Developing a Coding and Location Systems in a Store House

Topics: Sampling, Sample, Stratified sampling Pages: 41 (11571 words) Published: April 26, 2013
CHAPTER ONE INTRODUCTION 1.1 Preamble As part of the requirements for the award of the Higher National Diploma, H.N.D, each student is required to prepare a Project Work in his or her chosen field of study. The study must be original and must be the results of independent work of the student. In the light of this, the student has chosen to write on the topic: Developing a coding and location system; a case study of St Michael’s Catholic Hospital. 1.2 Research Background In a typical store house, there is the need for pragmatic and strategic considerations to be taken with regards to the development of a coding and location system. These two functions play a very important role as far as stores operations are concerned. 1.2.1 Definition of Coding According to Carter, and Price (1993), coding is a “system developed that can identify and classify the range of items held in stock, quickly, and effectively”¹. On the other hand, Baily (1963) defines coding as a “short description, combining complexity of references with brevity of codeword, thus saving time in processing transactions and saving space in records”². On his part, Westering Gosta (1984) defines coding as “the procedure for allocating symbolic identification marks to different items to simplify their definition and retrieval”³. 1. 2. 3. R.J. Carter and P.M Price; integrated materials management: pitman publishing, 1993, page 92 P.J Baily; purchasing &supply management; Chapman publications, 1963, page 102 Westering Gosta; international procurement: I. T.C publishing, 1984, page 93



Definition of Location Systems

Wingate et al (1975), defined location system as “the proper arrangement of stock items in the store house to accomplish either; to aid the sale of goods, to allow new sales persons and also customers to learn the location of stock and to obtain the required goods quickly and to facilitate the control of stock”4 In a related development, the rationale of a store house location system is to assist stores staff to quickly identify the location of the items 1.2.3 Benefits of coding and location systems The benefits of coding and location systems are enormous and include; assist stores personnel to quickly identify and locate items in the store house. The identification code gives a description of what the item is, while the location code shows where the item can be found within the store. They also enhance the flow of work within the store house. 1.3. Statement of the Problem

While on attachment with St. Michael’s Catholic Hospital, the researcher observed that the systems in place with regards to coding and location was not the best. Delays in making issues to user departments, difficulty in identifying and locating stock items, lack of stock vocabulary among others were some of the problems observed, which always result in heavy traffic when it comes to issues of materials to user departments especially peak times of the week. In the light of this, the researcher saw it fit to throw more light on the subject (developing a

4. John Wingate and Harland E. Samson: Retail Merchandising; south-western publications; 1975; page 296


coding and locating system which can help the organization to improve upon its performances and thereby increase productivity. 1.4. Objective of the Study

Upon the completion of this research work, the researcher seeks to achieve the following objectives:   To improve the understanding of the subject; developing a coding and locating system. To highlight the importance or significance of properly developing a coding and locating system.  To create awareness of the consequences involved if this concept; developing a coding and locating system, is not properly developed and implemented.  To reckon the benefits of developing a coding and locating system within the store house; and,  To make recommendations to the management of St Michael’s Catholic Hospital so as to improve on their operations with...
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