A Critical Analysis Of The Impact Of Stores Identification And Codification Procedure On Efficient And Effective Stores Operation Of Manufacturing Company {A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC. ILORIN.}

Description

 

TABLE OF CONTENTS

Title page

Certification                                                                                      i

Dedication                                                                               ii

Acknowledgement                                                                             iii-iv

Table of contents                                                                     v

CHAPTER ONE: INTRODUCTION                                   1

1.1 Historical background of the case study.                                    2

1.2 Statement of the problems                                                3

1.3 Aims and objectives of the study                                                4

1.4 Significance of the study                                                   5

1.5 Scope of the study                                                             5

1.6 Limitation of the study                                                      6

1.7 Hypothesis of formulation                                                          6

1.8 Definitions of terms                                                           7

CHAPTER TWO

2.0 Literature review                                                               10

2.1 Terms and forms of coding system                                             11

2.2 Advantages of nature of items coding                               12

2.3     factors to be considered when introducing a store code 13

2.4     Advantages of stores coding                                          15

2.5     selecting the code                                                           17

2.6     Different systems of coding                                           19

2.7     Store coding and computer                                            21

2.8     Methods of coding                                                         22

2.9     Avoidance of change                                                      23

CHAPTER THREE

3.0 Research Methodology                                                      25

3.1 Research Approach                                                           25

3.2 Sources of data                                                                           25

3.3 Data collection instruments                                                        26

3.4 Research population and sample size                                27

3.5 Sampling procedure employed                                          28

3.6 Statistical techniques used for data analysis                     28

CHAPTER FOUR

4.0 Presentation and analysis of data                                               29

4.2 Proof of hypothesis                                                           39

CHAPTER FIVE

5.1 Summary of findings                                                                  41

5.2 Recommendation                                                              42

5.3 Conclusion                                                                        43

Reference                                                                            44

Appendix                                                                           45

CHAPTER ONE

1.1     INTRODUCTION

          Store is being described as any space reserved and equipped for holding stocks, waiting for dispatch to customers for further processing or for further use. The word store can also be used to means inventory (materials). The responsibility of physical situation and condition of materials and issuing when required has with the store man and his department and storage facilities must be adopted to suit the types of materials handle.

However, for the store to carry out its operation effectively there must be an effective ways of identifying materials. Codification is an organization ways or method of identifying materials to give room for uniformity in the description of the items concerned. It is important to point out, that the success of any stock control systems depend on an efficient coding of materials, although there are many alternatives methods by which this can be enhance, the following are illustration of the case.

1. Alphabetic code e.g ABC, DEF etc
2. Numerical code e.g 0123, 5710
3. Alphanumerical code e.g A102, B2DF etc
4. Colour code e.g for iron, red, blue, colour for steel
5. Memonic code e.g choosing symbols which us of there meanings.

1.1     HISTORICAL BACKGROUND OF NIGERIANS BOTTLING COMPANY PLC

The Nigerian bottling company plc, came into existence on many 8^th 1886, when the late A.G levenites founded the company. It was the first in this country to be offered franchise by an international “soft drink firm” from a humble beginning as a family business. The company has grown to become a predominant bottling of non-alcoholic beverages in Nigeria.

The first plant, which was cited in lagos state, went into operation in march 1953. Coke was the first soft drink to have its own designed shaped bottling which was different from the common trade bottling. In 1972, the company went public by the issue of 372,580 ordinary shares of sokoto each. This was in compliance with the Nigerian enterprise promotion dearer of 1972.

Some years after the Ibadan plant was opened (but later shut down due to non-availability of good water in Ibadan metropolis). Ilorin plant was mainly established to meet the needs of the people in bida, jebba, Ogbomosho, okera, Oshogbo, kontagora, ijagbo, offa, lokoja and Ilorin metropolis the Ilorin plant has 8 managers.

The range of soft drinks bottling by Nigerian bottling company plc (NBC, Ilorin plant produces the following soft drink; fata orange, coke, sprite krest, bitter lemon, ginger ale and eva water in terms of sales, the company enjoys a wide acceptance of its produces. Ranking Nigerian bottling company plc, as a whole its performance is highly appreciated.

The company presently has 13 bottling facilities and over 80 distribution warehousing located across the country. Since production started, Nigerian bottling company plc, has remained the largest bottling of non-alcoholic beverages in te country is terms of sales volume with about 1.8 billion bottling sold per year.

1.2     STATEMENT OF THE PROBLEM

          There are some problem being encountered by the organization under the study in the area of coding and identification of materials. Firstly, variety of materials in use in the organizatio0n are not standardized, this makes it very difficult to have uniformity in the description of the items.

Also, the store section of the company under study does not have standard store vocabulary to aid easy. Identification of different materials, consequently, there is adoption of different code for identified users.

Another major problem facing the stores function of the organization is the lack of uniform and coherent stores policies. This is because the adoption of departmentalized system of stock holding.

Furthermore, there is lack of co-operation between the purchasing inventory control and store department, leading to duplication of effort.

Finally, the store personals are not adequately trained to meet the modern challenges of the stores operations.

1.3     AIMS AND OBJECTIVE OF THE STUDY

This research work was writing in partial fulfillment of the requirement for the award of higher national diploma (HND) certificate in purchasing and supply award by department of purchasing and supply, institute of finance and management studies Kwara state polytechnic, Ilorin.

Furthermore, the research work was conducted to enable the researcher to have a comprehensive knowledge on store identification and codification procedures as it effects the stores operations of manufacturing company.

1.4     SIGNIFICANCE OF THE STUDY

          Apart from the specific relevance of this project work to Nigerian bottling company plc. This study will work also be relevant to other manufacturing organizations. It will enable them to understand the importance of identification and codification procedures on effective and efficient stores operation.

The project work will serve as a good reference point to student of purchasing and supply and student of other relevent discipline as well as future researcher writing a similar topic.

1.5     SCOPE OF THE STUDY

          The scope of the study will cover, the impact of identification and codification procedure on effective and efficient stores operation of manufacturing company.

In the course of this study, the following areas will be examined the features of a good coding system, methods of coding codification. Characteristic of efficient coding system approaches to codification coding symbol and its interpretation, the advantages and disadvantage of coding will be highlighted.

The scope of the study will be restricted to Nigerian bottling company plc (NBC) Ilorin Plant.

1.6     LIMITATION OF THE STUDY

In the course of the study, the research work encountered various challenges which have led to the researcher having to limit the scope to the subject matter.

Financial constraint resources at the researchers’ disposal, had made it quite impossible for the researcher to visit all other similar companies scattered all over the country.

Another problem faced by the researcher was scarcity of data; there were just few data from the published sources consulted. Hence, the researcher had to rely only on the data collection from the company under the study.

1.7     HYPOTHESIS FORMULATION

Hypothesis is a tentative answer to a research question; the hypothesis is helpful in directing the researchers thinking towards the solutions to the research problem at hands.

Hypothesis could be stated in terms of null hypothesis and alternative hypothesis. The null hypothesis gives the negative assumption while the alternative hypothesis gives the positive assumption.

In the course of this study both null and  alternative hypothesis will be employed as follows.

Ho: proper identification and codification of materials is not essential to an effective and efficient stores operations.

H1;proper identification and codification of stores is extremely vital to an effective and efficient stores operation.

1.8     DEFINITION OF TERMS

This section of the research work will explain the meaning of the key terms and concept used.

1. Piece part: They are components manufactured from raw materials to make assemblies or sub-assemblies by the manufacturing of the finished product.
2. Raw materials: Materials which undergo changes through manufacturing processing in the course of being incorporated into the finished product.
3. Finished product: These are product ready to be sold to te customer or for future use or consumption.
4. Scrap and residual: These include waste materials and out off resulting from the production process.
5. Tools: These are special purpose attachment for machine which are essential for the operation of machines and equipments? Tools may be hand tools, such as hammer, screwdriver, or tools used on machines such as dies, drills, formers milling cutter or portable electric and pneumatic tools
6. Work in progress: Companies incomplete items in the course of manufacturing
7. Equipment and spares: This category include machine, piece of equipment and essential spares required to keep plant in operation. These types of stock are usually most important in extractive industries.
8. General stores: This usually includes a wide various of miscellaneous items required for day to day running of organizing.
9. Bought out parts: This is the name given top components and part purchased from outside suppliers
10. Packing materials: This will include variety of materials used for the packing of products either during the production process storage or transportation.
11. Specification: This is a document which presenters in detail, the requirement to which the supplier or service must confirm.
12. Standardization: This is the process of reducing the number of varieties stock to a controlled workable minimum.
13. Simplification: The elimination of all labour and materials not absolutely essential so that more effective production can be obtained
14. Variety reduction: This is the process of reducing the number of types, size or grades of a product made purchased or stocked

CHAPTER TWO

2.0     LITERATURE REVIEW

          The complexity of the modern industrial organizations and the range of items held in stock by the organization makes it to corresponding vital that a system has to be developed that can identify and classified the wide range of items in stock quickly and efficiently.

Codification is an organized way of identifying materials or stock items to give rooms for uniformity in the description of the items concerned. Before any stock control can be efficient as well as effective there is a need to developed appropriate identification methods for recognizing materials, this is usually in form of a materials code.