EFFECT OF MATERIALS MANAGEMENT ON RESOURCE UTILIZATION IN ORGANIZATION (A Case Study of 7up Bottling Company Plc Kaduna)

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EFFECT OF MATERIALS MANAGEMENT ON RESOURCE UTILIZATION IN ORGANIZATION (A Case Study of 7up Bottling Company Plc Kaduna)

ABSTRACT

This project (research) work is titled “Effect of Materials Management on resource utilization in Organization”. The researcher carried on investigation to determine the impact of effect of materials management on resource utilization in organization as it affect organization’s productivity and output in the field of resource control and management. The researcher went further to talk about the side effect of lack of adequate materials and resources used in industrial or manufacturing situation and the consequences it has placed the country at large. The researcher drew up questionnaire and administered them on forty six (46) staff of the company (Senior and junior staff). Only closed –ended questions were used in designing the questionnaire. Thus the questionnaire method was used in gathering the relevant data and information needed for the study. The researcher formulated hypothesis which comprises of Null hypothesis (HO) and hypothesis (Hi). The data used for the study were gathered and presented in tabular form using simple percentage method. Means while, the hypothesis formulated for the study were tested using chi-square (X2) distribution method. Finally, the researcher summaries the study, drew conclusion with respect to what has been discussed in the previous chapters and proffered recommendations among which state that, “management of an organization should be committed to their role and carry its people along.

TABLE OF CONTENT

Title page – – – – – – – – – – i

Approval page – – – – – – – – – ii

Declaration page – – – – – – – – – iii

Dedication – – – – – – – – – – iv

Acknowledgement – – – – – – – – v

Abstract – – – – – – – – – – vii

Table of content – – – – – – – – – viii

CHAPTER ONE

Introduction

1.1 Background of the Study – – – – – 1-4

1.2 Statement of the Problems – – – – – 5

1.3 Objective of the Study – – – – – – 6

1.4 Statement of Hypothesis – – – – – 6

1.5 Significance of the Study – – – – – 7

1.6 Scope of the Study – – – – – – 8

1.8 Historical Background of the case Study – – – 8-9

1.9 Definition of Terms – – – – – – 10-12

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Definition of Material Management – 13

2.2 Meaning of Organization Resources – – — 14

2.3 The Significance of Materials Management – — 14-15

2.4 Functions of Materials Management – – — 16-26

2.5 Material Handling – – – – – – — 27-34

2.6 Materials Flow System – – – – – – – 34-36

2.7 Materials Management Strategies – – – – – 36-40

2.8 Determination of Materials Needs – – – – – 40-42

2.9 Definition of Production Control – – – – – 42-43

2.10 The Role of Production Control in Organization – – – 44-45

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design – – – – – – – – 46

3.2 Research Population – – – – – – – 46

3.3 Sample Size and Sampling Techniques – – – – 47

3.4 Method of Gathering Data – – – – – – 47

3.5 Justification for the Method Used – – – – – 47

3.6 Method of Data Analysis – – – – – – 48

3.7 Justification For the Instrument Used – – – – 48-49

CHAPTER FOUR: DATA PRESENTATION

4.1 Data presentation and analysis- – – – – – 49

4.2 Test of hypothesis – – – – – – – 56

CHAPTER FIVE –

SUMMARY OF FINDINGS, CONCLUSION RECOMMENDATION

5.1 Summary of finding – – – – – – – 60

5.2 Conclusion – – – – – – – – – 61

5.3 Recommendation – – – – – – – – 62

5.4 Limitation of the study – – – – – – – 64

References- – – – – – – – – 65

Appendices – – – – – – – – 67

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

This research work is titled the Effect of Materials Management on resource Utilization in Organization. A case study of 7up Bottling Company PLc Kaduna.

Arnold (1998) said that the wealth of any country is measured by its Gross National Product i.e the output of goods and services produced by the nation in a given time. He further defined materials as those physical objects i.e something we can touch, feel or see. Services are the performance of some useful function such as banking, medical care restaurants, clothing stores, or social services. But that the source of wealth of any country is measured by the amount of goods and services produced. A production process is needed to transform our resources into useful goods. Production takes place in all forms of transformation such as the transformation of resources to manufacture useful products.

There are many stages between the extraction of resource materials and the final consumer product. At each stage in the development of the final product, value is added. Thus, creating more wealth. Japan is a prime example of this, it has very few national resources and buys most of the raw materials it needs. However, the Japanese have developed one of the wealthiest economy in the world by transforming the raw materials they purchased and add value to them through manufacturing. To get value out of our resources, we must design production process that will make products most efficiently. Once the process exist, we need to manage their operation so they produce goods more economically. Managing the operation means planning for and controlling the resources used in the process such as labour, capital, equipment and materials. They are all important but the management plans through effective flow of materials. The flow of materials controls the performance of the process. if the right materials in the right quantity are not available at the right time, the profitability and even existence of a company, will be threatened.

Stevenson (1993) defined materials as all physical items used during production process. they includes not only the parts and raw materials that becomes the finished goods, but also the physical items needed to support the production process such as fuel, lubricants, tools, machinery, forms and anything else that is purchased, moved, stored or shipped.

Follet (2001) defined management as the act of getting things done through people by planning, organizing, directing, coordinating and controlling.

Stevenson (1993) defined materials management as the activity that is concerned with purchasing, storing, and movement of materials during production and with the distribution of finished goods.

George (1993) said that, materials management is an aspect of industrial management which is concerned with all activities that may include production control, inventory, purchasing, expenditure, traffic, materials handling, welfare, receiving, shopping, scrap and surplus, disposition and customer services.

Billington (1995) defined materials management as the process by which goods and services that an organization needs to achieve its objectives of buying, storage and movement of materials are required.

Lyson (1996) defined materials management as the management process which integrates the flow of supplies into, through and out of an organization to achieve a level of services that ensures that the right materials are available at the right place at the right time, at the right quantity, right quality and at the right cost.

Arnold (1998) said materials management is a coordinating function responsible for planning and controlling materials flow, in order to maximize the use of the formed resources and also provide the required level of customer services.

Iornum (2007) defined materials management as an integrated management approach to the planning, purchasing ware housing, storekeeping, allocation and movement of needed materials from one place to another. He further said that its also, the management of goods and materials that involves purchasing, storage, control and transportation.

Knod (2008) defined materials management to incorporate a broad set of activities related to acquiring, moving or handling, storage and control or monitoring of materials, thus, purchasing, distribution and other supply-chain management duties could be included.

1.2 STATEMENT OF THE PROBLEMS

This research work focuses on the Effect of Materials Management on Resource Utilization in organization. Using seven up bottling company Plc Kaduna as a case study.

Most organizations lays little emphasis on the need to adopt effective materials management techniques in their firms. This has resulted to high level of store insecurity, high cost of production and high level of customers dissatisfaction. Hence, it is because of this phenomenon that this study tries to examine the effect of material management on resource utilization in organization.

The study examines the following problems:

i. Does materials management affects the utilization of resources in seven-up bottling company plc Kaduna

ii. Does materials management affect the profitability of organizations

1.3 OBJECTIVE OF THE STUDY

i. To determine the effect of materials management on resource utilization in seven –up bottling company plc Kaduna

ii. To determine various materials management problems facing organizations.

iii. To ascertain and analyzed the various ways by which effective materials management technique can impact on the firm’s profitability.

1.4 STATEMENT OF HYPOTHESIS

The following hypothesis will guide this study

Ho: There is no significant relationship between materials management and resource utilization on production organization

H1: There is significant relationship between materials management and resource utilization in production organization.

1.5 SIGNIFICANCE OF THE STUDY

The researcher believes that the outcome of this study will be useful to both management and employees of process and manufacturing organizations in the country.

It will also be important and useful to other industrialists and services rendering organizations at large.

The findings of this study will provide useful information to production and operations officers, students and researchers. Thus, the main significance of this study, is for the partial fulfillment of the requirement for the award of Higher National Diploma (HND) in production and operations management and to increase the researchers knowledge and understanding on the subject matter.

The research will also serve as a reference point for further related research studies.

1.6 SCOPE OF THE STUDY

Due to the wide nature of the topic and the nature of the organization used as a case study, this research work was limited to only seven-up bottling company plc. Kaduna particularly, the store department of the organization. Thus, the study sourced primary data from the staffs in the store department of the organization. Also, the study will consider relevant related literatures to provide the appropriate conceptual base for the study.

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