THE ROLE OF MATERIAL CODING AND CLASSIFICATION AN ORGANIZATION

1.0 Introduction

1.1 Background of the Study

Nigerian Bottling Company Plc (NBC) Nigeria Largest bottler of non-alcoholic beverage was incorporated in November 1951, as a bottling subsidiary of the A.G levanter group, with the sole franchise to bottle and sell coca-cola products in Nigeria. The production of coca began in 1953 at a bottling facility in the basement of maintained hotel. That same year, the first plant was commissioned at Malu Road in Apapa Lagos.

In those days of the small beginnings, the production line consisted mainly of manual operations and the output of a dozen cases per day. However, by 1960, annual sales has exceeded one million case and presently, sales estimates are in excess of 140 million case annually, over the years, NBC has grown from just one bottling plant to 14 plant, over 80 deports and numerous sales outlets nationwide.

In carrying out this function of Nigerian bottling company production, many materials are required. This bottling company having recognized the need for proper care of these materials appointed store personnel and store manager, and established a purchasing unit charged with the responsibilities of supplier's selection, ordering, progressing, acquisitioning and procuring these materials. The store manager including his personnel was charged with the responsibilities of storing, inspecting and developing systems for effective identification coding and classification of the material in the storehouses of their organization as their first responsibilities.

The store's manager of bottling company in his efforts to meet-up his first responsibility of effective identification and coding of materials has grouped all the materials required, purchased and produced. These are located in different store house at different parts of the organization, most of which are sited closer to the user points, and their stores are named accordingly, for instance, information technology store, production store, engineering stores. The basic objectives is to develop an unambiguous classification and coding system that facilitates clear internal communication ideally. This system should be designed so that it can be used effectively by the entire department in the organization clearly.

The purchasing and store department are critical area where the system must provide consistent and unambiguous identification and coding of materials.

If the stock items are given a scientific identification codes a complete catalogue can be assembled so that when a part is required it is possible to determine very quickly it if is in stock the stock records themselves will then indicate the exact stores location.

We recognized the British standards for institute who has done a great deal of work in establishing standards for materials and product, and when a standard specification number is quoted both customer and supplier will know exactly what is being referred to even where it is not possible to develop a sophisticated coding system, or arranged in logical lines will be of great benefit to a business in avoiding errors in orderings, issuing and pricing, etc. The store's manager of Nigeria bottling company through is grouping of material has arranged these materials no logical line for easy identification thereby avoiding errors in locating, ordering, issuing etc of item of stock in the organization the code appears on all document relating of the movement and the use of materials and are marked against appropriate lines and racks.

With this recognition, the store manager recognized the need for the use of stores vocabulary or catalogue therefore, the success of any materials control, or management of materials highly depends on the system adopted for effective coding and classification of materials stored.

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1.2 Statement of the Problem

Although materials coding and classification is considered a clues or yardstick for easy identification in Nigerian bottling company.

The organization having chosen all of the above coding system has resulted to giving every item different code numbers. This leads to the increase in the volume in an organization.

Nigeria bottling company is faced with the problems of inconsistency in classification of materials in the organization section. For instance, there is a section of spinning materials which is normally under the spinning organization but recently it has been transferred to the administrative organization.

There is also lack of a section who takes adequate care of the organization vocabulary the organization is also faced with the problem of inappropriate classification of materials.

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1.3 Objectives of the Study

The research work aim at finding out the procedure or steps and method used in coding and classification of materials in Nigeria bottling company.

It is also the aim of the study to identify the limitations to material coding and classification with a view of looking for solution to them for the benefit of the organization.

The study will also enumerate the need for the use of effective and efficient coding system.

And lastly, to offer useful suggestion to management towards the application of the various method and techniques of coding and classification of materials.

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1.4 Research Questions

In order to carry out a complete investigation on the subject matter, the researcher has come out with the following question; they are:

1. What advantages are attributed to as efficient coding system?
2. What extent has coding simplified specification and standardization of materials in Nigeria bottling company?
3. What is the importance of stores vocabulary in the organization.
4. How does the company classified and heat items not in the vocabulary.
5. What method of coding are being used in the organization.

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1.5 Significance of the Study

The researcher believes that the project will succeed in throwing more light on the subject matter. It will also go a long way in picking that conscience of all who have or classification of purchased materials in manufacturing industry with particular reference to Nigerian bottling company plc.

The significance of the study derives the usefulness in the following ways:

1. It will help the researcher to appreciate the need of coding and classification of items in private organization.
2. to the company, it will highlight that a purchasing manager and other manager in different organization will benefit by knowing that some materials that are stores or warehouse will be easy to be identified or located because of the coding and the classification system.
3. It will provide employment opportunity for many people and also faster communication between the store manager and the workers.
4. Finally, student or anybody that does not have an idea of the use of coding system, if comes across this project will also gain and have the knowledge as well and also use this project as research book.

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1.6 Scope of the Study

Materials coding and classification is a wide area of study, and the scope of this study will be restricted to the purchasing department of Nigerian.

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1.7 Limitation of the Study

The writer tends to cover the needs for materials coding and classification in a manufacturing industry with particular reference in Nigeria bottling company.

In carrying out this research projects the researcher was confronted with various limitation.

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1. Financial Constraints:

Due to the heard economic situation enough finance that should have avowed most diversified research wasn't available.

2. Time Constraints:

The researcher combines her class work with research itself. This made the researcher to experience a very high schedule. As she had no transport of herself the problem became worse.

3. Transportation:

Transportation problem posed a big trait to the project the researcher wasted much time for taxi, and may succeed only to get her point of call very late. Bottling company, in this respect, emphasis will be placed on examining the present system of the coding and classification and also identification of items.

A researcher will also cover a wide range of study on the assessment of the need of coding item in the private firm and other organization. The researcher finds it appropriate study a very representative and well know firms and draw a generalization accordingly.

This study will also be interesting in focusing attention on the existing problems relating to coding and classification of materials and also make commendation on possible mean's of eliminating the problem

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1.8 Definition of the Terms

Coding:

Coding is a system of writing in which letters of numbers or a combination of both are used to reduce lengthy into a small space.

Stock-Catalogue:

It is a booklet containing the list and description of every item normally carried in inventory.

Inventory:

It is a detailed list, example carried in store.

Stock:

Store or goods available for sale, distribution or use, especially goods kept by a trader or shopkeeper, supply or equipment, stock or materials.

Suppliers Code:

This is where the stores employs the coding system of the suppliers of the goods.

Black Coding:

This is the assignment of numbers of sequence by group of various sizes other than tens, hundreds and thousands a block can consists of any quality of number necessary to cover the item in a particular classification.

Code Symbol:

This is the symbols use are either alphabetical (e.g. OPEC), numerical (e.g. 05/06/1245) alpha-numerical (e.g. EXC/p/043)