Design And Implementation Of An Automated Inventory Control System For A Manufacturing Organization
(A Case Study Of Nigerian Breweries Plc, Enugu)
An Automated Inventory Control System for a manufacturing organization is an intricate and dynamic framework designed to streamline and optimize the management of raw materials, work-in-progress, and finished goods. This sophisticated system employs cutting-edge technologies to monitor, track, and regulate inventory levels, ensuring efficient production processes. By leveraging real-time data analytics, the system facilitates precise demand forecasting, minimizing the risk of stockouts or overstock situations. It incorporates barcode scanning, RFID technology, and automated data entry to enhance accuracy and speed in inventory transactions. Additionally, the system integrates seamlessly with the organization’s supply chain, fostering a synchronized flow of materials and minimizing disruptions. Through continuous monitoring and analysis, the Automated Inventory Control System not only enhances operational efficiency but also provides valuable insights for strategic decision-making, ultimately contributing to the manufacturing organization’s competitiveness in the dynamic market landscape.
This research work is concise and generally summarizes the activities duly
carried out in the design and implementation of an automated inventory
control system for a manufacturing organization. The system is designed to
efficiently handle the movement and tracking of goods through the
replacement of human workers by technology. The manual method or
intervention is labour intensive, costly, and error prone and cannot ensure
the inventory remains up-to-date due to oversight and internal shrinkage.
With the proposed new system, inventory can be updated in real time
without product movement, scanning, or human involvement. The
automated system allows inventory status to be determined and shipping and
receiving documents to be generated automatically triggering automatic
orders for products that are low in inventory. The study outlines the main
concepts of the analysis and design methodology of the proposed system,
compares it to the existing and goes further to explain the design and
implementation of the system using Visual Basic 6.0 for the database. The
fact finding techniques employed is interview, observation, online and
library research.
Title page
Approval Page
Certification Page
Dedication
Acknowledgement
Abstract
Table of Contents
List of Figures
List of Tables
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 2
1.2 Statement of the Problem 3
1.3 Purpose of the Study 4
1.4 Significance of the Study 4
1.5 Objectives of the Study 4
1.6 Scope of the Study 5
1.7 Limitations of the Study 6
1.8 Definition of Basic Concepts 6
CHAPTER TWO
2.0 Literature Review 9
2.1 Comprehensive Overview 9
2.1.1 Purpose 10
2.2 Types of Inventory Control Systems 10
2.2.1 Four types of inventory control systems 11
2.2.1.1 Manual Inventory Management System 11
2.2.1.2 Barcode Technology 12
2.2.1.3 Radio Frequency Identification (RFID) 13
2.2.1.4 Warehouse Management System 14
2.3 How Inventory Control Systems Really Work 16
2.4 What Industries Use Inventory Control Systems 19
2.4.1 Application of Inventory Control Systems 20
2.4.2 Importance of Inventory Control Systems 21
2.5 Warehouse Management Systems 22
2.5.1 Warehouse Management Rules Engine 24
2.5.1.1 Rules Workbench 25
2.5.1.2 Warehouse Management System Strategy 25
2.5.2 Importance of Warehouse Management Systems 25
2.5.3 Inventory Control Systems vs. Warehouse Mgt Systems 27
2.6 Automated Inventory Control System Software 28
CHAPTER THREE
3.0 System Analysis and Design 30
3.1 Methodology 30
3.2 Data Collection 30
3.3 Analysis of the Existing System 31
3.4 Limitation of the Existing System 32
3.5 System Design 33
3.6 Data Base Design 35
3.7 Organizational Structure 38
3.8 System Flow Chat 42
3.9 Top down Design Diagram 44
CHAPTER FOUR
4.0 Implementation, Testing and Packaging 46
4.1 Choice of Development Tools 46
4.2 System Requirements 46
4.2.1 Software Requirements 46
4.2.2 Hardware Requirements 47
4.3 Implementation 48
4.3.6 Implementation of the Login Form 53
4.3.7 Implementation of the Main menu form 54
4.3.8 Implementation of the Receive Supply Form 55
4.3.9 Implementation of Sales Form 55
4.4 Implementation of Supplier Record Form 57
4.4.1 Implementation 58
4.5 Testing 58
4.5.1 Unit Test 60
4.5.2 System Test 60
4.6 Packaging (Integration) 60
CHAPTER FIVE
5.0 Summary, Limitations, Recommendations, Beme &Conclusion 61
5.1 Summary 61
5.2 Limitation 63
5.3 Recommendation 63
5.4 Bill of Engineering Measurement & Evaluation (BEME) – 65
5.5 Conclusion 66
References 67
Appendix 1 70
Source Code 70
Appendix 1 Supply Form 78
Appendix 2 Sales Invoice 79
Appendix 3 Supplier Record 80
Appendix 4 Customer Record 81
INTRODUCTION
An inventory control system contains a list of orders to be filled and then
prompts workers to pick the necessary items, and provides them with
packaging and shipping information. Inventory control may be used to
automate sales order fulfilment process and also manage in and outward
material of hardware. Automation is the replacement of human workers by
technology. For optimal sales and inventory management process, robust
functionality is needed for managing logistics facilities. Warehouse
management functions for inventory control cover internal warehouse
movements and storage and its support helps in the recording and tracking
of materials on basis of both quantity and value.
This application takes care of all supply orders reducing cost for
warehousing, transportation while improving customer service. It
significantly improves inventory turns, optimizes flow of goods. It also
improves cash flow, visibility and decision making providing efficient
execution of tasks using this fast and reliable computerised method
1.1 BACKGROUND OF THE STUDY
The Nigerian Breweries PLC was established in the year 1946. It aims at
providing satisfaction and nourishment to the Nigerian population through
the distribution of drinks like beer, coca-cola, fanta, sprite etc. It is second to
none and for this reason, the demand is high and the company responds to
the increasing demand by stabilizing supply to strike a balance.
Justifiably, the company has the problem of keeping adequate record of
goods transfer and since it is done manually, associated problems of
insecurity, high cost of operation and delay in supply arise. Data processing
in Nigerian Breweries PLC is presently carried out using people, pens, and
paper to control stock and inventory.
The design and development of an automated inventory control system for
the Nigerian Breweries PLC will no doubt bring immeasurable relief from
the problems associated with the manual system.
1.2 STATEMENT OF THE PROBLEM
The Nigerian Breweries PLC is to an extent manually operated and reveals a
number of problems.
The recording of sales and cash received are done manually on a book
that appears rough. Thus, the books are exposed to physical damage,
information can be lost and dust particles are accumulated.
The long list of supply orders waiting to be attended to on daily basis.
The control system is time consuming, less accurate and less efficient,
and the environment is not user friendly.
Inaccuracies often ensue from human error.
The manual system is quite tedious and can be reduced or eliminated with
the introduction of the proposed system.1.3 PURPOSE OF THE STUDY
The purpose of this study is to improve current operational process in the
Nigerian Breweries PLC to its full capacity by developing efficient
computer software that can handle inventory in a computerised fashion.
1.4 SIGNIFICANCE OF THE STUDY
This study is primarily aimed at increasing efficiency in operations, reducing
maintenance and running cost, monitoring the supply of goods and its
distribution and increase profit in the Nigerian Breweries PLC by
introducing an automated inventory control system.
1.5 OBJECTIVES OF THE STUDY
The main objective of this study is to develop a computerised inventory
control management system. Others include;
i. It provides total asset visibility.
ii. It allows reduced inventory stocking levels giving full inventory
history.
iii. It reduces lead time, shelf space, and errors due to damage, fatigue of
staff and overall cost of operations.
iv. It facilitates “just in time” deliveries.
v. It provides full process control for products.
vi. It provides higher level security as the system would be passworded
to prevent unauthorised access.
vii. It shortens cross docking time and speeds up sort/pick up rate.
viii. It helps the management plan, monitor, optimize resources and
ascertain their financial position at any time.
1.6 SCOPE OF THE STUDY
The scope of this study covers the Nigerian Breweries PLC as a whole, and
its customers which include retailers, distributors and the general public.
1.7 LIMITATIONS OF THE STUDY
This project was constrained by the following factors:
(a) Financial Constraints
Bearing in mind the economic state of the nation, it was found difficult in
making both ends meet, because of the exorbitant nature of things nowadays
in travelling for the collection of data needed for the project.
(b) Time Constraints
Looking at the interval between the resumption and vacation of the final
semester for the project to be completed, the time given seemed to be short
for the collection of required information for better work to be done.
(c) Non-Availability of Material
During this project, it was noticed that the required materials needed for the
project are not documented. Those that were documented lacked storage
facilities where they can be reached.
1.8 DEFINITION OF BASIC CONCEPTS
Automation: This is the use of technology or computers to control and
process data reducing the need for human intervention.
Database: This refers to a large store of related data on a computer that a
user can access and modify.
Password: This is a secret code that must be entered into a computer to
enable access to its applications. It is made up of numbers, letters, special
characters or a combination of any of the above categories.
Inventory Control System: A list of orders to be filled, and prompts
workers to pick the necessary items and provides them with packaging and
shipping information.
Computerization: This is the conversion of a manually operated system to
a controlled, organized and automated system.
Research: A careful study of a subject to discover facts, establish a theory
or develop a plan of action based on the facts discovered.
System: A set of computer components functioning together.
Technology: The study of techniques of mobilizing resources such as
information for accomplishing objectives that benefit man and his
environment.Software: A computer program or set of instructions that direct a computer
to perform processing functions.
Information System: A collection of procedures, people, instructions and
equipment to produce information in a useful form.
Processing: This is dealing with something according to an established
procedure.
Automated Inventory Control System For A Manufacturing Organization:
An Automated Inventory Control System is crucial for manufacturing organizations to efficiently manage their raw materials, work-in-progress (WIP), and finished goods inventory. Such a system helps streamline operations, reduce costs, minimize errors, and ensure that materials are available when needed for production. Here are the key components and steps to implement such a system:
1. Inventory Management Software: Choose or develop inventory management software that suits your organization’s needs. Popular options include ERP (Enterprise Resource Planning) systems with integrated inventory modules, standalone inventory management software, or even custom-built solutions.
2. Barcoding or RFID: Implement a barcode or RFID (Radio-Frequency Identification) system to uniquely identify each item in your inventory. This will allow for quick and accurate tracking of items as they move through the production process.
3. Centralized Database: Maintain a centralized database that stores real-time information about your inventory, including item descriptions, quantities, supplier information, reorder points, and cost data. Ensure that this database is accessible to authorized personnel across the organization.
4. Real-Time Tracking: Utilize technology such as IoT (Internet of Things) sensors to track the movement and condition of inventory items in real-time. This helps prevent theft, damage, and obsolescence.
5. Automated Data Entry: Minimize manual data entry by integrating your inventory system with other systems, such as your accounting, purchasing, and production systems. This ensures that data is accurate and up to date.
6. Demand Forecasting: Implement demand forecasting algorithms to predict future inventory needs based on historical data, seasonality, and market trends. This helps in optimizing stock levels and preventing overstock or stockouts.
7. Reorder Point and Economic Order Quantity (EOQ): Set up automatic reorder points and EOQ calculations to ensure that you replenish inventory items at the right time and in the right quantities. This minimizes carrying costs and stockouts.
8. Supplier Integration: Establish electronic data interchange (EDI) or other digital communication channels with your suppliers to enable automated ordering and receiving of materials. This reduces manual paperwork and lead times.
9. Quality Control: Implement quality control measures within the system to ensure that received materials meet your organization’s quality standards. Automated inspection processes can help identify and address issues early in the supply chain.
10. Reporting and Analytics: Create customized reports and dashboards to monitor key inventory metrics, such as turnover rate, holding costs, and stock levels. Use analytics to identify areas for improvement and cost-saving opportunities.
11. Alerts and Notifications: Set up automated alerts and notifications for low stock levels, expiring materials, or any other inventory-related issues. This allows for timely action and prevents production disruptions.
12. Security and Access Control: Ensure that your system has robust security measures in place to protect sensitive inventory data. Implement role-based access control to restrict access to authorized personnel only.
13. Training and Documentation: Train your staff on how to use the automated inventory control system effectively. Provide comprehensive documentation and ongoing support.
14. Continuous Improvement: Regularly review and update your inventory management processes and system to adapt to changing business needs and technological advancements.
By implementing an automated inventory control system with these components and practices, manufacturing organizations can optimize their inventory management, reduce costs, improve production efficiency, and enhance overall supply chain performance.