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THE EFFECT OF MATERIAL MANAGEMENT TECHNIQUE ON PRODUCTION PLANNING PROCESSES
(A CASE STUDY OF COCA-COLA NIGERIAN BOTTLING COMPANY KADUNA)
TABLE OF CONTENTS
Table of Contents
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Statement of Hypothesis
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
1.8 Historical Background of NBC Plc
1.9 Definitions of Terms
2.1 Definition of Materials Management
2.2 Production planning
2.3 Materials Control
2.4 Purchasing (Procurement)
2.4 Stock Ordering
2.5 Types of Stocktaking
2.6 Benefits of Stocktaking
3.1 Research Design
3.2 Research Population
3.3 Sample Size and Sample Technique
3.4 Methods of gathering Data
3.5 Justification of method used
3.6 Methods of Data Analysis
3.7 Justification of Instrument used
1.1 BACKGROUND OF THE STUDY
The subject matter of this study is the effect of material management technique on production planning process in coca-cola Nigeria Bottling company kaduna. The research is meant to be of great importance to various enterprise and organization wishing to conduct a detailed study into stores and purchasing material hence, the research aims at identifying the problems associated with efficient operation in an organization, the research is interested in knowing the effect of material management technique on production planning process as practicable in an organization. Due to sophistication in technology coupled with socio-economic and political instability, prodution processes face complex problems that needs to be addressed by management ensuring that materials are allocated and used in the most efficient and effective manner.
The material management technique on production is also to identify problems by guiding against supb-optimization of the material management techniques in production planning processes, for this the researcher suggests that which will achieve optimal result quickly, cheaper and acceptable.
Today materials are the live-wire of every organization be it public or private ,hence no organization can survive without material, its availability, distribution and transportation and delivery at the right amount and quality is paramount.
1.2 STATEMENT OF THE PROBLEM
Coca-cola bottling company plc as an organization is faced with problems in relation to utilization of the effect of material management being the utmost thing that are needed to be utilized effectively. The problem facing material management especially in coca-cola bottling company plc are mainly under stocking or over stoking of material, stock obsolescence breakage and the economic order quantity.`
Due to the fact that the impact is to be felt positively in the society by making themselves’ productive in every area of inputs.
But despite the effect observed there have been general apathy, ignorance and lack of interest by many people and the government.
1.3 OBJECTIVES OF THE STUDY
Specifically, the aims and objectives of this study are:
- To assess the impact of material management on organizational performance.
- To appraise and further appreciate the significance of material management in a manufacturing industry.
- To identify and ascertain some of the problems poised by materials management in Nigerian Beverage Company (coca-cola) Kaduna.
- It is also the researcher’s desire that this compilation will be of great help and interest to whosoever uses it to gain knowledge on issues discussed.
1.4 STATEMENT OF HYPOTHESIS
The following hypothesis was formulated for this study:
H0: Material management does not have any significant impact on organizational performance.
H1: Material Management do have significant impact on organizational performance.
1.5 SIGNIFICANCE OF THE STUDY
A research of this nature will be incomplete without highlighting the importance of this study.
Firstly, the researcher as a student aspiring to be a material executive in the future sees this study as an opportunity to fully investigate into the field of materials management to see the challenges therein.
Secondly, the study is needed as a pre-requisite for the award of the Higher National Diploma in Production and Operation Management (POM).
Furthermore, the researcher has also undertaken the study inorder to gather necessary information and suggest solution to the problem facing materials management in Nigeria Bottling Company (Coca- cola) Kaduna.
1.6 SCOPE OF THE STUDY
The subject matter “Materials Management” has an area of coverage within its concept, i.e. theory and practice in the private sector. This would also include purchasing, stocktaking and stock checking of materials.
1.7 LIMITATIONS OF THE STUDY
In carrying out this research, certain problems were encountered which infact hindered the area of coverage.
- The researcher faced the problem of sourcing for materials for the project .
- Time constraint was a factor the researcher encountered. This resulted in the backlog of the researcher’s class work.
- Lack of textbooks related to the subject matter also contributed to backlog in writing the project.
- Unco-operative and bureaucratic attitude of Nigerian Bottling Company Industry Limited officials who were reluctant in providing necessary information in writing.
- Despite all these constraints, the researcher was lucky to gather vital information that made the investigation a success.
1.8 HISTORICAL BACKGROUND OF COCA-COLA NIGERIA BOTTLING COMPANY KADUNA
Coca-Cola first came to Nigeria in 1953 when Nigerian bottling company set up its first plant in Lagos. It marked the beginning of an existing store of growth and development particularly during the past years.
Nigeria bottling company plc is today Nigeria’s number one bottle of soft drink as claimed by the company and from the research finding, selling more than eight million bottle per day, a figure which is still growing with the expansion of the existing, twelve(12) plants and the opening of brand new plants in various part of the federation. The company established three departments under Kaduna plant VIZ-(a) Minna, (b) Zaria, (c) Abuja. Coca-cola is the number one best seller in the coca-cola segment, Fanta is the orange segment and sprite most widely sold lemon drink in Nigeria
Nigeria Bottling Company is a subsidiary of Leventis which serve as its parent company. The company has two section namely:- soft drink section and agricultural section. The company now operates on a large scale agricultural programme with two farms situated at Zaria in kaduna state and Agenobode in Edo state apart from production of soft drinks.
The following are Nigeria bottling plc product line Coke, Fanta, Sprite, Ginger A/c, Fanta tonic, Fanta club Soda ands Krest, bitter lemon
Kaduna plant which is the area of study of the research is situated at Inuwa Abdul-kadir Road behind Kaduna Transport Authority (K.S.T.A) and a stone throw from Peugeot automobile Nigeria limited ( PAN). The company is headed by a manager with department head taking control and the general supervisor of the company
OBJECTIVES OF THE COMPANY
1 To produce soft drinks to the consuming population
2 To make profit
3 To re-profit with the purpose of expansion
4 To provide employment opportunities
5 To carry out the distribution activities of its production by supplying direct to customer.
6 To penetrate and dominate the Nigerian soft drink market
7 To assist in the economic development of the nation.
In order to achieve the above objective, the company requires sound and effective organizational structure. The company’s drawn-up structure, kaduna plant is headed by a plant manager to whom five (5) sectional head report. The sections that make up the plant are:-
The day to day administration of the company’s activities is under the leadership and supervision of the plant manager.
1.9 DEFINITION OF TERMS
- Material Management: This is defined as the grouping under one head all or some of the activities involved in the organization and use of materials employed from the need stage up to the storage of finished goods.
- Purchasing: Purchasing is defined as the activity directed to securing by legal means, the materials suppliers and equipment required in the operation of an enterprise.
- Sourcing: This is referred to the investigation and evaluation of sources of supply and suppliers.
- Negotiation: Is a process of planning, receiving and analyzing conditions by both buyer and seller to arrive at an acceptable agreement through mutual understanding.
- Expediting: It is a process of ensuring that goods are promptly delivered to the right place and at the right time.
- Purchasing Requisition: It is a form usually prepared when a department or stores need materials to be purchased.
- Issue: Issue is the withdrawal of goods and handover of stock to user backed with authorized documents.
- Organization: Are artificially contrived structure with procedures and objectives defining the responsibilities, who does what type of job task, who report to whom and when and who is responsible for what action.
- Quality Control: Is a process whereby goods and services are examined to ensure that they conform to predetermined standards.
- Obsolescence: These are materials for which there is no demand either because of the presence of a better substitute or they are out of use or fashion.
- Stocktaking: This is the complete process of verifying the quality balance of the entire stock hold in the store.
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