 ARBA MINCH UNIVERSITY

 COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION

 DEPARTMENT OF MANAGEMENT
A RESEARCH SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR BACHELOR OF ARTS DEGREE IN

MANAGEMENT
 ASSESSMENT OF MATERIAL MANAGEMENT PRACTICE
 IN THE CASE OF ARBA MINCH UNIVERSITY SAWLA CAMPUS
PREPARED BY:
Dereje Negesse
ID No: EVBE/334/13
 ADVISOR: Nigusu M. (MBA)
APRIL, 2025
 SAWLA, ETHIOPIA
DECLARATION
I would like to declare that study entitled “assessment of material
management practice (in the case of Arba Minch University Sawla
Campus) is my original work and no part of the paper has been
copied and plagiarized as copyright. Accordingly, the study would
be believed that is fulfilled the requirement of the universities as
award of bachelor Degree for its graduating students. Thus, this
study was approved by the following boards.
 Name Signature Date
 Dereje Negesse ______________________
_______________________
 APPROVAL SHEET

 ARBA MINCH UNIVERSITY

SCHOOL OF UNDER GRADUATE STUDIES
 ADVISORS’ RESEARCH SUBMISSION
APPROVAL SHEET
This is to certify that the research entitled ““assessment of material
management practice (in the case of Arba Minch University Sawla
Campus)” submitted in partial fulfillment of the requirement for the
bachelor degree of management and has been carried out by Dereje
Negesse
 Continued…..

Id No: EVBE/334/13, under my supervision. Therefore, I

recommend that the student has fulfilled the requirements and
hence can submit the research to the department for defense.


 APPROVED BY:
Name of Principal advisor Signature
Date
NigusuM. (MBA) _________________
_____________________
 ARBA MINCH UNIVERSITY
 SCHOOL OF UNDER GRADUATE STUDIES
 EXAMINERS’ APPROVAL SHEET
We, the undersigned, members of the Board of Examiners
of the final open defense by Dereje Negesse have read and
evaluated his research entitled “assessment of material
management practice (in the case of Arba Minch University
Sawla Campus)” and examined the candidates by see
research paper and oral presentation.
 Continued….
This is, therefore, to certify that the research has been
accepted in partial fulfillment of the requirement for the
bachelor’s degree.
Examiner Signature
Date
___________________ __________________
__________________
Chairperson

__________________ ___________________
___________________
 ACKOWLEDGMENT

I would like to thank the almighty and benevolent God that

let me stay in life with a proper health and that give as
limitless aid, costless support, allowance and kindness that
provided me engine force and strength to pass all the
challenges in each of the senior essay hopefully to end up the
work on the allocated time successfully.
Secondly, my special appreciation and thanks is highly
indebted to my advisor Mr. Nigusu M. (MBA.).
 Continued….

for his willingness and unreserved comment, evaluation and

advice from the beginning up to the end of the study.
Without his encouragement, insight, guidance and
professional expertise in each phase of the senior essay, the
completion of this work would not have been possible.
 Continued……

More over my thanks goes to all respondents Arba Minch

University Sawla Campus Human Resources and other staffs of the
study for that they fill my questioners with necessary information
attentively and returned it on time.

I also highly indebted my families for their moral and financial

supports to finish my research work. And for love, encouragement
and patience without any limit at any time which have contributed a
lot to the successful completion of this study, in particular and to our
life in general
ACRONYMS

 AMUSC Arba Minch University Sawla

Campus
 HR Human Resource
Contents
DECLARATIONI

ACKOWLEDGMENTIV

ACRONYMSV

AbstractIX

CHAPTER ONE: INTRODUCTION1

 1.1 Back ground of the study1

 1.2 Statement of the problem3

 1.3 Basic research question4

 1.4 Objective of the Study4

 1.4.1 General objective of the study4

 1.4.2 Specific objective of the study4

 1.5 Significance of the study4

 1.6 Scope and Limitation of the study4

 1.8 Organization of the paper5

10
CHAPTER TWO: LITERATURE REVIEW
2.1 Definition and Concept of Material Management6
2.2 Management Function6
2.3 Objectives of Materials Management7
 2.3.1Components of Material Management are:8
2.4 Materials Management Processes8
 2.4.1 Planning8
 2.4.2 Material Schedule9
 2.4.3 Ordering Planning10
 2.4.4 Storage Planning10
 2.4.5 Transportation Planning
 Continued……
 2.5 Procurement11
 2.5.1 Purchasing Methods12

 2.5.3 Purchasing Departments13

 2.5.4 Purchasing Procedures and Documentation13

 2.5.5 Ordering14

 2.5.6 Purchasing Records14

 2.5.7 Logistics15

 2.6 Material Control15

 2.6.1 Stock Control Technique16

 2.6.2 Reason for Holding Stock16

 2.7 Materials Management Problems17

 2.7.1 Factors Affecting Materials Management18

 2.7.2 Approaches to Addressing Problems18

 2.8 Benefits Gained In Good Materials Management19

 2.9 Conceptual frame work of the research20


 CHAPTER THREE: RESEARCH METHODOL
OGY

3.1 Description of the Study Area22
 3.2 Data Type, Source and Method of Data Collection22
 3.3 Target population22
 3.4 Sample Size and Sampling Techniques23
 3.5 Method of Data Analysis23
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS24
 4.1 Introduction24
 4.2 General Information of respondentsError! Bookmark not defined.
 4.2.1Demographic distribution of the respondentsError
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 4.2.2 Importance of PromotionError
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.
 4.2.3 Analysis of InterviewError! Bookmark not defined.
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RE
COMMENDATIONS
Error! Bookmark not defined.
5.1 Summary
Error! Bookmark not defined.
5.2 Conclusions
Error! Bookmark not defined.
5.3 Recommendation Error
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References Error! Bookmark not defined.
Appendix Error! Bookmark not defined
 List of Tables
Table 4.1: Demographic information of the
respondents………………………………24
Table 4.2: Questioner analysis related with
purchasing……………………………..…25
Table4.3: Questioner analysis related with inventory
management and storage…….…26
Table 4.4: Questioner analysis related with material demand
forecasting.................…...28
Table4.5: Questioner analysis related with disposal
management………………………30
 Abstract
Material management is the systematic process of planning,
organizing, coordinating, and controlling the flow of goods
and materials from their point of origin to their final
destination. It involves ensuring the right quality and quantity
of materials is available at the right place, at the right time,
and at the right cost.
 Continued….
The primary objective of this study is to assess the current
material management practices at Arba Minch University,
Sawla Campus. The study was undertaken not only to
evaluate the institution's material management systems but
also to provide practical insights that would enhance the
researcher's understanding of real-world applications and
improve professional knowledge in the field.
 Continued…..

To achieve this objective, both

qualitative and quantitative research
designs were employed. Data was
collected using primary and secondary
sources, with primary data gathered
through structured questionnaires. .
Continued…..
 Due to the small number of relevant
respondents, a census sampling technique
was used to ensure that all available
participants were included in the study. The
collected data was analyzed using
descriptive statistical methods
 Continued…….

The findings of the study revealed several significant

challenges affecting material management at the campus.
These include: Inefficient procurement procedures,
Inadequate inventory control systems, poorly maintained
storage facilities, Lack of skilled and trained personnel.
 continued
 These issues have resulted in frequent
stock-outs, material wastage, and
delays in service delivery, ultimately
impeding the institution’s ability to
manage its resources effectively.
 Continued….
Moreover, the study identified the absence of a well-
integrated material management system as a critical gap in
the university’s operational framework. Based on the
findings, the researcher recommends that the purchasing unit
remain flexible and responsive to market fluctuations in
price and availability.
 Continued…….
Adaptive procurement strategies will help the institution minimize cost
overruns and mitigate supply disruptions. Additionally, improvements in
staff training, inventory control mechanisms, and storage infrastructure
are necessary to enhance overall material management efficiency. In
conclusion, the researcher underscores the importance of implementing
strategic reforms to improve material management practices at Arba
Minch University, Sawla Campus, to ensure better resource utilization,
cost-effectiveness, and timely service delivery.
Keywords: Assessment, Material, Management, Practice, Sawla
Campus, Ethiopia.
CHAPTER ONE: INTRODUCTION
1. Back ground of the study

Materials management can be defined as a process that

coordinates planning, assessing the requirement, sourcing,
purchasing, transporting, storing and controlling of
materials, minimizing the wastage and optimizing the
profitability by reducing cost of material (Baldva,1997)
Materials management is defined as the process to provide
right material at the right place at the right time in the right
quantity to minimize the cost of the project .
 Continued…
Materials management is concerned with the planning,
identification, procuring, storage, receiving and distribution of
material (Pataskar,2013)
Material is the basic resource for the operation of any
organization. Accordingly, it should be managed in efficient
and effective manner. Material is the term to describe the
grouping of management function related to the complete cycle
material which flows from the purchasing and internal control
of production (Sharma, 2006).
 Continued…..
Material management practice is the process of planning,
coordinating, organizing and controlling the flow of goods from
one place to another place. Material management practice is the
activity that applies to get right quality, right quantity at right
place and time with the right price. Material management
practice can include purchasing Inventory controlling, goods
transportation, ware house, material handling and the like
Management is simply a balancing act: the objective of
management is too able the delivery of activity (.Belington,
1995).
 Continued….
Most of the time material management practice installed in manufacturing,
firm and every other considered small. The modern concept of material
management practice is now widely acclaimed in forward thinking,
productive industry in this country, But if we are to become really effective
-against giant competitors for our share of world trade then companies,
Large, medium who have not yet begun to consider (Sharma; 2006).

While Eduardo (2002) viewed materials management as the system for

planning and controlling all of the efforts necessary to ensure that the
correct quality and quantity of materials are properly specified in a timely
manner, are obtained at a reasonable cost and most importantly are available
at the point of use when required.
 Continued…….
Materials management functions include planning and taking off materials,
vendor evaluation and selection, purchasing, expenditure, shipping, material
receiving, warehousing and inventory, and material distribution (Narimah 2011).
Almost 60% of the total working capital of any industrial organization consists of
materials costs. Materials management can only produce what it should with the
right quantities of the right material at the right time.

Petra (2013) observed that successful materials management requires the

participation of all persons involved in a construction process. Materials may
deteriorate during storage or get stolen unless special care is taken. Delays and
extra expenses may be incurred if materials required for particular activities are
unavailable.
 Continued…
Ensuring a timely flow of materials is an important concern of
materials management. Lan (2008), opined that the rate at which
materials have been squandered on site due to poor management is
getting too rampant in our society.
Thus, any improper handling and managing of materials will cause a
huge effect on the total project cost, time and quality. There is a need
to explore on the area of materials management, the issues relating to
materials management problems. The aim of this study is therefore to
assessment of material management practice in the study area.
 Statement of the problem
The goal of material management is to ensure that the materials are available at their point of
use when needed hence, efficient procurement of material represents a key role in the successful
completion of the work. It is important for the contractor to consider that there may be
significant difference in the date that the material was requested or date when the purchase order
was made, and the time, at which the material will be delivered, thus materials management is a
key of project management ( Asmara ,2015).
Assessing the practice of material management in more advanced way is very necessary issue
and also it leads the organization to evaluate their performance. Material management practice is
very essential for today’s competitive economic development and it play’s significant role in
profitability of business, this enables the business to gain competitive advantage over another. It
tells us all merchandizing and manufacturing firms should use material management practice and
the largest investment material management must take us interested to the accomplishment of the
organization achievements.
.
 Continued……

So, the problems that I observed in this university are, as a general there is a
difficulty in managing materials through applying all elements that needed to
consider when materials are managed. The other problems I observed are
misappropriation and miss location of materials, shortage enough space to store
the materials, problems in disposing materials which are outdated or which need
further recycling, price mismatch on the paper and in the real world, lack of
personnel which fit the position, lack of enough personnel on disposal activity.

 In relation with this issue I are tried to assess how material management are
effective in this organization and also I tried to investigate the practice of material
management in the organization. In most organization there is some difficulty in,
purchasing, inventory management and storage, material demand forecasting, and
disposal management. Therefore, to address the above problems the following
research questions are developed
 Basic research question
The above stated problems were leading the researcher to raise the following main research questions
to conduct the study:

 What are the practices of materials management in the study area?

 What are the factors determining materials management practice in the study area?

 What are the measures to be put in place to ensure effective materials management?

1. Objective of the Study

1. General objective of the study

The general objective of the study was an assessment of material management practice in the case of
Arba Minch University Sawla Campus

1. Specific objective of the study

The specific objectives of the study are:

 To describe how practices of materials management in the study area
 To explain the factors determining materials management practice in the study area
 To identify the measurement to be put in place to ensure effective materials management
 Significance of the study

The significance of the study is to assess the material management practice in the study
area and it helps to the following important things to the organizational achievements.

This research it helpful for HR department of the AMUSC to reduce the problem related to
material management practice and it provide to improve the way it minimize the cost of
material input moreover to enhance fully utilized resources. This study provide to the
material management practice of the AMUSC and the basis for monitoring and evaluation as
well as functional planning formulation towards the campus human resource management
practice. It will provide certain direction for future researchers and a stepping stone for
those researchers who want to make further study on the area.
 Scope and Limitation of the study
 The study was conducted in Arba Minch University
Sawla Campus. It was not included all campuses which
are located in other geographical location. And
theoretically the study was
limited to the frame works of material management like,
inventory management and storage, purchasing, material
demand forecasting, and removal/disposal management.
 Organization of the paper
This research organized in to five chapters. This first chapter
deals with the introduction part which includes background of the
study, statement of the problem, research question, objectives of
the study, limitation of the study, significance of the study, scope
of study and organization of the study. chapter two consists
literature review and related employees’ promotion policy and
impact on job satisfaction in the organization and chapter three
consists research methodology and chapter four also include data
presentation, analysis and interpretation, chapter five consists of
summary, conclusion and recommendation.
 CHAPTER TWO: LITERATURE REVIEW
 Definition and Concept of Material Management
The Webster's dictionary defines materials as "the elements, constituents,
or substances of which something is composed or can be made." Ballot
(1971) defines materials as the physical materials that are purchased and
used to produce the final product and does not suggest that materials are
the final product. In other words, materials are the parts used to produce
the final product.
 Chandler (1978) states that construction materials can be classified into
different categories depending on their fabrication and in the way that
they can be handled on site. He classifies the materials into five
categories.
 They are:
 Continued….
 Bulk materials:- these are materials that are delivered in mass and
are deposited in a container.
  Bagged materials:- these are materials delivered in bags for ease
of handling and controlled use.
  Palleted materials:- these are bagged materials that are placed in
pallets for delivery.
  Packaged materials:- these are materials that are packaged
together to prevent damage during transportation and deterioration
when they are stored
  Loose materials:- these are materials that are partially fabricated
and that should be handled individually.
Management Function
. For any kind of organization to run smoothly, it needs to
implement core management concepts. This necessitates that the
four management functions- planning, organizing, leading and
controlling be precisely understood. According to (Kondalkar,
2007), the following are the four types of management function
I. Planning
 Planning is the process used by managers to identify and select
appropriate goals and courses of action for an organization. There
are steps to good planning:
i. What goals should be pursued?
 i. How should the goals be attained?

ii. When resources should be allocated?

The planning function determines how effective and efficient the organization is and determines the strategy of the organization.

I. Organizing
In organizing, managers create the structure of working relationships between organizational members that best allows them to work
together and achieve goals. Managers will group people into departments according to the tasks performed. Managers will also lay out
lines of authority and responsibility for members. An organizational structure is the outcome of organizing. This structure coordinates and
motivates employees so that they work together to achieve goals.

I. Leading
 In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play
in attaining goals. Leadership involves a manager using power, influence, vision, persuasion, and communication skills. The outcome of
the leading function is a high level of motivation and commitment fromemployees to the organization.

I. Controlling
 In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached. Managers
will also take action to increase performance as required. The outcome of the controlling function is the accurate measurement of
performance and regulation of efficiency and effectiveness.

1. Objectives of Materials Management

According to Cavinato (1984) the objectives of a material management system should include lowest final cost, optimum quality,
assurance of supply, and lowest administrative costs. The materials manager should obtain the materials needed at the lowest cost
possible.
 According to Khyomesh and Chetna (2011), the objectives of materials management are Efficient materials planning;. Buying or
Purchasing; Procuring and receiving; Storing and
inventory control; Supply and distribution of materials; Quality assurance; Good supplier and customer
relationship; and Improved departmental efficiency.

To fulfill all these objectives, it is necessary to establish harmony and good co-ordination between all the employees
of material management department and this department should have good co-ordination with the other departments
of the organization to serve all production centers
1. Components of Material Management are:

I. Material estimation, budgeting, planning and programming.

II. Scheduling, purchasing and procurement.

III. Receiving and inspection

IV. Inventory control, storage and warehousing

V. Material handling and transport

VI. Waste management

1. Materials Management Processes

Materials management processes involve the planning, procurement, handling, stock and waste control, and logistics surrounding
materials on construction projects. A good materials management environment enables proper materials handling on construction sites. In
order to better understand materials management the following processes are discussed: planning, procurement, logistics, handling, stock
and waste control, storage of materials.
 1. Planning

The process of planning construction methods has been defined as "understanding what has
to be built, then establishing the right method, in the most economical way to meet the
client's requirements" (Illingworth, 1993). This is a detailed scheme for achieving an
objective for certain work tasks. In the case of materials, there is a need for an appropriate
planning, which must be done concurrently with engineering, construction, and other project
plans (Stukhart, 1995). He also mentioned, thus, material planning will provide guides for
all the Subsequent activities and can have a great impact on the project plan.
 The materials planning process covers setting up and maintaining the records of each
part used in each plant to determine target inventory levels, and delivery frequency
Payne, Cliclsoin, and Rcavill (2006).As a result, an excellent management of the
materials record will help the flow of
materials at the site in order to avoid several problems such as materials out of stock and materials that
have not been delivered.

Stukhart (1995) mentioned that material planning would provide guides to all the Subsequent activities
and that this could have a great impact on the project plan. The materials planning process covers the
set up and maintenance of records and determines the target inventory levels, and delivery frequency
Payne et al. (2006).

Planning of access and routing of materials within a construction site has an important implication for
the development of an effective materials management strategy (Faniran and Caban, (1998); Ogunlana,
Promkuntong, Jeark(1996) particularly in terms of increasing productivity and profit, and facilitating
the timely completion of construction projects (Wong and Norman, 1997).

The objective of efficient materials planning is, to increase productivity and profit of the company, and
facilitate the completion of construction projects (Wong and Norman, 1997). Thus, better planning of
raw materials on site can help to eliminate project delays and reduces activity times, resulting in better
service
 Material Schedule

Chandler (2008) said schedule is a list in a diagrammatic presentation indicating

requirement of resources. And aid used in the ordering of material is schedule. Materials
gratuity will be required to be taken off from the drawing and must show:-quantity
required to be fixed; waste allowed in the estimate; gratuity to be ordered; date of delivery;
cost includes in the estimate.

Paul (2007) said while construction scheduling is concerned with the regulation of the
flow of construction units through their preconceived plans of operations, material.
Scheduling involve the establishment of time tables for the ordering of all materials
requirement for maintaining the flow of materials must be schedule to coincide with the
flow of all construction of activities involved in the actual construction of each project .
 The schedule is usually produced by Quantity surveyor or by a material schedule e.t.c.
By systematic analysis to bills of quantity and contract drawing with specification,
schedule is the pre-requisite for the programming of the materials delivery and material
usage planning on the site. Material should never be ordered directly from the contract
bills, which are only intended as
a guide to the contractor pricing the contract. The estimate will produce
schedule of material for the buyer. The estimator will produce figure for
material to be delivered in bulk and those material that should be
imported.

The date of delivery guaranteed by the suppliers against each item can
be compared with the builders plan requirements. In those circumstances
changes in the specification with often enable the builder to order under
material that will available within the required period for delivery and
thereby avoid unnecessary delay in the future.
 1. Ordering Planning

Materials may be ordered for by the architect or the contractor. The supplier
dominated by the architect is called dominated supply. Whoever is making the
order should give fullest information as regard delivery debt, the hour during
which the material will be accepted on site and other general terms and
conditions such as liability for damage use, method of packing, size and weight
of the load that can be handle on site. Materials that are on long term delivery
should be placed on other as soon as the contract is sign so that material will
arrive at the reward time. In the short form programmed the quantity of material
required in the place and period of its use to be indicated.
 Storage Planning

Before the material ordered arrives adequate preparation should be pounded for storage and its handing storage
of nation and successful coordination are vital so as to prevent dissipation to site procedures and wastage to
material caused by disregard and disorganize operatives. Also good storage enhances proper management of
materials aid it minimizes concerned. The rate at which materials are being used and the working order should
provide a guide as to the quantity of materials to be ordered .
1. Transportation Planning


An efficient transportation of construction materials from storage to point of use reduces

project cost. Therefore proper transportation planning system should be planned, the

route and the best suited for the conveyance of each material should be used ford. And

all fragile material must be tired to the transporting plan to prevent breakage. In the finer

analysis, purchasing and trafficking have no logical alternative but walk together. Their

interest are so interrelated that the performance of one department significantly influence

use the degree of success attain by the

 Continued…
order if purchasing ignore the principle of good traffic management in its daily work. It
will in the long run inevitably pay excessive price for the transportation segment of the
material it brings (Lamer, 2007).
1. Procurement

The term procurement encompasses a wide range of activities that includes purchasing of
equipment, materials, labour and services required for construction and implementation of a
project (Barrie and Paulson, 2002). The objective of procurement in materials management
is to provide quality materials at the right time and place, and at an agreed budget.

Payne et al. (2006) stated that procurement is about organizing the purchasing of materials
and issuing delivery schedules to suppliers and following-up, to make sure that suppliers
deliver on time.
A failure in the purchasing process or in overseeing and organizing the buying functions as listed by Canter (2003)
could result in:
 Over-ordering of materials (wastage problems);

 Over-payments for materials (inadequate administration procedures);

 Loss of benefits (lack of skilled negotiating procedures);

 Lack of knowledge (when and where the best service/source might be available at any particular time).

In order to avoid failure, it is important to know how the typical purchasing procedure takes place, and this is illustrated
in Figure 2.1. Procurement of materials begins with defining the requirements of the project, followed by the selection of
suppliers or subcontractors, and ends with the delivery of materials at the destination (Kent, 1991).

Purchasing materials from the best source, at the right price and with timely delivery are challenges of many
construction companies. Therefore, a control strategy is needed during materials procurement to achieve the targeted
objectives. All requests for quotations and purchases must be initiated through a properly authorized requisitioning
procedure normally controlled by the Project Manager. The Project Manager must ensure that the purchasing of
materials follows the standard requirement, time and quality.
 1. Purchasing Methods

a) Purchase Accounting.
Purchase accounting is a method used to make sure that; only goods authorized are purchase; only goods and material purchased
and received are paid for; and payment made in accordance with agreed and or on contractual terms.

a) Purchasing research
Purchasing research is a technique that systematical searches for the analytics and quantity of need material at the best price as well
as analyzing eventually uses of such material and expensive method of use. Study of the following may be included purchase
research.
 Material used in construction:- new material, alternative materials, high Quality materials;

 Price:- including satisfactory supply at best price, Market and economic trends;

 Capital equipment decisions:- whether to buyer hire;

 Work study;

 Assessment of material cost in relation to use purchasing employees who Have studied these areas can provide cost reduction purchase
services:-recommend an economic intercompany system of supply; set up a purchasing system for Efficient supply of materials; be able
to fare cast supply price changes; be able to Forecast market changes; be aware of new materials and work-study.

 Type of Purchase ,according to (Bajeh, 2010), the types of purchase are; batch Purchase; schedule purchase; and sale supplier agreement
 1. Material Purchase

Purchasing has a direct impact on profitability and individual job profits.

Purchasing needed raw material, supplies and equipment is a vital area for
cost reduction. Since it involve the spending of large sums. According to
Frank (1980) circumstances of misuse and water of resources in the form of
material can be extensive and include: buying the wrong article; buying too
much; buying too little; buying uneconomically; losing material in transit, in
storage, in use; materials stolen or proffered; spoilage and damage to material
before use; scrap and spoiling during use; buying or making out of balance.
According to Lamer (2007), purchasing is one of the basics functions common to all type of business
enterprise. These functions are basic because no business can operate without them all business are
administered or managed by coordinating and integrating those six functions:
 Creation, the idea of design function

 Finance, the capital acquisition records function

 Personnel, the human resources and labour relation function

 Purchasing, the buying of required equipment, material, and services

 Conversion, the changing of material to economic goods

 Distribution, the selling or marketing of goods produced

The good of the purchasing department then should be to avoid cheap purchase but to look for
optimum purchases. Sometime good material can be purchased at lower unit cost through large– order
size purchases.
 1. Purchasing Departments

 In large organization the purchasing group may include purchasing analyst, traffic expert expedite as well as
management. In some cases purchasing is expanded to include all logistics involve in the moving handling storing of
material.

Lamer (2007), the purchasing department on the order hand has the responsibility and authority to schedule outside
production the purchasing department is an organization unit of firm whose duties include some part or all of the
purchasing function.
1. Purchasing Procedures and Documentation

According to DCE’s procurement & property administration directive (2010), the process is started with purchase
requisition, the authorization of the firm through an approved official to buy the needed materials. Quality, quantity, and
date needed are specified on a requisition form, which must be signed by an authorized person.

The requisition form should also be numbered for accounting control in the case of materials that are needed
periodically, a repeating requisition form may be established, where goods are ordered regularly according to a
predetermined schedule. A section to include purchase order number, address should be included in the form’s design for
best control.
 1. Ordering

Selecting of suppliers in purchasing depends on :-quality of materials; price goods and materials;
availability of materials in bulk and small quantities; service offered by supplier; payments terms
offered by supplier; and reliability of supplier. Supplier offering case discounts for prompt payment may
be cheaper overall than companies without discounts, even if the basic goods costs more.
Quotation request from is often used to determined supplier’s prices for goods and used to compared
the supplier offering the best advantages to the buyer chose. The next step is preparation of purchase
order. Careful from design is needed. Since the purchase order serves as a legal contract, therefore, the
Factor to be included are: name and number of farm, name address of supplier, name and address of
buyer, date of order, description of goods, quantity of materials, production, delivery destination,
delivery date, terms of payment, cost of transportation, discount and signature of purchasing officer.
Form design and flow should be planned for simplicity for handling, avoiding unnecessary and costly
duplication. Purchase orders or contracts often list conditions and terms to protect buyer
 1. Purchasing Records

One key area in reducing purchasing cost is that of record keeping. The trades those should be maintained
for rapid construction are: supplier’s name and address, including what goods are supplied by each; prices
of goods last purchased in each area; purchase made, listing items, prices and suppliers; and date of
purchase
The following records give status purchase to process ensuring time and cost control:
 File of contracts outstanding by deadline date

 Receiving book, detailing deliveries

 Invoice book, detailing invoices proceed

 Codes for use on requisition, quotation requests and purchase order to indicate department and material for
accounting use.

 Order register for purchase to progress but not yet received.

 Department breakdown of purchasing costs.

 1. Logistics

Effective logistic management systems will also facilitate the integration and degree of Coordination among contactors,
sub-contractors, and suppliers and will ultimately increase Construction workers’ productivity (Caron, Marchet, and
Perego 1998).Logistics is a concept that emphasizes movement and it encompasses planning, implementing, and
controlling the flow and storage of all goods from raw materials to the finished product to meet customer requirements
(Stukhart, 1995). Raw materials for construction are usually varied, bulky and heavy and required proper handling in the
supplying process. Consequently, the construction industry requires active movement of materials from the suppliers to
the production area in both the factory and the worksite (Pheng and Chuan, 2001).
The primary focus of the logistics concept in construction projects is to improve coordination and communication
between project participations during the design and construction phases, particularly in the materials flow control process
Agapiou, Clausen, Flanagan, Norman and Notman (1998). They also mentioned that Problems arise in the materials flow
control process which includes delays of materials supply, due to some materials purchased just before they are required
and waste of materials during storage, handling and transporting when procured in large quantities without complying
with the production needs on site. The previous research suggested that, the routing of materials is one of the main causes
which affect cost and time during construction projects (Varghese and O'Connor, 1995).
 1. Material Control

Chandler (2008) explained that the degree of control on the inflow of materials and
accompanying paper work will depend upon the size of the contract and the staff assigns
to oversee this work. After all the planning ordering and buying process have been
working to effect a tight control over the materials situations, the site can negate the
whole system if it does not carry out its functions (to supervise the utilization of materials
on the site).

He stressed further that control on site must be exercised respect of waste deterioration,
misuse e.t.c. careful check should be made to ensure correction of orders and that
materials delivery can be properly stretch and unnecessarily handling avoided

Control measures on site should include:

o Adequate supervision: should ensure that materials are not dropped, spoiled or discarded
unnecessarily during operation.

o Accounting: Records should be kept of all transactions– receipts, suppliers, waste, and
transfers to other sites

o Delivery: schedule of timing and contractual responsibility in delivery orders should be

agreed with supplier. Order should be checked on arrive on site by competent storekeeper.

o Security and storage: practical site security with fencing where necessary and a watched
gateman, site store with lock. In addition, site manager’s office should be situated in such a
position that he could have an overview of the entire site where practicable.

o Internal Transportation: This should be done in a way to avoid double handling. And so on.
 1. Stock Control Technique

Compton(2009) states that “stock control” is the means by which materials of the correct quality and quantity
is made available as and when required with due regard to economy in storage and ordering cost, purchase
prices and provision of in terms of money. Higgins (2006) explained that careful stock control assures the user
that materials and supplies are not being wasted or stolen and can reduce costs of such goods and their storage.
He said further that another fact of the technique controls purchase goods inventories from the times they are
supplied until incorporated by the contractors.

Basic steps that both areas of stock control include is:- goods receiving and receiving the receipt; storage of
goods in goods conductor; and control recording incoming and outgoing construction materials as well as the
supply on hand. Also control of incoming and issuing of construction materials as well as inventories of stock
on hand and reserve stock records of issuing materials and the of inventory turnover.
1. Reason for Holding Stock
 The cost goods for inventory burden cost is high usually 25-35 percent of the values of goods– (Higgins,
2006). This figure includes the cost of the physical storage facilities. Handling, distribution taxes
insurance and deterioration. Deterioration account for well over half of the
cost, and therefore they are especially suitable targets for cost
reduction procedures. Storage should be kept to the minimum
required, and reasons for holding stock include the following reasons.
o Delivery cannot be exactly matched with day by day usage.

o Quantity discounts or projected inflation caused price increase on

materials purchased large enough to offset storage costs.

o Fear of widely fluctuating market for goods.

o Fear of short run inflation on some materials constantly used.

 Sometimes appreciate in value during the ti
 1. Materials Management Problems

Zakeri et al (1996) suggested that waste, transport difficulties, improper handling on site, misuse of the specification, lack of a
proper work plan, inappropriate materials delivery and excessive paperwork all adversely affect materials management. Shortage of
materials contributes to the cause of delay in managing materials in the construction site Ogunlana, Promkuntong, Jeark-jirm (1996;
Abdul-Rahman, and Alidrisyi, (1994); Aibinu and Odeyinka, 2006). Late delivery of ordered materials is also problematic in
materials management. Furthermore, Dey (2001) noted that the common issues relating to materials management are as follows:
o Receiving materials before they are required, causing more inventory cost and chances of deterioration in quality;

o Not receiving materials at the time of requirement, causing loss of productivity;

o Incorrect materials take-off from drawings and design documents;

o Subsequent design changes;

o Damage/loss of items;

o Selection of type of contract for specific materials procurement;

o Vendor evaluation criteria;

o Piling up of inventory and controlling of the same;

o and Management of surplus materials

 1. Factors Affecting Materials Management

According (Narimah, 2011), the factors affecting materials management are:-

sourcing of materials and requisition; demand estimation; transportation;
receiving and verification of materials on site; storage of materials on site;
issuing of materials for use; procurement or indent for materials; quality
inspection and control; maintenance; time; materials handling; stock and waste
control; financial ability; possession of qualified staff; possession of qualified
subcontractors; possession of qualified of required equipment; competence of
estimators; availability of equipment; duration of the project; type of project;
type of materials; and level of awareness
 1. Approaches to Addressing Problems

 Firstly, if there are any problems with the materials delivery (relating to late delivery, materials damages or shortages) the
suppliers were advised immediately. There was a second strategy, which involved referral of any problems to the Project's Quality
Officer, who solves problems relating to the quality of materials.
Lastly, in order to deal with the logistics within the work place', all work by labour is carefully controlled and monitored. In order
to avoid double handling and committing the same mistake by to labour force, the site manager gives clear instructions and
delegates certain work processes to the construction workers.
According (Narimah ,2008), the measures for effective materials management practices on construction project are:- timely placing
of orders for materials; ensure quality assurance/control processes are in place; logistics for tracking & transportation of materials
to site; receiving and inspecting materials on site; storage & issuing of materials to construction location; complete quality records
of materials; established material management system to be used; documentation; record receipt of goods upon delivery;
monitoring of materials distributed; assigning of material codes; construction activities and schedule of materials; proper materials
handling; make the store safe from theft and vandalism; materials return to be submitted weekly; determine the daily allocation of
materials on site; education/training/enlightenment of staff in charge of materials management; special security agents; and usage of
qualified construction professionals

 1. Benefits Gained In Good Materials Management
According to Bernold and Treseler (1991), the following are the benefits of materials management.
 Elimination of bulk passing: by defining centrality the authority and responsibility for all the materials
function are under key individual, a central part of control for the total flow system is provides. When
using departments have problems regarding their materials requirements, they can look at are central
part within the organization for answers and action.
 Better inter-department/section co-operation: this is accomplished both between the materials
management function and manager departments within the total organization, and also with the various
sub functions that make up the materials department. Using departments find that they relieve better,
more efficient service from the materials section. This creates an atmosphere conducive to solving
materials user supplier problems with a sense of mutual trust and cooperation. In addition to cooperation
between user section and the materials department, cooperation will be festered between the various
functions making up the material, under a central responsible manager; these departments will develop a
sense of mutual support and confidence in accomplishing the total material jobs.
 Lower prices for materials and equipment used: Wise buying requires accurate information,
promptly supplied, regarding materials used. Wise buying requires accurate information,
promptly supplied, regarding materials needs. This enable purchasing to take advantage of
things such as quality buying, use of various types of blanket orders and other type if contract
buying arrangement and buying in anticipation of market changes when all materials
functions including materials planning control and inventory control are joined together
organizationally, communication regarding materials requirements are generally expedite.
 Faster inventory turnover: Dug to great speed, accuracy and completeness of communication
regarding materials requirement and usage rates, it is often possible to reduce the total
investment inventory, with resultant savings in inventory cases. Indeed some firms famed that
centralization of materials function resulted in a 20-40% reduction in site of materials stock.
 Continuity of supply of materials: descriptions in operations are extremely costly to a
construction firm and the client. Yet descriptions do occur, often because of breakdown in
communications between various materials function and lack of cooperation between
functioning. Material management factors the used for cooperation communication,
coordination which help to prevent such disruptions.
 Reduce material lead time: with long communicates a substantial amount of time may elapse
between the date potential material user recognize his need and the time that material of
relieved by the construction firm. If this information must be transmitted to materials
planning and control, then to inventing control and finally to purchasing and if these three
functions are vet in close organizational proximity, several days male elapse before the
purchase order even goes to vendor. Additionally, there is a chance that because of the
organizational distance between functions, urgency in materials needs may be misunderstood.
 1. Conceptual frame work of the research
Materials management is a process for planning, executing and controlling field and
office activities. The goal of materials management is to insure that materials are
available at their point of use when needed. The materials management system
attempts to insure that the right quality and quantity of materials are appropriately
selected, purchased, delivered and handled on site in a timely manner and at a
reasonable cost. Materials management is the system for planning and controlling all
of the efforts necessary to ensure that the correct quality and quantity of materials are
properly specified in a timely manner, are obtained at a reasonable cost and most
importantly are available at the point of use when required. Thus Materials
management is an important element in project management.
 Materials represent a major expense, so minimizing
procurement costs improves opportunities for reducing the
overall costs. Poor materials management can result in
increased costs. Efficient management of materials can result
in substantial savings in economic costs. If materials are
purchased too early, capital may be held up and interest
charges incurred on the excess inventory of materials.
Materials may deteriorate during storage or get stolen unless
special care is taken. Delays and extras expenses may be
incurred if materials required for particular activities are
unavailable. Ensuring a timely flow of materials is an
important concern of material
management. For effectively managing and controlling materials, the performance of materials
management should be measured.
A performance measure calculates the effective working of a function. These performance
measures may differ from system to system. The measures divide the materials management
system in parts and make the working of the system more efficient. When joined, the measures
make the complete materials management system.
Components of material management are:
o Material estimation, budgeting, planning and programming.
o Scheduling, purchasing and procurement
o Receiving and inspection.
o Inventory control, storage and warehousing
o Material handling and transport
o Waste management
Fig.2.1 Process of Material Management
  CHAPTER THREE: RESEARCH METHODOLOGY
1. Description of the Study Area

Gofa Zone (Amharic "Greater Gofa Area") was one of the 17 Zones in the Southern
Nations, Nationalities, and Peoples' Region of Ethiopia. Part of the Southern Nations,
Nationalities, and Peoples' Region, Gofa Zone was bordered on the south by Kamba
and Daramalo woredas, on the south west by the Debub (South) Omo Zone, on the
west by the Basketo special woreda, on the north west by Dawro Zone, on the north by
the Dawro Zone, and on the east by Kucha. The administrative center of Gofa Zone is
Sawla; other towns included Bulki. Gofa Zone was separated for Demba Gofa Woreda,
Geze Gofa Woreda, Zala Woreda, Malo Koza Woreda, Gada Woreda, Uba Debretsehay
Woreda, Oyda Woreda and the two town Administrations Sawla town and Bulki town.
Gofa Zone is part of a region known for hilly and undulating midland and upper lowland terrain; due to terrain and
weather patterns, less than one in five households is food secure. Food crops include maize, enset, sweet potatoes, taro,
teff, and yams; income sources include butter and selling firewood. According to a 2004 report, Gofa Zuria had 75
kilometers of all-weather roads for an average road density of 44 kilometers per 1000 square kilometers.
1. Data Type, Source and Method of Data Collection

In this study, both primary and secondary sources of data were employed. The primary data was collected by
interviewing the selected groups by using a structured questionnaire. In addition, secondary sources of data was
collected from review of different documents including research works, books, office documents, journals, articles,
report that had been written by different scholars on related issues as well as documents from various official websites.
1. Target population
 The target population of this study comprises all 47 employees of Arba Minch University Sawla Campus. Given
the moderate size of the workforce, the study was adopting a census survey approach, ensuring that data is
collected from the entire employee population rather than a sample. This method is chosen to enhance the
accuracy and reliability of the findings by incorporating diverse perspectives and experiences from all staff
members. Additionally, this
approach was providing comprehensive insights into the operational, managerial, and
service-related aspects relevant to the study’s objectives.
1. Sample Size and Sampling Techniques
The researcher employed a census survey method to conduct the study. This approach
was chosen to enhance the reliability and representativeness of the research findings.
By including all employees of Arba Minch University Sawla Campus, the study
ensures a comprehensive understanding of the subject matter, capturing diverse
perspectives without the limitations of sampling bias. Furthermore, given that the total
number of employees in the branch is moderate, a census method allows for an
inclusive analysis, leading to more accurate and well-rounded conclusions that reflect
the realities of the entire workforce.
 1. Method of Data Analysis
After the primary and secondary data was obtained from different sources by using
different data collection methods and organized the data through editing and coding
the data was analyzed by using descriptive analysis techniques.
The data was processed through process of data that involve editing the collected
data is investigated carefully to detect errors and missions. A also the accuracy and
consistency of facts was gathering as certain to make things smooth for coding and
class fiction, after data edited and errors are corrected. The data was coded is that
numerical and other figures are assigning to answer. So that the response was, reduce
to smaller number of classes. Their after analysis was made using tabular, percentage
and frequency.
 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
1. Introduction
This chapter deals with analysis, presentation and interpretation of
the study based on the data gathered from the respondent’s Arba
Minch University Sawla Campus Human Resource employee. Data
has been analyzed and interpreted according to respondent’s response
to assessing the assessment of material management practice.
2. General Information of respondents
1. Demographic distribution of the respondents
Table 4.1: Demographic information of the respondents

No Demographic factors Respondents

Frequency Percent (%)
• Sex Male 25 53
Female 22 47
Total 47 100
• Educational Diploma 17 36
status First degree 23 49
Master degree 3 6.5
Other… 4 8.5
Total 47 100
• Years of <5 18 38
experience 6-10 16 35
11-15 5 11
15-25 7 14
>25 1 2
Total 47 100
Source: own survey 2025
 As shown on the above table most of the respondents
25 (53%) are male and the other 22 (47%) of the
respondents are female. It is also shown that first
degree holders constitute 23(49%) of the respondents,
there are 17 (36%) respondents having diploma,
3(6.5%) of them have masters and above educational
level, while the remaining 4(8.5%) of the respondents
are categorized under
 the other option. The table also shows that respondents
which cover 18(38%) have an experience of <5 year, 16
(35%) of the respondents are experienced with 6-10 years,
the organization have 5 (11%) employees with 11-15 years
of experience, 7 (14%) of the respondents have work
experience of 15-25, and only 1 (2%) respondent of the
organization from the target population have above 25 years
work experience. This indicates that majority of the
respondents have a work experience of less than 5 years.
Majority of the respondents have good educational
qualification ranging from diploma to masters and above.
They also have good work experience.
Table 4.2: Questioner analysis related with purchasing
No. Questions Yes % No % I don’t know % Total Total %

• Do you think that skilled man power 24 51.6 19 40.4 4 8 47 100

is exist on the position?

• Do you think that enough budgets 32 68.1 10 21.27 5 10.63 47 100

are set for purchasing material?

• Are there any policy and procedure 27 57.45 14 29.78 6 12.76 47 100
in the organization regarding
purchasing?

• Do you think that the materials 28 59.57 16 34.04 3 6.39 47 100

purchased meet the requirement?

• Do you think that materials are 21 44.69 24 51.06 2 4.25 47 100

purchased on time?
Source: own survey 2025
 As shown in the above table, from the total respondents, 24 (51.6%) of the respondents replied
that there is skilled manpower on the position of purchasing, 19(40.4%) respondent are said
that there is no skilled manpower on the position and the rest of the respondents, which means
4 (8%) respondents, have no any idea whether there is a skilled man power on the position or
not.
 For the second question which is whether enough budget is set for the purchasing purpose or
not, 32(68.1%) respondents replied that there is enough budget that set for purchasing
purpose, 10(21.27%) of the respondents replied that there is no enough budget that set for
purchasing purpose, but the rest of 5(10.63%) of respondents do not have any idea about the
issue.
 For the third question, 27(57.45%) of the respondents replied that the organization has its
own policies and procedure related with purchasing activity, 14(29.78%) of the respondents
replies that there is no any policy and procedure that the organization follow related with
purchasing, But the remaining 6(12.76%) of the respondents don’t know whether there is
purchasing policies and procedure or not
 From the fourth question 28(59.57%) of the respondents replied
that the materials purchased can meet the requirements,
16(34.04%) of the respondents replied that the materials purchased
do not meet the requirements, but the rest 3 (6.39%) of
respondents do not know whether the purchased material can meet
the requirements or not.
 From the last question of the table above, 21 (44.69%) of the
respondents replied that materials are purchased on time, 24
(51.06%) of the respondent replied that the materials do not
purchased on time, but only 2 (4.25%) respondent replied that do
not know whether the materials purchased on time or not.
Table 4.3: Questioner analysis related with inventory management and storage

No. Question Yes % No % I don’t know % Total Total %

1 Is there skilled man power on the 27 57.45 16 34.04 4 8.51 47 100

position?

2 Dose the inventory properly 30 63.8 15 31.91 2 4.25 47 100

located in the warehouse?

3 Dose the management use 21 44.69 23 48.93 3 6.38 47 100

computerized system for
controlling and recording
inventories?

4 Is there adequate space in the 33 70.21 14 29.79 0 0 47 100

store for purchased materials?

5 Do you think that the store is 29 61.70 15 31.91 3 6.38 47 100

clean enough?
Source: own survey 2025
From the table above for the first question, 27(57.45%) of the respondents responds that there is skilled man
power in the position, 16 (34.04%) of the respondents responds that there is no skilled man power in the
position, but the rest 4 (8.5%) of the respondents replied that they do not know whether there is skilled man
power or not in the position.
For the second question, from the total respondents, 30 (63.8%) respondents replied that the inventories are
properly located in the store, 15 (31.91%) respondents responds that inventories are not properly located in
the store, and the remain 2 (4.25%) respondent replied that they do not know whether the inventories are
located properly or not.
For the third question, 21(44.69%) respondents replied that the management uses computerized system to
recording and controlling the inventory, but 23 (48.93%) respondents responds that the management do not
use computerized system to recording and controlling the inventories, and the rest 3 (6.38%) respondents
replied that they do not know whether the management uses computerized system or not.
is no adequate space in the store.
Table 4.4: Questioner analysis related with material demand forecasting:

No. Question Yes % No % I don’t % Total Total

know %
1 Do you think that 31 65.96 12 25.53 4 8.51 47 100
forecasting plays a
significant role on
estimating the
demand for
materials?

2 Is there specialist 28 59.59 14 29.78 5 10.6 47 100

unit that provide 3
forecasting regarding
materials demand?

3 Is there available 24 51.07 16 34.04 7 14.8 47 100

data to make 9
forecast?

4 Is there coordinated 19 40.43 18 38.29 10 21.2 47 100

method of 8
forecasting?

5 Do you think that the 21 44.68 19 40.43 7 14.8 47 100

accuracy of forecast 9
that was made
satisfactory?
Source: own survey 2025


The above table indicates that for the first question, from the total respondent’s, 31 (65.96%)
respondent’s replied that forecasting plays a significant role on estimating demand for materials,
12(25.53%) respondents replied that forecasting do not play significant role on estimating demand
for materials, and the rest 4 (8.51%) respondents replied that they do not know whether forecasting
play an important role on estimating demand for materials or not.


For the second question, from the total respondents 28(59.59%) of the respondents replied that
there is specialist unit that provide forecasting regarding materials demand, 14 (29.78%) respondent
replied that there is no specialist unit that provide forecasting regarding materials demand, and the
rest of 5 (10.63%) respondents are do not know whether there is specialist unit or not.
For the third question, the respondents of 24(51.07%) replied that there is available data in order to make a
forecast, 16 (34.04%) respondents from the total respondents are replied that there is no data available to make a
forecast, but the remain 7 (14.89%) of respondent replied that they do not know whether available data or not
which helps to make a forecast.


The replies of the respondents for the fourth question, which is whether there is co-ordinated methods of
forecasting or not, 19 (40.43%) respondents replied that there is co-ordinated methods of forecasting, 18 (38.29%)
respondents are responded that there is no co-ordinated methods of forecasting, and the rest 10 (21.28%) of the
respondent replied that that they do not know whether there is co-ordinated methods of forecasting or not.
From the total respondents around (44.68%) or 21 of them are replied that the forecast that was made related with
material demand are satisfactory, and 19 (40.43%) of the respondents replied that “no” the forecasts that was
made related with material demand are not satisfactory, it needs more effort than what exist before, but 7(14.89%)
of respondents are not familiar with the issue of material demand forecasting, this means they have no any idea
about it.
Table 4.5: Questioner analysis related with disposal management:
No. Question Yes % No % I don’t know % Total respondents Total respondents in %

1 Do you think that materials are disposed in 20 42.56 22 46.81 5 10.63 47 100
the right way?

2 Is there an activity of changing wastes in to 24 51.07 19 40.42 4 8.51 47 100

useful product?

3 Do you think that the environment of the 22 46.82 19 40.42 6 12.76 47 100
school is vulnerable to risks related with the
way of disposing?

4 Is there enough personnel’s in the position of 24 34.21 14 42.10 9 23.69 47 100

disposal management?

5 Is there recycling method in disposal 26 39.47 19 55.26 2 5.27 47 100

management activity?
Source: own survey 2025


As shown on the above table, for the question that says do you think that materials are
disposed in the right way? , 20 (42.56%) of the respondents are replied that “yes”, and
22(46.81%) of the respondents replied “no”, and the rest 5(10.63%) of the respondents are
replied “I don’t know” or they have no an idea about whether the materials are disposed in the
right way or not.
Forthe second question that says “is there an activity of changing wests in to useful product?
“ 24(51.07%) 0f the respondents replied that “yes”, 19(40.42%) of the respondents replied
“no”, and the remaining 4(8.51%) respondents replied that “I don’t know”.
For the third question 22(46.82%) of the respondents replied that “yes” the environment of
the school are vulnerable to risks, 19(40.42%) of the respondents are replied that “no” the
environment is not vulnerable to risks, and the rest 6(12.76%) of the respondents replied that
“they don’t know” whether the environment is vulnerable to the risks or not.
For the fourth question 24(34.21%) of the respondents replied that
“yes” the position is filled with enough personnel’s, 14(42.10%) of
the respondents are replied that “no” there is no enough personnel’s
on the position of disposal, and the remaining 9(23.69%) of the
respondents are replied that “I don’t know”.
At the last 26 (39.47%) of the respondents are replied “yes” for the
question they asked ‘whether there is recycling methods in the
disposal management activities or not, 19(55.26%) of the
respondents replied that “no” there is no any recycling methods in
the disposal management activities, and the rest of 2(5.27%)
respondents replied “I don’t know”.
 2. Analysis of Interview question for the director of the division of purchasing and
material administration
An interview was conducted with the Department of Purchasing and Property
Administration at Arba Minch University, Sawla Campus. The primary purpose
of the interview was to collect relevant information and practical insights to
support the development and refinement of the previously identified model. This
interview aimed to understand the current practices, challenges, and areas for
improvement within the department. The following are the questions posed
during the interview and the responses provided by the department director:
A. What procedures do you follow to purchase the required material?
 The director outlined the standard procurement process currently followed
by the Purchasing and Property Administration Division. According to the
director, the procedure begins when the user
department identifies a need and submits a formal request in writing to the Purchasing and Property Administration Unit. Upon
receiving the request, the director of the unit forwards it to the central purchasing team for further action. The central purchasing
team, in turn, sends an official communication to the Finance and Budget Directorate, requesting the release of funds either in the
form of a purchase order (Performa) or petty cash depending on the nature and urgency of the purchase. Once the necessary funds
are secured, the procurement professionals proceed with acquiring the required items and ensure they are properly stored upon
delivery.
In summary, the procurement process includes the following key steps:
 Preparation and submission of a need request by the user department.
 Bid document preparation by the purchasing unit.
 Tender announcement and opening.
 Evaluation of submitted bids.
 Endorsement of the selected supplier.
 Award of the contract.
 Contract management and follow-up.
 Final procurement and storage of goods.
This structured procedure is designed to ensure transparency, accountability, and efficiency in the university’s procurement
activities.
 A. In what way you select the suppliers of your product?
The director further explained the supplier selection process utilized by the Purchasing and
Property Administration Division. He emphasized that suppliers are selected based on a
combination of technical compliance with the required specifications and the submission of
the most competitive financial bid. This dual focus ensures that the university procures quality
goods at the best possible price.
To facilitate fair and effective supplier selection, the department employs three primary
bidding techniques:
A. Open Bidding – where the invitation to bid is made publicly available to all eligible
suppliers.
B. Selective Bidding – in which only pre-qualified or shortlisted suppliers are invited to
participate.
A. Limited Bidding – used in cases where time or supply constraints necessitate a
more restricted bidding process.
Once suppliers submit their Proforma invoices which include detailed product
specifications and corresponding price offers the evaluation process begins. Each
submission is reviewed carefully, focusing on both the quality of the goods and their
cost. The department ensures that the product meets the specified standards while also
offering value for money.
After thorough evaluation, the contract is awarded to the supplier who meets all
technical requirements and provides the lowest responsive bid. This systematic approach
helps maintain transparency, promotes competition, and ensures the acquisition of goods
and services that align with institutional needs and budgetary constraints.
 A. What kind of inventory counting technique do you follow?
The director also discussed the inventory management practices of the department, particularly the
method used for stock verification. He stated that the department utilizes a periodic physical
inventory counting technique, whereby a comprehensive inventory count is conducted once every
fiscal year.
This annual inventory count is scheduled to take place during the first fifteen days of the Ethiopian
month of Hamle (Hamle 1–15). The process typically spans a period of fifteen (15) consecutive days,
during which all items in storage are physically counted and cross-checked against existing inventory
records.
This method helps ensure the accuracy of inventory data, identify discrepancies such as losses or
misplacements, and maintain accountability in the management of university assets. Although the
count is periodic rather than continuous, the director emphasized that it is carried out diligently and
plays a crucial role in upholding the integrity of the property administration system.
 A. What problems are exists in the store area?
When asked about the major challenges faced by the department, the director acknowledged the
presence of several critical issues that hinder effective operations. He pointed out that one of the
primary problems is the shortage of storage space, which often results in congestion and inefficient
arrangement of materials. This limitation makes it difficult to manage inventory properly and leads
to delays in retrieving items when needed.
Another significant issue is the misallocation of materials, which can occur due to errors in record-
keeping, labeling, or handling. These misallocations disrupt the supply chain within the campus and
may lead to departments receiving incorrect or misplaced items.
In addition, the director noted that the bulk nature of procurement particularly when dealing with
large-scale or centralized purchases can overwhelm the system. This, in turn, contributes to customer
service delays and dissatisfaction, as user departments may not receive their requested items
promptly.
Furthermore, he emphasized the lack of adequately trained and skilled personnel in key
positions as a persistent problem. The shortage of human resources with the necessary
technical expertise in procurement, inventory management, and contract administration
affects the overall performance and efficiency of the division.
Addressing these challenges, he noted, requires strategic planning, investment in
infrastructure, and capacity-building initiatives to enhance the skills of existing staff.
A. How do you forecast the demand for the materials?

The director explained that the department forecasts material demand primarily through the
preparation of an Annual Procurement Plan Statement, which serves as a guiding framework
for purchasing activities throughout the fiscal year. This plan is developed in collaboration
with various user departments to ensure their projected needs are accurately captured and
addressed in advance.
In addition to the formal procurement plan, the director mentioned that historical usage data
plays a key role in the forecasting process. By analyzing the previous consumption rates and
usage patterns of each department, the unit is able to make informed estimates about future
demand. This data-driven approach helps to reduce the risks of overstocking or stockouts,
ensuring that materials are available when needed without tying up unnecessary financial
resources in excess inventory.
The director also noted that while this method provides a solid foundation for forecasting,
there is still room for improvement. In particular, he emphasized the need for more advanced
forecasting tools and data management systems that could enhance accuracy and
responsiveness to changing needs. Strengthening collaboration between departments and
improving data reliability are also seen as important steps toward more effective demand
planning.
 A. What challenges you face when you made forecast?
The director candidly addressed several challenges that hinder the effectiveness of demand
forecasting and the overall procurement process. One of the primary issues he highlighted is the
shortage of accurate and timely information, which limits the department’s ability to make precise
forecasts. Without reliable data, it becomes difficult to anticipate future needs and allocate resources
efficiently.
He also pointed out a lack of familiarity with the job among some staff members, particularly those
involved in forecasting and inventory assessment. This skill gap affects the accuracy of estimates and
leads to inconsistencies in the procurement planning process.
Another major challenge is the difficulty in determining the quantity and availability of existing tools
and equipment. Inadequate inventory tracking systems and inconsistent updates to records make it
hard to assess what is already in stock versus what needs to be procured. This often results in
redundant purchases or shortages of essential items.
In addition to forecasting-related issues, the director noted delays in the procurement
process, which are often caused by procedural inefficiencies, slow communication
between departments, and bureaucratic bottlenecks. These delays can disrupt service
delivery and negatively affect departmental operations.
Furthermore, quality concerns and the escalation of prices over time pose significant
challenges. Occasionally, procured goods may not meet the expected standards,
leading to dissatisfaction and waste of resources. Price inflation especially in volatile
markets also impacts the budgeting process and complicates long-term planning.
The director emphasized that addressing these problems requires better information
systems, capacity building for staff, streamlined procurement procedures, and stronger
quality assurance mechanisms.
 A. When do you make decisions to dispose materials?
The director discussed the department’s approach to material disposal and asset
management. He stated that the decision to dispose of items is made as soon as materials
are identified as obsolete, damaged, or no longer functional. This proactive approach is
intended to prevent unnecessary accumulation of unusable items in the storage facilities
and to ensure efficient utilization of available space.
He emphasized that when the volume of such materials becomes significantly large, the
department initiates a formal disposal process. This involves identifying and categorizing
the items to be discarded, assessing their condition, and obtaining the necessary
approvals from the relevant authorities or disposal committee in accordance with
institutional and public property management guidelines.
The director also noted that timely disposal of unserviceable materials not
only helps in maintaining a clean and organized storage environment but also
minimizes the risk of loss, theft, or misuse of idle assets. However, he
acknowledged that logistical and procedural challenges can sometimes delay
the disposal process.
He recommended that for improved efficiency, the university should
establish a clear and systematic disposal policy, conduct regular inspections
and audits, and strengthen coordination between the property administration,
finance, and audit units to ensure accountability and compliance with
regulatory standards.
 A. What mechanism or methods do you use to dispose materials?
The director elaborated on the department’s disposal strategy by highlighting its commitment to exploring alternative
options for value recovery before permanently discarding unserviceable materials. He stated that before any item is
disposed of, the department first assesses whether there is a potential to repurpose, resell, or recycle the material in
question.
If the materials are found to retain any marketable or recyclable value, efforts are made to either sell them through an
approved bidding or auction process or send them to appropriate recycling facilities. This approach not only generates
some revenue for the institution but also aligns with environmentally responsible waste management practices.
However, in cases where items are beyond repair, have no resale or recycling value, or pose a safety or environmental
hazard if kept in storage, the department proceeds with final disposal. As a last resort, such materials are safely
destroyed, often through controlled burning, in accordance with established safety and environmental guidelines.
The director emphasized that this process is carried out with the necessary approvals and under the supervision of
responsible bodies to ensure transparency, compliance with institutional regulations, and minimal environmental impact.
 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
1. Summary

The following point can be drawn as summery to the study conducted based on the data collected.
The study's findings, based on the collected data, highlight several key points regarding the
assessment of material management practice in case of Arba Minch University Sawla Campus.
This research is centered on the evaluation of the effectiveness and efficiency of material
management practices at Arba Minch University, Sawla Campus. Material management is a critical
component of organizational operations, encompassing the planning, procurement, storage,
handling, and control of materials to ensure their timely availability for various functions. The
ultimate goal is to reduce operational costs, minimize wastage, and support smooth and
uninterrupted service delivery within the institution.
The study explores several dimensions of material management, including:
 Procurement Processes: The study assessed how the campus sources its materials, the
criteria used in supplier selection, and the efficiency of its procurement cycle. It revealed that
delays in the procurement process are common due to lengthy approval procedures and
inadequate planning, often leading to stock-outs of essential items.

 Inventory Management: Inventory control systems were examined to determine how well
materials are tracked, reordered, and stored. The findings indicated that the lack of modern
inventory tracking systems has led to inefficiencies and inaccuracies in stock records, which
in turn affects decision-making and responsiveness to demand.

 Storage and Warehousing: The condition and organization of storage facilities were
evaluated. The study found that limited warehouse space, poor shelving systems, and
substandard storage practices have resulted in material damage and misplacement, especially
for sensitive or perishable goods.
 Utilization and Monitoring: An analysis was done on how materials are issued, utilized,
and monitored within departments. There is a noticeable gap in accountability and tracking,
leading to issues like over-utilization, under-utilization, or misuse of resources.

 Human Resource Capacity: The skills and awareness of staff involved in material
management were also assessed. The study revealed a need for capacity building through
regular training and the hiring of more qualified personnel in procurement and logistics
functions.

 Use of Technology: Technological integration in material management was found to be

minimal. Manual systems dominate operations, leading to data inaccuracies, inefficiencies,
and delayed decision-making. The study suggests that introducing automated inventory and
procurement systems would significantly improve material flow and record accuracy.
 1. Conclusions
In conclusion, this study has revealed critical gaps and considerable opportunities for improvement in
the material management practices at Arba Minch University Sawla Campus. The assessment
identified major challenges such as inefficient procurement procedures, inadequate inventory control
systems, poorly maintained storage facilities, and insufficient staff training, all of which significantly
hinder the institution’s ability to effectively manage its materials.
The findings underscore the absence of a well-integrated material management system, which has led
to frequent stock-outs, material wastage, and delays in service delivery. Additionally, the heavy
reliance on manual processes contributes to data inaccuracies and a lack of real-time visibility into
inventory levels, further exacerbating inefficiencies.
Addressing these issues requires a multi-dimensional approach:
 Policy Reform: Institutionalizing standardized material management policies and procurement
guidelines to enhance consistency, transparency, and accountability across departments.
 Capacity Building: Investing in training and professional development for personnel
involved in procurement, storage, and distribution functions, ensuring they are equipped
with the necessary skills and knowledge.
 Technology Integration: Introducing automated systems such or inventory management
software to improve data accuracy, streamline operations, and enable evidence-based
decision-making.
 Strategic Planning and Forecasting: Establishing a data-driven approach to demand
forecasting and procurement planning to ensure timely and cost-effective material
availability.
 Interdepartmental Coordination: Enhancing collaboration between procurement, finance,
academic, and administrative units to create a responsive and synchronized material
supply chain.
Improved material management will lead not only to operational efficiency and
cost-effectiveness but also to higher service quality, enabling the campus to better
support its educational, research, and community engagement missions.
Furthermore, effective material management contributes to the broader goals of
institutional sustainability and good governance, making it a vital strategic priority.
1. Recommendation
Based on the assessment of material management practices at Arba Minch
University Sawla Campus, the following recommendations are proposed to address
the identified gaps and enhance the efficiency, sustainability, and responsiveness of
the system:
 Adopt a Computerized Inventory Management System: The organization should implement a modern,
computerized inventory and store management system to improve tracking, accuracy, data
consistency, and decision-making across all material management activities.
 Recruit Skilled and Qualified Personnel: The University should hire employees who possess relevant
knowledge and practical skills in inventory control, procurement, and warehouse management to
ensure professional handling of materials.
 Enhance Demand Forecasting through Departmental Coordination: Material demand forecasting
should be conducted in close coordination with user departments. Collaborative planning ensures that
forecasts are realistic and aligned with actual needs, avoiding overstocking or shortages.
 Strengthen Material Disposal Practices: Materials identified for disposal must be discarded promptly
and in environmentally safe ways. Disposal methods should follow a hierarchy: transfer to other
departments, resale, negotiation, and as a last resort, controlled burning. The disposal process must
comply with safety and environmental standards.
 Build Capacity in the Disposal Unit: The disposal unit must be equipped with sufficient and skilled personnel capable of handling
disposal activities effectively. Additionally, innovative methods for recycling or repurposing discarded materials into useful
products should be explored to minimize waste.
 Provide Regular Training and Development Opportunities: Continuous capacity building is vital. Regular training sessions should
be provided to staff involved in procurement, warehousing, and store management to improve their competencies and keep them
updated with best practices and technological tools.
 Ensure Proper Utilization of Time and Property: Staff must be encouraged and monitored to make efficient use of work hours and
institutional resources to prevent waste, delay, and negligence in material handling and documentation.
 Timely Submission of Material Requirements by User Departments: User departments must plan and submit their material
requirements in a timely manner to enable the purchasing unit to respond proactively and avoid unnecessary delays in procurement.
 Focus on Quality Improvement in Purchasing: The procurement process should emphasize quality assurance. The purchasing unit
must establish clear quality standards, conduct supplier evaluations, and perform post-purchase reviews to ensure that acquired
materials meet expected standards.
 Maintain Flexibility in Response to Market Changes: The purchasing unit must remain adaptable and responsive to changes in
market prices and availability. Flexibility in procurement decisions will help the university avoid cost overruns and supply
disruptions.
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Appendix

 ARBAMINCH UNIVERSITY SAWLA CAMPUS

This questionnaire is designed to gather relevant information for the researcher. The objective of the research is to an
assessment of material management practice in the case of arba minch university sawla campus. Your frank and honest
opinion has a positive contribution to the success of the research. This questionnaire is prepared in Arbaminch University
sawla Campus in an attempt to conduct a survey on the an assessment of material management practice in the case of arba
minch university sawla campus and your response will be kept confidential you are not required to write your name.
Dear respondent, respond to the following equations by putting (×) mark in the box provided and write any necessary
information on the space provided.
 Thank you very much for you cooperation.

Part one: demographic information

1. Gender male: female:

2. Age: 18 -27 28-37 38-47 48-57 Above 57
3. What is your current educational status

Certificate high school Diploma First degree master degree:

Other, please specify:

4. Current positions Manager secretary Assistant manager

Auditor Other, please specifies:

5. work experience

<5 15-25

6-10 >25

11-15
Appendix II: main research questions

Part two: questions related with the models to be filled by both internal and external staffs:

2.1 purchasing
1. Do you think that skilled man power is exist on the position?

YES: NO: IDON’T KNOW:

2. Do you think that enough budgets are set for purchasing materials?

YES: NO: IDONT KNOW:

3. Are there any policies and procedures in the organization regarding purchasing?

YES: NO: IDON’T KNOW:

4. Do you think that the materials purchased meet the requirement?

YES: NO: IDON’T KNOW:

5. Do you think that materials are purchased on time?

YES: NO: IDON’T KNOW

 2.1 inventory management and storage
1. Is there skilled man power on the position?

YES: NO: IDON’T KNOW:

2. Did the inventory properly located in the warehouse?

YES: NO: IDON’T KNOW:

3. Dose the management use computerized system for controlling and recording inventories?

Yes: NO: IDON’T KNOW:

4. Is there adequate space in the store for materials purchased?

YES: NO: IDON’T KNOW:

5. Do you think that the store is clean enough?

YES: NO IDON’T KNOW:

2.2 Disposal Management

1. Do you think that materials are disposed in the right way?

YES: NO: I DON’T KNOW

2. Is there activity of changing wastes in to usefull product?

YES: NO: I DON’T KNOW

3. Do you think that the environment of the school vulnerable to risks related with the way of
disposing?

YES: NO: I DON’T KNOW

4. Is there enough personnel in the position of disposal management?

YES: NO: I DON’T KNOW

5. Is there recycling method in disposal management activity?

YES: NO: I DON’T KNOW

Part three: General recommendation to be filled by both internal and external staffs if any:
Appendix III list of interview questions
1. Purchasing
1. What procedure do you follow to purchase the required materials?
 ____________________________________________________________________________________
____________________________________________________________________________________
__________.
1. In what way you select the suppliers of your
 ____________________________________________________________________________________
____________________________________________________________________________________
_______________________________________________________________________________.


1. Inventory management and store

1. What kind of inventory counting system do you follow?
 _________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_____________________________________________
 1. What problem you face in the store area?
________________________________________________________________________________________________________________

________________________________________________________________________________________________________________
____.___________________________________________________________________________________
1. Material demand forecasting
2. How do you forecast the demand for the material?
________________________________________________________________________________________________________________

________________________________________________________________________________________________________________
________________________________________________________________________________________
1. What challenge you face when you made forecast?
 ____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________.
1. Disposal management
1. When you make decision to dispose the material?
________________________________________________________________________________________________________________

________________________________________________________________________________________________________________
_.
1. What mechanism/method you use to dispose the material?
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
____________________________.