AN APPRAISAL OF THE EFFICIENT MATERIALS HANDLING IN A MANUFACTURING ORGANIZATION

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. Chapter two contains or discusses the literature review and other functions of the topic under study. The chapter three contains the research design and methodology source of data collection, population and sample size, methods of investigations. Scope and limitation of the study the chapter four contain the precaution and analysis of data, analysis of the data and interpretation of result. The chapter five which is the last chapter of the work contains the summary of findings, conclusions and recommendation.Download complete project

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY
Material management is the branch of logistics that deals with the tangible components of supply chain. Specifically, 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 requirements from the point of their inception to their introduction into the manufacturing process, it beings with the determination of materials 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 deal with the tangible components of a supply chain. Specifically this covers the acquisition of spare parts and replacements quality control of purchasing and ordering such parts and the standards involved in ordering shipping and warehousing the said parts.
The goal of material management is to provide an 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, materials is generally measured by accomplishing on time delivery to the customer on time delivery 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 is also charged with the procurement of materials by establishing and managing a supply base.
Other companies the procurement and management of the supply base is the responsibility of a separate department. The purchasing department in their responsible for the purchased price variance from the supply base.
In large companies with multitudes of customer changes to the final product over the course of a year there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch material are procured for production and then transfer the responsibility to the plant material management.
There are no standards for material management that are practiced from organization to organization. Most companies use ERP systems such as SAP. Oracle, BPCS, MAPICS, and other systems to manage materials control afford. Small concerns that do not have or cannot afford ERP system use a form of spreadsheet application to manage material. Some other construction projects use barcode and GPS material management system like Trackem material management is not a science and depending upon the relevance and importance that organization officials place upon controlling material flow. The level of expertise changes some companies place material management on a level whereby there is a logistics director, other companies see the importance level as managing at the plant level by hiring an inventory manager or material manager, and still other companies employ the concept that the supervisors in the plant are responsible accompanied by a planners. Because there are no standards there is only best practices of any particular business sector that are widely used. For example the generation or releases to the supply base comes in many forms from the level that requires sending facsimilies and PDF files. The EDI information exchange, to the ultimate practice of a supplier web base site.

HISTORY OF MAX ALUNINIUM INDUSTRY OWERRI
Max Aluminum industry is a privately held enterprise. The company leadership is dynamic and has strong roots and experience in commodity processing business with a proven track record of building growth and success. Max Aluminum company is named after the tribal name for killer whales. Skana means killer demon; supernatural power, killer whales are known for their intelligence, strength in numbers and swift powerful movements. Like a killer whale, the investors or skana aluminum company look to move swiftly in numbers to revive a business that can be great asset to the Midwest and to Wisconsin. With large capital commitments for year one and two, the leadership team projects an extensive customer base with the potential for global exports max aluminum company continues a long history of aluminum manufacturing in North America and the Wisconsin lakeshore. This history extends back to the 1900’s with the formation of the aluminum Goods manufacturing company and establishment of the branded “MIRRO” cookware product line in 1918. in 1983 the company was sold to Newell/ Rubbermaid and today, lives on as Skana aluminum.
The revitalized company places an emphasis on producing aluminum coil and blanks in the open market. The art of aluminum manufacturing is bred in the talented employees of this community. Incorporated in 2009 Skana’s objective was to purchase, rehabilitate and operate the shuttered rolling mill bringing it back to life.
We are continuing the legacy of aluminum manufacturing on the lakeshore by building a company, a community and friends.

FIRST LEADER OF MAX ALUMINUM COMPANY
Thomas R, Testwudie Sr. utilized his business skills and people skills to climb the corporate ladder through sales to chairman and CEO of schreier malt company of Sheboygan Wisconsin mr. testwuide sr. ran schreier malt company from 1971 until the sale of the company of Cargill in 1998. during his time as president, chairman and chief executive officer of Schreier malt company, Mr. Testwuide sr. led the company through two major subsidiary purchases of prairie malt ltd. Of Saskatcheiran, Canda and CUC-malt ltd. Of Nanjing, China.
During his career, Mr. testwuide sr. has been recognized on an international scale for his business success. In 1994 he was the recipient of Wisconsin manufacturer of the year Grand Award and in 1996 he was the Recipient of outstanding foreign investment Award, Nanjing, China. Mr. Testwuide sr. has served on various industry, bank and charitable boards of director, including: Barley malt institute, U.S Brewer Association, Wisconsin manufacturers and commence security, financial service bank and st. Nicholas Hospital. Mr. Testwuide sr. was a member of young professionals organization until 1995. currently, Mr. Testwuide sr. is active with multiple business organizations including. Chairman and CEO of Plymouth foam products and chairman of the Board of torginol, Inc as well as others most recently, Mr. testwuide sr. led a group of investors to purchase out of receivership and re-commission the koening and vitas Aluminum company now operating under the name Skana Aluminum company in Manitowoc Wisconsin. Mr. testwuide sr. is serving as the chairman and CEO of the aluminum mill and will return 75-100 jobs to the community during 2010.

1.2 STATEMENT OF THE PROBLEM
Problems related to managing the flow of material can be found in every organization the efficient management of materials plays a key role in the successful completion of a project. The control of material is very important and vital subject of every organization and should be handled effectively for the successful completion of a project. Material account for a big part products and project cost. The cost represented by material fluctuates and may comprise between 20 – 50% of the total project cost and sometimes more some studies concluded that materials account for around 50 -60% of the project cost (Stukhart 2007 and Bernold and treseler 1991) materials are critical in the operations in every industry since unavailability material can stop production in addition. Unavailability of materials when needed can affect productivity cause delays and possible suspension of activities until the required material is available. It is important for an organization to consider that even for standard materials, there may be significant difference in the data that the material was requested or data when the purchase orders was made and the time in which the material will be delivered. These delays can occurred if the quantities needed a large and supplier is not able to produce those material at that time or by any other factors beyond the control of the organization. The organization should always consider that purchase of material is a potential cause for delay (Willis 2008) unavailability of materials is not the only aspect that can cause problems. Excessive quantities of materials could also create serious problems to managers storage of material can increase the costs of production and the total cost of any project when there are limited areas available for storage. The managers have to find other alternatives to organization the material until they are needed. Some of these alternatives might require re-handling of material, which will increase the costs associated with them. Provisions should be taken to handle and organization the material adequately when they are received special attention should be given to the flow.

1.3 OBJECTIVES OF THE STUDY
The following are the objectives of the study:

• Low prices to be lowest – includes transportation enhance profit.
• High inventory turnover – value of inventory to be low relation to sale reduces storage costs.
• Continuity of supply- alternative sources, captive suppliers flexible suppliers.
• Low payroll costs – low operating costs of material management personal
• Favorable supplier relations – supplier development
• New material and products – working closely with design and research departments for development of new material and products.
• economic make – buy – coordinating and assisting other department in make – buy decisions.
• Standardization – coordinating with design departments in reducing no of items.
• Product improvement – contribution towards product improvement by giving appropriate inputs and assisting design department.
• Inter departmental harmony – success of material management department depends on the success of other departments. Items relations are to be harmonious.
• Forecasts – forecasts in terms of prices, availability and general market conditions are to be regularly monitored towards taking important business decisions.

1.4 SCOPE OF THE STUDY
The study focuses on the role of materials handling in materials management of a manufacturing organization focusing attention on max aluminum industry owerri the study does not exceed the area of study.

1.5 SIGNIFICANCE OF THE STUDY
Raw material from a critical part of manufacturing as well as service organization in any organization, a considerable amount of material handling is done in one from or the other. This movement is either done manually or through an automated process. Throughout material handling process significant safety and health challenges are presented to workers as well as management therefore, manual material handling ranges from movement of raw material work in progress finished goods rejected, scraps, packing method of moving, packing and storing of material in appropriate and suitable location. The main objectives of material handling are as follows:

• It should be able determine appropriate distance to be covered.
• Facilitate the reduction in material damage as to improve quality.
• Reducing overall manufacturing time by designing efficient material movement.
• Improve material flow control
• Creation and encouragement of safe and hazard free work condition.
• Improve productivity and efficiency
• Better utilization of time and equipment

1.6 RESEARCH QUESTIONS
The following questions are derived the course this study:

• Effective material handling does it create any room for effective utilization of material in the stores.
• It is not of any use of any importance of apply proper documentation of stock in inventory in any organization.
• manufacturing being a government baby. Which does not operate no profit motive does not require stock control and material management procedure.

1.7 LIMITATION OF THE STUDY
In the course of research work, the researcher head some limitations to carrying out the research work.
The major constraints which served as limitations to the study are as follows:
Financial Limitations:
Finance was one of the major constraints due to limited finance the researcher was not able to travel far and wide to gather all information necessary for the research work. Also as a student having much work load which demands for money all served as limitation to the study.
Time constraint:
The time frame given for the project work was very short. It also affected the researchers research work.
Lack of information:
Lack of information from the respondent also served as a limitation. The respondent refused to give out information to the researcher thinking that the researcher is a government official who gathering data for the collection of tax in the future.

1.8 DEFINITION OF TERMS
The following terms are defined from the course of this project work.
INVENTORY MANAGEMENT: Inventory means stock of raw material; semi-finished and finished goods maintained by organization.
INVENTORY CONTROL: It means stocking adequate number and kind of stores so that the material are available whenever required scientific inventory control results in optimal balance.
RAW MATERIAL: Material that the organization converts into processed parts this might include parts specifically produced for the organization and parts bought directly off the shelf (i.e. bolts, nuts).
PURCHASED PARTS: Parts that organization buys from outside sources (i.e. tower case for a computer).