Assessing the Effect of Material Handling on the Profitability of a Manufacturing Company
CHAPTER ONE
Objectives of the Study
The 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
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Introduction
This chapter reviewed the literature written by other scholars concerning the topic of study. The literature review focused on the relationship between materials handling and the profitability of an organization; the types of materials handling systems; and the challenges to the profitability of organization.
Relationship between materials handling and the profitability of an Organization
According to Ondiek (2009) materials handling refers to the process of moving, controlling, protecting as well as storing materials such as goods, items, etc. for manufacture, disposal, and distribution or even for consumption. This process is very crucial because all the materials should be handled well in order to keep it safe, to reach its destination safely and to maintain their quality and condition. In other words, good materials handling is important. Good materials handling is important because it will help you:
According to Zanto (2008) Materials handling eliminates accidents. If good materials handling is applied, accidents can be prevented and eliminated as this means proper and careful handling is performed. This enhances the profitability of an organization in a sense that its workforce shall attain optimum output and the organization shall not incur expenses on compensating the injured employees since accidents are eliminated (Johnson, 1993)
According to Okpara (2008) materials handling reduces stress and effort. Through good materials handling, stress and effort can be minimized. If you are handling materials the right away and you are eliminating all the factors that would make material handling a risky and challenging such as a non-functional equipment, ineffective workers, etc., then materials handling would be a stress-free process. This will enable the management of the organization to shift their focus on the more pressing needs and objectives of the organization especially its profitability (Adeloye, 2010).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a assessing the effect of material handling on the profitability of a manufacturing company. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of assessing the effect of material handling on the profitability of a manufacturing company
Summary
This study was on a assessing the effect of material handling on the profitability of a manufacturing company. Four objectives were raised which included: 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 and to give future research room to improve on where the present research stops.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staff of KRPC Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Finding reveals that there is a positive relationship between materials handling and the profitability of the organisation and the researcher therefore concludes that:
Material handling aids the profitability of an organization in a way that it facilitates a shorter operating cycle, reduces the handling costs, eliminates unproductive handling of materials, reduces idle time for labour, eliminates factory hazards, maintains quality of materials, enables optimum usage of space, facilitates materials issues, facilitates better customer care, facilitates better quality products and timely production. Therebefore for a company to ensure its profitability, it has to take deliberate measures to improve and standardize its material handling system through mechanisation of this department.
Recommendation
The researcher recommends that organisations should invest in material handling equipment like cranes, conveyors, industrial trucks and others so as to enhance operational efficiency. This will lead to profitability
The researcher also recommends that organisations should prioritize the material handling function since it is a very vital cost center
The researcher further organizations should ensure prudent management of materials to minimize wastage of materials.
Material supply should be optimum to avoid “stock outs” while work in process.
Organizations should always take into cognizance the cost of production or price of raw materials before arriving at selling price
There should be good record system of materials for the operations of the organization particularly as it affects production.
Rate of spoilage and wastages should be minimized as much as possible and ensure that products pass quality control.
There is the need to train staff in the area of material management to further enhance the knowledge of the job.
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