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IMPACT OF MATERIALS MANAGEMENT IN THE PRODUCTVITY OF AN ORGANIZATION 

CHAPTER ONE

INTRODUCTION

 1.1  Background of the Study

Due to sophistication in technology coupled with socio-economic and political instability, production processes face complex problems that needs to be addressed by management ensuring that materials are allocated and used in the most efficient and effective manner. The material management technique on production is also to identify problems by guiding against sub-optimization of the material management techniques in production planning processes, for this the researcher suggests that which will achieve optimal result quickly, cheaper and acceptable. Today materials are the live wire of every organization be it public or private, hence no organization can survive without material, its availability, distribution and transportation and delivery at the right amount and quality is paramount.

1.2   Statement of the Problem

Organizations are faced with problems in relation to utilization of the effect of material management being the utmost thing that are needed to be utilized effectively. The problem facing material management are mainly under stocking or over stoking of material, stock obsolescence breakage and the economic order quantity. Due to the fact that the impact is to be felt positively in the society by making themselves’ productive in every area of inputs. But despite the effect observed there have been general apathy, ignorance and lack of interest by many people and the government.

1.3   Objectives of the Study

The main objective of this study is to determine the effect of compensation management on employee performance. Specific objectives include:

i. To assess the impact of material management on organizational performance.

ii. To appraise and further appreciate the significance of material management in a manufacturing industry.

iii. To identify and ascertain some of the problems posed by materials management.

1.4 Research Questions

i. What is the impact of material management on productivity?

ii. What is the impact productivity on organizational development?

iii. What are some of the problems posed by materials management?

1.5 Research Hypotheses

Hypothesis I

H0: Material management does not have any significant impact on organizational performance.

Hi: Material management does have significant impact on organizational performance.

Hypothesis II

H0: Material management does not have significant impact on manufacturing industry.

Hi: Material management does have significant impact on manufacturing industry.

Hypothesis III

H0: Material management does not pose a problem to productivity.

Hi: Material management does pose a problem to productivity.

1.6 Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.7 Scope of the Study

This study is on the impact of materials management to gather necessary information and suggest solution to the problem facing productivity in organizations.

1.8 Limitations of the study

The demanding schedule of respondents made it very difficult getting the respondents to participate in the survey. As a result, retrieving copies of questionnaires in timely fashion was very challenging. Also, the researcher is a student and therefore has limited time as well as resources in covering extensive literature available in conducting this research. Information provided by the researcher may not hold true for all research under this study but is restricted to the selected respondents used as a study in this research especially in the locality where this study is being conducted. Finally, the researcher is restricted only to the evidence provided by the participants in the research and therefore cannot determine the reliability and accuracy of the information provided. Other limitations include;

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

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.

· Purchasing: Purchasing is defined as the activity directed to securing by legal means, the materials suppliers and equipment required in the operation of an enterprise.

· Sourcing:  This is referred to the investigation and evaluation of sources of supply and suppliers.

· Negotiation: Is a process of planning, receiving and analyzing conditions by both buyer and seller to arrive at an acceptable agreement through mutual understanding.

· Expediting: It is a process of ensuring that goods are promptly delivered to the right place and at the right time.

· Purchasing Requisition: It is a form usually prepared when a department or stores need materials to be purchased.

· Issue: Issue is the withdrawal of goods and handover of stock to user backed with authorized documents.

· Organization: Are artificially contrived structure with procedures and objectives defining the responsibilities, who does what type of job task, who report to whom and when and who is responsible for what action.

. Quality Control: Is a process whereby goods and services are examined to ensure that they conform to predetermined standards.

. Obsolescence: These are materials for which there is no demand either because of the presence of a better substitute or they are out of use or fashion.

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