The Role Of Store And The Relationship With Other Departments In Manufacturing Company (A Case Study Of Nigeria Bottling Company Ilorin)
This research work will be objectively carried out on the role of store and its relationship with other department in a manufacturing company’s using Nigeria bottling company, Ilorin Kwara State as a case study.
This project is basically concerned with the importance of stock, its function as well as its relationship with other department in a manufacturing company.
More so, this research work is design to enlighten on the role of store in effective performance of any manufacturing company, which greatly depend on the prompt and efficiently supply of purchases material and services to the organization. Nevertheless, the success of any manufacturing company requires close liaison and corporation between store department and all other internal department such as marketing, production design, engineering, finance, quality control and personnel department.
This write up will be divided into five (5) chapters in order to facilitate easy reading and better understanding.
- Chapter one contain the introduction of the subject matter of the study, statement of the problem encountered in the course of carrying out the research, the rational of the study which is partially fulfillment of the award of national diploma (ND) purchasing and supply in Kwara State polytechnic, Ilorin.
- Chapter two deals with literature review. This will include the definition of store, functions, important and policy in an organization and method of store equipment employed in the manufacturing company.
- Chapter three gives detailed account of method to be used in carrying out the research work.
- Chapter four deals with presentation and analysis of data.
- Chapter five contains the summary of the whole study after recommendation as for each of observed problem.
This chapter will also contain a brief comment made on the finding in the research work which will serve as the conclusion of the study.
1.1 Background to the Study
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
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.
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.
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.
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.
Is the process of recording details of stock movement and balance in value
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.
An item is regarded as obsolete which it is not longer in operation practice or production method.
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.
Summary Conclusion and Recommendation
5.1 Summary of Findings
Nigeria bottling company is today Nigeria number one bottler of soft drinks producer in Nigeria.
The researcher’s finding focused on the role of store and it relationship with other department in a manufacturing company in which Nigeria bottling company has beer chosen as a case study.
Obviously the store function of this company was set up for the purpose of making sure that there is balance flow of raw material components, tools spare parts, and general store as required. Further more, the store function receives an issue work in progress and finished products.
Acceptability of all receipt, issue and goods in stock is part of the objective management for establishment the stores. It is doubtful in this company to say reasons for establishing store department is not achieved. The researcher observed that the store department is not given the free hand to operate and the store personnel’s were not competent to handle the store achieved in the sense that the company employee unqualified staff to maintain store department. It was also discovered by the researcher that most of the manufacturing companies are yet to know the significance role of store department and its relationship with other department in an organization. In which Nigeria bottling company does not allow store department of the other company to perform its role as expected.
According to the researcher, it has been observed that the store department it not well recognize in Nigeria bottling company and they operate on a clerical basis of which this has weekend its relationship with other department. During the investigation conducted by the researcher and the result collected from the respondents from the data presented, it was discover that the store policy operating in Nigeria bottling company is centralized on the store and purchasing department are in Lagos. There is only one main store, which is divided into three section raw materials, the finished goods store and the spare part section.
However, the researcher observed that the centralization of store department find it very hard to supply the necessary materials because of the central store in Lagos to the plant at Ilorin.
There is a clear line of responsibility observed that the raw material of the store is attached to the production department, the finished goods section is attached to the sales department while the spare part section is attached to technical department.
The researcher observed that the company employ only secondary school certificate holder to maintain store who control the department the finished goods store under the distribution and the spare part. Section under the maintenance department. The researcher also discovered that the store head are not allowed to use their initiatives and discretion.
From the research conducted so far the researcher would like to conclude that the role of store and its relationship with other departments observed in Nigeria bottling company PLC Ilorin is not far from what is obtainable in other organizations having stores department.
It must be noted that technical changes very high nowadays, approaches and future demands. Therefore, examine the role of store and its relationship with other departments in a manufacturing and other organization will definitely benefit from it.
The researcher has analyzed some of the constraint affecting the store department and its relationship with other department in Nigeria, Bottling Company.
Based on the research findings, there is evidence to show that Nigeria Bottling company does not have the term to contract and save money and time for the out its function. This will increase the profitability the organization.
Moreover, the Nigeria Bottling Company should revise its policy and have a written down policy that two govern it relationship with other department enhance effectiveness and efficiency as materials department and should be headed by well qualified purchasing and supply personnel as material manager.
Furthermore, management should create a conducive environment for a good relationship with other department of the organization. Lastly despite the provision of modern safety device by the company. Its worker both in the store and other departments, we observed that some worker are not used to wearing them. The management should toy and encourage the staff to be using these safety devices.
The Role Of Store And The Relationship With Other Departments In Manufacturing Company (A Case Study Of Nigeria Bottling Company Ilorin)
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