THE IMPACT OF EFFICIENT MATERIAL MANAGEMENT ON THE SUCCESS OF MANUFACTURING COMPANIES
(A CASE STUDY OF SUPERTEX LIMITED, KADUNA)
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
background to study
statement of problems
objectives of the study
statement of hypothesis
significance of the study
scope and limitations of the study
definition of key terms
organization of work
end of chapter references
CHAPTER TWO: LITERATURE REVIEW
2.2 Material Management Definition
2.3 Material Management Functions
2.4 Material Management Techniques
2.5 Material Management and Cost Control
2.6 Control Techniques in Material Management
2.7 Material Management and Purchasing
2.8 Material Pricing and Valuation Method
2.9 Material Handling
CHAPTER THREE: RESEARCH METHODOLOGY
3.2 Research Design
3.3 Area of the Study
3.4 Sources and Method of Data Collection
3.5 Population of the Study
3.6 Sample and Sampling Techniques
3.7 Validation of Instrument
3.8 Method of Data Analysis
CHAPTER FOUR: DATA PRESNETATION AND ANALYSIS
4.2 Data Presentation
4.3 Interpretation of Data
4.4 Testing of Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Summary of the Study
5.4 Suggestion for further research
BACKGROUND TO THE STUDY
Supertex limited was incorporated in 1982 and commenced its production in 1983. It completed the installation of additional new machinery and generator plants in 1986, Supertex limited has installation fire spindles in its spinning department, which was the first phase background plant. In the same year, the company completes its final printing expansion programme to reach a production capacity of 28.8 million maters perineum. The main products of Supertex limited are real wax print; its reputation for high quality is recognized by the consumer and as well known in many countries. This not only strengthens its local business but also makes a foreign earning. In 1992, Supertex limited installed 400 capacities of 900,000 meter per month (grey Baft), the objective of this weaving in the department is to fill the gap between spinning and finishing plant in order to produce fault free grey cloth, either for self use or export to United States.
At the inception, Supertex limited started with unauthorized share capital N20million of which three institutions have some share unauthorized institution have some share.
Those institutions include:-
Unites Nigeria Textile 25%
China Dyeing Cooks 15%
All Nigeria Foundation 45%
Supertex limited (its management) hoped that various measures introduced by the deferral government of Nigeria to achieve a health rate for Nigeria, the revitalization of the energy sector and the recent procurement bearing the important of textile material into the country aimed at protecting local industry and increasing capacity utilization would yield good result for the company in the nearer future.
It is not easy, if not completely impossible for a home, an organization and a nation to successfully service and attain to its objections without taking into consideration material and other resources it poses and how these materials are efficiently manages, therefore, materials are regarded as the life blood of every organization in the economy of every nation, requires proper attention of manager and government officials respectively.
As the human body requires flow and proper regulation of blood to keep it healthy, so does every organization especially manufacturing companies require efficient material management of material resources, it is discovered that most organizations takes care of cash than material resources.
According to Omotola Veronica (1999:13) cash requirement of an organization (especially manufacturing enterprises is just 30% material take 60% and others from 10% of total expenditure, but in contrast to this facts, some organizations give more security to cash than their material resources, this is not security to be so. Material which take the lion share of organization resources should be given adequate security, efficient management and control to avoid overstocking or stock out which can lead to unnecessary tying down of capital or stop in production respectively if encouraging to discover that in recent times, establishments both in public and private sector are beginning to realize the importance of material management. Such establishment has realized that no organization can operate efficiently without proper management of its inventory from the stage of acquisition through the period of storage and their usage in the operational areas to their final consumers.
According to Zenze G.J. (1968:205) material management is a concept which brings together under one management the responsibility of determining manufacturing requirements, scheduling the manufacturing of process and processing and restoring disposal of material. It would also be said that material management is concerned with control of activities involves in the acquisition and affective usage of all materials employed in the production of goods.
The management and keeping of aversion in good condition as the sole responsibility of the activities grouped under their umbrella of material management differs from one organization to another. It is therefore a challenge to all business researchers (these researchers inclusive) to make necessary efforts to discover and disclose all useful approaches which are yet to be maximized buy the material management in private and public manufacturing companies with a view to increasing efficiency and profitability in organization.
1.2 STATEMENT OF THE PROBLEM
The success of any organization (as earlier stated) depends to a large extent on the availability of material and the way they are managed and handled. In carrying out this important function of material management, the material handling department is faced with some difficulties and efficiencies which militate against the efficient management and handling of material under its control, some of these problems or difficulties are enumerated below:-
Lack of labour force with inadequate social awareness lead to mismanagement of materials, when there is no provision for development programme to staff incharge of materials, it prevent them from getting in touch with the rapid changes taking place in science, technology and management techniques that are currently evolving in effective quality control measure such as chemicals, cotton, equipment, etc. also inefficient control measure adopted to supervise the receipts storage and issue of material which lead to wastage.
Lateness in supply of materials needed for production stoppage. This is traceable to the fact that there is often a break in communication between the user department and store department or wide communication gap between the department and organization. Although other scholars have attempted this before, it seems a lasting solution on this background is attracted to the subject with a view to finding a permanent and reliable solution.
1.3 OBJECTIVES OF THE STUDY
The objectives of this research work could be enumerated as follows:-
An attempt to give understanding on material management itself as to what it entails, how it is practiced and what becomes advantageous of management and handling of materials, an attempt to;
Identify the versions problems and limitation facing an organization (especially manufacturing enterprise) as regards efficient material.
Management, recommending possible solution to the problems identified.
Finally, the objectives of this study is to provide the stepping stone for further detailed and indepth study in the field of material management in an organization for researchers or any other interested persons or groups.
1.4 STATEMENT OF HYPOTHESIS
The hypothesis to be tested, accepted or rejected in the course of this study are:-
H0: Efficient material management does not facilitate excellence in management of manufacturing companies
Hi: Efficient material management facilitates excellence in management of manufacturing companies.
H0: Proper adoption of material management techniques does not necessarily enhance organizational efficiency.
Hi: Proper adoption of material management techniques necessarily enhances organizational efficiency.
Finally, it enlightens and broadens people’s knowledge about the subject matter especially the techniques used in material management.
1.5 SIGNIFICANCE OF THE STUDY
The research work is of paramount as it serves drawing the attention of the general public to the impact of efficient material management on the success of manufacturing company. It also givens understanding on material management itself, as what it entails, how it is practiced and what become advantages of management and handling of materials, also with the problems and limitation facing an organization (especially manufacturing enterprise).
1.6 SCOPE OF THE STUDY
This research work aims to cover the definition of material management, which is through literature review. The review of related literature that gives a good account of some definitions and analysis by different authors on the subject matter; it also covers the important objectives and benefit of efficient material management.
Finally, to make recommendations to all the manufacturing companies including Supertex Ltd. which is the case study of this research work.
1.7 LIMITATIONS OF THE STUDY
In the process if carrying out this research work, certain problems where encountered by the researcher which includes:-
Firstly, the problem of obtaining all the necessary information from Supertex Limited, it was not easy for the researcher to obtain all the requested information from the company as some of the management officials felt reluctant to release the information on the notion that information are highly confidential.
Sometimes, the bureaucratic process of the organization makes it difficult to gain access into the company so as to source information from the top officials of the organization.
Secondly, the problems of finance or cost, the cost involved in carrying out the study is quite high coupled with other academic needs, particularly the cost of transpiration to many places on the process of collecting the necessary data.
Thirdly, the problem of time (time factor) was another major constraint as a student to keep to lectures and running around for collection of necessary materials for the research is not easy.
1.7 DEFINITION OF TERMS
Material management: It could be defined as a process of planning, organizing, motivating and controlling all those activities and personnel principally concerned with the acquisition, strong and movement of materials in an organization towards achieving the objectives of the organization.
Manufacturing Companies: Manufacturing companies are referred to as enterprise that engages in activities which companies all phases converting raw material into finished goods.
Efficiency: It can be seen as the ability to obtain maximum output with minimum input of materials and labour without sacrificing accepted quality.
Material Management Function: It is to c-o-ordinate and direct all those activities concerned with the acquisition and control of materials.
Material Management Techniques: Material management techniques is the method of managing material on the store by means of fixing levels for such item which can be subsequently used as a means of indication when actions are to be taken.
1.8 ORGANIZATION OF WORK
This study on the “Impact of Efficient Material Management on the Success of Manufacturing Companies” (a case study of Supertex Limited, Kaduna) is made of five chapters, each chapter is sub-divided into sub-heading.
Chapter One talks about the introduction of the historical background of the study, under the case study of Supertex limited, Kaduna which was incorporated in 1982 and commenced production in 1983.
Chapter Two deals with the literature review of the professionals, different authors in textbooks, journals and other paper presentations. This chapter tries to throw more light on the views of other scholars towards the subject matter being “Impact of efficient Material Management in the Textile Manufacturing Companies”.
Chapter Three deals the general method adapted by the researcher in carrying out the study, it defines the methods adopted in the collection of data, analysis of data and the approached used in interpreting the analyzed data to determine the impact of efficient material management on the success of the manufacturing companies.
Chapter Four presents the analysis of all data collected from Supertex Limited. Here all data were collected and presented in the form of table and analyzed accordingly.
Chapter Five this chapter deals with the summary, conclusion and recommendations and the summary summarizes the following;-
Efficient materials management facilitates excellence in the management of manufacturing companies and proper adoption of material management techniques. The conclusion aspect concludes the activities or concept concerning material management techniques.
The recommendation have conducted a comprehensive study on the impact of efficient material management on the manufacturing companies arrived at a good conclusion.
Omotola Veronica (1999:1:3). Principles of Material Management (3rd Edition); Published by Gbabek Association Ltd, Kaduna.
Zenze Gay J. (1968:205). Material Management and Purchasing (4th Edition) published by McDonald and Evans Ltd.
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