Thursday, 23 June 2016

The Significance Of Stock Control In A Manufacturing Industry

This proposal is a research on the topic significance of stock control in a manufacturing company with references to international Tobacco Company, Ilorin, Kwara State. The basic aims of all manufacturing industries concern is together towards profit maximization as it is therefore vital for any profit oriented enterprises to have a well or standard stock control. Stock control represent the clerical control of movement of material in and out of the store and regards to the economy storage as well as ordering costs, purchase price and the level of the industry working capital.

Stock control maintains adequate availability of correct material with minimum investment in inventory and efficient used of plant, building and equipment.

Title Page
Table of Contents

1.1  Introduction
1.2  Statement of the general problems
1.3  Objectives of the study
1.4  The rational of the study
1.5 Scope of the study
1.6 Limitaion of the study
1.7  Historical Background of the case study
1.8  Th organizational chart of case study
1.9  Definition of terms

2.1 Literature Review
2.2Why hold stock
2.3Approaches of inventory control
2.4Comprison of stick replenishment and material requirenebt
2.4Inventory Planning and Control
2.5Inventory Planning and control

3.1 Research methodology
3.2 Instruments used in data collection
3.3 Research population  and sample size
3.4 Sampling procedure employed
3.5 Statistical techniques used in presentation and analysis of data

4.1     Presentation and Analysis of data
4.2     Receipt and inspection of incoming goods
4.3     Stock control system
4.4     Stock taking
4.5     Safety location system
4.6     Safety ans security of store
4.7     Issuing of  goods to customers

5.1Summary of findings
5.2 Conclusion
5.3 Recommendation

It also ensure that the introduction of the chosen were as follows;

CHAPTER ONE: is greatly on the introduction of the chosen topic, historical background of the company, the statement of general problems, the objectives of the study rationale, the scope and limitation of the study and definition of terms. The role of stock control in every services as manufacturing industry.

CHAPTER TWO: Of this project is mean to shed light and evaluate the contribution of various authors of different text consulted on the topic.

CHAPTER THREE: Its talk about research methodology that is, the research method used in collecting data, research population and sample size, having source of data collection.

CHAPTER FOUR: Is mainly on the presentations of data and analysis of data collection.

CHAPTER FIVE: it includes the summary of findings, conclusion and recommendation and also references.

Stock control: plays a very vital role in every services or manufacturing industry. The word “inventory” is taken to mean “turnover” and whatever is turned over is the item of the industry.
The management and administration of those items in the course of any company’s operation is known as stock control. Items of various concerns are hold for production purposes.
They held materials and finished products are in the store. These have to be controlled within the industry’s economic limits with the regards to the storage cost and availability.
Stock are to regulated so as to the used at specified volume or level. In order words, the (stock) should not be under used.
That stock should be economized where it is not necessary.
Where it is unnecessarily economized, it should cause production stoppage and where the two opposing forces are not compromised; it may spell doom for the organization and reduce profitability of the industry in question.
Inadequate maintenance of stock balance may pose to be a dog in the wheel of the company’s progress in the course of rendering services to the customers. This could be that materials produced do not confirm with required quality and be that materials produced do not confirm with required quality and quantity late delivery with this, the production programme will be negatively affected especially if the company such as the international tobacco company engages in mass production.
          Stock control involves the following processes;
1.     Assessing the items to be held in the store
2.     Regulating the issue of stock from the store and
3.     Dividing the stock holding cost of the items.
Through these processes it is possible to adjust continuously to the dynamic nature of the quality and quantity of the materials required so as to maintain a balance stock control policy at all time.

A company or an organization may find it very difficult to achieve is goals if it cannot run a smooth stock holding at a given periods, as to be able to meet the demands of its numerous customers.
To an organization, it will be also reduce the risks of losing its customer stocks, enough stock maintained to meet the request of these customers. The following are some of the problems associated with the control stock international tobacco company Ilorin.
(a)  Storage problem
(b) Inadequate storage facilities: due to lack of adequate storage facilities like space, some items of high value are poorly stored.
(c)  Lack of proper location system: the store keeper finds it very hard to tolerate some items which demands by the users due to poor location system. A lot of time is being listed before locating materials and this, at times delay issuing to the buyers,
(d) Lack of proper security: the company lack proper security in the store and as a result, a lot of pilferage, theft and frauds are recorded.

The ultimate aim of this research work is to examine the extent to which stock control can be useful in any company. It is paramount importance to the state categorically that the research study cuts across all categories of manufacturing industries irrespective of its nature small or big with particular reference to international tobacco company, Ilorin.

The research study is also aimed at making all manufacturing industries to realize how much is being wasted daily as a result of ineffective stock control. In effect, this research has a direct to the even all profit of the industry.
          The study is also in partial fulfillment of the requirements for the award of national diploma (ND) in Business Administration of the department of Business Administration in Kwara state polytechnic, Ilorin.

The project research is one of the prerequisites for the award of national diploma certificate in institution of higher learning Nigeria for this reason, the researcher is under the obligation to carry out an investigative study on the subject matter. Beside this reason, the following purposes are also factors that cause the research study;
          To identify problems and prospects inherent in stock control and highlight its economic contributions to the development of the country.
          To advice the management of international tobacco company, branch on the better way to control their stock to ensure minimum investment on inventory, reduce storage and to ensure high efficiency in the stores operation.
To give suggestions on stores security; in this aspect, advice will be given to the company on the strategic areas where to locate some security lights to maintain security guards at the store entrances. Also the store have should be locked up at the end of official working hours.
          The company will also be informed on how to carry out the layout of stores especially on the type of effective location system to operate within the company.
Another important area where the researchers want the company to gain from this research is to offer suggestions to the organization on the provision of the necessary inspection facilities in the factory so that adequate check can be made for quality in every aspect.

This study is restricted to Ilorin branch of international tobacco company. The primary data gathered were mainly from the Ilorin area of the company. That is the researcher works in all the manufacturing industries in Nigeria, while the sample size is international tobacco company Ilorin branch. The reason for this is that, one has to keep within the limit time and resources available.

The success of the conduct of this research work has not any means been an easy task, the researchers were faced with some problems which nearly hindered the success of the work.
          The first problem faced by the researcher is how to get the approval of the management of the selected organization. The reason behind this is that the information needed from the organization are so vital and sensitive to the overall success of the research work in which the management was relevant to reveal to the researcher.

But after some much pressure, the researcher were able to get the approval of the management, then came to the issue of when the manager himself would be available to attend to the researcher, this wasted a lot of time efforts and money before this needed data were plotted. The last but not least, is the issue of financial constraints encountered by the researchers on the course of the study, this cannot be under mind because of the financial commitment and predicament associated with the buying of materials, typing and binding the project work all made the whole more complicated.


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