CHAPTER ONE
BACKGROUND TO THE STUDY
INTRODUCTION
It has been established that a large
percentage of the expenditure of the manufacturing industries is made up of
purchase of materials, spare part and component up to fifty percent of
company’s budgets.
The magnitude of the expenditure
emphasis the importance of performing the store function in the meet effective
manner possible.
Further more, since materials
components and spare constitute life wire of any big or small organization left
and in operating store once they are buying quantities of materials that cannot
be used immediately must buy raw material according to it production schedules
and keep them in the store pending the time that these materials are to be use
or needed.
Moreso, its production cannot sell at
the product-produced, it store them pending the two effectives demand is made.
The important point is that not all
the raw materials and components bought are used instantly but rather some are
kept temporary. Also the outputs are store unit that are need by the final
consumers. Also the role of store in manufacturing industries is well
emphasized that due to the importance of store department in an organization
both private and public sector need a well defined store functions for an
effective storage of materials spare and component at a minimum economical level.
The store function has the
responsibility for the receipt custody and distribution of stocks and for the
determination of appropriate quantities and qualities of material to be held
since order that operational needs, may be in an economic possible therefore,
store management can become an important tools for the achievement of
organization objectives.
This project has been design to cover
store and its relationship with other department in manufacturing company with
reference, Nigeria bottling company Ilorin , Kwara state.
Any organization whatever, either
manufacturing of serving, its bound to have a store department in one way or
the other for keeping of materials used within the organization. There is no
industrial unit or public undertaking of substantial size that can efficiently
and effectively managed without a store unit, as set in any organization is to
assist in production of good and services.
As it is well known the primary objective
of a store is to provide the services cannot be accurately provided if the
store unit does not work in collection with the other department within the
organizational. The failure of the store department in performing it
outstanding function within the organization structure could lead to a friction
or less of efficiency among other department.
1.1
STATEMENT
OF GENERAL PROBLEM
When carrying the store function in
manufacturing industries there are some inevitable problems that do arises
during the course of the study, the researcher has observed that large quality
of materials input and maintenance repair operating (MRO) are store, since
active measure are not taken control varieties. This ineffective and
inefficient method of controlling stock is faced by the company under study of
it’s method purchasing which can cause over-stocking and under stocking.
The problem of over stocking is a
stock whereby there are more materials component spare part in the store than
expected or needed for operating during certain period of time. Under stocking
on other hand is another problem whereby is carrying less quantity of material
required by the user department of an organization.
The store taking is another problem
become of the varieties and volume of item held, it difficult for regular
stocking and this regularity in store taking can cause problems such as
obsolesce and redundancy in the store department.
1.2
SIGNIFICANCE
OF THE STUDY
The
project work carried out on the role of store department and its relationship
with other department in a manufacturing company will be of special benefit to
store official or personal and purchasing officer who wishes to know how
important the role of store department in
a manufacturing organization.
This
research work is expose or broaden his knowledge about the subject matter and
it has a great significant to the point in time when there is needed to know
more about the role of store in a manufacturing company.
This
purpose of this research work in partial fulfillment to the requirement of the
award of national diploma in purchasing and supply of the institute of
financial and management studies (IFMS) Kwara state polytechnic Ilorin.
1.3
OBJECTIVE
OF THE STUDY
This research work was carried out to
achieve work was carried out to achieve many objective. One of these objectives
is to find out how Nigeria Bottling Company plc Kwara State Ilorin handles its
stores operations and the problem associated within the management of stores.
Another objective of the study is to
point out one of the areas where majority of the organizations are making a
very mistake by allowing their store operations to be handled by unqualified
store personnel’s.
This research study has the aims of
making all profit oriented organization to realize how much is being lost daily
as a result of non-recognition of the store functions.
In effect, the research work serves
as an eye opener for all profit oriented organization to see store management
as a cost saving unit of the organization and direct contributor to the overall
profit of the organization.
1.4
HISTORICAL
BACKGROUND
Nigeria
Bottling Company plc came to Nigeria in 1963, when its first plant was set up
in Lagos. It was beginning of an exciting story of growth and development
particularly, during the past ten years, Nigeria bottling company is today
Nigeria number one better of soft drinks selling more than Nigeria number one
better of soft drinks selling more than six million bottles per day, a figure
which is still growing with the continuing expansion of the existing eighteen
plants in various parts of the federation.
Fanta
is among the number one best sells in the orange segment and the most widely
sold lemon limes drinks in Nigeria Bottling company include fanta ginger ate,
fantatonic, fanta soda and real bitter lemon.
The
success of coca-cola has brought development of number of sister industries and
contributing to the growth of Nigeria economic. The delta grass company is
agree which the million of bottles require to keep a large bottling company in
operation and growth factory, factories is in Ijebu-ode and Kano which manufacture
the mental growth seal to the bottles.
In
addition, the trucks which have a familiar sight in many part of the country
delivery drinks which make eight in many part of the country delivery drinks
which eighty thousand dealer assembled in Nigerian. Nigeria Bottling Plc
Company is also the largest manufacturing of carbon dioxide use to carbonate
soft drinks in the country. It employs over six thousand Nigeria people in all
field of operation.
The
manufacturing combination of sugar, water and concentrate with same standard
which maintained through out the world. The headquarters Nigeria bottling
company is at levities building Iddo house Lagos.
The
various plant sited all over the federal have been currently divided into for
different regions namely the western region easy study a reality of which
Ilorin plant was contracted and stalled in 1979 and it was commission by his
Excellency Colonel S.O Ifere. It was the tenth establishment among the
eighteenth plants. The every plant is nearly located along old Asa Dam Road,
Ilorin. Coca-cola bottling company is one of the multinational companies in the
country which well know to be owned by levities group of companies now made up
of shareholder.
1.5
ORGANIZATION
STRUCTURE
The
organization structure of Nigeria bottling company plc is composed of executive
chairman who is mostly appointed by the share holder. Also is the executive
director the overseer, the general manager and the regional manager. Then,
their divisional executive come from each of overall departments in the
federation.
The
branch plant was headed by a plant manager, quantity control manager and other
like factory manager, plant accountant etc. the micro biologist and the
personal manager. Under them are superintendents and supervisors and other offices.
The
organization structure will be explain better with the organization chart and
broaden its knowledge about the subject matter and it has a great significance
to point in time when there is need to know more about the role of store in a
manufacturing company.
Personnel
manager
Company secretary
Sales
Production factory quantity store
financial
Manager
Manager Manager control manager
Manager
Unit
sales manager chief security store keeper Company officer accountancy
Depot
development Deputy Cashier
The personnel manager is the
administrative head of the plant. The company secretary assist the personnel
manager in the administrative of the plant.
There is six other principles staff of
the plant who also assist the personnel manager. They are the manager in charge
of sales, production, factory, quality control, store and finance. The unit
sales managers are in charge of the deports and they report directly to the
sales manager.
1.6
DEFINITIONS
OF TERMS
·
STORE:
is an area in which all kind of materials need for production, distribution,
maintenance, packaging etc. are store, receive and issued, it is basically
concerned with holding of stock.
·
RECEIPT:
this is the process of receiving goods from all success into a store house it
may be from out side supplier, production slop or from other store houses
within the organization.
·
INSPECTION:
means the examination incoming goods for quantity, after there is separate
inspection department that undertake this work for most, if not all materials
but otherwise store personnel inspect goods
·
ISSUE
AND DISPATCH: this is the process of requiring
demand selecting the items required and hand line them over to the user. It
includes also where necessary the packaging of issue and the loading of
vehicles with goods and delivery.
·
STOCK
RECORDS: this is the document of recording day to
day transaction; fill particular of individual receipt issues and balance of
stock. And it is necessary to decide how much information is to show on the
records, where they are to be kept and weather they are to be entered by pen in
ink method or by machine.
·
STORE
ACCOUNTING: is the process of recording details
of stock movement and balance in value
·
STOCK
TAKING: this is the process of physical
verification of the quantity balance and condition of the entire range of item
held in store.
·
MAXIMUM
STOCK LEVEL: is the level below which stock
should not normally be allowed to rise.
·
OBSOLETE:
an item is regarded as obsolete which it is not longer in operation practice or
production method.
·
REDUNDANTS:
when the quantity of an item in stock is more than reasonably necessary to
provide an adequate services to the production or operational activity, the
excess over the normal holding is said to be redundant.