The Impact Of Material Management On The Performance Of Manufacturing Industries In Kogi State

Project and Seminar Material for Business Administration and Management BAM

The Impact Of Material Management On The Performance Of Manufacturing Industries In Kogi State


This research work examines “the impact of materials management on manufacturing companies, a case study of Dangote Cement Company Obajana” data for this study were obtained from primary sources. The sample size of one hundred and thirty-three (133) was drawn for the entire population of (200) two hundred staff using systematic sampling techniques, questionnaire and personal interview were applied in obtaining data from respondents and the efficiency of the field work from the too respondents were validated using Taro Yamane’s formula hypothesis was tested using chi-square theory. All findings held of 5% (0.05) significant level. The analysis enables some organizations to know the relationship between wages and salaries administration and the performance of the workers in an organization. The findings among others revealed that materials management has an impact on manufacturing companies. It is therefore recommended that business enterprise should effectively manage their materials for optimal output and improved productivity.

Table of Contents

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgements
  • Abstract
  • Table Contents

Chapter One


  • 1.1 Background to the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Research Hypotheses
  • 1.5 Significance of the Study
  • 1.6 the Scope of the Study
  • 1.7 Limitation and Constraints of the Study
  • 1.8 Definition of Key Terms

Chapter Two

Review of Related Literature

  • 2.1 Conceptual Framework
  • 2.2 Empirical Literature
  • 2.3 Theoretical Framework
  • 2.4 Historical Background of Dangote Cement Company Obajana

Chapter Three

Research Methodology

  • 3.1 Research Design
  • 3.2 Area of the Study
  • 3.3 Population of the Study
  • 3.4 Sample of the Study
  • 3.5 Method of Data Collection
  • 3.6 Administration and Retrieval of Instrument
  • 3.7 Problems of Methodology
  • 3.8 Method of Data Analysis

Chapter Four

Data Presentation and Analysis

  • 4.1 Presentation of Data
  • 4.2 Test of Hypotheses
  • 4.3 Discussion of Findings

Chapter Five

Summary, Conclusion and Recommendations

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

Chapter One


1.1 Background to the Study

Material management is a function which aims for integrated approach towards the management of materials in a company. Its main object is cost reduction and efficient handling of material at all stages and all sections of undertaking.

Material management generally includes purchasing, distribution, ware housing of products and materials you deal with functional parameters and the needs of your internal customers.

Material management deal with the material costs, material supply, utilization and it handling, it is concerned with the planning and programme of material and equipment market research for purchases, procurement of materials (capital goods, raw materials components and semi-finished items) packaging, storage and inventory control materials handling and disposal of scrap and surplus.

With above mentioned functions, it is clear that materials manager has to work with the co-operation of different Heads of Departments for instance, he must co-operate with the production department for ascertaining what parts in what quantities and at what times they are required and for inventory control. He also liaises with sales department for the transportation of outgoing materials handling operations throughout the establishment. The stores department for the disposal for scraps and re surplus and control department to get the income material inspected.

1.2 The Statement of the Problem

It has been observed by many individuals that most of the companies have not been able to arrive at their set objective because of poor material management. Besides, as a result of much organizations falls below standard, since there is no efficient and effective relationship between store department and production department. It is against this background that he researcher decides to evaluate the nature of material management in manufacturing company especially at the case study of this project (Obajana Cement Company) with the aim of evaluating materials management better ways of improving materials management in the organization.

1.3 Objectives of the Study

The main objective of the study is to examine the impact of material management on the performance of manufacturing industries in Kogi state.

  1. To examine the impact of materials management on profitability.
  2. To examine the effect of materials management on the organizational efficiency and performance.
  3. To examine the impact of materials management on customer’s satisfaction .
  4. To examine the effect of materials management on the organizational coordination.
  5. To examine if the positive effect of those materials management has helped improving the company productivity.

1.4 Research Hypotheses

Hypothesis simply means an idea or suggestion put forward as straight points for reasoning and explanation.

The hypothesis helps the research to accept or reject theories based on her investigations and to further useful her studies and make useful recommendations.

Having stated the research problems as explained and line in this study, these problem has been view through the following research hypothesis:

Hypothesis 1
  • Ho: Materials management does not have any positive impact on a management company
  • Hi: Materials management has a positive impact on a manufacturing company.
Hypothesis 2
  • Ho: Materials management does not serve as effective and in efficient tools for manufacturing company
  • Hi: Materials management serves as effective and in efficient tool for manufacturing company.
Hypothesis 3
  • Ho: Materials management does not have a role to play in manufacturing company
  • Hi: Materials management has a role to play in manufacturing company

1.5 The Significance of the Study

This study serves as importance to Obajana Cement Company and other manufacturing companies as well. The result of the study will show the contribution of materials management to manufacturing company. The significance of this research work is to examine critically the description of all items kept in store. But the ever changing new world with different kind of idea, change in technological development and complex business operation necessitated the study of the management to melt up the challenges. This research work is also significance to the students of Business Administration in the school of management studies, Kogi State Polytechnics, Lokoja. This study is expected to serve as guidelines for other researcher who will wish to make the recommendation contained in this research work, will be immense benefit to material management in Obajana Cement Company by way of efficient and effective management decrease in labour turnover and lower administration cost.

1.6 The Scope of the Study

Materials management is a kind of topic that is very wider in scope. But this project work will be limited to what is practiced in Obajana Cement Company it is a fact that materials management has been in existence for a very long time. Management and control of materials in Obajana Cement Company. It is a fact that materials management has been in existence for a very long time techniques will be analyzed in the course of this research work.

1.7 Limitation and Constraints

There are many problems and limitation encountered in the course of carry out this research work.

1. Time:

The researcher was unable to meet the time because the gives time was failed with the researcher tries as much as possible to meet time, the staff might have closed for the day.

2. Finance:

Actually, materials management is very wide topic that demands travelling from one place to another. But due to the financial incapability as student and as such, she decide to choose nearby case study to reduce the cost of transportation.

3. Secrecy of Information:

This is another problem, the work of the management of Obajana Cement Company is somehow secret and much particular about the necessary information needed pertaining to the project work. In fact, even when supplied, the details were not given as expected and this brought about some problem in the research methodology. Their intention is to goodwill for their organization.

4. Questionnaire:

Even when researcher had some difficulties in the administration of the questionnaire given to the staff of Obajana Cement Company. Some of the questionnaires were not responded to while some not return.

1.8 Definition of Key Terms


Josephine (2010) This identification is achieve through the use of pollen keys and reference collections of physical specimens, which are regional in scope.


Josephine (2011) says inspection determines if the materials or item is in proper quantify and condition, and if it conforms to the applicable or specified requirements


Josephine (2012) define a receipt as a written acknowledgement that something of value has been transferred from one party to another. In addition to the receipts consumers typically receive from vendors and service providers, receipts are also issued in business to business dealing, as well as stock market transactions.

Issue and Dispatch:

Josephine (2013) this is the method of receiving the demand selecting the items required and handling them over to the users. It includes where necessary packaging of issue and loading with goods or material delay.


Josephine (2014) define economy as the process or system by which goods and services are produced, sold, and bought in a country or region.


Josephine (2015) define negotiation as the act of discussing an issue between two or more parties with competing interests with an aim of coming to an agreement.


Josephine (2016) A detailed descriptions of the design and materials used to make something.


Josephine (2017) This is the process of keeping materials in a store, until they are needed for production or it comprises of management of stock houses and storing equipment and protection of stock materials.

Stock Taking:

Josephine (2009) it is complete process of verifying the quantities and conditions of goods in the store. This procedure is used to check the recorded quantity recorded in the store records against the actual physical stock in the stores.

Materials Management:

Josephine (2008) materials management are any commodities used directly or indirectly in producing product or services. They include raw materials, component part assembly and supply management material in most companies is crucial to the success because of buying storing, moving and shipping material account from over half of product cost. Material management is an important aspect of business life especially in manufacturing concern. It may sometimes account for over 60% of sales revenues in giving period.

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