Management and Organizational Performance: A Case Study of Nestle Nigeria, Plc
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To examine the impact of materials management on the productivity of the organization.
- To examine the impact of materials management on the productivity of the organization.
- To examine the impact of materials management on the productivity of the organization.
- To examine the impact of materials management on the productivity of the organization.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical Background
Barker (1989), identified five key functional areas that materials management cuts across which include purchasing, production and inventory control, quality control, storage and warehousing and physical distribution. Other literatures(Donald, 1975; Why bark& William,1986; Linton et al.,2007)expanded the areas to include forecasting demand and quantity materials requirements, good supplier and customer relationship, indigenous source of supply for foreign materials, developing skills of workers in material management, improved departmental efficiency and research and development(R&D) in material management. These activities are managed by the material management department. Selection of personnel for marketing, purchasing, inventory control, stores management and materials handling and their training and placement is also to be seen by the materials management department. Materials are the lifeblood and heart of any manufacturing system and no organization can operate without them. They must be made available at the right price, at the right quantity, in the right quality in the right place and at the right time in order to co-ordinate and schedule the production activity in an integrative way for an industrial undertaking. A manufacturing firm will remain shaky if materials are under stocked, overstocked, or in any way poorly managed (Banjoko,2000). According to Navon&Berkovich (2006), the main logistic responsibility in any organization is to formulate master programme for the timely provision of materials, components and work- in progress. Stevenson (2001), explained that logistics, including materials and goods flowing in and out of a production facility as well as its internal handling has become very important to an organization to acquire competitive advantages, as the company’s struggle to deliver the right product at the correct place and time. The main aim is to actually promote, with low cost, a flow whose velocity allows the execution of manufacturing process with expected satisfaction level. Bowersox&Closs (2002), articulated that improvement in continuity of supplies with reduced lead times, will lead to improvement in cooperation and will also enhance cooperation’s and communications with reduced duplication of efforts, reduction in material costs and improvement in quality control, which are the main benefits of materials management
Concept of Materials Management
Materials Management is a tool to optimize performance in meeting customer service requirements at the same time adding to profitability by minimizing costs and making the best use of available resources. The basic objective of Materials Management as explained by Banjoko (2000) and Jacobs et al.,(2009), is to ensure that the right item is bought and made available to the manufacturing operations at the right time, at the right place and at the lowest possible cost. According to wild (1995), materials management is a concept which brings together the responsibility for determining the manufacturing requirement that is scheduling the manufacturing processes and procuring, storing and dispensing materials (wild, 1995; Ondiek, 2009). An integrated approach to material management defines it as the function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a predetermined service to the customer at a minimum cost (Ramakrishna, 2005; Gopalakrishna&Sundaresan, 2006). These definitions provide the scope of materials management which includes materials requirements planning (MRP), decision on purchasing, procurement of materials, inventory management, staffing, stores and warehouse management, production and distribution of finished goods at minimum cost at due time (Osotimehin, 2006; Monday 2008; Ogbadu, 2009). Chase et al.,(2009), explained the concept of materials management brings in the total systems approach to managing the entire flow of information, materials and services from raw materials suppliers through factories and warehouses to the end user/customer. The study further confirmed that a firm’s success depends on how they manage their materials effectively. They indicate that it is important to monitor inventory at each stage because it ties up resources. Therefore, effective materials management is fundamental to the survival of business, industry and economy.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study material management and organizational performance
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information material management and organizational performance. 200 staff of Nestle Nigeria plc, Lagos was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain materials management and organizational performance
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of materials management and organizational performance
Summary
This study was on materials management and organizational performance. Four objectives were raised which included: To examine the impact of materials management on the productivity of the organization, to examine the impact of materials management on the productivity of the organization, to examine the impact of materials management on the productivity of the organization, to examine the impact of materials management on the productivity of the organization. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Nestle Nigeria plc, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up supervisors, administrative staff, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The study examines the effect of materials management on the performance of Nestle Nigeria plc. The study confirms that materials management dimensions jointly contribute significantly to firm performance. The study further reveals that materials inventory, materials procurement and inter-departmental collaboration have insignificant effect on firm performance, while only materials storage has significant effect on firm performance. The study concludes that effective materials management is a veritable tool to organization performance.
Recommendation
Subsequently, the study recommends that management should embrace effective materials management especially in the area of materials inventory, materials procurement and interdepartmental collaboration in order for the industry to achieve its vision of being a global leader in cement production and the largest employers of labour in the world by 2030.
References
- Barker, T. (1989) Essentials of Materials Management, McGraw Hill Book Company.
- Banjoko, S. A. (2000). Production and Operations Management, Lagos: Saban Publishers.
- Bell, L., &Stukhart, G. (2007). Attributes of Materials Management Systems. Journal of Construction Engineering and Management, 112(1), 14-21.
- Bowersox, D., &Closs, D. (2002).Logistical management: The integrated supply chain Process. New York: Mc-Graw-Hill.
- Chase, R.B. Jacobs, R.F. Aquilano, N.J., &Agarwal, N.K. (2009).Operations Management for competitive Advantage, 11th Ed. New Delhi Tata Mc-Graw Hill.
- Donald, F. (1975) Materials Management Concept, Great Britain: McGraw Hills Education Ltd.
- Gopalakrishnan, P., &Sundaresan, M. (2006). Materials Management: An Intergrated Approach, New Delhi: Prentice Hall.
- Jacobs, R. F. Chase, R. B., &Aquilano, N. J. (2009). Operations and Supply Management, Boston: Mc-Graw Hill. Linton, J.D.
- Klassen, R., &Jayaraman, V. (2007). Sustainable Supply Chains: An Introduction. Journal of Operations Management, 25(6), 1075-1082.
- Monday, J. U (2008). Effects of Efficient Materials Management on Performance of Firms in Food and Beverage Manufacturing Industry in Nigeria, MBA Dissertation, Nigeria: ObafemiAwolowo University.
