TABLE OF CONTENTS
page - - - - - - - - - - i
Declaration - - - - - - - - - ii
Page - - - - - - - - - iii
1.1 Background of the Study - - - - - - 1
1.2 Statement of the Problem - - - - - - 3
1.3 Objectives of the Study - - - - - - 4
1.4 Statement of Hypothesis - - - - - - 4
1.5 Significance of the Study - - - - - - 5
1.6 Scope of the Study - - - - - - - 5
1.7 Limitations of the Study - - - - - - 6
1.8 Historical Background of the Case Study - - - 7
1.9 Definition of Terms - - - - - - - 9
2.1 Definition of Material Handing - - - - - 10
2.2 Place of Management in a Production System - - 12
2.3 Handling of Materials in Production System - - - 13
2.4 Importance of Material Handling - - - - - 15
2.5 Material Sources and Uses - - - - - - 17
2.6 Stock Control - - - - - - - - 18
2.7 Material Requirement Planning - - - - - 21
2.8 Store Verification and Exercise/Procedure - - - 23
3.1 Research Design - - - - - - - 25
3.2 Research Population - - - - - - - 25
3.3 Sampling Technique and Size - - - - - 25
3.4 Methods of Gathering Data - - - - - - 26
3.5 Justification of Method Used - - - - - 27
3.6 Method of Data Analysis - - - - - - 27
3.7 Justification of the Instrument Used - - - - 28
Reference - - - - - - - - - 29
of the Study
Management, as practiced in business today, can be defined as “a confederacy of
traditional material activities bound by a common idea. The idea of an
integrated management approach to planning, comersion flow and distribution of
products materials form the raw materials state to the finished state. (Iornum,
above definition implies that material management is generally concerned with
the flow of materials from the source of supply through the production line to
the final consumers. This means that material management includes such function
as the primary responsibilities of purchasing plus other major procurement
responsibilities like Inventory Control, traffic, receiving, warehousing as
well as production planning and control.
Douglas also defined material handling as the aggregate of those ordinary
courses of business which are in the process of production of goods or services
to be available for sale.
are significant portion of most firms of assets which accordingly requires
substantial investment in order to keep these inventories from becoming
unnecessarily large, material must be managed effectively. In modern business
greater emphasis have being put in material handling. It concern in material
management is to provide materials in the right condition at the right time. It
implies that the handling procedures should be able to:
Retain appropriate stock level
Ensure proper use of stock
Ensure that inventory is fully amounted
Ater – defines material handling as the movement and protection of materials
goods and products through the process of maintaining, distribution,
consumption and disposal. Material handling should be controlled and carried
out properly if a huge standard of efficiency and cost effectiveness is to be
Bharabo defines material handling as the art and science of moving, packing and
storing of material in any form.
of the Problem
handling in manufacturing organization is an important aspect of production
process. Many companies engage diverse strategies to achieve organizational
goal through material handling.
control of material handling as it affects Kaduna Refining and Petrochemical
Company (KRPC) is the unavailability of material in store and proper
reconciliation of possible loss to business through interruption of production
or failure to met orders with the handling cost of stock. Here in Nigeria, a
cursory look at our economic problem will appear to suggest the non-adaptation
of materials management which is a product of our industrial philosophy that
has made our manufacturing sector over important dependent. Though, the
organization (KRPC) under the study has advanced stores and way of obtaining
their materials, but lack proper personnel to handle the material is a problem.
of the Study
following are aimed at realizing the following objectives:
Analyzing the impact of material
handling in KRPC.
To know the importance of material
handling in an organizational performance are as a whole.
To provide useful recommendation as
related to the study.
To give future research room to improve
on where the present research stops.
H0: Material handling has no effect on the profitability of a
H1: Material handling has effect on profitability of a manufacturing
of the Study
significance of the study is to assess the impact of material handling in KRPC
and also to suggest and make recommendation to the problem that they may likely
occur is material handling is not properly managed in an organization. The
research is of significance to me for the following reasons:
will provide a broad idea to the production company on how they can effectively
manage their material handling and minimize losses.
will idea for organization and enterprises in the aspect of material handling.
is highly pointed out that the cost material handling involves 40% to 50% of
total production cost. Therefore, considerable attention must be taken in the
handling also reduce accidents, greater job satisfaction, increase production
and saves time.
of the Study
research work is based on the existing literature. Secondary data and equally
information from primary source is obtained. The secondary data formed relevant
to the subject matter which are standard textbooks, journals, internet and the
company’s management guide.
primary data collected include questionnaire, observation are obtained by
sampling from the total population of the entire staff of KRPC management. The
aspect to be covered in this study are how organizational material handling
objectives are to be achieved.
of the Study
study of this nature would normally en tail investigation into a variety of
issues. This research work has covered a wide area than this but a lot of
constraints hinders the wide range of the study. As a result of this, certain
limitations will be imposed on the area to be covered which includes:
Financial Constraints which involves
need for transportation.
Limited time. The time given is too
limited for the research work which affect the researcher.
Inaccessibility of data to provide the
necessary information were difficult. Some of the staff that cooperated
were not in better possession of the
facts and figures necessary in this work.
Limited area of study, there are many
sections in the organization for all firms of materials. However, the
researcher’s intension is to concentrate only on the material stores for the
problems apparently posed serious limitations to this project and the
researcher has to work with the data available.
Background of the Case Study (KRPC)
decision to construct the third Nigerian National Petroleum Corporation (NNPC)
Refinery in Kaduna was taken in 1974 along with that of the second (NNPC)
refinery located at Warri. However, it was decided that work would commence on
the construction of refinery whenever the project of consumption petroleum
projects justified it.
early 1975, the view of the fuel shortages experienced then, the federal
government decided that work on the third refinery should be advanced. It was
envisaged that refinery that refinery in order to meet up with the fuel demand
then, based on the feasibility studies carried out which took into the
consideration the consumption of the various petroleum products within the
Northern Zone and adequate means of disposal for the surplus products. A Crude
Oil Capacity of 42,000 barrel per stream a day (BPSD) could be easily
the refinery was designed for a capacity of 60,000 barrel per stream daily it
was much later that the Federal Government decided that the capacity for any
refinery in Nigeria should not be below 100,000 BPSD. However, this would have
led to the production of large quantity of heavy fuel and on one hand the
practical and viable solution is reprocessing of the heavy fuel. In order to do
this, the whole project plan has to be modified so that what initially was
planned to be a simply hydro-skimming type of refinery was now developed into
refinery would now be able to produce wider variety of petroleum products some
of which should be lubricating base oils. Hence, it became necessary to import
suitable paraffin base crude oil from Venezuela, Kuwait or Saudi Arabia.
from KRPC are to include fuel such as diesel, kerosene, premium motor spirit
(PMS) and sulphor and those from the lubricating oil complex are base oil,
asphalt and wakes. The lubricating out complex of KRPC is the first of its kind
in West Africa and one of the largest in Africa. The consulting firm King
Willkinson of Hague, Holland in conjunction NNPC engineers, developed the plan
for the refining. The contract for construction of KPRC was awarded to Chiyoda
Chemical Engineer and Construction Company of Yohohama, Japan in 1977. The
project was completed and commissioned in 1980. However, the lube plants and
petro chemical plants were commissioned in 1983 and 1988 respectively.
refer to goods in different firms for different purposes such as raw materials
for production, maintenance, processing of finished goods.
Taken: This is a complete process of verifying the
physical quantity or balance with a view to ascertain the actual balance in the
Handling: It is a part of material management
that concern with the safety of material in transit, the regularity in delivery
and also the flow of the materials.
This is a place were materials are kept for safety.
Stock: Extra inventory held to serve as a butter against
possible stock out situation.