AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY
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AN APPRAISAL OF
MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER PRODUCTIVITY IN
NIGERIAN BOTTLING COMPANY
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
The Need for Appraisal of Material Management Concepts as a
strategy for achieving higher productivity and to make up with the growing
complexity of industrial needs. Management performance appraisals is one of the
most important opportunities in effective delivery of the company’s set
objective if done correctly, performance appraisals can help close the gap
between the actual performance of the company and the performance needed to
make corporate objectives.
Appraisals Management can be compared to an annual check-up:
both provide an opportunity for an honest assessment of how you are doing. You
need to know what you are doing is right so you can continue with those
activities.
Modern 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.
The 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.
Through 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 job.
Performance Appraisal in Material Management evaluates
materials employee’s current and past performance to the productivity standard,
management processes through which companies ensures that the materials are
working towards organizational goals include, practice through which manager
defines the materials sets targets and work, develops the productivity and
evaluate the outcome of production.
Frequently, 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.
Thus, the growing need for efficient operation of material
management is increased in recent time.
1.2 Statement of
the General Problem
Attempts has been made towards operating on integrated
approach to their material problem such as lead time organization is not
certain so therefore time given to complete a given task of production delivery
of goods always exceeds the expected given time.
The use of quantitative techniques in assigning jobs in some
organization may cause wastages of materials as the individual involved may not
have the skill and technical know-how to carry out the task effectively and
efficiently.
Lack of training and retraining of members of staff on how to
use the materials and keep the proper records of inventories can also bring
losses and production of inferior or scraps that may not be useful to the stud
intends to investigate on the strength and weakness of workers, maintain good
record keeping and to know the problem of material management in the case study
(Nigeria Bottling Company).
1.3 Objectives of
the Study
An appraisal of Material management concepts as a strategy
for achieving higher productivity in Nigeria Bottling Company is the systematic
evaluation of the performance of materials and to understand the abilities of a
production for future growth and development having the following objectives:
i) To
maintain records in order to determine compensation packages, wage structure.
ii) To
identify the strengths and weaknesses of materials (human and raw materials)
iii) It
serves as a basis for influencing working habits of the employees.
iv) To
review and retain the promotional and other training.
However, it is hoped that the research will serve as a guide
to students 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.
1.4 Statement of
Research Hypothesis
A 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 used:
H0: The application
of material management techniques does not increase the profitability of an
organization.
H1: The application
of material management techniques increase the profitability of an organization
1.5 Significance of
the Study
The 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 everything in detail which will attract readers
and future readers.
The 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.
1.6 Scope of this
Study
Material management being a complex 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 affects material management
as a tool toward organizational profitability in manufacturing organization.
1.7 Limitations of
the Study
A 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 limitations will be imposed on the are to be
covered.
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.
However, limited area of study, there are many section in the
organization 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 limitations to this project and the researcher has to
work with data that are available.
Furthermore, 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 Nigeria
Bottling Company have adopted strict security measure to non-organisation staff
following the trend of events which posed problem to this write up.
Fourthly, 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.
Moreover, there were difficulty of securing valid personal or
confidential information and the uncertainty of receiving adequate number of
responses to represent satisfactory sample.
1.8 Historical
Background of the Study
Nigeria Bottling Company Ltd was incorporated in November
1951, as a diary of the AG Leventis group with the Franchise to bottle and
sell Coca-Cola product in Nigeria.
Production began in the year 1953 at a bottling facility in
Ebute-metta, Lagos.. over the years production capacity has grown and it
presently ha 13 Bottling Facilities and over 80 distribution warehouses located
across the country.
Nigeria Bottling Company Kaduna is one of the few
multinational organization that had its beginning in Nigeria from a small
family owned operation at inception, which have grown to become the predominant
bottles of alcohol free Beverages in Nigeria, responsible for the Manufacture
and sales of over thirty three different Coca Cola brands since the production
started Nigeria Bottling Company has remained the larges bottler of non
alcoholic beverages in the country in terms of sales volume with about 1.8
billion bottles sold per year, making it the second largest market in Africa.
Today Nigeria Bottling Company is part of the (Coca-Cola
Hellenic) one of the Coca Cola company largest anchor bottle worldwide Coca
Cola Hellenic operation in the 28 countries, serves more than 560 million
consumers and with 2.1 billion unit cases sales. The company is driven by over
6000 employees, a culture of passion for excellence, sophisticated technology
and the best distribution network in the country with 13 high performing
bottling plants, over 80 depots and over 200,000 sales outlets nationwide, the
supply some ubiquitous and best known brands including Coca-Cola, Fanta,
Sprite, Schweppes, Eva Water and Five Alive.
Nigeria Bottling Company has two sections the soft drinks and
agricultural section. The company operates on large scale Agricultural
programmes with two firms situated at Zaria in Kaduna State, it established
three depots under Kaduna plants, Abuja, Zaria and Minna.
The plant in Kaduna is headed by a Plant Manager to whom five
sectional heads report, the section that make up the plant and who are report
to the plant manager are clinic, sales, production, accounting and engineering.
1.9 Definition of
Terms
Appraisal: A judgment or assessment of the value of
something, especially a formed on.
Material: These are items used directly as part of the
product being produced.
Material Management: A business logistic and refers to
overseeing the location and movement of physical items or products.
Concept: An understanding retained in the mind, form
experience, reasoning and imagination, a generalization or abstraction of a
particular set of instances.
Material Management Concept: The experience on how to
effectively and efficiently manage physical items and human resources.
Strategy: A plan of action intended to accomplish a specific
goal, the art of using similar techniques in a business.
Productivity: The rate at which goods or services are
produced by the standard population of workers, or the state of being
productive, fertile or efficient.
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