Design and Implementation of a Computerized Quality Control System in Stock Product

Design and Implementation of a Computerized Quality Control System in Stock Product

ABSTRACT

The purpose of the study is to computerize the quality control system in production (A case study of Anammco Nig. Ltd Enugu) and to develop a computer package whereby the technique observed from the manual method can be improved on.

It is known feet that the manual method of quality control in production has been associated with lots of inaccuracy in quality control and this has led to early breakdown of parts when in service.

The software when developed will facilitate and enhance the mode and methods of quality control in spare parts production of Aramco.

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 organization as it concerns addition to, storage and removals from the trading stock with appropriate record keeping.

ANAMMCO LTD, Enugu as an assembly plant maintains a large number 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 is 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 that effectively decouple operations.

To meet the possible shortage in future

To absorb seasonal fluctuation in usage or demand.

To enable the 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 represent an investment by the organization. Thus, as with any other investment, the cost of holding stock must be related to the benefit to benefit to be gained. To do this effectively the cost must be identified and this can be done in the three categories:-

Cost of obtaining stock

Stockout costs.

All these spare parts which may how similar menu by description varies greatly among themselves depending on the type or model of the vehicle using them. Thus, the management and operation of stories function and the control of stock only be performed efficiently when there is an appropriate means of upturning 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 the 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 uniquely coded and identified for accurate and specific information on them.

The operation of the KARDX was often proven to redundancy or duplication of items whenever there is instilling; it requires a lot of paperwork with their possible variations or discrepancies during documentation; it involves, so many people thereby investing a lot of man-hours; increased cost of procuring 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 the human factor and as such accuracy.

So, it is an attempt to rectify and modify the above inadequacies that we have decided to develop and implement an integrated computerized stock control system 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.

BACKGROUND OF THE STUDY (MB-ANAMMCO LTD) ENUGU.

After the recommendation of the fourth (4th) National Development plan in 1975 to increase the number of automobile plants in Nigeria to address the problem of transportation, a Mercedes Benz Plant was chosen. Other reasons for establishing the plant are to:

Diversification and Rapid industrialization of the Nigeria Economy

Modernization of industrial workers

Indigenous man-power training

Technology transfer and

Manufacture and Assembly of Mercedes Benz commenced vehicles and trucks in Nigeria.

MB-ANAMMCO LTD, as it is famous by known and called means Mercedes-Benz Anambra motor manufacturing company limited Enugu.

This company is strategically located along IBB A port link Road Enugu Industrial Layout Enugu.

The plant is jointly owned by the Government and people of the Federal Republic of Nigeria and Daimler-Benz AG of Germany. Their share equity is in the ratio 60% to Nigeria and 40% to Daimler, Benz AG Germany.

Therefore Mercedes-Benz ANAMMCO LTD, Enugu was Licensed to manufacture Mercedes Benz commercial vehicles in Nigeria.

The company was incorporated in Nigeria as a private limited liability company on the 17th the day of January 1977. On the 12th day of May 1978, its foundation stone was laid by Colonel John Atom Kara the then military Governor of ANAMBRA States (Now, ENUGU and ANAMBRA STATE). Later on the 8th day of June 1980, Mercedes-Benz ANAMMCO LTD was commissioned by Alhaji Shehu Usman Aliyu Shagard, the president Head of state, and commander in the client of the Nigeria Armed forces; ANAMMCO LTD, commenced production officially on January 1981. Ever since then her services network is speed throughout Nigeria. The company uses foreign and local content in the manufacture of the Mercedes Benz commercial vehicles.

STATEMENT OF THE PROBLEM

It is common knowledge that decision-makers in any organization require information to perform the great functions of planning, producing, and controlling. Therefore, it is necessary to discover an adequate means of making the information available to every on concerned. This is because, for decisions to be made correctly, the information must be consistent, accurate, timely, and reliable.

Thus, this work is aimed at developing and implementing an integrated computerized quality control system in the production of an automobile firm (case study ANAMMCO LTD ENUGU NIGERIA).

PROBLEMS OF THE STUDY

1. The encountered when carrying out this study is that obtaining necessary information from the staff of Anammco was not easy because some of their information is regarded as a company secret.

2. Production of spare parts on manual approaches has been very difficult.

3. There may be inadequate or non-existent stock records.

4. Obsolete items are retained in stock, which makes it difficult for one to know the overall items in stock.

5. Finally, the problem of funds, the economy is bad, so to get money now is difficult.

THE PURPOSE OF THE STUDY

The objectives of this work are inadequate the following:

1. To ensure appropriate stock quality control coding to minimize stock redundancy or duplication inherent in the manual system of the quality control system in production.

2. To ensure operational efficiency thereby maximizing the customer services level within level with I menaced accuracy.

3. To generate consistently, accurate timely, and reliable reports that assist the management in her decisions as it affects the stock and the organization for effective pleasing, organizing, and controlling.

SCOPE OF THE STUDY

Even though that Mercedes-Benz Anammco Ltd, is the case study with her diver’s inventories, this work is only continued to the administration of spare parts (finished good type of inventory) as it concerns ordering, Receipts, soles, and Reports.

Therefore it excludes the W-I-P work-in-progress) and other forms of quality stock control. It also excludes other automobiles firms.

AIMS AND OBJECTIVES

The aims and objective of this work are that when the system becomes operational it will.

1. Permit on-line-time data storage and information retrieval

2. Save the production time per section and as such ensure customer satisfaction

3. Increase the operational efficiency and accuracy

4. Reduce stock redundancy or inherent in the manual system.

5. Generate consistent, Accurate, timely, and effective stock control towards profit-making and

6. Reduce the operational costs

LIMITATION OF THE STUDY

Various factors hindered the realization of the objective of this work. Among these are:-

1. Few computer centers in the institute has front-page application used in running this program. This is due to another student too using the centers for their project.

2. Getting the intention of the managers is a very big test.

3. Obtaining necessary information and approval from the production manager of the central spare parts department was not easy for me as most of the information required is regarded as company secrets.

4. This work was financially oriented b/c the money spend on transporting myself from home to ANAMMCO has the amount paid for computer time was too much.

DEFINITION OF TERMS

1. Lead or procurement time: This is the period expressed in days, week’s months, etc. between ordering and replenishment ie leathern goods are available for use.

2. Demand: This is the amount or quantity required by sales, production, etc. per week, month or year, etc.

3. Economic ordering quantity (EOQ): This is calculates ordering quantity which minimizes the balance of costs between inventory holding cost and recorder costs.

4. Physical stock: This is the number of items physically in stock at a given time.

5. Minimum or safety stock: This is a stock allowance to cover errors in re-casting the lead time or demand during the lead-time.

6. Maximum stock level: This is the stock level selected as maximum desirable which is used as an indicator to show that stock has risen too high.

7. Recorder level: This is the level of stock of which further replenishment orders should be proud. It is dependent upon the lead-time and the demand during the lead-time.

8. Recorder quantity: This is the quantity of the replenishment order. In some types of the inventory control system, it is the EOQ.