AN
APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER
PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

The Need for Appraisal of Material
Management Concepts as a strategy for achieving higher productivity and to make
up with the growing complexity of industrial needs. Management performance
appraisals is one of the most important opportunities in effective delivery of
the company’s set objective if done correctly, performance appraisals can help
close the gap between the actual performance of the company and the performance
needed to make corporate objectives.

Appraisals Management can be compared
to an annual check-up: both provide an opportunity for an honest assessment of
how you are doing. You need to know what you are doing is right so you can continue
with those activities.

Modern
management has expanded the traditional scope of purchasing and procuring to
cover the entire material management process. Thus Lee and Dubler (1983) define
Material Management as a confederacy of traditional material activities bound
by a common idea, and of intergraded management approach to planning.
Acquisition, conversion, flow and distribution of production material from the
raw material state to the finished product state.

The concept
also provide for delegation of responsibility and authority with regards to
procurement and supply of material. The concept also recognizes the importance
of the principle of accountability by providing a management approach which is
responsible for all decisions.

Through material management, there is
relatively recent concept much through has been given to it particularly since
World War II, when industries all over the world were awoken to the fact that
tremendous economies could be achieved by sufficient material management. The concept
is today relevant to business organization because they will have a centralize
body responsibility for buying with the overall advantage of procuring standard
material at possible bulk. Disco unit and obtaining special vender relation. It
means that spending valuable money is in the heart of people who are trained
and competent for this job.

Performance Appraisal in Material
Management evaluates materials employee’s current and past performance to the
productivity standard, management processes through which companies ensures
that the materials are working towards organizational goals include, practice
through which manager defines the materials sets targets and work, develops the
productivity and evaluate the outcome of production.

Frequently, it is found that material
are expensive and in order to reduce overall costs, it require the close
cooperation and co-ordination of material and other user department to ensure
that material ordered are made to arrive only when they are needed, the benefit
of this approach is that of cost reduction and maximization of the company’s
profit.

Thus, the growing need for efficient
operation of material management is increased in recent time.

1.2     Statement
of the General Problem

Attempts has been made towards
operating on integrated approach to their material problem such as lead time
organization is not certain so therefore time given to complete a given task of
production delivery of goods always exceeds the expected given time.

The use of quantitative techniques in
assigning jobs in some organization may cause wastages of materials as the
individual involved may not have the skill and technical know-how to carry out
the task effectively and efficiently.

Lack of training and retraining of
members of staff on how to use the materials and keep the proper records of
inventories can also bring losses and production of inferior or scraps that may
not be useful to the stud intends to investigate on the strength and weakness
of workers, maintain good record keeping and to know the problem of material
management in the case study (Nigeria Bottling Company).

1.3     Objectives
of the Study

An appraisal of Material management
concepts as a strategy for achieving higher productivity in Nigeria Bottling
Company is the systematic evaluation of the performance of materials and to
understand the abilities of a production for future growth and development
having the following objectives:

i)                  
To maintain records in order to determine compensation
packages, wage structure.

ii)               
To identify the strengths and weaknesses of materials (human
and raw materials)

iii)             
It serves as a basis for influencing working habits of the
employees.

iv)             
To review and retain the promotional and other training.

However, it is hoped that the research
will serve as a guide to students who would also like to make further research
in this field, and to benefit the school by keeping it in the library for
reference purposes, in view of the above the researcher has decided.

1.4     Statement
of Research Hypothesis

A hypothesis is a conjectural
preposition, an uninformed intelligent guess about the solution to a problem.
It is an assumption or proposition whose validity is to be established. For the
purpose of this study, the following hypothesis is used:

H0:     The application of material management
techniques does not increase the profitability of an organization.      

H1:     The application of material management
techniques increase the profitability of an organization

1.5     Significance
of the Study

The significance of the study is to
benefit both the research and readers, for it makes for a very interesting and
educational reading, since the study will attempt to make everything in detail
which will attract readers and future readers.

The research hypothesis and date
analysis will also enable organization to determine whether or not effective
application of material management technique increase the profitability of an
organization.

1.6     Scope
of this Study

Material management being a complex concept has a wide area
of coverage so it is obvious that research of this nature cannot hold without
problem. As such the work limited to the area. The researcher face are crucial
or relevant to the problem under investigation that affects material management
as a tool toward organizational profitability in manufacturing organization.

1.7     Limitations
of the Study

A study of this nature will normally
entails investigation into a variety of issues to be able to achieve a
comprehensive study of the problems, a lot of constraint would be encountered
in form of collection of data, lack of adequate information and scarcity of
researchers infrastructures. As a result of this, certain limitations will be
imposed on the are to be covered.

Inaccessibility of data (collection
of data) to provide the necessary information were difficult to acquire,
especially the financial figures, some of the employees who co-operated were
not in better possession of the facts and figures necessary in this project.

However, limited area of study, there
are many section in the organization of all forms of materials, however, the
researchers intension is to concentrate only on the materials store for the
project. This project apparently pose serious limitations to this project and
the researcher has to work with data that are available.

Furthermore,  there are hardly many writers on the subject
matter, therefore text books on this topic are scare, so the information was
gathered from books of accounting and purchasing, internet. Also due to the nature
of the co-operation Nigeria Bottling Company have adopted strict security
measure to non-organisation staff following the trend of events which posed
problem to this write up.

Fourthly, the study will be confirmed
to KRPC who do to have a library section which would have ease the researcher
by providing an information containing its comprehensive details of its
operational background from inception.

Moreover, there were difficulty of
securing valid personal or confidential information and the uncertainty of
receiving adequate number of responses to represent satisfactory sample.

1.8     Historical
Background of the Study

Nigeria Bottling Company Ltd was
incorporated in November 1951, as a diary of the AG Leventis group with the
Franchise to bottle and sell  Coca-Cola
product in Nigeria.

Production began in the year 1953 at
a bottling facility in Ebute-metta, Lagos.. over the years production capacity
has grown and it presently ha 13 Bottling Facilities and over 80 distribution
warehouses located across the country.

Nigeria Bottling Company Kaduna is
one of the few multinational organization that had its beginning in Nigeria
from a small family owned operation at inception, which have grown to become
the predominant bottles of alcohol free Beverages in Nigeria, responsible for
the Manufacture and sales of over thirty three different Coca Cola brands since
the production started Nigeria Bottling Company has remained the larges bottler
of non alcoholic beverages in the country in terms of sales volume with about
1.8 billion bottles sold per year, making it the second largest market in
Africa.

Today Nigeria Bottling Company is
part of the (Coca-Cola Hellenic) one of the Coca Cola company largest anchor
bottle worldwide Coca Cola Hellenic operation in the 28 countries, serves more
than 560 million consumers and with 2.1 billion unit cases sales. The company
is driven by over 6000 employees, a culture of passion for excellence,
sophisticated technology and the best distribution network in the country with
13 high performing bottling plants, over 80 depots and over 200,000 sales
outlets nationwide, the supply some ubiquitous and best known brands including
Coca-Cola, Fanta, Sprite, Schweppes, Eva Water and Five Alive.

Nigeria Bottling Company has two sections
the soft drinks and agricultural section. The company operates on large scale
Agricultural programmes with two firms situated at Zaria in Kaduna State, it
established three depots under Kaduna plants, Abuja, Zaria and Minna.

The plant in Kaduna is headed by a
Plant Manager to whom five sectional heads report, the section that make up the
plant and who are report to the plant manager are clinic, sales, production,
accounting and engineering.

1.9     Definition
of Terms

Appraisal: A judgment or assessment of the
value of something, especially a formed on.

Material: These are items used directly as
part of the product being produced.

Material Management: A business
logistic and refers to overseeing the location and movement of physical items
or products.

Concept: An understanding retained in the
mind, form experience, reasoning and imagination, a generalization or
abstraction of a particular set of instances.

Material Management Concept: The
experience on how to effectively and efficiently manage physical items and
human resources.

Strategy: A plan of action intended to
accomplish a specific goal, the art of using similar techniques in a business.

Productivity: The rate at which goods or
services are produced by the standard population of workers, or the state of
being productive, fertile or efficient.



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