THE APPLICATION OF COMPUTER TECHNOLOGY ON THE INVENTORY CONTROL SYSTEM AS A PRODUCTIVITY IMPROVEMENT STRATEGY IN NIYYA FARMS NIGERIA LIMITED KADUNA

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ABSTRACT

The primary objective of this research work, the application of computer technology on the inventory control system as a productivity improvement strategy in Niyya Farm Nigeria limited Kaduna is to carry out paper investigation as regards the awareness and reaction of people concerning the project topic, taking Niyya Farm Kaduna as a case study. The write-up center on discussing inventory control system, computer and also the problem of manual inventory control system in an organization. In order to achieve this goal, the researcher uses questionnaire method of data collection to gather information about the subject matter, from general/inventory staff of Niyya Farm Kaduna. Hence the data gathered are presented and analyzed in a tabular form in order to give vivid and clear interpretation. Finally the researcher summaries his findings, draw a conclusion and gave necessary recommendation for Niyya Farm and other companies who have not yet computerized their inventory system.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE CASE STUDY

The advent of computer technology has boost production of both domestic and industrial activities. Technologically, advance countries are advancing in their research effort to make the global world free for man to live with little or no stress through information technology.

In Nigeria, only few industries are enjoying the benefits of information technology in the area of computer in inventory control system. Among the few industries, not all information that are essential for effective management are documented because the software were developed by foreigners which know little or noting about the socio-cultural background of end users. Apart from this, the cost of inventory of such software is always too high. These set back always prevent them from getting the full benefits of computer in inventory control system but this project tends to develop a more easy and cost effective software that is suitable for Niyya Farms Nigeria limited Kaduna.

Glantier (1999) stated that inventory control is to provide means of exercising close control over the flow of the inventory into production or sales thereby not only preventing loss but also ensuring adequate levels are maintenance. The purpose of these is to focus on the procedures applied to control inventory on a daily basis. It is also a system, which needs to maintain record of both quantities and values, in this aspect, it will be called inventory valuation depending upon physical stock taken combined with valuable base such as unit cost market value.

Confer (2001) defined inventory control as the process of ensuring that stock help by the organization, is supplied to those part of the operation that required the items, that is production, distribution and sales. Engineers bearing in mind the factors of time locations, quality and cost.

Peter (2003) defined inventory control as the making of decision on the level of stocks that may be economically needed to meet all requirements for planning production.

Demsy A. (2001) defined inventory, as activities required keeping the facility in a built condition in order to have its original productive capacity. Inventory activities are a major coat factor in most industries, affecting both returns on capital and production throughout (commission). Inventory management system makes equipment and facilities available at least cost. It makes sure that every facilities in perfect condition to meet its production capacity. It is obvious that down time has to be kept at minimum and a good inventory management system helps to accomplish that at minimum possible cost.

However, the essence of the use of computer in inventory control is to utilize large investment in inventories effectively and to facilitate efficient operation of the organization.

It is basic that scientist allover the word has completely bypassed the stone age syndromes and are now basking in the Euphoria of the computer age, which is a product of technology and ceaseless research. It is also a fact to mention that all sphere of life have been affected by the current computer revolution ranging like a wild fire. This project work is to present a comceptional and practical approach to inventory control system in Niyya Farms Nigeria limited using computer since inventory requires an accurate and constant record keeping.

1.2 STATEMENT OF THE PROBLEM

The quality of inventory control has been a major determining factors in the success or failure of competing organization.
The use of manual system showed many symptoms of poor control. Boxes set on the ware house shelves collecting dust and then joined by more of the same item even though the old inventory never moved, one item would be stored in five different places and re-ordered when one of the bin is empty.
Uncounted product/part lots were easy targets for pilfering by employees. A warehouse filled up, when extra spaced was leased no one could keep track of what was in which building.

Once a year, operation was shut down for the tedious and almost unmanageable task of taking a physical inventory. Figuring out what the goods on hand were actually worth became a paper chase for invoices and purchase orders, and finally, not very educated guess.

Inventory control has proven to be one of the clearest examples of the problem of automation. Often inventory control programme have been plagued by two short comings on one hand, inventory packages have been too sophisticated, because of the many accepted methods of controlling inventory, packages have laundry lists of conflicting mathematical formulas understood neither by the users of the system, nor by the programme. The dozens of reports produced not only failed to provide an understandable picture of the current inventory, but made the situation worse by miscalculating or misnaming commonly used indicators. On the other hand, packages have been too simple. Common occurrences often stumped the system. For example due to a physical miscount, there may have been more of an item than was listed by the computer when the item was sold to customer, the computer would reject the transaction because, in theory, miscounts never happen. There was not enough of the items in stock according to the Computer to fill the orders whether because of an inadequate manual system or a poorly automated one, expanding organization have seen their profits margin eaten away by the many different costs of an uncontrolled inventory, that is what this project is made to eliminate.

THE EFFECT OF MATERIAL AND STOCK CONTROL ON THE PROFITABILITY IN KADUNA REFINING AND PETROCHEMICAL COMPANY (KRPC), KADUNA

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ABSTRACT
This research is on the effect of material and stock control on profitability (a case study of Kaduna Refining and Petrochemical Company). The study used both primary and secondary source of data collection. Questionnaires were used to elicit the view of the respondents on whether material and stock control has effect on the profitability of Kaduna Refining and Petrochemical Company. Frequency and percentage were used in analyzing the data collection, and chi-square was used to test the hypothesis formulated. Some of the problems facing KRPC are those of procurement of raw materials, inventory management and control. These come about as a result of inability of the company (KRPC) to calculate the economic order quantity and the various control levels use in the management of stock. The major purpose of this research on material and stock control are to analyzing the effect of material and stock control in KRPC to know the importance of material stock control in KRPC and to give future research room to improve on where the present research stop. Seventy (70) samples were used and two (2) hypotheses tested. The research among other things made the following findings: the KRPC is such a large company that every major section of its operation is now fully computerized and the stores staff are given periodic training.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Material management, as practiced in business today, can be defined as “a confederacy of traditional material activities bound by common idea. The idea of an integrated management approach to planning, conversion flow and distribution of products materials form the raw materials state to the finished state (Iornum, 2007).
The above definition implies that materials management is generally concerned with the flow of material from the source of supply through the production line to the final consumers. This means that the material management include such function as the primary responsibilities of purchasing plus other major procurement responsibilities like inventory control, traffic, receiving, warehousing as well as production planning and control.

Later Douglas also defined material as aggregate of those ordinary causes of business which are in the process of production of goods or service to be available for sale. Material are significant portion of most firms of assets which accordingly requires substantial investment in order to keep these inventories from becoming unnecessarily large, material must be managed effectively. In modern business greater emphasis have being put in material handling. It concern in material management is to provide material in the right condition at the right time. It implies that the handling procedures should be able to appropriate stock level, ensuring proper use of stock and ensure that inventory is fully amounted for.
Jonny Ater – defines material handling as the movement and protection of material goods and products through the process of maintaining, distribution, consumption and disposal. Material handling should be controlled and carried out properly if a huge standard of efficiency and cost effectiveness is to be achieved.

1.2 Statement of the Problem

Material and stock control in organization is an important aspect of production process. Many companies engage diverse strategies to achieve organizational goal through material and stock control. The control of material as it affects Kaduna Refining and Petrochemical Company (KRPC) is the unavailability of material in store an proper reconciliation of possible loss to business through interruption of production or failure to meet order with the handling cost of stock.
Here in Nigeria, a cursory look at our economic problem will appear to suggest the non-adoption of materials management which is a product of our industrial philosophy that has made our manufacturing sector over important dependent. Though the organization (KRPC) under the study has advance store and way of obtaining their materials but lack proper personnel to handle the material problem.
1.3 Objective of Study
The following are aimed at realizing the objective:
i) Analyzing the impact of material and stock control in KRPC
ii) To know the importance of material and stock control in KRPC
iii) To provide useful recommendation as related to the study
iv) To give future research room to improve on where the present research stops.

MULTI NATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES IN THEIR HOST COMMUNITIES

(A CASE STUDY OF SHELL COMPANY PORT-HARCOURT, RIVER STATE)

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CHAPTER ONE:  INTRODUCTION                                      1

1.1     Background of the Study                                                             1

1.2     Statement of the Problem                                                   3

1.3     Objectives/Purpose of the Study                                        4

1.4     Significance of the Study                                                   5

1.5     Research Questions                                                            6

1.6     Scope of the Study                                                            6

1.7     Limitation of the study                                                       6

1.8     Definition of Terms                                                           7

CHAPTER TWO: REVIEW OF RELATED LITERATURES   8

2.1     Theoretical Frame Work                                                    8

2.2     Historical Background                                                       9

2.3     Current Related Literatures on Social Responsibly             16

References                                                                         50

CHAPTER THREE: RESEARCH DESIGN

AND  METHODOLOGY                            51

3.1     Research Design                                                                51

3.2     Sources of Data                                                                 51

3.2.1  Primary Sources of Data                                                   51

3.2.2  Secondary Sources of Data                                                51

3.3     The Population of Study                                                   52

3.4     Sample Design and Determination of Sample Size            52

3.5     Methods of Data Collection                                               53

3.5.1  Questionnaire Design, Distribution and Collection of

Responses                                                                          53

3.5.2  Secondary Methods of Data Collection                              54

3.6     Method of Presentations and Analysis                               54

References                                                                        56

CHAPTER FOUR: DATA PRESENTATION ANALYSIS     57  

4.1     Data Presentation                                                               57

CHAPTER FIVE: SUMMARY OF FINDING,                 RECOMMENDATIONS AND CONCLUSION       71

5.1     Summary of Finding                                                         71

5.2     Recommendation                                                               72

5.3     Conclusion                                                                        75

Bibliography                                                                      77

Appendix A

Questionnaire

      CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF STUDY

Profit maximization was regarded as the primary mission and over-reaching economic motive of any business enterprises little or no attention was paid to the fact that, in pursuit of their profit objective, business enterprises have to be ask to assemble the resource from the local environment and have the stable socio-political and investment climate in which to operate successfully. If business organization relies on society for existence, it is only logical that this environment be acculturated and nurtured to ensure its continuity. It is in this regard that the orientation of the modern business manager has changed to reflect the increasingly important interdependence between organizations and there environments with these, there is an increasing public glamour that business should participate actively in the well being and environment in which they operate and make their profit.

However, the aim of establishing any business is to provide competitive goods and services to the consumer and society at large. This does not however, mean that they have concluded their obligation to the people especially to the host community where the business is sited and operated.

Although there is no law as what form of services the host community should benefit from the business, it is morally obliged to cater for at least their host. This they do by aiding the development of infrastructures such as access roads where necessary and the provision of good water for domestic use and also the provision of electricity of the local population. Other forms of services that could be rendered for the young members of that community and of course the provision of gainful employment for those who have graduated from college.

There are a lot of other services that the host community can benefit from the business such as the provision of safety measures against pollution other air or water. On the other hand, to the business also look forward to the local populace, for continued patronage and also for ensuring the safety of lives and properties of the business and employees of that business who are not from that community. Therefore, the recognition by businessmen of the need to keep the good of society as a whole to mind while conducting business in the bed-rock of social responsibility.

1.2       STATEMENT OF THE PROBLEM

The controversy about the public clamor that business should participate actively in the well being and welfare of the community, society environment in which they operate and make their profit are the problems among others this research intend to solve. Has business social responsibility any part to play in the total marketing effort of business organizations or enterprises?

Does business social responsibility contribute anything to the total revenue of the company? Is the conception that there is no need for business enterprise to be socially responsible to its society “SHELL PORT-HARCOURT” true or false? Of what use is business social responsibility to the general public? The problem for this research is what the responsiveness of companies to social responsibility is.

The following research hypothesis are formulated for the purpose of carrying out this project of which:

THE IMPACT OF FOREIGN DIRECT INVESTMENT ON THE NIGERIAN ECONOMY.

(A CASE STUDY OF NBC PLC ENUGU)

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ABSTRACT
The study of the nature involves a lot of deep research and understanding of the factors, which creates the effects on the subject matter.  Primarily, these factors were more economical than managerial as the case may be, on the understanding that this research work is being casual out under a management setting or department. Just as the subject matter is, the impact of foreign direct investment on the Nigerian Economy with a case study of Nigerian Bottling Company Plc, it is based on the economic, social and entrepreneurial impacts created by these multinational companies like NBC Plc on their host societies. Based on this, the objective of this study was to determine through quantitative and quantitative measures whether the benefits of multinational enterprises (MNE’S) out weigh the cost that results from their activities in the hose countries.

The first chapter of this work contains a general discussion (i.e. critics and defense) of FSI’s activities in host countries.  Further the statement of the research problem was studied and the need for the study.  The scope and limitation to the research work was finally looked into with the stated hypothesis which guide the researcher in his evaluations.
In chapter two, a number of part related literatures were examined as it relates to the impact of foreign direct investment to Nigeria as the case may be with particular reference to NBC Plc activities in Enugu Zone.
Chapter three treated the design of the study, the method of collecting data and the ways in which the questionnaires were distributed within the chosen population.
The data gathered from the research were analysed and interpreted in chapter four of this research report.
Finally, the summary of findings, conclusions on the research work and recommendations were given by the researcher all in chapter five.
It is believed that these recommendations made in this study will help both the multinationals in their relationship with their host communities as well as creating an enabling environment from the host country for their business to there.
TABLE OF CONTENT

CHAPTER ONE

1. Introduction

1.1     Overview of the study

1. 1. Brief review of Nigerian Bottling Company Plc
   2. Statement of research problem
   3. Research questions
   4. Hypothesis
   5. Scope of the study
   6. Limitations of the study
   7. Definition of terms

CHAPTER TWO

1. Literature review
   1. 1. Theoretical review
      2. The impact of foreign direct investment on the growth

of the host society

1. 1. Theoretical paradigm
   2. Theories of foreign direct investment

CHAPTER THREE

1. Introduction

3.1     Research design

1. 1. Area of the study
   2. Population of the study
   3. Sample and size determination
   4. Instrument of data collection
   5. Validation of the instrument
   6. Reliability of the instruments
   7. Method of data collection
   8. Questionnaire distribution and retrieval
   9. Method of data analysis

CHAPTER FOUR

1. Presentation of analysis and interpretation of data

4.1     Answers to questionnaires

1. 1. Test of hypothesis

CHAPTER FIVE

1. Discussion of results of findings

5.1     Conclusions

1. 1. Recommendations
   2. Suggestion for further studies

Bibliography
Appendix 1
Appendix 11

CHAPTER ONE

1. INTRODUCTION

1.1     OVERVIEW OF THE STUDY
Nigeria emerged from the colonial experience with an economy structured in accordance with the imperators of colonial economic relationship.  The first National Development plan of (1963) was launched with the objectives of providing the framework for industrial take off and development.  However, as the foreign investors were apprehensive of the nascent independent administration, efforts were made not only to alloy their fears of nationalism but also to attract more foreign investments through joint ventures with regional government then or the federal government.  The first development plan as an open door regime saw an increase in the establishment of miscellaneous foreign enterprises in Nigeria, many of which are unincorporated branches of their overseas business.
However, just only about few years offer independence when the rest of the world including the erstwhile colonial master had hardly adapted to the realities of Nigeria’s attainment of nationhood or for the Nigerian government to articulate and plan its own economic policy, the country experienced its first military coup d’ et al in 1966.  this was followed by the civil was which tested for three years hence necessitated the cohesion of resources towards the successful execution of the war.  The period saw the introduction of various control measures of great significance.  For the foreign investors, these include licensing, quotas, exchange control measures with two tier compulsory credit system for import payments, restriction on capital/individual transfer and the promulgation of the companies decree of 1968 which compelled all forms operating the country to be incorporated as Nigerian Companies subject to local regulations.
Foreign Direct Investment (FDI) refers to a movement of capital that involves ownership and control of a firm in another country for instance, the purchase of common chores in a Nigerian incorporated company by a French citizen involves ownership and an element of control.  This is because all shares in an organisation have same voting rights.
For the purpose of this classification such is recorded as FDI if the shares acquired involves more than 10% of the outstanding common shares of the Nigerian company.
In this research and generally, Foreign Direct Investment is classified in the context of Multinational Corporations (MNC).  The MNC is sometimes refereed to as Multinational Enterprises (MNE) is Transnational Corporations (TNC) or Transnational Enterprises (TNE).
According to the chairman of BOD’s of Chemical Co, a multinational form in the united state origin “the emergence of a world economy and the multinational corporation have been accomplished land in land”.  He sees multinational enterprises moving towards what he called “a global company”, a firm that have no nationality but belongs to almost all countries.
The phenomenon of the MNC can be explained only in a world of imperfect factor and product market characterized by differential taxation market power and share, positive information costs and the existence of pure specific revenue producing assistance.  In such a world, the market mechanism is partially replaced by other organizational firms, which generates and transmits relevant information and which co-ordinates production and marketing decisions.
The MNC arises in other words in response to a particular kind of market failure caused by high differential costs of inter-nation transfer of market information and technology and of course, factors of production (Tour and Hirsil 1979).  The key features of MNC are the, it provides the recipient nation with a package of knowledge, capital and entrepreneurship development.  It may thereby create a positive contribution to economic growth and development in host countries.
Many multinationals corporations exist in the Nigerian economic settings these encompassed the manufacturing sector like Nigeria Bottling Company (NBC), constitution like Julus Berger Nigeria, Mineral Exploration like Shell Nigeria, banking etc, to mention but a few.  It becomes pertinent that the manufacturing sector be given due cognizance for the purpose of the research work.  In this sector, the Nigerian Bottling Company Plc will be a case study and a pointer.
The concept of Multinational Corporation and economic development has remained on the relationship between the MNC’s and the host societies and how development is appraised in these host societies.
The issue of contribution to development through social responsibility by the business enterprise has become a topical issue in management decision and is negatively favoured in these host societies.
They have rounding argued that there has been gross neglect and lack of development focus in their place or communities.  It is good to discuss the fact that some laudable developments have been directly felt by these host societies in terms of revenue, employment technology transfer and other benefits to the government.  It is a fact that Nigeria is a developing country and have the same peculiar characteristics with other developing nations of the world such as low standard of living with low savings and investment and lacks managerial know how.  This has placed Nigeria in a guest for resources from other developed nations viz-a-viz international business through MNC’s.
It is also right to say that MNC’s like other business ventures has the objective of profit maximization as their aim.  From the foregoing, this research work places premium on the critical evaluation and  examination of the impact of foreign direct investment (MNC) activities in the Nigerian economy using Enugu Zone which comprises Enugu North, Enugu South, Enugu East and 9th Mile Corner on a bench mark.  The prospective here is primarily managerial and economic i.e. the dissension focuses on the important part in the overall evaluation so, they are discussed along with the above mentioned factors.
The research work therefore will try to examine.

BRIEF REVIEW OF NIGERIAN BOTTLING COMPANY PLC
Coco-cola which is the major product of Nigerian Bottling Company Plc was first made on 8th May, 1886 by Dr. John Styth Demberton a pharmacist in his home town Atlanta Georgia U.S.A.
The name coco-cola was given by Frank M. Robinson Dr. Demberton’s partner and book keeper.  He also designed the flowing script that distinguishes the famous trade mark.  Coco-cola is the world’s leading soft drink, sold in more than 145 countries of the world.  A total of 250 million servings are consumed everyday in all parts of the world, from Canada in the North America to Argentina in Southern America, from Alaska to China, from Mexico to Nigeria.
Coca-cola first came into Nigeria in 1953 when Nigerian Bottling Company set up its fruit plant in Lagos.  It was to be the beginning of an executing story of growth and development particularly during the past ten years.  Nigerian Bottling Company is today Nigeria’s No. 1 better of soft drink selling more than 6 million bottles per day.  The figure which is still growing daily with the continuing expansion of the existing 12 plants and with the opening of brand new plants in various parts of the federation.  It has other products like Fanta which is the best seller in the orange segment and spirit the most widely sold lemon have drink in Nigeria.  Other products bottled by NBC includes Fanta ginger Ale, Fanta tonic Krest soda and Krest bitter lemon.
The successes of coco-cola has brought the development of a number of sister industries all contributing to the Nigerian economy – the Delta Glass Company in Ughelli, which supplies the millions of bottles required to keep a large bottling company in operation and the crown products factories in Ijebu-oche and Kano which manufactures the metal crowns to seal the bottles, the Benin plastic company which manufacturers the plastic creates for carrying bottles.  In addition, the trucks which are seen in many parts of the country delivering soft to more than 60,000 dealers are also assembled by ANNAMO in Nigeria.
Nigerian Bottling Company is also the largest manufacture in the country of carbon oxide (C02) used to carbonate the soft drink.  The NBC employed over 6000 Nigerians in all fields of operation.  The Nigerian Bottling Company is also engaged in philanthropic activities environmental protection and also a major sponsor sporting events on Nigeria and world as a whole.

1. 1.    STATEMENT OF RESEARCH PROBLEM

The undeveloped countries like Nigeria suffer not only from low income and unstable growth, but also from regional disequilibrium, economic instability unemployment, depending on foreign countries, specialization in the production of raw materials and economic, social, political and cultural marginality.
Underdevelopment is an element in the process of development of the international system underdevelopment and developments are two facts of a single process of which both internal and international structures are causes.  International treacle brings about polarization because the low income countries are assigned the production of primary production (raw materials) which are processed in the home countries because of worsening and unstable terms of trade, because the economics of the low income countries lack the force work force, the entrepreneurship and physical/institutional infrastructure to seize export opportunities and because of generally monopolistic arrangement by which profits flow out from the underdeveloped countries to the developed.
Because the NNC’s tend to come from the developed countries and because their operations tend to add to host countries production, MNC’S presumably improves the distribution of income, goods and services between the richer and poorer countries.
Within the host societies however, it is guide different to judge whether a direct investment project improves or aggravates these income, goods and service distribution.
The literature critical of MNC’s demonstrates that Foreign Direct Investment (FDI) after do not help the economic life of cost societies, do not improve their well being hence not benefiting lower income people Very well.
In Nigeria for unsnarl, there is that popular and commonly held view that manufacturing multinationals have done greater lower than good to the host communities as a result of their operations in these communities wheel has led to loss of economic and social quality and environmental degradation.  It is not out of place for one to say that these MNC’s have threatenical the health of the indigenes by the use of dangerous chemical, pollutants etc.  These and more are the problems that will be looked into which necessitated this research work.  It will try to examine the nature and pattern of foreign direct investment, that is International Corporation in Nigeria manufacturing rector with a particular reference to Nigerian Bottling Company Plc as a case study.