Impact of Storage and Material Handling on Store Efficiency; A Case Study of Peugeot Automobile Nigeria, Kaduna

Impact of Storage and Material Handling on Store Efficiency; A Case Study of Peugeot Automobile Nigeria, Kaduna

Chapter One

Objective Of The Study

This project is intended to look at the problems associated with storage an material handling and its efficiency in Peugeot Automobile Nigeria Limited.

To know the contributions of a store to the development of an organization.
To know the objective of storage of materials contribution to the organization.
To know the methods of materials handling suitable for Peugeot. Automobile Nigeria Limited.

CHAPTER TWO:

Literature Review

In this chapter the researcher will attempt to review related literatures, articles and papers as presented by other scholars, writers, and researchers with the aim of comparing the different authority in order to have a broaden perspective of the topic of study and to make comparism with existing knowledge.

Store

Study guide for module one of Cambridge international college UK (2009) defined store as “an area set aside in which all the items and materials required for production and/or for sale/distribution are received, where they are housed for safekeeping and from which they will be issued as required.

Jain and Aggarwal (2008) defined store as an unworked material. waters (2003) stated that “stores takes care of materials held in stock until they are needed. Stores makes sure that materials have the right condition, treatment and packaging to keep them in good condition, and are available quickly when needed (page 32).

Types of Stores

Jain and Aggarwal (2008) states that: stores are generally of the following categories:

Raw Material: as required from outside through this may be the finished product of another manufacturer, example cements casting aluminum tubes etc.
Materials in process: which have been changed or part assembled and now are in process.
Finished products – after passing final inspection.
Supplies– used in production process but which do not become part of the product example grinding wheels, oils, paper forms etc.
Equipment– hand tools, gauges, machine parts which could be classed as expendable example chucks, jigs gears etc.
Chemicals– carbide, sulphuric acid, nitric acid
Scrap– turning/boring scrap, off-cut etc.
Inflammable– petrol, kerosene oil etc (P. 424)

Empties and package – empty drums, wooden packages.

Chapter Three:

Research Methodology

For any research work of the nature to be successful, it depends largely on the relevant data collected.

This can only be attained through a well designed methodology for the research. There are various method to a research, ranging from exploratory approach, where new issues are addressed, this compelled the researcher to be critical and endavour to understand all elements in details which are available and relevant to the study of the project. This method is good where the researcher is undergoing a study on a new phenomenon.

Casual research method can also be applicable which seeks to establish the relationship between what happen and it’s causes. This can be in line to the laboratory experiment, though they are sometimes used in social science research.

The other method a searcher may use as a guide in a research process is the descriptive one. This method relies heavily on both primary and secondary data, it lead itself to proper blending of theories within the organization. It is often used to test and prove on existing concept in the following:

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Describe the characteristic of certain groups of people or society.
To make specific predications
Estimate the proportion of people in a specific population who behave in certain ways.

This method, however, enables the researcher to place much emphasis on various materials, which have already been expressed and would provide the framework or analyzing finding in this study.

Area of the Study

The study was carried out in Kaduna south industrial estate where the company under study was located. It covers a critical analysis of the activities of stores unit of the organization and performance impact of the topic under review. The case study is located at plot 1144, Mallam Kulbi road, Kakuri industrial estate.

Research design

This refers to the framework, which specifics how data has been collected and analyzed in this research work.

The research design used in this work is a descriptive design. A descriptive design is concerned with the collection of data for the purpose of describing and interpreting existing condition, prevailing practices, attitudes and ongoing process.

The case study research design enables the investigator to have on in-depth study on the existing practices in Peugeot Automobile Nigeria limited Kaduna and the possibility of introducing the principle of impact of storage and material handling on store efficiency on the activities of Peugeot Automobile Nigeria Limited.

Research Population

Research population can be said to mean the observation elements of particular characteristics, which could be people, group or organization etc, that present the same characteristics in a research. The research case for this study is the Peugeot Automobile Nigeria Limited staffs. However the survey is the store department staff and there staff of the organization. The survey population is 350 out of which the sample size of (25) respondents was chosen for the purpose of the study. The sample size of the twenty five (25) respondents consists of fifteen (15) members from stores while the remaining ten (10) from other departments and sections.

Chapter Four:

Data Presentation and Analysis

Presentation And Analysis Of Data

This research focus on the presentation and analysis of data collected from the management staff of Peugeot Automobile Nigeria limited Kaduna. The analysis are presented in tabular form and the responses are collected through the use of questionnaire and interview by using mean statistic to analysis the data collected.

CHAPTER V:

Summary, Discussions, conclusion and Recommendations

Having discussed so much in preceeding chapter of this research work, I felt that the only effective way to end a research, work of this magnitude is based on the findings for better performance and maximize profit in the organization Peugeot Automobile Nigeria Limited Kaduna.

Summary of Procedure

One objective of the research work is to observe how Peugeot Automobile Nigeria limited carryout it’s storage procedure, considering he established way of practicing it and by the virtue of the fact that this research is a case study that highlighted the storage problem, facing the organization and its effect on stores during the research ranging from the introduction of the subject matter, statement of problem brief history of the organization, how the organization share its materials and so on.

Some of the problem confronting the organization range from management in experience to inadequate trained store personnel and insufficient working material e.g. handling equipment in the store house.

There is problem of improper coordination of storage activities which passes great problems to store personnel in carrying out their duties without supervisor and this brings about inefficiency.

Late delivery of materials for production of the organization is a problem which arises as a result of lack of transportation facilities, the researcher observed the following problem in the day operation of the store house, there is no adequate security of the store house.

Discussion of Findings

Based on the data collected and analyzed above, the following are the major findings. It was discovered that store verification contributes to store efficiency. This is evidence in the store of 64 respondents which is the high test rating of the item in variable one.

Variables two has the 48 respondents as the highest in the item which strongly agree that stock checking is necessary to ascertain the true position of stocks. According to Jain and Aggarwal states that stock checking is to check the incoming materials with regards to count kind, quality and conditions of the item.

Another finding is on variable three which has 36 respondents who agreed that there is need for stock records to be maintained in the store. According to Jain and Aggarwal which defined stock records as the documents which record from day to day, full particulars of individual receipts, issues and balances of stock.

Under variable four in the researcher’s findings 64 respondents strongly agreed that discrepancies are sometime discovered during stock taking.

Under table 2 variable one 1 respondent strongly disagree that the present method of system used in the stores increases number of obsolete materials in the store. According to Lysons and Gillingham defines store as the physical holding in stores of stocks or supplies awaiting issue or transport to customers and also variable three with the maximum respondents of 3 did not agree that there are adequate storage facilities provided in the store.

Under table 3 variable two 80 respondents strongly agreed that the unit loads are normally handled more safely with mechanized devices. Acceding to Jain and Aggarwal defines unit loads as the key to mechanized handling for many transport operations. And also variable three with 39 respondents did not agree that the material used in the organization is conveyed by ships.

Finally in every organization storage and material handling should be efficiency and effectiveness in stock regulation.

Implications of the Findings

This information was obtained through questionnaire personal interview and physical observation.

The researcher discovered that the company does not train it’s store personnel, mostly the senior staffs in the course of the research work. The researcher also discovered that the organization install computer for the management function, but the store, dependent exchange from the utilization of the computer system.

The researcher in the course of this research discovered that the organization is constantly experiencing late delivery of materials placed on purchase order from their prospective supply sometimes the organization buy materials at exorcist prices to meet up with demand as they arise.

In the course of this research work, the researcher discovered that the organization lack storage facilities such a s racks, bins shelves and so on for storage of their materials. This often result in some of the materials being stored on the bare floor without necessary care.

Conclusion

The research based on the frame work of the researcher have endeavour to evaluate storage procedure of Peugeot Automobile Nigeria Limited kaduna with it’s practical activities bearing in mind the aspect of the subject matter.

From the various findings from personal interview observation and researcher work, the practices of storage function and consistence with the existing knowledge ands views, there are still rooms for improvement in order to enhance efficiency and profitability with consciousness of modern changes.

Recommendations

Putting the foregoing into consideration the researcher hereby makes the following recommendation for an effective and efficient storage procedure.

The storage department should be given the responsibility to receive materials for proper control and because they are the custodian of all materials in the origination.
Coding system should be employed to identify the materials in the store. The benefits that may be derived from this include: –
Avoiding of repeated use of long descriptive title Reduce of varieties

Implication

Accurate identification of items

The organization should provide mechanical handing equipment like (fork lift) truck for loading and movement of materials from one store house to the other. Fragile items especially will be protected against breakages.
Storage procedure should be well coordinated to ensure proper performance on the part of the store personnel.
Expending term should be formed to cater for the timely deliver of materials to meet up with the production schedule.
The management should ensure jobs security without the assurance, workers tend to show their indifference towards their job, since they feel that dismissal letter can be delivered any time any moment working under tension should be prohibited.
There is also need for the store department of the organization to be fully staffed with efficient and trained staff.
The organization should also embark on the intensive training programme for its personnel by sending them to institutions of higher learning bring about better performance of duties. The unqualified store staff should be sent on short term course in the store administration this will enable them to acquire basic knowledge on storage procedures.
The store should be designed to accommodate them to different sizes, nature and shape fire fighting facilities should be provided and it is also advantageous to seek the advice and guidance of the local chief fire officer the used precaution taken when there is an out break of fire.
Smoking on the premises is for bidden and notice pasted to this effect.

workers and store personnel are trained on fighting any outbreak of fire.
Appropriate fire precaution equipment is provided, extinguisher axes, fire bucket etc.

The procedure for calling fire brigaded in case of need should be well published to the notification of the entire staff.

On the whole, the effect of these various recommendations would involve money for its full operations.

However, the economic to be gained from increase efficiency and accurate performance of the storage procedure and accurate performance of the storage procedure will certainly effect these cost on the long run.

Suggestion for Further Studies.

This research work or the scope of the research cover the area of store and material handling.

There are other areas which are not touched under this topic “impact of storage and material handling on store efficiency”, which are mechanical handling, equipment selection, automated storage, handling and retrieved systems, conditions favouring automated storage and handling physical verification, issue of materials, classification and coding of materials, investigation and analysis of discrepancies according to causes for corrective action.

Therefore other researcher should go into this area of study or they should continue to research in this area so that to contribute positively in the profitability of the organization because the field of research is wide and this present research work cannot be the end of this research in the topic “impact of storage and material handling on store efficiency”.

Bibliography

Cambridge College Co (2009): Stores management and stock control, study
Http://Www.Cambridge.College.Co.Uk/Course attachments stk Modi.
Compton, H. K (1985): Supplies and Materials Management. 3^rd edition. London: Butler and Tanner Ltd.
Ode, I. (2004): Basic Logistics and Physical Distribution Management. 1^st Edition. Nigeria: Creative Design Ltd.
Jain, K.C & Aggarwal, L.N (2008): Production, planning control and Industrial Management. 6^th Edition. Khanna Publishers.
Lysons and Gilingham, M. (2003): Purchasing and supply and chain Management. 6^th Edition. London: Pearson Education Ltd.
Lysons, K. & Farrington, B (2006): Purchasing and Supply Chain Management. 7^th Edition London: prentice Hall FT/Pearson Education.
Waters, D. (2003): Inventory control and Management. 2^nd Edition. Sussex: John Wiley and Sons.

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