CHAPTER
ONE
1.0 INTRODUCTION
Materials management was first discovered
as a very important function during the world war II after Industrial
Revolution Industries are springing up in hundreds everyday raw material are
scarce, production has become complex and the number of goods, component and
raw materials have increase to thousands accounts need to be prepared and customers
need to be attended to within a short period of time.
Thus, the importance of materials
management lies in the fact any significant contribution made by the material
manager in reducing materials cost will go along way in improving the
profitability and the rate of return on investment. Today, materials are the
live-wire of many industries, no industrial concern can operate without them.
They must be made available at the proper time in proper quality, at the proper
place and at the proper price.
Thus, the Importance of material
management lies in the fact that any significant contribution made by the
materials manager reducing materials cost go along way in improving the
profitability and the rate of return on investment. Today materials are livelihood
of any industry. No industrials concern can operate without them. They must be made available at the proper time
in proper quality at the proper place and at the proper price.
1.1 BACKGROUND OF THE STUDY
The researcher decided to write on the
materials management as a tool for optimal utilization of resources a case
study of Kaduna Nigeria
The researcher decided to limit the work
to Kaduna
The researcher also feel this is an
opportunity open to the research on the material management in such establishment
and see practically how material management as a tool for optimal utilization of
resources activities are being carried out and also hoped that the organization
and the researcher will benefit from this work.
1.2
STATEMENT OF THE PROBLEM
Manufacturing industries are face with a
lot of problem on how to manage their materials resource effectively from the
port of purchasing of these materials to warehousing issuance to production
department up to the finished goods. These materials resources are very scale
and as such need to be properly utilized in order to understand the statement properly
we need to look at same of the following terms.
1. What
are materials?
2. What
is management?
3. What
is material management.
4. What
is the meaning of resource and resources utilization.
5. Are
materials resources properly utilize and if they are in what way.
1.3
OBJECTIVE OF THE STUDY
The objective of this study is to look
at the significance of materials management on utilization of resources in
manufacturing industries Kaduna Nigeria Kaduna
1.4
STATEMENT OF HYPOTHESIS
A Hypothesis is a statement of fact, which can
be verified. Therefore, hypothesis should be used for problem that will
required statistical testing and it should be stated as a Null hypothesis (Ho) which
is a statement that has no significant relation ship between the variables existing
to assist him or her in clearly stating the problem and the alternative hypothesis (Hi) , which is the opposite.
H0. That
affection of materials management on utilization of resources cannot improve productivity
in a production system
Hi: That efficient material management on
utilization of resources can improve productivity in a production system.
1.5
SIGNIFICANCE OF THE STUDY
The significance of the material
management cover various aspect of life as a result it importance cannot be
over look in particular the manufacturing industry (Kaduna Nigeria
1.
It help
in coordination of activities, this is done through coordination of semi autonomous department
activities like purchasing stock control transport and distribution etc
2.
Materials
management concept guide against sub-optimization, that is, it enable the whole
department to think as one
3.
It also
helps in delivery of production materials at the proper time, place and at the
proper price
4.
Material
management brings abut cost reduction by bringing materials
5.
Materials
management also improves profit throwing efficient and effective acquisition of
materials.
1.6 SCOPE OF
THE STUDY
As a result of idea on materials
management which covers a wide area the project team intends to look into the
affairs of the organization([Kaduna Aluminum Company Plc Kaduna) on materials management
and resource utilization from the past thirteen years 1992 to 2008. This
research restricted to specific area of materials management including invoice,
Local Purchasing Order (LPO) Purchase Requisition Note, Bin Card, Job order and
form mean while further data would be obtained through the following departments.
1.
Production Department: Is the key sector of the industry. Its
function determined the function of all other department. They have responsibility
of forecasting, planning, controlling activities and as well providing programmes schedules on
production on when, how and where to produce. Also determine the quality and
sequence of job.
2.
Account Department: is in charge of accounting and
responsible for settlement of invoices, costing of materials for the purpose of
final account, that is, to determine the production cost.
3.
Marketing Department: In charge of all the marketing
activities, which involve recognizing of consumers need, developing products
and services to satisfy these needs, creating and expanding depend for the
products. It promotes the image of the industry and security jobs for industry.
4.
Personnel Department: Is also called administrative
department with the responsibilities of recruitment of workers both skilled and
unskilled, training and retraining of
personnel, discipline, promotion and co-ordination the affairs of all
department.
5.
Store Department: This department has the following
function of render to the industry such as:
a.
To
ensure the security of stores in order to prevent unauthorized withdrawal of
some material from the store and avoid unnecessary wastage.
b.
To
make available balance flow of materials components and tools.
c.
To
keep records of materials received and issues to ensures economic level of
stock holding.
d.
To
take charge of the installed storage space to ensure it economic utilization.
1.7
LIMITATION OF THE STUDY
Some of the limitation of this very
particular study are already prominent from sampling method and procedures
embarked upon for instance, lack of adequate fund, time constraints, reluctant
in revealing actual fact and possible alternative of secondary data information
as a result which is limited to Kaduna Aluminum limited in order to narrow the
focus for period of study.
1.8
HISTORICAL BACKGROUND OF THE CASE STUDY
The study of Kaduna Aluminium Limited
show that the manufacturer of Aluminium doors, windows of various type and
size, portioning, cubicles, suspended ceiling, sun breakers in glass or Aluminium
and certain wall was established in 1982.
With the technological support from Hong Kong , Japan Taiwan
Kaduna Aluminium Limited has its
headquarter base in Kaduna
1.9
DEFINITION OF TERMS
Some operational definition where used,
which are to be seen strictly and mainly in the light of this study and are
defined as Follow: -
Board of Directors: They are the overall policy makers of
the organization. They make a final decision on the activities to be carried
out in the organization.
Project Manager: He or she is in charge of any
administrative contracts both pre and post contract and concerned with the
proper construction for any project (contract) offer to the organization.
Marketing Manager: He or she is in charge of promoting
the image of organization and securing Job for the organization.
Chief Accountant: Head of account department, he or she
plans the branch budget and other financial function. He or she is answerable
to the General Manager.
Personnel Manager: He or she is in charge of the
recruitment of skilled and unskilled personnel, training, discipline, promotion
and coordination of the affairs in the organization.
Production Manager: He or she is the manager in charge of
the production department.
Supervisor: He or She Supervise the worker under
him or her. He or she is answerable to production manager.
Store Officer: He or she is in charge of inventories
in the stores and issues to the users department. He or she is answerable to
the chief accountant.