Project Materials

THE IMPACT OF MATERIAL HANDLING COST REDUCTION EFFORT IN PUBLIC INSTITUTION

ABSTRACT

This research work is on the impact of material handling cost reduction efforts in public institutions, with a case study of PHCN Kaduna. It begins with the first chapter, which discusses the study’s history and provides a brief introduction to the topic area under examination. Statement of problem, which is why the researcher is doing the study to exploit such a situation and make recommendations that will benefit the company and society as a whole. study questions are developed in accordance with the study work’s goal of gathering variables for questionnaire administration. The second chapter reviews past work done by other authors on a similar topic. Chapter three discusses research methodology, including correlation studies to establish the relationship between material handling and profitability. The study used a sample size of 50, which is 20% of the population of 250, drawn from the materials management department. The sample size was chosen at random, and a questionnaire was distributed to them for their responses. The study’s findings suggest that material handling has a relationship with organisational profitability. Thus, it was decided that material handling in PHCN is not being carried out properly because the replenishment drive is not in accordance with actual material requirements. As a result, it is advised that a material handling unit be developed, and that the use of actual material requirements be the guiding concept for material replenishment in order to ensure that materials are not held in excess.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Following the industrial revolution, hundreds of industries arose on a daily basis during WWII. As industry expanded, raw materials grew scarce. This made manufacture more complex. Accounts needed to be prepared, and consumers needed to be served quickly.

Alternative sources were required, and the new product needed to be improved and developed. With this difficulty in mind, the material management concept was established with the goal of solving it scientifically in order to achieve maximum success while lowering production costs.

By the 1950s and 1960s, an uneven transition had occurred from the previous concept of material management as a clerical function to a newer function or concept of material management that included inventory control, distribution, and purchasing functions.

By the late 1960s, material management was recognised as an important function within an organisation. Thus, the relevance of material management stems from the fact that any significant contribution made by the materials manager in lowering material costs would help to lower production costs while also boosting profitability and rate of return on investment.

Today, materials are the lifeblood of any company; no industry can function without them; they must be supplied at the correct time, in the proper quality, at the proper location, and at the proper price.