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Variety Reduction As A Tool For Effective Materials Control
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CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study
Variety
reduction can be applied to any production process. The technique
certainly has more effect if applied in the right place and at the right
time.
Apparently in many organization, it is clearly to see
organization be it manufacturing holding different number of types, size
or grade of a product that can perform the same function, this means
duplication of items, the cost of materials is the last remaining cost
that is truly variable, a reduction in the cost of material clearly
offers on usual opportunity for profit improvement, therefore the need
for purchasing to minimize waste and enhance maximum services within
the organization has resulted in the use of variety reduction. Variety
reduction can make a substantial savings in inventory by standardizing
and rationalizing the range of materials, parts and component kept in
store. Variety reduction can be achieved by using, so far as possible,
standardized components and subassemblies to make end products that are
dissimilar in appearance and performance so that variety of final
products uses only a few basic components, variety reduction can also be
applied when considering capital purchases, by ensuring compatibility
with existing machinery, the range of spares carried to ensure against
breakdowns can be substantially reduced also variety reduction can be
undertaken periodically to examine arrange of stock items to determine
the
intended use for each item of stock, how many stock item serve the same
purpose, the extent to which items having the same purpose can be gives
a standard description, what range of sizes is essential and lastly
what items can be eliminated all these are done to ensure effective
material control. Therefore, variety reduction can be defined as “the
process of reducing the number of types, size or grades of a product
that are purchase made or stocked (Hassan 2008 p. 445).
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ABSRACT - [ Total Page(s): 1 ]This research study is based on variety reduction as a tool for effective material control, a case study of Nigeria Bottling Company Plc. To understand the research work better, efforts was made at the introductory stage to explain the general importance of variety reduction with special consideration being placed on company especially Nigeria Bottling Company Plc, Kaduna. Also the general problem was also emphasized on such non recognition of the role of variety reduction on storage of differen ... Continue reading---
