CHAPTER ONE
INTRODUCTION
1.1 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 purchasing,
supplier, management, material handling within the facility and functional
areas in a manufacturing operation that is critical to the overall productivity
of the company is material management. The material management involves
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 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 affect 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. The Operation Manager must work around the system
till everything 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 A Study of
Pz Cussons, Aba 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 eliminates
the afore mentioned inventory inaccuracy and inhibitor. There are best methods
available to eliminate the impact up on maintaining an interrupted flow of materials
for production. Base on above statement, this research seek to examine the
issue of material management and the effect it has on an organization using A Study of
Pz Cussons, Aba as the
case study.
1.3 Research
Objective
The main
objective of this work is to study Material Management in a Manufacturing
company using A Study of Pz Cussons, Aba as a case study.
The specific objectives include;
i.
To
examine the level of efficiency and product improvement in material management.
ii.
To
investigate whether the material management practice permit high stock turnover
validation.
iii.
To
proffer useful suggestions and ideas on how to effectively manage materials in
an organization (Sander 2002).
These
objectives are intended to be addressed in this study.
1.4 Research Questions
i.
To
what extent does material management contribute to an organization performance?
ii.
Does
specification on materials have any (positive or negative) on the effective
material management.
iii.
To
what extent does effective material handing help in the enhancement of
uninterrupted production?
1.5 Research Hypothesis
Hypothesis
One
Ho: there is
no relationship between material management and organizational performance.
Hi: there is
a relationship between material management and organizational performance.
Hypothesis
two
Ho: Material
management has no positive impact on the effective organizational management.
Hi: Material
management has positive impact on the organizational management.
1.6 Significance of the Study
The
significance of the study is measured by its relevance to solving the problem
of Material Management in Pz Cussons,
Aba. The
project will be of benefit to the entire management team of Pz Cussons, Aba, as it will expose to
them potential benefits of adequte management of materials in the company. The
project with be useful to various educational institutions for gaining greater
knowledge and understanding of the benefits in management of materials in a
manufacturing company. The project will be useful to the general public,
organization companies etc that may have interest in the project.
1.7 Scope
of the Study
This research
study centred on materials management in a manufacturing company using Pz Cussons,
Aba as a case study. It
covered such areas as storage, transportation procurement, materials handling
planning control & value engineering etc. The research is also intended to
covers information to be drawn within the domain of Pz Cussons,
Aba.
1.8 Limitations of the Study
Some limitations and factors in this research study
are as follows:-
- Time Constraints: The time required for the research and the submission of this work is very short and the researcher was unable to go through all manufacturing companies.
- Financial Constraints: Finance which is the most important resource for this work was not readily available.
- Distance Constraints: Due to the distance between the researcher’s school and the case study, some vital information could not be gotten as at when due.
- Non Response of Some of the Respondents: The management of Ama Breweries prohibited its employees from giving out information about the company to outsiders without adequate permission from the management and even when this permission was obtained at the long run, much vital information were not revealed because they were regarded as the privacy of the company.
1.9 Definition of Terms
- Inventory: This is a record of a business’ current assets. It can also be described as the merchandise or supplies held or in transit at a particular point in time