IMPACT OF MATERIAL HANDLING IN A MEDIUM SIZED MANUFACTORY INDUSTRY;

(Business Administration and Management)

IMPACT OF MATERIAL HANDLING IN A MEDIUM SIZED MANUFACTORY INDUSTRY

(A CASE STUDY OF PREMIER BREWERY)

 ABSTRACT

            In the course of study on the standardization of material input in Plastics Manufacturing Industries in Delta State (A case study of Unity Plastics Limited, Agbor Delta the researcher based on the analysis, interpretation of the data collected and final answer to the researcher questions made the following findings.

            It was discovered that the company undertakes standardization of materials input through that; the programmed is left in the hands of the production department with the help of the general manager.

            It also observed that the industry lets the functions of sourcing quality assurance and simplification in the hand of production department without acknowledging that such functions could be done more efficiency and economically by the purchasing department.

            The unity Plastics Limited Manufactures only Plastics and because of this engagement on only product line in the company may be affected in case of any decline in its demand.

             I t was equally discovered that company understudy uses about a half percentage of locally sourced raw materials for its production and this has made the company to be surviving despite the high tariffs being imposed on the raw materials by the government over the years past.

TABLE OF CONENT

CHAPTER ONE

 

1.       INTRODUCTION

1.1              General Back ground of the subject matter

1.2              Problems Associated with the subject matter

1.3              Problems (S) that the study will concerned with

1.4              The Importance of the studying the area

1.5              Definition of the important terms

1.6              Chapter reference using APA method.

 

CHAPTER TWO

2.       Literature review

2.1              The origin of the subject area

2.2              Schools of thought within the subject area

2.3              The school of though relevant to the problem of study.

2.4              Different methods of studying the problem

2.5              Summary

2.6              References.

CHAPTER THREE

3.      Conclusion

3.1              Data presentation (Highlights of the study).

3.2              Analysis of the data

3.3              Recommendation

3.4              Conclusion

3.5              References

CHAPTER FOUR

CHAPTER FIVE

CHAPTER  ONE

INTRODUCTION

THE GENERAL BACKGROUND OF THE SUBJECT

1.1              MATTER

To begin with the researcher which to start by stating that

Standardization is a concept and had therefore to be defining for efficient appreciation of what it is all about.

            Standardization is the process of formulation and applying rules for an orderly approach to a specific activity for the benefit and optimum over all economy taking due account of functional condition and safety requirement.

            Consciously or unconsciously, man has always applied standardization in all his activities, all in an effort to simplify things and make life easier.  Into days dynamic environment there are many factors that make it necessary for all manufacturing organizations especially e plastic manufacturing ones to introduce standardization of materials input for the purpose of obtaining their supplies and designs.  Introducing standardization is not just a slogan or mere determination of specification but a broader and more inclusive activity since the task of purchasing includes, procurement of materials inventory control, profit creation encouraging organizational growth through the achievement of the best value for each money spend etc. hence, the purchasing executive must be future oriented i.e. must anticipate change, for east the direction and intensify those changes through standardization techniques and then adjust the organizational purchasing programmers to these changes.  All the efforts are towards objective attainment which is the watchword of every organization whether profit or non-profit oriented organization.  This is also the more reason why every organization tries to economic resources whatever may be its views and philosophies and which – ever means their goals and objectives are to be achieved.

            Agbo plastics for instance is a manufacturing concern tries to maximize productivity and efficiency.  This concept of standardization applies to all aspects of the economy especially the manufacturing ones.  In the process of achieving the laid down goals and objectives.  Modern techniques in business demands that planned and defined systems and tools be formulated and adopted to meet the organizational requirements one of such tools is the standardization of material inputs.

            The application of standardization of material in Nigeria however, is highly neglected because whatever the suppliers of product brought in the market must be purchased provided it satisfy the intended purpose at that time, as result most of the organization pay-a-drat cars to the importance of standardization.

            Standardization of materials inputs act as a guide to business executives by controlling the scope of procurement to realistic approach to its goals and objectives and any deviation or variance from laid down programmers can be defected and corrected at the early stage.

Standardization control purchasing efficiency and shows as management tool how it contributes to materials efficiency and also to what extent this tool is to be used to increase profitability.  As a course, standardization achieves one right quality and this quality is the objective and operative word in purchasing.  This research how ever identifies the problems and prospective of material input standardization in a manufacturing with emphasis on the managerial and technical application of the tool to achieve the organization goals.  Like the Unity Plastics Industry Limited Agbo Delta State, located at N0. 241 Off Owa Alero Road, Ika North East Local Government Area Agbor is a subsidiary of H.E. Erigbuem Group of  Company Limited Agbor.

            Industry took off production in 1980  (20 years ago) and since then it has been producing industrial plastics, packaging wares for brewery industries, bottling companies paint manufactures and house hold use.  About percent (50%) of its raw materials according to the production manager is source internally while the rest are acquired from external suppliers.

1.2              PROBLEMS ASSOCIATED WITH THE SUBJECT MATTERS

Today’s dynamic business cannot admit guess work in establishing a

Procedure for design specification and quality adherence.

            Most private and public companies in Nigeria have failed to recognize the need to maintain an adequate source of supply and an acceptable yard stick whereby material procurement can be measure and quality determined conformance with the expected design and quality intended.

            Since standardization process in an orderly approach, failure to carry out the standardization process in an orderly will make purchasing not to be efficiency, the situation whereby the purchasing executive will not purchase the right quality at the time and at lower prices, lower processing cost, and lower inventory cost.  This will bring about loss to the organization instead of profit.  Every company, however small are to possess and maintain company standard which are generally reviewed from time to time and harmonized with the national standard, and there are departments that are affected by stand decision in manufacturing organization, and this known as committee.  Normally this committee is made up of representative from engineering, purchasing, production, marketing and transportation.  Ineffective performance of these representatives will affect productivity of the organization.  The situation whereby the purchasing executive which is assigned a major role in the programmed purchase a wrong material this will affect production of the organization since about 65% of most of the manufacturing companies expenditure lies in material input.

1.3       THE PROBLEMS THAT THE STUDY WILL BE

            CONCERNED WITH

            The problems that the study will be concerned with as follows:

1.         To determine whether a Plastic Manufacturing Industry like Unity

            Plastic Limited Agbor uses standardization in the procurement of their

            Material input.

 

2.         To find out the type of standard use and if non and why it is

Neglected.

3.         To establish the percentage of their annual budget allocated to

            material.

4.         To ascertain whether standardization of material input is used in their

            policy formulation with regards to purchasing contract.

5.         To determine other functional purchasing technique is use in the

            Organization and source of data.

 

6.         To determine whether this singular activity have achieved cost

            reduction for this manufacturing company.

 

1.4       THE IMPORTANT OF STUDING THE AREA

            Due to the fact the topic under review is not practiced universally in most of the Plastics manufacturing Industries, the researcher however decide to survey only the Unity Plastic Agbor which uses about 65% of local raw materials and parts for operation.

            Agbo Plastic for instance a manufacturing concern tries to maximize productivity and efficiency.  This concept of standardization applies to all aspects of the economy especially the manufacturing ones.

1.5       DEFINITION OF IMPORTANT TERMS

1.                  PRODUCTIVITY:   Is the rate at which a worker, a company or a country produces goods and the amount produced compared with how much timework and money is needed to produce them.

2.                  INDUSTRY:  It is the production of goods from raw materials especially in factories, it involved in producing a particular thing or in providing particular service.

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