AN APPRAISAL OF MATERIAL MANAGEMENT AND RESOURCE UTILIZATION IN SEVEN-UP BOTTLING COMPANY PLC, KADUNA
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AN APPRAISAL OF MATERIAL MANAGEMENT AND RESOURCE
UTILIZATION IN SEVEN-UP
BOTTLING COMPANY PLC, KADUNA
ABSTRACT
This research work is titled, An
Appraisal of Material management and Resource Utilization in Nigerian Bottling
Company Plc Kaduna. The study was conducted to bring a
better understanding of the Material Management concept and reveal how they utilize their Materials. A
survey of carrying out
research was employed in the study, questionnaire was employed for instrument of data collection, and the
population of the study is 102, while the
sample size is 70. It was found out that material management in Nigeria
Bottling Company Plc is very effective and
reliable. It was concluded that the management of the store of a firm is important because of its likely
impact on profitability. It was
recommended that body attempt should be made to improve on the firm's resources’ to the desirable level.
TABLE
OF CONTENTS
Title page...............................................................
Approval page...........................................................
Declaration..............................................................
Dedication................................................................
Acknowledgement......................................................
Abstract....................................................................
Table of contents........................................................
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
1.2
Statement of the Problem
1.3
Objectives of the Study
1.4
Significance of the Study
1.5
Research Question
1.6
Scope of the Study
1.7
Limitation of the Study
1.8
Historical background of the Case Study
1.9
Defination of terms
CHAPTER TWO
REVIEW
OF RELATED LITERATURE
2.1
Human Resource (Manpower) Planning
2.2
Factors Affecting Human Resource
Planning
2.3
Strategies for Human resource Planning
2.4
Productivity in Organization
2.5
Productivity Measurement
2.6
Factors Influencing productivity
2.7
Theories of Motivation
2.7.1
Motivation
2.7.2
Motivators
2.7.3
The Expectancy Theory of
Motivation
2.8
Human Resource and Manpower Planning
similarities
2.9
Summary of the Chapter
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1
Research Design
3.2
Research Population
3.3
Sample Size and Sampling Technique
3.4
Method of Gathering data
3.5
Justification of Method Used
3.6
Method of Data Analysis
3.7
Justification of Instrument Used
CHAPTER FOUR
PRESENTATION
OF DATA AND
ANALYSIS
4.1
Data Presentation
4.2
Data Analysis
4.3
Test of hypothesis
Biblography
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary of findings
5.2
Conclusion
5.3
Recommendations
Bibliography
Appendix
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Material
management is an integrated management approach to the planning, purchasing,
warehousing, storekeeping, allocation and movement of needed material from
source of user department. It can also be defined as the process of management
of goods and materials which involved purchasing, storage, control and
transportation.
Material
and resource management is a relatively new discipline. The 20th
century rapid growth and the attendant industrial growth and the attendant
shift of production is relative importance of what is usually referred to as
the five “m” which includes machine, materials, men money and management.
The
famous industrial revolution about the complexity of materials and the volume
of productivity which turn and made materials the largest elements cost in
every organization.
At
the wake of the 20th century many firms had recognized the
importance of materials, several materials activities like purchasing,
warehousing, stock control and distribution carried out by the organization.
By
the 1950s many firms have identified the need for an effective coordination or
integration of such material activities and materials organization tools
concepts like those of physical distribution movement, logistics movement and
material management were involved so as to check, co-ordination and control of
the firm’s materials activities. Globally, there is no clear definition because
many institutes and writers have given so many definitions in the area for
material management.
According
to M.A. Tokunbo (1987) define it in the context of store and material control
as compensation, the effective coordination of the principle element.
-
Identifying, classifying and
coordination of stocks.
-
Provision, inventory, control and
stress accounting.
-
Store-house layout and organization
-
In house storage, handing and
distribution
-
Presentation of material in store.
To
these, the material manager has the duty of applying the most suitable
techniques in the most effective way to ensure the minimum total costs
consistent with providing the services required.
The
American production and inventory control society (APICS dictionary of production
and inventory control terms) define material management and resource
utilization as the grouping of management functions related to the complete
cycle of materials flow from the purchase and internal control of work in
progress of the product, differed from material control in the latter term,
traditionally is limited to internal control of production materials. The key
words here are material production or manufacturing process.
In
examining the whole definition one could easily notice that they are not quite
different from one another, but only the way of approach and little different
in terminologies. In this respect material and resource utilization management
is not only limited to buy and storing as many view it but also include
purchasing, transport and distribution, planning and continuous monitoring.
Today
materials and resources utilization are the livelihood of any industry, no
industry concern can operate without them. They must be made available at the
right time. In the right quantity and at the right place.
The subject
matter of this study is material management and resource utilization in an
organization. The researcher feels it will be of a great important to various
enterprise and organization to conduct a detailed study into stores and
purchasing material hence, the researcher aim at identifying the problem for
efficient operation in an organization.
The
researcher is interested in knowing how material management and resource
utilization function act practicable in an organization. As a result of the
sophistication in technology at parent coupled with social economic and
political changes. Activities could no longer be run without problem and adhoc
basis but must be planned moreover when problems are complex in nature by
management there is a need to ensure that materials and resources are allocated
and used in the most efficient and effective way.
The
material management and resource utilization function is also to identify
problems by guiding against sub-optimization of the material and resources
(under utilization of organizational resources) for this the researcher assist
to and acceptable.
Seven-up
brand roots go back to 1i920 when C.L. Gregg banked on his 30 years of
experience in advertising and merchandising to form the howdy corporation in
St. Louis, although he named the company after the Howdy Orange drink he
pioneer, goal was to create a wholesome and distinctive soft drink that would
prove irresistible to the nation’s consumers.
Gregg
spent more than two years testing different formulas of lemon flavored drinks.
He settled on one that fulfilled the characteristics sought refreshing, and
thirst – quenching. Gregg introduced his new soft drink two weeks before the
stock market crash in October 1929.
The
earliest Seven-up advertising featured a winged 7up logo and described the soft
drink in bottles only seven natural flavors blended into a savory, flavor drink
with real wallop Acknowledgement the success for the seven-up trademark
bottling company plc was founded in 1959s, seven-up has become the third best
selling soft drink in the world.
While
in Nigeria, seven-up bottling company plc was founded in 1959 by late Sheikh
Mohammed El-Khalil, at Ijora Lagos. Production started on October 1st
1960.
The
company brands include Seven-Up, Pepsi, Mirinda (orange, soda tonic, pineapple,
green apple) mountain dew and teen lemonade.
The
organization had nine operational plants branches across Nigeria which are as
follow: Ikeja plant, Ibadan plant, Benin Plant, Ilorin Plant, Enugu Plant, Aba
plant, Abuja plant, Kaduna plant, and Kano plant.
The
head office of Seven-Up Bottling Company Plc is at Ijora Apape area in Lagos
State.
Kaduna
Plant which is the plant been used for the case study is situated at Kaduna
South, industrial area along Inuwa Abdulkadir road.
The company is
committed to a culture of excellence in all their activities. Hence they strive
to position the company to meet and exceed the expectation of the employees,
customers, suppliers, shareholders, government and its agencies including the
general public.
1.2
STATEMENT OF THE PROBLEMS
Seven-Up
Bottling Company Plc as an organization is faced with problems in relation to
utilization of material and resources being the utmost thing that are needed to
be utilized effectively. The problems facing the material management and
resource utilization especially Seven-Up Bottling Company Plc are mainly
overstocking or under stocking of materials, obsolescence’s breakage and the
economic order. Due to the fact that functions of many purpose, the impact felt
positively in the society by making themselves reasonable in every area of
inputs.
But despite the material management and resources
utilization as a tool for
optimal utilization in Nigeria is not notice because it was observed that it is a general apathy" ignorance and lack interest by
many people in the country. Many of the
people including the government, individual are having the wrong nation
and wrong impression.
1.3 OBJECTIVES
OF THE STUDY
The major objectives of the studies are as follows:-
1. To find whether the company use accounting
tools and techniques
in maintaining their materials.
in maintaining their materials.
2.
To find
how Seven -Up Bottling Company Plc
managed their
material efficiently.
material efficiently.
3.
To find out how resources
are been utilized
4.
To find out whether there
is wastage of material or not
5.
To
look at the significance of materials management and utilization
of resources in manufacturing.
of resources in manufacturing.
1.4 STATEMENT OF HYPOTHESIS
Ho Material Management and Resource Utilization cannot
improve productivity in an organization.
HI Material Management and Resource Utilization
can improve productivity in an Organization
1.5 SIGNIFICANCE
OF THE STUDY
The significance of the project is designed
to help business, institutions or an organization to analyses and reduce
excessive cost in all areas of it operations. In today's business climate, with keener
competition and
Unstable economic condition, the sustained
controlling of cost often means
the different between profit and loss all over the world, cost conscious executives, purchasing managers in institution etc.
More so it is of a great significance to the manufacturing
industries, that is, the project is of great
importance because it is possible to evaluate the efficiency of material
management and resources utilization.
Material management and resources utilization is compendium
concept of the best cost controlling ideas
and methods that have evolved in recent year. Material manger, purchasing department will find these project useful ideas that can be directly applied to reduce
costs within the organization.
Thus, the project may be of immense help to
all business, institution and to
those organizations that are faced with the problem of material management and resources utilization been the utmost resources
that are needed to be utilized effectively.
1.6 SCOPE OF THE STUDY
The scope of this study has to do with the
importance of materials management
and resources utilization in Seven-Up Bottling Company Plc as a case study.
1.7 LIMITAIONS
OF THE STUDY
This research work is limited to the following department
found in Seven-Up
Bottling Company Plc.
Personnel Department: This department
is responsible for recruitment of
skilled, semi skilled and
unskilled personal for the entire various department in the organization: It's also look into
the general welfare of the workers and the overall organization operation.
Production department, they are responsible
for preparation f schedule for production when to
start the production for a particular product (flavor) and also determine the expected quantity material utilization and also a
management of jobs.
Accounting Department, this department is
responsible for the settlement, of invoices release, casting of material for the purpose
of final account or determination of production
cost.
Quality control department, this department
is responsible for making sure
that goods (products) and service are examined to conform to predetermined standard, these department
comprises of section such as water treatment,
syrup room and laboratory.
Store department, the department has to or
renders. Some function to the organization, which
area:-
i.
To
make provision for a balance flow of raw materials that is necessary to meet operational requirement.
ii
To make available the maintenance of materials, spare part as well as
general store requirement of materials, spare part as
well as general store requirement.
Warehouse, warehouse is the department
responsible for receiving finished
goods from the production department and them forward the
some finished product (goods )to marketing department, marketing department are mainly responsible for
sales, that is selling the company products at
the company recommended price to the various customers.
Feet/ workshop, they are responsible for the
transportation, services and repairs
for the various company vehicles especially the sales trucks and other vehicles.
In writing a project research works, one is
bound to face some certain constraints
that will limit the extent to which the research may intend to cover such as:
i. Time: Time is the most affecting
constraints to this project in fact, have enough time to write his project work.
ii. Financial Constraints:
This is another constraint which hinders the researcher from carrying out his
research work on time, especially the
recent federal government economic programme which made it difficult for the researcher to source for funds
on time; it has slowed down the progress of the project.
1.8 DEFINITION OF TERMS
i. MAINTENANCE:
It is the scientific utilization of Resource
which
includes material, machine, men,
method and money to accomplish
task, its embrace planning, organization directing, and coordinating.
ii. MATERIAL MANAGEMENT: It is concerned with the flow of materials to manufacturing department; it can be
described as a coordinating Function
responsible for planning and controlling of materials flow. Material
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 materials.
iii. PLANNING: Koontz O. Donnell and Welf Rich (1989) Perceive planning as deciding in advance what to do, how to do it when to do it.
Planning bridges the gap for where we
are to where we want
to go. A plan established objective
can be attained considering
various aspects of the environment and
determines the amount of
resources necessary.
iv. RESOURCES:- Resources are divided into human and material resources,
the human resources is the man power that
controls the activities of the organization
while the material resources are the assets or wealth of the organization that is put into use in achieving the organization
aim.
v. ORGANISATION: This 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 effect together towards achieving an objective.
vi. OBJECTIVES:- These are the specific productivity on organization wants to achieve in other words it
could be seen as asset aside
goals in which
an organization work
towards to achieve
effectively and efficiently. No organizations come into existence
without having an objective to achieve.
vii. UTILIZATION:- To make the best use of resources efficiently.
viii. PURCHASING:-Purchasing
is a strategic activity in an organization
with primary objective of improving and maximizing profit it figure out new ideas for improving company's products, search for belter source
supply
funds, substitute materials that
are more economical.
ix. PURCHASING
ORDER FORM: This is legal document normally printed to transmit the
organization requirement to the suppliers. This form varies from organization
to organization in size, shape and layout. Content and number of copies,
however certain essential elements are common.
x. PURCHASING REQUISITION FORM:- This form is usually prepared when
a department or store needs a particular materials. Normally three copies are prepared, two copies being sent to the purchasing
department as on authority
of purchasing and the duplicate being retained by the originating department for reference and follow-up.
xi. ENQUIRY AND QUOTATION: - When competitive
tender are required. It
is customary to
send an enquiring
to the suppliers and
to receive quotation
from the suppliers in order to select the most suitable
by analysis
of the tenders that are been received.
xii. NEGOTIATION:- It
is a decision making process, that
is it is a
process of planning, reviewing
and analyzing by buyer and
a seller to reach acceptable agreement or compromise through common understanding.
xiii. BUDGET:-
Is a planned quantified in
monetary terms prepared and
approved prior to a defined period of lime usually showing planned income to be generated and expenditure to be incurred during
that period and all
capital to be employed to attained a given objectives.
xiv.
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