CHAPTER ONE

INTRODUCTION

1.1     THE PROBLEM AND ITS SETTING

Material management practices play an important and prominent role in industries. The material management personnel is so trained that his services are required in almost every sector of the nation. In recent time, his activities have increased in variety, magnitude and dimension. For example, in management of operational spares, the material management personnel ensures that a user obtains the most appropriate spare for usage or repairs. Again he ensures that user requirement are not accordingly. The various duties required of the material management personnel are of a complex nature and therefore require some degree of efficiency and effectiveness so as to make for user satisfaction but this has not been fully achieved in Nigeria because of manual application in practice.

The materials personnel is a noble man who undertake on behalf of his customer (user department) actions that are riskfully therefore he has to be careful, in calculations and financial report making there are times he has to append his signature on behalf of the user department, all of those put together make his job has to do with a lot of information. Their performance could be enhanced by the introduction of better tools e.g. the computer and this needs to do adopted by the material management personnel in a bid to face challenges over the traditional manual method of rendering services.

The computer is capable of manipulating large volumes of data accurately and at an incredible speed, within a split second the computer can perform task that would take several days. It has ability to store large amounts of data in a very small space. All such qualities make it invaluable in commerce and industry. It would not amount to an over statement to say that for an efficient, accurate and cost effective practice, it is necessary to operate a computerized material management system, using specially designed packages for the following are practice.

       Increase in efficiency

       Fast service to the user

       Reliability of information for management decisions

       Information on items in stock

       Management information report/supplies software

       Monitoring movement of transaction documents

       Full control of ware house and instant recording of transactions.

1.2     STATEMENT OF THE PROBLEM

The generation of materials management information manually for both external (contractor/suppliers) and internal (user department) is usually characterized by delay, inefficiency and inaccuracy and because of these short comings he computer has to be introduced into materials management system, in order to solve such problems associated with manual practice it is obvious that the need for a computerized materials management system practice cannot be over emphasized.

Making use of the most efficient and effective system would enhance decision making which to a great extent would benefit the company manual processing because of its inherent problems, is not capable of meeting to days challenges in practice.

1.3     PURPOSE OF THE STUDY

The purpose of this study is to enhance the services that the materials management personnel renders to his customers in order to keep proper documentation of every area of service rendered so far through the help of the computer system.

1.4     AIMS AND OBJECTIVE OF THE STUDY

The aims of this study are to point out the benefit of computer to materials management practice. It seeks to x-ray the various aspect of materials that had been employed in the past, what is obtainable now and what the future practices look like.

1.5     THE SCOPE OF THE STUDY

The study shall confine only to material management system (a case study of ELEME PETROCHEMICALS COMPANY LIMITED-EPCL). The confinement has its justifications to the act that the noble profession has their specific kind of service they render. The work place emphasis on the benefits of a computerized materials management system.

1.6     THE DEFINITIONS OF TERM

COMPUTER: An electronic machine capable of taking in raw data, process it and gives out result.

DATA: Is the name given to basic facts.

INFORMATION: Is data that have been converted into a more useful or intelligible form.

INPUT: This is what the computer accepts outside the system for processing.

STORAGE: This is the part of the computer that holds data internally before, during and after processing.

HARDWARE: Is the general term used to described all the electronics and mechanical element of computer together with those devices used with the computer.

SOFTWARE: Is the general term used to describe all various programs that may be used on a computer system together with their associated documentation.

OUTPUT: This is the processed data produced by the computer that holds data internally before, during and after processing.

MATERIAL MANAGEMENT: Is a confederacy of traditional materials activities bound by a common idea.

PROCEDURE: Is a term originated by the armed force to define one of several supply function involved in logistics.

Inventory Control: Is a vital element in the management of material.

RECEIVING: Is the official incoming point of the materials and it is an important control point in the materials management system.

WAREHOUSE: Is the unit that holds material from the time they are received until user withdraws them.

PRESERVATION: This unit is change with the responsibility of protecting the materials stored in the warehouse against any physical contaminating agent.

MATERIALS Handling: Is the movement of materials inside the plant or warehouse or is concerned with all aspects of the flow of materials within an organization.