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NEED FOR THE APPLICATION OF COMPLETE SYSTEM IN MATERIALS MANAGEMENT

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NEED FOR THE APPLICATION OF COMPLETE SYSTEM IN MATERIALS MANAGEMENT

 

ABSTRACT

This topic the need for the application of computer system in materials mangers has chosen in order to bring into focus the explicit importance of computerization system in many business environment and contribution it makes to organization. Chapter one embraces the introduction background of the study, its statements of problems, objectives scope and limitation of the study. Chapter two deals with the literatures review and the meaning of computer system types, the role computer system, types of computer software, its problems and benefits and computer network. Chapter three emphasize on research methodology, introduction research design questionnaire sample and selection of respondents other methods used its techniques observation, data sources, which include the primary and secondary sources and data analysis method. Chapter four also emphasize on data presentation and analysis testing of hypothesis decision rule and discussion on major findings. Chapter five which is the last chapter of this research work refers to summary, conclusion and recommendation of the project in a simplest form. 

 

CHAPTER ONE

INTRODUCTION

1.1 GENERAL OVERVIEW 

Some years back there has been some controversy about what embarks the need for the application of computer system in materials management. Te world of computer is basically a friendly one and no special credential s needed to become part of it. While its true that modern computer system involves complex technologies and theories their use is becoming easier all the time computer have a general purpose nature which makes them endless executives, top management and list of more people. Those who recognized the computer system have recognized that if has been in existence since the evolution of man and wit needed a remarkable development of data processing equipment of data processing equipment used in ending the recording analysis and reporting of information in the operation of complex business system lenders and fearon (1997: 102).
To start with the following; 

1. Computerization in materials management means converting the manual system into computer system for efficient operations and much procurement organization are now using computer system. Thousand of requisition are received and processed daily, many requests for quotation are sent out to suppliers, may quotation are receive from suppliers and also analyzed and the volume of the involve in materials management in large s and required computer system to mark it fact and easier to manager 

2. The application of computer system in materials right is to ensure the immediate availability of much more complete data for sued in making purchase and related materials decision because of its fantastic speed, the computer can supply management era with virtually instantaneous reports which right otherwise takes an army f clerks weeks or months to prepare and to update. The timeless of such reports enables materials management executive to manage by exception an to do a more effective and economical job of purchasing and managing the flow of materials throughout the operation in Nigeria bottling company.

1.2 STATEMENT OF THE PROBLEMS 

The basic and critical problems of research are selection the problems that appears on the surface in order to find out the nature and gravity of the problems. This is vital and must be done correctly to guide the research work. Meanwhile any mistake at the first step will lead to committing first degree error, that is selecting wrong problems and this will result to subsequent mistakes and errors. Generally, a lot of private and public establishment are yet to recognize the need of the applications of computer systems in the various company Lyons. 

i. There is always high cost in money and effort in installing a computerization system which produce smaller companies from adopting this types of system.

ii. It is always difficult to correct errors when they occur. e.g when the wrong code number is entered on a computer, the computer will reject other correctly completed transaction. 

iii. It is not as flexible as a manual procedure once a computer has been programmed the routine of operation must be followed since deviation will lead to confusion and mistake. 

iv. A major breakdown in the computerize system could cause chosen in the system and in the company’s operational activities. 

v. The application of computer system reduces the number of staff this reduction in number of results to unemployment and is big problem particularly in development countries. 

vi. Computer system is only as good as the staff operating them and the data processed and fed into the computer. Badly trained staff or faulting.

1.3 OBJECTIVES OF THE STUDY

This emphasized on the need for the application of computer system in materials management and it contribution towards the dynamic business environment as regards full application of computer system as playing strategic role in materials management. This take place when all the manual system performing are convert to automatic system and all the records that are maintained in the company is different files that are used by the computers central processing unit (CPU). It is then imperative to determine the following . 

1. To find out whether the view of existing literary work in any depth exposure has been made in this direction. 

2. To conduct an important finding or research into the existing industries and instructions to determine their with a view if bringing this focus vise-visa the computer system in materials management. 

3. To explore areas of computer systems which are akin to materials managements activities. 

4. To improve its application to materials management through the use of real and collected facts.

1.4 SIGNIFICANCE OF THE STUDY

This research intends every organization to gain from it as much that computer system is concerned therefore computer system are encourage to be used in the rightly manner. In order to improve and update the management activities. Te application of computerization system will improved the method of issuing purchase order, purchase requisition and reduce time wastage cost and the volume of work involved, it will also constitute in solving the problem of mismanagement in an organization as it will prove room for efficiency and effectiveness.  Furthermore it is believed that the study will help the company to identify its drawbacks and how to alleviate them which will ultimately contributed to profitability organization there by reducing number of staff cost and obsolescence.

This in a nutshell will help t expose the student who is prepared to enter into the field, the challenges she is contribution, it will equally help our industries or the company. The Nigeria bottling company plc. Owerri and other big companies to utilized the service of computerization system in materials management so as to benefit from their contribution profitability and to correct the abnormalities cause by the use of “uniformed general” in carrying out management duties. The findings of this research work on the need for the application of computer system in materials management is principally structure d to encourage proper distribution of the company’s product . The findings also provide the ways by which problems of distribution encountered in our companies are wisely treated. It is believed that this study will not only be of greater benefit to Nigerian Bottling Company but also other companies’ to aid them to effectively distributing their products. It will also provide other researcher with readymade information for more research.

1.5 THE RESEARCH QUESTION

To test the ascertain requires collecting responses from the group of question included in various parts of the questionnaires with the following questions; 

1. Does the organization achieve maximum advantage with respect to the application of computer system in operation? 

2. Is it true that computerization system reduces cost time wastage and the volume of work involved? 

3. Does the operation of computer system depend on the management policy?

4. What types of sourcing policy does the industry operate?

5. Does the existing organization structure permit computer system?

1.6 HYPOTHESIS

The following research hypothesis will be treated: 

 HO: there is no need for the application of computer system in materiel management

 Hi: there is need for the application of computer system in materials management 

 HO: the cost of computerization of materials management system is not limiting factor to it applications. 

 Hi: the cost of computerization of materials management system is a limiting factor to its application.

1.7   SCOPE OF THE STUDY

The need for the application of computer system in material management is a wide area of study. But this project will focus attentions on computerization system in materials management as related to Nigeria Bottling company Plc owerri. The study embrace all the activities that are involved in the materials management in an industry like stock control design engineering and other activities which involved in materials cost more so the researcher also carried out an indebt investigation on the reason whythe concept is not being adopting to the fullest despites the tremendous benefits derived from materials management that are computerized.

1.8 LIMITATION OF THE STUDY 

While carrying out this research, the researcher was confronted with numerous limitations which include;

i. RESEARCH BIASES: Most respondents although knowing the aim of this research refused to cooperative. The researcher has to waste sometime persuading them to answer one question the other. 

ii. FINANCIAL CONSTRIANTS: due to economic realities enough financial that should have allowed a most diversified research was not available. 

iii. TIME CONSTRAINTS: The researcher combined he class work with the research. This made the researcher to experience a very tight scheduled as she had no transport of her own the problem became even worse. 

iv. TRANSPORTATION: transportation a big trait to the project. The researcher wasted much time due to transportation delays thereby getting t the research place very late. At times interview arrangement will be missed and repeating the journal becomes inevitable.

v. ATTITUDE OF NIGERIAN’S TO RESEARCH: the tendering of respondents m=not regarding questionnaires as important as well as non-challent attitude of people to research in this country led to some questionnaire not been returned some that were returned due to comply to instruction of the research questionnaires. This militated adversely on the progress of the research work. 

vi. Other factors that limited this work project were fact that there is scarcity of materials management textbook by Nigeria authors in this country, ever our lectures. This made references to the work project very cumbersome.

1.9 DEFINITION OF TERMS 

1. COMPUTERS SYSTEM: according to lenders and fearon (1997:102) the analysis of procures used in performing the purchasing and supply function have been based largely in the use of traditional office equipment and clerical (manual) methods. The computers is an electronic mechanical; devise which has the ability of accepting data (input) string the information and retrieving same for further usage under the control of step wise set of instruction called the programmed. 

2. DATA CONTROL: the need for timely and adequate formation system which is a set or organized procedures which when executed provided information for planning decision making a controls in organization.

3. MANAGEMENT CONTROL: Anthony defined management control as ensuring that resources are obtained and used effectively and efficiently in the accomplishment of the organization objectives.

4. ELECTRONICS FUNDS TRANSFERM (EFT) : electronic funds transfer describes system whereby a computer user can use his computer system to transfer fund e.g. make payment to a supplier or pay salaries in employees bank account, Deposit account to current account by sending electronic data to his bank. 

5. SOURCING: sourcing according bally and farmer (1979:113) is said to be the identification of suitable sources of supply.

6. QUALITY: this is seen as the totality of features and characteristics of a product or a service that bears on the ability to satisfy a state on implies needs. 

7. SPECIFICATION: specification according to lee and Doubler (1981:48) are detailed description of the materials parts, and components used n making a product.

8. PROCUREMENT: this is defined as the acquisition of goods and services by firms industries. Government and their subside ring agencies such as parastatals uzor (2004:422)

9. NEGOTIATION: according to UZor 92009:299) defined negotiation as conferring discussing or bargaining to reach agreement in business transaction.

10. LEAD TIME: according to Oyeoku (2001: 48) defined lead-time as the interval between when a need is perceived and the fulfillment of tat need. 

11. ENGINEERING PROCESS: this means a situation whereby there will be a co-operation between supplier engineering and that of the buying company. 

12. RESEARCH : a research is a systematic investigation for the purpose of gaining new knowgement in order words, it is any study that lead to knowledge the person undertaken the research. 

13. DATA: data is defined as the gathering of information either from primary source or secondary sources.

14. FAX MACHINE: this has been the first choice in a large organization that is used to reduced the purchase cycle time and reduce an easy relatively cheap means of survival an growth in the present business environment.

15. ELECTRONIC MAIL: (EMAIL): this is process of the users to transmit massage back and forth within the organization and to external parties. 

16. VOICE MAIL: this voice mail terms both parties into receptionists who spend their turn at “telephone tag”.

17. DECISION RULE: decision rule is a rule that is simplifies the condition under which a null hypothesis may be rejected. 

18. THE OBSERVATION TECHNNIQUES: this is a fact finding activity designed to recognized and note fact as they occur.

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