THE ROLE OF PROPER STORE RECORD SYSTEM ON PRODUCTIVITY AND PROFITABILITY OF MANUFACTURING CONCERNS.

ABSTRACT

The study about the role of proper store record system on the productivity and profitability of manufacturing concerns was carried out in Igara Growers Tea Factory in Butare, Kyamuhunga, and 12km on Ishaka- Kasese Highway in Bushenyi District.

The objectives of the study were; to assess the role of proper store records on productivity and profitability, to identify the relationship between proper store records and productivity and profitability, to identify the challenges faced and recommend the corrective measures to be taken to ensure proper productivity and profitability of manufacturing concerns. Literature of different authors was used to support this study. Only the employees were involved to provide the relevant data. Data collection was done using the questionnaires, interviews and observation. Data was then categorised, edited and coded and then presented into tables. Proper store record system improves productivity and profitability in a way that stock levels can easily be determined, stock counting becomes easier, theft is reduced in factory, proper identification of stock and there are challenges faced like untrained staff, slow up date of cards and higher price fluctuations. But the management has put in place workshops, recruited qualified staff and follow the re order levels. Generally the study proved that proper store record system plays a great role towards productivity and profitability of manufacturing concerns although there is still need for supervision with in stores management and allocation of duties properly among the staff.

TABLE OF CONTENTS

DECLARATION .................................................................................................. : ..................... i

DEDICATION .......................................................................................................................... iii

ACKNOWLEDGEMENT ........................................................................................................ iv

ABSTRACT .............................................................................................................................. v

ACRONYMS ............................................................................................................................ vi

LIST OF TABLES ................................................................................................................... vii

LIST OF FIGURES ................................................................................................................ viii

TABLE OF CONTENTS ......................................................................................................... ix

CHAPTER ONE ........................................................................................................................ 1

1.0 INTRODUCTION ............................................................................................................... 1

1.1 Back ground ofthe study ..................................................................................................... 1

1.3 Purpose of the study ............................................................................................................. 4

1.5 Research questions ............................................................................................................... 4

1.6 Scope ofthe study ................................................................................................................ 4

1. 7 Significance of the study ..................................................................................................... 5

1.8 Organisation of the study ................................................................................ : .................... 5

1.9 Conceptual frame work ........................................................................................................ 7

CHAPTER TWO ....................................................................................................................... 9

LITERATURE REVIEW .......................................................................................................... 9

2.0 INTRODUCTION ............................................................................................................... 9

2.1 Concept of store records ...................................................................................................... 9

2.2 Categories of store records .................................................................................................. 9

2.3 Importance of keeping proper store records ...................................................................... 10

IX

2.4 How to maintain proper store records ............................................................................... 11

2.5 Overview of productivity and profitability ........................................................................ 12

2.6 Relationship between proper store record systems and productivity and profitability ..... 12

2.7 Definition of key words ..................................................................................................... 13

CHAPTER THREE ................................................................................................................. 14

METHODOLOGY .................................................................................................................. 14

3.0 INTRODUCTION ............................................................................................................. 14

3.1 Research design ................................................................................................................. 14

3.2 Survey ofpopulation .......................................................................................................... 14

3.3 Sampling design ................................................................................................................. 14

3.4 Sampling procedure ........................................................................................................... 15

3.5 Sources of data ................................................................................................................... 15

3.6 Data collecting methods .................................................................................................... 15

3.6.1 Questionnaire .................................................................................................................. 16

3 .6.2 Interview ......................................................................................................................... 16

3.6.3 Observation ..................................................................................................................... 16

3. 7 Procedure of collecting the data ........................................................................................ 16

3.8 Data analysis and presentation ........................................................................................... 17

CHAPTER FOUR ................................................................................................................... 19

DATA PRESENTATION, ANALYSIS AND INTERPRETATION ..................................... 19

4.0 Introduction ........................................................................................................................ 19

4.1 Bio Data of Respondents ................................................................................................... 19

4.2 The Role of Proper Store record system on productivity and profitability ofl.G.T.F ...... 22

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4.3. The Relationship Between Proper Store Record System and Productivity and

Profitability of Manufacturing Concerns ................................................................................. 23

4.4.0 The Importance of Proper Record System to the Productivity and Profitability of

Manufacturing Concerns. ·····················································································:·················· 26

4.4.1 Monitoring the movement of stock by using stores ledger ............................................. 27

4.4.2 Checking prices .............................................................................................................. 27

4.4.3 Stock counting becomes easier ....................................................................................... 27

4.4.4 Knowledge about an item ............................................................................................... 28

4.4.5 Monitoring re order levels and make necessary material requisitions in time ............... 28

4.4.6 Proper identification of stocks ........................................................................................ 28

4.4.7 Giving back report to the share holders as far as in puts are concerned ......................... 28

4.4.8 Reducing theft in the factory .......................................................................................... 29

4.5 Methods used to Keep Store Records Proper in I.G.T.F ................................................... 29

4.6.0 Challenges Faced While Maintaining Store Records Proper ......................................... 30

4.6.1 Some items which are supplied in large numbers are hard to be counted manually ...... 30

4.6.2 Unexpected shortages of which some are controllable and others are not. .................... 31

4.6.3 Slow up date of cards ...................................................................................................... 31

4.6.4 Poor requisitioning by users ........................................................................................... 31

4.6.5 Plifliges ........................................................................................................................... 31

4.6.6 Untrained staff ................................................................................................................ 31

4.6.7 Low payments to store keepers ....................................................................................... 32

4.6.8 Manual system of keeping records ................................................................................. 32

4.6.9 High Price Fluctuations .................................................................................................. 32

4.7.0 Findings on the Solutions to the Challenges Faced While Maintaining Store Records

Proper ....................................................................................................................................... 32

4.7.1 Organising workshops .................................................................................................... 32

4.7.2 Recruitment of qualified staff ......................................................................................... 33