TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Content vii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 2
1.2 Statement of the Study 3
1.3 Objective of the Study 3
1.4 Research Question 4
1.5 Research Hypothesis 4
1.6 Significant of the Study 4
1.7 Scope of the Study 5
1.8 Definition of Relevant Terms 5
1.9 Plan of the Study 6
1.10 Historical Background of the study 7
CHAPTER TWO:
LITERATURE REVIEW
2.0 Introduction 9
2.1 The Conceptual Framework 9
2.2. Theoretical Framework 11
2.3 Empirical Framework 18
CHAPTER THREE
3.1 Research Design 20
3.2 Sample and Sampling Techniques 20
3.3 Procedure for data collection 26
3.4 Constraints in data collection 27
3.5 Population size 28
3.6 Method of data analysis 29
CHAPTER FOUR
4.1 Introduction 29
4.2 Data Analysis 30
4.3 Testing of Hypothesis 30
CHAPTER FIVE
5.1 Discussion of Findings 31
5.2 Conclusion 31
5.3 Recommendations 32
The Questionnaire 32 References 32
CHAPTER ONE
INTRODUCTION
- Background to the Study
As a manager in a manufacturing company, It is more necessary than ever to improve the overall productivity of the operation while such improvement requires an integrated effort involving all functional areas of the facility, specific actions are required within each functional area one of the functional areas in a manufacturing operation that is critical to the overall productivity of the company is material management. The material management involves purchasing supplier management, material handling within the facility and extensive coordination among all functional areas of the facility in conjunction with material management sapiens, Jazayeri (1998).
Once the production process is under way the attention of the operations manager shifts to the daily activities of material management the daily composes materials purchasing, inventory control and work scheduling.
Material management has a philosophy close to that of a modern marketing. In marketing the organization and its staff has to think in a marketing oriented way for example how will customers react to product change? What will be the effect on sales if we alter the packaging? With material management the same principle apply the organization and its entire staff have to consider their decision in relation to how they will after it the material side of the business topics under material management include purchasing, control, transportation, material production, planning stores, inventory control Bret (2001).
Therefore, the main point of materials management is to satisfy the need to all operating system such as manufacturing production line, promotional activities and physical distributor times. It is the operation as the customer, manager must work around the system till everything his and needs are satisfied. The material manager organization and it entire staff should however consider their decision in relation to how they will affect the materials side of the business. It is in view of the above stated facts that this study is being carried out using 7up Bottling Company PLC Ilorin plant a manufacturing company to study the issue of material management.
1.2 STATEMENT OF RESEARCH PROBLEM
The major challenge that material manager face is maintain a constituent flow of materials for production. There are factors that inhabit the accuracy of inventory which results in production shortages premium freight and often adjustments.
According to the journal of Business logistics (2009) vol1 22 part 2. The major issues that all material managers face are incorrect bills of materials, in accurate cycle counts, unreported scrap shipping error, receiving errors and production reporting errors material managers have strived to determine how to manage these issues in the business sectors of manufacturing since the beginning of the industrial revolution. Although there are no known methods that eliminate the afore mentioned inventory accuracy, inhibitor there are best method available to eliminate the impact up on maintaining an interrupted flow of materials for production. Reluctance can be reduced and effectiveness when service point are clustered to reduce the amount of reluctance. An effective material management program can also revolve island approaches to shipping, receiving and vehicle movement solutions can include creating a new central loading location as well consolidating service areas and docks from separate building into one. Developing better circulation infrastructure also means reevaluating thick delivery and service vehicle routes. Base on above statement that this research seek to examine the issue of material management and the effect it has on an organization using a manufacturing company as the case study.
1.3 OBJECTIVE OF THE STUDY
- To examine the level of efficiency and product improvement in material management.
- To investigate whether the material management practice permit high stock turnover validation.
- To proffer useful suggestions and ideas on how to effectively manage materials in an organization (Sander 2002).
This objectives are intended to be addressed in this study.
1.4 RESEARCH QUESTIONS
- To what extent does material management contribute to an organization performance?
- Does specification on materials have any (positive or negative) on the effective material management?
- To what extent does effective material handing help in the enhancement of un interrupted production?
1.5 RESEARCH HYPOTHESIS
Ho: material handing does help in the enhancement of un interrupted production.
Hi: material handing help in the enhancement of un interrupted production.
Ho: specification on materials have any no (positive or negative) on the effective material management.
Hi: specification on materials have any (positive or negative) on the effective material management.
Ho: material management doesn’t contribute to an organization performance
Hi: material management contributes to an organization performance
- SIGNIFICANCE OF THE STUDY
A research of this native is significant in sense that the area of material management is one that requires constant research. It is belief that the study will throw light on the essence and importance of material management in an organization and the choice of 7ups bottling company as my case study is due to the fact that it is a large scale manufacturing company which the setup provides for the study of this nature.
1.6 SCOPE OF THE STUDY
This research study centred on materials management in a manufacturing company. It covered such areas as storage, transportation procurement, materials handling planning control & value engineering etc. the research is also intended to cover a specified period of time range from 2009-2011 also information are going to be drawn within the domain of 7up Bottling company Plc.
1.7 HISTORICAL BACKGROUND OF THE STUDY
Seven up bottling company, Plc, (SBC) was founded by a Lebanese in 1959 and on October 1st 1960, production of carbonated soft drinks began at the first plant, then located at Ijora Lagos. On the 1st day of production, the company sold a total of 24 crates of its product in other words, a total of 576 bottles were sold. Although the number didn’t win the company any award, it certainly was a significant accomplishment of the company.
In order to create a favourable climate for her smooth operation, the company had to become involved with the community. SBC, PLc was the first to introduce wreathing in Nigeria by sponsoring the late and great Mike Bamidele who won a world little SBC, Plc was involved in the first miss Nigeria beauty competition, which has continued to grew in size and importance over the years.
Till date the company sponsors many sporting and special activities, amongst which are the Pepsi football academy, Pepsi professional football league, seven up premier basket ball, Miranda school programme since these are the other brands types of the company (Pepsi & Mirinda).
The greatest period of growth for SBC Plc. Began in the early 80’s with the Ibadan plant 1980, Ikeja a plant in 1981, the Kano plant in 1985 the Aba plant in 1989 the acquisition of John holt soft drinks with the Kaduna plant in 1989, Benin plant in 1992 and Enugu plant in 2002, making the total number of depots now to be 37 several depots and dealers in all parts of the country. The present range of products include seven up (up) Pepsi Mirinda orange, and the lastest of its range of products is Mirinda fruity, which was lauched in the year 2002 and then mountain dewin 2008.
Source: Personnel and Administrative Department of Seven up Bottling Company Plc. Ilorin Plant.
1.8 DEFINITION OF TERMS USED
Organizational Performance {OP}: it comprises the actual output or result of an organization as measured against its intended outputs {or goals and objectives}. It is also an analysis of a company’s performance as compared to goal and objectives.
Material Management: According to Apic dictionary material management means the grouping of management functions supporting the complete cycle of material flow from the purchase and internal control of production, material is to the planning and control of work in process to the warehousing slipping and distribution of the finished products.
Raw Materials: and bought in items these are processed and value added to them to provide the required finished items.
Quality Improvement {QI}: it is a system that provides a structured problem- solving process for identifying the root cause of a problem and also for identifying a root cause of a problem and also for identifying a remedy for the problem.
Inventory Management: This is the part of operation management concerned with discoursing and maintaining the optimum level of inventory investment.
Material control: is the process of ensuring stock held by the organization is supplied to those parts of the operation that requires them i.e. production, sales, distribution, engineering etc bearing in mind the factors of time, location, quality, quantity and cost Robet (2003).
Improvement {CI}: is defined as the relentless pursuit of improvement in the delivery of values to customer.
Customer Focus {CF}: can be defined as the degree to which a firm continuously satisfies customer needs and expectations. A successful firm recognizes the needs to put the customer first in every decision made {Philips, 1995}.
Employee Participation and Involvement {EPI}: is the processing of empowering the members of the organization to make decision and to solve problems appropriate to their levels in the organization (Bangeeta and Banwe, 2004).
Supplier Quality Management (SQM): It can be defined as the set of suppliers related quality management practice for improving suppliers’ quality of product and services. This is exemplified by firm’s supplier partnership, product quality as the criterion for supplier section, participation in suppliers, communication with suppliers, understanding performance, and supplier quality audit (MANN, 1992, ZHANG, 2009).
Top Quality Management (TQM): It is a management approach center on quality, based on the participation of an organizations and aiming at long term success, it is also a philosophy for managing an organization in a way which enables it to meet stakeholders need and expectation efficiently and effectively, without comprising ethical values.
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