Role Of Stock Control In A Manufacturing Company

Role Of Stock Control In A Manufacturing Company

Chapter One

Preface

Stock and its control have a conception which has been as old as mortal race in the history ofmankind.However, we discover that it has some rudiments of recognition, If the origin of stock control is well traced. In the story of the early man, we were made to understand that they lived an unsettled life having no control and kept nothing for unborn use, and due to this, they were faces with different problems caused by out of stock.

These days, manufacturing companies tend to put stock control into practice having known that similar are anticipated from them, thus as the operation practice are getting are getting decreasingly dynamic with the passage of them, multitudinous unborn planning and controlling conditioning that are formally performed by clerks have reading sweats in

Commercial objects and force control as a vital element of accoutrements operation is of function that should be given proper attention.

According to heckler( 1984), control can be defined as a methodical trouble by business operation to compare performance to destined norms plans of ideal, to see where performance is in line with norms and presumably take to any remedy conduct needed to see that mortal and commercial coffers are been used in the most effective and effective manner in achieving cooperate ideal. thus stock control according toA.M. Uzor( 2006) represent the correct volume of accoutrements made available and as when needed with due respects to frugality storehouse and ordering cost purchase price and use of working capital, Zenz( 19941640). farther stressed that stock control should be regarded as any item of accoutrements used within the product process, or in the operation of the business.

From the below set of delineations, one is left in no mistrustfulness of the fact that stock control is the life line of any assiduity.

Brief History Of Consolidated Breweries

Consolidated breweries plc was incorporated in September 20th 1968 under the name eastern brewery was changed to international y’s ery limited with the brewery of 33 lager beer.

In 1996, international brewery plc gave birth to consolidated brewery plc which was began from France. it began producing the alternate product( hi malt) in 1983, thus getting one of the largest producing malt in the country as at that time, consolidated breweries came a public quoted company in Nigeria stock exchange request. Meanwhile, the company has about 25,000 Nigerian shareholder holding 90 of the company’s equity while 105 of the company’s equity are held by foreign association and citizens.

This company has its head office at Lagos and two branches producing at Ijebu- ode and Awo- Ommama, it has about 500 workers of which inferior staff has the loftiest of 77 of workers.

Statement Of The Problem

This study named the part of stock control in a manufacturing company, a case study of a consolidated breweries plc Awo- Amama in Imo state is aimed at examining and understanding the dilemma associated with force or stock control system and to ultimately relate these problems to stock control in a manufacturing company and they include;

. The problems that affect the perpetration of stock control system.

2. To know the present stock control procedure dimension using consolidated breweries plc Awo- Omama as a suitable case study.

3. To examine the reason for holding stock

4. To also fete the crucial places functions of stock control

Objects Of The Study

Stock of accoutrements enterprises up to 60 of the total coffers of an association and stock control operation which contributes immensely to the effectively and effective handling of the association and the objects of the study is to;

1. Find out the places and benefits of stock control system and how to enhance the profit of an association.

2. To study and understand the factors affecting stock control system.

3. To dissect and consider the pros and cons of stock control operation.

4. To critically examine the profitable order volume( EOQ) associated with stock control system operation.

Significance Of The Study

The study is vital because it’ll bring to the knowledge of all the manufacturing association the multitudinous results to the problems encountered by colorful stock control operation within any manufacturing company. The study is also interested in assessing the ways of furnishing dependable going information as respects to records of accoutrements issues and bills.

Eventually, product operations can not flow effectively without having stock of different accoutrements work in progress( WIP) finished corridor and supplier functions.

Research Questions

This study will centre its findings in the following questions.

What’s the part and place of stores department in the association?

Is stock well managed in the association?

Are professionals employed to handle is store?

Is stock control important in manufacturing associations?

e. What system of stock control is espoused?

f. How are scraps, waste, obsolete and reticent accoutrements are managed?

Suppositions

In order to achieve the ideal, of the study exploration thesis will be developed and used in analysis of data collected. The exploration suppositions are

1. Ho the stock control in the association isn’t effective

Ha the stock control in the association is effective

2. Ho the stock control has no significant impact in copping performance in consolidated breweries plc. Imo.

3. Ha the stock control has significant impact in copping performance in consolidated Breweries Plc. Imo.

Compass Of Study

The design pen intends to adequately concentrate the attention of the study specifically on the part of stock control in a manufacturing company using consolidated Breweries Plc Awo- Omama. The study will also intend to control the work in progress(W.I.P.) particulars.

likewise, the study will cover the standard styles used in carrying or holding stock.

Eventually, we use seek to make recommendations that will help in perfecting the stock control and carry out some conditioning, like reviewing the once applicable literature and test of thesis formed in order to determine the validity.

Limitation Of The Study

Stock controls like other directorial function ha its peculiar problems. It can be internal or external problems which can appear when the director fails to understand the part of stock holding in the productprocess.However, there are unidentified places; it also means that the job of the store keeper may be assigned to another department, If the work of the store director is specified. It may lead to mismanagement due to shy knowledge in both volume and quality.

Meanwhile, the internal problems may appear inform of client station to product produced by the enterprises in consolidated breweries plc, quality control is grounded on client’s demand for illustration, the volume demanded in a week if the storekeeper will order for further accoutrements with the stopgap of that further product will be demanded in the upper week and where similar isn’t ordered as anticipated, it’ll lead to over sock of material particulars which may deteriorate before they’re used. it’s been regarded as a limitation to stock control operation.

More so, the problems faced by the exploration during the exploration work are-

a. shy fund to make exploration

bad road to access the access the areas the experimenter was confined

poor manner of responding to the questionnaire

short time to amount this design exploration work

Stress and other factors to mention but many.

Functional Delineations Of Terms

1. force all the palpable means of an association other than fixed means.

2. PRE-PRODUCTION force this comprises corridor and accoutrements bought from outside the association to manufacture into products

3. STOCK CHECKING this represents any other check on physical rates which may be applied either regularly or else

4. STOCK TAKING This means the complete process of varying the volume balance of the entire range of particulars held in stock

5. LEAD TIME This represents a time between an orders is placed to the time it’s eventually delivered or fulfilled.

6. STOCK- OUT A situation where one can not boost of any stock in the store.

7. CODIFICATION This is the allocation of number or rudiments to store particulars for easy identification.

8. FIFO Simply means first in first out.

9. LIFO Last in first out.

10. SCRAP It means accoutrements which has lost their original value due to defective workshop or other causes.

11. Fustiness This can be machine or outfit which and going out of use for functional reasons but not fully phased out.