NEED OF STORES CODING AND CLASSIFICATION IN A MANUFACTURING COMPANY

NEED OF STORES CODING AND CLASSIFICATION IN A MANUFACTURING COMPANY

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In a manufacturing company, whether in the public or private sector have storehouse, warehouse and stock yard where different types of stores or material are received stored and issued to different users.  It is important for all store personnel to have full knowledge and characteristics of all the stores they have in their storehouse, this will enable them identify the stores, correctly record receipts and issues. It will also help them to look after the materials properly. The store manager in these efforts to meet up his first responsibility of effective identification and coding of stores has grouped all the materials required, purchased and produced. These are located in different storehouse at different parts of the organization most of which were sited closer to the use point and these stores are engineering store.  The basic objective is to develop an unambiguous classification and coding system that facilitates clean internal communication. Ideally, this system should be designed so that all the departments in the organization can use it effectively. The purchasing and store department are critical area where the system must provide consisted and unambiguous identification and coding of stores. If stock item are give a scientific identification code, a complete catalogue can be assembled so that when a part is required. It is possible to determine very quickly if it is in stock.
The stock records themselves will them indicate the exact location. The British standard institution has done a great deal of work in established standard for material and products when a standard specification number is quoted both customer and supplier will know what is being returned even where it is not possible to develop a sophisticate coding system or arranged on logical lines will be of great benefit to a business on avoiding errors. The stores grouping of material has arranged these materials of logical lines for easy identification there by avoiding errors on location, ordering, issuing etc.
The items in the stock of the organization the code appears on all documents relating to the movement and use of materials are marked against appropriate bins and racks. A matter of facts, the store manager recognized the importance for the use of stores vocabulary or catalogue. Therefore, the success of any material control or management of stores highly depends on the system adopted for effective coding and classification of stores.

1.2 STATEMENT OF PROBLEM
The need of stores coding and classification in a manufacturing company is considered for easy identification. It is faced with some problem as regards to an manufacturing company.
The manufacturing company has chosen the nature of the item coding system which means every item with different code numbers. This leads to the increase on the volume of the stores vocabulary.
In a manufacturing company may be faced with the problems of inconsistence in classification of materials in the store section. For example, there is a section of spanning materials, which is normally classified under the spanning stores but recently it has been transferred to the administration stores. There is a section that takes adequate care of the organization stores vocabulary in a manufacturing company is also faced with the problem of appropriate classification of stores.

NEED OF STORES CODING AND CLASSIFICATION IN A MANUFACTURING COMPANY