and objectives of this work is to examine “The Effect of Materials Management
Techniques on Production Planning Process with reference to United
Nigeria Textile Plc (UNT Plc), Kaduna...
Materials management is open to so many problems in industrial sector in
Nigeria, especially when theory and practice are compared. Among the problems
facing materials management in Nigeria, which is also peculiar to the company
which the project is based on are: Multiplication of materials management
principles, unprofessional/unskilled personnel, given the task of material
manager. The writer looked at the opinions of different notable authors and
academic writers on the topic that are related to the subject matter. It was
deduced that those academic writers are of the same view as far as materials
management is concerned. In this research study, I will attempt to look at the
The purpose of the
study, historical background, statement of the problem, limitation and scope of
the study, rational for the study.
Literature review on
materials management, production planning, materials control, purchasing, stock
ordering and types of stock taking, benefit of stock taking.
methods and approach used, justification for approach used.
analysis of data, and also test of hypothesis.
Summary of finding,
conclusion and recommendations.
Page - - - - - - - - - - - 1
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Acknowledgement - - - - - - - - v
- - - - - - - - - - - vi
of Contents - - - - - - - - vii
1.1 Background of the Study - - - - - -
1.2 Statement of the Problem - - -- - - -
1.3 Objectives of the Study - - -- - - -
1.4 Statement of Hypothesis - - - -- - - -
1.5 Significance of the Study - - -- - - -
1.6 Scope of the Study - - - - - - - -
1.7 Limitations of the Study - - - - - - -
1.8 Historical Background of UNT
PLC - - - - - -
1.9 Definitions of Terms - - - -- - - -
2.1 Definition of Materials Management -- - - -
production planning -
2.3 Materials Control - - - - - - - -
2.4 Purchasing (Procurement) - - - - - -
2.4 Stock Ordering - - - - - - - - -
2.5 Types of Stocktaking - - - - - - -
2.6 Benefits of Stocktaking - - - - - - -
3.0 Introduction - - - - - - - -
3.1 Research Design - - - - - - - -
3.2 Research Population - - - - -- - -
3.3 Sample Size and Sample Technique - -- - -
3.4 Methods of gathering Data - - - - - -
3.5 Justification of method used - - - -- - -
3.6 Methods of Data Analysis - - - - - -
3.7 Justification of Instrument used - - - - -
PRESENTATION AND ANALYSIS
4.1 Data Presentation - - - - -- - - -
4.2 Data Analysis - - - - - - - - -
4.3 Test of Hypothesis - - - - - - -
CHAPTER FIVE - Summary
Of Findings, Conclusion & Recommendation
5.1 Summary of Findings - - - - - - -
5.2 Conclusion - - - - - - - - -
5.3 Recommendations - - - - - - - -
References - - - - - - - -
management is an integrated management approach to the planning, purchasing,
ware housing, stock keeping allocation and movement of needed material from
point of source to user department. It can also be defined as the process of
management of material which involves purchasing, storage control and
management is a relatively new discipline. The 20th century's rapid
growth and the significant industrial development has played a major role in
the relationship and effective management of the traditional 5Ms which are:
Machine, material, men, money and management.
famous industrial revolution made material(s) the largest elements cost in any
wake of the 20th century many firms had recognized the importance of material,
and several material activities like purchasing, ware housing, stock control
and distribution carried out by the organization.
1950 firms have identified the need for effective coordination or integration
of such material activities and material organization tools concept like those
of physical distribution movement, logistic movement and material management as
a means to check, co-ordinate and control the firm's material activities.
there is no clear definition on the area of material management. According to
M.A. Tokunbo (1987) defines it in the context of store and material control as
compensation for the effective co-ordination of the principle element.
classifying and coordination of stocks
inventory control and stress accounting
house layout and organization
house storage handling and distribution
of materials in store.
these, material management has the duty to apply the most suitable technique in
the most effective way to ensure the minimum total cost consistent with
providing the service required.
American production and inventory control; society (APICS) defines material
management technique and production as the grouping of management function
related to the complete cycle of material flow from the purchase and internal
control of work in the latter term, traditionally is limited to internal
control of production materials.
examining the whole definition one could easily notice that they are not quite
different from one another only the way of approach and little difference in
terminology. In this respect (material and resource) or material management is
not only limited to buying and storing as many view it but involves also
purchasing, transport and distribution planning and continuous monitoring.
OF THE STUDY
subject matter of this study is the effect of material management technique on
production planning process in United Nigeria Textile Plc (UNT Plc), Kaduna. The
research is meant to be of great importance to various enterprise and
organization wishing to conduct a detailed study into stores and purchasing
material hence, the research aims at identifying the problems associated with
efficient operation in an organization, the research is interested in knowing
the effect of material management technique on production planning process as
practicable in an organization. Due to sophistication in technology coupled
with socio-economic and political instability, production processes face
complex problems that needs to be addressed by management ensuring that materials are allocated and
used in the most efficient and effective manner.
The material management technique on production
is also to identify problems by guiding against supb-optimization of the
material management techniques in production planning processes, for this the
researcher suggests that which will achieve optimal result quickly, cheaper and
materials are the live-wire of every organization be it public or private hence
no organization can survive without material, its availability, distribution
and transportation and delivery at the right amount and quality is paramount.
OF THE PROBLEMS
United Nigeria Textile Plc (UNT Plc),
is faced with problems in relation to utilization of the effect of material
management being the utmost thing that are needed to be utilized effectively.
The problem facing material management especially United Nigeria Textile Plc (UNT Plc),
are mainly under stocking or over stoking of material, stock obsolescence
breakage and the economic order quantity.`
the fact that the impact is to be felt positively in the society by making
themselves’ productive in every area of inputs.
despite the effect observed there have been general apathy, ignorance and lack
of interest by many people and the government.
OF THE STUDY
the aims and objectives of this study are:
To assess the impact of material management on
To appraise and further appreciate the
significance of material management in a manufacturing industry.
To identify and ascertain some of the problems
poised by materials management in Nigerian United Nigeria Textile Plc (UNT Plc), Kaduna.
It is also the researcher's desire that this
compilation will be of great help and interest to whosoever uses it to gain
knowledge on issues discussed.
The following hypothesis was
formulated for this study:
management does not have any significant impact on organizational performance.
Management does have significant impact on organizational performance.
OF THE STUDY
A research of this nature will be incomplete
without highlighting the importance of this study.
the researcher as a student aspiring to be a material executive in the future
sees this study as an opportunity to fully investigate into the field of
materials management to see the challenges therein.
the study is needed as a pre-requisite for the award of the Higher National
Diploma in Production and Operation Management (POM).
the researcher has also undertaken the study in order to gather necessary
information and suggest solution to the problem facing materials management in United Nigeria Textile Plc (UNT Plc),
OF THE STUDY
subject matter “Materials Management” has an area of coverage within its
concept, i.e. theory and practice in the private sector. This would also
include purchasing, stocktaking and stock checking of materials.
OF THE STUDY
carrying out this research, certain problems were encountered which in fact
hindered the area of coverage.
The researcher faced the problem of sourcing
for materials for the project.
Time constraint was a factor the researcher
encountered. This resulted in the backlog of the researcher’s class work.
textbooks related to the subject matter also contributed to backlog in writing
Unco-operative and bureaucratic attitude of United Nigeria Textile Plc (UNT Plc), officials
who were reluctant in providing necessary information in writing.
Despite all these constraints, the researcher
was lucky to gather vital information that made the investigation a success.
BACKGROUNOF UNITED NIGERIA TEXTILE PLC (UNT PLC), KADUNA.
United Nigeria Textiles PLC, formally called the United Nigeria Textiles
Limited (UNTL) is located in Kakuri Industrial Area of Kaduna South Local
Government area of Kaduna State.
Cha-Chi-Ming, a Chinese founded it on May 7th, 1964, with some
Nigerians and commenced operations in early 1965. The company started operating
as a finishing plant, importing policy on backward integration in June 1976,
the company immediately acquired and installed its first spinning and weaving
facilities to produce its own Grey Baft from locally grown cotton.
its determination to expand its operation the company acquired controlling
interest in Zamfara Textiles Industry Limited (ZTIL) in 1976, by this, there is
a steady supply of Grey Baft for its highly efficient finishing plant in
Kaduna. UNT. PLC is the only factory capable of producing highly sophisticated
wax prints in the country and indeed the whole of West Africa.
1976, fresh idea of another factor was conceived, so in 1977 its incorporated
Funtua Textiles Limited (FTL) to produce materials different from the
conventional products of Kidnap factory and Gusau factory, the Funtua Textiles
United produces high quality bedspreads, pillow cases and cotton/polyester
fabrics in various designs and colours.
1980, the company bought Norspin in Kaduna from its former owners UAC. The name
Norspin was changed and its is now a subsidiary company registered as unitex
Limited and an associate company named Supertex limited. Unitex Limited is a
spinning plant producing yam for the sole consumption of UNT Plc, while
Supertex limited is a finishing plant producing wax prints for export to ECOWAS
countries and USA with the support and encouragement from business-like
partners such as Northern Nigeria Development Company (NNDC), Nigeria
Industrial Development Bank (NIDB), New Nigeria Investment Limited (NNIL),
Kaduna State Government and the Federal Ministry of Industry. In view of
technological advancement UNT. Plc have embarked on basic technological review
of its machines and equipment through computerization, restructuring and
modernization of its various components units, improved transportation system.
It was scientific approaches to solving environmental problems. It is the first
mill in Nigeria to acquire and install its own effluent treatment plant for
minimizing health hazard and preventing land water pollution.
plc is the largest employers of labour among textiles industries in the country
and the largest in terms of production capacity. It has a total workforce of
15,000. The total install capacity is for ninety six million meters (96m)
finished materials. Currently the company is expanding its factory building to
accommodate additional processing machines for its blocked real wax prints and
finishing department. The expansion of the finishing department will enable the
company to engage in bleaching, dying and finishing of synthetic cotton blend
aims and objectives of the company are to undertake the production and
marketing of textiles commodity. Thus, it is involved by weaving, dying and
printing of textile materials which has helped Nigeria in providing employment
as well as having locally made textiles materials without difficulties and at
cheaper prices compared to imported ones.
OWNERSHIP STRUCTURE OF UNT. PLC
inception the paid-up of capital of UNTL (now UNT.Plc) was N1.4million. The shareholders
of the company are made up of the followings:
individuals from china 49.5%
Plc staff 21.17%
finance corporation (IFC) 7.8%
Nigerian Investment Limited 5.6%
ORGANIZATIONAL STRUCTURE OF UNT.PLC
apex of UNT.plc organization is the board of directors. The shareholders elect
the members and they hold the office for
terms, which are renewable at the expiration of each term. Following by
the managing Director (MD) who implements the board’s policies and decisions
taken at the board meeting on the running of the organization. The company
secretary stands between the board of directors and the managing director.
However, the managing director is accountable to the board, the board are in
turn accountable to the shareholders.
managing director is charged with the day-to-day running of the organization
and assisted by experienced managers who from the nucleus of the management.
There are departments most of which have sections; a senior manager referred to
as assistant general manager (AGM) mans each of the department. The department
comprises of human resources/personnel, sales finance, production and
chart below shows the organizational structure of United Nigeria textiles Plc,
RESEARCH POPULATION AND SAMPLE SIZE
is any group of people or objects, which are similar in one, or more ways and
which from the subject of the study in a particular survey. Sampling is the act
of collecting information by selecting a few from the whole population from
which conclusion can be drawn relating to the whole population.
for the purpose of this research work, the populations are the employees of
UNT. Plc both junior and senior staff. While the sample size is 30 employees
from the organization.
population is very large, random sample will be used in obtaining the
information needed for this research work. Random sampling is the method of
sample selection in which each possible sample combination has an equal
probability of occurrence and each item in the population has equal chance of
being selected in the sample. In view of this, 30 questionnaires ill be
distributed to the sample size, 25 will be given to junior staff while 5
questionnaire will be given to senior staff.
employees will be interviewed personally one from the senior staff and the
other one from the union of staff in the organization.
Management: This is defined as the grouping under one head
all or some of the activities involved in the organization and use of materials
employed from the need stage up to the storage of finished goods.
is defined as the activity directed to securing by legal means, the materials
suppliers and equipment required in the operation of an enterprise.
This is referred to the investigation and
evaluation of sources of supply and suppliers.
Negotiation: Is a
process of planning, receiving and analyzing conditions by both buyer and
seller to arrive at an acceptable agreement through mutual understanding.
Expediting: It is
a process of ensuring that goods are promptly delivered to the right place and
at the right time.
Requisition: It is a form usually prepared when a
department or stores need materials to be purchased.
is the withdrawal of goods and handover of stock to user backed with authorized
artificially contrived structure with procedures and objectives defining the
responsibilities, who does what type of job task, who report to whom and when
and who is responsible for what action.
Control: Is a process whereby goods and services are examined to
ensure that they conform to predetermined standards.
are materials for which there is no demand either because of the presence of a
better substitute or they are out of use or fashion.
is the complete process of verifying the quality balance of the entire stock
hold in the store.