THE IMPACT OF MATERIAL MANAGEMENT ON ORGANISATION PRODUCTIVITY (A Case Study of Nigerian Bottling Company Plc, Ilorin)
The proposal is based on the impact of materials management in organization productivity. these project need to be studied in order to bring about awareness at least on the side of the research user and to adopt to the laws given by the manager or management to the workers. Material management can be defined as a science based art which deals with the planning, organization, controlling and directing of the supply and processing actives of materials in an organization. The chapter one of this research work will be basically on the introduction of the case study, statement of the problem, objective of the study, significance of the study, scope and limitations of the study and defined of the terms. The chapter two shall look at the literature review, historical background of the study, source of raw materials, factors affecting the size of raw materials field in store, the male or buying decision, cost associated with raw materials, the inventory management system and the function include in material management. Chapter three of the project shall be looking on the research methodology and review of the case study, research design, population size, research methodology used and method of data collection and analysis. Chapter four of the project will focus on the data analysis through single method and testing of hypothesis. Finally, the chapter five of the project will look into the summary of the findings, conclusion and recommendation of the data.
TABLE OF CONTENT
Title page i
Table of content vi
1.1 General introduction 1
1.2 Statement of the problem 2
1.3 Objective of the study 2
1.4 Significance of the study 3
1.5 Scope and limitation of the study 4
1.6 Definition of the terms 4
CHAPTER TWO; LITERATURE REVIEW 9
2.1 Historical background of the case study 10
2.2 Source of raw materials 12
2.3 Factors affecting the size of raw materials held in store 13
2.4 The make or buying decision 16
2.5 Cost associated with raw materials 17
2.6 The inventory management system 18
2.7 Function included in material management 23
3.1 Research methodology and overview of case study 25
3.2 Research Design 25
3.3 Population Size 26
3.4 Research methodology Used 26
3.5 Method of data collection and analysis 27
1.1 Data analysis through single method 30
5.1 Summary of the findings 39
5.2 Conclusions 40
5.3 Recommendations 41
1.1 GENERAL INTRODUCTION
Material management in an organization is all embracing than any other form of management because of the diverse activities involved such as:
3. Inventory control
4. Production control
5. Quality control
8. Inward and out ward inspection
9. Marketing or sales.
Therefore, material management is the act of planning, organizing, controlling and directing of the supply and processing activities of material in an organization.
The impact of material management on organization productivity is unavoidable either positively or negatively, this. In production, material must be managed properly on order to avoid any the seventy five parent (759) of the entire operation and the money spent on material alone range between 60-65% of the company total arrestment. Therefore, the importance of material in an organization is very obvious and should be given proper attention.
1.2 STATEMENT OF THE PROBLEM
For the purpose of this research work, there are lots of limitation of problem of that lingered the project to be carried all effectively.
Therefore, because we were approaching the end of the National Diploma (ND) there is time constraint and there was not enough time to carry out the project work as necessary.
Also, the research of this project is limited to coca-cola plant at Ilorin; although the company has various plants all over the countries and even the work at large. Therefore, the information supplied in this project milled to business strictly to the economic environment.
1.3 OBJECTIVE OF THE STUDY
These are the objective of the study that shows the impact of material management on organization productivity. It shows how a manufacturing organization can survive through the effective management of materials. Among the crucial objective of the study are:
2. To examine how raw materials can be made available directly or indirectly form abroad or within the country.
3. To look at ways and sub- strategies that can be adopted in order to develop alternative means of getting raw materials so as to guarantee availability when it is needed.
4. To identify the role of material control in effective management of raw materials such that material can be procured and stored at an economic quality that guarantee a fair price and right quality.
5. To take note adequately of the role of machine utilization in the management of raw materials an order to reduce scrap rate.
1.4 SIGNIFICANCE O THE STUDY
The study lies on how alternative means of getting raw materials can be embarked upon to make possible its availability when need and also to find the solution to the problem of absolve dependence on foreign sources.
The storage of raw materials and economically producers can plan adequately against higher than maximum stock lever and lower than minimum stock level which can bring about some negative implosion on the business capital.
The study also arm at suggesting and deciding strategies.
That can be used and the serried of the manufacturing industry through efficient materials which will lead to economic boost.
1.5 SCOPE AND LIMITATIONS OF THE STUDY
The project will focus on the relevant aspect of materials management in production and it limitation to its relationship with the current situation of our economy. It will cover areas like sources availability and utilization of raw materials.
In the course of study, the research is limited to Nigeria bottling company Ilorin and in searching for the collection of data, only workers in department that have relationship with the project topic will be adequately unrolled such as production department, store department, purchasing department quality control and the account or administer department.
1.6 DEFINITION OF THE TERMS
Management can be defined as a process of planning contorting, directing, motivating organizing and budgeting in order to active a particular goal.
Management can also be defined as the process entailing Responsibility for effective and economic planning and regularizing responsibility of the operation of an enterprise in fulfillment of a given purpose or task.
2. RAW MATERIAL
Raw material can be defined as a good that has not been committed to production on a manufacturing firm. Raw material can also be defined as the inputs of an organization production process aimed at conversion from raw materials stage to finished goods.
3. AN ORGANIZATION
Organizations are group of people with ideas and researches to achieve organization goal.
Broadly, an organization can be defined as a process of identifying and grouping the work to be performed, defined and developing responsibility and authority and establishing relationship for the purpose of enabling to work together an accomplishing the objectives of an organization effectively.
Productivity can be defined as the amount of output per unit of input (labour, equipment and capital); there are many ways of measuring productivity. For example, productivity in a factory might be measured based on the number of hours. It takes to produce good while in service sector, productivity might be measured based on the avenue generated by an employed decided by his/ her salary.
Production can be defined as the creation of utility. Also production can be defined as the process of manufacturing or transforming raw materials into finished goods for the use of consumers.
Purchasing can be defined as the process of buying goods and services of the right quality in the right quantity at the right price and the right time from the right supplier or source to be delivered at where and when needed.
Price may be seen as the point at which exchange takes place- the point at which the amount for which the seller is writing to sell his product or service coincides with the amount that the buyer is willing to pay for the benefits offered by the product or service.
Inspection is the process of ascertaining whether or not the goods delivered are of the specified quality.
9. STOCK CONTROL
Stock control represents the clerical control of the movement of materials into and out of the stores, and of the level of the stock in the stores at all times with due regard to the economic in storage.
10. MATERIAL MANAGEMENT
Material management is the act of planning, organization, controlling and directing of the supply and processing activities of materials in an organization.
11. MATERIALS HANDLING
Materials handling is the overall means, method, approach and techniques used to effect the transfer and storage of terms.
12. RIGHT QUALITY
Right quality means meeting an acceptable standard of performance by the material in order to meet the specification set out.
13. RIGHT QUANTITY
Right quantity refers to the value or amount of material that can be most economically of supply with minimum investment in stock.
14. RIGHT PRICE
Right price means buying at the best price that commensurate with quality and service required and the subsequent costs that may likely be incurred and above all, buying competitively and wisely.
15. RIGHT TIME
Right time means that supplies should be received not too early as to increase cost of stock holding neither unnecessarily nor too late as to cause avoidable delays and stoppages in production operation.
16. RIGHT SOURCE
Right source is the selection of the right source or supplier based on his willingness and the ability to fulfill the specified requirements of the purchase contract..