CHAPTER ONE
1.1 INTRODUCTION
The store function is
primarily concerned with the holding of stock however this did not say that
function of stores is refined to just holding controlling and issuing of stock
but it embraces wide range of acting store control of all storehouses stock and
outside storage units, materials handling function, quality control activities,
training of stores staff clerical administration of store operation and a host
of others.
Moreover, store function is a concept
that involves a progressing of delivery quality control storage progressing of
delivery quality control storage preservation and finally distribution and
issue.
However, it stores is a major cost
center because it considerable saving can be effected through an effective and
materials and supplied from this life blood of any efficient control of stores
and this helping organization to the organization profitability.
1.2 HISTORICAL BACKGROUND OF DOYIN INVESTMENT
NIGERIA LIMITED
Doyin investment limited is a member
of Doyin group of companies and the first indigenous company licensed to
manufacture soap and detergent in Nigeria. It was in cooperated on 8th
October, 1984 with head offices at Lagos and factory situated at Dr. Amuda Aluko
way, Ilorin Kwara state.
The company is operated, managed and
directed by full blooded Nigerians owned by courageous and experienced
industrialist, prince (DR) Samuel Adedoyin who had for many years been
championing indigenous technology background integration and the use of local
raw materials in Nigeria.
Doyin investment limited industry was
established in response to the call of the Kwara state government in
industrializing Kwara state government on indigenous of the state to join hands
with the state government in industrializing Kwara state. Prince (DR) Samuel Adedoyin
is the chairman and managing director the affair the companies are managed
under as the leadership of Mrs. Omolola Olabayo who is the executive director
members of engineers. T.N Njoku as the general manager. The company operates
the following departments. Personnel and administration, technical, production
account, sales marketing audit purchasing, laboratory, quality control raw
materials silicate, sulphurization and departments.
The company has greatly contributed to
the growth of the Nigeria economy through industrialization. Despite the
economy downturn, the company has intermorphosed from one detergent factory and
pioneer staff strength of 40 in 1985 to
the present agglomerate of seven factories with a staff strength of over 1000
in the company.
ORGANIZATION STRUCTURE OF
DOYIN INVESTMENT NIGERIA LIMITED
An organizational
structure is the grouping of the company or institution activities under
different person responsible for carrying out the function of his/her unit with
common ensurate authority to dispose such function, such person is for all
goods and bad in the units under him/her
Doyin investment Nigeria limited group
task into various departments that will ease the performance of those task
functions, these departments are;
a. public
affair department
b. research
and statistic
c. finance
and supply department
d. personnel
management department
e. logistic
department
f. legal
services department
The public affair department is responsible for
information management and public relation activities. The research and
statistic is responsible for undertaking research and provide data policy for
undertaking research and provide data policy information. Finance is
responsible for preparing, keeping and implementation all accounting and
financial transaction of the commission supply is responsible for purchasing
storing and distribution of materials, personnel is responsible for general
administration for movement of materials.
Legal department is responsible for providing legal
services to the company.
There are other special units which are;
i. the
advertising
ii. the
field services
These unite are also impendent. The auditing
responsible for keeping Doyin investment Nigeria limited financial transaction
field services units handle special assignment delimitation of consistencies.
1.3 STATEMENT OF GENERAL PROBLEMS
A lot of problems were observed in the
cause of carrying out this research work.
Among these problem is inability of Doyin
investment Nigeria limited to make head of stores, a member of the management
board, other challenges include;
a. Shortage of qualified
stores personnel:
it’s always assumed that store operation is nothing more than receiving,
storing and issuing of materials but not realizing that it also performed other
functions, therefore, stores function requires skilled personnel to handle it
effectively while unskilled labour should not be given vital while unskilled
labour should not be given vital work to do.
b. Poor storage facilities:
inadequate storage facilities lead to items getting’s deteriorated and some
items which requires special storage.
c. Poor location system;there
is no specific location for each materials in stock and as such a lot of times
are wasted before material can be located. This situation leads to frequent
delay and contact their option or operation before the item needed could be
located in the store.
d. Poor coding system: materials
kept in the store were properly coded which make it very difficult to identify
the material easily
1.4 OBJECTIVES OF THE STUDY
The primary objectives of
this research work is to fulfill one of the pre-requisite for the award of
national diploma certificate (ND) in purchasing and supply department,
institute of finance and management studies Kwara state polytechnic, Ilorin.
Another objective is to identify the
various contributions of store functions to the achievement of the objectives of
Doyin investments limited.
Furthermore, the research work will
also enable the researcher to have a comprehensive knowledge of the store
management concept, which will no doubt help him professionally.
1.5 SIGNIFICANCE OF THE STUDY
It will enlighten the
general public on the impact of stores functions in achieving organizational
objectives. The project is also important in that researcher’s knowledge will
be highly broadened and improved most especially during and after the research
1.6 SCOPE OF THE STUDY
This refers to the areas
to be covered by the research project, more importantly the project will focus
on the importance of store as viewed from different perspective reasons for
holding stock methods of controlling stock, the stock levels taking and stock
checking and other important of store function.
The scope of the research work is confined to Doyin investment
Nigeria limited owning to a certain limitation which will be dealt with in next
portion of chapter one.
1.7 LIMITATION OF THE STUDY
The
researcher in the course of researcher encountered a lot profits, problem
inadequate fund, there was an inadequate finance for typing binding printing of
the findings this problems to this,
1.8 DEFINITION OF TERMS
1. Standardization
is the process of removing of unnecessary variety from process and material
with the aims of reducing cost without detriment to the needs of the user.
2. Stock:
these are items held within the store
3. Sub-store:
is the given terms used to describe any stock holding point where the materials
held are supplied entirely from other major store house or central store house
4. Stock
discrepancies: is when the amount of stock found by physical examination fail
to agree with the balance of the stock records.
5. Stock
surplus: is when the stock fund by physical examination exceeds the record
figure records.
6. Provisioning:
is the process of determining in advance material requirement taking into
consideration the existing stocks in hand at anytime call will be in accordance
with the stock control policy.
7. Stock
records: these are the documents which are record from day-to-day, full
particulars of individuals receipts, issue and balance of stock
8. Lead
time: is the period between recognition of a needs and delivery of the correct
goods sufficient at the proper time of the store
9. Store
rotation: a procedure which attempt to ensure that supplies do not remain in
stock longer than their selves’ life.
10. Stock
level: this is a basic method of controlling the quantity of the stock is by
fixing for each stock and used as a means of indicating when some actions is
necessary these are many kind of stock level such s minimum, maximum level and
re-order level