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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