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Effect Of Materials Management On Resource Utilization In Organization
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This
research work is titled the Effect of Materials Management on resource
Utilization in Organization. A case study of 7up Bottling Company PLc
Kaduna.
Arnold (1998) said that the wealth of any country is measured
by its Gross National Product i.e the output of goods and services
produced by the nation in a given time. He further defined materials as
those physical objects i.e something we can touch, feel or see. Services
are the performance of some useful function such as banking, medical
care restaurants, clothing stores, or social services. But that the
source of wealth of any country is measured by the amount of goods and
services produced. A production process is needed to transform our
resources into useful goods. Production takes place in all forms of
transformation such as the transformation of resources to manufacture
useful products.
There are many stages between the extraction of
resource materials and the final consumer product. At each stage in the
development of the final product, value is added. Thus, creating more
wealth. Japan is a prime example of this, it has very few national
resources and buys most of the raw materials it needs. However, the
Japanese have developed one of the wealthiest economy in the world by
transforming the raw materials they purchased and add value to them
through manufacturing. To get value out of our resources, we must design
production process that will make products most efficiently. Once the
process exist, we need to manage their operation so they produce goods
more economically. Managing the operation means planning for and
controlling the resources used in the process such as labour, capital,
equipment and materials. They are all important but the management plans
through effective flow of materials. The flow of materials controls the
performance of the process. if the right materials in the right
quantity are not available at the right time, the profitability and even
existence of a company, will be threatened.
Stevenson (1993) defined
materials as all physical items used during production process. they
includes not only the parts and raw materials that becomes the finished
goods, but also the physical items needed to support the production
process such as fuel, lubricants, tools, machinery, forms and anything
else that is purchased, moved, stored or shipped.
Follet (2001)
defined management as the act of getting things done through people by
planning, organizing, directing, coordinating and controlling.
Stevenson
(1993) defined materials management as the activity that is concerned
with purchasing, storing, and movement of materials during production
and with the distribution of finished goods.
George (1993) said that,
materials management is an aspect of industrial management which is
concerned with all activities that may include production control,
inventory, purchasing, expenditure, traffic, materials handling,
welfare, receiving, shopping, scrap and surplus, disposition and
customer services.
Billington (1995) defined materials management as
the process by which goods and services that an organization needs to
achieve its objectives of buying, storage and movement of materials are
required.
Lyson (1996) defined materials management as the management
process which integrates the flow of supplies into, through and out of
an organization to achieve a level of services that ensures that the
right materials are available at the right place at the right time, at
the right quantity, right quality and at the right cost.
Arnold
(1998) said materials management is a coordinating function responsible
for planning and controlling materials flow, in order to maximize the
use of the formed resources and also provide the required level of
customer services.
Iornum (2007) defined materials management as an
integrated management approach to the planning, purchasing ware housing,
storekeeping, allocation and movement of needed materials from one
place to another. He further said that its also, the management of goods
and materials that involves purchasing, storage, control and
transportation.
Knod (2008) defined materials management to
incorporate a broad set of activities related to acquiring, moving or
handling, storage and control or monitoring of materials, thus,
purchasing, distribution and other supply-chain management duties could
be included.
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ABSRACT - [ Total Page(s): 1 ]This project (research) work is titled “Effect of Materials Management on resource utilization in Organizationâ€. The researcher carried on investigation to determine the impact of effect of materials management on resource utilization in organization as it affect organization’s productivity and output in the field of resource control and management. The researcher went further to talk about the side effect of lack of adequate materials and resources used in industrial or m ... Continue reading---
