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
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.
Title page i
of content ix
CHAPTER ONE: BACKGROUND OF THE STUDY
of general problem 3
Significance of the study 4
Objective of the study 4
Historical background 5
Organizational structure 7
Definition of terms 9
CHAPTER TWO: LITERATURE REVIEW
Literature review 11
2.1 The responsibility of store function 17
2.2 Stock policy in organization 18
2.3 Store equipment employed in an operation 19
2.4 Description of store equipment 19
CHAPTER THREE: RESEARCH METHODOLOGY
Research method used 22
3.1 Instrument use for data collection 22
3.2 Research population and sample size 23
3.3 Sample procedure employed 23
3.4 Statistic method used in analysis of data 24
CHAPTER FOUR: PRESENTATION OF DATA AND ANALYSIS
of data and analysis of data 25
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 36
5.2 Conclusion 38
5.3 Recommendations 39
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
The magnitude of the expenditure
emphasis the importance of performing the store function in the meet effective
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
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
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.
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.
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
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.
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
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.
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.
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.
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.
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.
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.
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
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.
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
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
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.
RECORDS: 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.
ACCOUNTING: is the process of recording details of
stock movement and balance in value
TAKING: this is the process of physical verification of the
quantity balance and condition of the entire range of item held in store.
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
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.