Stores Bmcc

8/9/2019 Stores Bmcc

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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.

Stores Bmcc

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