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IMPACT OF MATERIALS MANAGEMENT IN THE PRODUCTIVITY
CHAPTER ONE
1.0 Introduction
It
is quite obvious that every organization keeps materials which form one of the
pivotal elements in the organization. Any establishment that is set up to
produce one thing or another; any organization could either be goods producer or
services delivery or both, and they must make use of materials in all their
operations, and these materials must be properly managed to achieve the desired
objectives.
Materials
management is one of the most technological choices in any organization. Thus,
it must be decided as to when, how and by who materials should be handled. It
covers the processes of moving, packing and storing materials. Note that in the
past, there was no any distinct method in use.
However,
today the methods employed are numerous such as: The Automated Guided Vehicle
(AGV), the Automated Storage and Retrieval System (ASRS).
1.1 Background
of the Study
What
dominates organizational operations and there seeks to transform management
practices is no other than material management.
It
is obvious that in all kinds of organizations, management effort is often times
committed to the effective and efficient management of materials. Furthermore,
the management practices have gained the understanding that the success of any
can only be guaranteed in today’s circumstances by a practical and holistic
commitment to materials management.
Materials
management is not a mere technique, but a philosophy anchored on a belief that
long run success depends on the uniform commitment to materials management in
7Up Plc, Kaduna Plant which can be achieved via the interplay of both the
analytical and holistic facilities of the personalities concerned.
1.2 Statement
of the General Problem
Materials
management as we all know is considered “life blood” of every organization.
Unfortunately enough, most companies have entrusted the materials management
functions into the hands of mediocre.
Therefore,
the basic problem with which the study is concerned about is the unethical
practices in the 7Up Plc Kaduna plant which includes: the placement of
unqualified personnel on the functional, they do not have professional
knowledge about, over invoicing and local inaccessibility of raw materials.
Also, therefore is the problem of wastage and pilferage of materials in 7Up Plc,
Kaduna plant.
1.3 Objectives
of the Study
The
main objective of the study is to determine the impact of materials management
in the productivity of Seven-Up Bottling Company. Other specific objectives
include to:
1.
Identify ways in which materials can
be controlled to increase productivity in 7Up Plc, Kaduna plant.
2.
Identify and evaluate how buying,
stock taking, stock checking and stock recording in the organization ensure
continuity of operation in 7Up Plc Kaduna plant
3.
To outline the accompanying benefits
that will accrue to the management of the organization if materials are
properly managed.
4.
Identify how shortage of quality
personnel deter the effective management of materials in the organization.
5.
To recommend procedures, processes
and techniques for effective and efficient management of materials in the
organization.
1.4 Significance
of the Study
This
study would add to the knowledge of the subject matter, “materials management”
and equally help managers in 7Up Plc Kaduna plant in tackling the effects of
stock taking, stock checking and stock recording in the organization, as one of
the salient components of materials management.
It
would enable managers to boost productivity and minimize or eradicate problems
related to materials for students and businesses that will be embarking upon
materials management operations.
It
will generally help management in reducing wastage and pilferage of materials
and equally enhance proper utilization of materials.
1.5 Research
Questions
1.
Can materials management increase
productivity in organization?
2.
Can proper buying, stock taking,
stock checking and stock recording ensure continuity of operations in 7Up Plc
Kaduna plant?
3.
What are the benefit that will accrue
to the management of the organization if materials are properly managed?
4.
Does shortage of qualified personnel
deter the effective management of materials in 7Up Plc Kaduna plant?
5.
Can formidable procedures, processes
and techniques bring about effective and efficient management of materials in
an organization?
1.6 Scope
of the Study
The
study is concerned with materials management as an effective tool for
productivity in Seven Up (7-Up) Nigeria Plc Kaduna plant. The study would cover
the practical activities performed by Seven Up (7Up) Nigeria Plc Kaduna plant
from the identification of new order up to the issue of ordered materials to
the user department from 2008 – 2012).
1.7 Limitations
of the Study
In
every research work, the researcher is bound to face hitches. One of the
problems anticipated during this research study include lack of cooperation
from subjects or objects leading to use of smaller than anticipated numbers,
low return of questionnaire and inability to use correct data gathering
instruments due to ignorance about their availability. Another limitation was
the attitude of the staff during visits to the organization. At the end,
despite all the constraints, I was able to conduct the research successfully.
1.8 Definition
of Terms
Stocks:
These
are raw materials of varying qualities held in store house.
Stores:
This is a house or a structure prepared for safe keeping of materials.
Logistics:
This is the process of averaging the movement and storage of goods and
materials from their source to the point of ultimate consumption.
Bulk
Issues: These are materials that are made in
set agreed quantities in designated departments.
Obsolescence:
These are items held in stock which becomes out of date and no further use to
the organization.
Distribution
Requirement Planning (DRP): This is a
requirement placed by customers at the points of use or demand.
Stock
Yard: This is an open air place in which materials may
be kept for reasonable time without serious deterioration.
Work
in Progress (WIP): These are inventories of
materials in a part finished or partially assembled state.
Scrap:
These are wastes, used or surplus materials or part arising out of
manufacturing processes or other activities.
Stock
Checking: This involves the inspection of
materials for quality and quantity.
Stock
Taking: This is the physical counting of
materials in the store.
Materials
Requisition Planning (MRP): This is a set of
logically related procedures decision, rules and records designed to translate
or master production schedule into net requirement and planned coverage of such
requirements for each component inventory item needed to implement a schedule.
Inventory
Status File: This is a document used in keeping
records of what is in stock and allows the gross requirements to be adjusted to
net requirement by taking into account the current position.
Automated
Guided Vehicles: These are trucks used in the store
house with no driver but guided automatically.
Materials:
These are items used for production of goods and services.
Replenishment:
This is the process of supplying back materials in order to replace what has
been used up.
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