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 TO 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.
1.2 STATEMENT OF PROBLEM
Today’s dynamic business cannot adult guess work in establishing a procedure for design, specification and quality adherence to private and public companies in Nigeria have failed to recognize the need to maintain an adequate source of supply and acceptable yardstick where material produced can be measured and quality intended. The purchasing department is the main authorized representation of any organization where large or small scale in dealing with the supplier for material and other related services. Therefore, standardization needs an experienced specialist especially a qualified purchasing executives who has vested much effort in procurement of material and a wealthy experienced purchasing executive would be in better position to liaise with the design or quality engineer, to establish a standard for material management used in the organization to achieve mass production in which would invariably lead to construction and increased machine utilization. In view of the above statement the researcher deemed it necessary to conduct an investigation in order to establish the following situations.
i. Investigating the significance of this work with regard to quality, productivity, and cost reduction technique.
ii. The adequacy and inadequacy of this purchasing technique in this manufacturing industry.
iii. Investigating the extent to which material management are standardized in purchasing contract and production operation.
1.3 OBJECTIVE OF STUDY
The researcher’s reason for undertaking the study of the role of standardization in material management in a manufacturing industry taking a case study of Nigerian Bottling Company (NBC) is numerous. The choice is aimed at representing all other manufacturing companies and to attribute the finding to other institutions and organizations. Therefore, the purpose of this study is : -
a. To determine whether manufacturing industry like Nigerian Bottling Company (NBC) use standardization in procurement of their material management.
b. To find out the type of standard in use, it none why it is neglected?
c. To establish the percentage of their annual budget allocated to materials
d. To ascertain whether standardization of materials input is used in their policy formulation with purchasing content.
e. To ascertain whether standardization of material have been undertaken by the organization
f. To find out how productive the system have helped the company to achieve its corporate objective
g. To determine other function of purchasing technique that used in the organization and sources of data.
h. To determine whether this singular activity have achieve cost reduction for this manufacturing company.
1.4 SIGNIFICANT OF THE STUDY
The research will serve as a useful guide to manufacturing organization on the role of standardization which form the life blood of their set up. The research work will also be a reference materials for researchers on how to standardize in an industry or organization. It is however the researcher’s belief that the information gather from this research will help the employers and employees of NBC to know whether their method of standardization are effective or not.
a. It will enlighten the public on the role of standardization in their establishment.
b. It will highlight the weak-point of the procedure in use.
c. It is intended to recommend better ways of standardization procedure.
d. The reader might benefit from it by considering the role of standardization as the perceives it in his own environment.
1.5 RESEARCH QUESTION
This research question is formulated in order to give precise (exact) direction to readers and other researchers and planner who may wish to research more on this topic and to provide a base for the conclusion of this research work.
a. What type of materials management is in use?
b. What is specification?
c. Is the price critical?
d. What is the role of standardization in a manufacturing industry?
e. How can quality be attained in this regard?
1.6 RESEARCH HYPOTHESIS
Ho - Standardization does not play any role in materials management
Hi - Standardization ha a role to play in materials management.
Ho - Standardization is not necessary for material input
Hi - Standardization is necessary for material input
1.7 SCOPE OF STUDY
The scope of this study is designed to give an insight and ways of solving an unsatisfactory standard of material management problem. It also covers the important aspect that have undergo the procurement of materials management.
1.8 LIMITATION OF THE STUDY
Naturally, the metal and physiological aspect of life played a great role in inhibiting some relevant facts. As a matter of fact, it was not possible to meet all officers concerned and some of those approaches with relevant questions complained of lack of time as they would not, like to waste other peoples time, this kind of anti-research attitude which is common with Nigerians is due to some ambiguous company polices and ignorance of the benefit, some staff indicates interest to help but could not because of one reason or the other. Another factor that militated to the limitations of this study are time and distance as the researcher was forced to abandon lectures for many time for the purpose of t his study. Again, because of lack of financial aid coupled with the present state of the economy militated to large extent to the limitation of the project work, because a lot of money is required for project exercise. Scarcity of reference materials really affected the smooth work of the project. Most of the textbooks in the library were outdated, materials required from the library were difficult to get. Unsteady light caused by NEPA interruption frustrated the researcher because she found it more convenient writing the project at night. NEPA at times disappointed thus putting the researcher into confusion.
1.9 DEFINITION OF TERMS
This involve the explanation of some technical term and professional jargon used in the study by the author of this research.
1 STANDARDIZATION: The unification of methods, practices and techniques, involved in the manufacture, construction and use of materials, machine and products for all line of endeavor which present the necessity for performing repetitive work.
2. STANDARDIZATIN PROGRAMME: Involves a careful study of the list of all item stocked so as to determine the intended use or uses of each of the items.
3. COMPONENT:- Items that are indivisible without damage and firms parts of the product.
4. PURCHASING: Is the process of identifying and acquiring or obtaining the right quality of materials, in the right quality which must be procures at the right price from the right source and at the right time.
5. SIMPLIFICATION: The deliberate reduction in the variety of components or end product
6. MATERIAL MANAGEMENT: Is a concept that advocates or tries to bring together the combination of al materials related activities under one concept so that efficiency and effectiveness will be attained.
7. MATERIALS: goods held by organizations that is used for operation activities. These includes scraps, packages, finished goods ready for dispatch etc.
8. SPECIFICIATION: Detailed description of the materials, parts and component used in making a product.
9. PROFESSION: Refers to as an occupation of group at which entrance is only open for those that are qualified though training and development that is to that group.
10 QUALITY: Power to accomplish or the capability of doing a certain thing.
