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 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:
1. To
examine how raw materials can be made available directly or indirectly form abroad
or within the country.
2. 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.
3. 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.
4. 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.