ABSTRACT
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 CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER
ONE
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
CHAPTER
THREE
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
CHAPTER
FOUR
1.1 Data
analysis through single method 30
CHAPTER
FIVE
5.1 Summary of the findings 39
5.2 Conclusions 40
5.3 Recommendations 41
Reference
44
Appendix 45
CHAPTER ONE
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:
1. Purchasing
2. Stores
3. Inventory
control
4. Production
control
5. Quality
control
6. Packaging
7. Warehousing
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 investment. 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
1.
MANAGEMENT
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.
4.
PRODUCTIVITY
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.
5.
PRODUCTION
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.
6.
PURCHASING
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.
7.
PRICE
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.
8.
INSPECTION
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.
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