CHAPTER ONE
INTRODUCTION
Computers have assumed a common place today, in all areas of human endeavor, information is critical it is much more so for the effective and efficient management of any organization. The ultimate goal of business and management beyond productivity and profitability is to ensure perpetuity.
“To manage a business well is to manage its future and to mange his future is to mange information” a Marion Harper jnr-, every organization has time worlds. The Internal and external. Corporate survivability depends on how effectively organization identifies and harness information about their internal dynamics and events [in the external environment viz a viz their responses to them. Opara (2006:28). The purchasing as well as inventory upkeep in Nigeria has tended to lag behind in applying computer system which is a formal system if gathering: integrating, comparing, analysis, dispersing information internal and external to the enterprise in a timely manner; however many more manual system have been converted to the computer during the present decade. Any procurement organizations are now using computer systems. Computerizations of the purchasing function is very important because the volume of work involves is large. Computerization of the purchasing function means converting the manual system into pa computer system for efficient operation Uzor (2004:416) computerization of the purchasing function takes place when all the manual system of performing activities in the purchasing department are converted to automated system. When purchasing is computerized, all the records that are maintained in the purchasing department in different files will now be stored in disc or tape file that are used by the computers central processing units (CPU)
1.1 BACKGROUND OF STUDY
The organization used a case study of this research work is a public corporation which is established by decree to provide essential services to the citizen at a [reduced price the establishment was established by the federal government and it is named as a government enterprise fro the benefits of the people. The two ministries as would be seen in this project work are the ministry of work and ministry of agriculture in Owerri Imo state.
After the creation of Imo state in 1976, the need for an independent ministries for the state. The first governor of the state, commander Godwin Ndubusi Kanu, gave his blessing to the print. These allowed the ministry to carry out business associated with layout of construction and design of architectural structures while the ministry of agriculture undertakes research and developmental job of agriculture extensions. The permanent site of the ministries is situated at the Imo state secretaries the expansion and improvement of engineering complex and wield service of these corporations conscious and considerable energy was also put into the areas of staff development. To meet with the challenges of these ministries, the management intensified recruitment exercise and knowing of young school graduates. On the job training for new entrants was encouraged. While some engineering staff were sent oversea on staff training. Even till today staff training on the bases of agricultural extension is being organized by the ministry of agriculture.
The procurement departments in these minitries are responsible for purchasing strategies [that will help the ministries to get the best available option in the market. They are involved in the purchasing and supplies of the ministries need other function included.
– developing and analysis sources
– Managing local and global supplies relationship.
– Handle bids and negotiations
– Analyzing contracts
While the stores function has the following duty to perform.
1. materials handling function
2. receipt and inspection of stock
3. holding controlling and issuing of stocks stores security
4. store security
5. controlling of quantity of materials
6. chemical administration at stores operation
7. stock coding and identification of materials
1.2 STATEMENT OF PROBLEMS
Through seen as the “last goldmine” for business management; both profit and non profit making organizations, purchasing in an integral and essential points of any corporation and all function of business must wish into a united whole of management to fulfill its basic social responsibility of providing government interests in the specialized. Purchasing is the last of the specialized business function to be centralized and given full responsibility and the authority fro making major contribution to profit in the ministries of work and that of agriculture. In probing into the need for application of computers in public inventory management in the Imo state ministry of work and that of agriculture; the researcher observed that a thorough look at the present staffing of the purchasing department shows that a huge sum of money is being lost every year due to lack of efficient and technical shares personal. The ministries is yet to be convinced of the need for the use of computer in shares management function, thus they assign their responsibility to unqualified or technically unskilled personnel (uninformed generals) who cannot cope with the present complexity of modern business, thereby running down the organization. These ministries lack the use of computer for easy and accurate computation of mathematical data and for storing and retrieving information whenever required fro stores operation, these makes work very show and sometimes confusing as too many proper work is used.
In these ministries; one of the teaching problems is maintenance culture of the available computer system, unlike every public property this is a “public goal owed by the public but owned by nobody” the computer are left to own down without maintenance.
Another problem is that of manpower lack of specialist in field of purchasing has given rise to incomplete and inefficiency in the act and mode of stores operation by the stores personnel of designated items. It is necessary to rise up specialist with good judgment, well beloved and well fortified with knowledge of computer application. It is this problem that made the research to take up the study with a view to determine what can be done to arrest and improve the situation and encourage the use of computerized system in public inventory management
1.3 PURPOSE OF STUDY
Despite the consciousness of purchasing as an area fro profit maximization. It is still to be recorded full recognition in the industries circle. It has over the years suffered the industrial cankerworm called “buying synod” which has continued to eat deep into the ethical fabric of the profession. The syndrome is a situation where those in authority consistently continue to authorize the purchase of material and services without reference to those in the profession the purpose of this research study is to have am insight into the way public corporations in the ministry encourage their personnel in the use of computer in the purchasing functions in addition the research is to investigate the following
1. examine the factors that frustrate efficiency in the use of computer system
2. examine the factors hindering the adoption of computer system in public inventory
3. examine the caliber of staff involve in the stores
4. examine the opportunities that exist in the advancement of the use of computer
5. finding out the status given the purchasing department by looking into the amount and quantity of purchases, carried out within a specified period and by out how purchasing data is average in system and the various methods [of transferring information within the ministries. The research feeds that if the right people employed and there is a good use of computer system, it will help to avoid misrepresentation of the profession
1.4 RESEARCH QUESTION
One important thing a research of this nature need to achieve is the empirically prove into the subject matter of the study. This is in other to give direction to the readers, other researchers and planners so as to elcit what the research is all about. It therefore become necessary to formulate research question on which the conclusion would be based and are as follows
1. To what extent does management allow purchasing policies and procedures prevail especially in the use of computerized system of procurement and inventory recording.
2. does your organization achieve any advantage as a result of the use of computerized purchasing.
3. is it possible that the employment of computer literate purchasing personnel would enable the ministry to attain its overall corporate of meeting up with purchasing function
4. does your organization lose its reputation when it is not able to honor its short terms obligation due to inadequate computerized system of purchasing
1.5 HYPOTHESIS FORMULATION
The null and working hypothesis has been set the research to verity the accuracy of the data collected during the course of the research work. In carrying out this, the research will use both null (ho) and alternative (hi) hypothesis to find out whether the application of computerized system of purchasing function in public inventory has any effect on the ministry of works and that of agriculture in imo state. An hypothesis may therefore be defined as a declaration statement of relationship between two or more variables used for better understanding of the problem of study. In recognition of the objectives of this project if is hypothesis thus:
Hi: That computerized purchasing function in public inventory management has an immerse contribution to the ministry of work and ministry of agriculture.
Ho: That computerized purchasing function in public inventory management has no contribution to the ministries of work and agriculture.
1.6 SIGNIFICANCE OF THE STUDY
Other the purchasing department depends on information to carry out its function as such data which denotes the system of making available items of source data, converting them into information and posting the information to the appropriate quarters.
Information is needed in every department of the ministries this is due to
1. the complexity of the function
2. volume of data generated is different to process data manually
3. the time required to process
4. the need fro accurate and department information
5. occurrence of common information
1.7 SCOPE OF THE STUDY
The scope of this study was limited to the activities of public inventory of the ministry of work and agriculture. It focus is on the computerized purchasing function which revolves on the availability of goods as and when needed for production and timely requirement of the finished goods for sales further more, the study looks into the ways and means of improving profit capacity through computerized system of inventory management. The researcher will be using the staff of the company as respondents to find out [the level of computer dependency on inventory management of the ministries on as to defect the deficiency and make connection where necessary.
1.8 LIMITATION OF THE STUDY
In carrying out this research, the zeal and enthusiasm on the part of the researcher, occasionally was confronted by the following
1. Finance: the present married economic the country greatly affected the financial resources of the researcher.
2. Time: the institute did not allow for any particular period or an uninterrupted length of time to carryout the research. The period was allocated to exam period, thus time became an uncontrollable factor.
3. Non response: some members of the population were unwilling to respond to the questionnaire because of either the fear that they law. This resulted in more personal contact to pursue and collect data personally. And as a result more personal interview was needed.
4. Literature: at his time,, the researcher discounted that no similar study has been carried in the various ministries. Their purchasing department, libraries for post research work could not yield any fruitful result towards obtaining in directly related literatures.
1.9 OPERATIONAL DEFINITION OF TERMS.
1. Computer: an electric device us to store, process and communicate information automatically.
2. Computerized system: an act of using computer to store data which is manually done.
3. Data: information at its raw stage
4. Information: this is data that have been shaped and formed into a meaning and useful form.
5. Interview: a fact finding method where there is a formal meeting of individual
6. Stores: this is a general terms describing gives which are held in storehouse and stockyard. It also means a building to accommodate material or other component.
7. Inventory: as in stores.
8. Row materials: materials at its raw natural state which undergo course of being incorporated into finished product.
9. Procurement: include the whole process of obtaining all classes of resources
10. Purchase: the act of buying required material equipment and service
11. Stock: simply mean raw material, component items, WIP etc.
12. Development: if generally involves the transition from one subsistence mode to another
13. Training: the process of transmitting and receiving information relating to problem solving instructing etc.
14. Manpower: labour force required in a particular job department
15. Literate: as used in this study mean one who has a particular knowledge of something e.g computer literate.
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