STORE CODING AND MATERIAL IDENTIFICATION AND EFFECT ON STORE EFFICIENCY

1.1 Introduction

Store is being described as any space reserved and equipped for holding stocks, waiting for dispatch to customers for further processing or for further use. The word store can also be used to means materials. The responsibility of physical situation and condition of materials and issuing when required has with the store man and his department and storage facilities must be adopted to suit the types of materials handle. However, for the store to carry out its operation effectively there must be an effective ways of identifying materials. Codification is an organization ways or method of identifying materials to give room for uniformity in the description of the items concerned.

According to Macgrathy (2008) classification and codification of materials are steps in maintaining stores in a systematic way. Materials are classified in such as way that storing, issuing and identifying of materials become easy generally; materials are classified on the basis of their nature. Materials can also be classified on the basis of quality and utility, for example, materials may be classified on the basis of their nature.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of technical terms.

1.2 Background of Study

Store code and material identification has witnessed great transformation in recent times due to technological advancement. Consequently, the risk of store personel have become far easier, more efficient, cost effective and all major operations are executed with high level of accuracy.

Store code and material identification is an aspect of store management that enjoys this transformation. The process of indexing, coding and sorting has improved significantly with computer system application across different purchasing organization. Materials brought into stores are immediately assigned system code and file names for easy identification. This is necessary to avoid problems of multiplicity of inappropriate or incorrect names assigned to materials.

Invariable, the vocabulary of identification and coding are separate concepts that are independent and mutually exclusive. Although, it is possible to have a good vocabulary in an organization not using a coding system; identification of material successfully in inventory management is greatly aided by a logical system of classification covering all inventory items for the purpose of code.

Identification is the process of systematically defining and describing all items in store. The preparation and maintenance of store vocabulary is essentially or technically efficient. Vocabulary lies with the stores managers and his team who is responsible for the managing efficiency. Vocabulary includes the development of a technical for ensuring that words describing the articles or materials are sequence of importance. Whether or not a code system is at use, this technique should be employed. An efficient code system assists the store personnel in the controlling of the stock and easy identification of materials without wasting time. And vocabulary on the other hand is the transfer to writing of the things which has been recognized. Unfortunately, the users from the various functions department tend to draft the description according to their use of the items.

In this research work, an attempt is made to determine the hazards in preparing a vocabulary. Code or store catalogue and its effect on store efficiency of NBC Nigeria Plc.

1.3 Statement of Problems

Investigation revealed that in most public establishment, code is left in the hands of non-professionals or even at worst in the hands of school certificate holders. The selection and placement of these mediocre in such strategic functions account for the poor performance of those establishments. The problem of poor materials are roughly handled, misplaced middle and mixed up etc the principle of an item for a place and place for an item is made of mockery.

Training and development in the store management area of an organization has always been flooded with professional and is considered as a dumping ground for unproductive personnel because of the notion that the store is nothing more than receiving and issuing section.

Management do not see code as an important aspect of storage and by so doing they feel without adequate and located with ease and so why should much money be spent on training staff, code and even buying computers to code the range of item held in the store. Since an unprofessional can identify each item in the store by its common names and this may lead to confusion and wrong identification of material which may in turn lead to delay.

1.4 Aim and Objectives of Study

The aim of the study is to investigate the Store Coding and Material Identification and Effect on Store Efficiency. In achieving this aim, the following specific objectives were laid out as follows:

1. To identify the limitation to materials coding and classification with a view of proffering solution to them for the benefit of the organization;
2. To determine the need for the use of effective and efficient coding system;
3. To investigate the effect of inconsistency in store, coding and classifications; and
4. To proffer useful suggestions to management towards the application of the various method and techniques of coding and classification of materials.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Do you think that coding and classification of materials is important in manufacturing companies?
• Has efficient coding and classification method used in PZ Plc Aba?
• What are the solutions to the problem?
• What are the problems of coding and classification in PZ Plc Aba?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant effect of inconsistency in store, coding and classifications
• H1: There is significant effect of inconsistency in store, coding and classifications

1.7 Significance of Study

The research believes that the project will succeeds in throwing more light on the subject matter. It will also go a long way in picking the conscience of all who have or assumed responsibilities of materials coding and classification of purchased material in manufacturing industry with particular reference to PZ industries Nigeria Plc Aba. This leads to limiting the traveling times in locating the materials stores, higher productivity and adequate professional recognition in industrial sector.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.8 Scope of Study

The scope of the research is focused on the Store Coding and Material Identification and Effect on Store Efficiency using Nigeria Bottling Company (NBC) as a case study.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definition of Terms

Stores Management: It involved the day to day running of the store. In specific terms stores management is involved in carrying out of operating, designed to accomplish the aims and objectives of the department as determined by the administrative sector. To realize the set objective, store management involved planning, organizing, staffing, directing, controlling and coordinating.

Stores Coding: Is the identification of stock items by numerals, or letters or by a combination of both and in which the position and value or each digit usually provide particular information about the items identified.