THE EFFECT OF MATERIAL MANAGEMENT TECHNIQUES ON PRODUCTION PLANNING PROCESS. A RESEARCH PROJECT MATERIAL ON PRODUCTION AND OPERATIONS MGT.
Material Management is an integrated management approach to the planning, purchasing, warehousing, stock keeping allocation and movement of needed material from point of source to user department. It can also be defined as the process of management of materials which involves purchasing, storage, inspection, control and transportation.
Material management is a relatively new discipline. The 20th centuryâ€™s rapid growth and the significant industrial development has played a major role in the relationship and effective management of the traditional 5Ms which are: Machine, material, men, money and management.
The famous industrial revolution made material(s) the largest elements costs in any organization. At the wake of the 20th century many firms had recognized the importance of material, and several material activities like purchasing, warehousing, stock control and distribution carried out by the organization.
By the 1950 firms have identified the need for effective coordination or integration of such material activities and material organization tools concept, like those of physical distribution movement, logistic movement and material management as a means to check, coordinate and control the firmâ€™s material activities.
Globally, there is no clear definitions on the area of material management. According to M.A. Tokunbo (1987) defines it in the context of store and material control as compensation or the effective coordination of the principle element.
- Identifying, classifying and coordination of stocks
- Provision, inventory control and stress accounting
- Store house layout and organization
- In house storage handling and distribution
- Presentation of materials in store
To these, material management has the duty to apply the most suitable technique in the most effective way to ensure the minimum total cost consistent with providing the service required. The American production and inventory control society (APICS) defines material management technique and production as the grouping of management function related to the complete cycle of material flow from the purchase and internal control of work in the latter term, traditionally is limited to internal control of production materials.
In examining the whole definition, one could easily notice that they are not quite different from one another, only the way of approach and little difference in terminology. In this respect (material and resource) or material management is not only limited to buying and storing as many view it but involves also purchasing, transport and distribution planning and continuous monitoring.
The subject matter of this study is the effect of material management technique on production planning process in coca-cola Nigeria Bottling Company, Kaduna. The research is meant to be of great importance to various enterprise and organization wishing to conduct a detailed study into stores and purchasing material.