It is quite obvious that every organization keeps
materials which form one of the pivotal elements in the organization. Any
establishment that is set up to produce one thing or another; any organization
could either be goods producer or services delivery or both, and they must make
use of materials in all their operations, and these materials must be properly
managed to achieve the desired objectives.
Materials management is one of the most
technological choices in any organization. Thus, it must be decided as to when,
how and by who materials should be handled. It covers the processes of moving,
packing and storing materials. Note that in the past, there was no any distinct
method in use.
However, today the methods employed are numerous
such as: The Automated Guided Vehicle (AGV), the Automated Storage and Retrieval
1.1 Background of the Study
What dominates organizational operations and
there seeks to transform management practices is no other than material
It is obvious that in all kinds of organizations,
management effort is often times committed to the effective and efficient
management of materials. Furthermore, the management practices have gained the
understanding that the success of any can only be guaranteed in today’s
circumstances by a practical and holistic commitment to materials management.
Materials management is not a mere technique, but
a philosophy anchored on a belief that long run success depends on the uniform
commitment to materials management in 7Up Plc, Kaduna Plant which can be
achieved via the interplay of both the analytical and holistic facilities of
the personalities concerned.
1.2 Statement of the General Problem
Materials management as we all know is considered
“life blood” of every organization. Unfortunately enough, most companies have
entrusted the materials management functions into the hands of mediocre.
Therefore, the basic problem with which the study
is concerned about is the unethical practices in the 7Up Plc Kaduna plant which
includes: the placement of unqualified personnel on the functional, they do not
have professional knowledge about, over invoicing and local inaccessibility of
raw materials. Also, therefore is the problem of wastage and pilferage of
materials in 7Up Plc, Kaduna plant.
1.3 Objectives of the Study
The main objective of the study is to determine
the impact of materials management in the productivity of Seven-Up Bottling
Company. Other specific objectives include to:
in which materials can be controlled to increase productivity in 7Up Plc,
evaluate how buying, stock taking, stock checking and stock recording in the
organization ensure continuity of operation in 7Up Plc Kaduna plant
the accompanying benefits that will accrue to the management of the
organization if materials are properly managed.
shortage of quality personnel deter the effective management of materials in
procedures, processes and techniques for effective and efficient management of
materials in the organization.
1.4 Significance of the Study
This study would add to the knowledge of the
subject matter, “materials management” and equally help managers in 7Up Plc
Kaduna plant in tackling the effects of stock taking, stock checking and stock
recording in the organization, as one of the salient components of materials
It would enable managers to boost productivity
and minimize or eradicate problems related to materials for students and
businesses that will be embarking upon materials management operations.
It will generally help management in reducing
wastage and pilferage of materials and equally enhance proper utilization of
management increase productivity in organization?
buying, stock taking, stock checking and stock recording ensure continuity of
operations in 7Up Plc Kaduna plant?
What are the
benefit that will accrue to the management of the organization if materials are
of qualified personnel deter the effective management of materials in 7Up Plc
formidable procedures, processes and techniques bring about effective and
efficient management of materials in an organization?
1.6 Scope of the Study
The study is concerned with materials management
as an effective tool for productivity in Seven Up (7-Up) Nigeria Plc Kaduna
plant. The study would cover the practical activities performed by Seven Up
(7Up) Nigeria Plc Kaduna plant from the identification of new order up to the
issue of ordered materials to the user department from 2008 – 2012).
1.7 Limitations of the Study
In every research work, the researcher is bound
to face hitches. One of the problems anticipated during this research study
include lack of cooperation from subjects or objects leading to use of smaller
than anticipated numbers, low return of questionnaire and inability to use
correct data gathering instruments due to ignorance about their availability.
Another limitation was the attitude of the staff during visits to the
organization. At the end, despite all the constraints, I was able to conduct
the research successfully.
1.8 Definition of Terms
are raw materials of varying qualities held in store house.
This is a house or a structure prepared for safe keeping of materials.
This is the process of averaging the movement and storage of goods and
materials from their source to the point of ultimate consumption.
Bulk Issues: These are materials that are made in set agreed
quantities in designated departments.
Obsolescence: These are items held in stock which becomes out
of date and no further use to the organization.
Distribution Requirement Planning (DRP): This is a requirement placed by customers at the
points of use or demand.
This is an open air place in which materials may be kept for reasonable time
without serious deterioration.
Work in Progress (WIP): These are inventories of materials in a part
finished or partially assembled state.
These are wastes, used or surplus materials or part arising out of manufacturing
processes or other activities.
Stock Checking: This involves the inspection of materials for
quality and quantity.
Stock Taking: This is the physical counting of materials in
Materials Requisition Planning (MRP): This is a set of logically related procedures
decision, rules and records designed to translate or master production schedule
into net requirement and planned coverage of such requirements for each
component inventory item needed to implement a schedule.
Inventory Status File: This is a document used in keeping records of
what is in stock and allows the gross requirements to be adjusted to net
requirement by taking into account the current position.
Automated Guided Vehicles: These are trucks used in the store house with no driver
but guided automatically.
These are items used for production of goods and services.
Replenishment: This is the process of supplying back materials
in order to replace what has been used up.