management is a strategy for achieving organizational productivity. The
researcher started this research work by introducing the subject matter,
background of the study, statement of the problem, objective of the study,
significance, and scope of the study were highlighted also the researcher
formulated hypothesis which form the basis for the research. In the second
chapter the researcher reviewed the work of various authors on the subject
matter, the concept of management, the
significance of material management concept, the material flow system, basic
materials functions determination of materials need material cost reduction
strategies were discussed in the chapter. The method used in carrying out the
research was discussed in chapter three, the method of gathering data, sampling
and sampling techniques, justification of method used and method of data
analysis. The data gathered in chapter three was analysed in chapter and
hypothesis formulated in chapter one was tested using chi-square. Lastly the
researcher draw a summary and conclusion for the research and comes up with a
recommendation among which the researcher recommended that an adequate storage
facility conducive for modern material, management should be provided to help
the store perform it service function effectively.
TABLE OF CONTENTS
page - - - - - - - - - i
page - - - - - - - - ii
Declaration - - - - - - - - iii
Dedication - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vii
of Contents - - - - - - - viii
1.0 Introduction - - - - - -- - 1
1.1 Background of the study - - - - - 1
1.2 Statement of the General Problem - - - 3
1.3 Objective of the study - - - - - 4
1.4 Statement of the Hypothesis - - - - - 5
1.5 Significance of the study - - - - - 5
1.6 Scope of the study - - - - - - 6
1.7 Limitation of the study - - - - - 6
1.8 Historical background of the case study - - 7
1.9 Definition of terms - - - - - - 9
CHAPTER TWO- Literature Review
2.0 The concept of material management - - 12
2.1 Material management defined - - - - 12
2.2 The significance of material management
2.3 The material flow system - - - - - 18
2.4 Basic material function - - - - - 20
2.5 Determination of material needs - - - 23
2.6 Material cost reduction strategies - - - 25
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design - - - - - - 30
3.2 Research population - - - - - - 30
3.3 Sample size and sampling procedures - - 31
3.4 Method of gathering data - - - - - 31
3.5 Justification of method used - - - - 33
3.6 Method of data analysis - - - - - 33
3.7 Justification of investment used - - -- 34
CHAPTER FOUR: DATA PRESENTATION
4.1 Data presentation - - - - - - 35
4.2 Data analysis - - - - - - - 35
4.3 Test of hypothesis - - - - - - 45
CHAPTER FIVE - Summary Of Findings,
5.1 Summary of finding - - - - - - 47
5.2 Conclusion - - - - - - - 48
5.3 Recommendation - - - - - - 49
Bibliography - - - - - - - 52
OF THE STUDY
need for the production function is to make up with the growing complexity of
industrial needs has brought about the concept of material management.
management has expanded the traditional scope of purchasing and procuring to
cover the entire material management process. Thus Lee and Dubler (1983) define
material management as a confederacy of traditional material activities bound
by a common idea, and of intergraded management approach to planning.
Acquisition, conversion, flow and distribution of production material from the
raw material state to the finished product state.
concept also provide for delegation of responsibility and authority with
regards to procurement and supply of material. The concept also recognizes the
importance of the principle of accountability by providing a management
approach which is responsible for all decisions.
material management, there is relatively recent concept much through has been
given to it particularly since World War II, when industries all over the world
were awoken to the fact that tremendous economies could be achieved by
sufficient material management. The concept is today relevant to business
organization because they will have a centralize body responsibility for buying
with the overall advantage of procuring standard material at possible bulk.
Disco unit and obtaining special vender relation. It means that spending
valuable money is in the heart of people who are trained and competent for this
it is found that material are expensive and in order to reduce overall costs,
it require the close cooperation and co-ordination of material and other user
department to ensure that material ordered are made to arrive only when they
are needed, the benefit of this approach is that of cost reduction and
maximization of the company’s profit.
the growing need for efficient operation of material management is increased in
OF THE GENERAL PROBLEM
earlier indicated, the significance of material management has been recognized
by most industries in Nigeria,
now a days, in most companies in Nigeria, attempts have been made
towards operating on intergraded approach to their material problems thus, one
often finds in such companies such position. As supplier materials manager,
material controller etc yet often is critical analysis of this system of
operation. One often discovers that the actual practice of material management
is not ready carried out. More often than this material management functions
are handled by any individual without acquiring the necessary skills, giving
the impression that even accountants administrators, engineers and lawyers etc
have the knowledge to perform the material management function. This is wrong
as they do not have at their disposal all the knowledge and expertise they
acquired to fulfill there duties effectively. There is also ignorance on the
past of most top management of the maximum benefit that will be derived from
applying the concept into an organization to maximize the company profit.
planning is another area of problem which entails effective and efficient
requisition handling instruction of the finished products.
OF THE STUDY
motivating factor that led the researcher to choose the research topic is that,
apart from the project been one of the prerequisites for the award of higher
diploma in production and operations management, the researcher has always seen
the essence of material management in an organization.
couple with the experience the researcher had during her industrial attachment
training motivated her towards writing this project. As a student who really
wants to be versed, the researcher fills that it is an opportunity for her to
research into the field of material management and to see herself the cartages
in the field.
it is hoped that the research will serve as a guide to fellow student who would
also like to make further research in this field, and to benefit the school by
keeping it in the library for reference purposes, in view of the above the
researcher has decided.
OF RESEARCH HYPOTHESIS
hypothesis is a conjectural preposition, an uninformed intelligent guess about
the solution to a problem. It is an assumption or proposition whose validity is
to be established. For the purpose of this study, the following hypothesis is
H0: the application of material management techniques dose not increase
the profitability of an organization.
H1: the application of material management techniques increase the
profitability of an organization
OF THE STUDY
significance of the study is to benefit both the research and readers, for it
makes for a very interesting and educational reading, since the study will
attempt to make every thing in detail which will attract readers and future
research hypothesis and date analysis will also enable organization to
determine whether or not effective application of material management technique
increase the profitability of an organization.
OF THE STUDY
management being a complex and dynamitic concept has a wide area of coverage so
it is obvious that research of this nature cannot hold without problem. As such
the work limited to the area. the researcher face are crucial or relevant to
the problem under investigation that is effective material management as a tool
toward organizational profitability in manufacturing organization.
OF THE STUDY
study of this nature will normally entails investigation into a variety of
issues to be able to achieve a comprehensive study of the problems, a lot of
constraint would be encountered in form of collection of data, lack of adequate
information and scarcity of researchers infrastructures. As a result of this,
certain limitation will be imposed on the are to be covered.
and foremost, inaccessibility of data (collection of data) to provide the
necessary information were difficult to acquire, especially the financial
figures, some of the employees who co-operated were not in better possession of
the facts and figures necessary in this project.
limited area of study, there are many section in the organisation of all forms
of materials, however, the researchers intension is to concentrate only on the
materials store for the project. This project apparently pose serious
limitation to this project and the researcher has to work with data that are
there are hardly many writers on the subject matter, therefore text books on
this topic are scare, so the information was gathered from books of accounting
and purchasing, internet. Also due to the nature of the co-operation NNPC
(KRPC) have adopted strict security measure to non-organisation staff following
the trend of events which posed problem to this write up.
the study will be confirmed to KRPC who do to have a library section which
would have ease the researcher by providing an information containing its
comprehensive details of its operational background from inception.
there were difficulty of securing valid personal or confidential information
and the uncertainty of receiving adequate number of responses to represent satisfactory
BACKGROUND OF THE STUDY.
The Kaduna refinery and
petro-chemical company (KRPC) was commissioned in 1980 as NNPC of wholly owed
by limited liability Company of NNPC in the 3rd number 1998,
November the company and allied matter act of 1968. It is the third refinery in
the country. It was established to cope with the growing demand for petroleum
product especially in the Northern part of the country; the refinery was design
to process both Nigeria
and imported crude oil into fuels tubes product. In December 1985, the fuel
section of the refinery was successfully bottle needed form 50,000 BPSD to
BSPD. In march 1988, the 300000 mt per annum petrol-chemical plant was
commissioned. The petrol-chemical plant, being a demonstration plant of the
refinery devices its entire raw materials including utility supplies from the
refinery in an attempt at commercialization of NNPC in the back year,(refinery
and the petro-chemical plant) a form a single subsidiary company of NNPC
Nigeria national petroleum company known as the Kaduna refinery and
petrol-chemical company limited (KRPC) as it is today, KRPC occupies an
equipment to approximately 1.8km square, KRPC is made up to two main division namely:
Director who report to the managing director. However there are department that
report directly to the managing director and are regarded as the managing
heading the department report to their respective executive directors and those
under the managing director report directly to him. The products commonly
associated with the Nigeria
national petroleum corporation are petrol, kerosene, diesel and aviation, these
help to power economy as fuels for the transportation sector so critical in our
daily social-economy interaction.
oils from the KRPC are essential energy input for industrial production, supply
has steadily increase overtime, thereby reducing down time and increasing
industrial capacity utilization for power generation for domestic use,
industrial small scale production, among others.
The refinery primary produces the
following petroleum product.
LPG :- Liquid petroleum gas
Black oil production of industries
LAB- Linear alky/benzene production for the
manufacturing of liquid detergent and pharmaceutical production
Lube base oil
refinery designed process was carried out by Chiyoda chemical engineering and
is a process of achieving organizational objective through an efficient utilization
of materials and human resources.
quality of goods supplies retrieved into a stock house and being held for
Ware Housing: This is basically designed to bridge the gab
between the mass production of the producer and the batch requirement of the
Quality Control: A
system of programming and coordinating the effort of the various groups in an
organization to maintain or improve generally at an economical level, which
allows for customer satisfaction
the activity directed to secure by legal means, the material supplies, service
and equipment in the operation of an enterprises.
the continually mounting of orders place with the supply to see that they have
receive it at the time is already planed for their use.
Materials which are excess of a firms operational requirement of the excess
over the normally requirement.
firm ability to earn a profit and potential for future earning.
optimal organization relationship among time determination, production,
efficiency, satisfaction, adeptness and development.
of production relative to impact of human and other resource.