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Acknowledgment

First and for most I would like to thank my almighty and equitable ALLAH, with healthy,

power and confidence enable me to complete this term paper.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and

special thanks to my supervisor Mr. Mohammed Omar Mmoka who in spite of being

extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct

path and allowing me to ask him questions whenever and whatever I felt to ask him.

I also express my deepest thanks to my all fellow classmate especially Moh’d Haji Othman

and Sabrina Sufiani Khamis, for taking part in useful decision and giving necessary advices

and guidance to make life easier to me. I choose this moment to acknowledge their

contribution gratefully.

Furthermore, I would like to express my gratitude towards my family members for their kind

co-operation and encouragement which help me in completion of this term paper.

Last but not least, I would also like to acknowledge with much appreciation the crucial role

of the staff of ZIFA, who gave the permission to use all required equipment and the necessary

materials to complete the task. With the connection of MOFEA due to their financial support

in my studies career at ZIFA.

I am making this term paper not only for marks but also to increase knowledge.

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Abstract

Materials handling is an integrated system involving such activities as moving, handling,

storing and controlling of materials by means of gravity, manual effort or power activated

machinery. Despite the significance of MH it has the problem of add the production costs.

The term paper is made up of seven sections, first section is about the introduction which

explains the Problem of materials handling, objectives of material handling and provides

brief explanation of the significance of materials handling.

Second section deals with the literature review and empirical review that the paper shows the

significance of MH like save the time of production and eliminate redundant work. Also the

paper describes the challenges that face MH like stoppage of MHS and causing unnecessary

costs, last the paper explain the alternative ways to minimize the costs of MH which are to

install durable and effective equipment and to use the right equipment for a right job.

Moreover there is methodology section, the documentary analysis used as method of collect

the data, the data used are the secondary data, the technique used is qualitative technique and

the tools used in preparation of this term paper are textbooks, internet, journals, manuals etc.

Also there is finding and analysis section, the section shows the overall finding of all three

objectives of the paper. The paper examine that MH has many significant contribution toward

manufacturing organization in the production activities, also shows some challenges that face

the manufacturing organization in reduction of MH costs and at the end the paper analyses

the alternative ways to minimize the costs of MH.

Then the paper conclude that the MH today are lifeblood of any manufacturing organization,

without them the organization cannot produce in efficiency and effectiveness. Since they

have the great contribution toward the organization.

Finally the paper recommends that, professional engineer should be employed to deal with

MH, labour should be trained to use materials handling equipment well, to install durable and

effective equipment, and also to use the proper equipment for a particular materials.

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Table of contents

Contents

Acknowledgment ........................................................................................................................ i

Abstract ...................................................................................................................................... ii

Table of contents ........................................................................................................................iii

List of figures ............................................................................................................................. v

List of Acronyms and Abbreviations ........................................................................................ vi

1.0 Introduction ..................................................................................................................... 1

1.1 Definition and back ground of the topic ...................................................................... 1

1.2 Area of problem.............................................................................................................. 1

1.3 Causes of Problem .......................................................................................................... 2

1.4 Justification ..................................................................................................................... 2

1.5 Objectives of the term paper ......................................................................................... 2

2.0 Literature Review............................................................................................................ 3

2.1 Introduction .................................................................................................................... 3

2.2 Operational definition.................................................................................................... 3

2.3 Theories and their discussion ........................................................................................ 4

2.3.1 Objective one; Significance of materials handling .................................................... 4

2.3.2 Objectives two; Challenges that face the manufacturing organization in the

reduction of materials handling costs. ................................................................................ 4

2.3.3 Objective three; the alternative ways to minimize the costs of materials handling. .. 5

2.4 Empirical Review ........................................................................................................... 5

2.4.1 Objective one; Significance of materials handling. ................................................... 5

2.4.2 Objective two; Challenges that face the manufacturing organization in the

reduction of materials handling costs. ................................................................................ 6

2.4.3 Objective three; the alternative ways to minimize the costs of materials handling. .. 6

3.0 Methodology ................................................................................................................... 7

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3.1 Introduction .................................................................................................................... 7

3.2 Methods ........................................................................................................................... 7

3.3 Techniques/Tools ............................................................................................................ 7

3.4 Data.................................................................................................................................. 7

4.0 Finding and Analysis ...................................................................................................... 8

4.1 Introduction .................................................................................................................... 8

4.2.0 Analysis ........................................................................................................................ 8

4.2.1 Finding as from theories and empirical review. ........................................................ 8

4.2.2 Objective one; significance of materials handling. .................................................... 8

4.2.3 Objectives two; Challenges that face the manufacturing organization in the

reduction of materials handling costs. ................................................................................ 9

4.2.4 Objective three; the alternative ways to minimize the costs of materials handling. 10

5.0 Conclusion ......................................................................................................................... 11

6.0 Recommendation ............................................................................................................... 12

7.0 References .......................................................................................................................... 13

v

List of figures

Figure 4.1 Materials Handling Maintenance.........................................................................9

Figure 4.2 Industrial Materials Handling Automation Systems...........................................10

vi

List of Acronyms and Abbreviations

MH Materials Handling

MHS Materials Handling System

MOFEA Ministry of Finance and Economic Affairs

ZIFA Zanzibar Institute of Financial Administration

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1.0 Introduction

1.1 Definition and back ground of the topic

Material handling can be defined as an integrated system involving such activities as moving,

handling, storing and controlling of materials by means of gravity, manual effort or power

activated machinery. Moving materials utilize time and space. Any movement of materials

requires that the size, shape, weight and condition of the material, as well as the path and

frequency of the move be analysed. Dr. Aized (2007).

It must be clear that Manufacturing Process starts from the source, from where the material

is coming, the intermediate waiting place to the place of manufacture; within the

manufacturing facility, i.e. during the manufacturing process; often manufacturing place to

warehouse or on its way to the wholesaler/retailer, or direct to the consumer.

During this entire process, the materials, be it raw materials, works in progress, or finished

products have to be handled either by human or mechanical means. A quick look will suggest

how material handling works. A porter while unloading bags of potatoes from a wagon or a

truck uses a hook as a lever, because the hook helps handling by reduction of weight. In

motor garage, a pulley and chain over a vertical bar is often seen which garage owner uses for

removing the engine from the chassis.

All these common sights are known as materials handling, and the hook, the crane, the push

trolleys, the conveyor belts are the materials handling equipment. It must therefore, be clearly

understood that materials handling is not just only related to the production process, but also

in passenger facilities in airport and even in the house hold. K. Bhattacharyya (2011).

1.2 Area of problem

Material handling is an indispensable element in most production and distribution systems.

Yet, while material handling is generally considered to add nothing to the value of the

materials and products that flow through the system, it does add to their cost. In fact, it has

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been estimated that 30–60% of the end-price of a product is related to the cost of material

handling. Therefore, it is essential that material handling systems be designed and operated as

efficiently and cost-effectively as possible. E. Biles (2006).

1.3 Causes of Problem

Improper usage of material handling in the manufacturing process.

Lack of training to staffs on how to get best from any machine and minimize damages

to the equipment.

Poor maintenances of materials handling equipment.

1.4 Justification

This term paper has the aim of making the manufacturing organizations to understand the

great contribution of material handling in the manufacturing process. The organization must

know that materials handling involve the followings importance over the manufacturing

process; firstly, materials handling promote productivity and reduce unit costs of production.

Also improve product quality, reduce damages, and provide for protection of materials. On

addition to that materials handling promote safety and improve working conditions.

All the above points clearly show the importance of materials handling in the manufacturing

organization. However, the following negative aspects may rise; additional capital cost

involved in any materials handling system. Also maintenance and training cost. Moreover

flexibility is difficult to the installed materials handling equipment.

1.5 Objectives of the term paper

i. To explain the significance of materials handling in the manufacturing organizations.

ii. To identify the challenges that faces the manufacturing organization in the reduction

of materials handling costs.

iii. To analyse the alternative ways to minimize the costs of materials handling in

manufacturing organization.

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2.0 Literature Review

2.1 Introduction

Materials handling is a system which uses the right method of provide the right amount of the

right material at the right place, at the right time, in a right sequence, in a right position, in the

right condition and at the right cost. Tompkins and White (1984).

According to P. Tesha (2000) “material handling has been defined as the art and science

involving the moving, packaging and storing of substances in any form. Thus there are

elements such as motion, time, place, quantity and space which need be considered”.

2.2 Operational definition

Elements of consideration in material handling

Motion: parts, material and finished product must be moved from location to another.

Material handling is concerned with moving them in the most efficient manner and at the

lowest cost.

Time: each step in any manufacturing process requires that supplies are on hand the moment

they are needed. Material handling must ensure that no production process or customer need

is hampered by having material arrive on location too late or too early.

Place: material is of little value in any industrial activity unless it is in the proper location.

Material handling has responsibility of delivering the desired material to the right place.

Quantity: rate of demand varies between steps in the manufacturing process. Material

handling has the responsibility of making sure that each location continually receives the

correct quantity of material.

Space: storage space, both active and dormant, is a major consideration in any building.

Since space cost money, space requirement are greatly influence on material handling

process.

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2.3 Theories and their discussion

2.3.1 Objective one; Significance of materials handling. According to David

Jessop and Morrison (1994) state that “materials handling saving time by lift and transport

sizeable loads much more quickly than is possible by manual labour. Saving labour, the value

of labour saved is more than the total costs of operating the equipment, also saving space, the

economical use of available space caused by proper usage of materials handling.”

According to P. Tesha (2000) state that “materials handling increase productive capacity.

This is achieved through assured constant rate of production, reduce costs through lower

inventory and production costs, reduce waste through less spoilage, improving working

condition, beside that improves distribution this is attained by quicker delivery to customers.”

Discussion; Due to the above explanation it is clearly show that all authors have tried to

explain the significance of materials handling based on the huge industries which available in

developed countries mostly without consider to the small industries which available in

developing countries like Tanzania, this means that authors must focus at both developed and

developing countries manufacturing organization when they develop their theories.

2.3.2 Objectives two; Challenges that face the manufacturing organization

in the reduction of materials handling costs. According to Mechanical Engineering

Website (2014) explains that materials handling system needs operational maintenance,

hence any addition to materials handling means additional maintenance facilities and costs.

This leads the organization to incur the additional cost of materials handling system

maintenance for the sack of avoiding the stoppage of materials handling system in the

production activities.

According to P. Tesha (2000) has analysed that “materials handling cause the losses through

mishandling. Materials such as paper and sugar must be stored in dry place, frozen food must

be stored in cool places, and fragile materials should be handled carefully. If materials

handling system does not provide for these conditions or if poor materials handling control

allows for negligence in meeting these standards, serious losses can result.”

Discussion; from the above explanation the authors tried to explain the challenges of

materials handling system regardless the time and the size of the organization in different

countries. Since those challenges are rare to control in many manufacturing organization.

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2.3.3 Objective three; the alternative ways to minimize the costs of

materials handling. According to Tell (2009) state that among the alternative way to

minimize the costs of materials handling in manufacturing organization is to install durable,

effective equipment that efficiently handles delicate products without constant maintenance.

Manufacturers fearing product damage during a high-speed application will often run their

machines at slower speeds, hindering productivity.

According to Mulligan (2007) “the key to reducing materials handling costs in any business

is to put the right material where it's needed, when it's needed and how it's needed. Such costs

can be cut by decreasing the number of times employees must touch the material, reducing

the time and distance it travels, paring equipment costs, avoiding damage and boosting

storage capacity.”

Discussion; Due to the above alternative ways of minimizing the materials handling costs

which have been portrayed by the different authors, vividly show that only large industries

which have enough capital can success to minimize the materials handling costs and this

could be difficult for small industries to do that. So the authors are supposed to look both

large and small industries when they write their theories.

2.4 Empirical Review

2.4.1 Objective one; Significance of materials handling. According to Remstar

(2007) Switzerland portrayed that, “materials handling eliminate redundant work, eliminate

accidents, reduce stress and effort, and also minimize time spent on distribution, storage, etc.”

According to Shingo (1996) indicated that, “production was treated as a process of a

sequence of operations. In the Production Function Mechanism, the concepts are directly

related to a production analysis focus. A process analysis consists of an observation of the

production flows that turn raw materials into final products. When making this distinction, it

is possible to perceive the relevance of materials handling.”

Discussion; Actually, the above experts have tried their level best to show out the

significances of materials handling to the manufacturing organization in the production

activities but they are defeated to analyse which factors and principles should be regarded by

the organization in order to achieve those significances.

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2.4.2 Objective two; Challenges that face the manufacturing organization

in the reduction of materials handling costs. According to Goldratt (2004)

expressed that “materials handling causing unnecessary costs. For instance when a forklift

leaves its workplace to transport a container between pavilions, delays in machines setups are

generated, causing unnecessary costs and stress on the forklift operator.”

According to the Fourth European Working Conditions Survey carried out in the EU-27 in

2005, 35% of all workers are exposed to the risk of carrying or moving heavy loads for at

least a quarter of their working time. The highest exposure rates are found amongst skilled

agriculture and fishery workers, craft and related trades workers, plant and machine operators

and assemblers. Young workers reportedly are the most exposed of all age groups.

Discussion; It is true that no one can argue the statements that have been portrayed by the

above researchers. But the percentages of workers who exposed to the risk of carrying heavy

loads may increase in developing countries like Tanzania since there are poor materials

handling compare with European industries

2.4.3 Objective three; the alternative ways to minimize the costs of

materials handling. According to Remstar (2007) contributed that “the good way of

minimizing the materials handling cost is to employ the expert material handlers. If you are

manually handling materials and products for distribution, storage, etc. this refers to utilizing

workers who will serve as material handlers. And also to install the efficient material

handling storage systems.”

According to Spangler (2006) state that, “the best way to avoid materials-handling problems

is to design and install the system properly in the beginning by make sure that the

organization not only choose a control system that will meet current and anticipated future

needs and can be understood by its employees but also there should be a proper management

of the materials handling system”.

Discussion; Remstar and Spangler tried to show the best alternative ways to minimize the

costs of materials handling but they didn’t consider whether the organization can afford the

costs of training the workers and the costs of installing the materials handling system. It

seemed that, that is not a case for Western industries because there is high technology but it is

a case for the developing countries industries like Tanzania since there is low technology.

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3.0 Methodology

3.1 Introduction

A system of broad principles or rules from which specific methods or procedures may be

derived to interpret or to solve different problems within the scope of a particular discipline.

Unlike an algorithm, a methodology is not a formula but a set of practices.

3.2 Methods

There are four methods used to collect data, which are: observation, questionnaire, group

discussion and documentary analysis. The method that I am supposed to use is a documentary

analysis method. So the documentary analysis method is a technique used together

requirement during the requirement elicitation phase of project. It’s describe the act of

reviewing the existing of document comparable business process or system in order to extract

pieces of information that are relevant to the current project and therefore should consider

the project requirement.

3.3 Techniques/Tools

This part involves two types of techniques which are qualitative and quantitative techniques,

but for my study the technique used is a qualitative technique. The study used descriptive and

analytical research designs which involve qualitative techniques so as to describe

observations and examine the findings to come up with conclusions and recommendations for

implementation.

3.4 Data

The data also divided into two parties which are primary and secondary data. In this study the

secondary data is used, the data are collected from the available published records such as

textbook, journals, magazines, manuals, as well as internet.

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4.0 Finding and Analysis

4.1 Introduction

The study investigated the benefits obtained with the organization due to the better

improvement of materials handling system that reduce the production costs. This chapter

begins by giving review of data collected, precise interpretation and finally a conclusion of

the finding.

4.2.0 Analysis

Materials handling is a major tool of success and failure of the manufacturing organization in

the production process. All industries around the world should have the materials handling

system whether manual or automatic in order to facilitate efficiency and effective production.

So if there is a better material handling system the organization will increase its production as

well as will minimize the production costs.

4.2.1 Finding as from theories and empirical review. The finding of this term

paper based up on the review of various theories and empirical review, through the empirical

review and theories state the various significance, challenges as well as the ways of

minimizing the costs of production caused by materials handling. The following are the

finding as from theories and empirical review.

4.2.2 Objective one; significance of materials handling. The finding of this term

paper as based up on the empirical review and theories it is perfect that materials handling

consists the greatest contribution toward the manufacturing organization performance due to

its significances, such significances are like saving labour, saving space, increase productive

capacity, eliminate accidents, eliminate redundant work etc. With the connection of those

points it is openly that any organization which has better and proper materials handling

system not only may increase it efficiency in production process but also reduce production

costs.

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4.2.3 Objectives two; Challenges that face the manufacturing organization

in the reduction of materials handling costs. Although empirical review and

theories analysed the significances of materials handling, it also analysed the challenges that

face manufacturing organization in the reduction of materials handling costs. Due to those

challenges the organization is defeated to reduce the production costs in their daily

production activities. The main challenges of materials handling are; operational maintenance

that leads the organization to incur the additional cost, losses through mishandling, and the

risk of workers to carry or move heavy loads.

Figure 4.1. Materials Handling Maintenance

(Source from Internet)

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4.2.4 Objective three; the alternative ways to minimize the costs of

materials handling. Through the theories and empirical review of the different authors

who try to show the alternative ways of minimising the materials handling costs, they

suggested that the materials handling equipment should be well designed and installed within

the organization. The bellow figure is an example of well designed and installed materials

handling system in the certain manufacturing organization.

Figure 4.2. Industrial Materials Handling Automation System

(Source from Internet)

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5.0 Conclusion

Regarding on various theories and empirical review from this term paper I conclude that.

Materials handling today are lifeblood of any industry and no government industry or

organization or private organizations operates without them. So materials handling increase

the efficiency and effectiveness of the manufacturing organization since it have many

significant contributions which is finally result the reduction of production costs. By using

materials handling the organization can save the time, reduce the number of labours, save the

space, improving working condition etc.

It is obviously that, in order to achieve those objectives and to increase the organization

performance the organization should set up the proper principles and guidelines to be

followed that will make the organization to increase the production as well as to reduce the

costs of production.

Not only materials handling increase the efficiency and effectiveness that result the reduction

of costs in the production process but also have the great impact toward the improvement of

industries in the country which leads the government to increase its income from those

industries that influence the economic development.

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6.0 Recommendation

Since materials handling has the greatest significant contribution toward the organization,

country and world in general. I am deeply interested to provide my recommendations and

suggestions on the improvement of materials handling system, materials handling equipment

as well as materials handling application within the organization.

The following are the recommendations to the organization about materials handling:-

The organization is required to provide frequently training to the employees on the materials

handling applications, this means that the organization should provide the enough knowledge

and skills on how materials handling can be properly used it the production activities.

The organization should install durable, effective equipment and well-designed materials

handling system in order to avoid unnecessary stoppage of production caused by break down

of materials handling system.

Professional engineers and maintainers should be used for the maintenance of materials

handling system whenever the system faced with any problem because poor maintenance can

be another source of inefficiency in the production process.

The labours should make sure that they use the proper materials handling equipment to the

particular item due to its nature in order to avoid the breakage and damage for the carried

items.

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7.0 References

1. Clemence P. Tesha, Stores and Management Manual.

2. Clemence P. Tesha (2000), Warehouse Management Manual.

3. David Jessep and Alex Morrison (1994), “Store and Supply of Materials” 6th Edition, FT

Prentice Hall.

4. International Journal of Innovative Research in Science, Engineering and Technology

Vol. 3, Issue 3, March 2014

5. Mechanical Engineers’ Handbook: Manufacturing and Management, Volume 3, Third

Edition.

6. S. K. Bhattacharyya (2011). “Logistics Management”, 2th Edition, S. Chad & Company

Ltd.

7. Vieira, G. B. B., Pasa, G. S., Borsa, M. B. N. O., Milan, G. S., Pandolfo, A.: Materials

Handling Management: a Case Study Journal of Operations and Supply Chain Management

4 (2), pp 19 - 30

8. http://smallbusiness.chron.com/reduce-material-handling-costs-42184.html. Internet

access 23th October, 2014.

9. http://www.ptonline.com/articles/how-to-get-a-handle-on-materials-handling-problems.

Internet access 27th October, 2014.