Published on August 7, 2014
PowerPoint Presentation: STORES ADMINISTRATION PowerPoint Presentation: INTRODUCTION All organizations, whether public or private, run stores where stocks are kept to enable them manage their Operations effectively. Store is a general term describing goods which are held in storehouses and stock yards. The bulk of these goods are usually intended for use in connection with production or operating activities, but the expression “stores” also covers finished products awaiting dispatch to customers, scrap and packages held pending supplies to suppliers. Items held in stock are usually described as Raw materials Piece Parts, Bought out Parts, Equipment and Parts, Tools Gauges Jigs and Fixtures, Packaging materials, PowerPoint Presentation: Work-in-progress, Scraps and Residues, Free-Issue materials and General stores. The stores play an important role in advising on the Quantity of items to be stocked provisioning and disposal of obsolete materials. Why Are Stock Held? Delivery cannot be exactly matched with day by day usage Discount for bulk purchase Fear of inflation Price fluctuation Some items appreciate in value during storage period. PowerPoint Presentation: Stores Functions To make available a balanced flow of raw materials, component, tools, equipment and other items necessary to meet operational requirements. - To provide maintenance materials, spares and general goods. To receive and issue Work-in-Progress and finished products. To accept and store scrap and other discarded materials as it arises. In the course of ensuring that the above stated functions are achieved, the following must be strategically and systematically addressed: PowerPoint Presentation: What things to keep in stock? When to order those goods What quantities of them to be ordered? Most factories stock some very expensive items as well as some very cheap ones, and use some perhaps once in a year, while others may be required at the rate of hundred in a day. In deciding what to stock, Unit cost, rate of usage lead time, deterioration, obsolescence stock facilities and capital must be carefully considered. From the foregoing therefore, the general planning and administrative functions of the Stores Manager will however, by and large depend On the nature and form of the organization’s policy guide- line on the stores activities which include: PowerPoint Presentation: Communication and Information:- (a) Local Purchase Orders (LPOs) Copies of all LPOs must be sent to the stores. This is to provide information on good ordered, quantity specification, unit price, date of delivery, user departments and point of delivery. (b) Receipt of Goods (i) Preparation of Goods Received Note, Rejection Note of Discrepancy Note and these are to be sent to the Purchasing Department, Accounts Department, Shipping and User Department. (ii) Returnable Packaging Materials should be noted. PowerPoint Presentation: iii) Inspection: There are three main types -100% inspections, sampling inspection or No inspection at all. This, however, depends entirely on the reputation of the suppliers and past performance. Lead time: It is that time between the period to react to demands and the actual time that the order is delivered. Provisioning - Fixed Order Quantity System or 2 Bin Systems. This represents the quantity which is normally ordered each when supply is required. PowerPoint Presentation: - Fixed Order Cycle. This involves examining the stock records for a particular class of commodity and raising a provisional demand at one time for all the items requiring replenishment in that class. This could be done monthly, quarterly, half yearly or once in a year depending on the policy. Determination of Stock Levels: There are three main types of stock levels which are Maximum, Minimum and Re-order levels. Factors affecting stock levels are probable requirements, size of order, lead-time, rate of issue, seasonal fluctuation, weather, storage costs and facilities, cost of ordering, shelf life, high/low value items and rate of turnover. PowerPoint Presentation: Disposal of obsolete materials Phase-in and phase-out of products Coding and vocabulary Specification and alternative use of products. Documentation (i) Stock cards (ii) Vocabulary (iii) Stock classification –ABC Analysis/Pareto-curve (iv) Requisitions (stores/purchase) Safety and Security Services Stock has to be protected against theft, pilferage, deterioration and fire incidence. Some of the measures to be taken are:- PowerPoint Presentation: Training of stores personnel as auxiliary fire fighters and regular inspections by the local fire brigades officers should be arranged. Provision of locks and walls in storehouses and stock yards. The Stores Manager must always undertake surveillance in and around the stores during and after office hours. Safe keeping of all attractive but small valuable items. Provision of Oxygen (02), Carbon dioxide (CO2), Fire Alarm System and Water Hydrant for the stores. Caution signs in the stores. Clothing/protective materials for stores personnel, e.g. Overall, Boots, Rain Coast, Hand gloves, Eye goggles, etc. PowerPoint Presentation: Accounts Services (i) Costing of stocked items – FIFO, LIFO, Weighted Average, Standard pricing. (ii) Stock verifier (iii) Stock taking To verify the accuracy of stock levels. To support the value of stock shown in the balance sheet by physical verification. To disclose the possibilities of fraud, theft or loss. To reveal any weakness in the system for the custody and control of stock. PowerPoint Presentation: 5. Application of Computer Services to Stores Operations 6. Reports Periodically, reports are prepared for management information and consideration on several issues, such as:- - Sales to determine the total turnover of the business transactions, stating fast and slow moving items. - Batch reports listing all settled orders and unsettled orders for the specific date range. - Suggested inventory order which will provide the current inventory held, current build to quantity and the suggested order quantity. - General Store Statistics:- This will comprise of summary of orders, customers, products consumption, habits of department, etc. PowerPoint Presentation: Personnel Services (i) Recruitment:- Even though this is not his direct responsibility but he has to project the total requirement of his personnel all the time and will therefore make a request for same. (ii) Training of Staff – Most systems are dynamic, hence, the stores should not be an exception. Therefore, the Manager must provide an up-to- date course for his personnel to be abreast with modern training in the industry. (iii) Motivation – This is where the Manager has to provide a conducive environment to enable the staff work hard for good performance. PowerPoint Presentation: Records All stores transactions must be kept for records and reference purposes. Records such as:- - Store Requisitions - Issues of goods from stores to users - Receipts of goods - Suppliers Invoices - Scrap and Surpluses Sales records Stores Manual or Handbook A stores manual is usually a valuable guide book for all store staff. This provides information relating to procedures and rules governing all stores operations. PowerPoint Presentation: Conclusion The need for effective and efficient manning of any stores operation cannot be over-emphasized. As such all stores managers must adopt all measures necessary for this. It is on this premise that this course was designed to assist stores managers handle their operations without much problem.