COST CONTROL AND MATERIAL MANAGEMENT

COST CONTROL AND MATERIAL MANAGEMENT

ABSTRACT

CHAPTER ONE
1.0 INTRODUCTION 
Material management cost control was chosen for this work, due to the prominent role played by the down stream oil industries in Port Harcourt (Nigeria) economic. Materials management is considered in the organization of product in the industries, it helps the organization to cut cost in their materials for effective usage of materials. For effective material management, the fire elements, viz, materials, machines, money man and management all of these are referred to the fire one.
In this case, efficient combination of these elements enable an organization to cut down cost that ultimately benefit their numerous consumers and up lift the organization or form not only financially, but improve its image.
In discussing about materials management we need to be abreast with the term management. Material management can be said to be an organizational concept in which a single manager has an authority and responsibility for all activities, principally concerned with the flow of materials into an organization or firm. Management of material ensures effective cost control in down stream of oil industry can affect petroleum products purchased by the public, it can also have effect on the native economic of the nation.
The study of material management and its effect on cost control in down stream sector of petroleum industry becomes imperative because of its strategic importance to various sectors of the economy.
This study intends to look critically at thereabouts management techniques used in managing petroleum refining and petrochemical companies and their attendance effect on the cost control. It can be eleraly seen that material management calls for careful planning since it is said that failure to plan, means that one had to fail.
In efficient materials management has much effect on production and consequence in the profit margin of an organization, selectional wrong vendors can also contribute to the problems of material management. Further commendation on cost Gairson said that cost control as the use of cost classification by their cost behaviour when business activities change.

1.1 GENERAL OVERVIEW OF THE STUDY
The study cost control and material management was gotten from refinery and petrochemical (NNPC) limited company. Refinery and petrochemical in Rivers state is located along Eleme Akujo Road. The company NNPC (Nigeria National Petroleum Company) and refinery are into production of chemicals and oil, they produce oil like fuel, diesel, kerosene, crude oil, paraffin wax.
These chemicals are some times used for the production of raw materials these crude oil are found in the ground where it is been extracted for the distribution of masses. In most cases pipes are laid and oil are gotten the company refinery distributes fuel, kerosene, diesel to different places in the states because it is their depot.  To show that the company has enough fuel, and the country will not experience fuel scarcity the burning fire will light very well loan extent that somebody standing 200km will see the fire. The Port Harcourt refinery produce these fuel and tankers from different state come to get them and distribute them to the puling station in the states. The refinery is very close to the seaside because right inside the sea, the pipes are laidinside for these reason the study of material management and its effects on the cost control in down stream sectors of petroleum in dustry becomes imperative because of its strategic important to various section of the economy, management of material ensure effective cost control and it effect down stream of oil industry can affect petroleum products purchased by the public. It can also have effect on the entire economy of the nation. Finally, the study intends to look critically at various management techniques used in managing material in the down stream of Nigeria petroleum industry with a particular reference to petroleum refining and petrochemical companies

COST CONTROL AND MATERIAL MANAGEMENT