STOCK CONTROL IN A MANUFACTURING ORGANISATION A CASE STUDY OF BETA GLASS CO. PLC, UGHELLI

ABSTRACT

This project was undertaken to establish analytically the need and importance of sound scientific approach to stock control and cost control, in the face of our deteriorating economy and ever increasing cost of material. A case study of Beta Glass Plc. Ughelli was conducted.
The review of literature was comprehensive in chapter two. The significance of efficient materials budgeting and planning, Value Analysis (VA) and Value Engineering (VE) in cost-control was delineated. A typical is purchasing procedures and principles, although particularly suitable for a manufacturing organisation was also highlighted in the literature review.
The storage of supplies and stores control which is an integral aspect of stock cost control was considered in section 2.5 of the literature review. A detailed discussion of stock control methods dealing with quantitative models for materials planning and control was carried out under section 2.5.02 and section 2.5.03 various stock valuation methods were extensively discussion under accounting for stock in section 2.6.
The procedures and method of the study adopted in this research work, was highlighted under the research methodology in chapter three. Primary data were generated through the use of questionnaires and personal oral interview. Secondary data were obtain from journals, monographs of the international federation of purchasing and materials management (IFPMM), the institute of purchasing and supplies (IPS), the institute of Chartered Accountant of Nigeria (ICAN) and textbooks relevant to the need of the
The analysis of the data collected was carried out in four. The various sectors involved in stock control and cost control was empirically evaluated with particular regard to their functions, effectiveness and short comings.
In the light of the general findings and lapses, some recommendation were suggested to enhance the efficiency and effectiveness of stock control and cost control.

CHAPTER ONE

1.1 INTRODUCTION
Stock control is the system used in a firms investment in stock, which involves recording and monitoring of stock level, forecasting future demands and deciding when and how many to order to minimize over all cost associated with stock.
This emphasis as managerial area of responsibility which focuses on production on material control, procurement quality control and stock handing. Stock control is thus essentially an activity that is concerned with the efficient procurement and use of material for the attainment of predetermined corporate objectives.
The need for efficient stock control in the face increasing cost of material due to information and our deteriorating economy cannot be over emphasized. Stock constitutes an essential cost element of production in 2 large majority of manufacturing industries, stock cost account for about 65pccentage of the total manufacturing cost of their finished goods.
Obviously, the objective of any business concern among other is the maximization of profit. Profit maximization is the result of optional and efficient utilization at available financial and material resources. In essence, corporate success is measured by increased profit as well as by exploiting opportunities for sustained profit-ability.
Company’s procurement function becomes of paramount importance when its outlay account for high proportion of the total cost of manufacturing and operating process, when a large rang of diverse items are required, and these tends to be scare or unavailable at critical stage of the production cycle ,large ranges of spare parts have to be obtained from important source and their price / cost fluctuation and other international trade barriers.
On positive note, stock control has an important role with regards to profit maximization.