IMPACT OF STANDARDIZATION IN MATERIAL MANAGEMENT IN A MANUFACTURING INDUSTRY

IMPACT OF STANDARDIZATION IN MATERIAL MANAGEMENT IN A MANUFACTURING INDUSTRY

ABSTRACT

The basic objective of this research project is to explain the impact of standardization in materials management in a manufacturing industry with special reference to Nigerian Bottling Company Plc (NBC) Owerri.
Although, the work is intended to be of academic importance to me, it is hoped that it will equally be of immense value to other forms of organizations, non-profit organization, ministries, parastatals, co-operatives and other corporations etc.
Students in other related course of studies or specific disciplines will also find the project work of great value as it tries to encroach and possibly encompasses the importance of standardization in materials management of any purchasing function.
The research work X-rayed the impact of standardization in materials management and it’s objective. The benefit arise from the subject matter which cannot be over-emphasized which suggest that every organization large, medium or small should be seriously concerned with it’s materials management.

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigerian Bottling Company Plc (NBC) is one of the largest companies in Nigeria today. NBC is the leading producer of coca-cola, fanta, sprite etc with branches all over the states of the federation.
Introducing standardization, is a broader and more inclusive activity than ordinary determination of specification since the task of purchasing includes procurement of materials, inventory control, profit creation.
The purchasing executives must be future conceives that is must anticipate change, forecast the direction and intensify those changes through standardization techniques and adjust their organization purchasing programmes through standardization techniques.
There are various professional in today’s dynamic business environment that makes it mandatory for all the business organizations especially manufacturing ones like Nigerian Bottling Company (NBC) to introduce standardization of materials. For the purpose of obtaining their supplies and design, a basic standard which involves the system of information handling which tends to concentrate on the future to solve and prevent problems.
All the effort are towards objectives attainment which is the watch word of every organization whether profit or non-profit oriented organization. This is the reason why every organization tries to economize resources.
The word “standardization” applies to all concept of the economy especially the manufacturing ones in the process of achieving the laid down goals and objectives. Modern techniques in business demand that planned system and tools should be adopted and formulated to meet the organizational requirement, one of such tool is the standardization of material.
However, standardization can be defined as the identification of methods, practices and techniques, involves in the manufacture, construction and use of materials, machine and products for all line of endeavor which present the necessity for performing repetitive work.
The application of standardization is highly neglected in Nigeria. The urgent need of materials to prevent production have encouraged many organization to set up separate material management department to ensure continuity of supplies. Standardization of materials act as guide to business executive by controlling the scope of procurement to realistic approach on its goal and objectives.
Standardization achieves one of the objectives of purchasing when the right quality and quantity is the operative and objective word in purchasing.
The buyers vest much effort to negotiate price terms, if not time and money would be wasted if what has been brought is unsuitable for the purpose intended. The rigorous specification is useless, if it is wrongly drain in the first place while the first specification most often is a waste of supplies fail to comply with it or quality failure can be very costly and if reflection is not only failure by outside supplier but also failure by the purchasing department.
This paper identifies the problem and prospect of materials management standardization in a manufacturing organization in a manufacturing organization like Nigeria Bottling Company (NBC) which lay emphasis in the managerial and technical application of the tool in order to achieve the organizational goals.

IMPACT OF STANDARDIZATION IN MATERIAL MANAGEMENT IN A MANUFACTURING INDUSTRY