research study is based on variety reduction as a tool for effective material
control, a case study of Nigeria Bottling Company Plc. To understand the
research work better, efforts was made at the introductory stage to explain the
general importance of variety reduction with special consideration being placed
on company especially Nigeria Bottling Company Plc, Kaduna. Also the general problem was also
emphasized on such non recognition of the role of variety reduction on storage
of different articles that can serve the same purpose. Effort was also made to
identify the purpose of the study such as the degree of importance attached to
variety reduction, areas covered by variety reduction and its operational
activities. It also focused on its significance to the organization, the
academics, the populace and the researcher. Research question were also
generated to determine the importance the organization placed on variety
reduction and how variety reduction facilitate the organization operational
efficiency. The survey research design is employed; also simple random sampling
procedure was employed. The researcher used questionnaire and documentary
sources. The likert four rating scale technique is used to analyze the data,
findings made among which are, that the organization considered variety
reduction to facilitate the organizational efficiency and that the variety
reduction minimizes cost and avoid storing the same item that can serve the
same purpose in making material available in the store. However, the researcher
summarized and concluded the research study and made recommendations to the
company, amongst which are formulation of variety reduction policy to align
with the vision and mission of the organization, always employed a competent
hand to handle variety reduction activities, to strive as much as possible to
create a variety reduction unit to be controlled by a qualified store manager,
purchasing and supply officer and engineer.
Table of Contents
Chapter One: Introduction
of the Study 1
of the Problem 2
of the Study 3
of the Study 4
of the Study 5
of Terms 7
Chapter Two: Literature Review
Framework of Variety Reduction 9
of Variety Reduction 18
covered in Variety Reduction 19
for Variety Reduction 21
and Disadvantages of Variety Reduction 21
should the variety be controlled 24
does Variety Reduction tend to Increase 24
to Control Variety Reduction 25
Chapter Three: Research Methodology
of Study 27
of the Study 29
for Data Collection 29
for Data Collection 30
of the Instrument 30
for Analyzing Data 31
Chapter Four: Presentation and Analysis of Data
of Results 33
Chapter Five: Summary, Discussion, Conclusion and
of Procedure 43
of Finding 44
of Finding 46
for Further Study 49
CHAPTER I: Introduction
Background of the Study
Variety reduction can be applied to
any production process. The technique certainly has more effect if applied in
the right place and at the right time.
Apparently in many organization, it
is clearly to see organization be it manufacturing holding different number of
types, size or grade of a product that can perform the same function, this
means duplication of items, the cost of materials is the last remaining cost
that is truly variable, a reduction in the cost of material clearly offers on
usual opportunity for profit improvement, therefore the need for purchasing to
minimize waste and enhance maximum
services within the organization has resulted in the use of variety reduction. Variety
reduction can make a substantial savings in inventory by standardizing and rationalizing
the range of materials, parts and component kept in store. Variety reduction
can be achieved by using, so far as possible, standardized components and
sub assemblies to make end products that are dissimilar in appearance and
performance so that variety of final products uses only a few basic components,
variety reduction can also be applied when considering capital purchases, by ensuring
compatibility with existing machinery, the range of spares carried to ensure against
breakdowns can be substantially reduced also variety reduction can be
undertaken periodically to examine arrange of stock items to determine
the intended use for each item of stock,
how many stock item serve the same purpose, the extent to which items having
the same purpose can be gives a standard description, what range of sizes is
essential and lastly what items can be eliminated all these are done to ensure
effective material control. Therefore, variety reduction can be defined as “the
process of reducing the number of types, size or grades of a product that are
purchase made or stocked (Hassan 2008 p. 445).
Statement of Problems
Among the objectives of all private
sector is to maximize profit and reduce costs. These objectives can be achieved
in material control aspect of the organization by imploring a strategy that
will help or ensure that the number of types, sizes or grades of a product held
in the organization are not duplicated when purchased, this will help in
investing minimum cost on materials. But is quite unfortunate that these
objectives are rarely achieved as a result of non recognition of the role of
variety reduction in an organization as a tool for effective material control.
Variety reduction is the process used
to describe standardization and simplification where different items that are
capable of performing the same function are carried in large quantities,
variety reduction is required but hardly did any organization take cognizance
of this vital function as a tool for effective material control, as a result
many organizations continue to hold materials, parts, items that are similar
and capable of performing the same function this affect the material control
unit of the organization efficiency be holding excess stock.
Variety reduction helps to reduce the
number of varieties in the store, it also help to stipulate suitability of purpose,
reduce the stock held and its associated cost another importance of variety
reduction is to establish datum as a basis for development, but despite all
these importance of variety reduction to an organization the researcher observed
that most organization lost foresight of this important function that required
a proactive approach for better control of materials held in an organization.
Also variety reduction assist the
organization in avoiding buying different types of item that can serve the
purpose, quicker and effective stock taking, reduce obsolete, overhead cost, it
also facilitate easier inspection due to product uniformity and easier stock
control and less storage space required, in view of all these benefits of
variety reduction to an organization, the researcher observed that hardly can
any organization show a unit or professionals bestowed with the responsibility
of performing this vital function as a result many of these benefits are not
derived by organizations.
Objectives of the Study
The purpose of embarking on this
research work by the researcher is to determine the effect of variety reduction
on materials control.
Specifically, the research work is
determine the areas covered by variety reduction in an organization is, Nigeria
Bottling Company Plc Kaduna.
determine stages of variety reduction that can facilitate the organization’s
determine if the benefit of variety reduction can minimize cost in the
determine if the reasons for variety reduction can improve quality production
in the organization.
determine why variety reduction should be control through the
importance attached to variety reduction.
Significance of the Study
This study will bring to light the
effect of variety reduction on materials control in Nigeria Bottling Company Plc
The study will also be of great
benefit to potential investors, those in academics, other researcher in
business management fields and the entire populace.
The significance of the research work
to the organization is to provide them with relevant information on how
important variety reduction is in facilitating organizational efficiency,
productivity and materials control and also to change their orientation in
terms of how best to manage, maintain and handle their material or inventory
level and this will also be applicable to other industries that is into
The study will also be of immense
benefit to the potential investors, in the sense that it will provide them with
freehand information on how important variety reduction is in promoting
material flow. In the academics, the research work can stand as a study
material and reference book they can consult to broaden their knowledge on what
it meant by variety reduction.
The research work will also serve as
a reference book to the other researcher on this type of project topic. To the
entire populace, come across this research work, the research work will provide
them with the knowledge on how important variety reduction is to an
organization and it will also add value to their knowledge.
The research work is embarked on by
the researcher to broaden and ad value to his knowledge on variety reduction on
Lastly, the research work is also a
requirement in fulfillment for the award of Higher National Diploma in
Purchasing and Supply Department of Kaduna Polytechnic.
Scope of the Study
This research work is based on
variety reduction as a tool for effective material control. A case study of
Nigeria Bottling Company Plc Kaduna plant which is situated at Kaduna South
industrial layout Kaduna, Kaduna State.
The researcher intends to examine the
extent to which variety reduction techniques if applicable may lead to
effective material controls in the organization.
The findings of this research work
will primarily base on the data collected from the staff of the plant draw from
the stores, design, production, suppliers and purchasing and supply personnel
of Nigeria Bottling Company Plc Kaduna Plant.
This study will attempt to provide
answers to the following research questions:
are the areas covered by variety reduction?
what extent the stages of variety
reduction facilitate the organization operational efficiency?
the benefit of variety reduction does minimizes cost in the organization?
do reasons for variety reduction improve quality production in the
importance does the organization attach to variety reduction?
Definition of Terms
Material Control: Is a key activity which covers a wide range of different tasks from the
moment the product is designed up to and including its final delivery.
Standardization: Is a process of reducing the number of varieties stocked to a controlled
Is the elimination of all labour and materials that are absolutely essentials
so that more effective production can be carried out.
the excess over the normal holding of stock.
Surplus Materials: Having more than what is required or necessary.
Variety Reduction: Is the process of reducing the number of types, size or grades of a
product that are purchased, made or stocked.
Store: Is a
place where goods are kept upon onward delivery.
Those that supply or makes material available to an organization when needed
and when required.
Value: Is the
cost from which the function of a product or service may be obtained or
accomplished at a form or place with the require quality.
Value Engineering: This is simply the application of value technique to a ‘new’ product,
process, components and system, commencing with the conceptual design or
prototype stage of the product.
Is a tool or technique for identifying unnecessary cost factors with a view to
eliminating or reducing them.
Cost: What it
takes to make or buy a certain material or product.
Is the process of dividing work into convenient tasks or duties, by creating
and maintaining like-groups to achieve specific objectives.
human resources and labour relations function.
The buying of required equipment, materials and services.