ROLE OF MATERIAL MANAGEMENT IN PRODUCTION ACTIVITIES
CHAPTER ONE
1.0 INTRODUCTION
1.1 GENERAL OVER VIEW
In recent years materials functions has experienced total information by business management. It is the least of the responsibilities and authorities for making major contributions to projects and it has yielded positive result in the business world.
In most business operations today, the cost of materials has an important role in fixing the price of the finished product .This is because when materials are bought with high prices, the finished products coupled with the production activities will also be of high price. The phenomenon determines whether the company will make profit or incur lost at the end of the production.
Therefore, efficient and effective management of materials are essential for the survival of any organization. It also reduces the problems encountered during production activities. Materials management concept brings together under one manager the responsibilities for planning, organizing, controlling, motivating of all those activities principally concerned with the flow of materials into an organization. It is also concerned with production and control of activities involved in acquisition and use of materials in the industry.
BRIEF HISTORY OF THE COMPANY
The name of the company is Lexos paints Limited. It is indigenous company incorporated under the law of the federal republic of Nigeria carrying on business manufacturing of domestic and industrial paints for the building/civil engineering sector of the economy. The corporate office is located at no.3 Elebor street, off Zulu Hotel Limited, Oroworokwu town port Harcourt River’s state .while the factory is located at location road oyigbo Port Harcourt, River’s State.
In the paints industry, lexos paints Nigeria Limited are a specialist in domestics and industrial coatings. The minor civil works such as POP Designs and manufacturing/ production of filler.
1.2 STATEMENT OF PROBLEM
In the recent times, companies has been facing the problem of getting materials of the right quality, quantity, and at the right time and from the right source as a result of change in taste, fashion, technology, population etc. This means continues in the future because human beings are insatiably. As a result of this production of activities has been hampered in this present time, in order to reduce the problems that will arise from the above mentioned changes, materials management department or another related organizations gives solution to it. This is to ensure that the problems are reducing the cost associated with the changes. The problems are thus listed below:-
(1) The trend in lexos paints industries towards the production of an increasing number of highly specialized complex materials and components.
(2) The re-occurring shortages of basic materials in stores department of lexos paints in Port Harcourt.
(3) The increasing use in business of computers and related electronic data processing equipment in lexos paints industries.
(4) The current trend towards factors automation in lexos paint industries.
(5) The increase rate of unqualified and inexperienced personnel found at different units of material management department of lexos paints industries.
