Impact Of Effective Materials Handling In The Stores Function Of An Organization

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Impact Of Effective Materials Handling In The Stores Function Of An Organization


Chapter One


1.0 Introduction

1.1 Background Of Study

This project is about the impact of effective material handling in the state function of the organization. Materials today are life blood of any manufacturing firm, organization or an industry. For an effective and efficient production and operation, all materials and resources must be available at the right source, right quality, right quantity, right place and price, failure will slow down production and incur cost.

To handle materials is to manage the life of an organization because organization spend mote that 70% of their working capital on material and this brings rise to the need for an effective and efficient materials handling because of huge money invested on materials. All the activity involved in the movement of materials within an organization is termed “material handling” which thus, every operation that required the raising, covering or movement of materials from one point of operation to another is known as materials handling (Obuseh and Chikwendu, 2011) with an effective performance appraisal Rokana Organization Industry Plc.

Brief History Of Rokana Industry

Rokana industry Plc was incorporated on September 11th 1978 as a private limited liability company with objective of manufacturing of toiletries, household product and key personal hygiene product for the health care market.
The company maintains its head as Ajayi Lagos, while its factory is located at Plot 5 Mission Road, Umualum Nekede, Owerri in Imo State. It also maintained sale offices in Kano state and in Abia state.

The company started as a wholly indigenous private enterprise sector tier securities market of the Nigerian Stock Exchange, the company shares is nope being held by the Nigerian Public Individual Association and Corporate Organizations.


1.2 Statement Of The Problem

Here we are going to take a close look at certain problems which are problems of materials handling in an organization, firms and they are state as follows:

  1. The problems of designing and organizational structure suitable for material handling management operation.
  2. The problem of lack of coordination and interaction between various materials handling operation due to division of material handling functions amongst stores, purchasing production, materials management and logistics department.
  3. The problem of moving materials between the point of delivery the storage area and the point of use.
  4. The problem of use of wrong material handing development which leads to double handling.
  5. The problem of inefficient handling of materials which leads to premature stock handing.

1.3 Objective Of Study

The essence of material handling in an organization firm centres on the coordination and control of market handling cost, increase of capacity, improvement in contribution and as well as maximize profit. In view of the objective of the study the following are included:

  1. To find out if efficient handing materials can prevent premature stock deteriorations.
  2. To find ways of moving materials effectively between the point of delivery, the storage area and point of use.
  3. To find out ways of avoiding or preventing double handling of materials in the firm.
  4. To find out the contribution of materials handling with respect to profitability and success of the organization.

1.4 Research Questions

To empirically address some of the issues raised in the statement of research problem, attempt would be mad to answer the following questions:

  1. Does inefficient handling of materials lead to premature stock determination?
  2. Will efficient materials handling contribute to the success and profitability of the firm?
  3. Will the use of wrong materials handling devices lead to double handling?
  4. Is the organizational structural design suitable for materials handling management operation?
  5. Will efficient handling of materials reduce total, materials cost and on overall cost?

1.5 Significance Of The Study

The significance of this study centered on those who will gain or benefit from the study such as:

1. The researcher:

This is because the study is a requirement for the award of National Diploma in Purchasing and Supply by NBTE. Thus without the study certificate will not be awarded.

2. Other students:

It will serve as a data bank to other students who may be face with similar problem for reference purposes.

3. The firm of study:

On completion of the study, the research work will serve as a bank to a standard which firm of the based study would use to measure their performance. The result is that they would be able to know whether they have been doing things right or wrong and therefore learn from it.

4. The industry:

This study will create the necessary awareness that will enable the firm within the industry that have started doing things to do so.


1.6 Scope Of The Study

This study is designed to cover only Rokana Organizational Industries Plc, Owerri particularly the materials handling unit, and it is relationship with other functional department in the firm. Thus study enhances all the material handling operations in the firm like transporting of materials from one place to another, coordinating and enrolling of the various activities of materials handling and other related activities which are involved in materials handling.

The area of emphasis include the impact of effective of material handling in the firm more so the effective material handling in the firm. More so the research also carried out an indeed investigation on the reason why the consequent is not being adopted to the fullest despite the tremendous benefits derived from material handling.


1.7 Limitation Of The Study

In carrying out this research, I was confronted with certain number of limitations which include time problem and financial constraints. Other problems includes the distance of the firm covered during the research, the attitude of staff as they were very suspicious of the research mission and as a result were unwilling to release the necessary data needed. Finally the least constraint was the vastness of the area covered by the study. In view of this. Those areas were not all treated in details.


1.8 Definition Of Terms

Words having meaning and their meaning tend to differential directly under different contexts and usages. It is for this reason that an attempt is made here to clearly define the meaning of some working concept used in this study.

They include:

1. Material handling:

This is application of analytical method and equipment design consideration to the problems of storing, packaging and moving products and materials in any firm in the prescribed mode.

2. Double handling:

This has to do with the situation where materials are handed more times that required as a result of inefficiency within the supply chain management system.

3. Purchasing:

This is that function responsible for obtaining by purchase, lease or other legal means, equipment, materials, supplies and services required by a undertaking for use in production. It is said that part of the procurement which has to do with actual negotiation system.

4. Mechanical handling:

This has to do with the use of mechanical device of aids in the movement, storage and handing of materials.

5. Fixed path system:

This is a system that allows materials to be selected and positioned on coverage for movement along a fixed gang-way.

6. Non-fixed system:

This involves the use of manual effort or equipment to pick materials and move drops them at specified (non-fixed) spot.

7. Automated system:

This applies to a combination of different equipment to select, pick, position and or move materials from one sport to another.

8. Manual handling:

This is the natural way of handling materials by hand with the use of ladders, trolleys, sack truck etc.

9. Hand Truck:

The most used type is the wheelbarrow, which is designed for carrying small quantities of sand, gravel and other loose materials etc.

10. Hand Stackers:

This is made up of a vertical framework of angle iron carrying a platform which can be raised or lowered for stacking or un-stacking.

11. Chutes:

This is a form word or metal trough included at such and that artides will slide down when placed upon it. It is principally used for transporting stores from upper to lower floor.

12. Conveyors:

A conveyors is specially designed for the movement of goods and materials from one definite path and is used for transportation of materials over a long distance.

13. Fork lift Trucks:

Fork lift is described as the mechanical handling equipment that has a projecting arm or forks which are inserted below the platform of the pallet and raised to clear the ground up to say a height of 13 meters away.

14. Sack Barrow:

This is designed for bagged goods and they are used were in coming and/ or outgoing goods consist of number of different items of reasonable size and weight held in fixed locations in different parts of the building, for instance, machinery or transport spheres.

15. Pulley Blocks:

A pulley block is designed into a pulley system fixed to a overhead bean and fitted with a lifting hook at the end of the chain.


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