The effect of material management technique on production planning processes in small and medium scale enterprises

Thesis Overview

<p> <b></b></p><p><b><b>INTRODUCTION </b></b></p><p><b><b></b></b></p><b><b><p>Material<br>management is an integrated management approach to the planning, purchasing,<br>ware housing, stock keeping allocation and movement of needed material from<br>point of source to user department. It can also be defined as the process of<br>management of material which involves purchasing, storage control and<br>transportation.</p><p>Material<br>management is a relatively new discipline. The 20th century’s rapid<br>growth and the significant industrial development has played a major role in<br>the relationship and effective management of the traditional 5Ms which are:<br>Machine, material, men, money and management.</p><p>The<br>famous industrial revolution made material(s) the largest elements cost in any<br>organization.</p><p>At<br>the wake of the 20th century many firms had recognized the importance of<br>material, and several material activities like purchasing, ware housing, stock<br>control and distribution carried out by the organization.</p><p>By<br>the 1950 firms have identified the need for effective coordination or<br>integration of such material activities and material organization tools concept<br>like those of physical distribution movement, logistic movement and material<br>management as a means to check, co-ordinate and control the firm’s material<br>activities.</p><p>Globally,<br>there is no clear definition on the area of material management. According to<br>M.A. Tokunbo (1987) defines it in the context of store and material control as<br>compensation for the effective co-ordination of the principle element.</p><p>ü &nbsp; Identifying,<br>classifying and coordination of stocks</p><p>ü &nbsp; Provision,<br>inventory control and stress accounting</p><p>ü &nbsp; Store<br>house layout and organization</p><p>ü &nbsp; In<br>house storage handling and distribution</p><p>ü &nbsp; Presentation<br>of materials in store.</p><p>To<br>these, material management has the duty to apply the most suitable technique in<br>the most effective way to ensure the minimum total cost consistent with providing<br>the service required.</p><p>The<br>American production and inventory control; society (APICS) defines material<br>management technique and production as the grouping of management function<br>related to the complete cycle of material flow from the purchase and internal<br>control of work in the latter term, traditionally is limited to internal<br>control of production materials.</p><p>In<br>examining the whole definition one could easily notice that they are not quite<br>different from one another only the way of approach and little difference in<br>terminology. In this respect (material and resource) or material management is<br>not only limited to buying and storing as many view it but involves also<br>purchasing, transport and distribution planning and continuous monitoring.</p><p>1.1 &nbsp; &nbsp; <b>BACKGROUND<br>OF THE STUDY</b></p><p><b></b></p><b><p>The<br>subject matter of this study is the effect of material management technique on<br>production planning process in United Nigeria Textile Plc (UNT Plc), Kaduna. The<br>research is meant to be of great importance to various enterprise and organization<br>wishing to conduct a detailed study into stores and purchasing material hence,<br>the research aims at identifying the problems associated with efficient<br>operation in an organization, the research is interested in knowing the effect<br>of material management technique on production planning process as practicable<br>in an organization. Due to sophistication in technology coupled with<br>socio-economic and political instability, production processes face complex<br>problems that needs to be addressed by management &nbsp;ensuring that materials are allocated and used<br>in the most efficient and effective manner.</p><p>&nbsp;The material management technique on<br>production is also to identify problems by guiding against supb-optimization of<br>the material management techniques in production planning processes, for this<br>the researcher suggests that which will achieve optimal result quickly, cheaper<br>and acceptable.</p><p>Today<br>materials are the live-wire of every organization be it public or private hence<br>no organization can survive without material, its availability, distribution<br>and transportation and delivery at the right amount and quality is paramount.</p><p>1.2 &nbsp; &nbsp; <b>STATEMENT</b><br><b>OF</b>&nbsp;<b>THE</b>&nbsp;<b>PROBLEMS</b></p><p>United Nigeria Textile<br>Plc (UNT Plc), Kaduna. is faced with problems in relation to<br>utilization of the effect of material management being the utmost thing that<br>are needed to be utilized effectively. The problem facing material management<br>especially United<br>Nigeria Textile Plc (UNT Plc), Kaduna. are mainly under stocking or<br>over stoking of material, stock obsolescence breakage and the economic order<br>quantity.`</p><p>Due<br>to the fact that the impact is to be felt positively in the society by making<br>themselves’ productive in every area of inputs.</p><p>But<br>despite the effect observed there have been general apathy, ignorance and lack<br>of interest by many people and the government.</p><p>1.3 &nbsp; &nbsp; <b>OBJECTIVES<br>OF THE STUDY</b></p><p><b></b></p><b><p>Specifically,<br>the aims and objectives of this study are:</p><p>i. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>To assess the impact of material management on<br>organizational performance.</p><p>ii. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To appraise and further appreciate the significance<br>of material management in a manufacturing industry.</p><p>iii. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To identify and ascertain some of the problems<br>poised by materials management in Nigerian United Nigeria Textile Plc (UNT Plc), Kaduna.</p><p>iv. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>It is also the researcher’s desire that this<br>compilation will be of great help and interest to whosoever uses it to gain<br>knowledge on issues discussed.</p><p>1.4 &nbsp; &nbsp; <b>STATEMENT<br>OF HYPOTHESIS</b></p><p><b></b></p><b><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The following hypothesis was<br>formulated for this study:</p><p>H0: &nbsp; &nbsp; Material<br>management does not have any significant impact on organizational performance<br>of SMEs.</p><p>H1: &nbsp; Material<br>Management does have significant impact on organizational performance of SMEs.</p><p>1.5 &nbsp; &nbsp; <b>SIGNIFICANCE<br>OF THE STUDY</b></p><p><b></b></p><b><p>&nbsp; A research of this nature will be incomplete<br>without highlighting the importance of this study.</p><p>Firstly,<br>the researcher as a student aspiring to be a material executive in the future<br>sees this study as an opportunity to fully investigate into the field of<br>materials management to see the challenges therein.</p><p>Secondly,<br>the study is needed as a pre-requisite for the award of the Higher National<br>Diploma in Production and Operation Management (POM).</p><p>Furthermore,<br>the researcher has also undertaken the study in order to gather necessary<br>information and suggest solution to the problem facing materials management in United Nigeria Textile Plc (UNT Plc),<br>Kaduna.</p><p>1.6 &nbsp; &nbsp; <b>SCOPE<br>OF THE STUDY</b></p><p><b></b></p><b><p>The<br>subject matter “Materials Management” has an area of coverage within its<br>concept, i.e. theory and practice in the private sector. This would also<br>include purchasing, stocktaking and stock checking of materials. </p><p>1.7 &nbsp; &nbsp; <b>LIMITATION<br>OF THE STUDY</b></p><p><b></b></p><b><p>In<br>carrying out this research, certain problems were encountered which in fact<br>hindered the area of coverage.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>The researcher faced the problem of sourcing<br>for materials for the project. </p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Time constraint was a factor the researcher<br>encountered. This resulted in the backlog of the researcher’s class work.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>&nbsp;Lack of<br>textbooks related to the subject matter also contributed to backlog in writing<br>the project.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Unco-operative and bureaucratic attitude of United Nigeria Textile Plc (UNT Plc), officials<br>who were reluctant in providing necessary information in writing.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Despite all these constraints, the researcher<br>was lucky to gather vital information that made the investigation a success.</p></b></b></b></b></b></b></b></b> <br><p></p>