Variety Reduction as a Tool for Effective Materials Control (a Case Study of Nigeria Bottling Company Plc)
CHAPTER ONE
Objectives of the Study
The purpose of embarking on this research work by the researcher is to determine the effect of variety reduction on materials control.
Specifically, the research work is set out;
- To determine the areas covered by variety reduction in an organization is, Nigeria Bottling Company Plc Kaduna.
- To determine stages of variety reduction that can facilitate the organization’s operational efficiency.
- To determine if the benefit of variety reduction can minimize cost in the organization.
CHAPTER TWO
Literature Review
This chapter of the project will review the views and opinions of authors, scholar and relevant literature book on the topic under consideration variety reduction as a tool for effective materials control and therefore areas such as:
- Definition of authors
- Stages of variety reduction
- Areas covered in variety reduction
- Reasons for variety reduction
- Benefits and advantages of variety reduction
- Disadvantages of variety reduction
- Why should variety be controlled?
- How to control variety reduction and
- Materials Control
Conceptual Framework of Variety Reduction
This section will focus or examine Conceptual framework of variety reduction.
According to Hassan (2008) defined variety reduction as “the process of reducing the number of types, size or grades of a product that are purchased, made or stocked”. “It is also the process used to describe standardization and simplification” (p. 445).
According to Lawal (2004), variety reduction is defined “as the process of reducing the number of type’s sizes and grades of a product made, purchased or stocked. He emphasizes further that variety reduction is a decision of management and can be embarked upon by the individual manager as the programme will normally affect the whole organization. He express that variety reduction is done by:
- Simplification – that is, the elimination of unnecessary variety of sizes and types of specialized products.
- Standardization – that is, accepting the types of commodities which is most appropriate to your need.
- Specialization – which means the concentration of effort on undertakings were special knowledge is available (p. 128 and 130).
Lysons (1996) explain that variety reduction can make substantial savings is inventory by standardizing and rationalizing the range of materials parts and consumable kept in stock. He emphasized that variety reduction can be pro-active or re-active:
Pro-active approaches to variety reduction can be applies when considering capital purchases, by ensuring compatibility with existing machinery the range of spares carried to insure against breakdowns can be substantially reduced.
Variety can be achieved by using, so far as possible, standardized components and sub assembles to make end products that are dissimilar in appearance and performance so make a variety of final product use only a few basic components.
Re-active variety can be undertaken periodically by a special project team comprising all interested parties who examine a range of stock items to determine:
CHAPTER THREE
Research Methodology
This chapter will explain the plan for executing this study and this will be discussed under the following headings:
- The Area of Study
- Research Design
- Population of the Study
- Sample and Sampling Procedure
- Instrument for Data Collection
- Administration of the Instrument
- Techniques for analyzing Data
Area of Study
The research study will be conducted in various units that are related to variety reduction function in Nigeria Bottling Company plant situated at Kakuri industrial area, Kaduna south, Kaduna state.
These units include:
– Store: Is the place where all raw materials, component parts, are held for safe keeping.
– Supplier: Who is responsible for supplying the organization with materials needs.
– Purchasing: Which is responsible for the acquisition of material needs of the organization.
CHAPTER FOUR
Presentation and Analysis of Data
This chapter is a detail presentation of result, discussion and analysis of data collected for this study. The researcher used tables for the analysis of the data collected during the study.
The researcher administered twenty (20) questionnaires and sixteen were responded to and returned to the researcher. The returned questionnaire formed the basis for the analysis and the presentation of results.
CHAPTER FIVE
Summary, Discussion, Conclusion and Recommendation
This chapter summaries the entire work to bring out the findings arrive at a conclusions and make feasible recommendations to the management. It is culmination of the research work and revolved round the following issues, summary, discussion, conclusion and recommendation.
Summary of Procedure
This study was basically carried out to examine variety reduction as a tool for effective materials control in an organization, a case study of Nigeria bottling company plc, Kaduna plant, located at Kaduna south industrial estate, Kaduna state.
Discussion of Findings
In this section, the researcher elaborately highlights major findings in accordance to research objective and advancing possible interpretations and explanation of her findings, according to research question, this finding will be related to existing knowledge.
Conclusions
In the view of the above findings the following conclusion is arrived.
First, that the organization has area covered by variety reduction, that the organization attached considerable importance to variety reduction, that variety reduction facilitates the organization operational efficiency, variety reduction really minimizes cost and improve quality production.
Moreover, variety reduction really eases inspection, stocktaking and avoidance of storing duplication of article.
And lastly that variety reduction enhance the production and delivery of right quality of materials as such the organization is able to increase efficiency, productivity and also enhance the profitability of the organization.
- That the organization is encountered with the problem of none recognition of variety reduction activities which affect the level of efficiency, productivity of the organization.
- The variety reduction is not given a proactive approach and over storing of material which can lead to increase in cost of storage.
- Lack of professionals and a unit separated to handle variety reduction activity that is responsible for formulating policy and control of materials effectively.
Recommendations
In view of the above findings, conclusion and implementation of the findings. It is recommended that management of Nigeria Bottling Company Plc should:
- Formulate variety reduction policy to align with the objective of the organization.
- Always employed a competent hand to handle variety reduction so as to effectively control material.
- Gives variety reduction adequate priority so as to avoid storing the same article that can serve the same purpose.
- Critically address the issue of non recognition of the role of variety reduction activities.
- To set up a unit that can handle the issue of variety reduction perfectly.
Suggestion for Further Studies
On the course of the research study the researcher discover some related areas of study which is not discuss in the research work. Such areas as selling, marketing aspect, store building and the number of stock in relation to variety reduction.
Another important area the researcher could suggest, for further study is organization and management of variety reduction in organization. Therefore those are identified above, are good area which subsequent researcher can take opportunity of its market exploitation and bring about an important finding and recommendation that can enhance the organization activities when formulating variety reduction policies.
BIBLIOGRAPHY
- Hassan, M. (2008). Purchasing for Tyro. Kaduna: Aziki Global Publisher.
- Hassan, M. (2009). Business Management. Kaduna: Joyce Publishers.
- Jain, K.C. and Aggarwal, L.N. (2008). Production Planning Control and Industrial Management. 6th Edition; New Delhi, Khana Publishers.
- Jhingan, M.L. and Stephen, J.K. (2008). Managerial Economics. B.K Offset Press Delhi, Vrinda Publications.
- Lawal, I. (2004). Stores Administration. Ilorin: Olad Publishers.
- Lucey, T. (2003): Management Accounting, 5th Edition, London: Book Power
- Lysons, K. and Gillingham M. (2003). Purchasing and Supply Chain Management. 6th Edition. England: Pearson Education.
- Lysons, K. (1996). Purchasing. 4th Edition. London: Pitman Publishing.
