Project Materials

EFFECT OF STORE DESIGN ON MATERIALS HANDLING A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA

Chapter one

INTRODUCTION

1.1 Background of the Study

A store is a vital component of every organisation. It serves as the depository for all resources requested by the organisation and provides items as needed. It is vital to remember that the store represents a significant expenditure in the manufacturing and assembly facility.

It is true that the store function is a large cost centre, accounting for 70-75% of the firm’s annual budget (Dangana 2005), and hence it can have an impact on savings and thus contribute significantly to the organization’s profit.

However, in today’s increasingly competitive and globalised corporate environment, shop design is critical, as several examples illustrate that professionals charged with the function and duty of designing and managing the store receive little or no attention in the organisation. This could be due to a lack of understanding about store design or its incorrect application.

Furthermore, the variety of things in the store can be so enormous that a planned system is required to maintain it secure and organised. The stored objects should be located and addressed with minimal effort and time.

As a result, a store structure suited for carrying out diverse operations efficiently and productively is required, as well as the development of a system to ensure the safety of workers and materials.

Most of the time, the design of a storehouse determines the materials’ movement pattern and the limited type of handling equipment available.

since a result, most consumers’ demands for goods and services within and outside of the organisation are incremental in nature, since they prefer timely, convenient, and dependable delivery of materials and services.

However, the necessity to reduce waste and improve customer service inside such organisations has led to the introduction of the term “store design” and its impact on material handling.

It should also be mentioned at this point that any knowledge of how to construct a shop must include knowledge of how materials are moved.

As a result, the study activity improves the effective utilisation of store design and its prospects in the organisation with the goal of improving and ensuring effective materials handling.

1.2 Statement of The Problem

One important decision that businesses make is how to construct and place their storage facilities. This choice has a significant impact on the firm’s ability to meet its objectives. That is, to deliver products and services to clients faster and at a lower cost to both the company and the customers.

Failure to manage operations properly can result in inefficiencies that outweigh gains or benefits from good management of such critical activities as transportation material handling, inventory management and maintenance, and information flow.

However, organisations confront a variety of challenges while designing a storehouse. Some of these issues may include construction costs, installation costs, site costs, local authority rates charged on new buildings, survey costs, and planning and design fees.

Other issues may include the cost of materials handling (equipment required to load and unload items as well as transport materials), the cost of necessary storage equipment, payment to the building contact, and other incidental costs.

As a result, poor storage design will result in poor performance, such as material damage and obsolescence, theft and pilfering, a poor communication network, difficulties in moving materials within and outside, and so on, regardless of the firm’s position in the industry or product acceptability in other locations.

1.3 Objectives of the Study

i. To investigate the impact of store design on material handling.

ii. To determine the issues connected with store design and material handling.

iii. Determine the appropriate solutions to alleviate these challenges.

iv. Determine the importance of locating a storage building in PHCN.

1.4 Significance of the Study

The research findings will benefit Power Holding Company of Nigeria (PHCN) Kaduna by enhancing or improving the store design system and processes in an effective and efficient manner.

Prospective researchers may find the researcher’s findings useful as a reference point, especially those who desire to conduct additional research in the linked topic under study.

To the general public who come across this research effort, it will offer them with information on how significant store design and material handling are to an organisation, as well as add value to their knowledge.

It will also serve as a prerequisite for obtaining a Higher National Diploma (HND) in Purchasing and Supply Management.