MATERIAL UTILIZATION SYSTEM IN MANUFACTURING ENTERPRISE. (A CASE STUDY OF ASABA TEXTILE MILL LIMITED ASABA). A RESEARCH PROJECT MATERIAL ON ACCOUNTING
Objective of study: The objective of this study is to access the material utilization system in the manufacturing enterprise. It is also to ensure the users of (both local and foreign) of materials usage in the manufacturing enterprise are use in structurally uniform and meaningful.Significance of study: the study, development of material utilization system in manufacturing enterprise is suited to benefit members of the enterprise, so they will be able to carryout their materials wage work effectively and efficiently.Limitation of the study: The sample size is restricted to Asaba textile mill only, though the study went beyond the natural boarders.Source of data: The information to be sued is the research will be drawn from primary and secondary source. Well prepared questionnaire and organized interview will serve as primary source while textbooks, Journals Newspaper already made research work will serve as secondary source. The researcher also hope to review the records and report of manufacturing enterprise and company in order to gather the necessary information.
1.0 INTRODUCTION: A history of Bendel Textile mill Ltd as it was
called in the then defunct Bendel state but now renamed Asaba Textile mill Ltd immediately after the splitting of the state into Edo and Delta states in 1991, was incorporation in 1965.
It was located on the eastern side of the town, Asaba, the headquarters of Delta state. It is cited close to the Lagos-Onitsha Express way for easy accessibility. The mill was created to assist in the relief of unemployment and to reduce rural migration of people to urban areas.
Amongst other objectives of the firm are the manufacturing of textile fabric (100% cotton), modernization and expansion. However, the product line of the company is Africa print with a planned production capacity of 4000 metres per day. Crey cloth which is 10,560, 000 matres per annum taking twenty –two working days in a month. Both the production capacities so far achieved are 30,000 metres per day Grey baft that is 7920,000-metre p.a. The slack in the full capacity achievement is due to insufficient supply of raw material (R/M), high labour cost, high labour turnover mostly in the spinning and weaving departments at the beginning of every year and also the demechanization of machines. The company has to cannibalize to put some machines into operation and a colossal amount is spent on the importation of German expatriates to carry out the job of machine cannibalism.
Moreso, the mill has staff strength of 840 comprising Administration, factory workers, security unit and labourers. It has a total sale of over eighty million Naira (N80m) p.a.
The raw materials used by the mill are; cotton hint, chemical and dyestuff. Some are sourced locally while some are imported. Indian expatriates own the mill.