Effect of Material Management Techniques on Production Planning Process
Chapter One
OBJECTIVES OF THE STUDY
Specifically, the aims and objectives of this study are:
- To assess the impact of material management on organisational performance.
- To appraise and further appreciate the significance of material management in the manufacturing industry.
- To identify and ascertain some of the problems posed by materials management in Nigerian United Nigeria Textile Plc (UNT Plc), Kaduna.
- It is also the researcher’s desire that this compilation will be of great help and interest to whosoever uses it to gain knowledge on issues discussed.
CHAPTER TWO
LITERATURE REVIEW
DEFINITION OF MATERIALS MANAGEMENT
Over the years a number of exponents have expressed various views as what materials management entails. The following are just few of such views.
Donald and Lammar (1997) describe materials management as practical in business today “as a conference of traditional materials activities bound by a common idea – the idea of an integrated management approach to planning, acquisition, conversion, flow and distribution of production materials from the raw materials to the finished product state”, they also said that materials management concept advocates the assignment of all major activities which contributed to material’s cost to a single materials management department. This includes the primary responsibilities which are generally found in the purchasing department, plus other major procurement responsibilities, including inventory management, traffic, receiving warehousing, surplus and salvage and frequently production planning and control.
They went further to say that the specific form of materials management that is most appraised for one organization may not be best form for another organization. In practice, for most firms, the production planning and purchasing schedules overlaps significantly. Unfortunately, this frequently produces a continues source of conflict.
One of the paramount advantages of materials management is that it forces coordination between purchasing and production control. Purchasing and production control are both responsible for the on-time delivery of production materials. Division of this authority between two different operating units inevitably leads to conflict. When materials do not arrive on time production control is seldom satisfied to work through the purchasing department. Such conflict can be resolved much more easily when production control and purchasing report to a single boos – the materials managers.
They conclude that substantial benefits will accrued when inventory management value analysis, receiving stores and surplus and salvages placed in materials management.
In view of the above, the researcher’s view, the work and contributions of Donald and Lammar Lee on what materials management because of how it is being implemented in various organizations today. Some elements are lacking in their concept of materials management.
Alijian (1998) define materials management “as that aspect of industrial management which is concerned with all of the activities involved in the acquisition and use of all materials employed in the production of finished goods. The activities may include production control, inventory control, purchasing, expedition, shipping scarp and surplus disposition and customer services. However, the term materials management is frequently used when only some of these functions are included.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design used in any study are highly important for its success, however at the time of conducting this research, the researcher found it more appropriate and convenient to make use of both descriptive and analytical research design. The research was done to ensure that all possible findings were adequately represented by the applications of appropriate tools of management. Thus, descriptive research design consist of a set of patterned information, analyzed, summarized and interpreted along to suit the area of study.
RESEARCH POPULATION
The population of the study is NTC plc kaduna plant. Thus the entire staff of this plant constitute the study population and the firms total staff strenght is two hundred and eighty (280).
CHAPTER FOUR
DATA ANALYSIS AND TEST OF HYPOTHESIS
TEST OF HYPOTHESES
Hypothesis one
H1: There is a relationship between the effective management of materials and the level of productivity in an organization H0: There is no relationship between the effective management of materials and the level of productivity in an organization
CHAPTER FIVE
RECOMMENDATION AND CONCLUSION
CONCLUSION
This research paper found out that there is a significant relationship between materials management problems and the frequent breakdown of the plant. This can be expected since the existence of materials management problems result in the breakdown of the plant. Out-of stock and lack of spare parts interrupts production and hinder profitability.
This research has shown how profitability can be achieved via effective management of materials with particular attention to sourcing, receiving, storing and issuing materials.
Prudent management of materials reduces depreciation, pilferage and wastages and ensures availability of materials.
We would like to re-emphasize that for a firm to achieve profitability the goal of materials management should be properly planned.
It is clearly significant to manage all materials from the creation stage to the construction stage. The waste of materials should also be minimized throughout the construction stage in order to avoid loss of profit. Failure in managing site material and inventory will result in cost overrun, postponements in project completion and reduce overall project performance. Better management among purchase and finance department will help in attaining greater efficiency in Inventory management. Firm, employing proper and efficient material management system can have increased their overall efficiency by 35%.
RECOMMENDATIONS
Based on the findings from the study is on the effect of materials management on the productivity of an organization and in light of data collected by personal observation and though the questionnaire conducted in the organization; it is necessary to offer the following recommendations.
- Material supply should be optimum to avoid “stock out” while work in process. ii. Organizations should always take into knowledge the cost of production or price of raw materials before arriving at selling price
- There should be good and effective record system of materials for the operations of the organization especially as it affects production. iv. Rate of spoilage and wastages should be minimized as much as possible and ensure that products pass quality control.
- There is the need to train staff in the area of material management to further enhance the knowledge of the job.
- Organizations should computerize their material management system in line with the global changes in order to be able to track the movement of materials in the store.
- It is also recommended that further studies be carried out in the area of material management considering the importance to profitability of an organization.
REFERENCES
- Wanjogu, H., Iravo, M. &Arani, w.(2015). Factors affecting materials management: a survey of small and medium-sized manufacturing firms in industrial area Nairobi, Kenya, Jomo Kenyatta University of Agriculture and technology.
- Wild, T., (2002). Best Practice in Inventory Management 2nd edition. Oworldxford: Butterworth Heinemann (imprint of Elsevier).
- Ondiek, G. O. (2009). Assessment of Materials Management in the Kenyan Manufacturing Firms.Exploratory Survey of Manufacturing Firms Based in Nairobi. Journal of Social Sciences, 22(8), 88-110.
- Inyang, E.E., Inyang, F.B and Basil, G. (2013). Corporate Profitability through Effective Management of Materials.European Journal of Business and Management.
- Monday, J.U. (2008). Effects of efficient materials management on performance of firms in food % beverage manufacturing industry in Nigeria.MBA Dissertation, ObafemiAwolowoUniversity, Nigeria.
