Need Of Stores Coding And Classification In A Manufacturing Company
(Case Study Of Embik Investment Company Imo State Owerri)
In a manufacturing company, the need for stores coding and classification is paramount for efficient inventory management, streamlined operations, and cost-effectiveness. Stores coding involves assigning unique identifiers to various items, materials, and products within the inventory, facilitating easy tracking and retrieval. This systematic approach aids in inventory control, ensuring that adequate stock levels are maintained while minimizing excess or obsolete inventory. Classification further enhances this process by categorizing items based on various parameters such as usage frequency, shelf life, and criticality, enabling prioritization and optimization of resources. Moreover, an effective stores coding and classification system enhances decision-making processes, allowing for accurate forecasting, procurement planning, and inventory optimization. It also promotes consistency and standardization across different departments or locations within the company, fostering better communication and coordination. Ultimately, by implementing robust stores coding and classification practices, manufacturing companies can enhance operational efficiency, reduce costs, and improve overall competitiveness in the market.
Title page
Approval page
Dedication
Acknowledgement
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research question
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of the terms
CHAPTER TWO
2.0 Literature review
2.1 Introduction
2.2 Types of store coding
2.3 Classification coding and purpose
2.4 Method of coding
2.5 Factors to be consider when introducing a store code
2.6 Classification and location of store
2.7 Store vocabulary
2.8 Store in the organization structure
CHAPTER THREE
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Sources/ methods of data collection
3.4 Population and sample size
3.5 Sample technique
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Interpretation of result (s)
CHAPTER FIVE
5.0 Summary, conclusion and recommendation
5.1 Introduction
5.2 Summary of findings
5.3 Conclusion
5.4 Recommendations
References
Appendix
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In a manufacturing company, whether in the public or private sector have storehouse, warehouse and stock yard where different types of stores or material are received stored and issued to different users.
It is important for all store personnel to have full knowledge and characteristics of all the stores they have in their storehouse, this will enable them identify the stores, correctly record receipts and issues.
It will also help them to look after the materials properly. The store manager in these efforts to meet up his first responsibility of effective identification and coding of stores has grouped all the materials required, purchased and produced.
These are located in different storehouse at different parts of the organization most of which were sited closer to the use point and these stores are engineering store.
The basic objective is to develop an unambiguous classification and coding system that facilitates clean internal communication.
Ideally, this system should be designed so that all the departments in the organization can use it effectively. The purchasing and store department are critical area where the system must provide consisted and unambiguous identification and coding of stores. If stock item are give a scientific identification code, a complete catalogue can be assembled so that when a part is required. It is possible to determine very quickly if it is in stock.
The stock records themselves will them indicate the exact location. The British standard institution has done a great deal of work in established standard for material and products when a standard specification number is quoted both customer and supplier will know what is being returned even where it is not possible to develop a sophisticate coding system or arranged on logical lines will be of great benefit to a business on avoiding errors. The stores grouping of material has arranged these materials of logical lines for easy identification there by avoiding errors on location, ordering, issuing etc.
The items in the stock of the organization the code appears on all documents relating to the movement and use of materials are marked against appropriate bins and racks. A matter of facts, the store manager recognized the importance for the use of stores vocabulary or catalogue. Therefore, the success of any material control or management of stores highly depends on the system adopted for effective coding and classification of stores.
1.2 STATEMENT OF PROBLEM
The need of stores coding and classification in a manufacturing company is considered for easy identification. It is faced with some problem as regards to an manufacturing company.
The manufacturing company has chosen the nature of the item coding system which means every item with different code numbers. This leads to the increase on the volume of the stores vocabulary.
In a manufacturing company may be faced with the problems of inconsistence in classification of materials in the store section. For example, there is a section of spanning materials, which is normally classified under the spanning stores but recently it has been transferred to the administration stores. There is a section that takes adequate care of the organization stores vocabulary in a manufacturing company is also faced with the problem of appropriate classification of stores.
1.3 OBJECTIVE OF THE STUDY
The research work aims on the need of stores coding and classification in a manufacturing company. It is also the aim of the study to final out the procedure and method used on store coding and classification with a view of preferring solution to them for the benefit of the organization. The study will also enumerate the importance of and mostly to offer useful suggestion to management towards the application of the various method and techniques of coding and classification of stores.
1.4 RESEARCH QUESTION
The need for store coding and classification in a manufacturing company the questions as follow are
(1) What do you understand by the term stores coding
(2) Explain different methods of coding
(3) What are the advantages of stores coding
(4) Explain stores vocabulary and state the main purpose of stores vocabulary
1.5 SIGNIFICANCE OF THE STUDY
The researcher believed that the project would succeed in throwing more light on the subject matter, it will also so a long way in packing the conscience of all who have or assumed responsibility on store coding and classification of purchased materials in an organization this will lead to limiting the traveling times in locating the stores higher productivity adequate professionals recognition in the organization sector.
1.6 SCOPE OF THE STUDY
This work will focus attention on the need of coding classification identification of items in a manufacturing company
1.7 LIMITATION OF THE STUDY
The writer tends to cover the need of stores coding and classification in a manufacturing company.
(1) FINANCIAL CONSTRAINTS: Due to hard economic relatives enough finance that should allow most diversified research was not available.
(2) TIME CONSTRAINTS: The researcher combined his class work with research useful, this made the researcher to experience a very right schedule
(3) TRANSPORTATION: Transportation problem posed a big trait to the project. The research wasted much time for vehicle and may succeed only get his point of call very late. At time, interviews arranged may be missed and reported journeys become mandatory.
(4) The fact that is scarcity of stores management texts by Nigeria authors in the country.
1.8 DEFINITION OF TERM
STORES: Morrison (1982) defined store as a general tem used in describing goods which are held in storehouse, work house and stocky and. The bulk of these goods are usually intended for use in production or operating activities but the expression store also covers any space reserved and equipped for holding materials, which are awaiting dispatch to customer for further processing or final consumption.
STORE CODING: This is a document where information concerning the description code numbers of all items held in stock is kept for future use.
INVENTORY: Detailed list, example of household goods, furniture etc are carried to store.
STORE: Store or goods available for sale distribution or use, especially goods kept by a trader or storekeeper supplying or equipping or equipping stock to stores.
STORE VOCABULARY: Is bulk or file that contains the code number all the items held in stock and full description.
BLOCK CODING: This is the assignment of numbers in sequence by groups of various sizes under tens hundreds and thousands. A block coding can consist of any quantity of number necessary to cover the items on a particular classification.
Need Of Stores Coding And Classification In A Manufacturing Company:
Stores coding and classification play a crucial role in the efficient operation of a manufacturing company. They help streamline inventory management, improve overall organizational efficiency, and enhance decision-making processes. Here are several reasons why stores coding and classification are essential in a manufacturing company:
Inventory Management: Stores coding and classification provide a systematic way to categorize and identify inventory items. This makes it easier to track stock levels, reorder materials when necessary, and prevent overstocking or stockouts. Effective inventory management helps reduce carrying costs and ensures that essential materials are always available for production.
Efficient Retrieval: A well-structured coding and classification system allows employees to quickly locate and retrieve items from the storeroom or warehouse. This efficiency reduces downtime in production processes, as workers can access the materials they need without delay.
Accurate Recordkeeping: Proper coding and classification facilitate accurate recordkeeping of inventory transactions. This helps in tracking the movement of materials, monitoring usage, and ensuring that inventory levels match the records, reducing the chances of theft or mismanagement.
Cost Control: By categorizing materials based on their nature, usage, or value, stores coding and classification enable manufacturers to allocate resources efficiently. This allows for better cost control by identifying areas where costs can be reduced or optimized.
Supplier Relations: When materials are coded and classified, it becomes easier to assess the performance of different suppliers. This information can be used to negotiate better terms with suppliers, ensuring timely deliveries and competitive pricing.
Production Planning: Accurate classification of materials helps in production planning and scheduling. Manufacturers can anticipate the availability of necessary components and plan production accordingly to meet customer demands without delays.
Quality Control: Some industries require specific materials with certain quality standards. Coding and classification can help ensure that the right materials with the required specifications are used in the manufacturing process, enhancing product quality.
Data Analysis: With a structured coding system, companies can analyze historical data on material usage, demand patterns, and procurement trends. This data-driven approach can lead to more informed decision-making and the optimization of inventory levels.
Regulatory Compliance: Certain industries have strict regulatory requirements regarding the handling and storage of materials. Proper coding and classification can help ensure compliance with these regulations, reducing the risk of fines or legal issues.
Resource Optimization: Through effective coding and classification, manufacturers can identify obsolete or slow-moving inventory items. This allows for the optimization of resources by liquidating or disposing of such items and freeing up space and capital.
In summary, stores coding and classification are essential for maintaining order, efficiency, and cost-effectiveness in a manufacturing company’s operations. It enhances inventory management, supports production planning, and contributes to better decision-making, ultimately leading to improved overall performance and competitiveness in the market.