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The Effect Of Material Management Technique On Production Planning Processes
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CHAPTER ONE
INTRODUCTION
Material management is an integrated
management approach to the planning, purchasing, ware housing, stock
keeping allocation and movement of needed material from point of source
to user department. It can also be defined as the process of management
of material which involves purchasing, storage control and
transportation.
Material management is a relatively new discipline.
The 20th century's rapid growth and the significant industrial
development has played a major role in the relationship and effective
management of the traditional 5Ms which are: Machine, material, men,
money and management.
The famous industrial revolution made material(s) the largest elements cost in any organization.
At
the wake of the 20th century many firms had recognized the importance
of material, and several material activities like purchasing, ware
housing, stock control and distribution carried out by the organization.
By
the 1950 firms have identified the need for effective coordination or
integration of such material activities and material organization tools
concept like those of physical distribution movement, logistic movement
and material management as a means to check, co-ordinate and control the
firm's material activities.
Globally, there is no clear definition
on the area of material management. According to M.A. Tokunbo (1987)
defines it in the context of store and material control as compensation
for the effective co-ordination of the principle element.
ü Identifying, classifying and coordination of stocks
ü Provision, inventory control and stress accounting
ü Store house layout and organization
ü In house storage handling and distribution
ü Presentation of materials in store.
To
these, material management has the duty to apply the most suitable
technique in the most effective way to ensure the minimum total cost
consistent with providing the service required.
The American
production and inventory control; society (APICS) defines material
management technique and production as the grouping of management
function related to the complete cycle of material flow from the
purchase and internal control of work in the latter term, traditionally
is limited to internal control of production materials.
In examining
the whole definition one could easily notice that they are not quite
different from one another only the way of approach and little
difference in terminology. In this respect (material and resource) or
material management is not only limited to buying and storing as many
view it but involves also purchasing, transport and distribution
planning and continuous monitoring.
1.1 BACKGROUND OF THE STUDY
The
subject matter of this study is the effect of material management
technique on production planning process in United Nigeria Textile Plc
(UNT Plc), 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, production
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 PROBLEMS
United
Nigeria Textile Plc (UNT Plc), Kaduna. 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 United Nigeria Textile Plc (UNT
Plc), Kaduna. 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.
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ABSRACT - [ Total Page(s): 1 ]The aims and objectives of this work is to examine “The Effect of Materials Management Techniques on Production Planning Process with reference to United Nigeria Textile Plc (UNT Plc), Kaduna... Materials management is open to so many problems in industrial sector in Nigeria, especially when theory and practice are compared. Among the problems facing materials management in Nigeria, which is also peculiar to the company which the project is based on are: Multiplication of materials managem ... Continue reading---
