The Role Of Material Coding And Classification In Efficient Stores Management (A Study Of Nigeria Bottling Company Owerri)

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The Role Of Material Coding And Classification In Efficient Stores Management (A Study Of Nigeria Bottling Company Owerri)


Abstract


This study was carried out to examine the role of material coding and classification in efficient stores management using Nigeria Bottling Company Owerri as a case study. The study was specifically set to examine the impact of inconsistent coding and classification, enumerate the need for the use of effective and efficient coding system, identify the limitations to materials coding and classification, offer useful suggestion to management towards the application of the various method and techniques of coding and classification of materials and assess the organization on the use of coding materials. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of staff of Nigeria Bottling Company Owerri. In determining the sample size, the researcher conveniently selected 147 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and mean scores. While the hypotheses were tested using Chi- square statistical tool. The result of the findings reveals that the advantages are attributed to as efficient coding system include: the standardization of inventory items, avoiding duplicity of items, facilitating input and output of materials and improving communication with the customer. Furthermore, the study revealed that the methods of coding are being used in the organizations includes: create and maintain websites and other critical online infrastructure, allows humans to communicate with devices such as calculators, pseudocode and flowcharting. Therefore, it is recommended that the organisation should employee professional workers to undertake codification and facilitate their continuous training to ensure they are well equipped with necessary technical skills, this will ensure effectiveness of warehouse. To mention but few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

Nigeria bottling company (NBC) Plc, Nigeria largest bottler of non-alcoholic beverages was incorporated in November 1951, as a bottling subsidiary of the A.G leventia group, with the sole franchise to bottle and sell coca-cola products in Nigeria. The production of coca-cola began in 1953 at a bottling facility in the basement of maintained hotel. That same year, the first plant was commissioned at Malu Road in Apapa Lagos.

In those days of the small beginnings, the production line consisted mainly of manual operations and the output of a dozen cases per day. However, by 1960, annual sales has exceeded one million case and presently, sales estimates are in excess of 140 million cases annually, over the years, NBC has grown form just one bottling plant to 14 plant, over 80 deports and numerous sales outlets nationwide.

The Nigerian bottling exist in refresh the consumers, partner with the customers, reward their stakeholders, and enrich the lives of their local communities. They produce and sell unique brands which bring pleasure to millions of consumers around the world everyday. The basis proposition of their business is simple.

In carrying out this function of Nigerian bottling company production, many materials are required. This bottling company, having recognized the need for proper care of these materials appointed store personnel and store manager, and also established a purchasing unit charged with the responsibilities of suppliers selection, ordering, progressing, acquisitioning and procuring these materials. The store manager (including his personnel was charged with the responsibilities of storing, inspecting and developing systems for effective identification coding and classification of the material in the store houses of their organization as their first responsibilities.

The stores manager of bottling company in his efforts to meet up his first responsibility of effective identification and coding of materials has grouped all the materials required, purchased and produced. These are located in different store house at different parts of the organization, most of which are sited closer to the user points, and their stores are named accordingly, for instance, information technology store, production store, engineering stores. The basis objective is to develop an unambiguous classification and coding system that facilitates clear internal communication ideally. This system should be designed so that it can be used effectively by all the departments in the organization clearly. The purchasing and store department are critical areas where the system must provide consistent and unambiguous identification and coding of materials.

If the stock items are given a scientific identification codes a complete catalogue can be assembled so that when a part is required it is possible to determine very quickly it if is in stock. The stock records themselves will then indicate the exact stores location. We recognized the British standard institute who has done a great deal of work in establishing standards for materials and product, and when a standard specification number is quoted both customer and supplier will know exactly what is being referred to. Even where it is not possible to develop a sophisticated coding system, or arranged in logical lines will e of great benefit to a business in avoiding errors in orderings, issuing and pricing, etc. The stores manager of Nigeria bottling company through his grouping of material has arranged these materials on logical line for easy identification thereby avoiding errors in locating, ordering, issuing etc of item of stock in the organization. The code appears on all document relating to the movement and the use of materials and are marked against appropriate lines and racks.

With these recognition, the store manager recognized the need for the use of stores vocabulary or catalogue. Therefore, the success of any materials control, or management of materials highly depends on the system adopted for effective coding and classification of materials stored.


1.2 Statement of the Problem

Although materials coding and classification is considered a clues or yardstick for easy identification in Nigerian bottling company.
The organization having chosen all of the above coding system has resulted to giving every item different code numbers. This leads to the increase in the volume of the store vocabulary.

Nigeria bottling company is faced with the problem of inconsistency in classification of materials in the stores section. For instance, there is a section of spinning materials which is normally under the spinning store but recently it has been transferred to the administrative stores. There is also lack of a section who takes adequate care of the organization store vocabulary. The organization is also faced with the problem of inappropriate classification of materials.


1.3 Objective of the Study

The broad objective of this study is to assess the role of material coding and classification in efficient stores management using Nigeria Bottling Company Owerri as a case study.

Other specific objectives includes:

  1. To examine the impact of inconsistent coding and classification.
  2. To enumerate the need for the use of effective and efficient coding system
  3. To identify the limitations to materials coding and classification.
  4. To offer useful suggestion to management towards the application of the various method and techniques of coding and classification of materials.
  5. To assess the organization on the use of coding materials

1.4 Research Questions

The research is guide by the following questions:

They are:

  1. What advantages are attributed to as efficient coding system?
  2. What extent have coding simplified specification and standardization of materials in pz industries plc?
  3. What is the importance of stores vocabulary in the organization?
  4. How methods of coding are being used in the organizations?

1.5 Research Hypothesis

  • Ho: Material coding and classification does not play a significant role in efficient stores management using Nigeria Bottling Company Owerri.
  • Ho: Material coding and classification plays a significant role in efficient stores management using Nigeria Bottling Company Owerri.

1.6 Significance of the Study

The researcher believes that the project will succeed in throwing more light on the subject matter. It will also go a long way in picking that conscience of all who have or assumed responsibility or materials coding and classification of purchased materials in manufacturing industry with particular reference to Nigerian bottling company Plc.

The significance of the study derives the usefulness in the following ways

  1. It will help the researcher to appreciate the need of coding and classification of items in private organization.
  2. To the company, it will highlight that a purchasing manager and other manager in different organization will benefit by knowing that some materials that are stored in the store or warehouse will be easy to be identified or located because of the coding and the classification system.
  3. It will provide employment opportunity for many people and also faster communication between the store manager and the workers.
  4. Finally, student or anybody that does not have an idea of the use of coding system, if comes across this project will also gain and have the knowledge as well. And also use this project as a research book.

1.7 Scope of the Study

The scope of this study borders on the role of material coding and classification in efficient stores management using Nigeria Bottling Company Owerri as a case study. Hence, the respondents for the study will be obtained from staff Nigeria Bottling Company Owerri.


1.8 Limitation of the Study

The writer tends to cover the needs for materials coding and classification in a manufacturing industry with particular reference in Nigeria bottling company

In carrying out this research projects. The researcher was confronted with various limitation

  • Financial Constraints: Due to the heard economic situation enough finacé that should have allowed most diversified research wasn’t available.
  • Time Constraints: The researcher combine her class work with research itself. This made the researcher to experience a very high schedule. As she had no transport of herself the problem became worse.
  • Transportation: Transportation problem possed a big trait to the project. The researcher wasted much time for taxi, and may succeed only to get her point of call very late.
  • Other factors that limited this study was that there is scarcity of stores management texts by Nigerian authors in this country. This made reference in previous works very difficult.

1.9 Definition of Terms

Coding:

Coding is a system of writing in which letters of numbers or a combination of both are used to reduce lengthy words into a small space.

Stock –catalogue:

It is a booklet containing the list and description of every item normally carried in inventory.

Inventory:

It is a detailed list, example of household goods furniture, etc. carried in store.

Stock:

Store or goods available for sale, distribution or use, especially goods kept by a trader or shopkeeper, supply or equipment, stock or materials

NIV: Not in Vocabulary:

These are items that are not included in the organization coding system.

Store Vocabulary:

This is a book or file that contains the code number of all the items held in stock and it full description.

Suppliers Code:

This is where the stores employs the coding system of the suppliers of the gods.

Black Coding:

This is the assignment of numbers of sequence by group of various sizes other than tens, hundred and thousands. A block can consists of any quality of number necessary to cover the item in a particular classification.

Code Symbol:

This is the symbols used are either alphabetical (eg OPEC), numerical (e.g 05/06/1245) alpha-numerical (e.g Exc/p/043).


1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows.

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the role of material coding and classification in efficient stores management using Nigeria Bottling Company Owerri as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary

In this study, our focus was to examine the role of material coding and classification in efficient stores management using Nigeria Bottling Company Owerri as a case study. The study specifically was aimed to examine the impact of inconsistent coding and classification, enumerate the need for the use of effective and efficient coding system, identify the limitations to materials coding and classification, offer useful suggestion to management towards the application of the various method and techniques of coding and classification of materials and assess the organization on the use of coding materials. A total of 141 responses were validated from the enrolled participants where all respondent are drawn from staff of Nigeria Bottling Company Owerri.


5.3 Conclusion

Based on the finding of this study, the following conclusions were made:

  1. The advantages are attributed to as efficient coding system include:
    1. The standardization of inventory items,
    2. Avoiding duplicity of items,
    3. Facilitating input and output of materials and
    4. Improving communication with the customer
  2. Coding have simplified specification and standardization of materials in pz industries plc.
  3. The importance of stores vocabulary in the organization includes:
    1. Allows two individuals or groups to hold a simpler, clearer conversation,
    2. Honing Business Conversation Skills,
    3. Constantly check that information is understood and
    4. Communicating important thoughts and concepts to others in your work
  4. Methods of coding are being used in the organizations includes:
    1. Create and maintain websites and other critical online infrastructure,
    2. Allows humans to communicate with devices such as calculators,
    3. Pseudocode and
    4. Flowcharting.

5.4 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

  1. The organisation should employee professional workers to undertake codification and facilitate their continuous training to ensure they are well equipped with necessary technical skills, this will ensure effectiveness of warehouse.
  2. The company should put in place all the facilities need for coding and referencing to be functioning which will help in the performance of the warehouse. More so, the industries should train all workers on coding of material in the warehouse .Which will be a plus to the industries.
  3. Adoption and implement of new existing technology to ease work greatly for example CCTV cameras to track inventory in store to prevent theft.

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