ABSTRACT
This
research work is concise and generally summarizes the activities duly carried
out in the design and implementation of a computerized stock management 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 or computerized 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
A stock management system is a key part of the supply chain and
primarily aims to control the movement and storage of materials within a
warehouse and process the associated transactions, including shipping,
receiving, put away and picking. The systems also direct and optimize warehouse
put away based on real-time information about the status of bin utilization.
The objective of a stock management
system is to provide a set of computerized procedures to handle the receipt of
warehouse and returns into a warehouse facility, model and manage the logical
representation of the physical storage facilities (e.g. racking etc), manage
the warehouse within the facility and enable a seamless link to order
processing and logistics management in order to pick, pack and ship product out
of the facility.
In its simplest form, the stock
management system can data track products during the production process and act
as an interpreter and message buffer between existing ERP (Enterprise resource
planning) and stock management systems. Stock Management is not just
managing within the boundaries of a warehouse today; it is much wider and goes
beyond the physical boundaries. Inventory management, inventory planning, cost
management, IT applications & communication technology to be used are all
related to warehouse management. The container storage, loading and unloading
are also covered by warehouse management today. Even production management is
to a great extent dependent on stock management. Efficient stock management
gives a cutting edge to a retail chain distribution company. Warehouse
management does not just start with receipt of material but it actually starts
with actual initial planning when container design is made for a product.
Warehouse design and process design within the warehouse (e.g. Wave Picking) is
also part of warehouse management. Warehouse management is part of Logistics
and SCM.
Warehouse Management monitors the
progress of products through the warehouse. It involves the physical warehouse
infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with
receipt, storage and movement of goods, normally finished goods, to
intermediate storage locations or to final customer. In the multi-echelon model
for distribution, there are levels of warehouses, starting with the Central
Warehouse(s), regional warehouses services by the central warehouses and retail
warehouses at the third level services by the regional warehouses and so on.
The objective of warehousing management is to help in optimal cost of timely
order fulfillment by managing the resources economically.
1.1 BACKGROUND OF THE STUDY
Warehouse management
monitors the progress of the products through the warehouse. It involves the
physical warehouse infrastructure tracking system and communication between
product stations.
Ware house management deals with receipt storage and monetary goods, normally finished goods to
intermediate storage location or to final customer. In multi echelon model for
distribution, there are the levels of are
house starting with the central warehouse(s),regional warehouse and retail
warehouse at the third level services by the regional warehouse and so on. The
objective of warehouse is to help in optimal cost of timely order fulfillment
by the resources economically.
Effison limited is the focuse of impact of this project;
effison limited is a warehouse that controls the progress of progress of goods
and merchandise kept on its premises available for distribution. The company has
the problem of insecurity, high cost of operation and delay in supply arises.
Data processing in Effison limited is presently carried out using people,
paper, pen to control the stock and inventory.
1.2 PURPOSE OF THE STUDY
This
project gives a company the convenience of controlling the activity in the
warehouse and thereby giving information to managers to assist in proper
decision making the company. This project is pursued with Effison Limited as
the focus of impact. The major modules
of the project are:
User login module:
This
module would be the first to appear when a user launches the proposed system.
These would help to ensure that un-authorized user don’t have access to the
system. At start-up users would be required to login with their username and
password.
Reports module:
This
module would be used for managerial staff for proper decision making in the
day- to – day activity of the company.
Customer module:
This
module would be responsible in registering a customer into the company
database. This information used during the registration process would then be
used during shipping to direct goods to the appropriate customer
New item module:
This
would be responsible for the acknowledgment of goods into the warehouse.
Warehouse update
module:
This
module would be used during the process of updating the quantity of a
particular good in the warehouse.
1.3 STATEMENT OF THE PROBLEM
The
majority of the problems that occur in the warehouse occur because of a lack of
control: a lack of inventory control, operational control and or management
control. To become a dynamic, consistent organization, all the operation must
be under control. In order to achieve this control, all the tools and
technology available has to be used to get control and manage the warehouse
operation. A control system is a means, mechanism or procedure by which we
manage these operations
In
Effison Limited the method used in tracking goods involves the traditional
record keeping and identifying products according to written labels. Inventory
management and distribution typically relies on a traditional process of taking
a physical inventory of products and manually ordering refills, while also
eliminating product that is nearing or passed its expiry.
In
the recording of a transaction only a single employee at a time is able to
enter the record on a ledger book and furthermore some goods are not entered in
the book but sold directly. Reports are not generated daily, weekly or monthly
but only on a yearly basis and this cause mishandling of funds among the
employees. The warehouse does not have a backup and recovery for the products
of transactions journals made for the inventory items. Security is not there
because the users and the administrators both perform the same tasks.
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.
The
manual system is quite tedious and can be reduced or eliminated with the
introduction of the proposed system.
1.4 OBJECTIVES OF THE STUDY
Stock management within warehouses is
a challenge given the characteristic value specific nature of the products.
Global visibility of finished and semi-finished products can greatly improve
both inventory turnover and maximize production efficiency. One of the major goals in Stock Management is to
track, store and move goods and materials efficiently; keeping inventory levels
down while still always having enough products on hand. Picking and packing,
controlling logistics documents, and in and outbound monitoring are all part of
this process. The operations of this software include the following:
·
Lowering Working Capital
·
Increase inventory
turns
·
Managing Fixed Assets & Resources
·
Improve physical
inventory process,
·
Prevent selling expired
products.
·
To keep track of all
transaction to prevent any losses.
·
To conduct casual
analysis to identify common trends in transaction by means of reports.
·
To prevent the company
from running out of warehouses.
1.5 SCOPE OF THE STUDY
The
Stock management system is intended to cover all the operations of the company.
The scope and tasks of the research project include finding out the scale of
implementation of stock management system and perceived barriers for adoption,
evaluating the strengths and weaknesses of warehouse management system
currently adopted by the industry as a whole. Stock management is a challenge
given the characteristics value specific nature of the product.
1.6 SIGNIFICANCE OF THE STUDY
This
study material will help in automated data collection in the stock management
system thereby reducing the cost of labour and increase the accuracy of data
and easy access of the inventory exits in the warehouse. Also this study
enhances increase in the effectiveness of the service provided to the customers
by reducing the cycle time.
Customers service like first in
first out, cross docking, order tracking and automated material handling are
some of the area that finds and increase the efficiency of similar items and
location can be categorized, more detail are also maintained such as exact
dimension weight, rank, in which it is stored, hazard classification weather it
is a finished goods or a raw material, weather it is fast mover or slow mover
e.t.c all these data item have to be stored in the database. therefore computerized
stock management are gaining important in logistic nowadays.
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 STATEMENT OF HYPOTHESIS
This project will demonstrate the
implementation of a computerized stock management system of a warehouse.
Creating an automated application of plan and manage the delivery of goods
within their warehouse, thereby controlling all inventories of a warehouse.
Questions I asked myself.
What will this project do?
This project will help control an
inventory and exit of goods and products within a warehouse and also control
all the activities and information for effective decision making.
1.9 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.
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