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Effective Materials Management In Achieving Organizational Goals

Download complete project material on Effective materials management in achieving organizational goals from chapter one to five

TABLE OF CONTENT

Title page

Declaration

Approval page

Dedication

Acknowledgment

Abstract

Tale of content

CHAPTER ONE

Introduction

Background of the study

Statement of the problem

Objectives of the Hypothesis/study

Effective Materials Management as a Tool for Achieving Organizational Goals

Significance of the study

Scope of the study

Limitation of the study

Historical background of the case study

Definition of terms

CHAPTER TWO

Literature review

2.1     The concept of material management

2.2     Determination of material needs

2.3     Stock control and stock taking

2.4     Organization of stores functions

2.5     The significant of materials management concept

2.6     The materials flow system

2.7     Material handling

2.8     Benefits derive from material management

CHAPTER THREE

Research methodology

3.1     Research Design

3.2     Research Population

3.3     Sample size and sampling procedures/techniques

3.4     Method of gathering data

3.5     Justification of method used

3.6     Method of data analysis

3.7     Justification of instrument used

CHAPTER FOUR

Data presentation and analysis

4.1     Data presentation

4.2     Data Analysis

4.3     Test of Hypothesis

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

Summary of Findings

Conclusion

Recommendations

Bibliography

Appendices

CHAPTER ONE

1.1 Background of the study

Organizational goals explains how an organization intends to go about achieving its mission, an effective materials management  plan builds from and enhance an institutional master plan by filling in the gaps and producing an environmentally responsible and efficient outcome.

An institutional campus, office or housing complex can expect a myriad of benefit from an effective materials management plan.  For start, there are long-term costs saving, as consolidating, reconfiguring, and better managing a campus core infrastructure reduces annual operating cost.   An institutional campus, office, or housing complex will also get the biggest and best use out of campus real estate.

An effective materials management plan also means a more holistic approach to managing vehicle use and emissions, solid waste, hazardous waste, recycling and utility services.  As a result a “greener” more sustainable environment and a manifestation of the many demands to day for institution to become more environmentally friendly.  In fact thanks to such environment advantages creative materials management plans may qualify for LEED innovation design credits

An effective materials management plan can improve aesthetics, removing unsafe and unsightly conditions, placing core services out improve the creating a more pedestrian-friendly environment will improve the visual and physical sense of place for those who live and work there.

The need for production function to meet the growing complexity of industrial structure has brought about the use of the term materials management.

Materials management has expanded the traditional scope of purchasing and procurement to cover the entire materials management process.  Thus, lee and Dobler define materials management as a confederacy of traditional materials activities bounds by a common idea, the idea of integrated management approach to planning, acquisition, conversion, flow and distribution of production materials from raw materials to the finished product state.

The concepts provides delegation of responsibility and authority will regards to procurement and ready supply materials, it also recognizes the importance of management principle of accountability by providing a management who is responsible for all decision, a condition lacking in convention organization.

Impact Of New Product Development In A Co-Operate Profitability

Impact Of Collective Bargaining On The Services Industry

The essence of materials management may be termed as coordination and more has shown that the closer the coordination the effective that total number of progressive companies has made it clear to their approaches to the functions and responsibilities of materials department that the requirement of other department must be made known to material department. No other department should be permitted to obtain materials or equipment by any means unless prior agreement of materials department has been obtained.

Though materials management is a relatively recent concept, it is only in the past for decade or so that much thought has been given to this function, it is mainly since the second world war that industries all over the world awoken to the fact of the tremendous economic that they may be achieved by efficient materials management.  The concept is so relevant to business organization because bulk discover and obtaining special vendor relation. It means that spending valuable money is in the hands of people who are trained and competent for this job.

Frequently, it is found  all that materials is expensive and in order to reduce overall cost, it required the close cooperation and coordination of materials and over user department to ensure that materials ordered are made to arrive only when they are needed. The benefit of thus approach is that of cost reduction and maximization of the company’s prompt.

The application of materials management has not been properly applied in Kaduna Refinery and Petrochemical Company, Kaduna with the aim of identifying problems and offering suggestions towards the solution of such problem. The need for efficient operation of materials management is increasing in recent time and therefore the need for readily available solution to the associated problems are necessary so that they would be used immediately to overcome those problems.

Materials management is that branch of logistics that deals with the tangible components of a supply clear, specifically this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts and the standards involved in ordering, shipping and warehousing the said parts.

The goal of materials management is to consolidate and efficiently handed core services.  It creates truck deliveries and service vehicles routes that reduce conflicts for vehicles and pedestrians.  Delivery sites and loading docks are more effective and reduce redundancy cost  is  reduced when it comes to solid and hazardous waste removal, storage and recycling utility infrastructure and service equipment relocation can improve aesthetics.

Quality assurance: – A large component of material management is ensuring that parts and materials used in the supply claim meet minimum requirements by performing quality assurance.  While most of the writing and discussion about materials management is on acquisition and standards much of the day to day work conducted in material are tested both  before  purchase orders are placed and during use to ensure there are no short or long term issues that would disrupt the supply  claim.

Thus aspect of material management is most important in heavily automated industries, since failure rates due t faulty parts can slow or even stop production p lines, throwing off timetable for production goals.

Standards: – The other major component of materials management will be gradual movement toward appliance.  There are standards that are followed in supply claim management that are important to a supply claims function.  For example, a supply chains that use just-in-time or lean replenishment requires clarity.  In the shipping of parts and materials for purchasing agent to warehouse to place of destination.  Systems reliant on vendor- managed inventories may begin to acquire up-to-date computerize inventories and begin to explore robust ordering system for outlying vendor to place orders on.

Promoting sustainability: – Many business and institutional campus have cluttered, noisy and often times inefficient services environment.  Delivery truck compete with pedestrians, loading dock are in plan sight, trash dumpsters sprout up and lobbies hallways and stairwell are cluttered with unplanned storage with forethought and creativity.  Those systems can reduce energy use and carbon emission, minimize traffic congestion, streamline, and operational flows and enhance esthetics.

Improving circulation infrastructure: – Redundancy can be reduced and effectiveness is increased when service points are clustered to reduce the amount of redundancy.  An effective material management program can also resolve “island” approaches to shipping, receiving and vehicle movement solutions can include creating a new central loading location, as well consolidating service area and docks from separate buildings in one developing better campus circulation infrastructure also means re-evaluating truck delivery and service vehicle routes.

Vehicle type, size and schedules are studies to make these more compatible with surrounding neighborhoods.  This will reduce truck traffic, crating a safer environment for pedestrians and a more alternative environment for other uses.

STATEMENT OF THE PROBLEM

It can be seen that the role of materials management has been designed by most industries in Nigeria, nowadays, in most companies in Nigeria the assumption is that such companies claims that they are operating an integrated approach unto their materials problems, manager of such companies are just given the title like “supplies materials manager” materials  controller, etc., yet after critical analysis of the system of operations, one often discover that the title is just given to the manage and the actual practice of material management is not really carried out more often than not.

These functions are handled by any individual without acquires the necessary skill, given the impression that even accountants, administrators, engineers and lawyers etc have the knowledge to perform the materials management function.  Thus is wrong as they do not have at their disposal all the knowledge and expertise they require to fulfill these duties effectively.

There is also ignorance on the part of most top management of the maximum benefits that could be derived from employing the concept into an organization to maximize the company profit.

Improper planning is another area of problem which entails effective and efficient requisition, handling, storage and use of all materials employed in the production of the finished product.

OBJECTIVE OF THE STUDY/HYPOTHESIS

The motivating factors that led to this research topic is that the researcher has always seen the essence of materials management in an organization as the very crux of that organization hence the opportunity for a reliable, authentic and authoritative materials in the field of material management, and also being a pre-requisite for the award of post graduate Diploma in production and operations management.

Furthermore, it will serve as a guide to fellow students and researchers who like to make further research on this field and to benefit schools, the researcher have decided to undertake this study to analyze the basic principles and application of material management function in Kaduna Refinery and Petrochemical Company, Kaduna.

EFFECTIVE MATERIALS MANAGEMENT AS A TOOL FOR ACHIEVING ORGANISATIONAL GOALS

A hypothesis is a conjectural preposition, an informed intelligent guess about the solution ton a problem. It is an assumption or proposition whose veracity and validity is to be established.

For the purpose of this study, the statistical hypothesis is used and stated this:-

H0: –  That application of materials management would not assist in achieving organizational goals.

H1: –  That application of materials management would assist in achieving organizational goals.

1.5     SIGNIFICANCE OF THE STUDY

The significance of the study is to identify the aims and objective of materials management in Kaduna refinery and petrochemicals company Kaduna and also to provide solution to problems that are likely to occur of materials management is not taken into consideration at early stage of the production processes.

SCOPE OF THE STUDY

Material management being a complex and dynamic concept has a wider area of coverage so it is obvious that this research cannot hold without problems which serve in most cases as problems.

As such the work is limited to the areas the researcher feels are crucial or relevant to the problem under investigation that is effective materials management as a tool for achieving organization goals.

LIMITATION OF THE STUDY

The following are some of the problems that the extent of the study.

1. The unwillingness in the part of some respondents to provide relevant data that are vital to the research work perhaps due to the fear that it would expose their incompetence.

2. Finance: The escalating cost of text books, other stationeries, transportation, cost of data acquisition, and money spent in cybercafés in browsing and printing of materials.

3. Time constraint: – is a major factor that affected the research work as a research of this nature requires more time to bring about a perfect work, but nevertheless this research is a top notch, quality work.

HISTORICAL BACKGROUND OF THE STUDY:

The Kaduna refinery and petrochemical company (KRPC) was commissioned in 1980 as NNPC as a wholly owned limited liability company in NNPC is the third number of refineries owned by the NNPC, and registered under the companies and allied matter Act of 1968

Being the third refinery in the country, it was establish to cope with the growing demand for petroleum products especially in the Northern part of the country, the refinery was designed to process both Nigerian and imported crude oil fuels and lubes products.

In Decembers 1985, the fuel section of the refinery was successfully debottle needed form 50,000 BPSD to 60,000 BPSD (barrels per day).  In March 1988, the 300,000 MT (metric times) per annum petrochemical plant was commissioned.  The petrochemical plant being a demonstration plant of the refinery derives us entire raw materials include utility supplies from the refinery.

In an attempted at commercialization of NNPC in the same year, it become necessary to merge the two plants (refinery and petrochemical plant) to form a single subsidiary company of NNPC (Nigeria National Petroleum Company) know as the Kaduna refinery and petrochemical company Limited (KRPC) as it is today, KRPC occupies an a land area of approximately 1.8km, KRPC is made up of two main division namely. Refineries and petrochemicals.

The company has two directors (EDO and EDS) Executive Director Operations and Executive Director Services who report to the managing Director, however there are departments that report directly to the managing director and are regarded as the managing Director Division.

Manager leading the department report to their respective executive director and those under the managing director report directly to him.

The products commonly associated with the Nigeria National Petroleum Corporation are petrol (premium motor spirit,PMS), kerosene, diesel and aviation fuel (also known as aero kero) these help to power economy as fuels for the transportation sector, as the sector is so critical for over daily socio-economic interaction.

Fuel oils from KRPC are essential energy inputs for industrial production; supply has steadily increase overcome thereby reducing downtime and increase industrial capacity utilization for power generalization for domestic use, industrial produces the following petroleum products.

1. LPG (liquidified petroleum gas)

2. Fuel oil

3. AGO (diesel)

4. Black oil

5. Kerosene

6. LAB (linear Alkyl benzene)

7. Asphalt

8. Wax

9. Lube base oil

10. PMS (premium motor spirit)

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