(research) work is titled “Effect of Materials Management on resource
utilization in Organization”. The researcher carried on investigation to
determine the impact of effect of
materials management on resource utilization in organization as it affect
organization’s productivity and output in the field of resource control and
management. The researcher went further to talk about the side effect of lack
of adequate materials and resources used in industrial or manufacturing
situation and the consequences it has placed the country at large. The
researcher drew up questionnaire and administered them on forty six (46) staff
of the company (Senior and junior staff). Only closed –ended questions were
used in designing the questionnaire. Thus the questionnaire method was used in
gathering the relevant data and information needed for the study. The
researcher formulated hypothesis which comprises of Null hypothesis (HO) and
hypothesis (Hi). The data used for the study were gathered and presented in
tabular form using simple percentage method. Means while, the hypothesis
formulated for the study were tested using chi-square (X2)
distribution method. Finally, the researcher summaries the study, drew
conclusion with respect to what has been discussed in the previous chapters and
proffered recommendations among which state that, “management of an
organization should be committed to their role and carry its people along.
page - - - - - - - - - - i
page - - - - - - - - - ii
page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vii
of content - - - - - - - - - viii
1.1 Background of the Study - - - - - 1-4
1.2 Statement of the Problems - - - - - 5
1.3 Objective of the Study - - - - - - 6
1.4 Statement of Hypothesis - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope of the Study - - - - - - 8
1.8 Historical Background of the case Study - - - 8-9
1.9 Definition of Terms - - - - - - 10-12
2.1 Conceptual Definition of Material Management - 13
2.2 Meaning of Organization Resources - - -- 14
2.3 The Significance of Materials Management - -- 14-15
2.4 Functions of Materials Management - - -- 16-26
2.5 Material Handling - - - - - - -- 27-34
2.6 Materials Flow System - - - - - - - 34-36
2.7 Materials Management Strategies - - - - - 36-40
2.8 Determination of Materials Needs - - - - - 40-42
2.9 Definition of Production Control - - - - - 42-43
2.10 The Role of Production Control in Organization - - - 44-45
3.1 Research Design - - - - - - - - 46
3.2 Research Population - - - - - - - 46
3.3 Sample Size and Sampling Techniques - - - - 47
3.4 Method of Gathering Data - - - - - - 47
3.5 Justification for the Method Used - - - - - 47
3.6 Method of Data Analysis - - - - - - 48
3.7 Justification For the Instrument Used - - - - 48-49
CHAPTER FOUR: DATA PRESENTATION
4.1 Data presentation and analysis- - - - - - 49
4.2 Test of hypothesis - - - - - - - 56
CHAPTER FIVE –
SUMMARY OF FINDINGS, CONCLUSION RECOMMENDATION
5.1 Summary of finding - - - - - - - 60
5.2 Conclusion - - - - - - - - - 61
5.3 Recommendation - - - - - - - - 62
5.4 Limitation of the study - - - - - - - 64
References- - - - - - - - - 65
Appendices - - - - - - - - 67
OF THE STUDY
research work is titled the Effect of Materials Management on resource Utilization
in Organization. A case study of 7up Bottling Company PLc Kaduna.
(1998) said that the wealth of any country is measured by its Gross National
Product i.e the output of goods and services produced by the nation in a given
time. He further defined materials as those physical objects i.e something we
can touch, feel or see. Services are the performance of some useful function
such as banking, medical care restaurants, clothing stores, or social services.
But that the source of wealth of any country is measured by the amount of goods
and services produced. A production process is needed to transform our resources
into useful goods. Production takes place in all forms of transformation such
as the transformation of resources to manufacture useful products.
are many stages between the extraction of resource materials and the final
consumer product. At each stage in the development of the final product, value
is added. Thus, creating more wealth. Japan is a prime example of this, it has
very few national resources and buys most of the raw materials it needs.
However, the Japanese have developed one of the wealthiest economy in the world
by transforming the raw materials they purchased and add value to them through
manufacturing. To get value out of our resources, we must design production
process that will make products most efficiently. Once the process exist, we
need to manage their operation so they produce goods more economically.
Managing the operation means planning for and controlling the resources used in
the process such as labour, capital, equipment and materials. They are all
important but the management plans through effective flow of materials. The
flow of materials controls the performance of the process. if the right
materials in the right quantity are not available at the right time, the
profitability and even existence of a company, will be threatened.
(1993) defined materials as all physical items used during production process.
they includes not only the parts and raw materials that becomes the finished
goods, but also the physical items needed to support the production process
such as fuel, lubricants, tools, machinery, forms and anything else that is
purchased, moved, stored or shipped.
(2001) defined management as the act of getting things done through people by
planning, organizing, directing, coordinating and controlling.
(1993) defined materials management as the activity that is concerned with
purchasing, storing, and movement of materials during production and with the
distribution of finished goods.
(1993) said that, materials management is an aspect of industrial management
which is concerned with all activities that may include production control,
inventory, purchasing, expenditure, traffic, materials handling, welfare,
receiving, shopping, scrap and surplus, disposition and customer services.
(1995) defined materials management as the process by which goods and services
that an organization needs to achieve its objectives of buying, storage and
movement of materials are required.
(1996) defined materials management as the management process which integrates
the flow of supplies into, through and out of an organization to achieve a
level of services that ensures that the right materials are available at the
right place at the right time, at the right quantity, right quality and at the
(1998) said materials management is a coordinating function responsible for
planning and controlling materials flow, in order to maximize the use of the
formed resources and also provide the required level of customer services.
(2007) defined materials management as an integrated management approach to the
planning, purchasing ware housing, storekeeping, allocation and movement of
needed materials from one place to another. He further said that its also, the
management of goods and materials that involves purchasing, storage, control
(2008) defined materials management to incorporate a broad set of activities
related to acquiring, moving or handling, storage and control or monitoring of
materials, thus, purchasing, distribution and other supply-chain management
duties could be included.
OF THE PROBLEMS
research work focuses on the Effect of Materials Management on Resource Utilization
in organization. Using seven up bottling company Plc Kaduna as a case study.
organizations lays little emphasis on the need to adopt effective materials
management techniques in their firms. This has resulted to high level of store
insecurity, high cost of production and high level of customers
dissatisfaction. Hence, it is because of this phenomenon that this study tries
to examine the effect of material management on resource utilization in
study examines the following problems:
Does materials management affects the
utilization of resources in seven-up bottling company plc Kaduna
Does materials management affect the
profitability of organizations
OF THE STUDY
determine the effect of materials management on resource utilization in seven
–up bottling company plc Kaduna
determine various materials management problems facing organizations.
To ascertain and analyzed the various ways by
which effective materials management technique can impact on the firm’s
following hypothesis will guide this study
is no significant relationship between materials management and resource
utilization on production organization
is significant relationship between materials management and resource
utilization in production organization.
OF THE STUDY
researcher believes that the outcome of this study will be useful to both
management and employees of process and manufacturing organizations in the
will also be important and useful to other industrialists and services rendering
organizations at large.
findings of this study will provide useful information to production and
operations officers, students and researchers. Thus, the main significance of
this study, is for the partial fulfillment of the requirement for the award of
Higher National Diploma (HND) in production and operations management and to
increase the researchers knowledge and understanding on the subject matter.
research will also serve as a reference point for further related
OF THE STUDY
to the wide nature of the topic and the nature of the organization used as a
case study, this research work was limited to only seven-up bottling company
plc. Kaduna particularly, the store department of the organization. Thus, the
study sourced primary data from the staffs in the store department of the
organization. Also, the study will consider relevant related literatures to
provide the appropriate conceptual base for the study.
BACKGROUND OF THE CASE STUDY
–up Bottling Company Plc is one of Nigeria’s leading carbonated soft drink
(CSD) manufacturers was founded by Mi”. Mohammed El-Khalil, a Lebanese, in the
year 1959. The Company commenced operation on October 1, 1960, which coincided
with Nigeria’s Independence day, with
just one plant in Ijora-Lagos (now the administrative head office). Records
showed that on that same day, a total of 14 cases of seven-up flavour were
company was quoted in the Nigerian Stock Exchange and went public in 1984. Through
hard work and determination, the company has been able to expand its plants and
distribution networks to all parts of the country, its greatest period of
growth actually started in the early 80’s with the opening of Ibadan plant
(1980), Ikeia plant in 1981, Kano plant in 1985 and Aba plan in 1989. The
acquisition of John Holt soft drinks brought Kaduna plant to limelight in late
1989. The company later opened Benin plant in 1996, Ilorin plant in 2000 and
Enugu plant in 2002.
The company’s vision
statement is “To be the most admired and innovative company in
Nigeria by the year 2012”.
The mission statement is
“To refresh and inspire a youthful lifestyle”.
Company produces 7-up, Pepsi, Mirinda orange, mirinda soda, mirinda lemon,
mirinda fruity, mirinda tonic and teem lemonade. As at today, the company has
its head quarter in Beirut and operational based in three African countries
namely, Nigeria, Tanzania and Ghana.
activities of the Kaduna plant is headed by the General manager and coordinated
under five major sections namely:
1. Operations Department: This
can be seen as the largest unit in the organization. Headed by the factory
manager, it encompasses three departments: Quality control, production and
2. Administrative Department: This
department handles all administrative matters. It encompasses the following
departments; accounts, Human resources, computer (Management Information system
3. Marketing Department: This
department is charged with the responsibilities of managing sales,
distribution, merchandising and product warehousing. It also handles marketing
issues of both the plant and its depots. It encompasses the following
departments: marketing, sales, and depots.
4. Fleet Department: This
handles the repairs of plant. Sales, distribution and merchandising vehicles.
It is headed by the transport engineers and also handles the transport
5. Inventory Department: This
department handles the aspect of plant material inventory. It encompasses the
stores and warehouse departments and is headed by the inventory manager.
These are items which are to be process through production process to obtain
the desired finish product.
is the scientific utilization of resources which includes, materials, machines,
method, money and men to accomplish a task. Its embrace planning, organizing,
directing and controlling.
Materials management: it
is concerned with the flows of materials to and from manufacturing department,
it can be described as a coordinating function responsible for planning and
controlling of materials flow. Materials management is an aspect of grouping
together under some of finished products, some of these activities may include;
purchasing, inventory control, expenditure, warehousing and receiving
resources are divided into human and materials resources, the human resources
is the man-power that controls the activities of the organization while
material resources are the assets or wealth of the organization that is put
into use in achieving the organizational aim.
is a systematic ordering of position which determines chains of command or it
is an organized group of people working together towards a common ideal and
aspiration of the group and putting effort together towards achieving an
make the best use of resources effectively.
is a place where raw materials and finished goods are kept.
is the transformation process in which raw materials are converted into
finished goods that gives satisfaction to the final consumer.
is ensuring that things are been carried out with the plan which has to be
adopted, the orders which has been given and the laid down principles.