Impact Of Materials Management In The Productivity Of Seven-Up (7Up) Bottling Company

Project and Seminar Material for Business Administration and Management BAM

Impact Of Materials Management In The Productivity Of Seven-Up (7Up) Bottling Company


Abstract


This study was carried out to examine the impact of materials management in the productivity of Seven-Up (7UP) Bottling Company using Lagos State Office as a case study. The study was specifically carried out to find out whether there is a significant relationship between material management and organizational productivity, determine whether material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company, determine whether material planning strategy contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company, and investigate the impact of materials management on the productivity of Seven-Up (7UP) Bottling Company. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of managerial staff of Seven-Up (7UP) Bottling Company, Lagos Office. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. While the hypotheses were tested using Pearson correlation square statistical tool, SPSS v23.The result of the findings reveals that material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company. The study also revealed that materials management has significant impact on the productivity of Seven-Up (7UP) Bottling Company as it aids better coordination of the people and activities dealing with materials, it facilitates the purchase of material and equipment are lower prices, it hastens inventory turnover, it increases the morale of staff, it reduces material obsolescence, and it improves control of quality and improves profitability level. Therefore, it is recommended that manufacturing firms develop a policy framework to facilitate faster implementation material control systems in Nigeria brewer so as to excel and guarantee its future, hence improving organizational productivity. To mention but a few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

In the current exceedingly aggressive commercial environment, the weight on firms to discover better approaches to convey value to their clients is becoming ever challenging. The expanding requirement for industry to offer items in a worldwide market based on cost and quality has generated the need to implement more productive warehousing approach. Material management has come to be perceived as an unmistakable crucial with the operation of large-scale manufacturing firms. Material management comes before processing of completed products held for distribution to customers (Coyle, Bardi, & Langely 2014). Material management appears to be essential hubs in a supply chain network because it perform an important functions that help in the development of materials, management items, dismissing vehicle loads, making stock keeping unit combinations and gathering materials for shipments purposes (Langevin & Riopel 2015).

Materials management includes all activities in the flow of materials from the supplier to the consumer. Such activities include physical supply, operations planning and control, and physical distribution Banjoko (2000). Other terms sometimes used in this area are business logistics and supply chain management. Often, the emphasis in business logistics is on transportation and distribution systems with little concern for what occurs in the factory. Materials Management is a tool to optimize performance in meeting customer service requirements at the same time adding to profitability by minimizing costs and making the best use of available resources. The basic objective of Materials Management as explained by Jacobs, Chase, and Aquilano (2009) is to ensure that the right item is bought and made available to the manufacturing operations at the right time, at the right place and at the lowest possible cost. They stressed that without adequate planning for materials resources, the overall performance of an organization may be crippled.

Nigeria manufacturing firms have understood the advantages of embracing great materials administration and are taking keen interest regarding materials administration since survival of any firm relies upon how well their expenses are overseen (Ondieki, 2014). Nevertheless, most Nigeria firms are not applying refined methods of materials administration in comparison to resources spent on acquisition and maintenance of materials in various firms. The issues experienced in material administration include absence of adaptability, entrusting a great deal of delicate material exercises to one office and absence of all around coordinated database to help data stream on materials (Wanjogu, Iravo & Arani, 2015). The various types of materials to be managed in any organization include purchased materials, work-inprocess (WIP) materials and finished goods (Banjoko, 2000). Ogbadu (2009) identified basic price, purchasing costs, inventory carrying cost, transportation cost, materials handling cost, office cost, packing cost, marketing cost, obsolescence and wastages as the various costs involved in these materials. Thus, the management of these materials so as to reduce the costs associated is what the study refers to as Materials Management Previous Researches (Whybark and William, 1986; Evan et al., 1987; Ramakrishna, 2005; Ogbadu, 2009; Ondiek, 2009) have shown that materials account for more than fifty percent of the annual turnover in the manufacturing firms. This shows clearly that priority should be given to management of materials in manufacturing firms to avoid unnecessary costs. Thus, Materials Management should no longer be viewed as a drain-pipe, but as a serious stabilizing and economic growth potential factor. Unfortunately, few studies exist yet on the impact of Materials Management on the productivity of manufacturing firms for a developing economy as Nigeria. This study intends to fill this gap.


1.2 Statement of the Problem

The present state of the breweries industry in Nigeria reflects various problems ranging from delays in project execution/delivery, substandard work, disputes, to cost and time overrun as a result of material shortage and wastages on production, theft and displacement of materials on sites, as well as poor accounting and security system of the concerned sites/firms (Adafin, 2011). According to Dahiru (2010), lack of materials not only causes delays, but a consequent decrease in productivity and resulting to cost overruns. This is no doubt lack of effective material management is one of the major cause of this problem. Failure of the manager to make available materials need could lead to delay. Non-compliance strictly with material requirement planning of quantities, schedule of materials, specifications and breweries programme in material stock control practice is another contributing factor which tends gradually to decrease profitability of a company also often leads to extension of time respectively, and hence no proper material stock control practice (Inyang Udoh, 2002). Dey (2015) noted that the rate at which materials are being wasted due to improper management is becoming unbearable to the company due to its effect on their profit margin and proper usage of material to achieve quality job been done through various techniques. Material management practices are critical to an organizations success in today’s competitive and dynamic market, (Dimitrios 2008). According to Amoro (2011), most manufacturing firms face problems of stock outs, over supply, over stocking, stock obsolescence, poor forecasting, stock pilferage, poor responsiveness to customer needs and lack of proper material management equipment, methods and practices results into poor productivity.

Edwin (2015) conducted a research on the effect of material management on profitability of cement manufacturing companies: the findings showed that proper streamlined material management systems had a positive impact on the profitability in the company. Wilfred (2014) carried out a study on the effect of the effective system of material management techniques on organization performance in the seven-up bottling company in Nigeria where he came up with the conclusion that organizations benefits from material control management by way of easy storage and retrieval of material, improved sales effectiveness, and reduced operational cost. Therefore, this study was undertaken to fill the knowledge gap by assessing theimpact of materials management in the productivity of Seven-Up (7UP) Bottling Company.


1.3 Objectives of the Study

The major aim of the study is to examine the impact of materials management in the productivity of Seven-Up (7UP) Bottling Company. Other specific objectives of the study include;

  1. Find out whether there is a significant relationship between material management and organizational productivity.
  2. Determine whether material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company.
  3. Determine whether material planning strategy contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company.
  4. Investigate the impact of materials management on the productivity of Seven-Up (7UP) Bottling Company.

1.4 Research Question

The study will be guided by the following questions;

  1. Is there a significant relationship between material management and organizational productivity?
  2. Does material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company?
  3. Does material planning strategy contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company?
  4. What is the impact of materials management on the productivity of Seven-Up (7UP) Bottling Company?

1.5 Research Hypothesis

  • Ho: There is no significant relationship between material management and organizational productivity.
  • Ha: There is a significant relationship between material management and organizational productivity.

1.6 Significance Of The Study

The research work was taken up to show the significance of materials management to aggregate performances of the organization. Apparently, all organizations, whether service oriented or good oriented need to pay attention to the essence of materials and materials management in their organizations. Consequently, it is clear that the contribution and importance of this study cannot be over emphasized.

The results of this study should also assist in defining new methods / strategies of materials management for manufacturing sector in particular and management organizations in general.

Finally, the results of this study should help scholars, students and upcoming researchers in the conduct of future research.


1.7 Scope of the Study

The study is restricted to the impact of materials management in the productivity of Seven-Up (7UP) Bottling Company. The study will be conducted in Seven-Up (7UP) Bottling Company, Lagos Office. Hence, respondents will be obtained the management department of Seven-Up (7UP) Bottling Company, Lagos Office.


1.8 Limitations of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.


1.9 Definition of Terms

Material Management:

This is defined as the grouping under one head all or some of the activities involved in the organization and use of materials employed from the need stage up to the storage of finished goods.

Stocktaking:

This is the complete process of verifying the quality balance of the entire stock hold in the store.

Productivity:

This is a measurement or calculation between input and outputs. Inputs are the amount of resources such as human resource, money, time, physical, technological and effort spent working in the organization, while output are the result.


1.10 Organizations of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the impact of materials management in the productivity of Seven-Up (7UP) Bottling Company using Lagos State Office as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine the impact of materials management in the productivity of Seven-Up (7UP) Bottling Company using Lagos State Office as a case study. The study was specifically carried out to find out whether there is a significant relationship between material management and organizational productivity, determine whether material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company, determine whether material planning strategy contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company, and investigate the impact of materials management on the productivity of Seven-Up (7UP) Bottling Company.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent weremanagerial staff of Seven-Up (7UP) Bottling Company, Lagos Office.


5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

  1. There is a significant relationship between material management and organizational productivity.
  2. Material control contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company.
  3. Material planning strategy contribute significantly to organizational productivity of Seven-Up (7UP) Bottling Company.
  4. The impact of materials management on the productivity of Seven-Up (7UP) Bottling Company includes: it aids better coordination of the people and activities dealing with materials, it facilitates the purchase of material and equipment are lower prices, it hastens inventory turnover, it increases the morale of staff, it reduces material obsolescence, and it improves control of quality and improves profitability level.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. Manufacturing firms develop a policy framework to facilitate faster implementation material control systems in Nigeria brewer so as to excel and guarantee its future, hence improving organizational productivity.
  2. Breweries in Nigeria should increase their resource commitment to staff training and Research and Development in material planning strategy so as to develop the necessary skills, update their knowledge, and enhance organizational productivity.
  3. Organizations should computerize their material management system in line with the global changes in order to be able to track the movement of materials in the store.
  4. Breweries in Nigeria should maintain good level of inventory control as it contributes a lot to the operational performance of the organization, since an effective inventory management has an overall impact on improving operational performance. Hence, the study recommends that the inventory management shall arrange better inventory control system for all inventory items for usages in order to enhance the organizational performance.

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