An Appraisal Of Material Management And Resource Utilization In An Organization

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An Appraisal Of Material Management And Resource Utilization In An Organization


This research work is titled, An Appraisal of Material management and Resource Utilization in Nigerian Bottling Company Plc Kaduna. The study was conducted to bring a better understanding of the Material Management concept and reveal how they utilize their Materials. A survey of carrying out research was employed in the study, questionnaire was employed for instrument of data collection, and the population of the study is 102, while the sample size is 70. It was found out that material management in Nigeria Bottling Company Plc is very effective and reliable. It was concluded that the management of the store of a firm is important because of its likely impact on profitability. It was recommended that body attempt should be made to improve on the firm’s resources’ to the desirable level.

Table of Contents

  • Title Page
  • Approval Page
  • Declaration
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Contents

Chapter One


  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Significance of the Study
  • 1.5 Research Question
  • 1.6 Scope of the Study
  • 1.7 Limitation of the Study
  • 1.8 Historical Background of the Case Study
  • 1.9 Definition of Terms

Chapter Two

Review of Related Literature

  • 2.1 Human Resource (Manpower) Planning
  • 2.2 Factors Affecting Human Resource Planning
  • 2.3 Strategies for Human Resource Planning
  • 2.4 Productivity in Organization
  • 2.5 Productivity Measurement
  • 2.6 Factors Influencing Productivity
  • 2.7 Theories of Motivation
  • 2.7.1 Motivation
  • 2.7.2 Motivators
  • 2.7.3 the Expectancy Theory of Motivation
  • 2.8 Human Resource and Manpower Planning Similarities
  • 2.9 Summary of the Chapter

Chapter Three

Research Methodology

  • 3.1 Research Design
  • 3.2 Research Population
  • 3.3 Sample Size and Sampling Technique
  • 3.4 Method of Gathering Data
  • 3.5 Justification of Method Used
  • 3.6 Method of Data Analysis
  • 3.7 Justification of Instrument Used

Chapter Four

Presentation of Data and Analysis

  • 4.1 Data Presentation
  • 4.2 Data Analysis
  • 4.3 Test of Hypothesis
  • Bibliography

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendations

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix

Chapter One


1.1 Background of the Study

Material management is an integrated management approach to the planning, purchasing, warehousing, storekeeping, allocation and movement of needed material from source of user department. It can also be defined as the process of management of goods and materials which involved purchasing, storage, control and transportation.

Material and resource management is a relatively new discipline. The 20th century rapid growth and the attendant industrial growth and the attendant shift of production is relative importance of what is usually referred to as the five “m” which includes machine, materials, men money and management.

The famous industrial revolution about the complexity of materials and the volume of productivity which turn and made materials the largest elements cost in every organization.

At the wake of the 20th century many firms had recognized the importance of materials, several materials activities like purchasing, warehousing, stock control and distribution carried out by the organization.

By the 1950s many firms have identified the need for an effective coordination or integration of such material activities and materials organization tools concepts like those of physical distribution movement, logistics movement and material management were involved so as to check, co-ordination and control of the firm’s materials activities. Globally, there is no clear definition because many institutes and writers have given so many definitions in the area for material management.

According to M.A. Tokunbo (1987) define it in the context of store and material control as compensation, the effective coordination of the principle element.

  • Identifying, classifying and coordination of stocks.
  • Provision, inventory, control and stress accounting.
  • Store-house layout and organization
  • In house storage, handing and distribution
  • Presentation of material in store.

To these, the material manager has the duty of applying the most suitable techniques in the most effective way to ensure the minimum total costs consistent with providing the services required.

The American production and inventory control society (APICS dictionary of production and inventory control terms) define material management and resource utilization as the grouping of management functions related to the complete cycle of materials flow from the purchase and internal control of work in progress of the product, differed from material control in the latter term, traditionally is limited to internal control of production materials. The key words here are material production or manufacturing process.

In examining the whole definition one could easily notice that they are not quite different from one another, but only the way of approach and little different in terminologies. In this respect material and resource utilization management is not only limited to buy and storing as many view it but also include purchasing, transport and distribution, planning and continuous monitoring.

Today materials and resources utilization are the livelihood of any industry, no industry concern can operate without them. They must be made available at the right time. In the right quantity and at the right place.

The subject matter of this study is material management and resource utilization in an organization. The researcher feels it will be of a great important to various enterprise and organization to conduct a detailed study into stores and purchasing material hence, the researcher aim at identifying the problem for efficient operation in an organization.

The researcher is interested in knowing how material management and resource utilization function act practicable in an organization. As a result of the sophistication in technology at parent coupled with social economic and political changes. Activities could no longer be run without problem and adhoc basis but must be planned moreover when problems are complex in nature by management there is a need to ensure that materials and resources are allocated and used in the most efficient and effective way.

The material management and resource utilization function is also to identify problems by guiding against sub-optimization of the material and resources (under utilization of organizational resources) for this the researcher assist to and acceptable.

Seven-up brand roots go back to 1i920 when C.L. Gregg banked on his 30 years of experience in advertising and merchandising to form the howdy corporation in St. Louis, although he named the company after the Howdy Orange drink he pioneer, goal was to create a wholesome and distinctive soft drink that would prove irresistible to the nation’s consumers.

Gregg spent more than two years testing different formulas of lemon flavored drinks. He settled on one that fulfilled the characteristics sought refreshing, and thirst – quenching. Gregg introduced his new soft drink two weeks before the stock market crash in October 1929.

The earliest Seven-up advertising featured a winged 7up logo and described the soft drink in bottles only seven natural flavors blended into a savory, flavor drink with real wallop Acknowledgement the success for the seven-up trademark bottling company plc was founded in 1959s, seven-up has become the third best selling soft drink in the world.

While in Nigeria, seven-up bottling company plc was founded in 1959 by late Sheikh Mohammed El-Khalil, at Ijora Lagos. Production started on October 1st 1960.

The company brands include Seven-Up, Pepsi, Mirinda (orange, soda tonic, pineapple, green apple) mountain dew and teen lemonade.

The organization had nine operational plants branches across Nigeria which are as follow: Ikeja plant, Ibadan plant, Benin Plant, Ilorin Plant, Enugu Plant, Aba plant, Abuja plant, Kaduna plant, and Kano plant.

The head office of Seven-Up Bottling Company Plc is at Ijora Apape area in Lagos State.

Kaduna Plant which is the plant been used for the case study is situated at Kaduna South, industrial area along Inuwa Abdulkadir road.

The company is committed to a culture of excellence in all their activities. Hence they strive to position the company to meet and exceed the expectation of the employees, customers, suppliers, shareholders, government and its agencies including the general public.

1.2 Statement of the Problems

Seven-Up Bottling Company Plc as an organization is faced with problems in relation to utilization of material and resources being the utmost thing that are needed to be utilized effectively. The problems facing the material management and resource utilization especially Seven-Up Bottling Company Plc are mainly overstocking or under stocking of materials, obsolescence’s breakage and the economic order. Due to the fact that functions of many purpose, the impact felt positively in the society by making themselves reasonable in every area of inputs.

But despite the material management and resources utilization as a tool for optimal utilization in Nigeria is not notice because it was observed that it is a general apathy” ignorance and lack interest by many people in the country. Many of the people including the government, individual are having the wrong nation and wrong impression.

1.3 Objectives of the Study

The major objectives of the studies are as follows:-

  1. To find whether the company use accounting tools and techniques in maintaining their materials.
  2. To find how Seven -Up Bottling Company Plc managed their material efficiently.
  3. To find out how resources are been utilized
  4. To find out whether there is wastage of material or not
  5. To look at the significance of materials management and utilization of resources in manufacturing.

1.4 Statement of Hypothesis

  • Ho Material Management and Resource Utilization cannot improve productivity in an organization.
  • HI Material Management and Resource Utilization can improve productivity in an Organization

1.5 Significance of the Study

The significance of the project is designed to help business, institutions or an organization to analyses and reduce excessive cost in all areas of it operations. In today’s business climate, with keener competition and

Unstable economic condition, the sustained controlling of cost often means the different between profit and loss all over the world, cost conscious executives, purchasing managers in institution etc.

More so it is of a great significance to the manufacturing industries, that is, the project is of great importance because it is possible to evaluate the efficiency of material management and resources utilization.

Material management and resources utilization is compendium concept of the best cost controlling ideas and methods that have evolved in recent year. Material manger, purchasing department will find these project useful ideas that can be directly applied to reduce costs within the organization.

Thus, the project may be of immense help to all business, institution and to those organizations that are faced with the problem of material management and resources utilization been the utmost resources that are needed to be utilized effectively.

1.6 Scope of the Study

The scope of this study has to do with the importance of materials management and resources utilization in Seven-Up Bottling Company Plc as a case study.

1.7 Limitations of the Study

This research work is limited to the following department found in Seven-Up Bottling Company Plc.

Personnel Department:

This department is responsible for recruitment of skilled, semi skilled and unskilled personal for the entire various department in the organization: It’s also look into the general welfare of the workers and the overall organization operation.

Production department, they are responsible for preparation f schedule for production when to start the production for a particular product (flavor) and also determine the expected quantity material utilization and also a management of jobs.

Accounting Department, this department is responsible for the settlement, of invoices release, casting of material for the purpose of final account or determination of production cost.

Quality control department, this department is responsible for making sure that goods (products) and service are examined to conform to predetermined standard, these department comprises of section such as water treatment, syrup room and laboratory.

Store department, the department has to or renders. Some function to the organization, which area:-

  1. To make provision for a balance flow of raw materials that is necessary to meet operational requirement.
  2. To make available the maintenance of materials, spare part as well as general store requirement of materials, spare part as well as general store requirement.

Warehouse, warehouse is the department responsible for receiving finished goods from the production department and them forward the some finished product (goods )to marketing department, marketing department are mainly responsible for sales, that is selling the company products at the company recommended price to the various customers.

Feet/ workshop, they are responsible for the transportation, services and repairs for the various company vehicles especially the sales trucks and other vehicles.

In writing a project research works, one is bound to face some certain constraints that will limit the extent to which the research may intend to cover such as:

i. Time:

Time is the most affecting constraints to this project in fact, have enough time to write his project work.

ii. Financial Constraints:

This is another constraint which hinders the researcher from carrying out his research work on time, especially the recent federal government economic programme which made it difficult for the researcher to source for funds on time; it has slowed down the progress of the project.

1.8 Definition of Terms

i. Maintenance:

It is the scientific utilization of Resource which includes material, machine, men, method and money to accomplish task, its embrace planning, organization directing, and coordinating.

ii. Material Management:

It is concerned with the flow of materials to manufacturing department; it can be described as a coordinating Function responsible for planning and controlling of materials flow. Material management is an aspect of grouping together under some of finished products; some of these activities may include: purchasing, Inventory control, expenditure warehousing and receiving materials.

iii. Planning:

Koontz O. Donnell and Welf Rich (1989) Perceive planning as deciding in advance what to do, how to do it when to do it. Planning bridges the gap for where we are to where we want to go. A plan established objective can be attained considering various aspects of the environment and determines the amount of resources necessary.

iv. Resources:

Resources are divided into human and material resources, the human resources is the man power that controls the activities of the organization while the material resources are the assets or wealth of the organization that is put into use in achieving the organization aim.

v. Organisation:

This is a systematic ordering of position which determines chains of command or it is an organized group of people working together towards a common ideal and aspiration of the group and putting effect together towards achieving an objective.

vi. Objectives:

These are the specific productivity on organization wants to achieve in other words it could be seen as asset aside goals in which an organization work towards to achieve effectively and efficiently. No organizations come into existence without having an objective to achieve.

vii. Utilization:

To make the best use of resources efficiently.

viii. Purchasing:

Purchasing is a strategic activity in an organization with primary objective of improving and maximizing profit it figure out new ideas for improving company’s products, search for belter source supply funds, substitute materials that are more economical.

ix. Purchasing Order Form:

This is legal document normally printed to transmit the organization requirement to the suppliers. This form varies from organization to organization in size, shape and layout. Content and number of copies, however certain essential elements are common.

x. Purchasing Requisition Form:

This form is usually prepared when a department or store needs a particular materials. Normally three copies are prepared, two copies being sent to the purchasing department as on authority of purchasing and the duplicate being retained by the originating department for reference and follow-up.

xi. Enquiry And Quotation:

When competitive tender are required. It is customary to send an enquiring to the suppliers and to receive quotation from the suppliers in order to select the most suitable by analysis of the tenders that are been received.

xii. Negotiation:

It is a decision making process, that is it is a process of planning, reviewing and analyzing by buyer and a seller to reach acceptable agreement or compromise through common understanding.

xiii. Budget:

Is a planned quantified in monetary terms prepared and approved prior to a defined period of lime usually showing planned income to be generated and expenditure to be incurred during that period and all capital to be employed to attained a given objectives.

xiv. Specification:

This is a detailed description of item, its dimensions analysis or other relevant characteristic in sufficient details to ensure that it will be suitable in all aspect for the purpose for which it is intended.

Chapter Five

Summary of Findings, Conclusions and Recommendations

5.1 Summary of Findings

The researcher will in this chapter summarize his findings and draw conclusion, this will enable the organization appraise the role of material management and resource utilization for better performance and improve productivity since service is the principal objective of the store function. It therefore follows that any stock an organization carries should be properly planned.

Although there is no standard material management and resource utilization which can be universally recommended, any option adopted should meet with the need for the establishment concerned. As it can be seen from the proceeding chapter, most of the establishment concerned. As it can be seen from the proceeding chapter, most of the material management activities as practiced by Seven-up bottling Plc were consistent with the view of many authors, hence the positive hypothesis HI which states that material management and resource utilization can improve productivity in organization comparing the two methods, the result proof to be correct, some of these positive practices that are consistent with the existing knowledge are discussed below.

It was found out during the research that the organization lack adequate storage space for material, however some materials are kept on the ground while some are piled on top of each other. It was also discovered during this research work that when material are to be received the purchasing officer and store officer are called upon to cross check the material than the actual receiving of the material into the store is left with the store officer and he is also responsible for any necessary book entry that is to be done.

The store officer is not liable for any shortages. The security aspect of the company around the store in the organization is adequate for instance the doors leading into the store are always locked to prevent burglary or entry by unauthorized person and people parading the store area are controlled.

Lack of smooth adequate communication and co-operation between the store staff and other department was anther shortfall that was discovers this affect the efficiency of the various departments and also the store in terms of its responsibilities in the organization.

There are not enough material handling equipment in the store, this result in damages and breakages of material.
The monthly stocktaking which take place in the organization is enough in the researchers view and very suitable for the organization for it will give room or time for proper documentation of stock on ground.

The organization has no well training programme for junior staff this resulted in low motivation of the staff especially the ones in the production and store, yet this department control between 70-80% of the organization assets in goods (finished product and raw material).

5.2 Conclusion

From the various discussions in the research study, the researchers conclude that management of the activities concerning material management and resource utilization in Seven-up Plc are performed rightly. Although some areas such as stock-taking, store handling equipment, computerization of store, training programme for junior staff, damage, determination of material, under or overstocking and distribution of finished product need to be looked into for better performance and productivity. Therefore the role of material management and resource utilization are vital to every organization whether public or private sector so competent personnel should be appointed to be changed of the production, Engineering, quality control e.t.c to avoid deteriorating and high degree of wastage.
Material represent cash in goods and every organization keeps material, if this materials are properly maintained or managed in the right quantity, quality and adequately safe custody is provided in order to prevent fire, pilferage, damage and deterioration. It will help organization to deliver its goods (finished product) to the customer and increase its profit level, also enhancing the smooth operation of the organization.

In concluding these research works, it has been proved beyond reasonable doubt that the Alternative hypothesis HI which states that material management and resource utilization can improved productivity in an organization.
Therefore, reject the null hypothesis Ho which means that material management and resource utilization cannot improve productivity in an organization.

5.3 Recommendations

In the light of the above, the researcher would like to make the following recommendation to the management of Seven-up Bottling Plc which if implemented will help to solve some problems facing material management and resource utilization in the organization.

  1. Management should see to it under no circumstances should the Store Officer’s Job, responsibilities be interfered with, so that the officer will be able to carry out his function effectively and efficiently.
  2. There should be effective communication and adequate co-operation between the Store Officer and the various departments, this will enhance mutual and whole function would be efficient.
  3. Material management and resource utilization needs or requires proper and correct information to improve on the productivity level and to meet the organization goals. The management should take note of these for efficient planning and control of inventory.
  4. The workers especially the junior staff should be occasionally sent to attend short or part-time course in various operational areas, so that they can be more or better equipped with the basic knowledge o operation in organization. Those who are qualified among them should be encouraged by promoting them. There should be room for the personnel to develop themselves towards the material management technological changes.
  5. The present system of monthly stock taking should be done every three weeks while the yearly auditing should be reduced to six months by the auditors.
  6. The stores officer on their own should involve the perpetual inventory method of stock taking to enable smooth moving of stock, damage stock and deteriorated material be quickly identified and treated accordingly instead of waiting until the end of year before they are auctioned out.
  7. The management of the organization should provide enough store handling equipment such as forklift, pallets for carrying and keeping of materials.
  8. Management should make provision of funds to proper maintained the various equipment or machines used for the production of soft drinks so as to prevent wastage of beverage and other material that may occur to poor maintenance or obsolete equipment.

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