THE IMPACT OF MATERIAL MANAGEMENT ON ORGANISATION PRODUCTIVITY (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, ILORIN)

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ABSTRACT

The proposal is based on the impact of materials management in organization productivity. these project need to be studied in order to bring about awareness at least on the side of the research user and to adopt to the laws given by the manager or management to the workers. Material management can be defined as a science based art which deals with the planning, organization, controlling and directing of the supply and processing actives of materials in an organization. The chapter one of this research work will be basically on the introduction of the case study, statement of the problem, objective of the study, significance of the study, scope and limitations of the study and defined of the terms. The chapter two shall look at the literature review, historical background of the study, source of raw materials, factors affecting the size of raw materials field in store, the male or buying decision, cost associated with raw materials, the inventory management system and the function include in material management. Chapter three of the project shall be looking on the research methodology and review of the case study, research design, population size, research methodology used and method of data collection and analysis. Chapter four of the project will focus on the data analysis through single method and testing of hypothesis. Finally, the chapter five of the project will look into the summary of the findings, conclusion and recommendation of the data.

CHAPTER ONE

1.1     GENERAL INTRODUCTION

Material management in an organization is all embracing than any other form of management because of the diverse activities involved such as: 

  1. Purchasing
  2. Stores
  3. Inventory control
  4. Production control
  5. Quality control
  6. Packaging
  7. Warehousing
  8. Inward and out ward inspection
  9. Marketing or sales.

Therefore, material management is the act of planning, organizing, controlling and directing of the supply and processing activities of material in an organization.

The impact of material management on organization productivity is unavoidable either positively or negatively, this. In production, material must be managed properly on order to avoid any the seventy five parent (759) of the entire operation and the money spent on material alone range between 60-65% of the company total arrestment. Therefore, the importance of material in an organization is very obvious and should be given proper attention.

1.2     STATEMENT OF THE PROBLEM  

For the purpose of this research work, there are lots of limitation of problem of that lingered the project to be carried all effectively.

Therefore, because we were approaching the end of the National Diploma (ND) there is time constraint and there was not enough time to carry out the project work as necessary.

Also, the research of this project is limited to coca-cola plant at Ilorin; although the company has various plants all over the countries and even the work at large. Therefore, the information supplied in this project milled to business strictly to the economic environment.

1.3     OBJECTIVE OF THE STUDY

These are the objective of the study that shows the impact of material management on organization productivity. It shows how a manufacturing organization can survive through the effective management of materials. Among the crucial objective of the study are:

  1. To examine how raw materials can be made available directly or indirectly form abroad or within the country.
  2. To look at ways and sub- strategies that can be adopted in order to develop alternative means of getting raw materials so as to guarantee availability when it is needed.
  3. To identify the role of material control in effective management of raw materials such that material can be procured and stored at an economic quality that guarantee a fair price and right quality.
  4.  To take note adequately of the role of machine utilization in the management of raw materials an order to reduce scrap rate.

1.4     SIGNIFICANCE O THE STUDY  

The study lies on how alternative means of getting raw materials can be embarked upon to make possible its availability when need and also to find the solution to the problem of absolve dependence on foreign sources.

The storage of raw materials and economically producers can plan adequately against higher than maximum stock lever and lower than minimum stock level which can bring about some negative implosion on the business capital.

The study also arm at suggesting and deciding strategies.

That can be used and the serried of the manufacturing industry through efficient materials which will lead to economic boost.

1.5     SCOPE AND LIMITATIONS OF THE STUDY

The project will focus on the relevant aspect of materials management in production and it limitation to its relationship with the current situation of our economy. It will cover areas like sources availability and utilization of raw materials.

 In the course of study, the research is limited to Nigeria bottling company Ilorin and in searching for the collection of data, only workers  in department that have relationship with the project topic will be adequately unrolled such as production department, store department, purchasing department quality control and the account or administer department.

THE IMPACT OF MATERIAL MANAGEMENT ON ORGANISATION PRODUCTIVITY (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, ILORIN)