A COMPUTER BASED QUALITY CONTROL SYSTEM IN STOCK PRODUCT

1.0 Introduction

A quality control system in production management is a qualitative technique with strong financial implications having direct relationships with production, marketing, purchasing and financial politics.

Also, it is a system used in the management of stocks held by any organisation as it concern addition to, storage and removals from the trading stock with appropriates record keeping.

ANAMMCO LTD, Enugu as an assembly plant maintains a large amount of stock vehicles spare parts which are imported from any of her vendors, Vce:- MBAG. Mercedes Benz AG Germany, MBBRAS. Mercedes − Benz Brazil or MBE − Mercedes. Benz Espama for the production line or sales to distributors or authorized agents dealers.

The stock are held for various among which are:-

1. To ensure unit sufficient goods are available to meet anticipated demand.
2. To provide a better between production processes.
3. This is, applicable to work in project stocks which effectively decouple operation.
4. To meet possible shortage in future
5. To absorb seasonal fluctuation in usage or demand.
6. To enable production process to flow smoothly and efficiently.
7. As a necessary part of the production process.

All these are logical yet, stocks accumulate due to the Less promise worthy reasons which are:-

1. Obsolete items are retained in stock
2. Poor or non-existing inventory control resulting in over targe orders, replacement orders being out of phase with production etc.
3. Inadequate or non-existing stock records
4. Marketing departments.

Whether as a deliberate policy or not, sticks, represents an investment by the organization. Thus, as with any other investment, the cost of holding stock most be related to the benefit to benefit to be gains. To do this effectively the cost must be identified and this can be done in the three categories:-

1. Cost of obtaining stock
2. Stock out costs.

All these spare parts which may how similar menu by description varies greatly among themselves depending on the type or model of vehicle using them. Thus, the management and operation of stories function and the control of stock on only be performed in on efficient manner when there is an appropriate means of up turning and storing information and a facility for the analysis and use of this information.

In the light of the above, ANAMMCO Ltd Enugu maintains a visible record system returned to as KARDEX, a manual form of inventory control system.

As a prerequisite in any quality control system, ANAMMCO Ltd maintains a peculiar but unique coding system such that all the numerous spare parts are each uniquely coded and identified for accurate and specific information on them.

The operation of the KARDX was often prove to redundancy or duplication of items whenever there is instilling; it requires a lot of paper work with their possible variations or discrepancies during documentation; it involves, so many people thereby investing a lot of man hours; increased cost of procure storage of non-moving or obsolete items leads to customer dissatisfaction due to time wasting and unavailability of information. Thus, the efficiency of the system is greatly dependent on human factor and as such accuracy.

So, it is an attempt to rectify and modify the above inadquaciets that we have decided to develop and implement on integrated computerized stock control system so as to maximize the operation efficiency, ensure customer satisfaction based on quick.

Services, minimize the non-hour requirement involved, reduce the running costs, guarantee accuracy and at the same time generate reports that assist management in her decision making as it concerns planning, organizing and controlling.

1.1 Background Of The Study (MB-Anammco Ltd) Enugu.

After the recommendation of the fourth (4th) National Development plan in 1975 to increase the number of automobile plants in Nigeria in order to address the problem of transportation, a Mercedes Benz Plant was chosen. Other reasons for establishing the plant being to:

1. Diversification and Rapid industrialization of the Nigeria Economy
2. Modernization of industrial workers
3. Indigenous man-power training
4. Technology transfer and
5. Manufacture and Assembly of Mercedes Benz commenced vehicles and trucks in Nigeria.

MB-ANAMMCO LTD, as it is famious by known and called means Mercedes-Benz Anambra motor manufacturing company limited Enugu. This company is strategically located along IBB A port link Road Enugu Industrial Layout Enugu.

The plant is a joint owned by the Government and people of the federal Republic of Nigeria and Daimier-Benz AG of Germany. Their share equity is in the ratio 60% to Nigeria and 40% to Daimier, Benz AG Germany.

Therefore Mercedes-Benz ANAMMCO LTD, Enugu was Licensed to manufacture Mercedes Benz commercial vehicles in Nigeria.

The company was incorporated in Nigeria as a private limited liability company on the 17th the day of January 1977. On the 12th day of May 1978, it’s foundation store was laid by colonel John Atom Kpera then military Governor of ANAMBRA States (Now, ENUGU and ANAMBRA STATE). Later on the 8th day of June 1980, Mercedes-Benz ANAMMCO LTD, was commissioned by Alhaji Shehu Usman Aliyu Shagard, them president Head of state and commander in client of the Nigeria Armed forces; ANAMMCO LTD, commenced production officially on January 1981. Ever since them her services network is speed throughout Nigeria. The company uses foreign and local contents in the manufacture of the Mercedes Benz commercial vehicles.

1.2 Statement Of The Problem

It is a common knowledge that decision makers in any organization require information to perform the great functions of planning, producing and controlling. Therefore, it is necessary to discover and adequate means of making the information available to every on concerned. This is because, for decisions to be made correctly, the information must be consistent, accurate, timely and reliable.

Thus, this work is aimed at developing and implementing an integrated computerized quality control system in production of an automobile firm (case study ANAMMCO LTD ENUGU NIGERIA).

1.3 Problems Of The Study

1. The encountered when carrying out this study are that obtaining necessary information from staff of Anammco was not easy because some of their information are regarded as company secret.
2. Production of spare parts on manual approaches has been very difficult.
3. There may be inadequate or non-existent stock records.
4. Obsolete items are retained in stock, which makes it difficult for one to know the overall items in stock.
5. Finally, problem of fund, the economy is bed, so to get money now is difficult.

1.4 The Purpose Of The Study

The objectives of this work inadequate the following:

1. To ensure appropriate stock quality control coding with a view to minimizing stock redundancy or duplication inherent in the manual system of quality control system in production.
2. To ensure operational efficiency thereby maximizing the customer services level with in level with I menaced accuracy.
3. To generate consistent, accurate timely and reliable reports that assist the management in her decisions as it affects the stock and the organization for effective pleasing, organizing and controlling.

1.5 Scope Of The Study

Even though that Mercedes-Benz Anammco Ltd, is the case study with her divers inventories, this work is only continued to the administration of spare parts (finished good type of inventory) as it concerns ordering, Receipts, soles and Reports.

Therefore it excludes the W-I-P work-in- progress) and other forms of quality stock control. It also excludes other automobiles firms.

1.6 Aims And Objectives

The aims and objective of this work is that when, the system becomes operational it will.

1. Permit on-line-time data storage and information retrieval
2. Save the production time per section and as such ensure customer satisfaction
3. Increase the operational efficiency and accuracy
4. Reduce stock redundancy or inherent in the manual system.
5. Generate consistent, Accurate, timely, and effective stock control towards profit making and
6. Reduce the operational costs

1.7 Limitation Of The Study

Various factors hindered the realization of objective of this work. Among these are:-

1. Few computer centres in the institute has front-page application used in running this program. This in due to other student too uses the centers for their project.
2. Getting the intention of the managers is a very big test.
3. Obtaining necessary information and approved from the production manager of the central spare parts department was not easy for me at most of his information requiring are regarded as company secrets.
4. This work was financially oriented b/c the money spend on transporting my self from home to ANAMMCO has the amount paid for computer time was too much.

1.8 Definition Of Terms

1. Lead or procurement time:

This is the period of time expressed in days, week’s months etc. between ordering and replenishment ie leathern goods are available for use.

2. Demand:

This is the amount or quantity required by sales, production etc. per week, month or year etc.

3. Economic ordering quantity (EOQ):

This is the calculates ordering quantity which minimize the balance of costs between inventory holding cost and recorder costs.

4. Physical stock:

This is the number of items physically in stock at a given time.

5. Minimum or safety stock:

This is a stock allowance to cover errors in re casting the lead time or demand during the lead-time.

6. Maximum stock level:

This is the stock level selected as maximum desirable which is used as an indicator to show that stock have risen too high.

7. Recorder level:

This is the level of stock of which further replenishment order should be proud. It dependent upon the lead-time and the demand during the lead-time.

8. Recorder quantity:

This is the quantity of the replenishment order. In some types of inventory control system it is the EOQ.