1.1 BACKGROUND OF THE STUDY
Material Management: The manufacturing sector plays on important role in Nigeria economy and has many benefits that are crucial for her economic transformation, in a typical advanced economy the manufacturing sector is a loading. If not the only leading sector in many aspects it is an avenue for increasing productivity related to import replacement and export expensive creating foreign exchange earning capacity? Raising employment and per capital income which result in unique consumption pattern. Before independence agricultural production dominated the Nigeria economy and acquainted for the major share of its foreign exchange earning, initially, inadequate capital investment permitted only modest expansion of manufacturing activities. Early effort in the manufacturing sector were oriented towards the adoption of an import substitution strategy in which light industry and assembly related manufacturing ventures were embarked upon by the former trading companies, The structured adjustment program(SAP)OF 1986 was partly designed to revitalize the manufacturing sector of the economy by shifting emphasis from sourcing through monetary and economic policies. Deregulation of the foreign exchange market was also effect to make non-oil exports more competitive. Although, this equally result in massive escalation of input cost. The over all fading and the simple truth is that the Nigeria economy is still in the woods the business environment is particularly hostile productivity putting into consideration the past decade and even the present one, would see that the economic variables of the external business environment which are uncontrollable in nature has had negative effective on production activities. Therefore, for a business to survive remain profitable and enhance it production activities. it must adopt strategic aimed at effective and efficient management of its resources to kept it on course. These resources are mainly human and materials, but for the purpose of this project we are concerned with the raw materials varies from the initials sourcing to the final utilization in order to get the final goods. Material management is the act of coordinating all material resources available within the organization in the most economic way that guarantee the right quality so as to make goods available costumers as at when needed in an attempt to a achieve the overall broad objectives of the organization the management these material aims at making optimum use of them by ensuring availability of material needed at the right time and place the price quantity, quality, time and source already mentioned environment of the belonging to the internal environment of the business that can be managed with proper of the business that can be managed with proper plans put in price never the less they greater challenge facing a business as it effects material management in production as it effects material management in production deal with the incontrollable variable of the external environment which need to be efficiently manipulated, particularly in a battered economy like ours.
1.2 STATEMENT OF THE PROBLEM
The importance of the subject material management cannot be our emphasized in manufacturing company today. A failure to take cognacs of it has resulted in the winding up of so many companies to in recent time because if proper management of material was not done this would lead to typing down of capital, break down in production activities, reduced sales and profit, increase waste and scrap loss of customers, to competitors and eventually fall in our foreign exchange earning. Since this problem is true of many manufacturing companies in one economy question that comes to monad are;
How far material management has on the employees company and their output? What effect has materials management had in solving organization problem? 3. What are the cost techniques organization employ in the management of materials?
4. How manufacturing companies in Nigeria have been coping with the limited sources of raw materials?