THE NEED FOR EFFECTIVE CONTROL AND STORES ACCOUNTING IN AN ORGANIZATION (A CASE STUDY OF ROKANA INDUSTRIES NEKEDE)
This is a research project on the need for effective planning and control in purchasing activities, a case study of Rokana industry company Nekede it focus on the need of planning and control in all purchasing activities both at public sector and private sector. Nonetheless that this research was conduct on Rokana industry company Nekede Owerri, it contains practical analysis that will help both the private and public sector on how to plan and control their activities.
And the reader will find the analyses very logical which will portray the state of procurements on the entire organization or company. This work is arranged in five chapter, chapter one introduction the works background, objective, scope, etc. chapter two contains the review of related literature of other authors, chapter three is the method use to gather, information for this research work, chapter four analyses and presentation the data for this project.
Finally, chapter of this work contains the summary of finding conclusion and recommendations.
1.1 BACKGROUND OF THE STUDY
The need for effective planning and control in purchasing activities in any business organization be it small or, large. In any purchasing activities effective planning and control is the fundamental and primary managerial function for any specific operation which made it essential for successful strategy.
Implementation and strategy evaluation because all other element of management depend upon good planning.
PLANNING AND CONTROL CONCEPT
The only thing certain for the future of any organization is change and planning, is the essential bride between present and there future.
Planning consist essentially of deciding in advance what you want to do and the w ay you are to do it. Planning is the application of rational with the aim of making effective and efficient to the need and goals of the organization. On the other hand, control as a management function that concerns itself with taking the necessary preventive or corrective activities to ensure that the organization effectively and efficiently as possible. The main objective of planning and control is to ensure that the operations effectively and produces and services needed by the organization to carryout this objectives are available, in the right quality, at the right time and at the right level of quality. Every organization requires planning and control but the level of control and planning very from one organization to another.
Planning and control activities the system, procedures and decisions which bring these entities together. In other words, planning and control connect up the resources of the firm that are capable of supplying goods and services with the demands place upon the firm. Normally, they do this, through a set of systems, procedures and decision methods which products managers can see in the on going running of their firms operations.
1.2 STATEMENT OF THE PROBLEM
The need for effective planning and control in purchasing activities has not been fully understood and carried out by many services oriented transport companies. It is in this study of how, Rokana industries limited in terms of effective planning and control system.
Some of the problem encountered by the industries are as follows.
1. Late delivery of materials to the sub- store form the central stores. This is because the purchasing units located at different sub store were not given the authority to buy most of the spare parts needed accept minor and less costly ones.
2. Non- employment of professional in the field, the staff of the company stores has no professionals who can be highly competent. In the execution of the Job. This is due to the fact that there exist no professional who read purchasing and supply management.
3. The economic situation in the country has serious effect on the quality of planning and control in the organization.
4. Many Organization lack the knowledge of work station design and equipment selection in prosecution.
5. Most firms depot the concept of I will” when you lose attitude this result into poor project execution.
1.3 OBJECTIVE OF THE STUDY
In the light of the statement of the problems this study aim at a achieving the following objective.
1. To create serious awareness in the mind of firms and their employees on these serious need for effective planning and control in purchasing activities.
2. To make people appreciate the importance of effective planning and control in purchasing activities in organization.
3. To see whether the need for effective planning and control in purchasing activities can be improved through empowerment.
4. To suggest other ways of improving the need fro planning and control in purchasing activities.
5. To investigate the impact of the economic on the need for effective planning and control in purchasing activities.
6. To create the necessary awareness on the importance of empowering those who are involved in the planning and control in purchasing activities through treating seminars etc.
1.4 RESEARCH QUESTION
1. Does effective planning and control in purchasing activities
2. Does effective planning and control in purchasing helps to achieve purchasing objective?
3. Is planning and control important in purchasing?
4. Will setting up of a separate section for planning and control activities lead to more efficient management of the purchasing activities?
5. Will the use of goods step in planning and control improve the purchasing of materials?
1.5 STATEMENT OF HYPOTHESIS
A hypothesis may be defined declaration statement of a relationship between two or more variable used for better understanding of the problems of the study.
The null and alternation hypothesis has been select by the research to find ways of solving the problems and in carry oil this research, the research is using both (H0) and alterative (H1) to find out the role or the need for effective planning and control in purchasing activities, the assumption include the following.
H0: Effective planning and control purchasing activities does not help in achieving purchasing objective
H1: effective planning and control in purchasing activities help in achieving purposing objective.
H0: There is no need planning and control in purchasing
H1: There is need for planning and control purchasing
16. SIGNIFICANCE OF THE STUDY
The primary significance of this study is for partial fulfillment of the requirement for the award of higher national Diploma (NHD) in purchasing and supply.
The secondary significance is also geared towards exploring the academic relationship between classroom, theory and what is practically attainable in carefulness in choosing the research topic .
The third significance of the is to help and guide the younger ones on what to do when writing project or carrying out any research.
The forth significance of the project is to guide industrial purchases to effective and efficient of planning and control to enable them to obtain the” best buy which is the ultimate goal of the purchasing function.
1.7 SCOPE OF THE STUDY
This study was executed in Rokana industries Plc Nekede Owerri. Data and information were obtained from the manger and supervisor.
There is no intention in this research work to cover all of Rokana industries plc and their method of operations as such will be above the scope of this study.
In this study we will concentrate on the effective planning and control in purchasing activities of the Rokana industries Plc, identifying alternative ways of planning and control emphasizing its needs in the purchasing areas and finding the areas that will generate higher profit and goods sources of materials.
1.8 LIMITATION OF THE STUDY
Infact, there cannot be any successful research of this magnitude without encountering some difficulties. This project work is surrounded by some limitation, which indicates that it was not hitch free.
The following were some problem that was encountered in carrying out the following work.
1. Difficulties in securing some vital documents containing some valid information relating to the subject mater of the research.
2. The lukewarm attitude of some offices who were supposed to attend and give reasonable response.
Some of these interviews failed to give adequate information believing that it will reveal their lapses and loopholes.
3. The degree of time consumed at the expenses of lectures and other important assignments. This cannot be over emphasized.
4. Finally, finance was another-constraint for the researcher, Normally, a considerable amount of money, for the gathering of information, typing of manuscripts.
1.9 DEFINITION OF TERM
Some of the major terms used in this project work necessary because these terms have their own professional meaning in purchasing other than the grammatical definition.
1. Material: these are the parts or items used in the production of their material or product.
2. Quality: This is a goods materials or product that person or company need.
3. Quantity: This is the amount or volume to produce or it is the demand for products by users.
4. Planning: This is the art of arranging thing in order to achieve its purpose.
5. Control: This is to ensure that operation run effectively and produces product and services.
6. Purchasing: This is the art of buying materials from the market.
7. Supplier: Individual who main work is to supply goods and materials to the buyers.
8. Company: A group of firm that engaged in the some business.
9. Plant: The actually of production business
10. Cost: The total amount of money that need to be spending in the organization.
11. Time: This may be defined as specifically controlled through work scheduling in organization
12. Procurement: The include claries perform by purchasing as well as additional function materials supervisor and management, inventory control receiving inspection and sewage operation.
13. Price: The may includes all the sacrifice made to acquire a given product both monetary and monetary.
14. Pricing: This is the activates involved in setting the price for which a product will be said or deciding how much to a change fro something i.e we say that it is an on going activities that can hardly be completed.
15. Vendor: An outside suppliers of raw material suppliers equipment or services needed in the operation of an organization
16. Strength: It is the determination of the basic long term objective of enterprise and adaptation of course of action and allocation of resources necessary to achieve these goals no the organization presented means or approach to achieving its objectives.
17. Acceptance: This may be defined as promise to lonour and obligation to pay or to deliver.
18. Competition: A person or an organization that competes against other especially in business.
19. Contract: To make a legal agreement with somebody, fro them to do work for you or provide you with services.
20. Management: This may be defined as the act of running and controlling a business or similar organization.
21. Production: this is the art of transforming or converting raw materials into finished product or finished goods
22. Fixed: Saying the some not changing or able to change.
23. Value: It is a professional judgement about how much money or something is worth. It could also be the quality of being useful to important
24. Competition: A situation in which people or organization with each other for something that not everyone can have or to find out who is best
25. Organization: Is it a group of people from a business, club together in other to achieve a particular aim.