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The Significance Of Stores Management In A Manufacturing Organisation
[A CASE STUDY OF DOYIN INVESTMENT PLC, ILORIN]
CHAPTER ONE -- [Total Page(s) 3]
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CHAPTER ONE
1.1 INTRODUCTION
In developed countries, stores management is recognized as one of the most important links in growth of business organization. It contributes majority to profitability and financial stability of a business firm. In developing countries however, it is yet to make its fullest impact store management therefore, needs to brought home to decision makers in private, public and most especially manufacturing companies so that they can appreciate its significance (cost saving contributions) to so help the organization out in these times of recession.
Stores management however, covers a great deals more than physical keeping of items in stores but also includes.
1. Holding controlling and issuing of stock
2. Control of all store house, stock yard and outside store units.
3. Material handling function
4. Quality control activities
5. Training of store staff
6. Clerical administration of stores operations etc.
Store management therefore, mean keeping items in stock, ensuring that they are identifiable accessible, safeguarded and available to meet all demands without carrying unnecessary large stock.
1.2 HISTORICAL BACKGROUND OF THE CASE STUDY
Doyin Investment Plc. located at Asa Dam Road, Ilorin, Kwara State is a member of Doyin group of companies, and the first manufacturing company in Nigeria. It was incorporated on 8th October, 1984 with head office in Lagos, the company is operated by full blooded Nigerian.
It is owned by courageous and experienced industrialist, prince (Dr) Samuel Adedoyin who had for many years been championing the indigenous technology backward integration using local materials.
Despite the economic downturn then, the factory metamorphosed tremendously from its one investment factory and pioneer staff strength of 40 resourcesfulness, sourcing by which Doyin Investment Plc. has been contributing and industrial revolution. The company consistently parried up with the existing multinational investment manufacturing companies in healthy competition towards enhancing the growth of the Nigerian economy. The company products include flash, wash shirt, super deal and his clean securer and vogue grand soap among others.
Based on this, the company short into national and international fame and was awarded Nis (National Industry Standard) Certificate.
The certificate was awarded to it by the standard organization of Nigeria as a mark to affirm that the company’s product can compete with others internationally.
Apart from that, the company also provided employment opportunities to Nigeria who are suppliers manufactures, contractors,
transporters, distributors e.t.c presenting, it has an indigenous labour strength of about 1500 workers in different grades.
The company given priority to industrial safety and good house keeping. Hence, sound wastes periodically cleared by sanitary inspectors form the Kwara State EnvironmentalProtection Agency. This generating revenue to the State Government.
As a way of reaching the nooks and corners of the country the company has many sales deports scattered all over the federation. They include Aba, Abeokuta, Benin, Enugun, Maiduguri, Ondo, Onitsha, Sokoto, Oyo e.t.c
1.3 ORGANIZATION STRUCTURE
In the company’s organizational structure, authority flows from top ladder. The complexity and the fact the personnel changes are taking place constantly create the need for organizational chart and manual.
Organizational chart is a process whereby each department is
tied together along the principal lines of authority. It is the planned
frame work around which individual effort resolves. It also determines how the to be done is shared out which in turn affects both communication and personal relationship between people in the establishment.
In the case of Doyin Investment Plc, the General Manager of the company sees to the day today affairs easy flow of information and communication problems do not arise at all because the structure of the organization does not allow message to be delayed. He has the responsibility to co-ordinate and supervises the activities of the various departments. He is directly responsible to the chairman and board of directors of the organization. Immediately after the General Manager, there are two Assistant General Manager, one overseeing production and the other for sales department of the various sections existing in the company. On unique feature of this organizational chart is that the internal auditor who oversees the adult department owe his allegiance directly to the chairman of the company and board
of directors.
Auditors are to carry out a regular auditing of the purchase of raw materials, their utilization and the use of all company’s assets.
There are seven departments in the organizations in the organization namely production, Technical, Account, personal internal auditing laboratory and quality control department and sales department.
Looking at the organizational structure of Doyin Investment Plc. One will see that it is formal in nature with authority and responsibility flowing from the top the bottom of the organization.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
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