CHAPTER ONE

INTRODUCTION

A quality control system in production management is a qualitative technique with strong financial implications having direct relationships with production, marketing, purchasing and financial politics.

Also, it is a system used in the management of stocks held by any organisation as it concern addition to, storage and removals from the trading stock with appropriates record keeping.

ANAMMCO LTD, Enugu as an assembly plant maintains a large amount of stock vehicles spare parts which are imported from any of her vendors, Vce:- MBAG.  Mercedes Benz AG Germany, MBBRAS.  Mercedes – Benz Brazil or MBE – Mercedes.  Benz Espama for the production line or sales to distributors or authorized agents dealers.

The stock are held for various among which are:-

• To ensure unit sufficient goods are available to meet anticipated demand.
• To provide a better between production processes.

This is, applicable to work in project stocks which effectively decouple operation.

• To meet possible shortage in future
• To absorb seasonal fluctuation in usage or demand.
• To enable production process to flow smoothly and efficiently.
• As a necessary part of the production process.

All these are logical yet, stocks accumulate due to the Less promise worthy reasons which are:-

• Obsolete items are retained in stock
• Poor or non-existing inventory control resulting in over targe orders, replacement orders being out of phase with production etc.
• Inadequate or non-existing stock records
• Marketing departments.

Whether as a deliberate policy or not, sticks, represents an investment by the organization.  Thus, as with any other investment, the cost of holding stock most be related to the benefit to benefit to be gains.  To do this effectively the cost must be identified and this can be done in the three categories:-

• Cost of obtaining stock
• Stock out costs. 

All these spare parts which may how similar menu by description varies greatly among themselves depending on the type or model of vehicle using them.  Thus, the management and operation of stories function and the control of stock on only be performed in on efficient manner when there is an appropriate means of up turning and storing information and a facility for the analysis and use of this information.

In the light of the above, ANAMMCO Ltd Enugu maintains a visible record system returned to as KARDEX, a manual form of inventory control system.

As a prerequisite in any quality control system, ANAMMCO Ltd maintains a peculiar but unique coding system such that all the numerous spare parts are each uniquely coded and identified for accurate and specific information on them.

The operation of the KARDX was often prove to redundancy or duplication of items whenever there is instilling; it requires a lot of paper work with their possible variations or discrepancies during documentation; it involves, so many people thereby investing a lot of man hours; increased cost of procure storage of non-moving or obsolete items leads to customer dissatisfaction due to time wasting and unavailability of information.  Thus, the efficiency of the system is greatly dependent on human factor and as such accuracy.

So, it is an attempt to rectify and modify the above inadquaciets that we have decided to develop and implement on integrated computerized stock control system so as to maximize the operation efficiency, ensure customer satisfaction based on quick. 

Services, minimize the non-hour requirement involved, reduce the running costs, guarantee accuracy and at the same time generate reports that assist management in her decision making as it concerns planning, organizing and controlling.  

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