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The Impact Of Effective Materials Management In A Manufacturing Company

Download complete project material on The Impact Of Effective Materials Management In A Manufacturing Company  from chapter one to five


For better linkage and proper understanding of this research work, it is divided into five chapters. Chapter one comprise of the introduction of project topic, introduction of the study, importance of the, definition of key terms and concept plans of the study.

Chapter two take a look at the literature review with emphasis on the concept of leadership, the meaning of organization, the relationship between leadership style and their applicability.

Chapter three comprises of the research methodology and various sources of data collection population group and sampling technique and the historical background of the impact of effective materials management in a manufacturing company its organization structure of the impact of effective material management in a manufacturing company.

Chapter four deals with data presentation and analysis, result and findings while its last chapter which is chapter five deals with summary of the findings, conclusion and recommendation for further research work as well as references.







Table of contents


1.0 Introduction

1.1 Statement of the study

1.2 Objective of the study

1.3 Significance of the study

1.4 Statement of the Hypothesis

1.5 Scope and limitation of the study

1.6 Historical background of the case study

1.7 Organization chart of the case study

1.8 Definition of Terms



1.1 Introduction

2.1Definition of material management

2.2Source of raw materials

2.3The make or buy decision

2.4Factors affecting the size of raw materials held in stock

2.5Costs of associated with raw materials

2.6 The inventory management system

2.7 Management companies

2.8 Characteristics of manufacturing companies

2.9Types of manufacturing companies

2.10 Factors affecting the operation of each company

2.11 The impact of material management on manufacturing companies.


1.2 Research methodology

3.1 Data collection Research method used

3.2 Instrument used in data collection

3.3 Research population and sample size 


4.0 Data presentation analysis and interpretation

4.1 Introduction (Theoretical Essay Writing)


5.0 Summary of findings, conclusion and recommendations

5.1 Summary of findings

5.2 Conclusions

5.3 Recommendations



The manufacturing sector plays an important role in the Nigeria economy and has benefits that are crucial for her economic transformation in a typical advanced economy, the manufacturing sector is leading, if not the only leading sector in many aspects .it is an avenue for increasing productivity related to import replacement and export expansion creating foreign exchange earnings capacity raising employment and per capital income which results in unique consumptions.

Before independence, agricultural production dominated the Nigeria economy and accounted for the share of its foreign exchange earning.

Initially, inadequate capital investment permitted only modest expansion of manufacturing activity ,early effort in the manufacturing sector were oriented towards the adoption of import substitution strategy in which light industry and assembly related manufacturing ventures were embarked upon by the formers trading companies.

The structural adjustment program (SAP) of 1986 was partly designed revitalize the manufacturing sector of the economy by shifting emphasis from sourcing for inputs from abroad to increase domestics sourcing through monetary and fiscal policies deregulation of the foreign exchange market was also effected to make non oil exports more competitive .although this equally resulted into massive escalation of input cost.

The overall feeling and the simple truth is that Nigerian economy sis still in the woods, the business environment is particularly hostile to industrial harmony and higher productivity, putting into consideration the past decade and even the present one, would see that the economic variables of the external business environment which are uncontrollable in nature have had negative effect an production activities .

Therefore, for a business to survive, remain profitable and enhance its production activities it must adopt strategies aimed at effective and efficient management of its resources to keep it and course,

These resources are mainly human and material but for its purpose of this project we are concerned with the raw materials varying from the initial sourcing to the final utilization in order to get the final goods

Material management is the act of co-coordinating all material resources available within the organization in the most economic way that guarantees the right quality soas to make goods available to customers as when needed in an attempt to achieve the overall broad objectives of the organization optimum use of them by ensuring available of materials needed at the right price, quantity, quality, from right supplier and delivered at the right time and place.

The price, quantity quality, time and sources already mentioned are controlled variable belonging to the internal environment of the business which can be managed with proper plans put in place.

Nevertheless, the greater challenge facing a business as it affects material management in production deals with the uncontrollable variable of the external environment which needs to be manipulated particularly in battered economy like ours.


The subject of material management cannot be overemphasized in manufacturing companies today a failure to take cognizance of it has resulted in the winding up of so many company in present times because proper management of material was not done this has led to tying down of capital breakdown in production activities, reduced sales and profit, increase waste and scrap, loss of customers to competitors and even fall in our foreign exchange earnings.

Since this problem is true of many manufacturing companies in our economy, the question that came to mind which this project will highlights are:

1 How far has material management gone in solving organizational problem?

2 What effect does material management has on the employees, company and their output?

3 What are the costs, techniques organization employ to in the management of materials?

4 How many manufacturing companies in Nigeria have coping with the limited sources of raw materials.


This study aims at under-listed objectives;

1  To examine how raw materials can be made available course of source from abroad.

2  To highlight strategies and sub-strategies that can be adopted in order to develop alternative mean of getting raw materials soas to guarantee availability as at when needed.

3 To identify the role of material control effective management of raw material such that can be procured and stored at an economic quantity that guarantees a fair price and sound quality

4  To take note, if any of the role of machine utilization in the management of raw material in order to reduce scrap rate


All participants of the manufacturing sector are being badly affected by the batter nature of our economy even the consumers are not spared, the significance of this study lies in the fact that it will attempts to provide solutions to same of these, this will reveal alternative mean of sourcing for raw material thereby solving the problems of complete dependence on foreign sources.

Economically, producers can plan adequately to guide against higher than maximum stock level as well as to lower than minimum stock level.

These two situations have some negative implication on the business working capital and corporate image respectively

This study will bring to light the place of material management as an indispensable function; this will help to eliminate shortage of materials which cause poor market Performance in case where the organization cannot meet market

This will enable production specialist to become more conscious about the economic order quantity (EOQ) i.e. the quantity at which cost can be produced in the barest minimum ,this  will encourage organization to handle stock control with great caution


The following postulation will be made in the course of this study ,these assumptions are validated with data gather from field work and will be analyzed in chapter four therefore the working hypothesis employed in the course of this study are


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