WOLKITE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSMENT OF MATERIAL MANAGEMENT PRACTICE IN CASE OF

ZEBIDER BEER FACTORY

PREPARED BY, NETSANET ABEBE

ID;-SSR/0739/13

ADVISOR: KASAYENESH

APRIL 2024

ETHIOPIA
Approval sheet

Advisor Signature Date

__________________________ __________________ _____________

Examiner Signature Date

_________________________ ____ _ ________ _ _______________

Department head Signature Date

_____________________ _______________ _______________

 ACKNOWLEDGEMENT

First words are not enough to express the favor of the almighty GOD. I would like express my
heart gratitude and appreciation to my advisor instructor Ms. KASANESH for her sincerity and
faithfulness in all the processing of this research project and her continued provisions of helpful
valuable idea and suggestions. Finally I would like to extend my appreciation to all of my friends
those who help me to achieve this objective.

Catalogue
Approval sheet...................................................................................................................................................................................... I

ACKNOWLEDGEMENT...................................................................................................................................................................II

Abbreviations and Acronyms.............................................................................................................................................................VI

Abstract.............................................................................................................................................................................................. VI

CHAPTER ONE............................................................................................................................................................................1

Introduction.......................................................................................................................................................................................... 1

1.1 Background of the Study...........................................................................................................................................................1

1.2 Background of the Company....................................................................................................................................................2

1.2 Statement of the problem........................................................................................................................................................3

1.2.1 Research Questions.............................................................................................................................4

1.3 Objective of the Study...............................................................................................................................................................4

1.3.1 General objectives of the Study..........................................................................................................4

1.3.2 Specific Objectives of the Study.........................................................................................................4

1.4 Significance of the Study..........................................................................................................................................................5

1.5 Scope (delimitation) of the Study.............................................................................................................................................5

1.7 Organizational Study.................................................................................................................................................................6

CHAPTER TWO................................................................................................................................................................................. 7

2. LITERATURE REVIEW................................................................................................................................................................7

2.1.Theoretical Review....................................................................................................................................................................7

2.1.2 Historical Growth of Materials Management....................................................................................7

2.1.3 Definition of Material Management....................................................................................................7

2.1.4 Objectives of Materials Management.................................................................................................8

2.1.5 Material Schedule...............................................................................................................................9

2.1.5 Type of materials into five categories...............................................................................................17

 2.1.6 Elements of a Waste Management Plan............................................................................................21

2.1.7 Reason for Holding Stock.................................................................................................................24

2.2 Empirical Review...................................................................................................................................................................26

2.4 The Abstract or summary........................................................................................................................................................27

2.4 Conceptual frame work...........................................................................................................................................................28

CHAPTER THREE........................................................................................................................................................................... 29

3.Methodology of the Study...............................................................................................................................................................29

3.1 Introduction............................................................................................................................................................................. 29

3.2 Research Design.....................................................................................................................................................................29

3.3 Data Type ,Source and Method of Collection........................................................................................................................29

3.4 Method Data Collection.........................................................................................................................................................29

3.5 population and Sample Design................................................................................................................................................30

3.6 Data collecting......................................................................................................................................................................... 30

3.6 Method of Data analysis.........................................................................................................................................................30

CHAPTER FOUR............................................................................................................................................................................. 31

DATA PRESENTATION, ANALYSIS AND INTERPRETATION................................................................................................31

4.1 Introduction............................................................................................................................................................................. 31

4.2 Personal profile of respondent.................................................................................................................................................31

4.3 Analysis of the Major Findings...............................................................................................................................................33

CHAPTER FIVE................................................................................................................................................................................43

SUMMARY, CONCLUSIONS AND RECOMMANDATIONS.....................................................................................................43

5.1 Summary................................................................................................................................................................................. 43

5.2 Conclusions............................................................................................................................................................................. 44

5.3 RECOMMANDATIONS........................................................................................................................................................45
REFERENCES................................................................................................................................................................................... 47

Appendix............................................................................................................................................................................................ 49

Part II: Detailed information.....................................................................................................................................................50

Abbreviations and Acronyms

MM…………………………….…Material Management

ICM ………………….……………Inventory Control Measures

MPS……………….………………Material Procurement Strategies,

SCMP………………………………Supply Chain Management Practices,

RAD…………….…………………..Resource Allocation Decisions

TIMM………………………………Technological Integration in Material Management

 Abstract

This paper to assess material management practices at Zebidar Beer Factory, focusing on the
adequacy and efficacy of current strategies. The study aims to identify key factors influencing
material management and to propose measures to enhance effectiveness.The data would be
collected through primary and secondary source and the researcher would be used census
methods The data analysis would be conducted by using descriptive method of analysis.

The research questions explore the prevailing practices, challenges faced, and potential
improvements. By assessing Zebidar Beer Factory's material management practice, the study
highlights the significance of optimal resource allocation in reducing costs and improving
profitability. Despite encountering challenges like limited finances and logistical issues, the
investigation is pivotal in providing actionable insights for better distribution systems in the
manufacturing sector. Findings serve not only as a basis for improving Zebidar Beer Factory's
operations but also as a reference point for further academic pursuit in the domain of material
management practice. Finally the study should be recommended the factory should make
provisions for training and retraining of management and site personnel.

Key term: Material Management, Inventory Control, Procurement, Supply Chain

Management, Resource Allocation, Logistics, Material Waste, Production
Planning, Quality Control, Financial Loss.
LIST OF TABLE

Table 1 About gender of respondent.....................................................................................40

Table 2 about age of respondent...........................................................................................41

Table 3 About respondent level of education.....................................................................41

Table 4 about respondent’s response ....................................................................................43

Table 5 company sources for materials ................................................................................45

Table 6 the overall material activity of the factories............................................................47

Table 7 About respond of purchasing management ............................................................49

Table 8 About experience shortage of materials .................................................................50

Table 9 About purchasing responsible for all acquisitions of material.................................51

 CHAPTER ONE

Introduction

1.1 Background of the Study

Materials management is defined as the process to provide right material at the right place at
the right time in the right quantity to minimize the cost of the project. Material management is
the procedure for planning,executing and controlling the field and office events in
Manufacturing. The main objective of material management isto make sure that manufacturing
materials are always available at their point of use when required. Material management is the
system for planning and overseeing all of the efforts that are mandatory to ensure that the precise
quality and quantity of materials are correctly specified in a timely order, gotten at a reasonable
price and most importantly, always available at the point of use when needed. A poor materials
management can bring about increase in costs during manufacturing [Wanjogu, H., Iravo, M.
&Arani, w.(2015)].Materials management is concerned with the planning, identification,
procuring, storage, receiving and distribution of material (Pataskar,2013). While Eduardo
(2002) viewed materials management as the system for planning and controlling all of the efforts
necessary to ensure that the correct quality and quantity of materials are properly specified in a
timely manner, are obtained at a reasonable cost and most importantly are available at the point
of use when required. Petra (2013) observed that successful materials management requires the
participation of all persons involved in a manufacturing process.

Materials may deteriorate during storage or get stolen unless special care is taken. Delays and
extra expenses may be incurred if materials required for particular activities are unavailable.
Ensuring a timely flow of materials is an important concern of materials management. Lan
(2008), opined that the rate at which materials have been squandered due to poor management is
getting too rampant in our society and if not curbed, it can jeopardize the future of our
manufacturing industry. This is particularly true in view of the fact that mismanagement of
production resources (i.e. materials, plants and labor) affects the continuity and profit margin of
such project and if not checked can lead to technical insolvency or bankruptcy. Therefore,

—1—
attention must be paid to how materials are been procured, stored and managed in order to
achieve perfect work, effective handling of materials, right usage of materials and control of
manufacturing resources.

Materials management functions include planning and taking off materials, vendor evaluation
and selection, purchasing, expenditure, shipping, material receiving, warehousing and inventory,
and material distribution (Narimah 2011). Almost 60% of the total working capital of any
industrial organization consists of materials costs. Materials management can only produce what
it should with the right quantities of the right material at the right time.

Thus, any improper handling and managing of materials will cause a huge effect on the total
project cost, time and quality. There is a need to explore on the area of materials management,
the issues relating to materials management problems. The aim of this study is therefore to
investigate deeply the material management practices on manufacturing area of Zebider Beer
Factory.

1.2 Background of the Company

Zebider Beer is one of the leading manufacture factory located in the heart of Gurage zone
Gubre town . Zebider Beer higher organization industries established with a capital birr 570
million has producing different types steal sheet product , virus diameter wire , different size
nail and twisted.

The logistic functions, such as distribution, transportation and warehousing are in sourced at
ASF. The transportation process is implemented by the factories vehicles prepared for this
delivery purpose. Same applies for distribution and ware housing to certain areas covering almost
every region of the country. The steel and nail manufacturing facility has it’s own warehouse that
is used to support the manufacturing operations, these are resources needed for production and
for internal purposes like office materials and maintenance. Also the warehouses for keeping
final products are built on an area near the factory. The basic control of material management
functions are initiated through the procurement (purchasing) department. The procurement
works with the operation department to accept requests from and purchase them based on the

—2—
types and amount required. The main tasks of the production department are to maintain supplier
relationships, to imitate purchasing process of the materials from outer resources and control the
amounts of money spent in purchasing.

The main assignment of the procurement department are:

-To maintain supplier relationships

-Initiate purchasing process of the materials form outer resources and control the amount of
money spent in purchasing.

Inventory controlling is one of the most significant practice of this company. Inventory is
checked every three months and overall assessment is done annually, they also have daily
practice of counting inventories. In addition the functions related to inventory control are
performed by store keepers, they are mainly assigned to receive purchased materials and receipts,
check the received goods according to the requisite and receipt. Their main tasks are to store the
materials safely to their best quality and provide when requested by the production department.

So generally, the company’s operation department send a material request in time of raw
materials needed to the production manager, they analyzes the request and prepare requisites
form to send it to store. If the store is out of stock, the store keepers send the requisites form to
purchasing department, this department then check for the required materials in the market and
purchases them, then it’s received by the store keepers according to the receipt and stored until
the time of usage or when it will be required by the production department.

1.2 Statement of the problem

The concept of material management basically focuses on the techniques used to ensure that
stock of raw materials or other supplies, work in progress and finished goods are kept at levels
which provide maximum service levels at minimum costs (Lysons,200). Accordingly to
Mpwanya (2005) and Agha(2010) the aim of material management is to meet the customer
service and product availability at the lowest possible cost. The secret of a good material
management system thus lies in balancing the objectives optimum and harvesting the

—3—
maximum marketing opportunities however ineffective material management system lead the
companies to be uncompetitive and financial loss(Makwebe,2009).

Lack of effective material management is one of the major causes of this problem. Failure of the
project manager to make available materials need could lead to delay. Non-compliance strictly
with project bill of quantities, schedule of materials, specifications and construction program in
material stock control practice is another contributing factor which tends gradually to decrease
profitability of a project also often leads to extension of time respectively. Besides that, the rate
at which materials are being wasted due to improper management is becoming unbearable due to
Zebidar beer factory its effect on profit margin and proper usage of material to achieve quality
job.

Therefore, the overall intention of this study is to assess the material management practices on
the Zebidar beer Factory.

1.2.1 Research Questions

The following are the research questions as related to this study

• What is the current practices of materials management in Zebider Beer Factory?

• What are the factors affect materials management on Zebider Beer Factory?

• What are the measures to be put effective materials management?

1.3 Objective of the Study

1.3.1 General objectives of the Study

The general objective of the study was Assessment of material management practice in case of
Zebider Beer Factory

1.3.2 Specific Objectives of the Study

The specific objectives of this research are;

—4—
1. To asses the Current practices of material management in Zebider Beer Factory

2. To asses the factors effective materials management on Zebider Beer Factory

3. To assess view on the measures to put in place to ensure effective Materials management in
Zebider Beer Factory

1.4 Significance of the Study

This study was assessing the material management practice system provide to close the gap
between distribution and organization. This study expected to provide the following results:

• It helps to know and improve current company distribution system .

• It may serve as reference materials for those seeking deep study in the area under

investigation.

• To help other researcher and gave sufficient information about the distribution management

• The student researcher gets experience and knowledge on how to conduct research.

• The study enhances the knowledge of the researchers with regard to the concept of
distribution and their importance for the success of a business.

1.5 Scope (delimitation) of the Study

The study has attempted to deal to describe the material management practice system in
Zebidar Beer Factory which is located, in Gurage region in Wolikte City Administration.

This study tries to describe the material management system only . It has been better if the study
covers the Zebidar Beer factory only. In addition to this the study should be delimited to
material management rather than dealing other topic .

—5—
1.7 Organizational Study

The Study was organize in five chapters. The first chapter introduces the background of the study,
the research questions and objectives, significance of the study, scope of the study, limitation of
the study and organization of the study. The second chapter presents theoretical and empirical
review of the related literatures. The third chapter deals with methodology of the study. The fourth
chapter was concern with the analysis, results and discussions. The fifth chapter was present the
conclusion and recommendations drawn from findings of the data in addition with implications
for further research.

—6—
 CHAPTER TWO

2. LITERATURE REVIEW

2.1.Theoretical Review

2.1.2 Historical Growth of Materials Management

The evolution or History of Materials Management starts with the US and World War I. Before
the 1st World war, people were unaware of the importance of Materials Management, Inventory
Control and Supply chain Management.(Prof. Howard T)

The concept of Material Management was strengthened with the research papers published by
Harvard University.

History of Materials Management in detail

Material management as a discipline was rather slow to evolve as compared to production and
marketing function.

Some elements of the function practised across organization all levels of but the birth of material
management as a field of study and one of great relevance of business performance is of recent
origin and had its root in the US economy.

In the past three centuries the human civilization developed from a supply constrained handicraft
economy to today’s service economy.

Over the years from the simple mechanism of exchange of goods and services. It has transformed
into a complex system of industrial production and commercial system.

2.1.3 Definition of Material Management

What is Materials Management?

—7—
  Materials are any resource used in the direct conversion of a product or the aid to the
conversion process.
 Material management is the process of planning, organizing implementing and controlling
the tasks associated with the flow of material.
 The Webster's dictionary defines materials as "the elements, constituents, or substances of
which something is composed or can be made." Ballot (2001) defines materials as the
physical materials that are purchased and used to produce the final product and does not
suggest that materials are the final product. In other words, materials are the parts used to
produce the final product.
 Bailey and Farmer (2002) define materials as the goods purchased from sources out of the
organization that are used to produce finished products.
 Chandler (2008) states that construction materials can be classified into different
categories depending on their fabrication and in the way that they can be handled on site.
Materials management (MM) is important for three reasons.
These services support the goal of fast process throughout the organization, and include:
 Uninterrupted flow of materials
 Assistance to customers-repair, replants or delivery
 Reduction in parts shortage
 Average transit from warehouse to customer
 Minimum of transportation delays
 Accurate inventory counts
 Good forecast accuracy

2.1.4 Objectives of Materials Management

Objectives of a material management system should include lowest final cost, optimum quality,
assurance of supply, and lowest administrative costs. The materials manager should obtain the
materials needed at the lowest cost possible.

According to Khyomesh and Chetna (2011), the objectives of materials management are Efficient
materials planning;. Buying or Purchasing; Procuring and receiving; Storing and inventory
control; Supply and distribution of materials; Quality assurance; Good supplier and customer
relationship; and Improved departmental efficiency.

—8—
To fulfill all these objectives, it is necessary to establish harmony and good co-ordination
between all the employees of material management department and this department should have
good co-ordination with the other departments of the organization to serve all production Center.

2.1.5 Material Schedule

Chandler (2008) said schedule is a list in a diagrammatic presentation indicating requirement of

resources. And aid used in the ordering of material is schedule. Materials gratuity will be
required to be taken off from the drawing and must show:-quantity required to be fixed; waste
allowed in the estimate; gratuity to be ordered; date of delivery; cost includes in the estimate.

Paul (2007) said while construction scheduling is concerned with the regulation of the flow of
construction units through their preconceived plans of operations, material. Scheduling involve
the establishment of time tables for the ordering of all materials requirement for maintaining the
flow of materials must be schedule to coincide with the flow of all construction of activities
involved in the actual construction of each project .

The schedule is usually produced by Quantity surveyor or by a material schedule e.t.c. By

systematic analysis to bills of quantity and contract drawing with specification, schedule is the
pre-requisite for the programming of the materials delivery and material usage planning on the
site. Material should never be ordered directly from the contract bills, which are only intended as
a guide to the contractor pricing the contract. The estimate will produce schedule of material for
the buyer. The estimator will produce figure for material to be delivered in bulk and those
material that should be imported.

The date of delivery guaranteed by the suppliers against each item can be compared with the
builders plan requirements. In those circumstances changes in the specification with often enable
the builder to order under material that will available within the required period for delivery and
thereby avoid unnecessary delay in the future.

Ordering Planning

Materials may be ordered for by the architect or the contractor. The supplier dominated by the
architect is called dominated supply. Whoever is making the order should give fullest

—9—
information as regard delivery debt, the hour during which the material will be accepted on site
and other general terms and conditions such as liability for damage use, method of packing, size
and weight of the load that can be handle on site. Materials that are on long term delivery should
be placed on other as soon as the contract is sign so that material will arrive at the reward time. In
the short form programmed the quantity of material required in the place and period of its use to
be indicated.

Storage Planning

Before the material ordered arrives adequate preparation should be pounded for storage and its
handing storage of nation and successful coordination are vital so as to prevent dissipation to site
procedures and wastage to material caused by disregard and disorganize operatives.

Also good storage enhances proper management of materials aid it minimizes concerned. The
rate at which materials are being used and the working order should provide a guide as to the
quantity of materials to be ordered.

Transportation Planning

An efficient transportation of construction materials from storage to point of use reduces project
cost. Therefore proper transportation planning system should be planned, the route and the best
suited for the conveyance of each material should be used ford. And all fragile material must be
tired to the transporting plan to prevent breakage. In the finer analysis, purchasing and trafficking
have no logical alternative but walk together. Their interest are so interrelated that the
performance of one department significantly influence use the degree of success attain by the
order if purchasing ignore the principle of good traffic management in its daily work. It will in
the long run inevitably pay excessive price for the transportation segment of the material it brings
(Lamer, 2007).

Procurement

The term procurement encompasses a wide range of activities that includes purchasing of
equipment, materials, labour and services required for construction and implementation of a

— 10
—
project (Barrie and Paulson, 2002). The objective of procurement in materials management is to
provide quality materials at the right time and place, and at an agreed budget.

Purchasing Methods

a)Purchase Accounting.

Purchase accounting is a method used to make sure that; only goods authorized are purchase;
only goods and material purchased and received are paid for; and payment made in accordance
with agreed and or on contractual terms.

Purchasing research

Purchasing research is a technique that systematically searches for the analytics and quantity of
need material at the best price as well as analysing eventually uses of such material and
expensive method of use. Study of the following may be included purchase research.

 Material used in construction:- new material, alternative

materials, high Quality materials;

 Price: - including satisfactory supply at best price, Market and economic trends;

 Capital equipment decisions:- whether to buyer hire;

 Work study; assessment of material cost in relation to use purchasing employees

who Have studied these areas can provide cost reduction purchase services:-
recommend an economic intercompany system of supply

 Efficient supply of materials; be able to fare cast supply price changes; be able to
Forecast market changes; be aware of new materials and work-study.

— 11
—
Type of Purchase ,according to (Bajeh, 2010), the types of purchase are; batch
Purchase; schedule purchase; and sale supplier agreement.

Material Purchase

Purchasing has a direct impact on profitability and individual job profits. Purchasing needed raw
material, supplies and equipment is a vital area for cost reduction. Since it involve the spending
of large sums. According to Frank (2010) circumstances of misuse and water of resources in the
form of material can be extensive and include: buying the wrong article; buying too much;
buying too little; buying uneconomically; losing material in transit, in storage, in use; materials
stolen or proffered; spoilage and damage to material before use; scrap and spoiling during use;
buying or making out of balance.

According to Lamer (2007), purchasing is one of the basics functions common to all type of
business enterprise. These functions are basic because no business can operate without them all
business are administered or managed by coordinating and integrating those six functions:

 Creation, the idea of design function

 Finance, the capital acquisition records function

 Personnel, the human resources and labour relation function

 Purchasing, the buying of required equipment, material, and services

 Conversion, the changing of material to economic goods

 Distribution, the selling or marketing of goods produced

The good of the purchasing department then should be to avoid cheap purchase but to look for
optimum purchases. Sometime good material can be purchased at lower unit cost through large

— 12
—
 – order size purchases.

Purchasing Departments

In large organization the purchasing group may include purchasing analyst, traffic expert
expedite as well as management. In some cases purchasing is expanded to include all logistics
involve in the moving handling storing of material.

Lamer (2007), the purchasing department on the order hand has the responsibility and authority
to schedule outside production the purchasing department is an organization unit of firm whose
duties include some part or all of the purchasing function.

Purchasing Procedures and Documentation

According to DCE’s procurement & property administration directive (2010), the process is
started with purchase requisition, the authorization of the firm through an approved official to
buy the needed materials. Quality, quantity, and date needed are specified on a requisition form,
which must be signed by an authorized person.

The requisition form should also be numbered for accounting control in the case of materials that
are needed periodically, a repeating requisition form may be established, where goods are
ordered regularly according to a predetermined schedule. A section to include purchase order
number, address should be included in the form’s design for best control.

— 13
—
Ordering

Selecting of suppliers in purchasing depends on :-quality of materials; price goods and materials;
availability of materials in bulk and small quantities; service offered by supplier; payments terms
offered by supplier; and reliability of supplier. Supplier offering case discounts for prompt
payment may be cheaper overall than companies without discounts, even if the basic goods costs
more.

Quotation request from is often used to determined supplier’s prices for goods and used to
compared the supplier offering the best advantages to the buyer chose. The next step is
preparation of purchase order. Careful from design is needed. Since the purchase order serves as
a legal contract, therefore, the Factor to be included are: name and number of farm, name address
of supplier, name and address of buyer, date of order, description of goods, quantity of materials,
production, delivery destination, delivery date, terms of payment, cost of transportation, discount
and signature of purchasing officer. Form design and flow should be planned for simplicity for
handling, avoiding unnecessary and costly duplication. Purchase orders or contracts often list
conditions and terms to protect buyer

Purchasing Records

One key area in reducing purchasing cost is that of record keeping. The trades those should be
maintained for rapid construction are: supplier’s name and address, including what goods are
supplied by each; prices of goods last purchased in each area; purchase made, listing items,
prices and suppliers; and date of purchase

The following records give status purchase to process ensuring time and cost control:

 File of contracts outstanding by deadline date

 Receiving book, detailing deliveries

— 14 —
 Invoice book, detailing invoices proceed

 Codes for use on requisition, quotation requests and purchase order to indicate department
and material for accounting use.

 Order register for purchase to progress but not yet received.

 Department breakdown of purchasing costs

Logistics

Effective logistic management systems will also facilitate the integration and degree of
Coordination among contactors, sub-contractors, and suppliers and will ultimately increase
Construction workers’ productivity Logistics is a concept that emphasizes movement and it
encompasses planning, implementing, and controlling the flow and storage of all goods from raw
materials to the finished product to meet customer requirements). Raw materials for construction
are usually varied, bulky and heavy and required proper handling in the supplying process.
Consequently, the construction industry requires active movement of materials from the suppliers
to the production area in both the factory and the worksite (Pheng and Chuan, 2001).

The primary focus of the logistics concept in construction projects is to improve coordination and
communication between project participations during the design and construction phases,
particularly in the materials flow control process Agapiou, Clausen, Flanagan, Norman and
Notman (2008). They also mentioned that Problems arise in the materials flow control process
which includes delays of materials supply, due to some materials purchased just before they are
required and waste of materials during storage, handling and transporting when procured in large
quantities without complying with the production needs on site. The previous research suggested

— 15 —
that, the routing of materials is one of the main causes which affect cost and time during
construction projects

Hence, the factors that should be taken into consideration during the logistics process for
effective materials management include: optimum forecasting of materials movement; and
Planning of access and routing of material within a construction site.

Handling

Tompkins and White (2004) define Effective material handling as using the right method in
providing the right amount of the right material, at the right place, time, sequence, position,
condition, and cost.

This involves handling, storing, and controlling of the construction materials. Therefore,
materials handling provides movement to ensure that materials are located and that a systematic
approach is required in designing the system.

Handling of materials is the flow component that provides for their movement and placement.
The importance of appropriate handling of materials is highlighted by the fact that they are
expensive and engage critical decisions.

Due to the frequency of handling materials there are quality considerations when designing a
materials handling system. The selection of the material handling equipment is an important
function as it can enhance the production process, provide effective utilization of manpower,
increase production and improve system flexibility (Chan, 2002).

The importance of appropriate handling of materials is highlighted by the fact that there are
expensive and engages critical decisions. The materials handling equipment selection is an
important function in the design of a material handling system in order to enhance the production
process, provide effective utilization of manpower, increase production, and improve system
flexibility (Chan, 2002)

In addition, materials scheduling is also an essential part of handling material on site, which has
several benefits Wan Putra, Ahmad, such as: showing the quantities involved in each particular

— 16 —
operation; providing a key to the distribution of materials on site; and demonstrating useful way
of checking quantities required by sub-contractor, etc.

Materials must be delivered to site undamaged and without any wastage. Most common problems
associated with materials supply is inadequate unloading and handling facilities, which attribute a
high proportion of wastage Therefore, handling with safety during movement of materials at site,
which reduce the percentage of materials wastage and finally foster significant improvement can
often the total system productivity.

Stock and Waste Control

The European Construction Institute's Total Productivity Management report states that materials
delivery to site is a critical, productivity-related aspect which

demands the introduction of a carefully developed system of monitoring and control as early as
possible. Delivery of the bulk of the construction materials requires proper management of the
stock control. Stock control is a technique to ensure all items such as raw materials, processed
materials, components for assembly, consumables stores, general stores, maintenance materials
and spares work in progress and finished products are available when required. (Prabu and Baker,
2006).

Construction activity can generate an enormous amount of waste (TeoLoosemore, (2001), and
materials waste has been recopied as a major problem in the construction industry Formoso, De
Cesare and Isatto (2002).There are also mentioned that construction materials waste, in the USA
contributes approximately 29%. In the UK it contributes more than 50% and in Australia it
contributes 20-30%. This is evidence to control constructions materials in a good way during the
construction process. The cause of waste in construction projects indicates that waste can arise at
any stage of the construction process from inception, right through the design, construction and
operation of the built facility Therefore, waste can be reduced through the careful consideration
of the need for minimization and better reuse of materials in both the design and construction
phases (Dainty and Brooke, 2004).

— 17 —
2.1.5 Type of materials into five categories.

They are:

 Bulk materials:- these are materials that are delivered in mass and are deposited
in a container.

 Bagged materials:- these are materials delivered in bags for ease of handling
and controlled use.

 Palleted materials:- these are bagged materials that are placed in pallets for delivery.

 Packaged materials:- these are materials that are packaged together to prevent
damage during transportation and deterioration when they are stored

 Loose materials:- these are materials that are partially fabricated and that should be
handled individually.

Managerial Function

For any kind of organization to run smoothly, it needs to implement core management concepts.
This necessitates that the four management functions - planning, organizing, leading and
controlling be precisely understood. According to (Kondalkar, 2007), the following are the four
types of management function

1. Planning

Planning is the process used by managers to identify and select appropriate goals and courses of
action for an organization. There are steps to good planning:

i. What goals should be pursued?

ii. How should the goals be attained?

— 18 —
iii. When resources should be allocated?

The planning function determines how effective and efficient the organization is and determines
the strategy of the organization.

2. Organizing

In organizing, managers create the structure of working relationships between organizational

members that best allows them to work together and achieve goals.

Managers group people into departments according to the tasks performed. Managers also lay
out lines of authority and responsibility for members. An organizational structure is the outcome
of organizing. This structure coordinates and motivates employees so that they work together to
achieve goals.

3. Leading

In leading, managers determine direction, state a clear vision for employees to follow, and help
employees understand the role they play in attaining goals.

Leadership involves a manager using power, influence, vision, persuasion, and communication
skills. The outcome of the leading function is a high level of motivation and commitment from
employees to the organization.

4. Controlling

In controlling, managers evaluate how well the organization is achieving its goals and takes
corrective action to improve performance. Managers monitor individuals, departments, and the
organization to determine if desired performance has been reached. Managers also take action to
increase performance as required. The outcome of the controlling function is the accurate
measurement of performance and regulation of efficiency and effectiveness.

Components of Material Management are:

 Material estimation, budgeting, planning and programming.

— 19 —
  Scheduling, purchasing and procurement.

 Receiving and inspection

 Inventory control, storage and warehousing

 Material handling and transport

 Waste management

Materials Management Processes

Materials management processes involve the planning, procurement, handling, stock and waste
control, and logistics surrounding materials on construction projects. A good materials
management environment enables proper materials handling on construction sites. In order to
better understand materials management the following processes are discussed: planning,
procurement, logistics, handling, stock and waste control, storage of material.

Planning

The process of planning construction methods has been defined as "understanding what has to be
built, then establishing the right method, in the most economical way to meet the client's
requirements" (Illingworth, 2003). This is a detailed scheme for achieving an objective for
certain work tasks. In the case of materials, there is a need for an appropriate planning, which
must be done concurrently with engineering, construction, and other project plans (Stukhart,
2005). He also mentioned, thus, material planning will provide guides for all the Subsequent
activities and can have a great impact on the project plan.

The materials planning process covers setting up and maintaining the records of each part used in
each plant to determine target inventory levels, and delivery frequency Payne, Cliclsoin, and
Rcavill (2006).As a result, an excellent management of the materials record will help the flow of

— 20 —
materials at the site in order to avoid several problems such as materials out of stock and
materials that have not been delivered.

Mentioned that material planning would provide guides to all the Subsequent activities and that
this could have a great impact on the project plan. The materials planning process covers the set
up and maintenance of records and determines the target inventory levels, and delivery frequency
Payne et al. (2006).Planning of access and routing of materials within a construction site has an
important implication for the development of an effective materials management strategy
particularly in terms of increasing productivity and profit, and facilitating the timely completion
of construction projects The objective of efficient materials planning is, to increase productivity
and profit of the company, and facilitate the completion of construction projects (Wong and
Norman, 2007). Thus, better planning of raw materials on site can help to eliminate project
delays and reduces activity times, resulting in better service.

2.1.6 Elements of a Waste Management Plan

Project planning is very important because it allows the opportunity to define a problem, assess
possible solutions, proceed to implement the final option and make provision for evaluation at
the end. It is unthinkable to commence a construction project without going through this process.

For the same reason, waste management on construction sites should be planned before
construction activities begin. A waste management plan does not have to be complicated; in fact
it need not even be a long document. It simply needs to be concise, comprehensive and practical
for easy interpretation and implementation on site.

Materials Wastage and Security Control on Site

Materials waste control methods reduce firm and industry wastages from practice already
operation thus reducing project costs. Control is applied to the following areas.

Materials quality:- Inspection of materials prior to construction can eliminate faculty materials
that would waste processing labor and other materials if unchecked.

— 21 —
  Materials standard should be specified to aid to the inspection process.

 Materials handling efficiency including equipment and methods that will not charge
materials in storage or interplant practices

 Employee training to maximize efficient construction.

 Study packing to protect incoming materials and outgoing materials

When determining the amount of waste and methods to control it the statistics that should be
established are:- weight and / or volume of wastes; sources of wastes; value of waste; and later
use of waste, if any.

Therefore, with the trend of materials cost using at a faster than other resources the control of
waste is vitally important, both on and off site. Buttler (2003 ) in the Element of Administration
for building student’s stressed that waste can reduce by the following:-

 Ensure that materials are delivered as required so that site storage time is cut a
minimum this requires careful phasing of deliveries between site and supplier

 Ensure that materials delivered are those specified for that particular job.

 Ensure that workman are not only producing excessive amount of “off event”

 Make sure that the storage is located near the site

 Make sure that stored materials are not deteriorated.

 Collect waste and use to prevent more cutting.

Security Control of Materials

Security is the protection of business property including information, both in the plant or site and
intra-sit. Costs are reduced through the use of security by a reduction of materials, suppliers that
are proffered or stolen.

— 22 —
Additionally insurance costs may be reducing when adequate security pensions are made. One
study made by professor leonsredzinoicy, well-known criminology at Cambridge University,
indicates that as many as of pre term of women and 29 percent of men carry out one or more
indictable crimes during their lifetimes, and percentages are rising. Cost of security system it is
much lower when the system is designed and built on site. Theft resistance doors and windows
fencing, compounds, store shed, day guard and night, dogs on the site. Alarm e.t.care all much
cheaper to install.

Material Control

Chandler (2008) explained that the degree of control on the inflow of materials and
accompanying paper work will depend upon the size of the contract and the staff assigns to
oversee this work.

After all the planning ordering and buying process have been working to effect a tight control
over the materials situations, the site can negate the whole system if it does not carry out its
functions (to supervise the utilization of materials on the site).

He stressed further that control on site must be exercised respect of waste deterioration, misuse
e.t.c. careful check should be made to ensure correction of orders and that materials delivery can
be properly stretch and unnecessarily handling avoided

 Control measures on site should include:

 Adequate supervision: should ensure that materials are not dropped, spoiled or
discarded unnecessarily during operation.

 Accounting: Records should be kept of all transactions – receipts, suppliers, waste,

and transfers to other sites

— 23 —
  Delivery: schedule of timing and contractual responsibility in delivery orders
should be agreed with supplier. Order should be checked on arrive on site by
competent storekeeper.

 Security and storage: practical site security with fencing where necessary and a
watched gateman, site store with lock. In addition, site manager’s office should be
situated in such a position that he could have an overview of the entire site where
practicable.

 Internal Transportation: This should be done in a way to avoid double handling.

And so on.

2.1.7 Reason for Holding Stock

The cost goods for inventory burden cost is high usually 25-35 percent of the values of goods–
(Higgins, 2006). This figure includes the cost of the physical storage facilities. Handling,
distribution taxes insurance and deterioration. Deterioration account for well over half of the
cost, and therefore they are especially suitable targets for cost reduction procedures. Storage
should be kept to the minimum required, and reasons for holding stock include the following
reasons.

 Delivery cannot be exactly matched with day by day usage.

 Quantity discounts or projected inflation caused price increase on materials purchased large
enough to offset storage costs.

 Fear of widely fluctuating market for goods.

 Fear of short run inflation on some materials constantly used.

 Some items appreciate in value during the time of storage e.g block.

Control

— 24 —
Stock control requires the following steps.

 Establishing a base inventory of goods now held, as well as a method for adding to or
subtracting from the inventory, will eliminate costly annual stock taking.

 Decisions must be made as to the amount of supplier’s goods to be held, taking business
conditions and quantity needed into account along storage cost factors.

 Co-ordination of purchase and delivery schedules by departmental head and the purchasing
department.

Storage of Materials

According to Mezue (2002) material storage can be defined as merely keeping material(s) in sage
place until it is required or requested for use in a manufacturing process. Manufacturing process
also includes construction process. To obtain good material storage, a system whereby material
are systematically organized by administratively keeping them safely and providing for the best
means of flowing in and out of them is adopted. Storage of materials is the direct responsibility
of site management and has a strong influence of material.

Chandler (1978) advanced that attitude taken to newly delivered materials and components will
be carried through their subsequent handling and usage. A careless regard for the value and
utility of the materials on part of the management could lead to a progressive deterioration in the
operatives’ regard for the materials. The system adopted for the storage of materials will
therefore depends wholly on the co-operation of the site team

Materials Management Problems

, Dey (2001) noted that the common issues relating to materials management are as follows:

 Receiving materials before they are required, causing more inventory cost and chances of
deterioration in quality;

— 25 —
 Not receiving materials at the time of requirement, causing loss of productivity;

 Incorrect materials take-off from drawings and design documents;

 Subsequent design changes;

 Damage/loss of items;

 Selection of type of contract for specific materials procurement;

 Vendor evaluation criteria;

 Piling up of inventory and controlling of the same;

 and Management of surplus materials

The traditional construction method supply paper-based work during the construction process.
This can produce excessive paperwork and contributes poor materials management in
construction projects. Zakeri.,Olomolaiye, Holt and Harris(2006) there is also give problematic,
effort - prone and inefficient in the recording and exchanging information of materials
component within a supply chain.

2.2 Empirical Review

According to David asllma,(2012)evaluated the material management practice and

organizational performance Stuart university . Inventory management practice are related to
performance of the organization ,corporation or business as regards service delivery. The
study recommends that material management is important in logistic planning and control,
production process ,purchasing and satisfaction of customer service all of which are
important in organization performance

— 26 —
 According to victorie(2015) evaluate the impact of material managment on profitability in
Rwanda using a manufacturing company. Material managements significant impact on the
company's financial performance.

According to nazarsohail,(2018)evaluated the material management system krukshetra

university. material management is a challenging problem area in supply chain
management. Companies need to have Material in ware house in order to fulfill customer
demand mean while these material have holding cost and this is frozen fund that can be
lost . The recommends that inventory management has to do with keeping precise records
of finished goods that are ready for shipment.

As per the research knowledge, in order to solve the problem should identified and
strength of the existing section for effective material management. Therefore as we can see
the above expression, to know aboutmaterial management of an organization is very essential
for the operation of organization.

2.4 The Abstract or summary

Materials management functions include planning and taking off materials, vendor evaluation
and selection, purchasing, expenditure, shipping, material receiving, warehousing and inventory,
and material distribution (Narimah 2011). Almost 60% of the total working capital of any
industrial organization consists of materials costs. Materials management can only produce what
it should with the right quantities of the right material at the right time.

Thus, any improper handling and managing of materials will cause a huge effect on the total
project cost, time and quality. There is a need to explore on the area of materials management,
the issues relating to materials management problems of the history and evolution of Materials
management is given as below.

Below are the key points associated with the evolution or history of Materials Management.

Ÿ Shortage of Material

— 27 —
Ÿ Increased Production, Population

Ÿ Increased Demand

2.4 Conceptual frame work

The following diagram illustrates the conceptual framework of growth model in which
Effectiveness of Material Management Practices at Zebidar Beer Factory is dependent variable
while, (Inventory Control Measures,Material Procurement Strategies, Supply Chain Management
Practices,Resource Allocation Decisions,and Technological Integration in Material
Management). By examining how these independent variables impact the effectiveness of
material management practices (dependent variable) at Zebidar Beer Factory, the research aims
to provide insights for enhancing operational performance and profitability in the manufacturing
sector.

Figure 2.1 conceptual framework

MPC
MPS

TIMM
ICM
MM

RAD SCMP

— 28 —
 CHAPTER THREE

3.Methodology of the Study

3.1 Introduction

In this chapter research design,type and source of data, methods of data collection,target
population, sample size, and sampling technique,methods of data analysis adopted by the
researchers are discussed.

3.2 Research Design

The study was used a descriptive study design to analyze the data. Descriptive research is a type
of research that is mainly concern with describing the nature or condition and the degree in detail
of the present situation. (Creswell, 2003) state that the descriptive method of research is used to
gather information about the present or existing condition The research employed descriptive
method because the study intended to find out the material management practice manufacture
sites . Kothari (2004) defines descriptive research study as Descriptive research studies are those
studies which are concerned with describing the characteristics of a particular individual, or of a
group.

3.3 Data Type ,Source and Method of Collection

The proposed study was used a qualitative and quantitative type of data that include the material
management practice thought, idea and discussions. The study also used both primary and
secondary source of data. Primary data was be collected from the material management staff and
purchasing Department using questionnaire and interview. The secondary source of data include,
written second hand materials and would be collected from books, organization manual , annual
report , brochures , bulletins , and profiles.

— 29 —
 3.4 Method Data Collection

For proposed study, the researcher was used questionnaires and interview to collect primary data.
The study use both open ended and closed ended type of questionnaires to give freedom for
respondents. And in addition to questionnaires the study use structured interview to collect
information from managers. Structured interview carried out in a structured and pre planed way.

3.5 population and Sample Design

The target population of the study was be target 25 employees of purchase Department , stocks
department employees and management department .

3.6 Data collecting

The sampling design for this population is census sampling technique which a method of
selecting a subset or sample from a population for the purpose of making observations and
drawing inferences about the entire population.Census is an attempt to gather information about
every member of the population, sampling gathers information only about a part, the sample, to
represent the whole.

3.6 Method of Data analysis

The researcher would apply qualitative and quantitative data analysis. ,and represent the data
collected through interview to analysis and represent qualitatively using descriptive data. Data
collected systematically through closed ended questionnaires analysis quantitatively using table
and percentage distribution. Than descriptive statistics would use in order to present, analysis and
interpret the collect data. Descriptive research allows the researchers to gather detailed
information about the existing conditions and practices related to material management practice
at Zebidar Beer Factory. By employing this approach, the study can provide a comprehensive
overview of the current state of material management practice, identify areas for enhancement,
and propose practical recommendations for optimizing resource allocation and improving
operational efficiency.

— 30 —
— 31 —
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

This part of the research is dedicated to data presentation, analysis and interpretation. The
primary source of data for this research is collected via questionnaire and interview. Accordingly,
25 questionnaires were distributed. Out of which, 24 were validly completed and returned (The
response rate 96%). Besides, out of 24questionnaires distributed, 1 (4%) of it was not valid due
to improper responses.

4.2 Personal profile of respondent

This section presents data related to the general characteristics of respondent

Table 1 About gender of respondent

Gender Number of respondent Percentage

Female 2 8.33%

Male 22 91.67%

Total 24 100%

Source: survey questionnaire

Regarding gender distribution of respondents 2(8.33%)of them were female, while 22(91.67%)
of them were male. Major respondents are male.

— 32 —
Table 2 about age of respondent

S.NO Age No Percentage

1 20-29 10 41.67%

2 30-39 6 25%

3 40-49 5 20.83%

4 50-59 3 12.5%

5 60 and above - -

Total 24 100%

Source: Survey questionnaire

Considering table 2 it can be easily seen most of respondents are at the age of 20-29 (41.67%)
Apart from this, respondents from age 30-39 (25%) are more employee to the factory next to age
20-29 whereas, employee at the age of 40-49 (20.83%) and age 50-59(12.5%) take the small
number of respondents.

Table 3 About respondent level of education

S.NO Education level No percentage

— 33 —
 1 Primary level - -

2 Diploma - -

3 BA 12 50%

4 MBA 9 37.5%

5 PHD 3 12.5%

Total 24 100%

Source: survey questionnaire

As it is depicted in table 3, majority of respondent 12 (50%) have earned first degree.

Educational level followed MBA 9(37.5%) and 3(12.5%).

4.3 Analysis of the Major Findings

The student researcher under this particular study has tried to evaluate effectiveness Zebidar beer
Factory Manufacture Factory . To examine the material Management practice concerned
factories to collect the relevant data questionnaires were distributed to targeted employee of
the factories employment.. Accordingly the collected data are presented analyzed and interpreted
as follows.

— 34 —
Table 4 about respondent’s response

S.NO Items Response

Number Percentage

1 Does your company have a Materials

Management department

Yes 24 100%

No 0 -

Total 24 100%

2 . Which department is responsible for Materials

p planning and Scheduling?

Purchasing department 9 37.5%

Stores department 3 12.5%

— 35 —
 Materials Management department 12 50%

Total 24 100%

3 Which department does sourcing of raw materials

needed by the company

Purchasing department 5 20.83%

Stores department 5 20.83%

Department that needs it 14 58.33%

Total 24 100%

Source: Survey Questionnaire

As it indicated in table 4 item 1 all of the respondent (100%) know Zebidar beer factories
have a Materials Management department .

Table 4 item 2 indicate that 9 respondents (37.5%) said purchasing department is responsible
for the planning and scheduling of materials, 3of the respondents (12.5%) said stores department
and materials management department was said to be responsible for the above activities by 12
(50%) respondents. Most respondents from these responses result that sourcing, planning and
scheduling of raw materials is made by the material management department of the company.

— 36 —
Table 5 company sources for materials

S.NO Items Response

Number Percentage

how does the company source for

materials from suppliers

Negotiating 15 62.5%

Invitation to tender 9 37.5%

Total 24 100%

2 Do you put measures in place to Do

your prevent cases of stock out

Yes 22 91.67%

— 37 —
 No 2 8.33%

Total 24 100%

3 Do you inspect materials before

accepting them into the stores or
warehouse

Yes 20 83.33%

No 4 16.66%

Total 24 100%

Source: Survey questionnaire

Table 5 item 1 shows that the company sources for materials from suppliers.
most respondents ( 62.5% ) said Negotiating and other respondents answered Invitation to
tender which is ( 37.5%). Based on the interview conducted with the manager, he indicated that
most of the purchasing of materials is made through negotiating with the suppliers. But,
invitation to tender is also an option when needed.

Most of the respondents (91.67%) said the company uses measurements in place needed to
prevent cases of stock out. So we can conclude that Zebider beer Factory has measures and puts
those measures to work to prevent the production from out of stock.

— 38 —
 Major respondent (83.33%) agreed that inspecting of the purchased materials takes place before
accepting them into stores or warehouse.

According to the response of the manager of the factory materials are inspected before letting
them into the store by checking the, in accordance of the receipts and bill. He also added it helps
them to confirm whether the type, quality and amount they have paid for is received.

Table 6 the overall material activity of the factories

1 What method of materials handling number percentage

system do you adopt?

Mechanical 12 50%

Manual 2 8.33%

Both 10 41.67%

Total 24 100

2 How do you dispose off your obsolete

and scrap items??

Selling to other firm 4 16.67%

— 39 —
 Donation 16 66.7%

Burning 4 16.67%

Total 24

3 Do purchasing take their own decision

concerning acquisition and management
of materials

Yes 16 66.67%

No 8 33.33%

Total 24 100%

Source: survey questionnaire

— 40 —
Table 6 item 1 depicted that 5 respondents (41.67%) said they use mechanical system, half (50%)
of the respondents agreed they use both mechanical and manual. And the rest of the respondents
(8.3%) said they use manual system.

Item 2 based on respondents response regarding they use to dispose their obsolete and scrap
items most of the respondents 8(66.7%) chose donation and some respondents said the factory
does both selling to others and burning of the scrap items.

Based on item 3 most respondents 7 (58.3%) agreed purchasing take their own decision
concerning acquisition and management of material, but, the other 5 (41.67%) disagreed.

Table 7 About respond of purchasing management

1 Does management recognize number percentage

purchasing

a body on it own and indicate as

such

on the organizational structure?

yes 19 79.17

No 5 20.83

Total 24 100

— 41 —
 2 who does purchasing managers’
reports to

Accountant - -

Managing director 11 45.83%

Purchase Manager 7 29.16%

Material manager 6 25%

Total 24 100%

From table 7 item 1: most of the respondents 19(79.17%) agreed that management recognizes
purchasing as a body on its own and indicates as such on the organization structure.

Item 2 indicates that majority of the respondents 11(45.83%) said purchasing managers’ report to
managing director. The lesser major number of respondents 6(25%)indicated material
management and the rest of the respondents 7(29.replied with purchase manager.

Table 8 About experience shortage of materials

Item Alternative No of response In percent

— 42 —
 Do the organization experience Yes 17 70.83%

shortage
No 7 29.17%

Total 24 100%

Most of the respondents agreed that the organization experience shortage of materials i.e.
17(70.83%). But 7(29.17%) of the employees implied that the company didn’t experience
shortage.

Table 9 About purchasing responsible for all acquisitions of material

Item Alternative No of response In percent

Is purchasing responsible for all acquisitions Yes 18 75%

of materials into the organization?

No 6 25%

Total 24 100

According to table 9, 18(75%) of employees responded that they have purchasing responsible
for all acquisitions of material . But 6(25%) of the employees implied that did not take part in
acquisition of material in factory.

— 43 —
The main goal of the advertising is creating brand image, good will creation and differentiation
from others. Here, there is a difference between employees response and believed. Employees
said that there is no such differentiation between factories and other company .

Concerning evaluating effectiveness material management practice result in regard to getting

respondent , the employees is not trying to get customers by using advertising rather it tries to
create goodwill and brand recognition brothers flour and factories .

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMANDATIONS

5.1 Summary

 Reading from customers’ profiles, data that was collected from 24 of Zebider Beer
Factory from total respondents 22(91.6) respondents were male and 4(8.33)of respondent
were female. On the data collected about education levels 12(50%)of respondents have
bachelor degree, on occupation 9(37.5%) were MBA graduates and PHD3(12.5%).
 According to respondents based on their material management department and
responsibilities, the company has material management department also from the same
data as indicated by the majority of the respondents materials management department is
responsible for planning and scheduling of material and sourcing of raw materials is done
by the department that needs it.
 Based on the data collected on sourcing and managing of raw materials, sourcing of
materials from suppliers is done through negotiating and sometimes considers invitation
to tender. 91.67% of Respondents replies yes to the company having measures to put in
place to prevent stock out. 20 out of the 24 respondents said the company inspects
materials before accepting them into the stores and warehouses.
 As implied on the information collected from the respondents on materials handling, half
(50%) of respondents said they use mechanical system, 8.33%manual and the other
41.67% of the respondents) said they use both. Obsolete and scrap items are disposed by
selling them to other firms according to 4respondents and donated according to the
majority (16 respondents).
 Based on the data collected about the purchasing and purchasing management
department, Majority of the respondents implied that purchasing take their own decision

— 44 —
 concerning acquisition and management of materials more to that 19 respondents said
purchasing department is responsible for all acquisitions of materials to the organization.
And also same amount of responses shows that management recognizes purchasing as a
body on its own is as such on the structure. In addition to that 45.83% of the respondents
said purchasing managers’ report to managing director, 25%said material manager and
the remaining 29.16% said purchasing manager.

 According to the data gathered, majority of the respondents implied that they experience
shortage.

5.2 Conclusions

 The materials management concept which brings together under one manager, the
responsibility for determining the manufacturing requirements, scheduling the
manufacturing process, purchasing, storing, and distribution of materials is seen as
essential to all manufacturing firms of which Zebider Beer factory of no exception.
 Materials (inventories) are very important to manufacturing companies Therefore, if the
application of the concept of materials management is accepted with well qualified
personnel. The interrelationship of activities of purchasing, inventory control and traffic,
and production control were mentioned as activities within the materials management
concept.
 However, the researcher pointed out that the function of a materials manager is to
promote coordination and integration within the supply chain and the major benefits are
assumed to be; reduction in interdepartmental conflicts, reduction of inventory levels,
reduction of materials handling costs and increased knowledge of total corporate
operations among others.
 In trying to illustrate how the concept of materials management can minimize the cost of
supplies in Zebider Beer Factory , the author were able to base their argument on the
theories used in the frame of reference in connection to the research findings obtained
from the organization. This helped the researcher to establish the relationship between the

— 45 —
 purchasing function existing in Zebider Beer Factory and that of the materials
management concept which in the author’s opinion deem fit for the organization.
 Though corporate planning within a manufacturing organization is responsibility of
management, and is strategic in nature, in Zebider Beer Factory the purchasing function
is somewhat centralized, the department is not fully involved in the decision-making
process in the acquisition of materials for manufacturing activities.
 As material management is the integrated and coordination of material estimation,
purchasing, expediting, receiving, were housing, proper utilization & disposal, if this
function are not properly managed material shortage, surplus and cash problems are likely
to occur in Zebider Beer Factory.
 Materials management process improves the success rate of project planning, execution
and timely availability of material. It is for these reasons that the researcher are
advocating for the concept of materials management in Zebider Beer Factory which in
their opinion could increase the effectiveness of material management practice.

5.3 RECOMMANDATIONS

On the basis of the above findings, the following recommendation has been made.

 The concept of materials management is essential to all manufacturing firms, therefore

the factory should make provisions for training and retraining of management and site
personnel in order to improve their efficiency for effective material management practice
and should ensure the use of skilled manpower for their works and provide efficient
supervision with professionals to have effective material management practice on
manufacturing products.
 The concept which if accepted and implemented, would generate a number of valuable
advantages to Zebider Beer Factory , in terms of total organizational control and materials
control.
 The locus of control (unity of command) should be practice more in the area of
purchasing department. When chain of command is united the company can have a better
performance of effectiveness of material management practice. In the author’s suggestion
Chain of command around purchasing should be improved and worked on. The
purchasing department would generate more profitable work and show utilized
performance. If the managers of purchasing were able to report to a single authorized

— 46 —
 person (department). The author recommends ‘the director of managers’, in order to
improve their efficiency for effective material management practice.
 The researcher suggests that decision making on acquisition should be left to the
purchasing manager or general manager of the organization, to ensure effective material
management practice. This creates uniformity, logical decision making and reasonable
acquisition of materials. All of that is due to the manager having better knowledge on the
capability and resources, in general competencies needed and the need (importance) for
the material.
 Finally, in the researcher suggests that, the management of Zebider Beer Factory, Should
employ qualified staff with the professional skills in the area of materials management,
purchasing and supply management, and logistics and transport management to the
department. In-service training of the above mentioned professionals should be organized
annually by management. The training of the above mentioned staff would help promote
motivation, organizational loyalty, and continue development of staff which would
improve staff competency in the area of materials management and therefore lead to the
effective material management system.

— 47 —
 REFERENCES

Baily P, Farmer D, Jessop D, Jones D.( 2004). Purchasing, Principles and Management.2nd
Edition, Prentice Hall.
Jahre M, Gadde-L E, Håkansson H. (2006). Resourcing in Business Logistics, the Art of
Systematic Combining.
Yin K, R.( 2003). Case study research, design and method.3rd Edition.
Michael Q. Patton. (2002). Qualitative Research & Evaluation Methods, 3rd edition, SAGE
publications united states of America.
Stevenson J. W. (2005). Operations Management.8th Edition. McGraw Hill Company Ltd.
Saunders M,Thornhill A.( 2003). Research Methods for Business Students.3rd Edition.USA.

Abdul-Rahman, H., Berawi, M. A., Mohamed, O., Othman, M. and Yahya, I. A. (2006):
Delay Mitigation in the Malaysian manufacturing Industry. Journal of manufacturing
Industry and Management, Vol. 132, No. 2, pp. 125-133.
Ademeso O.S. and Windapo, A.O (2008): “Relationship between Material Management
Approach and Scheduled Project Completion Time”, Construction and Building Research of
the Royal Institution of Chartered Surveyors Conference, COBRA, Dublin Institute of
Technology.
Agapiou, A., Clausen, L. E., Flanagan, R., Norman, G. and Notman, D. (1998): The Role of
Logistics in the Materials Flow Control. Manufacturing Management and Economics, Vol.
16, No. 2, pp. 131-137.
Asmara S. (2015),Managing and Minimizing Wastage of manufacture Materials on selected
public company in Addis Ababa.

— 48 —
Ballot, Robert B. (2001) Materials Management: A Results Approach, American
Management Association Inc., United States of America.
Bell, L. (2000). Cost and Benefit of Materials Management System. Journal manufacturing
company and Management, ASCE,113(2) , pp.222-234.
Caron, F., Marchet, G., Perego, A. Project logistics: Integrating the procurement and
manufacturing processes, (2004) International Journal of Project Management,16 (5), pp.
311-319.
Cavinato, Joseph, L. (2001) Purchasing and Materials Management, West Publishing
Company, Minnesota.
Chandler E.T. (2002): The Planning of Storage and Management on Site, Special
Correspondence, London.
Che Wan Putra, C. W. F., Ahmad, A., AbdMajid, M. Z. and Kasim, N. ' (2003):Improving
material scheduling for construction industry in Malaysia. InMalaysian Science &
Technology Congress 99, 6 8 December 2003, Johor Bahru, Malaysia.
Clough, R. H., Sears, G. A. and Sears, S. K. (2000): manufacture industry Management, J
ohn Wiley & Sons, USA.
Creswell (2009) Research design Qualitative, Quantitative and mixed method Approaches,
U.S.A.; sage publications Inc.
Donald R.Cooper& Pamela S.Schindler (2014) Business Research methods New York;
MCGraw-Hill Companies.
Dey P.K, (2001): “Re-engineering materials management: A case study on an Indian
Refinery, Business Process management Journal, vol.7 (5), pp. 394-408.
Kondalkar V.G. (2007): Organizational Behaviour, New Age International Publishers, New
Delhi, pp22-23.

— 49 —
 Appendix

Wolkite University

Department of Management

Dear Sir/Madam

We are student of Wolkite University carrying out a research on the Assessment of material
management ( in case of Zebidar Beer) as a part of the requirement for the fulfillment of degree
of Bachelor of Department of Management at Wolkite University. We therefore humbly
request you to spare some of your time and fill in this questionnaire. Please be assured that all
information you give here be strictly for academic purpose and would be treated with great
confidentiality.

Directions

 No need of writing your name

 Put a thick mark in the box provided for the close-ended questions
 Give clear and brief answer for the open-ended questions

Part I

Respondent background information

— 50 —
 1. Age of respondent

20-2930-39 40-49 50-59 60 and above

2. Gender

Male Female

3. Level of education

Primary level Diploma BA MBA Degree PHD

4. Respondent job status

Student Employed Self-employed unemployed

Retired

Part II: Detailed information

5.Does your company have a Materials Management department?
Yes No
6. Which department is responsible for Materials Planning and Scheduling?

Purchasing department Stores department

Materials Management department

7. What is the qualification of those responsible for materials and parts in the company?
Long service workers purchasing qualification accounting qualification
8. Which department does sourcing of materials or parts needed by the company??
Purchasing department, Accounts department
Department that needs it
9 Do you put measures in place to prevent cases of stock out?.?
Yes No

— 51 —
10. . How does the company source for materials from suppliers?
Negotiating Invitation to tender any
11.. If yes what are the most important criteria does the company considers
Price Quality Delivery period
12. . Do you inspect materials before accepting them into the stores or warehouse?
Yes No
13. Do you adopt quality control measures?
Yes No Do you practice them
14.What are factors that affect control Measures?
_____________________________________________________
15 What method of materials handling system do you adopt?
Mechanical Manual Both

16. . How do you dispose off your obsolete and scrap items??

Selling to other firm Donation Burning

17. .Do purchasing take their own decision concerning acquisition and management of materials?
Yes No
If your answer N0 take Roeson ______________________________
18 Do management recognized purchasing as a body on it own and indicate as such on the
organizational structure?
Yes No
19. Who does purchasing managers’ reports to?

Accountant Managing director other specify

20. Do the organization experience shortage?

Yes No

21. . Is purchasing responsible for all acquisitions of materials into the organization?

— 52 —
 Yes No

22. Does top management like the Managing director, Financial Controller etc. insist on what

to purchase concerning quantity, quality, and price?

— 53 —