Management In A Manufacturing Company

5.    Stock control: This is the operation of continuously arranging receipts and issue it ensures that stock balances are adequate to support the current rate of consumption With due regard to the economy. This is by means of the instructions given or placing of orders.
6.    Issue and Dispatch: it is the process whereby demands are being received. Items required are selected and the users are allocated with items. It also includes where necessary the packaging of issues and loading of bucks with goods and delivery
7.    Receipt: This is also termed as the process of accepting from all sources all materials and parts which we used in the organization. These include supplies part maintenance, offices, capital installation and finished products.
8.     Stock records: These arc documents which record day to day, full particulars of individuals’ receipts, issues and balance of stock.
9.     Storage: It comprises of the management of the store house and stocky wards the operation of handling and storage requirement, and safe custody and protection of stock.
10.    Identification: This is defines by Morrison as the process of systematically deforing and describing all items of stock. It includes the preparation of a stores code or vocabulary the adoption of materials specification and the introduction of a degree of standardize.
2.9    Stock Control
Morrison further define stock control as the means by which materials of the correct quantity we made available as and when required with due regard to economy in storage and ordering cost, purchase prices and working capital. The following processes are involved:
    Regulating the issue of stock from the store house.
    Accessing the items to be held in stock.
    Regulating the input of stock store houses.
    Deciding the extent of stock holding of items individually.
Lysons (2001)
2.91    Reasons why organization hold Stock
Every organization or industrial concern has store house and it necessary to keep stores in stock for one or more of the following reason.
1.    Bull Discount: By having more stock there is need in any one production period e.g. weekly the organization is able to but in large quantifies then the purchasing department can obtain a more advantageous price because of bull buying the supplier will have a cheaper rate.
2.    Reduced purchasing cycle: the sequence of purchasing of events has to be gone through before an item is finally delivery to stock when an organization hold a high stock, the number of times this cycle has to be gone through is reduced and this cut down the management use and this reduces the cost of ordering i.e. postage, telephone calls all in checking payment
3.     Unreliable delivery of Stock: Many organization find it impossible to depend totally as any of their suppliers to deliver every order exactly on time, every time an order is made some cannot boost that they had never been held up by bait weather, transport delays or strikes.
4.     Operational risk reduction: Since mere stock than is needed is held there is less risk of a null stock situation about which could been stop production if a supplier fail to deliver the goods needed the factory can still be supplied from stock.
5.    Increased flexibility of Output: Holding certain whom of reserves stock, an organization will be in a position to increase its level of output arcane of increase in demand comes in e.g fashion, lax law etc.
6.    Appreciation of Stock value: When there is high level of price inflation the holding of stock purchased at a certain price can help to control and protect the organization against price increase.
7.     Work-in-progress reason: This is when a completely balance production flow is impracticable.
8.    For finished products: When the holding the stock between manufacturer and customer is necessary.