AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING ORGANIZATIONAL PRODUCTIVITY

AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING ORGANIZATIONAL PRODUCTIVITY

(A CASE STUDY OF KADUNA REFINING AND PETROCHEMICAL LTD.)

 

 

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ABSTRACT

Material management is a strategy for achieving organizational productivity. The researcher started this research work by introducing the subject matter, background of the study, statement of the problem, objective of the study, significance, and scope of the study were highlighted also the researcher formulated hypothesis which form the basis for the research. In the second chapter the researcher reviewed the work of various authors on the subject matter, the concept of management, the significance of material management concept, the material flow system, basic materials functions determination of materials need material cost reduction strategies were discussed in the chapter. The method used in carrying out the research was discussed in chapter three, the method of gathering data, sampling and sampling techniques, justification of method used and method of data analysis. The data gathered in chapter three was analysed in chapter and hypothesis formulated in chapter one was tested using chi-square. Lastly the researcher draw a summary and conclusion for the research and comes up with a recommendation among which the researcher recommended that an adequate storage facility conducive for modern material, management should be provided to help the store perform it service function effectively.

 

CHAPTER ONE

1.0   Introduction     –      –      –      –      –      —     –      1

1.1   Background of the study  –      –      –      –      –      1

1.2   Statement of the General Problem   –      –      –      3

1.3   Objective of the study     –      –      –      –      –      4

1.4   Statement of the Hypothesis – –      –      –      –      5

1.5   Significance of the study  –      –      –      –      –      5

1.6   Scope of the study   –      –      –      –      –      –      6

1.7   Limitation of the study     –      –      –      –      –      6

1.8   Historical background of the case study   –      –      7

1.9   Definition of terms   –      –      –      –      –      –      9

 

 

 

CHAPTER TWO- Literature Review

2.0   The concept of material management      –      –      12

2.1   Material management defined  –      –      –      –      12

2.2   The significance of material management concept   17

2.3   The material flow system –      –      –      –      –      18

2.4   Basic material function    –      –      –      –      –      20

2.5   Determination of material needs      –      –      –      23

2.6   Material cost reduction strategies    –      –      –      25

 

CHAPTER THREE: RESEARCH METHODOLOGY

3.1   Research design      –      –      –      –      –      –      30

3.2   Research population –      –      –      –      –      –      30

3.3   Sample size and sampling procedures     –      –      31

3.4   Method of gathering data –      –      –      –      –      31

3.5   Justification of method used    –      –      –      –      33

3.6   Method of data analysis   –      –      –      –      –      33

3.7   Justification of investment used       –      –      —     34

 

CHAPTER FOUR:    DATA PRESENTATION

4.1   Data presentation    –      –      –      –      –      –      35

4.2   Data analysis   –      –      –      –      –      –      –      35

4.3   Test of hypothesis    –      –      –      –      –      –      45

CHAPTER FIVE – Summary Of Findings, Conclusion Recommendation

5.1   Summary of finding –      –      –      –      –      –      47

5.2   Conclusion       –      –      –      –      –      –      –      48

5.3   Recommendation     –      –      –      –      –      –      49

Bibliography     –      –      –      –      –      –      –      52

Appendices

 

 

 

CHAPTER ONE

1.1   BACKGROUND OF THE STUDY

The need for the production function is to make up with the growing complexity of industrial needs has brought about the concept of material management.

 

Modern management has expanded the traditional scope of purchasing and procuring to cover the entire material management process. Thus Lee and Dubler (1983) define material management as a confederacy of traditional material activities bound by a common idea, and of intergraded management approach to planning. Acquisition, conversion, flow and distribution of production material from the raw material state to the finished product state.

 

The concept also provide for delegation of responsibility and authority with regards to procurement and supply of material. The concept also recognizes the importance of the principle of accountability by providing a management approach which is responsible for all decisions.

 

Through material management, there is relatively recent concept much through has been given to it particularly since World War II, when industries all over the world were awoken to the fact that tremendous economies could be achieved by sufficient material management. The concept is today relevant to business organization because they will have a centralize body responsibility for buying with the overall advantage of procuring standard material at possible bulk. Disco unit and obtaining special vender relation. It means that spending valuable money is in the heart of people who are trained and competent for this job.

 

Frequently, it is found that material are expensive and in order to reduce overall costs, it require the close cooperation and co-ordination of material and other user department to ensure that material ordered are made to arrive only when they are needed, the benefit of this approach is that of cost reduction and maximization of the company’s profit.

 

Thus, the growing need for efficient operation of material management is increased in recent time.

 

1.2   STATEMENT OF THE GENERAL PROBLEM

As earlier indicated, the significance of material management has been recognized by most industries in Nigeria, now a days, in most companies in Nigeria, attempts have been made towards operating on intergraded approach to their material problems thus, one often finds in such companies such position. As supplier materials manager, material controller etc yet often is critical analysis of this system of operation. One often

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