STORE DESIGN ON MATERIALS HANDLING A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (PHCN) KADUNA

STORE DESIGN ON MATERIALS HANDLING A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (PHCN) KADUNA

Chapter I:

1.1     Background of the Study

A store is an essential limb of an organization. It is the depository of all materials required by the organizations in the organization and supplies materials as an when required. It is important to note that the store is an area of great expenditure in manufacturing and assembling plant. It is true that store function is a major cost centre which make use of 70-75% annual budget of the firm (Dangana 2005) and thus it can affect saving and therefore contribute significantly and therefore contribute significantly to the profit of the organization. However, in today’s highly competitive and globalized business world, store design is of great importance as a substantial number of instances have show that people charge with the function and responsibility of designing and managing the store are given little or no attention in the organization. This may be as a result of poor understanding store design or inappropriate application of it. More so, the variety of items sometimes, store is so large that a planned system is necessary to keep the secured and in order. The stored items should be identified and issues with minimum effort and minimum time. Thus this calls for a store structure suitable to carry on various activities efficiently and productivity and developing a system that ensure safety of men and materials. Most often the design of a store house determiners to a large extent the materials movement pattern and the limited type of handling equipment that can be used. This result in fact that most customers demand for goods and services within and outside the organization are incremental in nature as they opt for speedy, convenient and reliable delivery of materials and service. However, the need to curtail the amount of waste and improve the level of customer’s service within such organization has brought the use of the term store design ad its impact in materials handling. It should also be noted at this junction that any knowledge of how a store should be designed must incorporate the knowledge of how a store should be designed must incorporate the knowledge of how materials would be moved. Therefore, the research work develops the effective utilization of store design and it prospect in the organization with reference to enhancing and ensuring effective materials handling in the organization.

1.2     Statement of the Problem

One vital decision that firms make is how to design and where locate their storage facilities. This decision goes a long way in determining the extent to which the firm will achieve its objectives. That is to get products and services to customer faster and at lesser cost to the firm and customers. Neglecting to manage the activities effectively can result in inefficiencies that out weigh gains or benefit in good management of such vital activities as transportation materials handing, inventory management and maintenance and information flow. However, organizations are faced with various problems to design a store house. Some of these problems may include; construction cost, cost of installation, cost of land, rate levied upon the new building by local authority and cost of survey, planning designing. Other problems may also include cost of materials handling i.e (equipment needed to load and off load materials and also for transporting materials), cost of storage equipment needed, and to building contact and for other incidental cost.   As a result, a poor storage design will result in poor performance such as materials damages and obsolescence, theft and pilfering, poor communication network, difficulties in the movement of materials within and outside etc regardless of the firms position in the industry or its product acceptability in other location.

1.3     Objective of the Study 

• To examine the effect of store design on materials handling
• To ascertain difficulties associated with store design on materials handing.
• To identify necessary solution to curb these difficulties.
• To determine the degree of importance of placed to store building in PHCN.

1.4     Significance of the Study

The findings of the research will be useful to power holding company of Nigeria (PHCN) Kaduna as it will enhance or improve the store design system and techniques effectively and efficiently. Prospective researchers may find findings of the researcher as a reference point particularly for those who may wish to carry out further research on the related field under study. To the entire populace, that come across this research work, the research work will provide them with the knowledge on the important store design on material handling is to an organization and it will also add value to their knowledge. Also it will serve as pre-requisite for the award of Higher National Diploma (HND) in Purchasing and Supply management.

1.5     Scope of the Study

This research work is based on the effects of store design on materials handling with consideration to power holding company of Nigeria (PHCN) Kaduna. Ali Akilu road Kaduna north local government. The research work will be centered on the effect of store design on materials handling in the organization with regard to the management and staff of PHCN. The findings of this research work will primarily base on the data from the stores, distribution, marketing and production management of power holding company of Nigeria located at Ali Akilu road kaduna north local government kaduna.

STORE DESIGN ON MATERIALS HANDLING A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (PHCN) KADUNA