THE EFFECT OF MATERIAL MANAGEMENT TECHNIQUES ON PRODUCTION PLANNING PROCESS

CHAPTER ONE

Material Management is an integrated management approach to the planning, purchasing, warehousing, stock keeping allocation and movement of needed material from point of source to user department. It can also be defined as the process of management of materials which involves purchasing, storage, inspection, control and transportation. Material management is a relatively new discipline. The 20th century’s rapid growth and the significant industrial development has played a major role in the relationship and effective management of the traditional 5Ms which are: Machine, material, men, money and management. The famous industrial revolution made material(s) the largest elements costs in any organization. At the wake of the 20th century many firms had recognized the importance of material, and several material activities like purchasing, warehousing, stock control and distribution carried out by the organization. By the 1950 firms have identified the need for effective coordination or integration of such material activities and material organization tools concept, like those of physical distribution movement, logistic movement and material management as a means to check, coordinate and control the firm’s material activities. Globally, there is no clear definitions on the area of material management. According to M.A. Tokunbo (1987) defines it in the context of store and material control as compensation or the effective coordination of the principle element.

1. Identifying, classifying and coordination of stocks
2. Provision, inventory control and stress accounting
3. Store house layout and organization
4. In house storage handling and distribution
5. Presentation of materials in store

To these, material management has the duty to apply the most suitable technique in the most effective way to ensure the minimum total cost consistent with providing the service required. The American production and inventory control society (APICS) defines material management technique and production as the grouping of management function related to the complete cycle of material flow from the purchase and internal control of work in the latter term, traditionally is limited to internal control of production materials. In examining the whole definition, one could easily notice that they are not quite different from one another, only the way of approach and little difference in terminology. In this respect (material and resource) or material management is not only limited to buying and storing as many view it but involves also purchasing, transport and distribution planning and continuous monitoring. The subject matter of this study is the effect of material management technique on production planning process in coca-cola Nigeria Bottling Company, Kaduna. The research is meant to be of great importance to various enterprise and organization wishing to conduct a detailed study into stores and purchasing material. Due to sophistication in technology coupled with socio-economic and political instability, production processes face complex problems that needs to be addressed by the 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.

STATEMENT OF THE PROBLEMS 

Coca-cola Bottling Company Plc as an organization is 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 especially in coca-cola bottling company plc are mainly under-stocking or overstocking of material, stock obsolesce, 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 generated apathy, ignorance and lack of interest by many people and the government.