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THE IMPACT OF MATERIAL MANAGEMENT ON ORGANISATIONAL PRODUCTIVITY (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC)
The study focuses on the Impact of Material Management on Organizational Productivity (A Case Study of Nigeria Bottling Company). The methodology adopt in collection of data is both primary and secondary sources of data collection. The study reveals that the success of any business depends on a great extent on the usefulness of raw materials purchase and services to the organization. It was concluded that material management need to be considered greatly in all activities of human being particularly in business organization. It was recommended that expert purchasing people should place interest of organization about the department of their individual interest.
1.1 Background of the Study.
Impacts of material management on organization productivity procure things in order to make the productivity balance. The study or work will therefore dispel or correct people inspection of the materials department and it will help to show the importance of materials on organizational productivity.
In material management, it involves the acquisition by purchase lease, hire or other legal means of right material at the right time, the right price, the right quality and delivered to the right place of use. In view of this, materials are seen as means in which it determines the organization success to great extent, commensurate with effectiveness and efficiency (stoner 1995).
However, materials take place in diverse circumstance public sector of the economy. The term material is widely used in public and private industries. That is to say material can be viewed as but, one important and essential input in management effort to improve overall performance of the enterprise and not isolated activities.
The Nigeria Bottling Company Plc (NBC) which is part of coca – cola was in corporate in November 1951 to bottle and sell carbonated non – alcoholic beverages. The company has the sole exchange to bottle coca – cola products.
InNigeria, production of coca – cola began in 1953 atLagosand new plants atKano, Port – Harcourt andIbadanwhere opened shortly afterwards.
TheNigeriaBottlingCompanyLimitedPort– Harcourt, the manufacturing of coca – cola was established in 1953. The existing story of growth during the development was attributed to the Industry. It was gathered from a reliable source that coca – cola product is the world leading soft drink produce sold in other 200 nations. The manufacturing process of coca – cola product is the combination of raw materials.
The major materials are the concentrates which are been improved from foreign countries and also sugar water and carbon – dioxide is produce in larger by Baseita Sugar Company, which some are imported from oversea. The Beta Glass Company in Ughelli,DeltaStateofNigeriasupplied the millions of bottle reigned to keep the Bottling Company in operation (Brown 1981).
According to hence (1970), the factory makes use of labour in the operation because human effort account for other 50% of the operation. As a result, theNigeriaBottlingCompanyPort– Harcourt employed other two thousandNigeriain all field of operation. The source of employment for junior staff was within the immediate environment, while senior staff was directly from the head office.
1.2 Statement of the Problem
There are a lot of problems confronting the effectiveness of material management department manufacturing Industries among which are:
One of the problems is lack of adequate raw materials, they are locally available.
Most of the Companies inability to get purchasing profession to work with them, so make judicious use of their resources which are limited in supply. This is inevitable, since greater some money are expanded on raw materials locally or from abroad.
Misappropriation of the right materials at the wrong place is on the problems confronting the effectiveness of management.
1.3 Objective of the Study
The research is been carried out to show importance of materials management to set of the organization.
It is also to highlight the roles problems and the feasibility prospect of material management especially in organization productivity of a prospective bought and dominant economy such asNigeria.
It is hoped that the write – up will examine the impact of raw material management on organizational productivity taking Nigeria Bottling Company Plc (NBC) as a case study.
1.4 Research Question
- Ø Does imported raw material enhance productivity?
- Ø Does a locally purchased raw material enhance productivity?
- Ø Does process of processing raw material enhance productivity?
- Ø Does your organization allow personnel to take decision on purchasing supply issue in the essence of purchasing manager?
- Ø How effective spending on raw material affect productivity?
- Ø Does material management have any relationship with other functional Department?
1.5 Significance of the Study
The significance of the study arises from the following.
It could be useful in finding into how material management in business organization will affect the productivity.
It could also be useful in finding how management in business organization could improve on their material management to ensure high productivity.
This study will be very useful to productivity manager, supervisors, employees, firm, etc involved in material management as it will equip them with facts relating to material management.
The study also fries to provide a frame work for effective material management in manufacturing organization and based for improved productivity.
The academic community, begin the main stream of researcher and centre of learning the findings in this research will serve as starting point for future researcher within the academic community who are interested in researching into material management.
1.6 Scope of the Study
The scope of the study will be limited to Nigeria Bottling Company Plc (NBC) based on the impact of materials management on organizational productivity.
It is also limited to the examination of material for effective and efficient production.
The study will also be limited to the improvement of quality of goods produced to customer, the reduction of annual total expenditure on material, value of work in progress and how all of the above will lead to the overall success of Nigeria Bottling Company Plc (NBC).
1.7 Limitation of the Study
In the process of writing the project, many problem where encountered with server as a militating factors to the completion of the project. Some of the problem includes the following:
a) Inadequate Data: In the writing of the project, the researcher face a lot of programmes such as scarcity of textbooks, journals, and records of past writers that can give light to the writing of the Polytechnic.
b) Financial Predicament: Financing the project posed many problems especially in the high cost of situation.
c) Time Constraint: This project was given a limited time under which it is to be completed, submitted, approved as a respect of this the writing could not be broadened enough as it should have been.
1.8 Definition of Terms Material
Material can be defined as the inputs that are usually converted into finished product.
Management: Management is a process of planning, organizing, leading and controlling the effort of organizational members and using of all other organizational resources to other organizational resources to other organizational resources to achieve stated goal (stone et al 1995).
Material Management: Brown el at (1981) defines material management as purchasing the right quality material as the right time from the right source and at the right price.
Organization: Organization can be defined as a consciously social unit composed of two or more people that function on a relative commitment basis to achieve a common goal or set of goals.