DESIGN AND IMPLEMENTATION OF AN AUTOMATED INVENTORY CONTROL SYSTEM FOR A MANUFACTURING ORGANISATION


Content

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.

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Title page                                                                                                    i

Certification Page                                                                                       ii

Dedication                                                                                                  iii

Acknowledgement                                                                                                iv

Abstract                                                                                                      v

Table of Contents                                                                                       vi

List of Figures                                                                                            viii

List of Tables                                                                                              viii

 

CHAPTER ONE                                                                          

1.0     Introduction                                                                                                1

1.1     Background of the Study                                                                      1

1.2     Statement of the Problem                                                                           2

1.3     Purpose of the Study                                                                        2

1.4     Significance of the Study                                                                            2

1.5     Objectives of the Study                                                                     2

1.6     Scope of the Study                                                                                     3

1.7     Limitations of the Study                                                                             3

1.8     Definition of Basic Concepts                                                            4

 

 

CHAPTER TWO

2.0     Literature Review                                                                              5

2.1     Comprehensive Overview                                                                 5

2.2     Types of Inventory Control Systems                                                         6

2.3     How Inventory Control Systems Really Work                                 8

2.4     What Industries Use Inventory Control Systems                              10

2.5     Warehouse Management Systems                                                     12

2.6     Automated Inventory Control System Software                               15

 

CHAPTER THREE                                                    

3.0     System Analysis and Design                                                             17

3.1     Methodology                                                                                     17

3.2     Data Collection                                                                                 17

3.3     Analysis of the Existing System                                                                 17

3.4     Limitation of the Existing System                                                     18

3.5     System Design                                                                                  18

3.6     Data Base Design                                                                              19

3.7     Organizational Structure                                                                            21

3.8     System Flow Chat                                                                                      23

3.9     Top down Design Diagram                                                               25

 

 

CHAPTER FOUR

4.0     Implementation, Testing and Packaging                                           27

4.1     Choice of Development Tools                                                                   27

4.2     System Requirements                                                                       27

4.3     Implementation                                                                                 28

4.4     Implementation of Supplier Record Form                                        37

4.5     Testing                                                                                              38

4.6     Packaging (Integration)                                                                     39

 

 

CHAPTER FIVE

5.0     Summary, Limitations, Recommendations, Beme & Conclusion               40

5.1     Summary                                                                                          40

5.2     Limitation                                                                                          41

5.3     Recommendation                                                                              41

5.4     Bill of Engineering Measurement & Evaluation (BEME)                           42

5.5     Conclusion                                                                                        43

          References                                                                                         44

          Appendix 1                                                                                       46

            Appendix 1 Supply Form                                                                 53

          Appendix 2 Sales Invoice                                                                  54

Appendix 3 Supplier Record                                                             55

Appendix 4 Customer Record                                                           56                                                                                 

 

 

 

 

 

 

 

 

 

 

 

LIST OF FIGURES                                                                    

Fig 3.7        Organizational Structure                                                                   23

Fig 3.8        System Flowchart                                                                   24

Fig 3.9        Top down Design Diagram                                                     25

Fig 4.3.1     Implementation of Program Design Process                                     29

Fig 4.3.2     Data Base Entry and Search Engine                                        30

Fig 4.3.3     Main Menu Transaction Process (Receive supply)                           31

Fig 4.3.4     Main Menu Transaction Process (Sales form)                         32

Fig 4.3.5     Main Menu Transaction & Exit (sales form)                                    33

Fig 4.3.6     Splash Screen; the Login Screen                                              33

Fig 4.3.7     Main menu form                                                                      34

Fig 4.3.8     Receive supply form                                                               35

Fig 4.3.9     Sales form                                                                               36

Fig 4.4        Supplier record form                                                               37

Fig 4.4.1     Edit form                                                                                 37

Fig 4.5        System Testing Process                                                           38                                                                                           

 

 

LIST OF TABLES                                                                                   

3.6     Data base; login                                                                                19

3.6.1  Transaction table; supply form                                                                  20

3.6.2  Sales Table                                                                                        20

3.6.3  Customers Table                                                                               21

5.1     Bill Of Engineering Measurement & Evaluation (BEME)                          42                                  

 

 

 

 

 

 

 

 

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.

The manual system is quite tedious and can be reduced or eliminated with the introduction of the proposed system.

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”   delivery

     v.            It provides full process control for products.

  vi.            It provides higher level security as the system would be password 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.


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