Project Materials

NEED OF STORES CODING AND CLASSIFICATION IN A MANUFACTURING COMPANY

Chapter one

INTRODUCTION

1.1 Background of the Study

A manufacturing company, whether in the public or private sector, has a storehouse, warehouse, and stock yard where various sorts of goods or materials are received, stored, and distributed to different consumers. It is critical for all store personnel to have complete knowledge and characteristics of all of the stores in their storeroom; this will allow them to identify the stores, correctly record receipts, and resolve concerns.

It will also assist them take adequate care of the resources. In order to achieve his first task of effective store identification and coding, the store manager grouped all of the supplies that needed to be acquired and produced. These are located in various storehouses throughout the organisation, with the majority of them being closer to the use point, and are engineering warehouses.

The primary goal is to create an unambiguous classification and coding system that promotes clear internal communication. Ideally, this system should be constructed such that all departments within the organisation may use it successfully.

The purchasing and store departments are crucial areas where the system must provide consistent and unambiguous identification and coding for businesses.

If each stock item is assigned a scientific identification code, a comprehensive catalogue can be compiled for use when a part is required. It is possible to swiftly check whether it is in stock.

The stock records will identify the exact location. The British Standard Institution has done a lot of work to establish standards for materials and products. When a standard specification number is quoted, both the customer and the supplier will know what is being returned.

Even if it is not possible to develop a sophisticated coding system or arrange it on logical lines, it will be of great benefit to a business in avoiding errors. The store’s material grouping has organised these materials into logical lines for easy identification, eliminating errors in locating, ordering, issuing, and so on.

The objects in the organization’s stock are marked against the proper bins and racks, and the code appears on all documents relating to material movement and use.

In fact, the store manager recognised the necessity of using the store’s lexicon or catalogue. As a result, the effectiveness of any material control or store management system is heavily reliant on the method used to effectively code and classify stores.

1.2 Statement of The Problem

In a manufacturing organisation, store coding and classification are deemed necessary for easy identification. It is facing some issues with a manufacturing company. The manufacturing corporation chose the nature of the item coding system, which implies that each item has a unique code number. This causes an increase in the volume of the store’s vocabulary.

A manufacturing organisation may encounter inconsistencies in material classification in the store area. For example, there is a section of spanning materials that was formerly classed as spanning stores but was recently transferred to administration stores.

There is a section that addresses the organization’s store terminology. A manufacturing company is also confronted with the issue of proper store classification.

1.3 PURPOSE OF THE STUDY

The research focusses on the necessity for store coding and classification in a manufacturing organisation. The study also aims to finalise the procedure and method used for store coding and classification in order to prefer them for the advantage of the organisation.

The study will also quantify the relevance of and, most importantly, make valuable recommendations to management regarding the application of various methods and strategies for coding and classification of stores.

1.4 RESEARCH QUESTION.

The requirement for store coding and classification in a manufacturing organisation The questions are as follows:

(1) What do you mean by the word “stores coding?”

(2) Explain several approaches of coding.

(3) What are the benefits of store coding?

(4) Explain the storage vocabulary and state its major purpose.

1.5 Significance of the Study

The researcher believed that the project would succeed in shedding more light on the subject; it would also go a long way towards calming the conscience of all who have or have assumed responsibility for store coding and classification of purchased materials in an organisation, resulting in shorter travel times, increased productivity, and adequate professional recognition in the organisation sector.

1.6 SCOPE OF THE STUDY

This effort will draw attention to the requirement for coding classification identification of things in a manufacturing organisation.

1.7 Limitations of the Study

The writer discusses the importance of store coding and classification in a manufacturing organisation.

(1) FINANCIAL CONSTRAINTS: Due to difficult economic circumstances, sufficient funding to support the most diverse research was not available.

(2) TIME CONSTRAINTS: The researcher matched his class work with helpful study, resulting in a very proper schedule.

(3) TRANSPORTATION: The transportation issue was a major concern for the project. The research wasted a lot of time on the car and may only succeed if he gets his point of call really late. At times, scheduled interviews may be missed, and reported journeys become essential.

(4) There is a scarcity of shop management manuals written by Nigerian authors in the country.

1.8 Definition of Term

STORES: According to Morrison (1982), a store is a generic term used to describe items stored in a storehouse, workhouse, or stockyard.

The majority of these products are often meant for use in manufacturing or operating operations, but the phrase store also includes any space dedicated and equipped for storing materials that are awaiting shipment to a customer for further processing or final consumption.

STORE CODING: This is a document in which information about the description code numbers of all things in stock is stored for future reference.

INVENTORY: A detailed list, including examples of household products and furnishings, is carried to the retailer.

STORE: A store or items that are available for sale, distribution, or usage, particularly goods stored by a trader or storekeeper who supplies or equips stores with stock.

STORE VOCABULARY: Is a bulk or file containing the code number for all items in stock as well as a detailed description.

BLOCK CODING: The sequential assignment of numbers by groups of tens, hundreds, or thousands. A block coding can include any number of pieces necessary to cover a specific classification.