CHAPTER ONE
INTRODUCTION
The manufacturing sector plays an important role in the Nigeria economy and has benefits that are crucial for her economic transformation in a typical advanced economy, the manufacturing sector is leading, if not the only leading sector in many aspects .it is an avenue for increasing productivity related to import replacement and export expansion creating foreign exchange earnings capacity raising employment and per capital income which results in unique consumptions.
Before independence, agricultural production dominated the Nigeria economy and accounted for the share of its foreign exchange earning.
Initially, inadequate capital investment permitted only modest expansion of manufacturing activity ,early effort in the manufacturing sector were oriented towards the adoption of import substitution strategy in which light industry and assembly related manufacturing ventures were embarked upon by the formers trading companies.
The structural adjustment program (SAP) of 1986 was partly designed revitalize the manufacturing sector of the economy by shifting emphasis from sourcing for inputs from abroad to increase domestics sourcing through monetary and fiscal policies deregulation of the foreign exchange market was also effected to make non oil exports more competitive .although this equally resulted into massive escalation of input cost.
 The overall feeling and the simple truth is that Nigerian economy sis still in the woods, the business environment is particularly hostile to industrial harmony and higher 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 have had negative effect an production activities .
Therefore, for a business to survive, remain profitable and enhance its production activities it must adopt strategies aimed at effective and efficient management of its resources to keep it and course,
These resources are mainly human and material but for its purpose of this project we are concerned with the raw materials varying from the initial sourcing to the final utilization in order to get the final goods
Material management is the act of co-coordinating all material resources available within the organization in the most economic way that guarantees the right quality soas to make goods available to customers as when needed in an attempt to achieve the overall broad objectives of the organization optimum use of them by ensuring available of materials needed at the right price, quantity, quality, from right supplier and delivered at the right time and place.
 The price, quantity quality, time and sources already mentioned are controlled variable belonging to the internal environment of the business which can be managed with proper plans put in place.
Nevertheless, the greater challenge facing a business as it affects material management in production deals with the uncontrollable variable of the external environment which needs to be manipulated particularly in battered economy like ours.
1.1         STATEMENT OF THE STUDY
The subject of material management cannot be overemphasized in manufacturing companies today a failure to take cognizance of it has resulted in the winding up of so many company in present times because proper management of material was not done this has led to tying down of capital breakdown in production activities, reduced sales and profit, increase waste and scrap, loss of customers to competitors and even fall in our foreign exchange earnings.
Since this problem is true of many manufacturing companies in our economy, the question that came to mind which this project will highlights are:
1     How far has material management gone in solving organizational problem?
2     What effect does material management has on the employees, company and their output?
3     What are the costs, techniques organization employ to in the management of materials?
4     How many manufacturing companies in Nigeria have coping with the limited sources of raw materials.
1.2 OBJECTIVE OF THE STUDY
This study aims at under-listed objectives;
1     To examine how raw materials can be made available course of source from abroad.
2     To highlight strategies and sub-strategies that can be adopted in order to develop alternative mean of getting raw materials soas to guarantee availability as at when needed.
3     To identify the role of material control effective management of raw material such that can be procured and stored at an economic quantity that guarantees a fair price and sound quality
4     To take note, if any of the role of machine utilization in the management of raw material in order to reduce scrap rate