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Stores
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Store functions concerns receiving,
movement, storage and issue of
materials raw material bought out
parts, tools, spares, consumables and
finished goods. etc. required forproduction, maintenance and operation
of the plant. Incase of finished goods -
till they are dispatched to the market for
selling purpose.
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Responsibilities of store management
are To receive materials, to protectthem while in storage from damage or
unauthorized removal, to issue
materials in the right quantities, at the
right time, at the right place and to
provide services at the least cost.
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Functions of Store Management
y Requisitioning from Purchase departmentan economical quantity of material fordelivery at the most appropriate time.
y Exercising control on quantity of materialreceived.
yStoring and protecting materials against
hazardous condition, weather, deteriorationand pilferage
y Issuing the material against properlyauthorized material requisitions
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y Maintaining the exact record of all
receipts, issues and balances tofacilitate ordering of required material.
y Maintaining the adequate record of
receipts and issues.
yMaintaining adequate stock of
materials to serve production needs
yKeeping inventory investment in
desired limits.
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Types of stores
Receiving store.
Main store.
Finished product store [warehouse].
Special store.
Scrap yard.
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Receiving store it performs the activitiesnecessary to exercise control on quality and
quantity of purchased material before they areaccepted and taken into stock. It can be furtherdivided in three categories like,
a. Inward store to keep incoming materials until they
are accepted and taken into stock.b.Quarantine store to serve temporarily which areunder dispute and require suppliers ortransporters certification. For example quantitydiscrepancy in the consignment transit damage to
the goods etc.c. Rejection store to stock defective (non
conforming) goods until they sent back to thesuppliers.
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Main store - It performs the activities concerningstorage and issue of accepted materials and
maintenance of records. Main store may beeither centralized and housed in a large godownor decentralized and located near point of use.Main store is divided as under,
a. Crib store to stock cutting tools, hand tools,measuring instruments and gauges etc. to theworkers in the beginning of the shift and at theend of the shift.
b. Finished part stores to stock components and
parts produced in economic lot size.c. Maintenance store to stock spares of plant and
machinery.
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Warehouse to perform activities
concerning receipt, packaging and
packing, dispatch of finished goods to
different destinations and handling of
connected papers and documents.
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Special store to perform activities of
receipts, storage and issue of specialmaterial some examples are,
a.Bonded store to store materialsHypothecated to banks to stock or
excisable goods etc.b.Statutory goods to stock materials
namely kerosene, diesel and otherpetroleum products requiring strictconformance to safety precautionsstipulated as per statutory regulations.
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C. temperature controlled store to stock
perishable items such as meat, fishmilk, vegetables, fruits or goods like
rubber and rubber parts, active
ingredients like antibiotics and
vitamins, and others which require
temperature controlled store room.
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Scrapyard to perform activities of
receipt, segregation and storage ofdifferent types of scraps.
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Benefits of scientific storekeeping-
Storekeeping is now realized, is as much as science
as production or marketing.
It is a key result area for management. Efficiency in
production or maintenance and distribution largely
depend on the efficiency of store department and
its personnel at the operational level. Inventory
management with its impact on the profitability of a
company relies on the efficiency with which
personnel maintain records, implement procedures
and report on performance. Benefits can be
achieved by following different ways,
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a. Scientific stock control it reduces losses due
to accumulation of inventory. b. Efficient stores issues, it reduces down time
in production and increases profit.
c. Periodic reviews it detects obsolete and
non-moving items and helps the firm to get rid ofnon-productive inventory.
d. Follow up with purchase it helps to avoid
stock outs and hence production losses.
e. Proper records keeping it provides exactpicture of inventory in store to higher
management.
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Store location is a process of selecting
the appropriate site for the store building
in the organization and deciding how
material are to be placed inside the store
so as to provide efficient and promptservice to the user department. Location
of the store must be based on the activity
relationship between store and other
departments.
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Principles of good store location
y Economy in cost of transportation location ofthe store building has a effect on the cost oftransportation. Unnecessary movements should beavoided.
y Store building should be located within the factorypremises or nearer to the workplace where materialis required.
y While selecting the place of store building, thematerial handling facilities for transportation of thematerial should be taken in account.
y Proper road and rail facilities are to be considered.Approach roads are to be considered
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Effective service
Location of the store should result inefficient service to the user department for which activityrelationship between the store and
user department must be given dueconsideration.
1. Raw material storage should benearer to the shop.
2. Finished goods store should belocated nearer to the shipping area.
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Reduced fire risks
Material should be stored in locationswhich minimizes the fire hazards
y Inflammable material like petrol shouldbe stored separately.
y Combustible material like paints, oil,grease diesel, kerosene, cotton wasteshould be kept away from each otherand from general store.
y Oxidizing agents should be kept awayfrom combustible materials.
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Security
yStoreroom should be away frommain gate premises.
Storeroom should not be located nearthe factory wall where they are likely
broken into by outsiders Main store should be placed in such
a way that suppliers representatives,drivers and others do not have easy
access.
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Minimization of risk of spoilage and
deterioration
y While selecting the suitable site for
the store, due consideration should be
given to temperature, humidity andlight requirements.
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Flexibility for future expansion
while selecting store site, futureexpansion needs must be considered.
Sufficient space should be available for
future expansion of the store
department to prevent crowding or
congestion to avoid the shift the store to
another location at a later date.
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Overall integration of factors since
it is impossible to satisfy each and everyfactor, store location should be such
that it results in overall integration of
factors.