ABSTRACT
This study investigates the significance of stock taking and stock checking within a procedural context, using Santana Industry Sharada Kano as a case study. The research adopts a quantitative approach, employing a descriptive survey research design. Primary data was collected from a sample of 50 respondents, selected using a simple random sampling technique, representing the larger population of approximately 7,500 employees at Santana Food and Processing Company Ltd.
The data collected were analyzed and presented using tables and frequency distribution. The findings reveal the critical importance of stock taking in the operations of a manufacturing organization. The study offers a comprehensive understanding of the various activities involved in the stock taking process.
As a result of this research, it is concluded that stock taking plays a pivotal role in the efficient functioning of production companies. It addresses the knowledge gap surrounding stock taking procedures and activities. The study underscores the need for manufacturing organizations to invest in effective stock taking practices for optimal inventory management.
In light of the findings, the study recommends that Santana Industry Sharada Kano should consider increasing staffing levels in their stores and other relevant departments. Additionally, it is advised that the materials controller and associated personnel undergo further training to enhance their knowledge in material management. These actions will enable the company to remain competitive, improve operational efficiency, and better manage their inventory, ultimately contributing to long-term success.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.0 Background to the Study
1.1 Statement of the Problems
1.2 Aim and Objective of the Study
1.3 Hypothesis of the Study
1.4 Significant of the Study
1.5 Scope and Limitation of the Study
1.6 Definition of the Terms
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
2.1 Historical Background of the Study
2.2 Literature Review
2.2.1 Store record
2.2.2 Physical security
2.2.3 Responsibility for stock
2.2.4 Purpose of stock taking
2.2.4.1 Physical stock taking
2.2.5 Periodic stock taking
2.2.5.1 Stock sheet
2.2.6 Continuous stock taking
2.2.7 Stock taking procedure
2.2.7.1 Blind stock taking
2.2.7.2 Stock taking by store keeper
2.2.7.3 Stock certificate
2.2.8 Treatment of discrepancies
2.2.8.1 Surpluses and deficiencies
2.2.8.2 Investigation of discrepancies
2.2.8.3 Adjustment
2.2.9 Stock checking
2.2.9.1 Stock receipts
2.2.9.2 Check issue
2.2.9.3 Spot checking
CHAPTER THREE
METHODOLOGY
3.0 Introduction
3.1 Research Design
3.2 Instrument for Data Collection
3.3 Sources of Data Collection
3.4 Method of Data Collection
3.5 Population of the Study
3.6 Sampling Technique
3.7 Sample Size
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Personal Data of the Respondents
4.3 Test of Hypothesis
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendix: Questionnaire
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
In the manufacturing industry various types of commodity are produce and different materials goes into the manufacturing of these goods. These materials can be divided into raw-materials, parts, work in progress, semi-finished goods. Otherwise called inventory.
In every organization stock represented a significant part of the current assets of most companies, stock could therefore be defined as any raw-materials sub-assemblies sub-component that are brought from outside the factory produced within the some organization for the purpose of production or sale.
It was said by MBA foreign manufacturing company that raw-materials represent 67% of their manufacturing cost, and finishing materials and suppliers of represent a further 10% the above statement confirms the fact that on the average 50.65% of the total sale income of a business is spent on the purchase of raw-materials. In view of this it is very important to have a method of producing a stock.
Stock should therefore be protected, counted and checked in every similar way with cash at bank or hand. Stock taking is defined as a completed process of verifying the quantity balance of the entire range of items held in stock.
The reason for embarking on stock taking exercise are:-
1) To verify the accuracy of stock record.
2) To support the value of stock shown in the balance sheet by physical verification.
3) To disclose the possibility of fraud, theft or losses.
4) To reveal any weakness in the system for the custody and control of stock.
Types of stock taking
1) Periodic stock taking
2) Continuous stock taking
1.1 STATEMENT OF THE PROBLEMS
The study is an attempt at improviding an insight into the relevance of stock taking and stock checking and stock checking in a process industry.
• Poor capital:- The poor layout within the store create difficult in locating and identifying materials in the stores.
• Lack of adequate storage facilities:- Inadequate of storage facility is a problem confronting stock taking and stock checking because a checker find it difficult to have a proper count of the physical products.
• Illiteracy:- The store keeper may not be not be very good in store keeping and it may affect the actual stock record in the store.
• Improper record keeping:- Record of last stock level help in decision making, but it will be difficult in quick decision because the bin card lost due to improper record keeping.
• Improper labeling of the store:- Most selection of the store are labeled wrongly thereby causing confusion to the stock checker and stock taking officer in an organization.
1.2 AIM AND OBJECTIVE OF THE STUDY
The main aim of this study is to know the important of stock taking and stock checking in a process company. The study will also find out the benefit of stock taking and stock checking, it will also find the possible solution associated stock taking and stock checking the objective are as follow:-
1) The study attempt to know the important of stock taking and stock checking.
2) The study want to know the general difficulty that will arise as a result of non-stock taking and stock checking.
3) This study also aimed at evaluating whether stock checking and stock taking in an organization is relevant.
4) It also attempt to find out how it affect the total performance of the company.
5) It is to find out the problem associated with stock taking and stock checking.
1.3 HYPOTHESIS OF THE STUDY
Ho: Stock taking does not help in discovering discrepancies, misplacement, theft and fraud in the store house.
Hi: Stock taking and stock checking help in discovering discrepancies, misplacement, theft and fraud, in the store house.
Ho: State that stock taking is not relevant instrument and does not contribute to the profitability and accountability of an organization.
HI: State that stock taking and stock checking is a relevant instrument and contribute to the profitability and accountability of an organization.
1.4 SIGNIFICANT OF THE STUDY
The general important of this research is a follows:-
i) To know the importance of stock taking and stock checking in an organization.
ii) To help in discovering the discrepancies, misplacement theft, fraud and embezzlement in the store house.
iii) To serves as a reference point for future researcher in smiles environment.
iv) To serves as a added block of academic work for further knowledge.
v) To suggest solution to problems confronting implementation of policies related to stock taking and stock checking.
vi) To serves as a pre-requisite for a partial fulfillment of requirement for the award of Advance Diploma in Business Management.
vii) To help the management in controlling the inventory and proper decision making.
1.5 SCOPE AND LIMITATION OF THE STUDY
The research work is to cover abroad area in the store operation with regard to the control aspect of the stock in the organization, it entails the following specific areas which the researcher would like to emphasized upon in the course of conducting research examples.
a. Purpose of stock taking and stock checking.
b. Method of stock taking
c. Treatment of discrepancies.
d. Absolute
e. Obsolescence
f. Redundant and purples stocks.
The project will also review the various document that are being use in the exercise and paper analysis will be given on each description, and use to which the various document are put in the operation.
There are many industries in Nigeria which represent the population size of this research. However, the scope of this work is limited only on Santana food Ltd, Kano due to some difficulties encountered by the researcher.
1.6 DEFINITION OF THE TERMS
1. Obsolete:- An items is said to be obsolete when it is no longer in use by the business concerned due to change in operational practice, production method or technology.
2. Obsolescence:- An items is said to be obsolescence when it is going out of use but is not get completely unusable.
3. Redundant:- When the quality of an item in store is more than reasonably necessary to provide an adequate service to the production or operational activity the excess over normal holding.
4. Surplus stock:- An item is regarded to surplus stock when the physical quality is more than the quality record in the store.
5. Discrepancies:- The different between the balance of item in the stock store and balance in the store ledger book, the different is called discrepancies.
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