EFFECT OF MATERIALS MANAGEMENT ON RESOURCE UTILIZATION IN ORGANIZATION (A Case Study of 7up Bottling Company Plc Kaduna)
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EFFECT OF MATERIALS MANAGEMENT ON RESOURCE
UTILIZATION IN ORGANIZATION
(A Case Study of 7up Bottling Company Plc Kaduna)
ABSTRACT
This project
(research) work is titled “Effect of Materials Management on resource
utilization in Organization”. The researcher carried on investigation to
determine the impact of effect of materials
management on resource utilization in organization as it affect organization’s
productivity and output in the field of resource control and management. The
researcher went further to talk about the side effect of lack of adequate
materials and resources used in industrial or manufacturing situation and the
consequences it has placed the country at large. The researcher drew up
questionnaire and administered them on forty six (46) staff of the company
(Senior and junior staff). Only closed –ended questions were used in designing
the questionnaire. Thus the questionnaire method was used in gathering the
relevant data and information needed for the study. The researcher formulated
hypothesis which comprises of Null hypothesis (HO) and hypothesis (Hi). The
data used for the study were gathered and presented in tabular form using
simple percentage method. Means while, the hypothesis formulated for the study
were tested using chi-square (X2) distribution method. Finally, the
researcher summaries the study, drew conclusion with respect to what has been
discussed in the previous chapters and proffered recommendations among which
state that, “management of an organization should be committed to their role
and carry its people along.
TABLE OF CONTENT
Title
page - - - - - - - - - - i
Approval
page - - - - - - - - - ii
Declaration
page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vii
Table
of content - - - - - - - - - viii
CHAPTER ONE
Introduction
1.1 Background of the Study - - - - - 1-4
1.2 Statement of the Problems - - - - - 5
1.3 Objective of the Study - - - - - - 6
1.4 Statement of Hypothesis - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope of the Study - - - - - - 8
1.8 Historical Background of the case Study - - - 8-9
1.9 Definition of Terms - - - - - - 10-12
CHAPTER
TWO
LITERATURE
REVIEW
2.1
Conceptual Definition of Material
Management - 13
2.2 Meaning of Organization Resources - - -- 14
2.3 The Significance of Materials Management - -- 14-15
2.4 Functions of Materials Management - - -- 16-26
2.5 Material Handling - - - - - - -- 27-34
2.6 Materials Flow System - - - - - - - 34-36
2.7 Materials Management Strategies - - - - - 36-40
2.8 Determination of Materials Needs - - - - - 40-42
2.9 Definition of Production Control - - - - - 42-43
2.10 The Role of Production Control in Organization - - - 44-45
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research Design - - - - - - - - 46
3.2 Research Population - - - - - - - 46
3.3 Sample Size and Sampling Techniques - - - - 47
3.4 Method of Gathering Data - - - - - - 47
3.5 Justification for the Method Used - - - - - 47
3.6 Method of Data Analysis - - - - - - 48
3.7 Justification For the Instrument Used - - - - 48-49
CHAPTER FOUR: DATA PRESENTATION
4.1 Data presentation and analysis- - - - - - 49
4.2 Test of hypothesis - - - - - - - 56
CHAPTER FIVE –
SUMMARY
OF FINDINGS, CONCLUSION RECOMMENDATION
5.1 Summary of finding - - - - - - - 60
5.2 Conclusion - - - - - - - - - 61
5.3 Recommendation - - - - - - - - 62
5.4 Limitation of the study - - - - - - - 64
References- - - - - - - - - 65
Appendices - - - - - - - - 67
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
This
research work is titled the Effect of Materials Management on resource Utilization
in Organization. A case study of 7up Bottling Company PLc Kaduna.
Arnold
(1998) said that the wealth of any country is measured by its Gross National
Product i.e the output of goods and services produced by the nation in a given
time. He further defined materials as those physical objects i.e something we
can touch, feel or see. Services are the performance of some useful function
such as banking, medical care restaurants, clothing stores, or social services.
But that the source of wealth of any country is measured by the amount of goods
and services produced. A production process is needed to transform our resources
into useful goods. Production takes place in all forms of transformation such
as the transformation of resources to manufacture useful products.
There
are many stages between the extraction of resource materials and the final
consumer product. At each stage in the development of the final product, value
is added. Thus, creating more wealth. Japan is a prime example of this, it has
very few national resources and buys most of the raw materials it needs.
However, the Japanese have developed one of the wealthiest economy in the world
by transforming the raw materials they purchased and add value to them through
manufacturing. To get value out of our resources, we must design production
process that will make products most efficiently. Once the process exist, we
need to manage their operation so they produce goods more economically.
Managing the operation means planning for and controlling the resources used in
the process such as labour, capital, equipment and materials. They are all
important but the management plans through effective flow of materials. The
flow of materials controls the performance of the process. if the right
materials in the right quantity are not available at the right time, the
profitability and even existence of a company, will be threatened.
Stevenson
(1993) defined materials as all physical items used during production process.
they includes not only the parts and raw materials that becomes the finished
goods, but also the physical items needed to support the production process
such as fuel, lubricants, tools, machinery, forms and anything else that is
purchased, moved, stored or shipped.
Follet
(2001) defined management as the act of getting things done through people by
planning, organizing, directing, coordinating and controlling.
Stevenson
(1993) defined materials management as the activity that is concerned with
purchasing, storing, and movement of materials during production and with the
distribution of finished goods.
George
(1993) said that, materials management is an aspect of industrial management
which is concerned with all activities that may include production control,
inventory, purchasing, expenditure, traffic, materials handling, welfare,
receiving, shopping, scrap and surplus, disposition and customer services.
Billington
(1995) defined materials management as the process by which goods and services
that an organization needs to achieve its objectives of buying, storage and
movement of materials are required.
Lyson
(1996) defined materials management as the management process which integrates
the flow of supplies into, through and out of an organization to achieve a
level of services that ensures that the right materials are available at the
right place at the right time, at the right quantity, right quality and at the
right cost.
Arnold
(1998) said materials management is a coordinating function responsible for
planning and controlling materials flow, in order to maximize the use of the
formed resources and also provide the required level of customer services.
Iornum
(2007) defined materials management as an integrated management approach to the
planning, purchasing ware housing, storekeeping, allocation and movement of
needed materials from one place to another. He further said that its also, the
management of goods and materials that involves purchasing, storage, control
and transportation.
Knod
(2008) defined materials management to incorporate a broad set of activities
related to acquiring, moving or handling, storage and control or monitoring of
materials, thus, purchasing, distribution and other supply-chain management
duties could be included.
1.2 STATEMENT
OF THE PROBLEMS
This
research work focuses on the Effect of Materials Management on Resource Utilization
in organization. Using seven up bottling company Plc Kaduna as a case study.
Most
organizations lays little emphasis on the need to adopt effective materials
management techniques in their firms. This has resulted to high level of store
insecurity, high cost of production and high level of customers
dissatisfaction. Hence, it is because of this phenomenon that this study tries
to examine the effect of material management on resource utilization in
organization.
The
study examines the following problems:
i.
Does materials management affects the
utilization of resources in seven-up bottling company plc Kaduna
ii.
Does materials management affect the
profitability of organizations
1.3 OBJECTIVE
OF THE STUDY
i. To
determine the effect of materials management on resource utilization in seven
–up bottling company plc Kaduna
ii. To
determine various materials management problems facing organizations.
iii.
To ascertain and analyzed the various ways
by which effective materials management technique can impact on the firm’s
profitability.
1.4 STATEMENT
OF HYPOTHESIS
The
following hypothesis will guide this study
Ho: There
is no significant relationship between materials management and resource
utilization on production organization
H1: There
is significant relationship between materials management and resource
utilization in production organization.
1.5 SIGNIFICANCE
OF THE STUDY
The
researcher believes that the outcome of this study will be useful to both
management and employees of process and manufacturing organizations in the
country.
It
will also be important and useful to other industrialists and services
rendering organizations at large.
The
findings of this study will provide useful information to production and
operations officers, students and researchers. Thus, the main significance of
this study, is for the partial fulfillment of the requirement for the award of
Higher National Diploma (HND) in production and operations management and to
increase the researchers knowledge and understanding on the subject matter.
The
research will also serve as a reference point for further related
research studies.
1.6 SCOPE
OF THE STUDY
Due
to the wide nature of the topic and the nature of the organization used as a
case study, this research work was limited to only seven-up bottling company
plc. Kaduna particularly, the store department of the organization. Thus, the
study sourced primary data from the staffs in the store department of the
organization. Also, the study will consider relevant related literatures to
provide the appropriate conceptual base for the study.
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