THE EFFECT OF SOUND STORE MANAGEMENT ON SMOOTH MATERIALS FLOW IN MANUFACTURING ORGANIZATIONS (A CASE STUDY OF DOYIN GROUP OF COMPANIES NIGERIA LIMITED)

CHAPTER ONE

1.0 Introduction

This project
was been design to cover the effects of management on the smooth flow in
manufacturing industries, Doyin investment company plc. For any organization to
work effectively and in order to increase profit margin of the organization there
must be effective management of inventory. Once the organization perceive the
desire to buy some materials and equipments either for usage within the offices
or for servicing works outside the organization, the role of store management
becoming inevitable.

        The
store sees the control of stock by ensuring that goods or materials are
checked, recorded and put in appropriate place in the store. In a service
organization, production of goods does not take place but service are rendered.
In order to brink about efficient services, appropriate methods, techniques
must be practice in the store.

It is the aim
of the researcher to look into low section or department is managed in a
typical maintaining organization. The management of the store will be
determined by its size and types of materials held in the store. These factors
will equally determined the use of the centralized store in system or
decentralized store system and the recognitions of sub-store in the
organization. It  is expected therefore
that the affairs of stores department is to be handled by the professional in
the field.

1.1    
HISTIRICAL BACKGROUND OF DOYING
INVESTMENT COMPANY      

Doyin
group of company Nigeria limited is the first wholly indigenous soap and
detergent manufacturing company in Nigeria. It was incorporated on 8^th
October, Asa dam road, Ilorin the Kwara state capital.  

Doyin Group
of Companies is owned by courageous and experience industrialist Prince (Dr.)
Samuel Adedoyin, who had for many years been championing indigenous technology
background integration and the use of location materials in the call of the Kwara
State Government on indigenous to join hand with the State Government to industrialized
the state. Company has on its board, Prince (Dr.) Samuel Adedoyin D. with FWADE
piloting at the chairman and Managing Director which is the Executive Director.
The Management comprises a list of 27 Managers. Some who are heads of various departments
with Engr. T.N Njoko as the General Manager?

        The
company started operation with one detergent plant with 5 tons/hour capacity in
1985 (presently increased to ten ton/hours) and metamorphosed into a conglomerate
of seven plant by 1994 as shown in the table below.

        The
cardinal belief of the company is that human resources are its most available
assets.

        The
staff strength of forty (40) with one expatriate in 1985 haws steadily
increased to about 1000 work force who are entirely Nigeria at present. The
company put a high premium on training and re-training all categories of staff
at organized courses, workshops, and seminars in plant and on  the job in the field to sharpen individual
staff.

        This
became necessary to retrain the very of the work force to turn around the
company; weak points ensure industries growth and survival amidst the healthy
rivalry prevailing with allies industries.

        The
company compares favorably in the provision of effective medical and insurance
scheme transportation and incentive package etc. to boost workers morale, we
however, do not mortgage enforcement of discipline.

        The
company’s range of products has continued enjoy good patronage from Nigeria due
to their consistently high quality. It is in record that Global Soap and Detergent
Industry was he just indigenous company to have recalled the “NIS” Certificate
mark for quality with its first 3 years operation. There are 17 sales depots
scattered all over the federation to service the nooks and corners of the
country.

1.2   STATEMENT OF THE
PROBLEMS

        During
the course of carrying out the research work the researcher discovered that the
store management of the organization under study was the feed with the
following problems.                                  

i.   
The first problem relates to how the acquire trained
personnel in handling the stores activities. There were very few qualified
personnel to handle the store operation effectively. The staffs handling the
stores operations are those with less educational backgrounds like the primary
seven and school certificate holder. So that by virtue of their long service
they become executive in the store line.

ii.   
Secondly, lack of goods storage facilities for the materials
held in the store. Certain re-equipment and facilities have to be made available
so that materials will be in proper state or condition, but researcher
discovered that some of these facilities are lacking in the store of the establishment
under study.

1.3   OBJECTIVE OF THE
STUDY

        The
primary objective of writing this project work is to ensure that the researcher
satisfy one of the basic criteria for the award of National Diploma in
Purchasing and Supply awarded by Purchasing and Supply department Institute of
Finance and Management Studies Kwara State Polytechnic, Ilorin.

        This
research project will also serve as a useful reference and source of
information to future researcher writing in the similar topic.

1.4   SIGNIFICANCE OF
THE STUDY

        The
research work has a great significance to uncovered and shed more light on
indispensability on the role of Stores Management in manufacturing
organization.

        This
project among other thins will ensure the management of the case study through
proper documentation on the stock items understand that basis for food store

        It
ensure of continuity of operation in an organization control has in
manufacturing for food record keeping.

1.5   SCOPE OF THE
STUDY

        The
research work is to cover a broad area in stores operation with regard to the
role of store, management in manufacturing organization (Doyin Group of  companies) it entail the following specific
area which the researcher will emphasized upon in the course of writing the
project stock.

        Responsibilities
of store, security aspect of store houses, stores yards, location, storage of
explosive in the store, issuing and receiving of items in the stock taking
purpose of valuation.

1.6   LIMITATIONS
OF THE STUDY

        The researcher intended to visit many
manufacturing industries so as to gather adequate information, but because of
the following constraints, the intention could not materialize.

        One of the important problems
encountered by the researcher during the conduct of the research was financial
constraint which inevitably deprived the researcher from visiting many placed
for information.

        The management attitudes to release
vital information is another problem encountered; some of the researcher could
also be one of the problems encountered in the course of vital information
required were not given by the management of the case study on the sound of
using a correspondent in materialized.

1.7   DEFINITION
OF TERMS

        Store:
denotes
or could be a small or large building or an area in which all kinds of material
tools spares needed for production,

distribution
and maintenance, packing servicing area stored until they are stipulated below:

Quotation: A sort of write-up that contains information about a
specific item in connection with market price expected selling price, buying
price and this is quantitative of items.

Surplus and Deficiency: When the amount of stock found by
physical examination fails to agree with balance on the stock record a
discrepancy exists if the stock found exceeds the recorded figure, there is a
surplus and conversely, if the physical stock is less than book figure there is
a deficiency.

Store Requisition: This is used mainly by all department
of the organization to request for their material need from the stores.