The Impact Of Material Handling Cost Reduction Effort In Public Institution
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The Impact Of Material Handling Cost Reduction Effort In Public Institution
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The Impact of Material Handling Cost Reduction Effort In Public Institution

(A Case Study of PHCN, kaduna)

                                             

ABSTRACT

This project work is centered on The Impact of material handling cost reduction effort in public  institutions a case study of PHCN kaduna. It begins with the first chapter that deals with the background of the study which gives brief introduction about the subject matter under study. Statement of problem which is the reason why the researcher under take the study to exploit such problem and come up with recommendation which will be beneficial to the organisation and entire society. Research question is drawn up which is in line with the objective of the research work to be open up to get variables for questionnaires to be administered. Chapter two deals with the review of previous work carried out by other authors on a similar topic. Chapter three deals with the research methodology with research design correlation studies to establish the relationship between material handling and profitability. The study have a sample size of 50 which is 20% of the population of 250 drawn from materials management related department and the sample size selected randomly and questionnaire were administered to them for their response. The findings of the study show that material handling have relationship with the profitability of the organisation. Thus it was concluded that material handling in PHCN is not properly carried out, because replenishment drive is not according to actual materials requirement. Therefore recommended that material handling unit should be established and the use of actual materials requirement should be the principle upon which material replenishment is carried out to ensure that materials are not hold in excess and also not.

 

CHAPTER I

1.1   Background of  the Study

 

During the Second World War after the industrial revolution, industries sprang up in hundreds every day. As a result of the increase in industries, raw materials became scarce. This made production to be complex. Accounts needed to be prepared and customers needed to be attended to within a short period of time. Alternative sources were required and new product needed improvement and development. With this problem in mind, the material management concept was introduced with the view to solving them in a scientific manner to achieve optimal success and reduce production cost. By the 1950s and 1960s an uneven transition from the old concept of material management as clerical function to a newer function or concept of material management emerged which embraced inventory control, distribution and buying function. By late 1960s material management was recognized as an important function in an organization. Thus, the importance of material management lies in the fact that any significant contribution made by the materials manager in reducing material cost will go along way in reducing production cost and improving the profitability and the rate of return on investment. Today, materials are the livelihood of any industry, no industry can operate without them, they must be made available at the proper time, in proper quality, at the proper place and at the proper price.

 

Material handling is an integral aspect of material management that is concerned with the means by which materials move in the  materials are moved from one stage of processing to the other in such a way that processing, safe movement and use of space is enhanced. Hence, it is also an integral part of a production process which does not really contribute to the value of what is being processed, but an integral part of a production process which does not really contribute greatly to the processing cost. It is for this reason that this research work tends to take a clerical look at the significance of material handling and its impact on production cost.



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