TABLE OF CONTENTS
Title page “ “ “ “ “ “ “ “ “ i
Declaration “ “ “ “ “ “ “ “ “ ii
Approval “ “ “ “ “ “ “ “ “ iii
Dedication “ “ “ “ “ “ “ “ “ iii
Acknowledgement “ “ “ “ “ “ “ “ iv
Abstract “ “ “ “ “ “ “ “ “ vii
tables “ “ “ “ “ “ “ “ viii
CHAPTER ONE: Introduction
1.1 Background of the study “ “ “ “ “ “ 2
1.2 Statement of the problems “ “ “ “ “ 3
1.3. Objectives of the study “ “ “ “ “ “ 4
1.4 Significance of the study “ “ “ “ “ 4
1.5 Delimitation of the study “ “ “ “ “ “ 6
1.6 Research questions and/or hypothesis “ “ “ “ 6
1.7 Historical background of the case study ‘ “ “
1.8 Definition of terms “ “ “ “ “ “ 10
2.1 Store “ “ “ “ ” “ “ “ 12
2.2 material handing “ “ “ “ “ “ “ 18
2.3 store house location systems “ “
“ “ “ 30
2.4 storage facilities/equipment “ “ “ “ “ 32
design layout “ “ “ “ “ “ “ 41
CHAPTER THREE: Research methodology
3.1 Area of study “ “ “ “ “ “ “ “ 48
3.2 Research design “ “ “ “ “ “
3.3 Population sample size and sampling
techniques “ “ “ 49
3.4 Instruments of data collection “ “ “ “ “
3.5 statistical techniques used in analyzing data “ “ “ 50
3.6 Statistical Techniques Used In
Analyzing Data “ “ 51
CHAPTER FOUR: Data Analysis and Presentation
4.1 presentation and analysis of data “ “ “ “ 53
4.2 Test of hypothesis/research questions “ “ “ “ 54
CHAPTER FIVE: Summary, Conclusion and Recommendation
Summary of procedure “ “ “ “ “ “ 58
Discussion of finding “ “ “ “ “ “ 59
Implication of the findings “ “ “ “ “ 61
5.4 Conclusion(s) “ “ “ “ “ “ “
5.5 Recommendation(s) “ “ “ “ “ “ 63
5.6 suggested for further study “ “ “ “ “ 66
Bibliography “ “ “ “ “ “ “ 67
objective of the store function is to provide service to the operating
functions and these services cannot be provided without proper provision of
The impact of storage facilities on
store efficiency is to ensure that goods regularly required are stored
accordingly. Adequate care of materials held within the organization is very
important and stores, staff must be well trained in ensuring that materials
held within the store are well taken care of storage facilities such as bins,
racks, shelves, flat pallets, spillage post, box pallets, stock staking silos,
tanks etc. some methods of storage are associated with particular methods of
handling and therefore, the task of handling materials or stock and that of
storage must be taken together.
provision of materials handling is another essential objective of the store
function storage procedure also encompasses store design and store location
effectively done without taking into consideration, the design of the store
which involves planning so that stocks are conveniently grouped and placed for
should also be designed in such a way that easy flow of items or material held
will be ensured without hindrances cause by the choosing of gang ways or
blocking to access. Store location
system is also important for ensuring proper storage of materials or stores.
This is to ensure that stores can be found when they are wanted with the
minimum waste of time. The location system to be adopted for certain store
house must be decided. For example it may be fixed or random. All goods
location system therefore must not only locate the them but also conjure up a
mental picture of its precise position within the store house. In many
organizations both public and private sector, much emphasis has been laid on
procurement and less storage and its associated functions.
This research work is to review the
storage procedure and its impact on stores efficiency and in doing this, the
storage procedure adopted by Peugeot Automobile Nigeria limited (PAN) kaduna shall be looked
into to ascertain its effect on stores efficiency.
1.1 Background to The Subject
Eighty percent (80%) of organizations
expenditure are on materials. This materials when acquired are kept in the
store and properly documented. The issuance of this materials has to follow
official issuing regulations.
Since stock of materials represent money, it
is important to research into how this materials are received, kept and issued
with the aim of comparing the practical administration with the theoretical
knowledge acquired in school over the years. It is also hoped that suggestions
and recommendations will be made regarding modern, scientific and better
systems of storage and material handling.
1.2 Statement of Problem
enormous varieties of materials in store house of all kinds, and yet there are
increasing varieties every now and then because of advancement in technology
due to innovation and renovation. These have brought about a careful and
important role to be played by the store as appropriately as expected.
So many damages has been caused to
materials in the store and which has led significant losses, the material
handling, improper store design, location system, storage procedures etc. Many
materials have lost their ability due to poor storage facilities, many other
materials that should be stored or kept in cold place are exposed to light in
different forms have deteriorated due to
this poor storage procedures and
lack of qualified or experienced and adequate staff to manage the store
problems do not just arise but as a result of poor storage procedures. Bad
management and financial constraints which hinder the purchase of adequate
handling equipment of qualified personnel.
1.3 Objective Of The Study
project is intended to look at the problems associated with the storage an
material handling and it’s efficiency in Peugeot Automobile Nigeria limited.
1. To know the
contributions of store to the development of an
2. To know the objective of storage of
materials contribution to the organization.
3. To knew the methods of materials
handling suitable for Peugeot.
Automobile Nigeria Limited.
1.4 Significance of The Study.
research exercise is conducted primary to meet the requirement for the award of
Higher National Diploma in purchasing and supply of kaduna polytechnic.
The aim is also to express my concecptual
knowledge in the areas of storage and materials handling efficiency and to know
how materials are being stored and handling in Peugeot automobile Nigeria
researcher choose this topic to highlight the inherent danger and consequence
of adopting in proper storage and handling of material in Peugeot Automobile
Nigeria limited kaduna from suppliers to the finished product with a view of
providing solution or making the industry to take necessary corrective
realistic measure of storage and handling of material and employ services of
skillfull, honest, qualified and intelligent personnel to handle the store. If
the solution to be provided in the
research work are applied to store and handling of material of the
company (PAN) it will show the impact in an organization efficiency and
vital reason of the study is to contribute to the existing literature in the
area of storage and handling of material in store house for future references.
It will enable a lay man in the profession to have first hand information on
how proper storage and handling of material is carried out in store. Also the
students of the department and other department will find this project as an
important and relevant source of literature review in the area of handling
material. Further, the study will suggest ways that the company can handle
material on store efficiency.
1.5 Delimitation of the Study
This research work
will cover the areas in which storage and material handling is based on
most especially the place under study witch is (Peugeot Automobile Nigeria
Limited) the way they produce and the objective of material handling in their
organization, store efficiency and the way the storage corporate with organization
and the techniques used in store efficacy and how to store material in order
to achieve the desired goals and
objectives of the organization which is (Peugeot Automobile Nigeria
1.6 Research Question
What is the contribution of store to the development
of an organization.
How do the objectives of storage of materials
contribute to the organization
What are the methods of materials handling, suitable
for the case study.
1.7 Brief History of Peugeot Automobile Nigeria
automobile Nigeria (PAN) was incorporated in December 1972 as limited liability
companys principally to produce all sell Peugeot cars and provide a platform
for the development of middle and lower industries. PAN formally commenced
production on 14th march, 1975 with the initial production capacity
of 240 cars per day in two separate shifts, bringing the annual capacity at
that material time to 60,000. However, between 1980 and 1981 the production
capacity improved substantially to 90,000 cars per annum.
Automobile Nigeria limited (PAN) is situated on a total surface area of 330,000
square meters, the equivalent of 82.5 acres. It has a total free space area of
177,200 square meters, which underscore the fact that the company in the course
of further development will still have enough land space in the near and remote
future. As its incorporation in 1972, PAN had the following structure
1. Federal government of Nigeria = 35%
2. Bank of industries = 5%
3. Automobile France = 40%
4. Kaduna state government = 4.7%
5. Katsina state government = 5.3%
6. SCOA (Nig) plc. = 5%
(Nig) Plc = 5%
year 1975 and 1986 (approximately 12years), PAN was producing a total of
415,870 cars perannum. The models of Peugeot being produced then were 504Gl,
504sw/ac models, save during the initial two years of its production, when it
briefly produced the 404 salon model,. Between 1982 and 1998, the 505gl/sr
models were added to the list of brands produced by the company. In the same
period, the company added the 505 Gl and ST evolution. Subsequently the
306salon model come on stream between 1995 and 2005, while 406 salon was
introduced into the market where it has remained since 1999 to date.
Number of employees
Total (708), management (32),
Change of Ownership a New Beginning.
phase of the historical background of PAN takes off from the privatization
policy of the federal government of Nigeria. The policy offered
opportunities to indigenous companies to bid for and acquire majority shares in
public enterprises. It was this policy that catalyzed a core investor, messrs
ASD motors limited, into acquiring majority shares in PAN, leading to its eventual
take over of PAN management in the year 2007. The change of management to the
current one represents a paradigm shift which may be described as “ anew
beginning “ being the end of an era and beginning of a new one, hence, our
current reference to the company as “ the new PAN,” spelling new hope and
The new ownership structure of PAN
1. ASD motors limited =54.87%
2. Federal government of Nigeria
3. Automobiles Peugeot of France =10%
4. Bank of industries
5. Kaduna state government =4.7%
6. Katsina state government =5.3%
7. SCOA (Nig.) plc. =5%
8. UTC (Nig.) plc.
organization chart of PAN ltd is structured to enhance efficient and effective
operations. At the apex of the pyramidal chart is a board of headed by a
chairman. The general management team which oversees the day to day activities
of the company is headed by managing director assisted by a deputy managing
director and supported by four general managers whom run the affairs of the
company’s four major divisions, which are namely: industrial, commercial,
finance and strategy and corporate resources.
Products Manufactured And Marketed
brand of motor vehicles (206 saloon, 207, 307 saloon and Hatchback, 406, 407,
Saloon and Station Wagon, 607, Partner, Expert, and Boxer)
1.8 Definition of terms
Storage: the management of store
houses and stock yard
operation of handling of storage
equipment, the safe custody and
protection of stock.
Store House: A building where items of stores are kept, pending
the time they are needed.
Stores: It refers to goods held in the store houses and stockyards, it covers
finished product awaiting dispatch to consumer scraps and other items.
Material: these are components, spare parts, raw materials that are kept, pending the time they are needed.
Deterioration: means the materials that is damaged in their
original quality or value.
Bin Bin: The type of
storage facilities used in holding most of the stock items required for normal
issue and from which most issues are made.
Racks: Are use for items
which are too big or heavy for bin accommodation.
Stock: the quality of goods available or supplied into the store
Obsolesce: this is a situation
where materials bought are getting
useless but not yet useless.
Obsolete: Materials are
regarded as being obsolete when it is no longer useful for the purpose
for which they are needed.
are used to move stores from receipt to bins from picking
through placing to dispatch or from storage area to maintenance and
Inspection: examining object for
identification or checking it for verification of quality or quality of its
Quality: Is the totality of features and
characteristics of a product and services that bears on its ability to satisfy a given need.
Quantity: refers to the value or amount of a commodity required for a
particular purpose or that can be more economically purchased at a particular