The Effect Of Sound Store Management On Smooth Materials Flow In Manufacturing Organizations (A Case Study Of Doyin Group Of Companies Nigeria Limited)

Project and Seminar Material for Purchasing and Supply PS

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 Historical 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 8th 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.

1Detergent plant10 tons/hour2009 Flash Bold (10kg, 5kg, 2kg) Wash Rate (10kg, 5kg, 2kg, 1kg) and Sugar Deal.
2Scourer Plant1 ton/dayHi Clean Scourer in Poly and Canisters.
3Soap Plant2 ton/hourToilet Soap, Vogue, Laundry Soap, Hi Clean Bold.
4Sulphonation Plant1 ton/hourSulphuric Acid (Raw Material) for the production of Soap and Detergent.
5Glycerin Evaporation1 ton/day99% Glycerin (Raw Material)
6Silicate Plant10 tons/daySilicate (Raw Material for Production of Detergent Soap)
7Detergent Bar Point1 ton/hourDetergent Bar.

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.

  1. 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.
  2. 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


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:


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.

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

During the course of carrying out the research work, the researchers came out with the following findings: that receiving and inspection are parts of stores inspecting.

Secondly, there is lack of good storage facilities.

Other findings made include

  1. Majority of the company’s workforce have been in service for 1 to 25 years.
  2. It was gathered at the time of investigation that all the principles and practices of stores are normally reaches in the course of the stock taking
  3. It was learnt that the inspecting function of the store has lived up to its expectation in its duties.
  4. Experts were surely employed in different sectors of the store.
  5. That there was an effective training performance for their stores

Also, the researchers discovered that the stockyard is not properly secured (not fenced) the materials inside the yard are exposed to thefts.

Furthermore, good records are not maintained. Such records include the maintained the researcher discovered that poor records main. This effect the effectiveness of store operation. Hence serve as a major impediment to effective stores operations.

In addition, inadequate accommodations (office) for the office available to store staff were too small and in t addition not conducive for them to perform effectively.

Furthermore, there was no unique store location system; the researcher discovered that there was no unified system of locating materials in store. This lead to cost delay during issuing of materials held in the system.

5.2 Conclusion

From the data collected and findings made by the researcher’s, it was observed that the problems confronted by the store section emanate directly from the management of the establishment as a whole such as lack of capital to procure modern handling equipments, fencing of the stockyard and so on.

The researcher will at this juncture conclude that, if the recommendations given below are strictly complied with, it will improve efficiency of store function on this project work gives the researchers the opportunity to know more about stores activities in a service organization and most in particular their store houses at Doyin Group of Companies Nigeria Limited Ilorin.

5.3 Recommendations

The following are the recommendations made by the researcher after carrying out a thorough investigation on the store management activities of Doyin Group of Companies Limited, Ilorin.

  1. Good storage facilities should be made available so that the life span of materials held in the store can last longer and to prevent deterioration of materials and spoilage.
  2. Application of principle of first-out so that materials do not stay more than necessary.

The stores keeper in charge of the storehouse should be named dedicated to their job.

More accommodation should be provided for the staff to ensure their efficiency, proper and adequate record of store transaction should be mention in order to aid accommodation.

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