing of hypothesis


5.0 Summary, conclusion and recommendation

5.1 Summary

5.2 Conclusion

5.3 Recommendation






Production is any unique process or procedure designed to transform a set of input elements into a specific set of out put elements. Input elements include land, labour capital and entrepreneurial ability while output elements are goods and services that satisfy human wants. Good and services are viable only if they provide satisfaction to the customers and the simple interior is the only general condition existence manufacture and distribution of goods. It can also be defined as the science and at concerned with the slow of materials in industry and commerce.

As a business function, production is primarily concerned with the transformation or conversion of input resources (raw materials) into finished goods. It can be said to be the relationship between factors of production (i.e. land, labour and capital) and a given output.

Planning is defined as the first and perhaps the most important function at management. The essence of planning events. Planning goes beyond attempting to attain dstated organization objective. It involves the development of strategy and procedure required for effective realization of the entire plan. The most basic function of the management functiosn is planning and it involves selection form among alternatives future causes of action for the enterprises as a whole. If production is well planned. Thus adding to the attainment of the whole organizational objectives, planning have finished the standard of control.

Inventory on the other hand is an important factor in the achievement of an organization overall objective. Inventory refers to any stock on items within the productin system or in the operation of the business. In operation management, inventory refers to resources that remain idlge in anticipation of satisfying a future demand for it. The state of processing one is likely to see in a factory but all the human resources maintained but not currently used by an organization in order to meet anticipated dimand for its product or services. According to Monk (1977) inventories are one of the major assets of most firms ranging from perhaps 25% to 75% of their current assets. This depends on firms or types of industry actually next of plants, buildings and equipment, inventories often from bulk of assets value of an organization, which requires large amount of investment and capital cost of maintenance.

Control is a process that guide activities towards some predetermined goals. Control is the managerial ability that helps to ensure acquisition and use of the enterprise resources and achievement of its objectives. It involves a comparison against some previously established standard and then taking corrective action when an unacceptable deviation occurs.

Production planning is the function of management concerned with deciding what production facilities are required, how these production facilities should be laid out in the space available for production and how they should be used to produce products. It will be seen that the function has two main parts. First, it is concern with routing or planning the sequence of work tasks that have to be carried out to complete products. And second, it is concerned with layout or planning the spatical relationship between the places were work is done.

Production planning inventory control functions in general include the planning itself, taking strategic decision areas relation to and setting up device(s) to check and direct any deviation that may want to occur during the process, large amount of investment and capital cost maintenance of the productive system, quality control, product objective and setting in motion of applicable corrective works as expected. All these will have to be put in place through careful production planning and inventory control.


It has been observed that majority of the manufacturing companies in nigeria do not carryout production planning and control more complex and this has made it difficult to achieve the expected result. These failures, which may be due to unavailability of fraud labour, shortage of raw materials, lack of managerial ability etc. will be research into.

Problems such as stock high capital tied on inventory damages and breakages, pilterage, stock out and buffer stock can be easily avoided when one effective and efficient inventory control system is in place.

No matter how prosperous a company may be inventory control and planning requires a professional expertise.


This study is being carried out to achieve the following objectives.

i. To examine the problems that production department

ii. To analyze how effectively and efficiently the company utilizes the resources at its disposal.

iii. To analyze how inventory should be controlled in order to guide against stock out so as to meet production level.

Therefore all these will be examined so as to formulated the best model for the operation of manufacturing company in Nigeria with particular reference to TUYIL PHARMACEUTICAL INDUSTRY LIMITED, ILORIN


Upon the completion of the study, the benefits listed below are expected to be derived.

⦁ The study will add to the research previously down these probe areas.

⦁ To identify the challenges faced by production personnel in the course of manufacturing the desire output

⦁ To achieve a smooth and economical operation of the production distribution system.

⦁ The study will finally educate organization and the general public on the importance of production planning and inventory control.


The research study will specifically focused on the production process ways in which the company manages its inventory system to enhanced continuity and all other activities involve in the conversion process till where finished products are stores in readiness for dispatch to customer.


This study is divided into five chapter control which the first chapter focused on the introductory aspect discussing relevant section such as statement of research problem, importance of the study, the objective and limitation of the study.

Chapter two focused on the review of relevant literature on the topic i.e it consider views  of diffeent authors on production planning and inventory control, role of inventory control, production system and its types and also reasons for carrying out inventory was looked into.

Inventory control method of cost of inventory is also elaborated. Also, different method of material sprcing are also discussed.




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