Thesis Abstract

<p>&nbsp;      <b>ABSTRACT&nbsp;</b></p><p>Materials Management in the Construction Industry in Imo State have been investigated. In order to reduce wastage of construction materials, the study focused on Success Level in Achieving Effective Materials Management as the Dependent Variable (Y) by introducing five Independent Variables (X1 to X5) thus (X1) Management of Materials; (X2) Skilled Professionals; (X3) Control of Materials; (X4) Inventory Build-up and (X5) Motivation of workers. Three indigenous construction companies were used for the study; Alems Engineering Construction Company, Esie Engineering Construction Company and Hardel and Enic Construction Company. Three different sets of questionnaire were developed, after interview with executives and workers in the three construction companies mentioned above. The questionnaires were distributed, and responses collected were then subjected to Multiple Regression analysis to generate – R, R2 , F-ration, Student’s t-test and Standard error test. The findings revealed that “Y” variable is significantly related to all the Xs variables (x1 to X5). The study also established a multiple regression model for the construction industry, which can be used to predict/forecast the values of “Y” when the values of Xs are known or given. It was finally revealed that these findings had great impact on the construction industry; the contractors; the client/owners; the Nigerian economy and the common /average man on the street. We therefore conclude that the five independent variable of the study (X1 to X5) contribute and have significant effect on (Y) – success level in Achieving Effective Materials Management in the construction industry. <br></p>

Thesis Overview

<p> <b>1.0 INTRODUCTION&nbsp;</b></p><p>1.1&nbsp;<b>BACKGROUND STUDY</b></p><p>Materials management is a total concept involving organizational structure unifying into single responsibility the systematic flow and control of material from identification of need, through customer delivery. Included within this concept are the materials functions of planning, scheduling, buying, storing, moving and distributing. (Oyeoku, 2001). These are logically represented by the disciplines of production and inventory control, purchasing and physical distribution (I FPM M-1984). The function “Materials management” represents an organizational concept that provides for more efficient planning, coordination, and control of all material activities occurring prior to the actual use of materials. For this reason, the scope of materials management is broad. It involves the activities of planning, and anticipating materials requirements, introducing materials into the organization and monitoring their status as current assets, and providing materials at the right time and place so as to meet operational requirements of the organization or company (Oyeoku, 2001).</p><p>Materials management/control in the Nigerian construction industry is of universal importance. According to Koontz and others (1992), the surest way of achieving a construction company’s objectives "profit maximization" is through effective materials management.&nbsp;</p><p>Effective materials management can make a construction company to grow or prosper while ineffective materials management can lead to demise. (Monks 1987) in his own contribution looked at materials management in the construction industry as the planning, organization and controlling of the flow of materials, from the initial purchase "input" to the distribution/consumption, to produce a complete project "output". His contribution therefore embraces planning, purchasing, production and inventory control, storage, material handling and physical distribution. The objective of materials management is to optimize performance in meeting customer service requirements at the same time adding to profitability by minimizing cost and making the best use of available resources.&nbsp;&nbsp;</p><p><b>1.2 STATEMENT OF THE PROBLEM</b></p><p>In Nigeria today, both the construction industry and public organizations are plagued with the problem of low productivity among the workers due to:&nbsp;</p><p>i. poor management of materials.&nbsp;</p><p>ii Lack of adequate and qualified staff.&nbsp;</p><p>iii poor motivation of workers&nbsp;</p><p>iv misappropriation of funds&nbsp;</p><p>There is therefore dire need to improve productivity in our construction industry and at the same time to conserve our foreign exchange now more than ever before. Kontangora 1991, in one of his seminar lectures Daily Times 23/8/91, stated that unless the managers in our construction industry improve on their capabilities in terms of the management of materials, labour and equipment, we will always have low productivity in the Nigerian construction industry. Therefore, this study is focused on: Success Level in Achieving Effective Materials Management in the Nigerian construction industry.&nbsp;</p><p><b>1.3 NEED FOR THE STUDY</b></p><p>In the past years, materials management in Nigerian construction industry was neglected, due to ignorance of its effect in construction projects and our national economy. This study became necessary, since it will help to correct this false impression and at the same time help in the growth of our national economy. Materials management in the Nigerian construction industry therefore is of universal importance. According to Koontze and others "1992", the surest way of achieving The construction company’s objective "profit maximization" is through effective materials management.&nbsp;</p><p>Effective materials management can make a construction company to grow or prosper, while ineffective materials management can lead to demise. According to the National Construction Policy (1991), construction projects are the ultimate in the realization of many stages of physical development in our country’s economy. Thus in all of the sectors of the national economy, be it agriculture, mining, manufacturing, petroleum or commerce, there are construction projects that will enhance physical development of materials that&nbsp; will increase productivity and growth.&nbsp;</p><p>Therefore the effective management of materials that will increase productivity and growth in the country’s economy is not only desirable but also indispensable.&nbsp;</p><p><b>1.4 OBJECTIVE OF THE STUDY</b>&nbsp;</p><p>The objectives of this study include:&nbsp;</p><p>1. To determine the success level in achieving effective materials management in the Nigerian construction industry.&nbsp;</p><p>2. To make recommendations that will help improve materials management and control in most construction companies in Owerri, such as ALEMS Engineering Contractors, ESIA Engineering Contractors, and Hardel and Enic Construction Company, Owerri, Imo State.&nbsp;</p><p><b>1.5 RESEARCH QUESTION</b>&nbsp;</p><p>The research questions to which answers are attempted in this study are:&nbsp;</p><p>i Are materials managed very well in the Nigerian construction industry?&nbsp;</p><p>ii Are the right/skilled professionals heading and controlling the materials departments in the Nigerian construction industry?&nbsp;&nbsp;</p><p>iii Is lack of proper equipment for work affecting the efficiency/output in the Nigerian construction industry?&nbsp;</p><p>iv Is the poor performance in the Nigerian construction industry due to poor management and control of materials?&nbsp;</p><p>v Are there inventory built-up in the Nigerian construction industry?&nbsp;</p><p>vi Is poor motivation of workers in the Nigerian construction industry responsible for poor management of materials?&nbsp;</p><p><b>1.6 HYPOTHESES OF THE STUDY</b></p><p>A preliminary survey involving research of relevant literature, discussion with Chief executives/Directors, site agents, site engineers, site supervisors, and site foremen, builders and quantity surveys, purchasing, and stores managers, in the construction industry, helped to identify the key construction variables CV that influence the Success level in Achieving Effective Materials Management in the Nigerian construction industry in the study organizations:&nbsp; Hardel and Enic Construction Company, Alems Engineering Constructors and Esie Engineering Contractors, Owerri in Imo State (1995-2000). On the basis of the information generated six hypotheses were developed to establish the relationships that exist between the dependent and independent variables of the study. Such relationships are than tested for there validity. For this study, the dependent variable (Y) developed from the preliminary research is: “Success Level In Achieving Effective Materials Management” in the Nigerian construction industry. The six independent variables (X1-X6) developed are:&nbsp;</p><p>1 Management of materials in the Nigerian construction industry.&nbsp;</p><p>2 Skilled Professionals in materials department.&nbsp;</p><p>3 Equipment for work.&nbsp;</p><p>4 Control of materials.&nbsp;</p><p>5 Inventory build-up.&nbsp;</p><p>6 Motivation of workers.</p><p>The variables were transformed into the following six Null&nbsp;</p><p>H0 hypotheses for testing:&nbsp;</p><p>H01: Management of materials has no significant effect on the success level in the Nigerian construction industry.&nbsp;</p><p>H02: Skilled professionals, heading materials departments, have no significant effect on the success level in the Nigerian construction industry.&nbsp;</p><p>H03: Lack of Equipment for work has no significant effect on the output/efficiency in the Nigerian construction industry.&nbsp;</p><p>H04: Control of materials has no significant effect on the performance of the Nigerian construction industry. .</p><p>H05: Inventory build-up has no significant effect on the success level in the Nigerian construction industry.&nbsp;</p><p>H06: Motivation of workers has no significant influence on success level of materials management in the Nigerian construction industry.&nbsp;</p><p><b>1.7 SIGNIFANCE OF STUDY</b></p><p>The National construction policy put in place by the Federal Government of Nigeria with effect from 18th June 1991. One of the goals of the National Construction Policy established by the Federal Government of Nigeria in June 18, 1991, is that Nigeria must achieve a state of total participation of her indigenous professionals in the construction industry in order to monitor and control how materials are used. Toward this goal, some lofty objectives have been set thus:&nbsp;</p><p>1. The development of political will to ensure increased participation of indigenous professionals in the construction industry.&nbsp;</p><p>2. Reduction of construction cost.&nbsp;</p><p>3. Development of construction materials, equipment and spare parts from local sources and&nbsp;</p><p>4. The adoption of appropriate construction technology that will be responsive to the technology conditions of the country.&nbsp;</p><p>Another policy that places a high responsibility on the effectiveness and control of materials in the Nigerian construction industry is the National Housing Policy, launching on February 20, 1991. According to this policy, about eight million 10 housing units including infrastructures were expected to be constructed in Nigeria by the Year 2005. For the two policies named above to be successfully implemented, there must be effective monitoring and control of materials. This research is carried out to identify how effective management and control of materials could go a long way in increasing productivity, performance and managerial skills in our modern construction industry,&nbsp;</p><p>The study is anticipated to achieving the following necessities:&nbsp;</p><p>a To help contractors (like Hardel and Enic Construction Company, Owerri) and others to determine the optimal quantity and quality of materials, equipment and labour to employ or use for a particular project.&nbsp;</p><p>b To help project managers to plan, organize and programme any project.&nbsp;</p><p>c To help local contractors to estimate the total fund, and number of workers required for a particular project at any time.&nbsp;</p><p><b>1.8 SCOPE AN LIMTATION OF STUDY</b>&nbsp;</p><p>Due to time and financial constraints the study is limited to the study of appraising the effectiveness of materials management functions in these indigenous construction companies based in Owerri, Imo State: Hardel and Enic Construction Company, Alems Engineering Contractors, and Esie Engineering Contractors. The study determined the Success level in Achieving Effective Materials Management in the Nigerian construction industry and made recommendations that should help improve materials management and control in the construction industry in Nigeria. In view of the broad nature of the construction industry, and because of time and financial constraints, especially during this time of acute fuel scarcity in country, the research concentrated on the building and civil engineering subsectors of the construction industry in Imo State.&nbsp;</p>