The role of materials management in the financial performance of a manufacturing organization
Case study: East African Breweries Limited
SUBMITTED BY: SAMUEL KISUKI Jr
REGISTRATION NUMBER: 2012-M101-10005
A research Proposal submitted to the Faculty of Business Administration and Management
April 2013
Supervisor: Mrs. Lillian Walusimbi
CHAPTER ONE: INTRODUCTION 1.1 INTRODUCTION
In this chapter, the researcher will talk about the background to the study, statement of the problem that reflects the case study, hypothesis clearly stating in summary what the research hopes to achieve, scope and justification of the study, conceptual framework and definition of terms and concepts. 1.2 BACKGROUND OF THE STUDY
Arnold, Chapman and Clive (2008) define materials Management as planning and controlling the flow of materials through the manufacturing process. They add that this is mainly done through production planning, implementation and control, as well as Inventory Management where raw materials are kept for production and finished goods are kept for dispatch to selling centers. In simple terms, materials management refers to all efforts to get the right quality and quantity of materials supply at the right time and place for the right cost. This applies to materials supplies into, within and out of the organisation.
Availability of materials is a key component for manufacturing firms because they need a constant flow of raw materials to produce finished goods and also need to have a steady flow of the finished goods available to their consumers. Materials management activities in an organization are aimed at providing a buffer against the differences in demand rates and production rates at all times.
The manufacturing industry in Uganda is still small and most consumer products are just imported as finished goods. However, this sector is growing at a very fast rate and has seen several manufacturers setting up shop in recent