THE EFFECT OF MATERIAL MANAGEMENT TECHNIQUE ON PRODUCTION PLANNING PROCESSES

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THE EFFECT OF MATERIAL MANAGEMENT TECHNIQUE ON PRODUCTION PLANNING PROCESSES

ABSTRACT

The aims and objectives of this work is to examine “The Effect of Materials Management Techniques on Production Planning Process with reference to United Nigeria Textile Plc (UNT Plc), Kaduna… Materials management is open to so many problems in industrial sector in Nigeria, especially when theory and practice are compared. Among the problems facing materials management in Nigeria, which is also peculiar to the company which the project is based on are: Multiplication of materials management principles, unprofessional/unskilled personnel, given the task of material manager. The writer looked at the opinions of different notable authors and academic writers on the topic that are related to the subject matter. It was deduced that those academic writers are of the same view as far as materials management is concerned. In this research study, I will attempt to look at the following points:

· The purpose of the study, historical background, statement of the problem, limitation and scope of the study, rational for the study.

· Literature review on materials management, production planning, materials control, purchasing, stock ordering and types of stock taking, benefit of stock taking.

· Methodology, research methods and approach used, justification for approach used.

· Presentation and analysis of data, and also test of hypothesis.

· Summary of finding, conclusion and recommendations.

CHAPTER ONE

INTRODUCTION

Material management is an integrated management approach to the planning, purchasing, ware housing, stock keeping allocation and movement of needed material from point of source to user department. It can also be defined as the process of management of material which involves purchasing, storage control and transportation.

Material management is a relatively new discipline. The 20th century’s rapid growth and the significant industrial development has played a major role in the relationship and effective management of the traditional 5Ms which are: Machine, material, men, money and management.

The famous industrial revolution made material(s) the largest elements cost in any organization.

At the wake of the 20th century many firms had recognized the importance of material, and several material activities like purchasing, ware housing, stock control and distribution carried out by the organization.

By the 1950 firms have identified the need for effective coordination or integration of such material activities and material organization tools concept like those of physical distribution movement, logistic movement and material management as a means to check, co-ordinate and control the firm’s material activities.

Globally, there is no clear definition on the area of material management. According to M.A. Tokunbo (1987) defines it in the context of store and material control as compensation for the effective co-ordination of the principle element.

ü Identifying, classifying and coordination of stocks

ü Provision, inventory control and stress accounting

ü Store house layout and organization

ü In house storage handling and distribution

ü Presentation of materials in store.

To these, material management has the duty to apply the most suitable technique in the most effective way to ensure the minimum total cost consistent with providing the service required.

The American production and inventory control; society (APICS) defines material management technique and production as the grouping of management function related to the complete cycle of material flow from the purchase and internal control of work in the latter term, traditionally is limited to internal control of production materials.

In examining the whole definition one could easily notice that they are not quite different from one another only the way of approach and little difference in terminology. In this respect (material and resource) or material management is not only limited to buying and storing as many view it but involves also purchasing, transport and distribution planning and continuous monitoring.

1.1 BACKGROUND OF THE STUDY

The subject matter of this study is the effect of material management technique on production planning process in United Nigeria Textile Plc (UNT Plc), Kaduna. The research is meant to be of great importance to various enterprise and organization wishing to conduct a detailed study into stores and purchasing material hence, the research aims at identifying the problems associated with efficient operation in an organization, the research is interested in knowing the effect of material management technique on production planning process as practicable in an organization. Due to sophistication in technology coupled with socio-economic and political instability, production processes face complex problems that needs to be addressed by management ensuring that materials are allocated and used in the most efficient and effective manner.

The material management technique on production is also to identify problems by guiding against supb-optimization of the material management techniques in production planning processes, for this the researcher suggests that which will achieve optimal result quickly, cheaper and acceptable.

Today materials are the live-wire of every organization be it public or private hence no organization can survive without material, its availability, distribution and transportation and delivery at the right amount and quality is paramount.

1.2 STATEMENT OF THE PROBLEMS

United Nigeria Textile Plc (UNT Plc), Kaduna. is faced with problems in relation to utilization of the effect of material management being the utmost thing that are needed to be utilized effectively. The problem facing material management especially United Nigeria Textile Plc (UNT Plc), Kaduna. are mainly under stocking or over stoking of material, stock obsolescence breakage and the economic order quantity.`

Due to the fact that the impact is to be felt positively in the society by making themselves’ productive in every area of inputs.

But despite the effect observed there have been general apathy, ignorance and lack of interest by many people and the government.

1.3 OBJECTIVES OF THE STUDY

Specifically, the aims and objectives of this study are:

i. To assess the impact of material management on organizational performance.

ii. To appraise and further appreciate the significance of material management in a manufacturing industry.

iii. To identify and ascertain some of the problems poised by materials management in Nigerian United Nigeria Textile Plc (UNT Plc), Kaduna.

iv. 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.

1.4 STATEMENT OF HYPOTHESIS

The following hypothesis was formulated for this study:

H0: Material management does not have any significant impact on organizational performance.

H1: Material Management does have significant impact on organizational performance.

1.5 SIGNIFICANCE OF THE STUDY

A research of this nature will be incomplete without highlighting the importance of this study.

Firstly, the researcher as a student aspiring to be a material executive in the future sees this study as an opportunity to fully investigate into the field of materials management to see the challenges therein.

Secondly, the study is needed as a pre-requisite for the award of the Higher National Diploma in Production and Operation Management (POM).

Furthermore, the researcher has also undertaken the study in order to gather necessary information and suggest solution to the problem facing materials management in United Nigeria Textile Plc (UNT Plc), Kaduna.

1.6 SCOPE OF THE STUDY

The subject matter “Materials Management” has an area of coverage within its concept, i.e. theory and practice in the private sector. This would also include purchasing, stocktaking and stock checking of materials.

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