ASSESSMENT OF MATERIAL MANAGEMENT PRACTICE IN

SHEWAROBIT PRIMARY SCHOOL

A RESEARCH PROPOSAL SUBMITTED TO COLLEGE OF BUSINESS AND

ECONOMICS, DEPARTMENT OF MANAGMENT FOR THE PARTIAL
FULFILLMENT OF BA DEGREE IN MANAGMENT

BY: TIBEBU WONDESEN

ID,NO,WDMAN/A969/12
ADVISOR: ABIYOT

June, 2023
SHEWAROBIT, ETHIOPIA

1
 ACKNOWLEDGMENT

First and for most my thanks goes to almighty God and His Holy mother St, Mary’s without
them I could never been what I am today.

Next my greatest acknowledgement to my advisor (MBA) for his constructive advices and
comment.

I would like to express my deepest gratitude for my lovely mother. I would like to thank my
secretary surafel getaw who received the burden of writing the proposal final works.

Finally, I would like to thank those employees of shewarobit primary school and directors yared
Solomon

I
 ABSTRACT

The research will conduct on Addis Ababa town to deal the assessing practice of material
management in the case of shewarobit primary school with different functions. The main
objective to assess the existing practices of materials management in shewarobit primary school.
To meet this objective the necessary primary data will conduct by distribute questionnaires using
samples respondents. This is a quantitative study a questionnaire will use to assess the material
management practices to provide service and support to operate functions by making available
and an interrupted flow of materials. Finally, after analysis conclusions, suggestion, ideas,
feedbacks will state as a recommendation.

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Table of Contents
ACKNOWLEDGMENT................................................................................................................................I
ABSTRACT..................................................................................................................................................II
CHAPTER ONE..........................................................................................................................................5
INTRODUCTION.......................................................................................................................................5
1.1 Background of the Study...................................................................................................................5
1.2. background of the organization........................................................................................................6
1.3 . Statement of the Problem...........................................................................................................7
1.3 Objective of the Study.......................................................................................................................7
1.3.1 General objective........................................................................................................................7
1.3.2 Specific objective........................................................................................................................7
1.4. Significance of the Study..................................................................................................................7
1.5. Scope of the study.............................................................................................................................8
1.6. Limitation of the study......................................................................................................................8
CHAPTER TWO.........................................................................................................................................8
REVIEW OF RELATED LITERATURE...................................................................................................8
2.1 Definition and Scope of Material Management as Integrated Approach............................................8
2.2. Scope of Material Management......................................................................................................10
2.3 Objectives and Function of material Management...........................................................................10
2.4 Purchasing.......................................................................................................................................11
2.5 Ware housing...................................................................................................................................11
2.6 The Inventory Control System.........................................................................................................12
CHAPTER THREE...................................................................................................................................13
THE RESEARCH METHODOLOGY......................................................................................................13
3.1. Research Design.............................................................................................................................13
3.2. Sources of Data...............................................................................................................................13
3.3. Method of Data Collection.............................................................................................................13
3.4. Target population............................................................................................................................13
3.5. Data Analysis..................................................................................................................................14
1.5. Time and Budget Schedule.............................................................................................................15
3.5.1. Time Schedule..........................................................................................................................15
1.5.1. Budget Schedule................................................................................................................16

III
Reference...............................................................................................................................................17
Appendix A...........................................................................................................................................18
Appendix B...........................................................................................................................................20

IV
 CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
The evaluation or history of material management starts with the United States and World Wars
before 1st World War were unaware about the important of material management. Sensory
control and supply chain management. The concept material management was strength with the
research paper published by Harvard University. The need of material management birth to the
entirely new approach and idea in the management field. That is material management extensive
studies in the industrial purchasing practices by (Prof. Howard and Lewis 2003)
Material management as discipline ware rather slow to evolve as compared to production and
marketing material control is an important parts of material management for all organization that
carries different material function. (Dressler, 2001)

Material management is an organizational activity that design to enhance and keep the control of
material function as purchasing, storing and also control the movement and the flow of material
in an organization. In order to get competitive advantage and creating the different types of
utility to the organization and to the costumer respectively. (Datta, 2004)

The main objective of material management is how to property utility and maintain of different
types of material. In addition to this it is among at control the material effectively and efficiently
to contribute the organizational goal. To achieve goal the organization can use different
mechanism of controlling inventory it includes purchasing, storing and disposing. (Datta 2004).

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1.2. Background of the organization

Material management in the 21century they have been the center for information that will rise in
economic environment and recently management intelligence will be required to give the most
effective use of the total resources that of the organization have the application of management
intelligence have a great important for the organization material. (Datta 2004)

(Gopalakrishnan and sundarson,2000) noted that integrated material management usually enjoys
the advantages ,clear cut accountability is established and better coordination or relationship
between the user and management department and better performance. The importance of
material management arises mainly from the cost of material. In order to reduce the cost burden,
public institutions have begin to realize its importance. By reducing cost and eliminating waste.
It could be possible to raise over all productivity. (Gpalarkishan and Sudarosn 2000:6)

The material management inspection report,(2005) state that ,there are problems that face in the
organization. The first problem is how we are going to manage material, purchasing performance
are the second problems. This department may focus on how to minimize cost of material,
transportation, carrying cost and other. The third problem is warehousing how to store material
where and when materials are needed. The last one is disposal. This the stated problem is in the
current year and before that are the performances is evaluated by the organization. The
researcher only focused on those problems and solve. So the importance is to see the problem
and how to the resource in order to achieve the organization objectives. This research was
studied along period of time by other researcher. There is a time gap, technological change and
human attitude regarding to material management. But the problem is not solve still now
therefore, the researcher interested to conduct the selected title to solve the problem related with
the practice of material management. Particularly in the area of purchasing, warehousing and
disposal.

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1.3 . Statement of the Problem

Based on the statement the problem research will attempt to answer the following questions.

 What are the problems faced the shewarobit primary school in the purchasing principles,
procedures and practices?
 What are the existing hindering factor of shewarobit primary school receive store issue
materials?
 What systems the organization used to handle material management?
 When and where the materials dispose the materials are spoilage?

1.3 Objective of the Study

1.3.1 General objective

The general objective of this study is to assess the existing practices of materials management in
shewarobit primary school.

1.3.2 Specific objective

The following are the specific objective of the study

 To examine the problem faced shewarobit primary school in the purchasing

principles procedures and practices.
 To evaluate the existing hindering factor of shewarobit primary school receive store
issue materials.
 To explore the major systems that is used to handle material management.
 To evaluate when and where the materials dispose that are spoilage.

1.4. Significance of the Study

This paper will be able to the society and organization to have a good relationship by disposing
the material in appropriate place item. This implies an available material to use for recycling
purpose or to sale it; in order to improving or protecting the environment it helps manager of
various departments realize the weaknesses and put appropriate strategies to solve the problem.
This paper may use for the base of other researcher to conduct further studies in the future.

1.5. Scope of the study

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The study focused on the material management practices of shewarobit primary school specially
it is scoped to examine practices related with purchasing warehousing and disposing since the
relative performance of those activity have implication towards the success of the school.

1.6. Limitation of the study

In conducting this research the researcher was faced the following limitation. Those are:

 Job stress of employees this contributes some employee cannot explain their ideas
 Some questions are not filed as expected by researcher.
 The unavailability of secondary data in the organization.

CHAPTER TWO

REVIEW OF RELATED LITERATURE

This chapter aims that exploring the practice, principle and problems of material management
that are common experienced by many organizations. It does not address all areas of material
management. It focus only concept or definition, an integrated functional approach usually
enjoy the advantage of better accountability coordination’s and performance concepts as well
as material management functions such as purchasing ware housing and disposal.

2.1 Definition and Scope of Material Management as Integrated Approach

What is materials management?

Different scholar have defined material management in says

Definition of material management

The term material may be defined as “anything that can be stored, stacked or stockpiled” it
refers to all that are used commodity in the cause of production (Arora, 2003:3).

Material management is the coordination functions responsible for the planning source sing,
making purchasing of materials in an optimal manner so as to provide pre determine service
to customer at minimum cost on other hand, inventory is the stock on hand of materials at a

8
given time and it is a tangible asset which can be seen, measured and countered. It refers to
material held in an idle or incomplete state waiting future sale use or transformation.

Material manage can also be defined as a body if knowledge which helps the manger to
improve the productivity of capital by reducing material cost preventing large amount of
capital being locked up for long period and improving the capital turnover ratio. It must
derive its same time looking in to consideration the human factor, their attitude sense and
approach to new ideas (Harold; 2007: 2-4).

Material management as the function responsible for the coordination of planning sunray
purchasing moving storing and controlling material in an optimum manner so as to provide
approval. Decided service to the customer at a minim cost (Gopalakishnan, 2003: 5).

The international federation of purchasing and materials management as accepts the definition
of material management as is a total concept having definite organization to plan and control
all types of materials. Its supply and flow from row stage to finished stage so as to deliver the
produce to customer as per his requirements in time. This involves materials, planning,
purchasing receiving storing, inventory control, scheduling, production physical distribution
and marketing material management is a part of business logistics and refers to overseeing the
location and movement of physical item or product. There are three main elements associated
with such management, spare parts quality, and control inventory management. Material
management is important in large manufacturing and distribution environment such as where
house, where there are multiple parts, location and significant many invested in those items
(William J. Steveson 2007: 115).

(Harold, 2003: 9 and 2004: 9) also defined materials management as the process of
management, which coordinator, supervises and exacter the tasks associated with the flow of
materials to, though and out of an organization in integrated fashion.

Material management is the integrated function of purchasing and allied activities so as to

achieve the maximum co-ordination and optimum or at minimum cost in the area of material.

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Material management is a process of arraigning material for the task associated with
production all over the organization in manner that the organization coordinated manner (Nair
1990).

(Harold, 2003:9 and 2004:9) also defined materials management as the process of
management, which coordinator, supervises and executer the tasks associated with the flow of
materials to, though and out of an organization in integrated fashion.

2.2. Scope of Material Management

Material management covers all aspects of materials, costs, material supply and utilization. It
covers the whole or range of functions involved in converting raw materials and ancillary
supplier into finished products and also cover the aspect of individuals management which
concerned with the activities involved in the acquisition, storage, and flow of all material
directly and indirectly employed in the production and marketing of finished goods (Jacobs,
2004: 20).

2.3 Objectives and Function of material Management

(Jacobs and Chase 2004:3) indicated that it must be remembered that materials management is
large a staff function, which must give supportive service to the production, as a whole
generating. The basic objectives of total organization include profit maximization for several
and growth, maximization of customer service technological innovation to overcome
resistance to growth and competition good employer employee relations and other social
objective.

The objective and functions of material management can be categorized in two ways as
follow.

Primary Objective: which can be classified as efficient material planning. Buying and
purchasing, storing or purchasing, procuring and receiving, storing and inventory control and
quality assurance.

Secondary Objective: efficient production scheduling, to take make or buy decisions, prepare
specification and standardization of material, material handling, quality control of material.

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2.4 Purchasing
Purchasing: (James and Evans 2007: 26-29) defined as the process of buying the material and
resoles needed to create products and services. Any purchasing activity starts with the
recognition of a need the function of purchasing. The requisition of material is necessary
proper authority to initiate its purchase.

To select proper supplier for the materials requested before planning an order. To negotiate
about the price of the material from the supplier and it well be purchased at the cheapest price.
The quality of material must be assured and should not be compromised with the cost of the
material. The material should be purchased of right quantity and right quality at proper time at
the cheapest cost.

Materials Requirement Planning (MRP)

The Materials Requirement Planning (MRP) is technique used to plan the material starting
from the row materials finished, parts components, sub assemblies and assemblies are per Bill
of Materials (BoM) to procure or produce them to support aim aster production schedule
Materials Requirement Planning MPR it is used on computer productive by any company that
uses a Materials Requirement Planning MPR to manufacture product that require assemblies
components and materials to produce the final products.

Inventory planning is that the materials should be purchased and brought in the stores just
before it enters the production or sold out so that inventory cost is negligible. There are three
types of inventories law raw materials, purchased goods, finished parts and components.

2.5 Ware housing

(Gopalakrisham, 2003: 114) noted the stores function should be organized as follower to
receive raw materials components equipments etc to meet the demand of users department by
issuing the same account the transaction correctly minimize obsolescence surplus and scrap
by proper identification and using correct preservation methods and ensure good

11
housekeeping, comprising receipt issuer, handling and storage the concept store is money
should be understood by everyone in the organization.

Benefits of the integrated system approach

(Gopalakrisham and Sundarsan, 2003: 3-4) noticed in many organization any analysis of the
financial statement of a large number private and section organizations indicates the material
account for nearly 60% of the total expenditure. The integrated material management usually
enjoys the following advantage. Better accountability, better coordination and better
performance.

2.6 The Inventory Control System

According to AK data (2004) there are two basic inventory control system

1. Periodic review system and

2. Fixed order quantity system

1. Periodic Review System

This is a time bound system when requires the periodic review of the stock amount level
of all times here periodic of review is fixed as one time set by the company.

2. Fixed order Quality System

Under this system the quantity that will order is constant but time gap or the lead time is
varied. This system recognizes the fact that each item is the inventory process its own
unique characteristics and optimum order quantity (Burt, 2002).

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 CHAPTER THREE
THE RESEARCH METHODOLOGY

3.1. Research Design

The research will use the descriptive design since the study will describe the phenomena as they
exist in addition to this the research will also use more of qualitative and quantitative forms. In
identify and receives information or data on the characteristics of a particular problem or idea
and it will be describe by the mention forms.

3.2. Sources of Data

The relevant data in order to fulfill the information need the research will aim at to obtain
information from primary and secondary sources of data. Primary data is the first hand and that
will be collect by the research him/her self directly and analyze by him/her self. The research
will able to get primary data from interview questioner observation on the other hand secondary
data will be gathered from other research work, magazine, organizational report, parches order.

3.3. Method of Data Collection

In the data collection process different data collection method will be used in the study. These
methods are according to the source of data that will be collect. To collect primary data the
research will use open-end and close-end questionnaires and structure interview will be use to
give flexibility for the interview. In addition to primary data there is a need for secondary data to
get additional information the research will use writ materials, reports purchase order and
financial statements of the organization.

3.4. Target population

The target population of the study will include all employees working in shewarobit primary
school material management department.

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3.5. Data Analysis

In the study process different types of raw data will be collect by using interview and
questionnaires. This raw data will be processes and analyze and then interpret. The collect data
will be edit, classify, examine and analyze by using tabulation, percentage (%). In order to show
the result at the study easily this will leads to conclusion and recommendation of the whole
study.

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1.5. Time and Budget Schedule
3.5.1. Time Schedule

No Activity May Jun Jul Aug

1 Topic selection
2 Preparation of proposal
3 Collection of useful material

4 Data collection
5 Data analysis and writing of final research

6 Submission of research
7 Presentation of final research

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 1.5.1. Budget Schedule

The study will contain the following different types of expenditures that will incur in the whole course of
research.

Item Quantity Per Unit (Birr) Total Cost(Birr)

Equipment Paper 1 PC 200 200

and
stationary Pen 6 5 30

Pencil 3 2 6

Binder 1 25 25

8GB Flash 1 200 200

Miscellaneous 130
Total cost - 591
Transportation - 100
Internet - 0.25 250
Printer 45 Page 2 80
Personal cost Typist 45 Pages 7 315
Total cost - 745
Contingency - 800

Over all total cost - 2,136

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Reference

1. A.K Datta (2004) Material Management Tata MC Graw Hill, New Delhi.
2. Arora, (2003) Material Management and Material management System, Mc Graw Hill,
New York.
3. Burtru (2002) Purchasing and Supply Management 6th edition. Mc Graw Hill New York.
4. Dressler G (2001) Material Management in the 21st Century West Publishing Company
New Delhi India.
5. Gopalakrushanan (2003) Purchasing and Material Management 7th edition.
6. Jacobs and Chase (2010) Predation and Operational Management 2nd edition.
7. Mari, N K (1990) Purchasing and Material Management Vipas pub. House New Delhi.
8. William J. Stevenson (2007 Practice of Material Management 2nd edition

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 Appendix A

Jigdan college

College of Business and Economics

Department of Management
‘A’ Questionnaire

Dear respondents this questionnaire is prepared to conduct a research on the assessment of material
management Practice in shewarobit primary school you are kindly requested to give the right answer the
best express your opinion.

Instruction

This questionnaire will be used only for academic purposes

No need of writing your name

Answer the question by putting mark in box

Part One: Personal information

1. Age 18-25year 26-50 year above 50 year

2. Gender Male Female
3. For how long you are serving this organization?
Below one year 1-5 year 5-20 years 20-40 year
4. Responsibility: HRM Purchasing and Financing Manager
Crime Prevention Crime and floristic investigation
5. Education level: below grade 8 grade 8-12 1 degree
Diploma masters
6. Position: director ass/director department store keeper other

Part 2: General Information

7. How do you evaluate the material management need and supply process in shewarobit primary
school?
Successful Some what successful Not successful

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 8. If your answer is not successful what do you thing that the reason?
Budget The problem of management
A lack of allocation material Government
9. Is any functional process challenge regarding warehousing your organization?
Yes Sometimes No
10. If your answer is ‘yes’ or sometimes list the challenge
______________________________________________________________________________
______________________________________________________________________________
11. Is there any disposal problem in relation to material management?

Yes Sometimes No

12. If your answer is ‘yes’ or No sometimes what do you thing that reason?
The purpose of recycling Protection of envelopment Nothing to do
13. What is the degree of the existing policy purchasing performance applied in your organization?
Very good Good I don’t know Bad Very bad

14. If your answer is bad/very dad list the reason

______________________________________________________________________________
______________________________________________________________________________
15. How do you evaluate the adequate of material management?
Very high High I don’t know Low Very low
16. Is there any clear rules and regulations for material management? Yes No
17. How do you evaluate the integration or coordination between or among related department with
the shewarobit primary school?
Very good Good Medium Bad Very bad
18. How could you describe the relationship between users of shewarobit primary school?
Very good Good Moderate Bad Very bad
19. If the material spoilage without a rational/reason able time, the management Take repair the
material? Yes No I don’t know
20. Is management and the store keeper responsible to check and administer the new purchasing
material? Yes No Sometimes
21. The purchasing performs is there corruption?

Yes No not known

22. If you have any further comment or suggestion regarding to material management in your
organization?
______________________________________________________________________________
______________________________________________________________________________

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 Appendix B

Jigdan college

College of Business and Economics

Department of Management

Interview questions
1. What do you suggest regarding the material management in your organization?
2. What is the problem faced in the purchasing?
3. Is the responsible body to take over the disposal of surplus obsolesce and scrape material?
4. How do you evaluate the adequate material management?

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