The Impact Of Effective Control In A Manufacturing Company (A Case Study Of Spring Bank Plc Owerri)
The impact of effective control in an organization is so vital in both large and small firm upon the efficient of stock control. An effective control system is very important to any organization that holds stock whether in the public or private sector. Serious operational and financial breakdowns can result if a good stock control system is not operated by the sores.
Effective control system must be designed to meet the particular needs of the organization.
Effective control is set up in any organization to assist in the production of goods and services and no substantial size can be efficiently manage without it. The basic aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality.
Table Of Content
- Title page
- Approval page
- Table of content
- 1.1 Background Of Study
- 1.2 The Statement Of The Problems
- 1.3 The Objectives Of The Study
- 1.4 The Relevance Of The Study
- 1.5 Research Questions
- 1.6 The Scope Of The Study
- 1.7 The Limitation Of Terms
2.0 Review of Related Literature
- 2.1 The meaning of Stores And Stock Control
- 2.2 Basic Process Of Stock Control
- 2.3 Objective Of Stock Control
- 2.4 Reasons Why Organization Hold Stock
- 2.5 What Should Be Stocked
- 2.6 Cost Implications In Holding Stock
- 2.7 Factors Affecting The Level Of Stock Held By An Organization
- 2.8 Method Of Stock Control
- 2.9 The Impact Of Effective Control In An Organization
3.0 Research Methodology
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Questionnaire Design
- 3.4 Sample of the study
- 3.5 Other methods used
- 3.6 Data sources
4.0 Presentation and Analysis of Data
- 4.1 Introduction
- 4.4 Analysis of data
5.0 Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
1.1 Background Of The Study
For an organization to be successful, it depends on the efficient control in that organization. Therefore, for the study of purchasing and supply management to be complete, there must be efficient control of stock. Store management is very closely liked with product and distribution and is a much neglected area of business study. Yet stock control is a vital part of all industrial organization, and it must be design to suit the particular needs of the organization .Stock control is set up in any organization to assist in the production of goods and services and no substantial size can be efficiently manage without it. The basic aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality. Bin (1952: page)
According to (BIM 1952) stock control represents the clerical control of the movement of materials into and out of the stores, and of the level of stocks in the stores at all times with due regard to the economy in storage as well as on ordering costs, purchase price agreed, and the level of organizations working capital.
The stock control process focuses attention on factors related to time utility location, quality and quality of materials used by the operations of the organization.
1.2 Statement Of The Problem
The efficient of stock control in an organization is so vital in both large and small firm upon the efficient of stock control. The researchers, in carrying out this research work were able to identify some problems that hinder the progress or smooth control of stock in an organization. Some of these problems are identified below:
- The method of sources of information used in the organization in terms of checking the control of stock is not encourage able in the sense it was done without considering if the individual has the capacity.
- Professionals were not employed in the purchasing department and this makes the strategies involved in the efficient control of stock not to the work or job were not well trained.
- The efficient stock control records are not properly kept and this makes the stores manager/keeper to be very active.
- Another problem which hinders the progress of effective control in an organization is the type of materials purchased by the procurement manager. This implies that the material might be in a bad shape, thereby stops the smooth running of the organization.
- Finally, the stock held in stock for so long can also cause a problem in controlling the stock in an organization. This means, the stocks are not supposed to be keeping in the stores for so long before that are dispatched to be they are needed.
1.3 The Objective Of The Study
Obviously, every organization, according to carter (1982:31) has its own needs and requirements which have to be met by its stock control system. However, if we look at stock control in terms of the average medium size production and distribution organization we will obtain a complete in selecting and operating stock control methods control the level of stocks, the stock controller of Fthe organization is seeking to achieve the following fundamental objectives.
- To stress on the importance of stock control in an organization, thereby motivating the management to develop interest on the stock control function.
- To highlight on the need of employing young and energetic employees for the purpose of stock control operations.
- To lay emphases on the importance of employing a workers of technical know – how on the current advancement of technology e.g. computer.
- Employing people with business experience knowledge for the purpose of transacting effective with suppliers and other department in another objective.
- To ensure that there is efficient and effective control of stock in the organization.
- To control the inflow and outflow of the materials held in the organization.
1.4 The Relevance Of The Study
The relevance of the stock control in an organization to know the various ways of controlling the stock held in there firm/organization.
Stock control is an important aspect of business management and must not be neglected by management. This is so because any management that neglects it control of stock will generally reduce its profit potential or even the level of service provided, shortage in inventory and as well as tools, for instance, will interrupt production, rendering machines and labour force idle and will further lead to losses in sales revenue. In the same manner, if there is an unintentional excess buying and over stocking of materials in inventory, the organizations fund will be tied up in stock and will represent cash that would have been used for other purpose.
1.5 Research Question
In other to make a complete investigation of subject matter, the researcher has come out with the following question; thus:
- Does store department have adequate number of staff?
- Does your organization adopt any method to supply requirements of materials without holding stock?
- Do you find out reason why customer waste much time in the company?
- Does your organization control their stock?
- What are the tools for stock and material control.
- What are the process and procedures for stock control?
1.6 The Scope Of The Study
In industries as well as in the public sector organization, the “stores” has remained as one of the production departments, and storage, whether of raw materials, partly processed work or finished products, in part of the sequences of operations both clerical and physical which starts as soon as the customer’s order or management decision to manufacture and is completed by the dispatch of the finished product.
The major aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality so as to achieve minimum output and reduce manufacturing cost. In treating the stock control as an operation, the manager must have similar objects in minds, his aim in this regard to ensure that every piece of material, whether raw or worked, coming into ant store, shall stay therefore as short a time as possible before moving either out into the factory to be processed, or, in the case of such things spares, tools or building materials, into use.
The essential qualifying condition here is that stock must be maintained just high enough for a constant supply of materials or components to be available when required.
1.7 The Limitation Of The Terms Or Study
An investigation of this kind is confronted with several limitations, its limitations; its limitations are as follows.
Financing this project has been a trying experience, because of the prevailing economic condition in the society. So, the researcher is unable to travel and cover many places of interest in order to gather comparable data or information for the research work.
Limited Time Factor:
Due to the schedule of academic activities for every final year students both in ND’s and HND’s of the polytechnic is lactic. The researcher needs to attend classes, read other courses that is related to her course of study, collect data/information from other polytechnics which she would have loved to do but due to limited time factor, the researcher was unable to so.
This also a hindrance to the study. These projects work is disturbed from effects of regular rainfalls and hot whether wind thereby, hinders the researcher’s movement in her bid to collect data/information and distribution of questionnaires to respondents.
The researcher was also confronted with transportation problems. She wasted so much time on the road or on the vehicles boarded, and thereby making her to reach her place of choice to get information from the school libraries.
5.0 Summary, Conclusion, And Recommendation
The researcher concentrated on the need for efficient stock control in an organization.
In chapter one of this project, it has been stated clearly that the need for efficient stock control in any organization is necessary. Therefore, management of any organization should know that inefficiency procurement of materials can seriously affect the financial health of the organization resulting to its closure.
Purchasing as said is the hub of any business organization. So to decentralize the function of purchasing is to deny a firm some of its potential profits. But centralization of purchasing it to deny a firm some of its potential profits. But centralization of purchasing function is essential for the attainment of both optimum operating efficiency and maximum profibility.
Finally, if this procedures is followed, purchasing objective will be ensures it term of obtaining material of the right quality and right quality of material from the right source, at the right time and place for effective stock controlling.
With the finding of research, the following conclusion were drawn
For there to an efficient control of stock in an organization the management should put more interest on it store.
This is so because, in every organization store is regarded as a profit earning service as earlier stated, because it provide the production department with raw materials and the production department sends its finished products, scraps, work in progress materials etc to the store and there by maintaining stock for efficiency in the organization.
Though there are professionally qualified staff in an organization, but the need for efficient stock control cannot be achieved if the staff in the field of purchasing and supply management are not employed.
Finally, every organization should have it at the back of their minds the centralization of purchasing function is essential for the attainment of both optimum operating efficiency and maximum profitability.
For there to be an efficient stock control is an organization, these suggestion need adopted.
The management should make every effort to officially introduce and stress on the importance of stock control in the organization where it (stock) is less regarded.
The managements try to encourage and motivate stock controllers in the following ways:
- They should educate policy in organization on the importance of efficient stock control in the organization
- They should provide adequate facilities such as good storage house, stockyard and adequate materials handling equipment.
- The should provide modern store handling adequate such as overhead carriers, hoist, elevators, trucks, trolleys etc.
- They should provide adequate security in the stockyard to avoid theft or fraud.
- New offices should be recruited especially newly graduated students from the field of purchasing and supply s as to inject new idea which will produce efficient stock control in an organization.
The Impact Of Effective Control In A Manufacturing Company (A Case Study Of Spring Bank Plc Owerri)
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