1.0 Introduction
1.1 Background of Study
In the past, many organizations relied on manual methods for managing materials, which were often prone to errors, inefficiencies, and high operational costs. These traditional approaches created challenges such as overstocking, stockouts, and wastage of resources, which hindered production planning and led to customer dissatisfaction (Kumar & Suresh, 2018). Material management is a cornerstone of operational success in production environments. It encompasses the planning, procurement, storage, and utilization of materials required to produce goods or services (Arnold, Chapman, & Clive, 2018). Its importance lies in its direct impact on the efficiency, cost-effectiveness, and quality of production planning processes. The evolution of material management techniques, from traditional inventory control to modern lean manufacturing practices, reflects the increasing complexity of supply chains and the need for more sophisticated approaches to ensure seamless production.
Chopra & Meindl (2019) defined material management as the process of planning, organizing, and controlling the flow of materials and inventory throughout the production process to ensure that the right materials are available at the right time in the right quantity (Chopra & Meindl, 2019). Efficient production planning is at the heart of successful manufacturing and service delivery processes. It ensures that resources are utilized effectively, timelines are met, and customer expectations are satisfied. Material management, as a crucial component of production planning, plays a pivotal role in achieving these objectives by overseeing the procurement, storage, and flow of materials needed for production (Kumar & Suresh, 2018).
The production planning process involves a series of interconnected activities that require the timely availability of raw materials and other resources. Ineffective material management can disrupt these activities, leading to delays, increased costs, and a decline in product quality (Chopra & Meindl, 2019). Today, material management is not merely about maintaining adequate stock levels but also about aligning material flow with production schedules to enhance productivity. Techniques like JIT aim to minimize inventory levels by ensuring that materials are delivered precisely when needed, reducing storage costs and waste. Similarly, lean manufacturing principles focus on eliminating inefficiencies across the supply chain, promoting value-added processes (Womack & Jones, 2003).
The increasing integration of technology has also transformed material management practices. Tools such as automated inventory tracking systems, real-time data analytics, and supply chain management software provide organizations with better visibility and control over their material resources. These advancements have not only streamlined production planning but have also enabled firms to adapt to dynamic market demands more effectively. Despite these advancements, challenges persist. Many organizations face difficulties in implementing advanced material management techniques due to financial constraints, lack of technical expertise, or resistance to change. Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the effect of material management techniques on production planning process.
1.2 Statement of Problems
Investigation revealed that outdated inventory management systems and inadequate use of data analytics create inefficiencies, as critical information regarding material usage and availability is often inaccurate or inaccessible. The issue of ineffective material management techniques in production planning is a significant challenge faced by organizations across industries. Poor material management practices lead to frequent delays in production schedules, resulting in unmet customer demands and reduced operational efficiency (Monczka et al., 2016). When materials are not properly tracked or ordered in alignment with production needs, overstocking or understocking becomes a recurring issue, increasing costs and causing production interruptions.
Additionally, the lack of trained personnel and standardized practices in material management affects the overall effectiveness of production planning processes. In many organizations, there is a limited understanding of advanced material management techniques, such as Just-in-Time (JIT) or Material Requirements Planning (MRP), which hinders the adoption of efficient strategies (Krajewski et al., 2019).
Furthermore, there is problem of wastage and inefficiency in material handling is a major concern, especially for organizations striving to reduce costs and improve sustainability. Poor material management techniques lead to unnecessary storage costs, excessive waste, and environmental harm, which contradict the growing emphasis on sustainable production practices (Hopp & Spearman, 2008). It is against the backdrop that this study seeks to address these problems by investigating the effect of material management techniques on production planning process.
1.3 Aim and Objectives of Study
The aim of the study is to investigate the effect of material management techniques on production planning process. In achieving this aim, the following specific objectives were laid out as follows:
- To explore the relationship between material management practices and resource utilization in the production process.
- To assess the impact of material management on minimizing production delays and reducing operational costs.
- To identify the challenges associated with implementing effective material management techniques.
- To evaluate the role of material management in optimizing production schedules.
- To provide recommendations for improving material management techniques to enhance production efficiency and sustainability.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- How do material management techniques influence the efficiency of the production planning process?
- What challenges are encountered in the implementation of effective material management techniques?
- In what ways does material management affect production delays and operational costs?
- What is the relationship between material management practices and optimal resource utilization in production?
- How can material management techniques be improved to enhance the overall effectiveness of the production planning process?
1.5 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: Material management techniques have no significant effect on the production planning process.
- H1: Material management techniques significantly impact the production planning process.
Hypothesis Two
- H0: Effective material management techniques do not enhance the efficiency of resource utilization in production planning.
- H1: Effective material management techniques enhance the efficiency of resource utilization in production planning.
1.6 Significance of Study
The findings of this research will benefit policymakers and industry regulators as the findings will guide the formulation of policies that will encourage the adoption of best practices in material management. Also, manufacturing organizations will gain actionable knowledge on how material management techniques will streamline inventory control, reduce costs, and ensure timely delivery of products. This will support businesses in achieving better profitability and customer satisfaction.
Furthermore, academics and researchers will find the study useful as it will enrich existing literature on material management and production planning, providing a foundation for further studies in this field.
Lastly, students in business, management, and production-related disciplines will have access to practical examples of the application of material management techniques, which will serve as a learning resource and inspire future innovations.
1.7 Scope of Study
The scope of the research is focused on the effect of material management techniques on production planning process.
1.8 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition of Terms
Material Management: It refers to the process of planning, organizing, and controlling the flow of materials and inventory throughout the production process to ensure that the right materials are available at the right time in the right quantity (Chopra & Meindl, 2019).
Production Planning: It is the process of developing strategies to efficiently organize and allocate resources, including materials, machinery, and labor, to meet production goals. It involves forecasting demand, scheduling production activities, and ensuring that resources are available to meet these demands (Heizer & Render, 2017).
Material Management Techniques: It refers to the methods and systems used to manage the procurement, storage, distribution, and usage of materials in the production process. These techniques can include Just-In-Time (JIT) inventory systems, Economic Order Quantity (EOQ), Vendor Managed Inventory (VMI), and Material Requirements Planning (MRP) systems, which help streamline material flow and reduce waste (Stevenson, 2020).
…
