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.
A. Alphabetic
code e.g ABC, DEF etc
B. Numerical
code e.g 0123, 5710
C. Alphanumerical
code e.g A102, B2DF etc
D. Colour
code e.g for iron, red, blue, colour for steel
E. 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 8th 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.
A. Piece part:
They are components manufactured from raw materials to make assemblies or
sub-assemblies by the manufacturing of the finished product.
B. Raw materials:
Materials which undergo changes through manufacturing processing in the course
of being incorporated into the finished product.
C. Finished product:
These are product ready to be sold to te customer or for future use or
consumption.
D. Scrap and residual:
These include waste materials and out off resulting from the production
process.
E. 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
F. Work in progress:
Companies incomplete items in the course of manufacturing
G. 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.
H. General stores:
This usually includes a wide various of miscellaneous items required for day to
day running of organizing.
I. Bought out parts:
This is the name given top components and part purchased from outside suppliers
J. Packing materials:
This will include variety of materials used for the packing of products either during
the production process storage or transportation.
K. Specification:
This is a document which presenters in detail, the requirement to which the
supplier or service must confirm.
L. Standardization:
This is the process of reducing the number of varieties stock to a controlled
workable minimum.
M. Simplification:
The elimination of all labour and materials not absolutely essential so that
more effective production can be obtained
N. Variety reduction:
This is the process of reducing the number of types, size or grades of a
product made purchased or stocked.