THE IMPACT OF EFFICIENT MATERIAL HANDLING METHOD IN A MANUFACTURING ORGANIZATION

THE IMPACT OF EFFICIENT MATERIAL HANDLING METHOD IN A MANUFACTURING ORGANIZATION (A CASE STUDY OF SKANA ALUMINUM INDUSTRY, OWERRI)

ABSTRACT

This project work entitled “the impact of efficient material handling method in a manufacturing organization” is divided into five chapters. The chapter one of the work covers areas such as the introduction, the background of the study, statement of the problem, significance of the study, research questions and definition of terms. The chapter two contain or discusses the literature review and other functions of the topic under study. Chapter three contains the research design and methodology, sources of data collection, population and sample size, method of investigation, sample techniques, validity and reliability of measuring instrument, method of data analysis. The chapter four of the work contains the presentation, analysis and interpretation of data result. Chapter four which is the last chapter of the work contains the summary of findings, conclusions and recommendation.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Material management is the branch of logistics that deals with the tangible component of supply chain specially, this covers the acquisition of spare parts and replacement quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping and warehousing the said parts. It is the planning, directing, controlling and coordinating those activities which are concerned with material and inventory requirement from the point of their inception to their introduction into the manufacturing process, it beings with the determination of material quality and quantity and ends with its issuance to per the schedule and at the lowest cost. Material management can deal with campus planning and building design for the movement of materials or with logistics that deals with the tangible components of a supply chain.

The goal of material management is to provide a unbroken chain of components for production to manufacture goods on time for the customers base. The material department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the organization using the correct carrier, material is generally measured by accomplishing on time delivery to the customer from the supply base, attaining a freight budget, inventory shrink management and inventory accuracy. The material department is also charged with the responsibility of managing new launches.

In some companies, materials management department is also charged with the procurement of materials by establishing and managing supply base. Other companies the procurement and management of the supply base is the responsibility of a separate department, the purchasing department is their responsibility for the purchase price, variance from the supply base. In large companies with multitudes of customer charges to the final product over the course to the final product over the course of a year these may be a separate logistics department that is responsible for all new acquisition launches and customers changes. This logistics department ensures that the launch material are procured for production and then transfer the responsibility to the plant material management. These are no standard for material management that are practiced from organization to organization. Most companies use Enterprise Resource Planning (ERP) system such as System Applications Products (SAP), Oracle, Business Planning and Control System (BPCS) Manufacturing Accounting and Production Information Control System (MAPIVS) and other system to manage materials control afford. Small concern that do not have or cannot afford EPR system use a form of spread sheet application to management material. Some other construction project use Barcode and Global Positing System (GPS) Material management System like Tranckum.