Abstract
Purpose : This study aims to model the relationship between production planning and customer satisfaction in selected table water companies in Edo State. The production planning strategies analysed in this study were demand forecasting, aggregate planning, capacity utilizations and quality control; with the following dimensions in focus: product quality, product brand, availability of products, lead time and satisfaction with sales process.This study adopted a cross-sectional survey design approach. The population for this study comprised all registered table water companies in Edo State (527) and a random sample of two hundred (200) customers of table water companies in Edo State. Two (2) different sets of questionnaire were distributed to two hundred and twenty seven (227) production managers of Table water companies in Edo State and two hundred (200) randomly selected retailers of table water companies. Data collected was analyzed with descriptive statistics and then Structural Equation Modelling (SEM) software – Smart PLS (Partial Least Square) was used for model estimation. The study found out that production planning in Table water companies in Edo state does not have a significant influence on customer satisfaction. It was also discovered that out of four production planning methods (aggregate planning, capacity utilization, demand forecasting and quality control) only one (aggregate planning) had a positive and significant influence on customer satisfaction as it pertains to product quality, product brand, satisfaction with sales process, lead time and availability of products. This study presents an attempt to implement production planning techniques in table water companies in Edo state, Nigeria, with a bid to improve customer satisfaction. Keywords: Production planning, Customer satisfaction, Table water companies, aggregate planning. DOI : 10.7176/EJBM/11-17-08 Publication date :June 30 th 2019
Highlights
The specific objectives of this study are to examine the extent to which aggregate planning affects product quality, product brand, availability of products, satisfaction with sales process and lead time,evaluate the extent to which quality control affects product quality, product brand, availability of products, satisfaction with sales process and lead time, assess the extent to which demand forecasting affects product quality, product brand, availability of products, satisfaction with sales process and lead time, investigate the extent to which capacity utilization affects product quality, product brand, availability of products, satisfaction with sales process and lead time and to determine if there is a significant relationship between production planning and customer satisfaction in table water companies
This study empirically investigated the relationship between production planning and customer satisfaction in table water firms in Edo State
It further concludes that aggregate planning has a stronger significance to customer satisfaction compared to other production planning innovative techniques as it significantly influences the quality of table water produced, its brand, its availability, the lead time and satisfaction with sales process
Summary
According to Gallo (2014), it is a lot easier to maintain an existing customer than getting a new one It is this notion that drives pioneer table water companies to fight hard to remain relevant in the system and retain their existing customers. Despite this d rive to maintain existing customers and reach out to new ones, there are still some salient issues hampering the flow of products in the pure water business. These issues include delay in product delivery, low availability of products, poor quality of products, and dissatisfaction with sales process among others.
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