Impact Of Warehouse Layout In Proper Materials Handling

(A Case Study Of Western Regional Medical Stores, Takoradi)

5 Chapters
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68 Pages
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12,245 Words
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The layout of a warehouse plays a crucial role in facilitating efficient materials handling, impacting various aspects of the supply chain. An effective warehouse layout optimizes storage space, streamlines workflow, and enhances overall operational efficiency. By strategically placing storage racks, picking areas, and packing stations, the warehouse layout directly influences the speed and accuracy of materials handling processes. A well-designed layout considers factors such as proximity to shipping and receiving docks, minimizing travel distances, and maximizing accessibility to high-demand items. Additionally, it integrates advanced technologies like automated storage and retrieval systems, ensuring a seamless flow of materials throughout the warehouse. The ergonomic arrangement of workspaces contributes to the safety and well-being of the workforce, reducing the risk of accidents and increasing productivity. Ultimately, a thoughtfully planned warehouse layout is integral to achieving an agile and responsive materials handling system, aligning with the evolving demands of modern supply chain dynamics.

ABSTRACT

Warehouse layouts, due to their influence on total warehousing costs, are of interest to the theory and practice of warehouse design. The layout of a warehouse is the foundation of efficiency in a firm’s operations. From inventory management to order fulfillment, warehouse layout of a firm will either streamline business processes or decelerate it, considering its effect on the  efficacy and efficiency of materials handling.  The main objective of the research work was to assess the effect of warehouse layouts on materials handling in the medical supplies industry, specifically Western Regional Medical Stores (WRMS).A literature review was done to examine some conceptual framework or theoretical issues in the field of warehouse layout and materials handling. The data collection instrument used was questionnaires.  The researcher used thirty (30) questionnaires which were distributed to thirty (30) employees at the Procurement department, stores (non-drugs section) and warehouse (drugs section), and all were retrieved. Data for the study was collected from both primary and secondary sources. Also, purposive sampling technique was used for the collection of vital and relevant information from the employees. Both quantitative and qualitative analysis and interpretations of findings were presented in the form of tables and charts. From the data analysis made, the current warehouse layout adopted by WRMS is positively impacting on their material handling operations of the organization. However, challenges related to warehouse layout in relation to materials handling like insecurity of inventory were identified, upon which the researcher recommended the use of strict security measures and division of labor to ensure that these challenges are overcome.

 

TABLE OF CONTENT

DECLARATION
CERTIFICATION
DEDICATION
ABSTRACT
ACKNOWLEDGEMENT

CHAPTER ONE 1
1.0 Introduction 1
1.1 Background to the Study 1
1.2 Problem of the study 3
1.3 Purpose and objectives of the Study 3
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Scope of the study 5
1.7 Limitations of the Study 5
1.8 Research Methodology 5
1.9 Organization of the Study 6
1.10 Conclusion 6
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CHAPTER TWO 7
LITERATURE REVIEW 7
2.0 Introduction 7
2.1 Managing Warehouses 7
2.2 Warehouse Design/Layout 10
2.2.4 Importance of Warehouse design layout 16
2.2.4.1 Staffing Levels 16
2.2.4.2 Equipment Levels 16
2.2.4.3 Inventory Accuracy 16
2.2.4.4 Maximize Use of Facilities 17
2.2.4.5 Effective Management Control 17
2.3 Basic Principles of warehouse layout 17
2.4 Types of Warehouse Layouts flows 19
2.5 Definition of Material Handling 22
2.6 Impact of warehouse layout on materials handling in the medical supplies industry 26
2.7 Types of Materials handling system adopted in the Medical Supplies industry 27
2.8 Conclusion 30

CHAPTER THREE 31
METHODOLOGY 31
3.0 Introduction 31
3.1 Population/sample 31
3.2 Sampling Methods 31
3.3 Data Collection Methods 32
3.4 Data Collection Activities 33
3.5 Data Analysis and Procedures 33
3.6 Study population 33
3.7 CONCLUSION 36

CHAPTER FIVE 37
DATA ANALYSIS AND DISCUSSION 37
4.0 Introduction 37
4.1 Demographics 37
4.2 Analysis and Discussion 38
4.3 Conclusion 46

CHAPTER FIVE 47
SUMMARY, RECOMMENDATIONS AND CONCLUSION 47
5.0 Introduction 47
5.1 Summary of Research Findings and Conclusion 47
5.1.3 Type of Materials Handling System Adopted At WRMS 48
5.1.4 Impact of Warehouse Layout on Materials Handling in the medical supplies industry 49
5.1.5 Difficulties Associated With Warehouse Layout In Relation To Materials Handling 49
5.2 Recommendations 50
5.2.1 Recommendation for further Research 50
5.3 Conclusion 51
APPENDIX I 53
REFERENCES 53
APPENDIX II 55

CHAPTER ONE

1.0 Introduction
All organizations both private and public need efficient warehouse management for its survival and operational success. Efficient warehouse management is very necessary and especially in this era of fast technological advancement, systems of management and layout should change as well. The manufacturing industry is experiencing fast hardware development which calls for change in all aspects of warehouse layout management.

1.1 Background to the Study
A warehouse is an essential limb of an organization. It is the depository of all materials required by the departments in the organization and supplies materials as and when required.It is important to note that the store is an area of great expenditure in the Health Sector.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 to the profitability of the organization.

However, in today’s highly competitive and globalized business world, store layout 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 warehouse are given little or no attention in the organization. This may be as a result of poor understanding of storeslayout or inappropriate application of it.

More so, considering the variety of items sometimes, store is so large that a planned system is necessary to keep them secured and in order. The stored items should be identified and issues with minimum effort and minimum time. This therefore 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 layout of a warehouse determiners to a large extent, the materials movement pattern and the limited type of handling equipment that can be used. This result in the 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 service within such organization has brought the use of the term stores layout and its impact on proper materials handling. It should also be noted at this point that, any knowledge of how a store should be designed must incorporate the knowledge of how materials would be moved or handled in the storehouse.

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 Problem of the study
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 warehouse 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, amongst others, regardless of the firm’s position in the industry or its product acceptability in other location.

1.3 Purpose and objectives of the Study
1. To find out the type of warehouse layout at Western Regional Medical Stores(WRMS)
2. To identify the type of material handling system adopted at Western Regional Medical Stores
3. To find out how the layout of the warehouse affects the handling of materials at Western Regional Medical Stores
4. To determine the difficulties associated with warehouse layout in relation to material handling

1.4 Research Questions
1. What type of warehouse layout is used at Western Regional Medical Stores?
2. Which type of material handling system is adopted at Western Regional Medical Stores?
3. How does the warehouse layout affect handling of materials at WRMS positively?
4. What are the difficulties associated with warehouse layout in relation to material handling at WRMS?

1.5 Significance of the Study
The findings of the research will be useful to Western Regional Medical Stores(WRMS), as it will enhance or improve the store layout 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 importantce of storeslayout 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.

1.6 Scope of the study
This research work is based on the effects of store design on materials handling with consideration to Western Regional Medical Stores, located at Takoradi harbour areathe 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 Western Regional Medical Stores.The findings of this research work will primarily base on the data from the stores, distribution, marketing and production management of Western Regional Medical Stores

1.7 Limitations of the Study
Even though this study has a lot of merit, its preparation was beset with a number of difficulties. Whilst some of these problems could be overlooked others are worth mentioning.First and foremost, time limitation or time constraint. As a final year student, I had the challenge of having to squeeze my time thus foregoing lectures at times. I ignored some meetings, in order to make time for the research and also visit the area.
Cost involved in surfing the internet for information, printing, transportation to the study area, and other miscellaneous expenses. Despite all these diverse challenges and difficulties met, everything I needed for the completion of the project work was attained.

1.8 Research Methodology
This constitutes the procedures used to acquire comprehensive data and information for the project. This research will involve the use of both primary and secondary data collection.

• Primary Data Collection
This is the technique used in collecting data from some selected Member of staffs within Western Regional Medical Stores through personal interviews and designed questionnaires and site visits or observation to obtain data for the study.

• Secondary Data Collection (documentary analysis) which involves the use of recognized textbooks, magazines of the company, the internet and lecture notes.

1.9 Organizationofthe Study
The study is carefully organized into five (5) chapters: The first will focus on the introduction, which will include the background of the study, statement of problem, objectives of the study, purpose of the study, and limitation of the study. Chapter two of the research study will deal with a review of related literature on the subject of study by other writers .Chapter three forms the methodology of the study, as it would give details of how the research would be conducted; it would include issues such research design, purpose of the research, sampling, method of analyzing data, data collection, data collection techniques and problems encountered. Chapter four would be the presentation, analysis and discussion of data collected. Chapter five would deal with summary, conclusion and recommendation on the outcome of the study.

1.10 Conclusion
In conclusion this chapter concentrated on the background of the study, objectives, research questions and Methodology, scope, limitation and organization of study.

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Impact Of Warehouse Layout In Proper Materials Handling:

The layout of a warehouse plays a crucial role in ensuring proper materials handling, efficiency, and overall operations within a warehouse facility. An effective warehouse layout can have a significant impact on various aspects of materials handling. Here are some of the key ways in which warehouse layout affects materials handling:

  1. Optimized Workflow: An efficient warehouse layout is designed to minimize the distance and time required to move materials from one point to another. This optimization in workflow ensures that materials can be handled and processed more quickly and with fewer errors.
  2. Reduced Travel Times: A well-designed warehouse layout minimizes the need for excessive travel within the facility. This reduces the time and effort required for workers and equipment to move materials, leading to higher productivity and reduced labor costs.
  3. Storage Efficiency: Proper placement of storage racks, shelving, and bins within the warehouse ensures that materials are stored in an organized manner. This makes it easier for workers to locate and retrieve items, reducing the risk of errors and delays in materials handling.
  4. Safety: A well-organized warehouse layout takes into account safety considerations. Clear pathways, designated zones for heavy equipment, and proper signage can reduce the risk of accidents and injuries during materials handling operations.
  5. Inventory Accuracy: Accurate materials handling is crucial for maintaining inventory accuracy. A well-designed layout can help in the proper segregation of products, reducing the chances of picking the wrong items or misplacing materials.
  6. Space Utilization: Efficient use of space is essential for warehouses, especially in locations where real estate is expensive. An optimal layout maximizes the use of available space, allowing for higher storage capacity and efficient materials handling.
  7. Cross-Docking Efficiency: For warehouses involved in cross-docking operations (transferring materials directly from receiving to shipping without storage), an effective layout is critical. It enables seamless movement of goods from inbound to outbound docks.
  8. Adaptability: A good warehouse layout should be adaptable to changing needs and growth. As business requirements evolve, the layout should allow for easy reconfiguration and expansion without disrupting materials handling operations.
  9. Technology Integration: The layout should accommodate the use of technology, such as conveyor systems, automated guided vehicles (AGVs), and warehouse management systems (WMS). Integrating these technologies can further enhance materials handling efficiency.
  10. Customer Service: An optimized warehouse layout can have a positive impact on customer service by ensuring that orders are processed and shipped quickly and accurately. This can lead to higher customer satisfaction and repeat business.

In summary, the warehouse layout has a profound impact on materials handling operations. An efficient and well-designed layout can lead to increased productivity, reduced costs, improved safety, and better customer service. Therefore, businesses should carefully plan and continuously evaluate their warehouse layouts to ensure they meet their materials handling needs effectively.