IMPACT OF MATERIALS HANDLING ON ORGANIZATIONAL PROFITABILITY (A CASE STUDY OF NIGERIA BOTTLING COMPANY, KADUNA)

IMPACT OF MATERIALS HANDLING ON ORGANIZATIONAL PROFITABILITY (A CASE STUDY OF NIGERIA BOTTLING COMPANY, KADUNA)

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ABSTRACT

 The project is titled “Impact of Material Handling in Enhancing Organization Profitability” a case study of Nigerian Bottling Company (NBC) Kaduna Plant. This research work examine materials handling and how it helps enhance productivity and improve the Profitability of Nigerian Bottling Company. The objective of most business organization is to procure and produce goods and services. Moving these materials with easy, convenience, speed and at a relative lower cost without comparing with quality and profitability is on the objective of material handling in Nigerian Bottling Company. And also to determine what impact material handling has no improving Profitability of Nigeria Bottling Company. The significance states how important material handling is to researcher question was also generated to determine impact of material handling and how it contributes to the increase in profitability of Nigerian Bottling Company. Data collected involves the use of questionnaire, documentary source. For the purpose of this exercise, researcher considered it appropriate to use 66 as sample size out of a population of 80. The Likert’s 4-points Rating Scale will be used to analyze collected data. Accept all outcomes equal to or above 2.50 and reject all outcomes equal to or below 2.49. From the findings made a number of vital recommendations and suggestions are made for better approaches to material handling and how it enhances profitability in general. Some of these recommendations are; to encourage the use of the most appropriate types of material handling equipment. And to also introduce variety of computerized network system that would enhanced efficiency handling the Department of Nigeria Bottling Company.


CHAPTER ONE: Introduction

1.1     Background of the Study

Material handling is set up for the movement of materials as raw Materials scrap, work in process (WIP) and finished product through and from productive processes, in ware house and storage, in receiving and shipping areas.

It is important to give consideration to material handling devices or equipment so also for the purpose of material safety, security, and effective storage to guide against loss than can be incurred through poor storage and handling.

Material handling directly affects the success of an organization. Expenditure made on material is money invested on inventories, cost of storage, transportation cost, holding cost e.t.c. the magnitude of expenditure required in controlling material capital outlays, safe keeping and effective storage of material is necessary in any organization like Nigerian Bottling Company (NBC).

In order for Nigeria Bottling Company (NBC) to met the goal stipulated in the 1953 decree which establish the development and maintain an efficient, co-ordinate to meet up with the demand of the customer to all part of the country. NBC has built production plant in some part of the country to meet the demand at optional location and distribute it to all villages around the states. However, most company’s items and assets in terms of plants and machinery, raw materials, component parts, maintenance e.t.c from this, we can then see the need for different types handling found with various organization and also the different handling equipment used in different stores.

In most organization in Nigeria today, it has been observed that, it is possible to properly utilize the use of handling equipment effectively, we find out that there are some area yet on attended to, problem like how to manage and utilize those equipment for useful purpose, some store personnel are careless and might not even have the essential ingredients that enable the writer to embark on the research work. This project write up is particularly concerned about the critical examination of various impact of handling and the overall operation used in the organization with particular reference to the Nigerian Bottling Company (NBC) plant 2 Inuwa Abdulkadir Road, Kakuri Industrial Area, Kaduna South Kaduna State.

1.2     Statement of the Problem

In the past, some organizations are facing the problem of material handling equipment, in both private and public sectors. However, industry cannot operate without using materials. The material must be made available at the right time, in the right quality at the right place and at the right place and at the right price.

Therefore, the impact of material handling equipment on organizational profitability of any firm, the researcher decides how to carry out a research in order to address the problem of production in an organization and how effective material handling can be achieve in enhancing organizational profitability. Today materials are the life wire of any industry, no industry or company concern can operate without using material handling equipment. The management of the organization or industry has to be ready to go an length in providing better material handling, storage, labour cost, production wasting time and handling equipment that might not be economically advisable. It is from this perspective that this project write up with work or the issues at stake and try to provide relevant solutions to the problems encountered, which comprises of safeguarding stock items and ensuring perfect flow of quality materials.

1.3     Objectives of the Study

In this section the researcher intends to highlight the objectives of the study. The following are the objectives of the research work.

i.        To determine the impact of material handling on cost operation.

ii.       To determine the impact of material handling on the profitability of organization.

iii.      To ascertain the difficulties associated with material handling in Nigeria Bottling Company.

iv.      To determine the importance of material handling and its effectiveness in the organization.

v.       To determine the challenges faced by managers in selecting and managing materials handling equipment’s.

1.4     Significance of the Study

At this point, it is necessary to identify how important material handle is to the researcher. The organization (NBC), the beneficiaries and mankind or society at large. Material handling plays a major role in enhancing organization profitability, this is because it serve as a protection, safeguard materials in the store against damage.

However, it also enhance organization profitability because all the effort directly towards the survivals, growth and profit are carried out through the use of handling equipment.

Material handling is very important to both private, public sector and the society as a whole for the purpose of material safety, security and effective storage to guide against loss that can be incurred through poor storage and handling.

This study is also expected to widen the knowledge of the researcher and the organization (NBC) or any business organization, a firm, to succeed in reaching a particular goal, it must adopt right material which ensure growth, profitability, expand in size and bring more attraction. The impact of material handling in enhancing organizational profitability is what makes the researcher to focus her attention pon the topic and to understand how it operate. To the benefit to the researcher it will contributes to the award to Higher National Diploma in purchasing and supply, the researcher’s interest in the topic is to influence and be of a benefit as a source of information for the institution like Kaduna Polytechnic for the future purpose.

1.5     Research Questions

i.        What is the impact of material handling on cost of operation?

ii.       What is the impact of materials handling on the profitability of organization?

iii.      What are the difficulties associated with materials handling in Nigerian Bottling Company?

iv.      What is the importance of materials handling to Nigeria Bottling Company?

v.       What are the challenges you face in selecting handling equipment?

1.6     Scope of the Study

The researcher concentrates on Impact of Materials Handling on Organizational profitability. The study is conducted in Nigeria Bottling Company (NBC) located at plant 2 Inuwa Abdulkadir Road. As this is chosen as case study of the entire work. The researcher restricts the work on selected departments that are relevant to the subject matter. These departments include supplies, stores and production departments.

The idea behind choosing this scope is for the whole work to have a focus for the purpose of achieving the research objectives in the end.

1.7     Definitions of Terms

1.       Inventory Management: Inventory means stock of raw materials; semi-finished and finished goods maintained by organization.

2.       Inventory Control: This means stocking adequate number and kind of stores so that the material are available whenever required, scientific inventory control results in optimal balance.

3.       Raw Materials: Material that the organization coverts into processed parts this might include parts specifically produced for the organization and parts brought directly off the shelf.

4.       Purchased Parts: Parts that organizations buy from outside sources (i.e. lower case for a computer).

5.       Work in Progress: This is a semi-finished product found at various stages in production (i.e. assembled mother board).

6.       Packaged Materials: These are materials that are packaged together to prevent damage during transportation and deterioration when they are stored.

7.       Bulk Materials: These are materials that are delivered in mass and deposited in container.

8.       Bagged Materials: These are materials delivered in bags for ease of handling and controlling use.

9.       Palleted Materials: These are bagged materials that are placed in pallets for delivery.


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