The effect of material management technique on production planning processes in small and medium scale enterprises

Project Abstract

Material management techniques play a crucial role in the production planning processes of small and medium scale enterprises (SMEs). This research project aims to investigate the effect of material management techniques on production planning processes in SMEs. The study will focus on how proper material management can enhance production efficiency, reduce costs, and improve overall operational performance in SMEs. The research will employ a mixed-methods approach, combining quantitative data analysis with qualitative interviews to provide a comprehensive understanding of the relationship between material management techniques and production planning processes in SMEs. The quantitative analysis will involve collecting and analyzing data on inventory turnover rates, stockout incidents, production lead times, and other key performance indicators to assess the impact of different material management techniques on production planning outcomes. In addition, qualitative interviews will be conducted with managers and employees of selected SMEs to gather insights on the challenges faced in material management and production planning, as well as the strategies employed to address these challenges. The qualitative data will help to identify best practices and lessons learned that can be shared with other SMEs looking to improve their material management and production planning processes. The findings of this research project are expected to contribute to the existing body of knowledge on the importance of material management techniques in the context of SMEs. By highlighting the impact of effective material management on production planning processes, this study aims to provide valuable insights and practical recommendations for SMEs seeking to optimize their operations and achieve sustainable growth. Overall, this research project seeks to shed light on the relationship between material management techniques and production planning processes in SMEs, with the ultimate goal of helping these businesses improve their operational efficiency and competitiveness in the market. The outcomes of this study are expected to be beneficial not only to SMEs but also to researchers, policymakers, and other stakeholders interested in enhancing the performance of small and medium scale enterprises through effective material management practices.

Project Overview

<p> <b></b></p><p><b><b>INTRODUCTION </b></b></p><p><b><b></b></b></p><b><b><p>Material<br>management is an integrated management approach to the planning, purchasing,<br>ware housing, stock keeping allocation and movement of needed material from<br>point of source to user department. It can also be defined as the process of<br>management of material which involves purchasing, storage control and<br>transportation.</p><p>Material<br>management is a relatively new discipline. The 20th century’s rapid<br>growth and the significant industrial development has played a major role in<br>the relationship and effective management of the traditional 5Ms which are:<br>Machine, material, men, money and management.</p><p>The<br>famous industrial revolution made material(s) the largest elements cost in any<br>organization.</p><p>At<br>the wake of the 20th century many firms had recognized the importance of<br>material, and several material activities like purchasing, ware housing, stock<br>control and distribution carried out by the organization.</p><p>By<br>the 1950 firms have identified the need for effective coordination or<br>integration of such material activities and material organization tools concept<br>like those of physical distribution movement, logistic movement and material<br>management as a means to check, co-ordinate and control the firm’s material<br>activities.</p><p>Globally,<br>there is no clear definition on the area of material management. According to<br>M.A. Tokunbo (1987) defines it in the context of store and material control as<br>compensation for the effective co-ordination of the principle element.</p><p>ü &nbsp; Identifying,<br>classifying and coordination of stocks</p><p>ü &nbsp; Provision,<br>inventory control and stress accounting</p><p>ü &nbsp; Store<br>house layout and organization</p><p>ü &nbsp; In<br>house storage handling and distribution</p><p>ü &nbsp; Presentation<br>of materials in store.</p><p>To<br>these, material management has the duty to apply the most suitable technique in<br>the most effective way to ensure the minimum total cost consistent with providing<br>the service required.</p><p>The<br>American production and inventory control; society (APICS) defines material<br>management technique and production as the grouping of management function<br>related to the complete cycle of material flow from the purchase and internal<br>control of work in the latter term, traditionally is limited to internal<br>control of production materials.</p><p>In<br>examining the whole definition one could easily notice that they are not quite<br>different from one another only the way of approach and little difference in<br>terminology. In this respect (material and resource) or material management is<br>not only limited to buying and storing as many view it but involves also<br>purchasing, transport and distribution planning and continuous monitoring.</p><p>1.1 &nbsp; &nbsp; <b>BACKGROUND<br>OF THE STUDY</b></p><p><b></b></p><b><p>The<br>subject matter of this study is the effect of material management technique on<br>production planning process in United Nigeria Textile Plc (UNT Plc), Kaduna. The<br>research is meant to be of great importance to various enterprise and organization<br>wishing to conduct a detailed study into stores and purchasing material hence,<br>the research aims at identifying the problems associated with efficient<br>operation in an organization, the research is interested in knowing the effect<br>of material management technique on production planning process as practicable<br>in an organization. Due to sophistication in technology coupled with<br>socio-economic and political instability, production processes face complex<br>problems that needs to be addressed by management &nbsp;ensuring that materials are allocated and used<br>in the most efficient and effective manner.</p><p>&nbsp;The material management technique on<br>production is also to identify problems by guiding against supb-optimization of<br>the material management techniques in production planning processes, for this<br>the researcher suggests that which will achieve optimal result quickly, cheaper<br>and acceptable.</p><p>Today<br>materials are the live-wire of every organization be it public or private hence<br>no organization can survive without material, its availability, distribution<br>and transportation and delivery at the right amount and quality is paramount.</p><p>1.2 &nbsp; &nbsp; <b>STATEMENT</b><br><b>OF</b>&nbsp;<b>THE</b>&nbsp;<b>PROBLEMS</b></p><p>United Nigeria Textile<br>Plc (UNT Plc), Kaduna. is faced with problems in relation to<br>utilization of the effect of material management being the utmost thing that<br>are needed to be utilized effectively. The problem facing material management<br>especially United<br>Nigeria Textile Plc (UNT Plc), Kaduna. are mainly under stocking or<br>over stoking of material, stock obsolescence breakage and the economic order<br>quantity.`</p><p>Due<br>to the fact that the impact is to be felt positively in the society by making<br>themselves’ productive in every area of inputs.</p><p>But<br>despite the effect observed there have been general apathy, ignorance and lack<br>of interest by many people and the government.</p><p>1.3 &nbsp; &nbsp; <b>OBJECTIVES<br>OF THE STUDY</b></p><p><b></b></p><b><p>Specifically,<br>the aims and objectives of this study are:</p><p>i. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>To assess the impact of material management on<br>organizational performance.</p><p>ii. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To appraise and further appreciate the significance<br>of material management in a manufacturing industry.</p><p>iii. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To identify and ascertain some of the problems<br>poised by materials management in Nigerian United Nigeria Textile Plc (UNT Plc), Kaduna.</p><p>iv. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>It is also the researcher’s desire that this<br>compilation will be of great help and interest to whosoever uses it to gain<br>knowledge on issues discussed.</p><p>1.4 &nbsp; &nbsp; <b>STATEMENT<br>OF HYPOTHESIS</b></p><p><b></b></p><b><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The following hypothesis was<br>formulated for this study:</p><p>H0: &nbsp; &nbsp; Material<br>management does not have any significant impact on organizational performance<br>of SMEs.</p><p>H1: &nbsp; Material<br>Management does have significant impact on organizational performance of SMEs.</p><p>1.5 &nbsp; &nbsp; <b>SIGNIFICANCE<br>OF THE STUDY</b></p><p><b></b></p><b><p>&nbsp; A research of this nature will be incomplete<br>without highlighting the importance of this study.</p><p>Firstly,<br>the researcher as a student aspiring to be a material executive in the future<br>sees this study as an opportunity to fully investigate into the field of<br>materials management to see the challenges therein.</p><p>Secondly,<br>the study is needed as a pre-requisite for the award of the Higher National<br>Diploma in Production and Operation Management (POM).</p><p>Furthermore,<br>the researcher has also undertaken the study in order to gather necessary<br>information and suggest solution to the problem facing materials management in United Nigeria Textile Plc (UNT Plc),<br>Kaduna.</p><p>1.6 &nbsp; &nbsp; <b>SCOPE<br>OF THE STUDY</b></p><p><b></b></p><b><p>The<br>subject matter “Materials Management” has an area of coverage within its<br>concept, i.e. theory and practice in the private sector. This would also<br>include purchasing, stocktaking and stock checking of materials. </p><p>1.7 &nbsp; &nbsp; <b>LIMITATION<br>OF THE STUDY</b></p><p><b></b></p><b><p>In<br>carrying out this research, certain problems were encountered which in fact<br>hindered the area of coverage.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>The researcher faced the problem of sourcing<br>for materials for the project. </p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Time constraint was a factor the researcher<br>encountered. This resulted in the backlog of the researcher’s class work.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>&nbsp;Lack of<br>textbooks related to the subject matter also contributed to backlog in writing<br>the project.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Unco-operative and bureaucratic attitude of United Nigeria Textile Plc (UNT Plc), officials<br>who were reluctant in providing necessary information in writing.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Despite all these constraints, the researcher<br>was lucky to gather vital information that made the investigation a success.</p></b></b></b></b></b></b></b></b> <br><p></p>