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NEED OF STORES CODING AND CLASSIFICATION IN A MANUFACTURING COMPANY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

In a manufacturing company, whether in the public or private sector have storehouse, warehouse and stock yard where different types of stores or material are received stored and issued to different users.  It is important for all store personnel to have full knowledge and characteristics of all the stores they have in their storehouse, this will enable them identify the stores, correctly record receipts and issues. It will also help them to look after the materials properly. The store manager in these efforts to meet up his first responsibility of effective identification and coding of stores has grouped all the materials required, purchased and produced. These are located in different storehouse at different parts of the organization most of which were sited closer to the use point and these stores are engineering store.  The basic objective is to develop an unambiguous classification and coding system that facilitates clean internal communication. Ideally, this system should be designed so that all the departments in the organization can use it effectively. The purchasing and store department are critical area where the system must provide consisted and unambiguous identification and coding of stores. If stock item are give a scientific identification code, a complete catalogue can be assembled so that when a part is required. It is possible to determine very quickly if it is in stock. 

The stock records themselves will them indicate the exact location. The British standard institution has done a great deal of work in established standard for material and products when a standard specification number is quoted both customer and supplier will know what is being returned even where it is not possible to develop a sophisticate coding system or arranged on logical lines will be of great benefit to a business on avoiding errors. The stores grouping of material has arranged these materials of logical lines for easy identification there by avoiding errors on location, ordering, issuing etc. The items in the stock of the organization the code appears on all documents relating to the movement and use of materials are marked against appropriate bins and racks. A matter of facts, the store manager recognized the importance for the use of stores vocabulary or catalogue. Therefore, the success of any material control or management of stores highly depends on the system adopted for effective coding and classification of stores.

1.2 STATEMENT OF PROBLEM

The need of stores coding and classification in a manufacturing company is considered for easy identification. It is faced with some problem as regards to an manufacturing company. The manufacturing company has chosen the nature of the item coding system which means every item with different code numbers. This leads to the increase on the volume of the stores vocabulary. In a manufacturing company may be faced with the problems of inconsistence in classification of materials in the store section. For example, there is a section of spanning materials, which is normally classified under the spanning stores but recently it has been transferred to the administration stores. There is a section that takes adequate care of the organization stores vocabulary in a manufacturing company is also faced with the problem of appropriate classification of stores.

1.3 OBJECTIVE OF THE STUDY

The research work aims on the need of stores coding and classification in a manufacturing company. It is also the aim of the study to final out the procedure and method used on store coding and classification with a view of preferring solution to them for the benefit of the organization. The study will also enumerate the importance of and mostly to offer useful suggestion to management towards the application of the various method and techniques of coding and classification of stores.

1.4 RESEARCH QUESTION

The need for store coding and classification in a manufacturing company the questions as follow are 

(1) What do you understand by the term stores coding 

(2) Explain different methods of coding 

(3) What are the advantages of stores coding 

(4) Explain stores vocabulary and state the main purpose of stores vocabulary

1.5 SIGNIFICANCE OF THE STUDY

The researcher believed that the project would succeed in throwing more light on the subject matter, it will also so a long way in packing the conscience of all who have or assumed responsibility on store coding and classification of purchased materials in an organization this will lead to limiting the traveling times in locating the stores higher productivity adequate professionals recognition in the organization sector.

1.6 SCOPE OF THE STUDY

This work will focus attention on the need of coding classification identification of items in a manufacturing company

1.7 LIMITATION OF THE STUDY

The writer tends to cover the need of stores coding and classification in a manufacturing company.

(1) FINANCIAL CONSTRAINTS: Due to hard economic relatives enough finance that should allow most diversified research was not available. 

(2) TIME CONSTRAINTS: The researcher combined his class work with research useful, this made the researcher to experience a very right schedule 

(3) TRANSPORTATION: Transportation problem posed a big trait to the project. The research wasted much time for vehicle and may succeed only get his point of call very late. At time, interviews arranged may be missed and reported journeys become mandatory.

(4) The fact that is scarcity of stores management texts by Nigeria authors in the country.

1.8 DEFINITION OF TERM

STORES: Morrison (1982) defined store as a general tem used in describing goods which are held in storehouse, work house and stocky and. The bulk of these goods are usually intended for use in production or operating activities but the expression store also covers any space reserved and equipped for holding materials, which are awaiting dispatch to customer for further processing or final consumption.

STORE CODING: This is a document where information concerning the description code numbers of all items held in stock is kept for future use. 

INVENTORY: Detailed list, example of household goods, furniture etc are carried to store. 

STORE: Store or goods available for sale distribution or use, especially goods kept by a trader or storekeeper supplying or equipping or equipping stock to stores.

STORE VOCABULARY: Is bulk or file that contains the code number all the items held in stock and full description.

BLOCK CODING: This is the assignment of numbers in sequence by groups of various sizes under tens hundreds and thousands. A block coding can consist of any quantity of number necessary to cover the items on a particular classification.

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