DESIGN AND IMPLEMENTATION OF AN AUTOMATED INVENTORY CONTROL SYSTEM FOR A MANUFACTURING ORGANISATION
(A CASE STUDY OF NIGERIAN BREWERIES PLC, ENUGU)
ABSTRACT
This research work is concise and
generally summarizes the activities duly carried out in the design and
implementation of an automated inventory control system for a
manufacturing organization. The system is designed to efficiently handle
the movement and tracking of goods through the replacement of human
workers by technology. The manual method or intervention is labour
intensive, costly, and error prone and cannot ensure the inventory
remains up-to-date due to oversight and internal shrinkage. With the
proposed new system, inventory can be updated in real time without
product movement, scanning, or human involvement. The automated system
allows inventory status to be determined and shipping and receiving
documents to be generated automatically triggering automatic orders for
products that are low in inventory. The study outlines the main concepts
of the analysis and design methodology of the proposed system, compares
it to the existing and goes further to explain the design and
implementation of the system using Visual Basic 6.0 for the database.
The fact finding techniques employed is interview, observation, online
and library research.
CHAPTER ONE
1.0 INTRODUCTION
An inventory control system contains a
list of orders to be filled and then prompts workers to pick the
necessary items, and provides them with packaging and shipping
information. Inventory control may be used to automate sales order fulfillment process and also manage in and outward material of hardware.
Automation is the replacement of human workers by technology. For
optimal sales and inventory management process, robust functionality is
needed for managing logistics facilities. Warehouse management functions
for inventory control cover internal warehouse movements and storage
and its support helps in the recording and tracking of materials on
basis of both quantity and value.
This application takes care of all
supply orders reducing cost for warehousing, transportation while
improving customer service. It significantly improves inventory turns,
optimizes flow of goods. It also improves cash flow, visibility and
decision making providing efficient execution of tasks using this fast
and reliable computerised method
1.1 BACKGROUND OF THE STUDY
The Nigerian Breweries PLC was
established in the year 1946. It aims at providing satisfaction and
nourishment to the Nigerian population through the distribution of
drinks like beer, coca-cola, fanta, sprite etc. It is second to none and
for this reason, the demand is high and the company responds to the
increasing demand by stabilizing supply to strike a balance.
Justifiably, the company has the problem
of keeping adequate record of goods transfer and since it is done
manually, associated problems of insecurity, high cost of operation and
delay in supply arise. Data processing in Nigerian Breweries PLC is
presently carried out using people, pens, and paper to control stock and
inventory.
The design and development of an
automated inventory control system for the Nigerian Breweries PLC will
no doubt bring immeasurable relief from the problems associated with the
manual system.
1.2 STATEMENT OF THE PROBLEM
The Nigerian Breweries PLC is to an extent manually operated and reveals a number of problems.
- The recording of sales and cash received are done manually on a book that appears rough. Thus, the books are exposed to physical damage, information can be lost and dust particles are accumulated.
- The long list of supply orders waiting to be attended to on daily basis.
- The control system is time consuming, less accurate and less efficient, and the environment is not user friendly.
- Inaccuracies often ensue from human error.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to improve
current operational process in the Nigerian Breweries PLC to its full
capacity by developing efficient computer software that can handle
inventory in a computerised fashion.
1.4 SIGNIFICANCE OF THE STUDY
This study is primarily aimed at
increasing efficiency in operations, reducing maintenance and running
cost, monitoring the supply of goods and its distribution and increase
profit in the Nigerian Breweries PLC by introducing an automated
inventory control system.
1.5 OBJECTIVES OF THE STUDY
The main objective of this study is to develop a computerised inventory control management system. Others include;
i. It provides total asset visibility.
ii. It allows reduced inventory stocking levels giving full inventory history.
iii. It reduces lead time, shelf space, and errors due to damage, fatigue of staff and overall cost of operations.
iv. It facilitates “just in time” deliveries.
v. It provides full process control for products.
vi. It provides higher level security as the system would be passworded to prevent unauthorised access.
vii. It shortens cross docking time and speeds up sort/pick up rate.
viii. It helps the management plan, monitor, optimize resources and ascertain their financial position at any time.
1.6 SCOPE OF THE STUDY
The scope of this study covers the
Nigerian Breweries PLC as a whole, and its customers which include
retailers, distributors and the general public.
1.7 LIMITATIONS OF THE STUDY
This project was constrained by the following factors:
(a) Financial Constraints: Bearing
in mind the economic state of the nation, it was found difficult in
making both ends meet, because of the exorbitant nature of things
nowadays in travelling for the collection of data needed for the
project.
(b) Time Constraints:
Looking at the interval between the resumption and vacation of the final
semester for the project to be completed, the time given seemed to be
short for the collection of required information for better work to be
done.
(c) Non-Availability of Material:
During this project, it was noticed that the required materials needed
for the project are not documented. Those that were documented lacked
storage facilities where they can be reached.
1.8 DEFINITION OF BASIC CONCEPTS
Automation: This is the use of technology or computers to control and process data reducing the need for human intervention.
Database: This refers to a large store of related data on a computer that a user can access and modify.
Password: This is a
secret code that must be entered into a computer to enable access to its
applications. It is made up of numbers, letters, special characters or a
combination of any of the above categories.
Inventory Control System:
A list of orders to be filled, and prompts workers to pick the
necessary items and provides them with packaging and shipping
information.
Computerization: This is the conversion of a manually operated system to a controlled, organized and automated system.
Research: A careful study of a subject to discover facts, establish a theory or develop a plan of action based on the facts discovered.
System: A set of computer components functioning together.
Technology: The study
of techniques of mobilizing resources such as information for
accomplishing objectives that benefit man and his environment.
Software: A computer program or set of instructions that direct a computer to perform processing functions.
Information System: A collection of procedures, people, instructions and equipment to produce information in a useful form.
Processing: This is dealing with something according to an established procedure.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 COMPREHENSIVE OVERVIEW
According to Microsoft Encarta (2009),
Inventory is the quantity of goods and materials on hand that a
manufacturer uses to represent those items that are ready and available
for sale.
An inventory control system is a set of
hardware and software based tools that automate the process of tracking
inventory. The kinds of inventory tracked with an inventory control
system can include almost any kind of quantifiable goods including food,
clothing, books, equipment and other items that consumers, retailers,
or wholesalers may purchase
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