The Impact Of Computer In Material Management (A Study Of Camela Vegetable Oil Company Owerri)

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The Impact Of Computer In Material Management (A Study Of Camela Vegetable Oil Company Owerri)


This topic, the impact of computer un material management has been chosen in order to bring into focus, the explicit importance of computerization in business environment and contribution it makes to organization. Chapter one embraces the introduction, background of the study, its statements of problem objectives significance, research question, hypothesis, scope and limitation of the study.

Chapter two deals with the literature review and the meaning of computer system, its impact to materials management, the role of computer system. It’s problems and benefits of computer in materials management.

Chapter three emphasise on research methodlogy, introduction research design questionnaire, sample and selection of respondents, other method used its techniques observation data sources which include the primary and secondary sources and data analysis method chapter four also emphasize on data presentation and analysis testing of hypothesis decision rule and discussion on major findings.

Chapter five which is the last chapter of this research work refers to summary, conclusion, and recommendation of the project in a simplest form.

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

  • 1.0 Introduction
  • 1.1 Background of the Study
  • 1.2 Objectives of Study
  • 1.3 Statement of Problem
  • 1.4 Significance of the Study
  • 1.5 Scope the Study
  • 1.6 Limitation of the Study
  • 1.7 Definitions of Terms

Chapter Two

  • 2.1 Literature Review
  • 2.2 Definition
  • 2.3 Identification coding of stock
  • 2.4 Reasons for carrying out stocktaking
  • 2.5 Stocktaking Documents –
  • 2.6 The Importance of Stocking

Chapter Three

  • 3.1 Discussion of the Major Findings from the conceptual Literature
  • 3.1 The Factors that affects the level of stocktaking
  • 3.2 The effects of inefficient stocktaking
  • 3.3 The Importance of Stocktaking

Chapter Four

  • 4.0 Summary, Recommendation and Conclusion
  • 4.1 Summary
  • 4.2 Conclusion
  • 4.3 Recommendations
  • References

Chapter One

1.0 Introduction

1.1 Background Of The Study

Some years ago, there has some controversy about what entails the application of computer in material management. The world of computer is basically a friendly one, and no special credential is needed to become part of it while its true that modern computer system involves complex techniques and theories, their use is becoming easier all the time. Computer have a general purpose nature which makes them endless versatile.

These controversies arose among planner student’s material management business executives, top management and lot of more people. Those who recognized the computer system have concluded that it has been in existence since the evolution of man and witnessed a remarkable development of data processing equipment used in aiding the recording, analysis, and reporting of information in the operation of complex business system.

According to Uzor purchasing management concepts principle and practice (2000:417) to start with the following.

  1. Computerization in material management means converting the manual system into a computer system for efficient operations and many procurement organizations are now using computer system thousands of requisition are received and processed daily, may requests for quotations are sent out to suppliers, many quotation are received from suppliers and also analyzed and the volume of work involve in materials management is large and require computer system to make it fast and easier to manage.
  2. The application of computers in materials right is to ensure that the immediate availability of much more computer data for use in making purchase and related material decision because of its fantastic speed, the computer can supply management with virtually instantaneous reports which right otherwise take an army of clerks weeks or month to prepare and to update. The tuneless of such reports enables a materials management executive to manage by exception and to do a more effective and economical job of purchasing and managing the flow of materials throughout the operation in camela vegetable oil company limited Owerri.

1.2 Statement Of Problems

The basic and critical problems of research are seldom the problem that appears on the surface. It is therefore necessary to probe beneath the surface, in order to find out the nature and gravity of the problems. This is vital and must be done correctly to guide the researcher on what aspect to channel her research work.

Meanwhile, any mistake at the first step will lead to committing first-degree error, that is selecting wrong problem and this will result to subsequent mistakes and errors.

Generally, a lot of private and public establishment are yet to recognize the impact of computer in materials management in their various company lysons (1981:56.57) other includes,

  1. There is always high cost of money and effort in installing a computerization system, which may produce similar companies from adopting this type of system.
  2. It is always difficult to correct errors when they occur eg when the wrong number is entered on a computer transactions.
  3. It not as flexible as a manual procedure once a computer has been programmed the routine of operations must be followed since deviations will lead to confusion and mistake.
  4. A major breakdown in the computer system could cause choose in the system and in the company operational activities.
  5. The application of computers system reduces the numbers of staff. This reduction in number of staff results to unemployment and is a big problem particularly in developing companies.
  6. Computer systems are only as good as the staff operating them and the data processed and feed into the computer. Badly trained staff or faulty documentation will not be solved by the application computer in materials management.

1.3 The Objective Of The Study

This emphasis on the impact of computer in materials management and it contribution towards the dynamic business environment as regards full application of computer system as playing strategic role in material management.

This take place when all the manual system of performing activities in the materials management are converted to automated systems and all the records that are maintained in the company in different files will now be stored in disc or tape files that used by the computers central processing unit (CPU). It is then imperative to determine the following,

  1. To find out whether the view of existing literacy work in any depth exposure has been made in this direction.
  2. To conduct an important finding or research into the existing industries and institutions to determine their level of knowledge and short comings, with a view of bringing this focus vise-visa the computer system in material management.
  3. To explore areas of computer system which are skin to material management activities?
  4. To improve the application of materials management through the use of real and collected facts.

1.4 Significance Of The Study

This research intends every organization to gain from it in as much that computer system is concerned. Therefore, computer system are encouraged to be used in the rightly manner. In order to improve and up date the management activities.

The impact of computerization system will improve the method of issuing purchasing order, purchasing requisition and reduces tune wastage, cost and the volume of work involved. It will also constitute in solving the problem of mismanagement in an organization, as it will prove room for efficiency and effectiveness.

Furthermore, it is believed that the study will help the company to identify its drawbacks and how to alleviate them which will ultimately contribute to profitability of the organization thereby reducing number of staff, cost and obsolescence’s.

This is a not shell will help to expose the student who is prepared to enter into the field, the challenges he is likely to face and what would be his contribution. It will equally help our industries or the company in question. Camela Vegetable Oil Company limited Owerri and other big companies to utilize the services of computerization system in material management to benefit from their contribution to profitability and to correct the anomalies cause by the use of “uniformed generals” in carrying out management duties.

1.5 The Research Question

To test the assertion requires collecting responses from a group of question hidden in various parts of the questionnaire, with the following question,

  1. Do your organization achieve maximum, advantage with respect to the impact of computer in its operation.
  2. Is it true that computerization reduces cost, time wastage and the volume of work involved.
  3. Does the operation of computer depend on the management policy?
  4. What type of sourcing policy does the industry operate?
  5. Does the exist organization structure permit computer system approach?

1.6 Hypothesis

The following research hypothesis will be tested

  1. Ho: The effective application of computer has positive impact in material management.
  2. Ho: The cost of computerization in material management is a limiting factor and this discourages the application of computer in an organization.
  3. Hi: The cost of computerization in materials management is not a limiting factors and thus encourages the application of computer in an organization.

1.7 Scope Of The Study

The impact of computer in material management is a wide area of study. But this project will focus attention on computerization in material management as related to camel vegetable oil company limited Owerri. The study embraces all the activities that are involved in control, design engineering and other activities, which is involved in material cost. More so, the researcher also carried out an in depth investigation on the reasons why the tremendous benefit derived from material management that are computerized.

1.8 Limitation Of The Study

While carrying out this research, the researcher was confronted with numerous limitations, which includes;

Research Biases:

Most respondents although knowing the aim of this research, refused 70 cooperate. The researcher has to waste some time persuading them to answer one question or the other.

Financial Constraints:

Due to hard economic realities, enough finance research was not available.

Time Constraints:

The researcher combined his class work with the research. This made the researcher to experience a very tight schedule, as he had no transport of his own, the problem became even worse.


Transportation posed a big trait to the project. The researcher wasted much time due to transportation delays thereby getting to the research place very late. At times, interviews arranged will be missed and repeating the journal becomes inevitable.

Attitude Of Nigerians To Research:

The tendency of respondents not regarding questionnaire as important as well as nonchalant attitude of people to research in this country led to some questionnaire not been retuned. Some that was returned due to comply with instruction of the research questionnaire. Militated adversely on the progress of the research work.

Other factors that limited this work project were that, fact that there is scarcity of materials management textbooks by Nigeria authors in this country, even our lectures. This referred to the work project cumbersome.

1.9 Definition Of Terms

a. Computer system:

According to Leender and Fearon (1997:102) the analysis of procedures used in performing the purchasing and supply function have been based largely on the use of traditional office equipment and clerical (mannul) method. The computer is an electronic mechanical device which has the ability to accpt data (input) processing the information and retrieving some for further usage under the control of a step vise set of instruction called the programmers’.

b. Data control:

The need for timely and adequate information has lead to the development of information system, which is a set of organized procedures which when executed provide information for planning, decision making and controls in organization.

c. Management controls:

Anthony defined management control as ensuring that resources are obtained and used effectively and efficiently in the accomplishment of the organizations objectives.

d. Electronics funds transfers (ETF):

Electronics funds transfer describe a system whereby a computer user can use his computer system to transfer funs. E.g., make payment to a supplier or deposit account to current account by sending electronic data to his bank.

e. Sourcing:

Sourcing according to Baily and farmer (1979:113) is said to be the identification of suitable sources of supply.

f. Quality:

This is seen as the totality of features and characteristics of product or a service that bears on the ability to satisfy a state or implied needs.

g. Specification:

Specification according to lee and doublers (1981:48) are detailed descript of the material parts and components used in making a product.

h. Procurement:

This is defined as the acquisition of goods and services by firms, industries government and their subsidiary agencies such as parastatals Uzor (2004: page 422).

i. Lead-time:

According to Oyeoku (2001:48) defined lead is perceived and the fulfillment of the need.

j. Engineering process:

This means a situation whereby there will be cooperation between suppliers engineering and that of the buying company.

k. Research:

A research is a systematic investigation for gaining new knowledge. In order words, it is any study that lead to knowledge the person undertaken the research.

l. Hypothesis:

Hypothesis is defined as a conjectural statement which a researcher make a head of his study and which must be subjected to test to be accepted or rejected.

m. Null hypothesis (Ho):

Null hypothesis (Ho) is an ascertain that the population parameter is not different from what it have been in the pasts it represent status quo situation or an existing belief use normally assume that the null hypothesis is true until use have sufficient evident to contrary (i.e. until the assumption is nullified)

n. Alternative

A population parameter that is different from the status quo (what has been on the parts).

o. Data:

Data is defined as the gathering of information either from primary source or from secondary source.

q. Electronic mail (E-mail):

This is process of the uses to transmit message back and forth within the organization and to external parties.

r. Voice mail:

This mail terms both parties into receptionist who spend their turn at “lelphone”

s. Research:

Research simply means investigation-undertaken information or resoles conflicting ideals of confirms the validity of existing idea. It is also involve an organized process of convincing at dependable solutions to problems through planned and systematic collection, analysis and interpretation of data.

t. Decision rule:

Decision rule is a rule that simplify the condition under which a null hypothesis may see rejected.

u. The observation techniques:

This is a fact finding activity designed to recognize and note facts as they occur.

v. Primary data:

This is data collected by the investigator himself for a particular statistical enquiry.

w. Secondary data:

Secondary data are data taken as second-hard information from figures originally collected by some one else.

x. Acceptance rejoins:

The acceptance rejoin is a set of sample value that will lead to the acceptance of it while rejection rejoin is the set of sample value dealing to the rejection of Ho.

Chapter Five

5.0 Summary, Conclusion And Recommendations

5.1 Introduction

This is one of the most important parts of the research exercise because from this chapter and interested researcher concerned will quickly glance through without difficulties and to act as a guide in the management of materials. This is why the researcher has carried out a proper evaluation reference to the problem statement, it solution and objective.

In line with the above established fact, the researcher had deemed it necessary to reasonable draw conclusion, summaries and make some meaningful and suggestive recommendations in this chapter.

5.2 Summary

This project work had come to summary at this point in time by emphasizing that computerization system in materials management has contributed much to the profit making of the organization which is “camela vegetable oil limited Owerri” this is the form of both raw materials that have purchased for use in the operation of the organization.

Chapter two of this work, which is the literature review is obvious that research had previously been carried out in this area under study so the researcher in this work cited a number of scholars, whose work were reviewed and acknowledge accordingly. However effort have been made to bring in opinion of who have written on the subject matter.

On the other investigation into this work were conducted by the use of questionnaire, personal interview observation and to some extent desk research in chapter three and chapter four of this work, which is the answer given in the questionnaire distributed to a selected sample population.

From the above, the researcher in chapter five having gone through his findings and statement of purpose had deemed it necessary to make useful recommendation and finally draw up conclusion which will help for further research work to act as fool for the management of materials in computerized system.

5.3 Conclusion

To conclusion this work, it should be realized that the prime objective of any company is to make profit with a drastic cost reduction. From the investigation carried out in camele, Vegetable Oil Company limited Owerri, the problem centered on improving the co-operation and control of the various activities that contributed to the total materials cost.

When the finding was analysis, it was found out that the organization could have attained effective control of its operating unit. Form the standing point of materials control production should definitely be located in the department because it controls scheduling of production and material management.

The fact that bases from poor computerized system of material management are not seen directly does not occur it occur but not so obviously and is even so disastrous compared to the conspicuous ones.

5.3 Recommendation

Having carried out a through investigation on camela vegetable oil Company limited Owerri especially the areas relating to material acquisition and management that are in need of computerization system an having analysis my findings the researcher thus.

  1. The company should be able to make available data processing equipment with due regard to facilities for installation and then financing
  2. The bulk of raw materials used in the industry should be controlled by the store department since stocks represents money, it therefore means that any misappropriations will cause losses to the company stores department should handle material with reasonable care.
  3. The company should have a cordial relationship among the functional units because this will go a long way in contributing towards the cooperate objective by reducing cost through effective computerized system in materials management.
  4. The company structure of the organization should be re- designed to allow perfect materials management type of organization. It is true that camela vegetable oil company limited Owerri, have a computerized materials management department but, it is not well structured. The recommendation structure of camela vegetable oil Company limited Owerri Imo State.
  5. The company should involve in sophisticated material planning and control for long range material source and acquisition, taking into consideration the persistent recurring shortage at basic material evident in todays economy, which are likely to continue and become more complex in the future
  6. The company should computerize the systems, to enhance speed and accuracy. Other related electronic data processing equipment, should equally be put in place, with due regard to facilities for their installation and subsequent maintenance.
  7. The company should organize seminar lecturer’s systemposia from time to time. They should equally be trained and re-trained.

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