Project Materials

EVALUATION OF ROLE OF STOCKTAKING AND IMPORTANT OF STOCKTAKING IN ADMINISTRATION OF STOCK CONTROL

ABSTRACT

According to production management experts, quality is a representation of a customer’s view of what a product should look like. And, for a manufacturing industry to continue, quality control must be implemented in all branches of Nigeria Bottling Company (NBC) Plc. To this goal, primary and secondary data were collected using questionnaires and interviews. It was discovered that the corporation prioritises the science of quality control by performing periodic maintenance on plants and equipment, as well as providing proper training for employees. Finally, people are motivated to do well on the job.

Chapter one

INTRODUCTION

1.1 Background of the Study

This research work focusses on the evaluation of stocktaking and checking in the verification and valuation of stock. With few exceptions, there is a statutory obligation for the audit of the company’s accounts for its annual balance sheet, which determines both the dividend to be paid to shareholders and the tax to be paid to the board of internal revenue.

Stocktaking is a way of checking or verifying stocks on a regular basis throughout a specific time period, such as quarterly, weekly, daily, or regularly throughout the year.

It is a method of determining the position and extent of stockholding in storehouses and warehouses at a given time in order to ensure that stocks are not unduly tied up in stock, and that this method can detect and determine the situation of stock items in terms of deterioration, obsoleteness, obsolesce, and redundancy.

Stocktaking and checking in most industrial companies may be performed by multiple people and requires extensive preparation. The following categories of information should be included on stocktaking sheets or cards.

i) Serial number for stocktaking

ii) Data from stocktaking.

iii) Location

iv) Vocabulary

v) Stock value

vii) Stock quality

viii) Description, and so on.

1.2 Statement of the Problem

The person responsible for stocktaking has been around for far too long. This issue persists in most manufacturing companies to this day and is more of a general problem than a unique one. Thus it is not restricted to a particular organization but all company also not just limited to the private sector with its background principles of non-profit but social service maximization.

i) Problems with effective management are one of the most common issues with stock taking because most businesses continue to struggle with proper management and control of their vast inventories.

ii) Failure on the part of top management officials to give deserved attention to the function of stores, as well as their inability to employ the services of a well-qualified stores office to take charge of store supervision and management.

iii) Added to these issues are the methods used to deal with storage facilities and the practice of violating store procedures by the organization’s top, middle, and junior carder workers.

1.3 PURPOSE OF THE STUDY

Most manufacturing companies in Nigeria ignore the role or evaluation of stocktaking and checking in the administrative of stores, resulting in the collapse and low profit making of the organisation.

In light of this, this research work attempts to highlight the objectives of stocktaking and checking. This is, thus, the goal of this study project.

i) To attempt to provide alternate ways for effective stocktaking and checking as needed.

ii) Determine the nature and scope of problems affecting stock management in manufacturing companies.

iii) Assess the viability of stock-taking measures.

iv) To determine through analysis the degree or extent of redundancy, obsolescence and deterioration of stock.

v) To demonstrate how efficient stocktaking can be organised.

1.4 Significance of the Study

Stocktaking is critical to the success of any organisation and is a major determinant of the organization’s continuity and effective output.

As the study is significant because it is hoped that on the completion, the study will make an interesting contribution to the understanding of the general and specific effects of stocktaking measures also it will further justify the need to strengthen management and control of stock with anticipated benefits in view.

The study will contribute to the existing literature on stocktaking for students under my supervision. Furthermore, the study is a required prerequisite for my award of the National Diploma Certificate at this level.

1.5 SCOPE OF THE STUDY

This study focusses solely on the role of stock taking and checking in shop administration, and it is limited to Nigerian manufacturing companies and store administration.

1.6 Limitations of the Study

A research project is never a simple undertaking to complete. There are times when the research will run into basic and inescapable obstacles. Hence this research work is not an exception.

Given the amount of time and money required for the study, as well as the difficulty in collecting data from libraries, the study is confined to Nigerian industrial enterprises.

It deserves mentioning that there are several other facts that would have been included in this research work but which will not be possible since there is no standard textbook. The final but not least limitation is intellectual in nature, as no work can exceed the intellectual ability of its author.

1.7 Definition of Terms

DETERIORATION: Deterioration refers to stock which lose their original or replacement value due to passage of time.

REDUNDANT: Another phrase for this is “surplus.” When more stock is purchased than is needed, it ties up capital.

OBSOLESCENT: When an item is considered to be obsolescent what this indicates is that in a very short amount of time, this item will be out of use or usage.