Project Abstract

This research study is based on variety reduction as a tool for effective material control, a case study of Nigeria Bottling Company Plc. To understand the research work better, efforts was made at the introductory stage to explain the general importance of variety reduction with special consideration being placed on company especially Nigeria Bottling Company Plc, Kaduna. Also the general problem was also emphasized on such non recognition of the role of variety reduction on storage of different articles that can serve the same purpose. Effort was also made to identify the purpose of the study such as the degree of importance attached to variety reduction, areas covered by variety reduction and its operational activities. It also focused on its significance to the organization, the academics, the populace and the researcher. Research question were also generated to determine the importance the organization placed on variety reduction and how variety reduction facilitate the organization operational efficiency. The survey research design is employed; also simple random sampling procedure was employed. The researcher used questionnaire and documentary sources. The likert four rating scale technique is used to analyze the data, findings made among which are, that the organization considered variety reduction to facilitate the organizational efficiency and that the variety reduction minimizes cost and avoid storing the same item that can serve the same purpose in making material available in the store. However, the researcher summarized and concluded the research study and made recommendations to the company, amongst which are formulation of variety reduction policy to align with the vision and mission of the organization, always employed a competent hand to handle variety reduction activities, to strive as much as possible to create a variety reduction unit to be controlled by a qualified store manager, purchasing and supply officer and engineer.

Project Overview

 Introduction

1. Background of the Study

Variety reduction can be applied to any production process. The technique certainly has more effect if applied in the right place and at the right time.

Apparently in many organization, it is clearly to see organization be it manufacturing holding different number of types, size or grade of a product that can perform the same function, this means duplication of items, the cost of materials is the last remaining cost that is truly variable, a reduction in the cost of material clearly offers on usual opportunity for profit improvement, therefore the need for purchasing to minimize waste and enhance maximum services within the organization has resulted in the use of variety reduction. Variety reduction can make a substantial savings in inventory by standardizing and rationalizing the range of materials, parts and component kept in store. Variety reduction can be achieved by using, so far as possible, standardized components and subassemblies to make end products that are dissimilar in appearance and performance so that variety of final products uses only a few basic components, variety reduction can also be applied when considering capital purchases, by ensuring compatibility with existing machinery, the range of spares carried to ensure against breakdowns can be substantially reduced also variety reduction can be undertaken periodically to examine arrange of stock items to determine

the intended use for each item of stock, how many stock item serve the same purpose, the extent to which items having the same purpose can be gives a standard description, what range of sizes is essential and lastly what items can be eliminated all these are done to ensure effective material control. Therefore, variety reduction can be defined as “the process of reducing the number of types, size or grades of a product that are purchase made or stocked (Hassan 2008 p. 445).