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EFFECT OF STORE DESIGN ON MATERIALS HANDLING A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (PHCN) KADUNA

Chapter One

Introduction

1.1     Background to the Study

A store is an essential limb of an organization. It is the depository of all materials required by the organizations in the organization and supplies materials as an when required. It is important to note that the store is an area of great expenditure in manufacturing and assembling plant. It is true that store function is a major cost centre which make use of 70-75% annual budget of the firm (Dangana 2005) and thus it can affect saving and therefore contribute significantly and therefore contribute significantly to the profit of the organization.

However, in today’s highly competitive and globalized business world, store design is of great importance as a substantial number of instances have show that people charge with the function and responsibility of designing and managing the store are given little or no attention in the organization. This may be as a result of poor understanding store design or inappropriate application of it. More so, the variety of items sometimes, store is so large that a planned system is necessary to keep the secured and in order. The stored items should be identified and issues with minimum effort and minimum time. Thus this calls for a store structure suitable to carry on various activities efficiently and productivity and developing a system that ensure safety of men and materials. Most often the design of a store house determiners to a large extent the materials movement pattern and the limited type of handling equipment that can be used. This result in fact that most customers demand for goods and services within and outside the organization are incremental in nature as they opt for speedy, convenient and reliable delivery of materials and service.

However, the need to curtail the amount of waste and improve the level of customer’s service within such organization has brought the use of the term store design ad its impact in materials handling. It should also be noted at this junction that any knowledge of how a store should be designed must incorporate the knowledge of how a store should be designed must incorporate the knowledge of how materials would be moved. Therefore, the research work develops the effective utilization of store design and it prospect in the organization with reference to enhancing and ensuring effective materials handling in the organization.

1.2     Statement of the Problem

One vital decision that firms make is how to design and where locate their storage facilities. This decision goes a long way in determining the extent to which the firm will achieve its objectives. That is to get products and services to customer faster and at lesser cost to the firm and customers. Neglecting to manage the activities effectively can result in inefficiencies that out weigh gains or benefit in good management of such vital activities as transportation materials handing, inventory management and maintenance and information flow.

However, organizations are faced with various problems to design a store house. Some of these problems may include; construction cost, cost of installation, cost of land, rate levied upon the new building by local authority and cost of survey, planning designing. Other problems may also include cost of materials handling i.e (equipment needed to load and off load materials and also for transporting materials), cost of storage equipment needed, and payment to building contact and for other incidental cost.  As a result, a poor storage design will result in poor performance such as materials damages and obsolescence, theft and pilfering, poor communication network, difficulties in the movement of materials within and outside etc regardless of the firms position in the industry or its product acceptability in other location.

1.3     Objective of the Study

i.   To examine the effect of store design on materials handling

ii.  To ascertain difficulties associated with store design on materials handing.

iii. To identify necessary solution to curb these difficulties.

iv. To determine the degree of importance of placed to store building in PHCN.

1.4   Significance of the Study

The findings of the research will be useful to power holding company of Nigeria (PHCN) Kaduna as it will enhance or improve the store design system and techniques effectively and efficiently. Prospective researchers may find findings of the researcher as a reference point particularly for those who may wish to carry out further research on the related field under study. To the entire populace, that come across this research work, the research work will provide them with the knowledge on the important store design on material handling is to an organization and it will also add value to their knowledge. Also it will serve as pre-requisite for the award of Higher National Diploma (HND) in Purchasing and Supply management. 

1.5     Scope of the Study

This research work is based on the effects of store design on materials handling with consideration to power holding company of Nigeria (PHCN) Kaduna. Ali Akilu road Kaduna north local government. The research work will be centered on the effect of store design on materials handling in the organization with regard to the management and staff of PHCN. The findings of this research work will primarily base on the data from the stores, distribution, marketing and production management of power holding company of Nigeria located at Ali Akilu road kaduna north local government kaduna.

1.6     Research Questions

i.   Does store design have any effect on material handling?

ii.  What are the difficulties associated with store design?

iii. What are the solution to curb these difficulties?

iv. What is the degree of importance placed on store building in PHCN?

1.7     Definition of Terms

Store: is a place where items may be accumulated or routinely kept. It is set up in order to receive, inspect, hold and issue all assets of an organization while helping to maintain its original quality and balance flow of materials as well as achieving the very important roles of store function.  

Design: the way that something has been planned or made to draw or plan something that will be made, done or built in other to permit a smooth handling and storage of materials at the lowest possible cost.

Store design: could be described as the planning and layout of store house structure to permit smooth handling and storage of store at the lowest possible.

Material handling: as that operational activity involving manuals or automated movement of materials and other goods from one location to another within an organization or time in good condition and efficiently.

Shelves: a board for laying thing on or this is pieces of woods or iron that are placed on the wall where goods and other office materials are kept. In some places they are designed in cubes.

Pallets: a sample device that place mechanically operated forks under a load so that it can be raised up from grounds and are usually made of woods.

Gangways: this is a long and normally a narrow way in store house and environment for operating of handling equipment to facilitated movement of materials in and out of the store.

Stockyard: this is an open storage space with an organization in other words. It is a type of store not housed but segregated purposely for storage not of non perishable.

Receipt: is the process of accepting from all resource all materials and parts which are used in the organization including supplier for manufacturing, plant maintenance officer, capital installation and finished products.  

Effect: change produced by an action or the result produced from the collusion of two or more variables.

Organization: are artificially continued structure with procedures and objectives defining responsibilities and highlighting who does what they of job task.

Dispatch: refer o terms being selected from stock and when marshaled documented loaded and subsequently delivered to their given destination.

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