NEED FOR EFFICIENT STOCK CONTROL IN A SMALL SCALE INDUSTRY
ABSTRACT
This study was conducted to guide people mainly (firms and students) on effective stock control system in any organization like Nigeria Breweries Plc there is need for efficient stock control especially in manufacturing for the establishment to grow. The data of this project was collected through secondary source and personal interview and questionnaire (purchasing manager and other managers) from this work was gotten and it was analyzed. With all this information the need for efficient stock control system in small scale industries like Nigeria Breweries Plc can be gotten from this project.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Stores management is very closely linked with production and distribution and is a much neglected area of business study. Yet the stores function is a vital part of all industrial organization, public and private utility organization; and armed services, and it must be designed to suit the particular needs of the organization and its services. The store keeping is set up in any concern to assist in the production of goods and services and no industrial unit or public undertaking of substantial size can be efficiently managed without it. According to Uzor (2003 :1) defined a store as any space reserved and equipped for holding materials which are awaiting dispatch customers for further processing and final consumption. The storekeeping is therefore basically concerned with holding stock and for there to be an efficiency of storekeeping, there are things people would want to know, such things according to Uzor (2003,2006:11) are as follows. 1. To whom they are responsible 2. Whom is expected of them. Their duties 3. Who is responsible to them 4. Whether their efforts are appreciated 5. Whether they are or not performing the duties satisfactorily Also according to be and Dobler (1996:30) they said that a understanding result is delay, idle time and lack of optimum use of storage facilities” it can also lead to less of customers and low profit.
1.2 STATEMENT OF THE PROBLEMS
It is undisputable that most manufacturing industries fail as a resulting of storekeeping function inability to meet up their production activities. Most times there are so many problems encountered by manufacturing industries such as” 1. A lack of materials damage due to improper storage of items in the stores. 2. Work –in-progress lost due to stoppage in production process 3. Some organization view storekeeping as an irrelevant function in the organization, therefore the management have little or no knowledge of the activities going on in the store. 4. Organizations knowing fully that storekeeping function is more complex and technical in nature that it requires people with high intelligence to handle will go ahead to employ untrained and unqualified personnel. 5. organization also neglect to employ people with business experience who can deal effectively with other departments and also with outside suppliers due to their knowledge about both organization practices.
1.3 OBJECTIVE OF THE STUDY
This study is expected to help manufacturing industries to actually know how important storekeeping function is. Some manufacturing industries at Anambra state have been able to penetrate their prospectus while some others who are not able to make a mark as experiencing status growth because of ignorance towards the existence of storekeeping function. the objective of this study is to investigate among others as follows:
a. To stress on the importance of storekeeping in the operation of store function, thereby motivating the management to develop interest on the storekeeping function.
b. To examine how storekeepers education programme can help in safe guarding goods and services in the store house function.
c. To find out the causes of cost of goods in the store house function.
d. To highlight on the need of employing young and energetic employees for the purpose of storekeeping.
e. To lay emphasis on the importance of employing a technical know-how worker on the current advancement of technology e.g computer.
f. Employment people with business experience, to group stores either it should be under materials management department or production.
g. It also lays employment on the basic function of qualities and qualification of stores security in an organization.
1.4 SIGNIFICANCE OF THE STUDY
The significance of a study is on the following group of people, the researcher, other students and the society. The Researcher: this study is very important to I Duru Ngozi Blessing for the award of National Diploma (ND) because of not done, I will not be awarded. This study entails to increase my knowledge and to understand more on the scope of my study. This study will also help me to be equipped and quitted with topics like this, if I eventually come across one in the labour market. Other Students: This project topic will serve as a guide to other students who are yet to be in the same filed of study. It will given them a guideline on how to write projects and also to gain knowledge about store keeping function in any organization.
The Society: The significant of this project topic is also needed by the society, for this will make them recognize their weaknesses and the better ways to amend them. In other words, the society in general will be moving better and the rate of employment increases due to the importance of storekeeping they read from by this research work.
1.5 RESEARCH QUESTION
This research work was conducted in Anambra state and methods have been applied by me in collecting primary information that help in the progress of the companies.
1.6 SCOPE OF THE STUDY
Because of limited time, some other constraints such as finance and materials, this study is specially carried out in Anambra state. This research work will look not the extent to which proper storekeeping in the operation of store function effect the operation and performance of the manufacturing sector in Nigeria. Due to limited true factor and finance available to urge and in order to ease data collection, this research will be restricted in Anambra Emros industries.
1.7 LIMITATION OF THE STUDY
While carrying out this research, I was confronted with a number of problems. Some stemming for the fact that most workers find it difficult to disclose information. A lot of research questions were drawn by me in my personal interview with management and staff of the company. The following are the research questions conducted by me, 1. What are the major roles undertaken by a storekeeper in a manufacturing company, 2. What are the benefits of storekeeping. 3. What are the responsibility of the officer with regard to store security 4. What are the major problem and objectives of storekeeping. 5. What are types of materials held in a typical industrial stores. 6. What are the advantages of store standardization 7. What are the reasons organizations hold stock. And some who care do not give adequate and at times useful information Also most of these respondent where top executive of the companies and therefore they chain to be very busy, and several calls were made and some of them could not spare time for oral interview which should have served any other thing “a present”. Other constraints encountered include time, finance, a covering note and constant power failure by NEPA.
TIME: I have to cope with lecture as well as the research work. In this approach this make to the tedious. FINANCES: Ordinarily, data collection is an expensive venture coupled with economic situation owning to the nature of research. I have to travel from my institution to some companies and offices paying much attention to them. The exercise was compounded with financial difficulties as a result of high cost of station arise and all other factors connected with the project. A COVERING NOTE: I was requested from companies to get a covering note from my head of department before I would be allowed to go into companies. These serve as a big obstacle or hindrance for me not to acquire more information. CONSTANT POWER FAILURE BY NEPA: This was another problem I encountered during this research. Due to constant power failure by NEPA I was only to read other book in the night.
