Computer Based Stock Control (a Case Study of Dorema Textiles Industry Port Harcourt Rivers State)
ABSTRACT
This project work deals with the use of computer in stock control system. It is aimed at discussing how computer can be applied in stock control and its benefits derived from it in order to achieve the objectives mentioned above. The manual system in Dorema textile industry Port-Harcourt was critically examined and analyzed. Instruments used during the fact finding were interview and observation. The fact finding revealed that the manual system currently in use has many setbacks and faults which include inefficiency. Ineffectiveness, inaccuracy, unreliability as well as time wastage. Based on these setbacks and faults observed in the manual system of operation. It is extremely desirable to introduce a new system that will be more effective. The use of computerized stock control system will eliminate most problems encountered using manual method. The system programming implementation used in this project was Visual basic programming language.
CHAPTER ONE
INTRODUCTION
The control of stock and the management of stock have in common with the other major branches of commercial and industrial works became specialist activities
For effective performance, all organization either public or private must be able to manage the stock and to control the stock.
Stock is held for the purpose of providing a reservoir of materials to absorb the effect of variations is delivery and consumptions, and to maintain the ready availability of supplies within the organization concerned.
The stores should be considered as a temporary location form materials stock needed for operation purposes and should be planned, organized, operated and controlled in such a way that the period of residence of such stock items is as short as possible consistent with economic operation.
store has the responsibility for the receipt custody and distribution of very large sum of money in the form of stock and also determine the appropriate quantities and qualities of materials to be help in order that operations needs may be met in an economic manner as it is possible.
In mass production, appropriate quantities of the stock materials and component part have to be produce every day. Shortage will be avoided else, the production line will stop.
At the same time excess must not be delivered or will it will elegy up. Warehouses and perhaps also the production area. Apart from the fact that excess deliveries will tie up capital, for these reasons, a stock control must be in existence in all organization that want to be effective in it’s production line through out it’s life span.
A good stock control ensure adequate provision of raw material to the production department at minimum cost and eradicate production RUN-OUT ( that is stock available in store) and other predicaments that might increase cost of production or any disturbance in production lines.
DEFINITION OF STOCK CONTROL
There is no one definition of stock control but could be said to be storages and control of stock. A MORRISON defined Stock Control as “the means by which material of the correct quantity and quality is made available as and when required , with the regard to economy in storage and ordering cost, purchasing price and working capital”
It includes the following processes:-
- Assembling the items to be held in stock.
- Deciding the extent of stock holding of items individually and collectively.
- Rejecting the input of stock into the ware house
- Regulation the issues of stock from the store house.
Through these processes, it is possible to adjust continuously the quantity and value stock held to conform to the circumstance at all the times.
Another definitions is that Stock Control is the term used to a set of polices procedures by which an organization determines which items it holds in stock and how many of them has been to different people.
Merely looking at the wording of the title “STOCK CONTROL SYSTEM” gives itself a self except anatomy definition (i.e process of managing materials in store or system of controlling stock items). Stock control should be seen as a process that enable us to make the best use of resource available in the store for an adequate organization production processes.
In brief, stock control means having a schedule is commitment and a price of materials and making sure that the two matched or in a simpler form. It is the required quantity of materials at the required time with the minimum amount of capital filed up. The material purchased by a concern may ne classified either as stock items which are taken into the store held until required or as direct deliveries to the point of consumption. The control of these materials instore which are stock items is known as STOCK CONTROL. The function of stock control is to obtain the maximum stock consistent with the maintenance of sufficient stock to meet all requirements
NEED FOR STUDYING STOCK CONTROL SYSTEM
The research is needed so as to keep the company or any business organization within it’s maximum and minimum stock level. For its existence in business operation throughout its life time. Once management has determined the quantity of each material which stock, some form of control must be initiated to ensure that the stock do not depart seriously from these quantities that optimize the stock system. The minimum stock is the lowest level to which the inventory should not be allowed to fall below. It is the cushion stock which allows some kinds of safety margin. The minimum stock level is the quantity that must not be exceeded without specific authority from management. Between these two quantities level (or simple the order level).this is the level of which stock is normally allowed to fall before an order or further supplies is placed. It is the sum of minimum stock and the usage expected to occur in the re-order period i.e time between the sending an order and the receipt of the goods.
All the above mentioned stock level have to be studies to as to keep and monitor the level of stock in the store to avoid shortage of materials and excess stock in store for a company to optimum production.
There is need for research, so as to enable us to apply knowledge of operational research, example linear programming and other aspect of operational research to the limited resources that we have for production.
Also, Stock control need to be studied to be able to know how we apply computer techniques to the system so as to reduces manual work during stock control procedures (e.g Validation updating and stock taking procedures). Also to increase accuracy, the introduction of the use of computer system in stock control is highly valued and from the basis of this study.
SCOPE AND METHODOLOGY
This project research would only be based and to the store of a manufacturing company of Nigeria that is under consideration. The study will be base specifically on DOREMA TEXTILE INDUSTRY NIGERIA LIMITED, at Port-Harcourt makers of Textile, it’s products are silk, satin, shifon, lineo, akara etec. The research will be basically constructed on how stores and raw-material used for production are managed and controlled to enhance minimum cost storage and more effective/efficient supervision.
The study will be specifically carried out at the industry head office at Port-Harcourt. Due to the population of the industry over few states.
It is found appropriate and adequate to conduct this research virtually at the head office where they will have a good store location. Time will not also permit in talking about the other aspect of the industry’s population process and which will not be studied but can be mentioned briefly in this project.
To make every study concerning the research easier so as to able to achieve the aim and objectives of this study, a systematic procedure will be developed by the following activities.
Some literature review of past work and other author ideals to build up good ideal about the study will be done. The industry chosen as case study for data collection and facts about Stock Control System will be visited for personal interview. Analysis and implementation of the data collected will also be done. Evaluation and computer techniques will be used for the aspects of stock control system that can be computerized for reduced the amount of manual work errors, time wasted, excesses and shortage in stock. Also to optimize production and stock keeping with a minimum cost industry’s computer center at oyibo will be visited.
BRIEF HISTORY OF THE INDUSTRY
THE DOREMA TEXTILE INDUSTRY was founded by Dorathy Emana, in 1991 from Rivers State. Dorema textile industry is one of the leading textile industry is one of the leading textile industries in the country.
This industry procedures 20 (twenty) boundless of each type of materials per say and sell 75%of it every day. The success of Dorema industry has brought with it the development of sister industries like Zambani Industries, Ozizioma L.G.A. Aba, which supplies most of the raw-materials used in manufacturing textile in Dorema.
Dorema textile industry employee over 400 (Four Hundred) Nigerian in all field of operation.
This industry has training center for those who wants to learn how to produce materials, they produce the student in textile training center in the whole of Rivers State and Abia.
AIMS AND OBJECTIVES
The aims is therefore the science based art of controlling amount of stock held, in various forms within the business to meet production and market requirement, economically, therefore the aim of this study is to find out the problems uncounted in controlling in stocks in our industries when there are high stock level(i.e shortage)during off loading stock taking and other problems and how the problems can be solved.
Also has stock can be managed and controlled effectively and efficiently with the use of computer in accomplishing such tasks as updating, validation, increase output production, reducing manual works with a minimum cost.
There are some objectives are stock control are:
- Reduced inventory level.
- Reduced stock level of individuals parts.
- Improved service of production.
- Better control.
- Better records of stock movements.
- Improved profitability.
- More accurate economic order qualities.
- Absence of production hold ups.
- Reduction in lose due to deterioration.
- Shorter and more – reliable deliveries.
- Lower materials handling and operational cost.
The aim of this study is to apply computer technology in controlling the companies stock, this will eradicate population short falls and other predicaments, to enable the company contribute to the growth of the industry economy.
STATEMENT OF THE PROBLEM
There are many problems associated with manual system of stock control most especially as it affects Dorema Textile Industrial Nigeria Limited.
These problem ranges from:
- Delay in service of production
- Storage of information is very poor as information are being kept or stored in various records. These record are registers of various sizes so it will be a tedious job going through all the record while searching for one information.
- Receptiveness where there is need to repeat a particular process over and over again, it is needful to employ the service of a computer human being what the are, there must be atoms of monetary and this might lead to mistakes.
- Where the need is accuracy of information, it is necessary to employ the service of computer. As the main purpose to any industry is to make profit, in other to avoid the cost of revenue there is need for computer.
- If there is need for the consumption of data, the management of staff as well as the customers.
- Where the is need for voluminous calculation and calculation involving complex figure for instance interest calculation and commission the service or computer is need.
- The most necessary one is the reduction, the rate of fraud and cost involving salaries and wages of large number of work force. As computers do not cam over time but they work over time more than the every other staff. It is quite impossible for computers to enjoy pension and gratuity through st-y longer than most staff.
DEFINITION OF TERMS
- COMPUTER: This is an electronic device which accept data as an input uses predefined instructions, know as computer programs to execute the task in order to produce output.
- STOCK: This is a store of goods available for sales, distributed for use or a supply or amount of something available for use.
- PRODUCTION: This is action of manufacturing growing extracting something especially in larger quantities.
- ACCURACY: Computer do not make errors like humans because they have error detecting programs putting it in check. Errors during computation are due to errors while inputting data. That is why the term “GIGO”. An acronym for “Garbage – in- Garbage – out”. It used in computer studies to mean that what you put into the computer determines what is presented at the end of processing.
- SYSTEM: This is a collection of different component (objects) that operate anonymously together to achieve a common purpose.
- METHODOLOGY: Is a collection of procedures, techniques, tools and documentation aids which will help the system developer in their effort to implement a new information system.
- CONTROLLING: This refers to as the powers of making decisions about how an organization is run.
- RECORD: This is the account of something that has been kept for so long. So that it can be looked at and used in the future either by writing or by typing.
