The Impact Of Efficient Material Handling Method In A Manufacturing Organization (A Case Study Of Max Aluminium Industry, Owerri)

Project and Seminar Material for Purchasing and Supply (PS)

The Impact Of Efficient Material Handling Method In A Manufacturing Organization (A Case Study Of Max Aluminium Industry, Owerri)


The main aim of embarking on this project is to know the effective impact of material handling methods in a manufacturing company at Max Aluminum Industry.

This study attempts finding facts. If the company practices or applies the system of material handling effectively. It also sees to the functions and system applied in carrying out material handling work so as to maintain continuity of material handling.

In an organization, purchasing and supply is giving fill and adequate attention because it is hallmark in which such organization base to know the direction of its success.

In the same regards, those should be a level of stock taking because excessive store can cripple the cash flow and this endangers its liquidation.

Table Of Content

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table Of Contents

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problems
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Statement of Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Definition of Material Handling
  • 2.3 Method of Material Handling
  • 2.4 The Approach to Material Handling
  • 2.5 The Importance of Efficient Material Handling
  • 2.6 Efficiency in Material Handling
  • 2.7 Basic Consideration in Material Handling
  • 2.8 The Basic Principles of Material Handling
  • 2.9 Types of Material Handling Equipment
  • 2.10 Ways on which Materials Handling Equipment Can Improve Efficiency
  • 2.11 The Distinction between Direct and Indirect Material Handling
  • 2.12 How to Eliminate Risk in Material Handling
  • 2.13 Risk Involved in using Material Handling
  • 2.14 Assessment of Handling Problem and Need for Mechanization

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Questionnaire Design
  • 3.4 Sources Method of Data Collection
  • 3.4a Primary sources
  • 3.4b. Secondary Sources
  • 3.5 Population and Sample Size
  • 3.6 Sample Technique
  • 3.6.1 Survey
  • 3.6.2 Observation
  • 3.7 Validity and Reliability of Measuring Instrument
  • 3.8 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data
  • 4.3 Analysis of Data
  • 4.4 Test of Hypothesis
  • 4.5 Interpretation of Result

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References

Chapter One

1.0 Introduction

1.1 Background Of The Study

The impact of efficient material handling method in a manufacturing company. “Improving your material handling system return on investment”. It makes more sense than almost anything else you can do.

Material handling cannot be avoided in logistics but can certainly e reduced to minimize levels. The productivity potential of logistics can be exploited by selecting the right type of handling equipment.

The selection of material handling equipment cannot be done in isolation without considering the storage system investment in the material handling system which will be sheer waste if it is not compatible to the warehouse layout plan. The layout will create obstacle for free movement of equipment and goods resulting in poor equipment productivity.

Recent trends indicate preference for automated system with higher productivity to enhance the effectiveness of human energy in material movement.

Everyone wants more control. The more control you have, the better you perform. Similarly, good material handling systems gives you control on productivity.

Distribution manufacturing and warehousing are the areas where material handling plays a major role. To do these things well, you need control of processes equipment, of personnel, of space and also of time.
The basic questions frequently asked are:

  1. When do things get dons?
  2. How many people does it take to do them?
  3. Do your material handling system increase control?
  4. What is the cost involved?
  5. What is the up time of system?

In fact, material handling system power today’s efficient distribution and manufacturing facilities. It is the secret weapon in logistics operation for improving system productivity, enhancing customer serviced and speeding up outputs.

By gaining control of your warehouse, you gain control of your profitability. Efficient material handling system create savings that help directly to improve your hottom if your business relies heavily on manufacturing, warehousing, storage or distribution. The potential savings are perhaps your greatest opportunity.

If you suffer from damaged products, slow pick rates, a lack of space, disorganization or bottleneck. Don’t think throwing more people at it will solve the problem that is short term help at best and you will be stuck with ongoing costs which you cannot eliminate.

In the last several years material handling has become a new complex and rapidly evolving science for moving material in and out of warehouse many types of products and volume to be handled. The equipment is used for loading and unloading operations, for movement of goods over short distances.

The handling of material in warehouse is restricted to unitized form which requires smaller size equipment. However, for bulk handling of material at logistics modes such as ship yards ports and airports, different type of equipment is used.

In warehouse, material handling operation is performed at the following stages:

  1. Unloading the incoming material for transport vehicle.
  2. Moving the unloaded material to assigned storage place in the warehouse.
  3. Lifting the material from the storage place during order picking
  4. Moving the material for inspection and packaging.
  5. Loading package/ boxes/ cartons on to transport vehicles

1.2 Statement Of The Problem

This research study is on “The Impact of Efficient Material Handling Method in a Manufacturing Company, a Case Study of Max Aluminum Industry, Owerri”.

One of the problems is the complexity of the manufacturing process. This has been an age long problem.
The layout of the building in which the system is installed is also examined as well as the maximum load carried.

The next problem is that of designating and organization structure suitable for the material handling function. Some companies do not include all of the material handling name rather it assigns to an existing department (often the purchasing department). Another problem of material handling method is lack of coordination and perhaps integration between the various materials handling activities; in the course of this research the following problems were discussed. The problems are:

  1. Lack of experience and management policies on material handling and the equipment involved and as such, most materials handling system are hand led manually.
  2. Most material handling are purchased facilities for its equipment which often cause delay in operation.
  3. Lack of qualified and experienced personnel in the organization.
  4. The determination of material handling method requirement and scheduling the manufacturing process accordingly.

1.3 Objectives Of The Study

This entails how max Aluminum industry achieves its objective in the light of the above stated problems.

  1. To ascertain why the organization does not have any strong management policy with regard to material handling and the equipment involved.
  2. To find out who takes decision on buying and why the firm prefer buying second hand equipment to new ones and implication on the firms efficiency as well as effectiveness.
  3. To find out the implications of the firms organizational structure on the performance of material handling unit.

1.4 Research Questions

The researcher will focus on the following questions

  1. Do you think your organization’s policies with regard to material handling and the equipment required are adequate and effective?
  2. What do you think is responsible for the high rate of staff turnover in the unit?
  3. Do you think the maintenance practices and policies are adequate?

1.5 Statement Of Hypothesis

The following hypotheses have been stated in order to carry out the research work:

  1. Ho: Efficient material handling does not bring about cost reduction in manufacturing industry.
    Hi: Efficient material handling brings cost reduction and profitability in a manufacturing industry.
  2. Ho: Efficient material handling has no positive effects on the operations of manufacturing industry.
    Hi: There is a positive impact of efficient material handling method in a manufacturing industry.

1.6 Significance Of The Study

The research project is significant in many ways. It is significant in the sense that it will help to determine the view concept of its management quality or success depending on the industry by every organization number.

Many people will benefit from this research work, also market manager as well as purchasing and supply officials of various enterprises will find this work useful in analyzing business problem forecasting and planning for purchases and profitability future researcher in the area, under study will find the work too useful especially in the view of related literature and methodology of research.

It also gathered towards creating sound need for an appraisal of the application of material handling method in a manufacturing company – Max Aluminum.

This study is significant because it will increase the body of academic knowledge available as a research study. It is also relevant in the sense that it will serve as reference to future researcher on issues connected with the present research problems.

Lastly it will also serve as a data bank to studies in their project work.

1.7 Scope Of The Study

The activities of purchasing function in industry among the industries. They are the same throughout the country.

It has problems and objectives except in policies and management style at individual discretion this projects explores an efficient material handling which purchasing function improve the level of productivity in the organization.

This research work was carried out to reveal the method of material handling adopted its contributions in the effective operation with a partial reference to Max Aluminum industry to enable me carry on in depth study of the organization.

1.8 Limitations Of The Study

This study is limited to only Max Aluminum Owerri. Its limitation here is not that it is better than other organization but because during the course of the work study, the research encountered the following problem. They are as follows:

Time Factor:

It took the research enough time to collect this data since “Time” exist for nobody. The research had to schedule most of his time on the research till he found it difficult to meet certain appointment on time.


The researcher would have moved to various parts of the country to source data due to financial insufficiency which is a critical problem facing researchers. The researcher operated within his finances daily.

Insufficient Literature Material:

This are of research had not developed into some purpose so the researcher depends on primary sources of data and very limited secondary sources.


The distance of the case study was far from the researcher’s base.

Constant Power Failure By PHCN:

Due to unsteady power supply caused by PHCN, disappoints by taking the light unexpectedly and thereby putting the researcher into confusion, even some people in the organization do not give a reliable data or information to researcher. Problems associated with unreliable data or information and poor audience by respondents is a big limitation of this project.

1.9 Definition Of Terms


These are substance that serves as input in manufacturing a product in question. They may be liquid (water) or item.


They are tools or device that are used in production especially movement of materials like conveyors.


This means the movement of items


This is the term that relates to understanding of the entire unit which is a combination of all the necessary parts and components of all the equipment.


This is the aspect that determine the financial and other likely commitment in the area of material procurement and transportation.


They are material handling equipment that deals in very large loads not necessarily work with big volume but is relative free movement on its are and high cost.

Ware House:

This involves the physical handling and housing of parts and material either as was bought or in various stage of manufacture or finished product for sale.

Material Flow:

Material flow has to be maintained it the act and distribution are to be maintained must be transported from the point of storage to the point of production moved through the production returned to the stores and finally transported in and often through the distribution system.

Material Damaged:

It can be very expensive and will undoubtedly reduce the stock-life of many materials in the store.

The Case For Manual Handling:

This is the natural way to handle anything that is not too heavy and it should not be neglected or suspended without careful thought.

Position Of Store House:

This is a very important factor with reference to transport, the nearer the storage are is to the point of use, the less will be the expense of moving the item between dispatch and delivery.

Packaging Method:

This is a very important. Suppliers should be instructed to pack incoming goods in a convenient manner in such quantities that they must be handled is stored with minimum effort.

Selection Of Suitable Machines:

There are four main purposes to be served by the introduction of mechanical handling equipment in any organization.

  1. To credit for loads too heavy to handle
  2. To save time
  3. To save labour
  4. To save space
Store House Layout:

When considering the equipment of mechanical handling, it is advisable to consider the best form of storehouse that will suit a particular type of equipment.

Training Of Operators:

To get best services from a machine and to minimize damage to equipment, buildings and materials, the drivers and others concerned with the operation of any mechanical handling device must be both efficient and careful. They should be adequately trained and instructed in their duties.

The Cost Factor:

The cost factor is vital in terms of operational cost profit and overall of production in any organization depend a great deal upon the system or an untrained or badly trained driver can lead to serious accidents.

The Health And Safety Of Staff:

The health and safety of many staff who work in the stores and other operatives depend a great deal upon the system or an untrained or badly trained driver can lead to serious accidents.

Efficiency In Material Handling:

This is very important in all organization for production activities if handling is unavoided, it should be reduced to minimum by the use of conveyors, lifts, chates and tracks.

Lack Of Good Stores Location System:

When there is no good store location system, materials are often stored in the wrong area or position and have to be moved again later resulting to double handling.

Lack Of Good Communication:

When there is lack of communication between material handling and other department, it is essential the materials are only supplied in production as and when required.

Dispatch Of Materials:

This involves the selection of material or goods in their correct quantities making the necessary documentation arranging for delivery, loading and eventually making delivery of materials or goods for final destination.

Production Schedule:

The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference.

Manufacturing Schedule:

It is prepared on the basis of type of manufacturing process induced. It is very useful where single or few products are manufactured respectedly at regular intervals.

Obsolete Stock:

Those are materials whose demand does not exist any longer.

Poor Design:

Wrongly designed storehouse effects the activities in the store and cause handling of materials.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Introduction

The main aim of this study was to find out how the Max Aluminum Industry Owerri in terms of an appraisal of the application of material handling in Max Aluminum Industry which concerned itself with the effective management of material handling equipment.

The chapter one is summarized by the modern automated technology that is now available with its other sophisticated equipment can help material handling manager to handle complete movement of material efficiently.

The researcher applied several techniques getting information on the fulfillment of the researcher.

This chapter therefore, gives a summary of the study based on the data collected and the analysis made.

5.2 Summary

In chapter one of this research work, selection highlighted and explained are the introduction of the subject matter which is the need for effective planning and control in a medium size. It brought out the background of the study, statement of problems, objectives of the study, research questions, statement of hypothesis, significance of the study, scope of the study, limitations of the study and definition of terms.

In chapter two, it deals with the literature review of well known authors of relevant books used in the study.
The chapter three deals with the research design and methodology and procedure employed in this book. This includes the research design, questionnaire design, source/ methods of data collection, population and sample size, sample technique validity and reliability of measuring instrument and the method of data analysis.

The chapter four of this book deals with the professional and analysis of data presentation of data, analysis of data, test of hypothesis, interpretation of result.

The chapter five, deals with conclusion and recommendation of the study.

In conclusion of this research work, it will be of great importance of an appraisal of the application of material handling function is not regarded as a major function in some industries and as such not accorded the recognition that is required.

  1. Max Aluminum company recognizes that the material handling method employed on the raw materials and other finished products. The staff of more Aluminum Industry is one of the such that employed efficient system.
  2. The researcher wished to submit that only well properly programmed material handling activities of Max Aluminum with which help make profit by reducing cost. Efforts were made during the finding to look into problems determining the materials handling equipment needed for Max Aluminum. The problem purchasing of equipment. The problem of determining manufacturing requirement to suit the handling method and scheduling the manufacturing priorities either as a various stage of manufacture or as finished products. The problem areas include the nature of materials to be handled.
  3. The effective co-ordination of all these materials handling methods by company requirement with current as a solution to the current problem.
  4. It was observed that acquisition of material handling equipment to Max Aluminum industry accounted for about 50% of the expenditure in the materials related activities. Lack of care and maintenance may render materials useless. This type of situation should be avoided.
  5. When considering the employment of material handling it is advisable to consider the best form of store house layout that will suit any particular type of equipment.
  6. Efficient material handling is very important processes. It will enable an industry to continue its production without any interruption and will also ensure efficient delivery to finished good to customers.
  7. Materials must be transported from the point of storage to the point of production, moved through the production returned to the stores and finally transported in an often through the distribution system.
  8. Finally, the researcher wishes to state that this research work is not an end in itself but may be classified as a means to an end cognizance of the fact that some other peculiar problems may be contributory in some other industries than the one the researcher visited.

5.4 Recommendations

Having carried out a through study on an appraisal of material handling method in Max Aluminum Industry Owerri and having analyzed the finding the researcher gave the following recommendations.

  1. The researcher recommended that Max Aluminum industry Owerri should have a full fledge materials handling department to carry out all material handling activities.
  2. The industry should also employ trained and professional qualified drives and technicians to drive, inspect the material handling activities.
  3. The materials handling department should have the responsibility of storing the equipment as well as issuing them out to subsections or in other sections are user departments.
  4. Due to the importance of material handling in relation to the operation of these organizations. There is need for this organization to establish computerized material handling system.
  5. It is the assumption that the researcher has to take up the study to how Max Aluminum industries operate in terms of material handling systems.
  6. The determination of material handling method requirement and scheduling the manufacturing process accordingly.
  7. This is the natural way of handling materials by almost indefinite variety of gripe and postures.
  8. Mechanical handling covers the use of mechanics.
  9. That the correct size load is moved always against the largest possible loads to avoid multiple handling.
  10. That the other department concerned with materials handling are fully aware of the problem and limitations of the system equipment employed.

This will help to ensure that the demands placed upon the system equipment are not too great and also to avoid bottlenecks.

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