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IMPACT OF
MATERIALS MANAGEMENT IN THE PRODUCTVITY OF SEVEN-UP (7UP) BOTTLING COMPANY
ABSTRACT
This
research presents the investigation into the impact of material management on
the profitability of the manufacturing company, 7up Bottling company, Kaduna
was used as the location for the study and a total of 100 staff was sampled.
Data was gathered using a self -constructed questionnaire and the result gotten
was analyzed using the simple percentage method, chi square was also used for
the testing of the hypothesis. The
validity and reliability of instrument were ascertained. The result of the
study reveals that there is positive effect of material management in the
profitability of the organization because material management effects the
product output and this will definitely influence the profitability of the
organization, Manufacturing firms in Nigeria are encouraged to increase their
resource commitment to staff training in Materials Management so as to develop
skills, update knowledge, enhance new product development and create indigenous
source of supply for foreign materials.
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 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 this study is to find out the effect of material management on the
profitability of the manufacturing company in Nigeria, specifically the study
intends to:
1. Find out the effect of material management
on the product output of a manufacturing company
2. Analyze the effect of material management
on the profitability of a manufacturing company
3. Investigate the challenges of managing
materials in manufacturing companies
1.4 Research Question
1. What is
the effect of material management on the product output of a
manufacturing company
2. Is there any effect of material management
on the profitability of a manufacturing company
3. What are the challenges of managing
materials in manufacturing companies
1.5 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.
1.6 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.
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