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 Mohd 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

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List of figures

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

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

v
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 ow through the system, it does add to their cost. In fact, it has

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been estimated that 3060% 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 didnt 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. Its 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.

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