THE SIGNIFICANCE OF STORES MANAGEMENT IN A MANUFACTURING ORGANISATION (A CASE STUDY OF DOYIN INVESTMENT PLC, ILORIN)
This research examines the Significance of Store Management in a Manufacturing Organization (A Case Study of Doyin Investment Plc, Ilorin). Every manufacturing organization has store, the significance of effective stores management cannot therefore be over emphasized.
The researcher topic will consist of five chapters
Chapter one of the research work shall deal with the background of the study, historical background of the case study, statement of problem, the objective of the study, scope of the study, limitation and constraints, and the definition of terms.
Chapter two deals with the review of related literature on the subject matter.
In chapter three, the following will be examined, research methodology, research approach/design data collection instruments research population and sample size, sampling procedure employed and statistical techniques for data analysis, while
Chapter four will shed light on the presentation and analysis of
Chapter five which is the last chapter will centre on the summary of finding, conclusion and recommendations.
TABLE OF CONTENTS
Title page i
Table of Contents v
CHAPTER ONE: BACKGROUND TO THE STUDY
1.2 Historical background of the case study
1.3 Organization structure
1.4 Statement of the problem
1.5 Objective of the study
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of constraints
1.9 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Store function
2.2 Reasons for holding stock
2.3 The responsibility
2.4 Stock control
2.5 Storage of material
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Approach/Design
3.2 Source of Data
3.3 Data Collection Instruments
3.4 Research Population and Sampling
3.5 Sampling Procedure Employed
3.6 Method of Data Analysis
CHAPTER FOUR: DATA PRESENTATION AND
4.1 Data Presentation and Analysis
CHAPTER FIVE: SUMMARY, CONCLUSION AND
5.1 Summary of Finding
In developed countries, stores management is recognized as one of the most important links in growth of business organization. It contributes majority to profitability and financial stability of a business firm. In developing countries however, it is yet to make its fullest impact store management therefore, needs to brought home to decision makers in private, public and most especially manufacturing companies so that they can appreciate its significance (cost saving contributions) to so help the organization out in these times of recession.
Stores management however, covers a great deals more than physical keeping of items in stores but also includes.
1. Holding controlling and issuing of stock
2. Control of all store house, stock yard and outside store units.
3. Material handling function
4. Quality control activities
5. Training of store staff
6. Clerical administration of stores operations etc.
Store management therefore, mean keeping items in stock, ensuring that they are identifiable accessible, safeguarded and available to meet all demands without carrying unnecessary large stock.
1.2 HISTORICAL BACKGROUND OF THE CASE STUDY
Doyin Investment Plc. located at Asa Dam Road, Ilorin, Kwara State is a member of Doyin group of companies, and the first manufacturing company in Nigeria. It was incorporated on 8th October, 1984 with head office in Lagos, the company is operated by full blooded Nigerian.
It is owned by courageous and experienced industrialist, prince (Dr) Samuel Adedoyin who had for many years been championing the indigenous technology backward integration using local materials.
Despite the economic downturn then, the factory metamorphosed tremendously from its one investment factory and pioneer staff strength of 40 resourcesfulness, sourcing by which Doyin Investment Plc. has been contributing and industrial revolution. The company consistently parried up with the existing multinational investment manufacturing companies in healthy competition towards enhancing the growth of the Nigerian economy. The company products include flash, wash shirt, super deal and his clean securer and vogue grand soap among others.
Based on this, the company short into national and international fame and was awarded Nis (National Industry Standard) Certificate.
The certificate was awarded to it by the standard organization of Nigeria as a mark to affirm that the company’s product can compete with others internationally.
Apart from that, the company also provided employment opportunities to Nigeria who are suppliers manufactures, contractors,
transporters, distributors e.t.c presenting, it has an indigenous labour strength of about 1500 workers in different grades.
The company given priority to industrial safety and good house keeping. Hence, sound wastes periodically cleared by sanitary inspectors form the Kwara State EnvironmentalProtection Agency. This generating revenue to the State Government.
As a way of reaching the nooks and corners of the country the company has many sales deports scattered all over the federation. They include Aba, Abeokuta, Benin, Enugun, Maiduguri, Ondo, Onitsha, Sokoto, Oyo e.t.c
1.3 ORGANIZATION STRUCTURE
In the company’s organizational structure, authority flows from top ladder. The complexity and the fact the personnel changes are taking place constantly create the need for organizational chart and manual.
Organizational chart is a process whereby each department is
tied together along the principal lines of authority. It is the planned
frame work around which individual effort resolves. It also determines how the to be done is shared out which in turn affects both communication and personal relationship between people in the establishment.
In the case of Doyin Investment Plc, the General Manager of the company sees to the day today affairs easy flow of information and communication problems do not arise at all because the structure of the organization does not allow message to be delayed. He has the responsibility to co-ordinate and supervises the activities of the various departments. He is directly responsible to the chairman and board of directors of the organization. Immediately after the General Manager, there are two Assistant General Manager, one overseeing production and the other for sales department of the various sections existing in the company. On unique feature of this organizational
chart is that the internal auditor who oversees the adult department
owe his allegiance directly to the chairman of the company and board
Auditors are to carry out a regular auditing of the purchase of raw materials, their utilization and the use of all company’s assets.
There are seven departments in the organizations in the organization namely production, Technical, Account, personal internal auditing laboratory and quality control department and sales department.
Looking at the organizational structure of Doyin Investment Plc. One will see that it is formal in nature with authority and responsibility flowing from the top the bottom of the organization.
1.4 STATEMENT OF THE PROBLEMS
Manufacturing companies in Nigeria encounter numerous problems relating to stores activities as explained below and the company under study is no exception.
The following are some of the problem:
a) The problem of over stocking:- This is a situation where there
are more stock of an item in the store beyond what is normally
required to provided satisfactory services.
b) Under Stocking:- Is also another problem being faced by most manufacturing companies in Nigerian in this, organization carries ten quantity. Of an item required by the users (users department in an organization).
c) Problem of obsolescence:- Obsolete inadequate storage space and facilities are also common.
d) In efficient method of controlling stock is another problem normally encountered by the manufacturing companies.
1.5 OBJECTIVE OF THE STUDY
One of the motives behind this project is in partial fulfilment for the award of National Diploma in Business Studies awarded by the Institute of Finance and management Studies.
Secondly, the research work is to expose the researchers and broaden their knowledge about the subject matter i.e the significance
of store management in a manufacturing industry”with peculiar
reference to Doyin Investment Plc, Ilorin.
The research study is also aimed at making all profit oriented organization to realize how much is being lost daily as result of ineffective management of stores.
1.6 SIGNIFICANCE OF THE STUDY
The researcher carried out this exercise in order to portray the significance of stores management in a manufacturing organization with particular reference to Doyin Investment Plc, Ilorin.
The researchers through the research have acquired useful experience of whatis happening in the industrial store of the Nigerian economy. The significance of this study is to enable the industrial sector to appreciate the role of stress in the attainment of organizational objectives with model such as minimum, maximum and re-order level techniques I the store management.
The manufacturing companies are not likely to be convinced
that stores management is not only concerned with stock holding facilities alone. This research work is very important.
Because it will point out some areas where the majority of Nigerian manufacturing organization are making a great mistake by allowing their store operations or functions be handled by unqualified store personnel’s.
It is also believed that the society at large would find the research very useful. People such as professionals, stores personnel, material management student as well as other members of public having interest in stores management can refer to this research as an aids.
1.7 SCOPE OF THE STUDY
The study intends to look into significance of store management
in a manufacturing industry with a particular interest in Doyin Investment Plc, Ilorin.
The study will be more concerned with the activities of the store
in the organization. The research will thoroughly show the purpose
responsibilities and the relationship of store to other department.
1.8 LIMITATION AND CONSTRAINTS
The research work will be restricted to Doyin Investment Plc, Asa Dam Road, Ilorin.
The researcher faced a lot of problems during the course of the study. Among the problem encounter by the researchers are:
1.) Lack of Cooperation:- The respondents who are the staff of the company are reluctant to supply the needed information owing to the nature of such information. They wanted to be convinced that the information sought for strictly be used for academic purpose.
2.) Financial Constraint:- Owing to the current economic situation in the country, the cost of carrying out any meaningful research is very high. This problems represents one of the major problems encountered.
3.) Another limitation has been scarcityof textbook journals, magazines, manuscripts researchers couldconsult for more valuable information.
4.) The last but not the least limitation for study is the time allowed for the completion and submission of the project the time was too short for the study and during this same period available for research study, the researcher had to contend with academic activities as well.
1.9 DEFINATION OF TERMS
STORE:- Is any space reserved and equipped for holding stocks, waiting for dispatch to customer for further processing or future use. It is basically concerned with holding stocks.
STOCK RECORDS:- Like many other records kept in an organization, stock records are those documents used to record all store’s operations and the spot on the stock carried in the store. It facilitatesthe necessary for accurate stock decision.
STORAGE:- Storage comprises the management of store house and
stock yards, the operations of handling and storage equipment, the safe custody and protection of continuously arranging the current rates of consumption with due regard to economy.
STOCK TAKING AND STOCK CHECKING:- Stock taking is a complete process of physical verification of the qualities and conditions of goods usually on a periodic basis. Stock checking is similar but may be done on adhoc basis for operational rather than audit reasons.
STORES ACCOUNTING:- Store accounting is the process of recording stock improvements and balance in value.
MINIMUM STOCK LEVEL:- Is the level below which stock should not normally be allowed to fall.
MAXIMUM STOCK LEVEL:-Is the level above which stock should not normally be allowed to rise.
RE-ORDER LEVEL:- This is the point between the maximum and the minimum stock at which time is essential to initiate purchase
requisition for fresh supplies of materials..