MATERIAL VALUATION AND CONTROL IN A MANUFACTURING ORGANIZATION
ABSTRACT
The need for holding material is inherent in any business organization. The space of the material will be properly controlled and valued so that objective of carrying or maintaining adequate stock levels at minimum cost can be realized.
Hence, the study of material evaluation and control in a manufacturing firm like Rokana Industry Plc has been grouped into the following sector to enhance the success of the work.
The introductory chapter deals with the meaning of material cold its components in a manufacturing organization, as well as valuation. It also cover the method of controlling material and the dangers cold advantages inherent in each of them.
Chapter two examines the related texts that the project written was able to come across. In this chapter, the study looked at the central of materials and the method employed in so doing. It further examined the need for material, various stock and methods of material valuation.
Considering the nature of the study, and the company a lot of data were generated. Both primary and secondary data were used it is based on this third chapter tiled “Research methodology” stated the source of data collected, categorizing them into primary and secondary.
The former was achieved through the use of such instruments as introduction, research, designs, questionnaire design, sampling and selection, other method used such as observation and survey. Source of data and statistical techniques used in analyzing the data.
In chapter four, the data collected were presented, analyzed and interpreted. Firstly, an introduction of the method, data collection followed by the results of the interview concluded. The data were then analyzed and interpreted.
Finally, chapter revealed the findings of summary made from the research, recommendation were drawn and the conclusion were based on the findings with a view to ensuring effective material valuation and control.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Material represents a major assent of most industrial and commercial organization, and its essential that material are managed efficiently, so that materials do not become unnecessary large.
A firm should determine its optimum level of investment in material and to do so, two conflicting requirements must be met.
Firstly, it must ensure that materials are sufficient to meet the requirement for the production and sales.
Secondly, it must avoid holding surplus material which is unnecessary and which increase the risk of obsolesces. The optimal level lies some where between these two extremes.
The study of material valuation and control measure is necessary in light of the need for a company whose goals is to optimize or maximizes its profit, retains the company’s goodwill and project the economy. Hence there is need to emphasis here that appropriate description and measurement of material demand careful attention because material is one of the most significant assets that any organization possesses.
Material can be defined as assent items held for sale in the ordinary course of business or good that will be used or consumed in the production of good to be sold. From the above definition, on can decide that material can be classified into three classes of:
1) Stock of raw material-used for the production department.
2) Incomplete work (work in progress) – used to maintain continuity within the production department.
3) Material of finished good awaiting sales used to satisfy customer demand.
