THE EFFECT OF EFFECTIVE STORES MANAGEMENT ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF NEW VISION

ABSTRACT

 

The study was carried out at New Vision Uganda with the purpose of examining the effect of effective stores management on organizational performance.  The research objectives were (i) to examine the effect of Just in Time on the effective performance of New Vision, Uganda, (ii) to investigate the effect of inventory control on the effective performance of New Vision, Uganda and (iii) to examine the relationship between stores management and performance of New Vision, Uganda. The literature review was done basing on study objectives and a descriptive research design was used where both qualitative and quantitative approaches of data collection were adopted on 50 respondents using questionnaires. The found out that the application of just in time has made materials to arrive at the right time, holding costs have reduced, also products are produced in right amounts, waste have reduced, production costs have reduced and general storage costs have reduced since less is stored, however JIT does not totally remove the cleaning costs and has not reduced inspecting and ordering costs. The study concludes that inventory control helps in inventory planning and scheduling, inventory control reduces on operational costs since the organization ensures that only authorized personnels are allowed to make purchase in the organization, it also pays attention to the inventories whose value is high and does not experience under stock situations. The study found a strong positive relationship between Stores Management and Performance at Pearson correlation coefficient r= 0.794. This implies that Stores Management affect Performance by 79.4% and others factors by 20.6%. It was recommended that installation of a strong control and inspecting system so as to detect fraud and theft of stock, the stores should be enlarged and tidy so as to ensure maximum usage of space among others and there is need to segregate duties of receipt and recording of stock in order to reduce fraud and theft.

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1 Introduction

This chapter focuses on the background of the study, the problem of the study, research questions, scope of the study and significance of the study.

 

1.2 Background of the study

According to Miller (2010), a professionally managed store has a process and a space within, to receive the incoming materials (Receiving Bay), keep them for as long as they are not required for use (Custody) and then to move them out of stores for use (Issue). In a manufacturing firm this process forms a cycle to maintain and run the activities of Stores. The basic responsibilities of stores are to act as custodian and controlling agent for parts, supplies, and materials, and to provide service to users of those goods.

 

Typically and at times essentially, a store has to follow certain activities that are managed through use of various resources and are thus called Stores Management. The task of storekeeping relates to safe custody and preservation of the materials stocked, to their receipts, issue and accounting. The objective is to efficiently and economically provide the right materials at the time when it is required and in the condition in which it is required (Ogbo & Onekanma, 2014).

The basic job of the store manager hence is to receive the goods and act as a caretaker of the materials and issue them as and when Production demands it. Needless to say storekeeping activity does not add any value to the product. In fact it only adds to the cost. The organization has to spend money on space that is to say expenditure on land, building and roads, equipment, machinery and other facilities provided such as electricity, people (salaries and wages), insurance, maintenance costs, stationary, communication expenses and the cost to maintain the inventory among others (Ogbo & Onekanma, 2014).  All of these get added to the organizational overheads and finally get reflected in the costing of the finished product.

However, it is an essential function in any manufacturing or marketing organization. This basic reason has propelled the evolution of philosophies such as Just In Time (JIT) which is an inventory management method whose goal is to maintain just enough material in just the right place at just the right time to make first the right amount of the product (Carlson, 2002). This was pioneered by the Japanese manufacturing firms where inventory is acquired only when required in business for production process and this aimed at improving the return on investment of the business by reducing in-process inventory and its associated costs (Schonsleben, 2000).

Miller (2010) argued that in the long drawn process of preserving the materials till its use, some materials might get obsolete and unserviceable and may require removal from stores, in order to clear space for other incoming goods. Since the material has a cost, the organisation would definitely like to incur optimum cost on this account and thus there is a need to manage the materials within stores such that the total cost of maintaining materials remains optimum. Inventory control/management thus is a vitally important aspect of any stores function. One of the basic functions of stores is to account for every material received in Stores by maintaining proper records of all the incoming, stored and outgoing materials so that proper accounting and audit trail is maintained.

Organization performance refers to the effectiveness of the organization in fulfilling its purpose. Some organizations aim to trade successfully in order to return financial benefits to shareholders, while others have non-financial objectives such as service to the community. According to Richard, Devinney, Yip and Johnson (2009), organizational performance encompasses three specific areas of firm outcomes; financial performance which is concerned with profits, returns on assets, and return on investment; product market performance which centers on sales and market share; and shareholder return that involves total shareholder return and economic value added. Therefore organizational performance comprises the actual output or results of an organization as measured against its intended outputs which are its goals and objectives.

With increasing need for effective operations management, organizations now requires that costs and cost centers be well managed and controlled. Consequently stores as a cost centers must be well managed. In practice firms spend an inordinate amount of resources i.e. time and money managing and directing their suppliers to ensure that critical inventory/stock levels are maintained and the vital flow of product needs for operations continue. New Vision stores are set up to provide safe custody of its properties and goods (Ayad, 2011). New Vision ensures that there are proper stock control systems and adequate measures to prevent abuse, unauthorized disposal of serviceable stores for personal gain, misappropriation of the assets and theft (Mulondo, 2010). Thus, the study aimed at investigating the effect of effective stores management on organizational performance, a case study of New Vision.

1.3 Statement of the problem

Manufacturing firms in Uganda have sound, effective and well-coordinated stores management systems because the business environment is rapidly changing, highly competitive and this drastically affects the performance of the organization. With the application of effective store management techniques, the right materials will be available at the right time, with the minimum storage costs and investment (Mulondo, 2010).

However, New Vision has faced numerous challenges especially in stores management, thus affecting it’s performance. There have been cases of materials overstocking which eventually get expired or out dated, under stocking, lack of stock-taking, theft of materials by workers and delays in deliveries of materials into the organizations among others (Mulondo, 2010). This study aimed at examining the effect of effective stores management on organizational performance.

1.4 General objective

The overall objective of the study was to examine the effect of effective stores management on organizational performance, a case study of New Vision, Uganda.

 

1.4.1 Specific objectives

1. To examine the effect of Just in Time on the effective performance of New Vision, Uganda.
2. To investigate the effect of inventory control on the effective performance of New Vision, Uganda.
3. To examine the relationship between stores management and performance of New Vision, Uganda.

1.5 Research questions

1. What is the effect of Just in Time on the effective performance of New Vision, Uganda?
2. What is the effect of inventory control on the effective performance of New Vision, Uganda?
3. What is the relationship between stores management and performance of New Vision, Uganda?

1.6 Scope of the study

Geographical scope

The area of the study was carried out at New Vision Uganda which is one of two main national newspapers in Uganda. It is published by the New Vision Group, which has its head office on First Street, in the Industrial Area of Kampala, Uganda’s capital and largest city in that East African country.

Content scope

The study was interested in trying to understand the effect of Just in Time on the effective performance, the effect of inventory control on the effective performance and relationship between stores management and performance of New Vision, Uganda.

 

Time scope

The study considered 2012-2016 as the period of data to be considered in the organization. The study was carried out for a period of four months from May to August, 2016 and considering 2000-2016 as the period of body of knowledge to review literature.

1.7 The Significance of the study

It’s hoped that the study is important to different stakeholders that include; management, the Researcher, Suppliers, Consumers and New Vision in the following ways;

1. Other stakeholders such as customers, suppliers who need knowledge about stores management can use the Research as a reference.
2. The research will benefit the management and the workers of New Vision to know why there are challenges in their stores management system and what to do to improve stores management since the research will be conducted among them.

• The study is going to add to the existing literature regarding the impact of stores management and organizational performance.

1. The study findings will to be useful to future researchers who will be studying a similar topic as they will use it as literature review.

1.8 Conceptual framework for the study

 

Jabareen (2009) defines “Conceptual framework as a network, or “a plane,” of interlinked concepts that together provide a comprehensive understanding of a phenomenon or phenomena” The conceptual framework is a set of broad ideas used to explain the relationship between the independent variables (factors) and the dependent variables (outcome). Conceptual framework provides the link between the research title, the objectives, the study methodology and the literature review Jabareen (2009).

Figure 1: Conceptual framework for the study

Stores management v  Just-in-Time v  Inventory control v  Relationships

Independent variable                                                                        Dependent variable

 

 

 

 

 

 

 

v  Policies v  Procedures

                                                                         Moderating variable

 

 

 

 

Source: Researcher, 2014

The figure shows the linkage between stores management and organizational performance. It shows that organizational performance is related to Just-in-Time, Inventory control and Relationships. According to the figure, Just-in-Time, Inventory control and Relationships are linked to organizational performance. If they are administered effectively then organizational performance is likely to improve however, if they are poorly administered, organizational performance may decline.

The researcher also adopted some moderating variables, which may affect organizational performance; these include policies and procedures. If these variables are not controlled they may interfere with the results of the study.

 

 

 

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents related literature and it was presented in themes namely; the effect of Just in Time on the effective performance, the effect of inventory control on the effective performance and the relationship between stores management and performance.

2.1 The effect of Just in Time on the effective performance

Just in time (J.I.T), an inventory management method whose goal is to maintain just enough material in just the right place at just the right time to make first the right amount of the product (Carlson, 2002). This was pioneered by the Japanese manufacturing firms where inventory is acquired only when required in business for production process and this aimed at improving the return on investment of the business by reducing in-process inventory and its associated costs (Schonsleben, 2000). In this system, the supplier has the responsibility of delivering the components and part to the production line “Just in Time” to be assembled.

Other names for just in time system is Zero stock inventory and production (Lazaridis & Dimitrios (2005). For the just in time method to work successfully the quality of the parts must be very high because defective materials could up halt the operations of the assembly line, there must be dependable relationships and smooth co-operation with suppliers, ideally this implies that the supplier should be located near to the company with dependable transportation available (Konke, 2003). Just in time inventory management system helps in reducing inventory costs by avoiding carriages of excess inventories and mishandling of raw materials.

According to Kortz(2003),  Just in time purchasing recognizes high costs associated with holding high inventory level  and as such it has become important in most organizations to order inventory just in time of production so as to cut costs of holding inventory like storage lighting, heating, security, insurance and staffing (Dimitrios, (2008).

JIT production system is a system that enables companies to produce products in required amounts and just when demanded. By using the system, companies intend to offer products on time. If companies finish final products on time, they will be able to minimize the raw material, work-in-process and finished-goods inventories. How these reductions can be achieved may be described as follows: raw materials are purchased when needed for production, work-in-process inventories are not produced until they are needed by the coming production process, and finished products are offered to customers immediately after they are produced (Miller, 2010).

In other words, in JIT setting demand triggers each step of the production process: starting with a customer demand for a finished product at the end of the process and working all the way back to the demand for direct material at the beginning of the process (Horngren et.al., 2000). When customers order a party of products, they will not wait very long to receive their orders, because these products can be produced in a very short period of time under a JIT setting. This means that, lead-time is very short. In addition, as products are produced without any stoppage, there will be no wasted time spent for inspecting and correcting the defective products. Thus, products can be ready to deliver on time.

Application of JIT will lead to a decrease in inventories, waste reduction, employee involvement and customer satisfaction. Therefore, employing the system will cause a company to save money and increase the number of the customers. In short, use of JIT production system will eliminate waste (Horngren et.al, 2002).

A JIT production system aims at minimizing work-in-process and finished-goods inventories, reducing lead-time, and increasing product quality. In order to achieve these by implementing a JIT manufacturing system, the following aspects and steps should be put into consideration and then operation (Hilton, 2000).

Many changes brought by the JIT production system require alterations in the existing information systems and traditional accounting practices (Miller, 2010). The application of a JIT production system will change the cost structure of a firm as well as cost allocation procedures and recording system. In addition, performance measurements and reporting systems must be changed in a JIT environment. The following paragraphs describe how JIT concept may affectively be used in cost management.

Implementation of JIT in a company will lead to cost reductions in the production system. In fact, a JIT production system is very effective in eliminating mainly non value-added activities and thus, non-value added costs. The non-value-added activities are the activities such as moving materials and parts from one place to another; setting up a machine; storing materials, parts and finished goods; inspection, rework and purchasing. These activities, although consume resources, do not add value to a product produced. Therefore, the JIT production system is quite helpful in this attempt because it minimizes the non-value-added activities as explained in the following sections:

Reducing Inspection and Ordering Costs: As discussed above, the use of a JIT system requires dealing with few dependable suppliers by establishing long-lasting, reliable relationships. Because high quality in production requires close relationships with vendors to ensure that the firm receives defect-free raw materials. Working with dependable and reliable suppliers ensures the acquisition of high-quality raw materials and eliminates the need for inspection, because company can make sure that raw materials that particular supplier is providing are defect-free raw materials. In addition, as company deals with the same supplier, there is no need for a search for the best supplier, detailed paperwork, and the ordering process every time. That is why, cost of purchasing and ordering is minimized (Gibson, 2008).

According to a study conducted in Oregon Cutting Systems (a company producing chain saws, timber harvesting equipment, and sporting equipment), number of suppliers was reduced from seven to one after implementing JIT system (Gibson, 2008). Therefore, application of a JIT production system reduces the number of suppliers that company deals and the costs related to establishing relationships with these suppliers.

Minimizing Moving Activity: Machines producing similar products are grouped into production cells under a JIT setting. In these cells, machines are close to each other so that work-in-process does not need to move long distances (Hilton et.al., 2000). This decreases both the moving activity and its cost to a minimum level.

Minimizing Setup Activity: As technologically advanced machinery, —which can produce various products without requiring frequent, or no setups— is used in a JIT setting, cost of a setup will also be minimized. There is a positive relationship between the percent of operations converted to JIT and the reduction in set up time. This means that, application of JIT leads to a decrease in set up time and set up related costs such as cleaning and readjusting the machinery, etc (Gibson, 2008).

Minimizing Storing Activity: Work-in-process inventory does not pile up in front of the operators since pull method is used in a JIT production system. Also, as quality improves, work-in-process inventory buffers can be reduced. Emerging reductions in work-in-process inventory will bring the reductions in storage costs such as employee salaries and wages; rent, electricity and depreciation costs for warehouses; and in-factory transportation activity costs. In addition to reductions in work-in-process inventories, there will be reductions in finished goods inventories and similar storage costs attributed to them. Last but not the least, company that employs a JIT system will also save some resources tied up holding excessive inventories (Gibson, 2008).

Minimizing Rework Activity: As explained above, in a JIT environment there is no need to have large inventories to buffer the plant from disruptions caused by poor quality because of effective quality control programs in use. This means when an operator discovers a defective product, he pauses the process and only few parts are at risk of being scrapped. However, in case of having a large amount of work-in-process inventory, and parts from the previous operations that are determined as being defective, many more parts must be scrapped. As a result, a great amount of loss is likely to occur (Hilton, 2000).

On the other hand, when an operator reduces the number of defective units, he is able to reduce product costs since this reduction decreases the number of inspectors and employees doing rework. Also an increase in productivity is gained. It has been claimed (Hayes, 1981:63) “a 2% reduction in defects is usually accompanied by a 10% increase in productivity.”  Therefore, it can be said that rework costs and cost of lack of productivity are minimized in a JIT setting (Hilton, 2000).

2.2 The effect of inventory control on the effective performance

According to Lynch (2005), the main objective of inventory management is to minimize the total cost of relevant costs to ensure profitable operations. Because of value attributed to inventory management, two cardinal decisions must be faced if the inventory management is; how much we buy at a time? When we buy (or manufacture)?

According to Pandey (2002), in many cases where inventory management decisions have been effective, inventory planning models have been effective; inventory- planning models have been developed and implemented focusing especially on the twin problems of inventory size and timing. Usually inventory management modes are defined to achieve a balance between the costs of acquiring and holding inventory. These costs are the ones that affect organizations profitability. These models are developed in order to help management maintain inventories of optimal level that will help the organization to realize profits. To be specific, the objective of inventory management models is to maintain adequate inventory levels of minimum inventory costs. They specify the economic order quantity and re-order point and if well observed, companies earn profits (Hilton, 2000).

Economic order quality is the quality of inventory that should be ordered at once. They further noted that, the quantity of inventory ordered at once affects inventory ordering and holding costs and will ultimately have a bearing on profitability. For instance, if a few large orders are placed, annual ordering costs will be low, but annual holding costs will be high (Lynch, 2005).

Conversely, if many small orders are placed over all ordering costs will be high but annual holding costs will be low. To be profitable, it is necessary to determine it increasing the order size to obtain large volume discounts and slightly lowering costs will be more off- set at a higher holding cost. The scholars agreed that profitability would only be achieved at optimum level of relevant costs i.e. holding costs and ordering costs (Lynch, 2005)

According to Pandey (2002), this is the level of which an order for additional inventory should be placed, because inventory cannot be ordered and received instantly. Orders for additional inventories should be placed before current stocks are depleted. The re-order point must consider both the lead time required to replenish stocks after on order is placed and inventory demand during the lead time.

Hilton (2000) agreed with other scholars and further observed that, because of the variation in lead-time and the daily demand for inventory, inventories are cushions to prevent “Stock out” and the resulting loss of sales or disruption of production.

As already noted above, in a merchandising establishment, stock out costs includes the extra costs of processing back orders and opportunity cost of lost sales is frequently specified as the selling price less the invoice price, opportunity costs are considered greater if dissatisfied customers subsequently patronize other establishments. In this case, the profitability of an organization remains fragile if no proper controls are considered .greater it dissatisfied customers subsequently patronize other establishments. In this case, the profitability of an organization remains fragile if no proper controls are ensured (Hilton, 2000).

Excessive inventories are the enemy of retail profitability. For inventory management to be an effective profitability improvement tool, corporate culture must ensure that employees are empowered to make it successful (Laugero, 2002). Organizations like black and Decker fully realize the relationship between inventory production and profit. This is an international Corporation, with annual sales in excess of and 1 billion. It is the world’s largest manufacturer of power tools, and because of large required investment in inventory and the total cost associated with such, managers are alert for ways to control inventory. Gibson (2008) says that inventory management is an important area of financial control, which is often neglected not knowing that a small percentage saving on inventory costs will represent millions of shillings on natural scale. All stocks represents on investment so they should keep to an absolute minimum.

2.3 Relationship between stores management and performance

Stores management plays an important role in the growth and survival of an organization in the sense that failure to an effective and efficient management of stores, will mean that the organization will lose customers leading to poor services delivery and sale will decline. Emphasizing on the importance of stores on the balance sheet of companies. Coyle, Bardi and Langley (2003) state that “stores as an asset on the balance sheet of companies has taken an increased significance because of the strategy of many firms to reduce their investment in fixed assets, that is plants, ware houses, office buildings, equipment and machinery , and soon.

 

Virtually every enterprise finds it necessary to hold stocks (or stores) of various items and materials. That is because it would be practically impossible to operate with only one of each item to be sold or used in manufacture or used in office work. A reserve or a fund or stores of each item or material used or sold frequently is therefore maintained, so that as items or materials are sold or used they can be replaced or replenished from the stocks held in reserve. Due to uncertainty in future demand, and because of the unguaranteed availability of supplies, stock is therefore held to ensure an availability of goods to minimize the overall costs associated with the management of stock (Drury, 2000).

 

Pandey (2002) argues that precautionary motive is one of the central roles of stores management. Accordingly, precautionary motive means that stock held to guard against risk of unpredictable changes in demand and supply. In most cases, the level of demand of goods and the time required for supply cannot be known with certainty. Therefore, to ensure product availability, the organization maintains additional amount of safety stock to meet regular production and market needs. Firms should invest in stock control for precautionary motive to act as a buffer or link between demand and supply so that production can be geared to a more constant output. Precautionary motive necessitates holding of inventories to guard against the risk of unpredictable changes in demand and supply forces and other factors (Pandey, 2002)

 

According to Kenneth and Brian (2006) includes keeping stores includes the following reason:- Reduce the risk of supplier failure or uncertainty- safety and butter stocks are held to provide some protection against such as strikes, transport breakdowns due to floods or snow, crop failures, wars and similar factors. Protect against lead time uncertainties, such as where supplier’s replenishment and lead time are not known with certainty – in such case an investment in safety stocks is necessary if customer services is to maintain at acceptable levels. Meet unexpected demands or demands for customization of products as with agile production and smooth seasonal or cyclical demand.

 

Kakuru (2000) illuminates that inventories should be held to improve customer service and therefore goods should be spotted at a place where customers can get them in the quantities they wish. The transaction motive is aimed at facilitating smooth operations on daily basis. According to Pandey (2002) Transaction motive emphasizes the need to maintain inventories to facilitate smooth production and sales operation. Firms should maintain back up stores either in excess or low levels to take advantage of current and future demands or price fluctuations. They should therefore purchase goods and stock them in advance when they anticipate price increase in future and also prepare for contingencies that may befall a company, for instance, strikes, prices, goods among others (Kakuru, 2000).

 

Lucay (2003) observes that excessive levels of stock are undesirable because they increase the risks of stores becoming obsolete, stock loss through damage and theft, increased storage costs like rent, insurance and unnecessary tie up of the firm’s funds. He further state that a firm would be foregoing profits when it continues maintaining excessive levels of stores, which implies that the probability position of the firm is being threatened in the long run since funds are not being invested in other profitable ventures. Lower levels of stores are also undesirable because it interrupts production, loss of good will and high ordering costs especially when ordering is frequent. Inadequate stores levels leads to business closure due to shifting of customers to other efficient suppliers as a result of production/ operation interruptions (Gittinger 1995).

 

 

CHAPTER THREE

METHODOLOGY

3.1 Introduction

This  chapter  presents  methods  and procedures  that the researcher  used when  assessing  the findings  of the  study. It presents research design, sample population and size, data collection instruments, data type, data processing and presentation and the problems encountered during the process of data collection and limitation of the study.

3.2 Research Design

The research was designed in such a manner, which enabled the researcher to meet the objectives of the study, the researcher therefore used both qualitative and quantitative research designs, which was descriptive in nature. The descriptive aspect of the research design was used to investigate the effect of effective stores management on organizational performance.

3.3 Study population

The population of the study was 1400 staff members of New Vision Uganda comprising   of purchasing officers, store keeper, site foreman, site workers, accountant, technical manager and the general manager.

3.4 Sampling Size and selection

The sample size of 50 respondents was determined by formulae of Krejcie Morgan (1970). The researcher used purposive sampling to select the samples from the population. Here, the researcher chose the sample based on who she thought was appropriate for the study. Simple random sampling was used to limit on the biasness of purposive sampling.

Table 3.1: Sample Size

Category	Population	Sample size
Top administration	15	3
Purchasing department	115	20
Stores department	95	18
Others departments	1175	9
Total	1400	50

Human Resource, New vision, 2016

3.5 Source of data

Data was both primary and secondary. Primary data was collected by the use of questionnaires and secondary data was got from reports, journals, and internet.

3.6 Data Collection Methods and Instruments

Questionnaire

Questionnaire is a carefully designed instrument for collecting data in accordance with the specifications of research questions. This contained a form of set questions to be answered by the respondents and the researcher asked simple logic questions every respondent could comprehend fully. Self-administered semi structured questionnaire was designed to collect quantitative data. It involved both open-ended and closed ended questionnaires. This research tool was considered to be central for this study simply because it was a convenient tool whereby the respondents could chose when to answer the outlined questions without panic. Quantitative data was collected by the use of questionnaire method. A Self-administered questionnaire was designed using Likert scale, and they were distributed to staff members of New Vision who filled them within 3 days of research period.

 

3.7 Reliability and Validity

Validity refers to the degree to which a test measures what it is supposed to measure and consequently permits appropriate interpretation of scores. As suggested by (Kathari, 2003; Enon, 1998), content and construct validity was determined by expert judgment. The researcher thus used help of the supervisor who examined and confirmed content validity by checking the items’ and  content coverage, relevance, clarity of questionnaire, persistency and ambiguity.

The reliability of research instruments was ensured by the researcher throughout the study, discussing them with the supervisor when seeking expert opinion, taking great care in the choice of section, order and proper structure of questions. The researcher developed instruments that were easy to understand for instance interviews were conducted in the language that suits respondents.

 

3.8 Data processing, analysis and presentation

Quantitative data collected by the questionnaire was first coded. In the coding process, a coding sheet was constructed. A number then assigned to each answer in the questionnaire with a corresponding number on the coding sheet. Then the same questionnaire was constructed on the computer using SPSS. Frequency tables were worked out basing on the data entered. In this frequency tables analysis was done with a corresponding percentage. However a Pearson correlation coefficient was used to determine the relationship between the two variables.

3.9 Limitations and anticipated solution

Respondents were not willing to give confidential information, which was sufficient to the researcher. However, the researcher convinced them that research was intended to help them improve on their problems.

There was too much pressure as a result of limited time for the researcher. However, the researcher devoted most of the time on the research.

 

Financial constraint since research required money for printing and transport. However, the researcher minimized the costs as lowest as possible.

 

 

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.0 Introduction

This chapter contains the results and the interpretation of the sample respondents. The presentation is guided by the research objectives and the statistics were generated with the aim of generating responses for research questions. The chapter contains demographic information about the respondents and the analysis on the study objectives.

4.1 Background information on Respondents

This section of the study discusses the various socio demographic characteristics of the respondents selected for the study. The major socio demographic variables discussed included gender, age, educational level and number of years in service. The result is presented in Tables below.

Table 4.1: Gender of Respondents

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Male	31	62.0	62.0	62.0
	Female	19	38.0	38.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

A greater percentage (62.0%) of the respondents was also found to be married, while 38% of the participants were single. Males were found to be more active in participation which explains their highest number. However, both were considered since it was important to get views of women in the study.

Table 4.2: Age of Respondents

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	25-30	13	26.0	26.0	26.0
	31-36	21	42.0	42.0	68.0
	36-40	10	20.0	20.0	88.0
	Above 40	6	12.0	12.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table 4.3: Highest Level of Education

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Diploma	25	50.0	50.0	50.0
	Bachelor	23	46.0	46.0	96.0
	Postgraduate	1	2.0	2.0	98.0
	Masters	1	2.0	2.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The table above shows that most of the respondents (50.0%) were of diploma level, (46.0%) were of Bachelor level therefore, provided information based on the academic knowledge, skills and experience they have gain in management.

Table 4.4: Number of Years in Service

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	1-5years	37	74.0	74.0	74.0
	6-10years	11	22.0	22.0	96.0
	11-15years	2	4.0	4.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

According to the table above, majority of the study respondents (74%) had worked in the organization, 22% of them had worked in the organization between 6-10years and only 4% had been worked there between 11-15years. This implies that provided information was based on experience.

 

 

 

4.2 The effect of Just in Time on the effective performance of New Vision, Uganda

Respondents were asked to show their level of agreement on the effect of just in time on the effective performance of New Vision. The results were obtained and are presented below;

Table 4.5: Materials arrive at the right time

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	1	2.0	2.0	2.0
	Disagree	2	4.0	4.0	6.0
	Not Sure	2	4.0	4.0	10.0
	Agree	22	44.0	44.0	54.0
	Strongly Agree	23	46.0	46.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table above show that majority of study respondents (46%) strongly agree with materials arrive at the right time, 44% of them agree while 4% of them were not sure. This implies that at the organization materials needed for production always arrive at the right time.

 

Table 4.6: Holding costs have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	1	2.0	2.0	2.0
	Disagree	1	2.0	2.0	4.0
	Not Sure	2	4.0	4.0	8.0
	Agree	29	58.0	58.0	66.0
	Strongly Agree	17	34.0	34.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Findings also indicate that majority of the respondents (58%) agree with holding costs have reduced, 34% of the study respondents strongly agreed, 4% of the respondents were not sure. This implies that just in time is effectively utilized and it has led to effectiveness in organization’s operations.

 

 

 

 

Table 4.7: Products are produced in right amounts

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	5	10.0	10.0	10.0
	Disagree	9	18.0	18.0	28.0
	Not Sure	11	22.0	22.0	50.0
	Agree	11	22.0	22.0	72.0
	Strongly Agree	14	28.0	28.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table 4.7 show that majority of the study respondents (28%) strongly agreed with products are produced in right amounts, while 22% of them agreed, a significant percentage (22%) were not sure implying that as a result of just in time, the organization produces in right amounts.

 

Table 4.8: Waste have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	11	22.0	22.0	22.0
	Disagree	4	8.0	8.0	30.0
	Not Sure	8	16.0	16.0	46.0
	Agree	25	50.0	50.0	96.0
	Strongly Agree	2	4.0	4.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The study findings as indicated in the table above indicate that majority of the respondents (50%) agree with waste have reduced, while 22% of them strongly disagreed, 16% of the respondents were not sure, 8% of them disagree and only 4% strongly agree. However, most of the response was positive implying that as a result of the application of Just In Time in the operation of New Vision, has waste have been registered.

 

 

 

 

 

 

Table 4.9: Production costs have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	12	24.0	24.0	24.0
	Disagree	9	18.0	18.0	42.0
	Not Sure	7	14.0	14.0	56.0
	Agree	16	32.0	32.0	88.0
	Strongly Agree	6	12.0	12.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The study findings as indicated in the table above, majority of the respondents (32%) agree with production costs have reduced since the application of JIT, 24% of the respondents strongly disagreed, 14% of the respondents were not sure and 18% of them disagreed, only 12% of the respondents strongly agreed. However, from the results most of the respondents (44%) of the study respondents were on a positive side implying that Just in Time has reduced production costs though (42%) of the respondents disagreed implying that production have not generally reduced. However, a small cost has reduced.

 

Table 4.10: Inspecting and ordering costs have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	10	20.0	20.0	20.0
	Disagree	15	30.0	30.0	50.0
	Not Sure	6	12.0	12.0	62.0
	Agree	13	26.0	26.0	88.0
	Strongly Agree	6	12.0	12.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

According to the table above, most of the respondents (30%) of the respondents disagreed, 20% of them strongly disagree, 26% of them agree, 12% of the respondents strongly agree and only 12% of them were not sure. This implies that the application of JIT has not reduced inspecting and ordering costs since 50% of the respondents were not in agreement with the statement.

 

 

 

Table 4.11: Cleaning costs have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	13	26.0	26.0	26.0
	Disagree	13	26.0	26.0	52.0
	Not Sure	8	16.0	16.0	68.0
	Agree	11	22.0	22.0	90.0
	Strongly Agree	5	10.0	10.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table above indicate that 26% of the respondents strongly agree with cleaning costs have reduced, a significant percentage (26%) of the respondents also disagreed, 22% of the respondents agreed, 16% of the respondents were not sure and only 10% of them strongly agree. This implies that the application does not totally remove the cleaning costs, though it reduces them as agreed upon by 32% of the respondents.

 

Table 4.12: General storage costs have reduced

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	6	12.0	12.0	12.0
	Disagree	10	20.0	20.0	32.0
	Not Sure	8	16.0	16.0	48.0
	Agree	20	40.0	40.0	88.0
	Strongly Agree	6	12.0	12.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The table 4.12 indicates that, most of the respondents (40%) of them strongly agree, 20% of them disagree, 16% of the study respondents were not sure, 12% of them strongly agree. This implies that the application of JIT has reduced general storage costs since less is stored. However, the respondents indicated that the less that is stored increases storage costs.

 

 

 

 

 

 

4.3 The Effect of Inventory Control on the Effective Performance

The study sought to assess the effect of inventory control on the effective performance of the organization. Respondents were required to indicate their level of agreement on effect of inventory control on the effective performance. Results were obtained and are presented in the table below;

 

Table 4.13: Inventory control helps in inventory planning and scheduling

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	2	4.0	4.0	4.0
	Disagree	3	6.0	6.0	10.0
	Not Sure	4	8.0	8.0	18.0
	Agree	13	26.0	26.0	44.0
	Strongly Agree	28	56.0	56.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Respondents (56%) strongly agree with inventory control helps in inventory planning and scheduling, 26% of them agree, 8% of them were not sure and only 6% of them disagree. This implies controlling inventory in the organization helps in proper inventory planning and scheduling thus effective performance of the organization.

 

Table 4.14: All store staffs are highly skilled

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	1	2.0	2.0	2.0
	Disagree	2	4.0	4.0	6.0
	Not Sure	4	8.0	8.0	14.0
	Agree	16	32.0	32.0	46.0
	Strongly Agree	27	54.0	54.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The table above shows that most of the respondents (54%) strongly agree with all store staffs is highly skilled, 32% of them agree while only 8% of them were not sure. This implies that in the effort of inventory control, the organization has recruited skilled staff.

 

Table 4.15: Cost reduction is a result of inventory management practices

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Disagree	6	12.0	12.0	12.0
	Not Sure	8	16.0	16.0	28.0
	Agree	19	38.0	38.0	66.0
	Strongly Agree	17	34.0	34.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The table above shows that majority of the study respondents (38%) agree, 34% of them strongly agree, while 16% of them were not sure. This implies inventory control reduces on operational costs.

 

Table 4.16: A responsible official authorizes purchase

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	2	4.0	4.0	4.0
	Disagree	6	12.0	12.0	16.0
	Not Sure	7	14.0	14.0	30.0
	Agree	18	36.0	36.0	66.0
	Strongly Agree	17	34.0	34.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

According to the table above, most of the respondents (36%) agree, 34% of them strongly agree, 14% of them were not sure. This implies the organization makes sure that only authorized personnels are allowed to make purchase in the organization.

 

Table 4.17: Maximum attention is paid to inventories whose value is highest

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	1	2.0	2.0	2.0
	Disagree	1	2.0	2.0	4.0
	Not Sure	12	24.0	24.0	28.0
	Agree	22	44.0	44.0	72.0
	Strongly Agree	14	28.0	28.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Study findings in the table above indicate that 44% of the respondents agree. 28% of them strongly agree, while 24% of the respondents were not sure. This implies that the organization pays attention to the inventories whose value is high.

Table 4.18: The organization experiences under stocks situations

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	4	8.0	8.0	8.0
	Disagree	24	48.0	48.0	56.0
	Not Sure	11	22.0	22.0	78.0
	Agree	6	12.0	48.0	90.0
	Strongly Agree	5	10.0	10.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table above shows that most of the respondents (48%) disagree, 22% of them were not sure, 12% of them disagree, 10% of them strongly agree and only 8% of the respondents strongly disagree with the organization experiences under stock situations

 

Table 4.19: The Company gets damaged goods from its stored

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	4	8.0	8.0	8.0
	Disagree	7	14.0	14.0	22.0
	Not Sure	6	12.0	12.0	34.0
	Agree	19	38.0	38.0	72.0
	Strongly Agree	14	28.0	28.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

According to the table above, majority of the respondents (38%) agree, 28% of the them strongly agree with the company gets damaged goods from its stored, 14% of the respondents disagree. This implies that despite the application inventory control mechanisms in the organization, damaged goods are still got, some of which are unavoidable.

 

 

 

 4.4 The Relationship between Stores Management and Performance

The study sought to examine the relationship between stores management and performance. Respondents were required to show their level of agreement on the relationship of the valuables and the results were obtained and are presented below;

 

Table 4.20: The performance is as a result of a responsible official who authorizes purchase

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	2	4.0	4.0	4.0
	Disagree	6	12.0	12.0	16.0
	Not Sure	4	8.0	8.0	24.0
	Agree	19	38.0	38.0	62.0
	Strongly Agree	19	38.0	38.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

The table above shows that, majority of the respondents (38%) strongly agree with a significant percentage of (38%) who agree, 12% of them disagree. This implies that the organization has recruited an experienced purchasing officer who authorizes purchases thus, he knows the right products to buy, the organization therefore does not have to make losses on wastes of trial and error.

 

Table 4.21: The performance is as a result of the skills of store staffs

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	2	4.0	4.0	4.0
	Disagree	11	22.0	22.0	26.0
	Not Sure	9	18.0	18.0	44.0
	Agree	12	24.0	24.0	68.0
	Strongly Agree	16	32.0	32.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table also indicate that, most of the respondents (32%) strongly agree, 24% of them agree however 22% of the respondents disagree, 18% of the respondents were not sure. This implies that New Vision has a skilled, experienced in all areas where critical operations are found.

Table 4.22: The performance of New Vision is as a result of maximum attention paid to those inventories whose value is highest

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	5	10.0	10.0	10.0
	Disagree	3	6.0	6.0	16.0
	Not Sure	13	26.0	26.0	42.0
	Agree	20	40.0	40.0	82.0
	Strongly Agree	9	18.0	18.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table 4.22 indicate that most of the respondents (40%) agree, 26% of them were not sure, 18% of the respondents strongly agree with the performance of new vision is as a result of maximum attention paid to those inventories whose value is highest. This implies that critical areas in the supply chain are highest given great attention.

 

Table 4.23: The performance of New Vision is as a result of limited damaged goods from its store

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Disagree	4	8.0	8.0	8.0
	Not Sure	11	22.0	22.0	30.0
	Agree	18	36.0	36.0	66.0
	Strongly Agree	17	34.0	34.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

According to the table, most of the respondents (36%) agree, 34% of them strongly agree, 22% of them were not sure, 8% of the respondents disagree with the performance of new vision is as a result of limited damaged goods from its store. This implies that stores management practices that New Vision employs are vital in the reduction of damaged goods. When the level of damaged products reduces, the organization is able to register a high profit.

 

 

Table 2.24: As a result of Goods inspected on receipt, the performance of New Vision has improved

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Strongly Disagree	7	14.0	14.0	14.0
	Disagree	11	22.0	22.0	36.0
	Not Sure	9	18.0	18.0	54.0
	Agree	7	14.0	14.0	68.0
	Strongly Agree	16	32.0	32.0	100.0
	Total	50	100.0	100.0

Source: Primary Data

Table above show that, majority of the respondents (32%), 22% of them disagree, 18% of the respondents were not sure and 14% of them agree. Most of the respondents had a positive response thus; New Vision inspects goods on receipt to ensure that there are no damaged products, minimal errors, they are in right amounts.

 

The researcher went on to determine the strength of the relationship using Pearson’s correlation coefficient.

Table 4.25: Relationship between Stores Management and Performance using Pearson’s correlation coefficient

Correlations
		Stores Management	Performance
Stores Management	Pearson Correlation	1	.794*
	Sig. (2-tailed)		.000
	N	40	40
Performance	Pearson Correlation	.794*	1
	Sig. (2-tailed)	.000
	N	40	40
*. Correlation is significant at the 0.01 level (2-tailed).

 

 

From the table above, findings indicated that there is a strong positive relationship between Stores Management and Performance at Pearson correlation coefficient r= 0.794. This implies that Stores Management affect Performance by 79.4% and others factors by 20.6%.

 

 

CHAPTER FIVE

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

The data was analyzed using description and percentages. This chapter therefore presents the discussion of the study in sub-sections on the basis of the specific objectives set to achieve as analyzed in chapter four, the conclusion, and recommendations.

 

5.1 Discussion

5.1.1 The effect of Just in Time on the effective performance of New Vision, Uganda

Study findings revealed that majority of study respondents (46%) strongly agree with materials arrive at the right time, 44% of them agree while 4% of them were not sure. This implies that at the organization materials needed for production always arrive at the right time. Findings also indicate that majority of the respondents (58%) agree with holding costs have reduced, 34% of the study respondents strongly agreed, 4% of the respondents were not sure. This implies that just in time is effectively utilized and it has led to effectiveness in organization’s operations. The findings sideline with Kortz (2003) who noted that Just in time purchasing recognizes high costs associated with holding high inventory level  and as such it has become important in most organizations to order inventory just in time of production so as to cut costs of holding inventory like storage lighting, heating, security, insurance and staffing.

Also table 4.7 show that majority of the study respondents (28%) strongly agreed with products are produced in right amounts, while 22% of them agreed, a significant percentage (22%) were not sure implying that as a result of just in time, the organization produces in right amounts. The study findings as indicated in the table 4.8 indicate that majority of the respondents (50%) agree with waste have reduced, while 22% of them strongly disagreed, 16% of the respondents were not sure, 8% of them disagree and only 4% strongly agree. However, most of the response was positive implying that as a result of the application of Just In Time in the operation of New Vision, has waste have been registered. The findings are in agreement with Horngren et.al (2002) who stated that application of JIT will lead to a decrease in inventories, waste reduction, employee involvement and customer satisfaction. Therefore, employing the system will cause a company to save money and increase the number of the customers. In short, use of JIT production system will eliminate waste.

The study findings as indicated in the table 4.9, majority of the respondents (32%) agree with production costs have reduced since the application of JIT, 24% of the respondents strongly disagreed, 14% of the respondents were not sure and 18% of them disagreed, only 12% of the respondents strongly agreed. However, from the results most of the respondents (44%) of the study respondents were on a positive side implying that Just in Time has reduced production costs though (42%) of the respondents disagreed implying that production have not generally reduced. However, a small cost has reduced. According to the table 4.10, most of the respondents (30%) of the respondents disagreed, 20% of them strongly disagree, 26% of them agree, 12% of the respondents strongly agree and only 12% of them were not sure. This implies that the application of JIT has not reduced inspecting and ordering costs since 50% of the respondents were not in agreement with the statement. Table 4.11 indicate that 26% of the respondents strongly agree with cleaning costs have reduced, a significant percentage (26%) of the respondents also disagreed, 22% of the respondents agreed, 16% of the respondents were not sure and only 10% of them strongly agree. This implies that the application does not totally remove the cleaning costs, though it reduces them as agreed upon by 32% of the respondents.  The table 4.12 indicates that, most of the respondents (40%) of them strongly agree, 20% of them disagree, 16% of the study respondents were not sure, 12% of them strongly agree. This implies that the application of JIT has reduced general storage costs since less is stored. However, the respondents indicated that the less that is stored increases storage costs. Study findings are in line with Gibson (2008), reducing inspection and ordering costs: the use of a JIT system requires dealing with few dependable suppliers by establishing long-lasting, reliable relationships. Because high quality in production requires close relationships with vendors to ensure that the firm receives defect-free raw materials. Working with dependable and reliable suppliers ensures the acquisition of high-quality raw materials and eliminates the need for inspection, because company can make sure that raw materials that particular supplier is providing are defect-free raw materials. In addition, as company deals with the same supplier, there is no need for a search for the best supplier, detailed paperwork, and the ordering process every time. That is why; cost of purchasing and ordering is minimized.

5.1.2 The Effect of Inventory Control on the Effective Performance

Study findings revealed that inventory control helps in inventory planning and scheduling (82%), all store staffs is highly skilled (86%), inventory control reduces on operational costs (72%). The organization makes sure that only authorized personnels are allowed to make purchase in the organization (70%). The organization pays attention to the inventories whose value is high (72%). It does not experience under stock situations (56%). Despite the effective inventory control there are also damaged goods from its stored (66%). The study findings are in line with Pandey (2002) who noted that this is the level of which an order for additional inventory should be placed, because inventory cannot be ordered and received instantly. Orders for additional inventories should be placed before current stocks are depleted. The re-order point must consider both the lead time required to replenish stocks after on order is placed and inventory demand during the lead time.  Also Lynch (2005) argued that the main objective of inventory management is to minimize the total cost of relevant costs to ensure profitable operations. Because of value attributed to inventory management, two cardinal decisions must be faced if the inventory management is; how much we buy at a time? When we buy (or manufacture)? And Hilton (2000) who agreed with other scholars and further observed that, because of the variation in lead-time and the daily demand for inventory, inventories are cushions to prevent “Stock out” and the resulting loss of sales or disruption of production.

 

5.1.3 The Relationship between Stores Management and Performance

The organization has recruited an experienced purchasing officer who authorizes purchases thus, he knows the right products to buy, and the organization therefore does not have to make losses on wastes of trial and error (76%). The performance of new vision is as a result of maximum attention paid to those inventories whose value is highest (58%). Stores management practices that New Vision employs are vital in the reduction of damaged goods (70%). When the level of damaged products reduces, the organization is able to register a high profit. New Vision inspects goods on receipt to ensure that there are no damaged products, minimal errors, they are in right amounts. Findings are consistent with Coyle, Bardi and Langley (2003) who noted that stores management plays an important role in the growth and survival of an organization in the sense that failure to an effective and efficient management of stores, will mean that the organization will lose customers leading to poor services delivery and sale will decline. Emphasizing on the importance of stores on the balance sheet of companies. Stores as an asset on the balance sheet of companies has taken an increased significance because of the strategy of many firms to reduce their investment in fixed assets, that is plants, ware houses, office buildings, equipment and machinery , and soon.

5.2 Conclusion

 

The study concludes that the application of just in time has made materials to arrive at the right time, holding costs have reduced, also products are produced in right amounts, waste have reduced, production costs have reduced and general storage costs have reduced since less is stored, however JIT does not totally remove the cleaning costs and has not reduced inspecting and ordering costs. The study also concludes that inventory control helps in inventory planning and scheduling, inventory control reduces on operational costs since the organization ensures that only authorized personnels are allowed to make purchase in the organization, it also pays attention to the inventories whose value is high and does not experience under stock situations. The study found a strong positive relationship between Stores Management and Performance at Pearson correlation coefficient r= 0.794. This implies that Stores Management affect Performance by 79.4% and others factors by 20.6%.

 

5.3 Recommendations

New Vision should put a lot of efforts in the following; verification and tendering to ensure that the organization gets reliable suppliers.

Installation of a strong control and inspecting system so as to detect fraud and theft of stock

The stores should be enlarged and tidy so as to ensure maximum usage of space among others.

There is need to segregate duties of receipt and recording of stock in order to reduce fraud and theft.

Supplier’s delivery date and time should be fixed for organization’s suppliers. They should also be aware of the days and time during which they are expected to make deliveries and when facilities will be available to accept such deliveries. This will curb the system of suppliers delivering materials at will, reduce the burden of store officers and avoid unnecessary delays, stock out and costs.

Employees other than stores officers should not be allowed into the stores unless it is strictly on business. The habit of employees using the store area for their lunch break should be discouraged by organizations.

To avoid duplication of records due to price variance, the FIFO (first in first out) and LIFO (last in first out) system of issues should be adopted. This will ensure the elimination of the need to open several cards for single items because of price variation.

All receipt and issues should be numbered serially and recorded with duplicates and distribution to appropriate section of the organization.

For easy identification of materials in the stores and to reduce fatigue, appropriate coding system should be employed. This can be done by using letters, figures or a combination of both. The system could be based upon the nature of the stores items, the purpose for which items are bought, or on any other basis regarded as suitable for the business.

There is need for organization to easy out effective inventory management for it ensures reliability. Holding inventory helps organization to ensure reliable delivery to customers, no matter what happens.

5.4 Areas of Further Research

Further research should be done in the areas of;

The role of record management towards proper inventory management

The Importance of inventory management practices on the performance of large organizations.

The importance of inventory control systems on the performance of organizations

 

 

 

 

 

 

 

 

 

 

REFERENCES

Ayad .K. Ali. (2011)Inventory Management in Pharmacy Practice; A Review of literature. Archives of pharmacy practice.

Coyle.J.J, Bardi.E.J, & Langley. C .Jr, (2003) The Management of Business Logistics: A Supply Chain Perspective (7th ed.).Manson South –Western.

Dimitrios, P. (2008). The effect of inventory management on firm performance, International Journal of Productivity and Performance Management, 57 (5).

Drury Colin, (2000) Management and cost accounting 5^th edition, Thompson learning

Gibson, S. (2008). Round table on Economic Growth and Social Justice.  Advertising Council Inc. New York.

Harrisson, F. (2000). Supply chain management workbook, Butterworth/ Heinemann, Great Britain.

Horngren, C.T.; Foster, G; and Datar, S.M. (2000) Cost Accounting. 10^th edition, Prentice Hall.

Jabareen.Y. (2009) “Building a Conceptual Framework: Philosophy, Definitions, and Procedure”. International Journal of Qualitative Methods 2009, 8(4).

Konke, K. (2003). Management of Finance Company, Sixth Edition, International Thomson Business Press, London.

Kortz N.K (2003). Purchasing and Material Management, 1st Edition, Heinemann Educational Publishers Limited, Oxford.

Laugero, J. (2002). Financial Management and Policy, Eleventh Edition. Prentice Hall Lin A Simon and Schuster Company, U.S.A.

Lazaridis, I., and Dimitrios, T. (2005). The relationship between working capital management and profitability of listed companies in the Athens Stock Exchange, Retrieved from http://ssrn.com/ on July 2013.

Lynch, K. (2005), Frontiers of Development Economics. IBRD Washington D.C

Miller, R. (2010). Inventors Control: Theory and Practice. New Jersey: Prentice Hall.

Ogbo, A. I & Onekanma I.V. (2014) “The Impact of Effective Inventory Control Management on Organizational Performance”: Mediterranean Journal of Social Sciences, MCSER Publishing, Rome-Italy, Vol. 5 No 10 June 2014

Ogbo, A.I. (2011)”Production and Operations Management”. Enugu: De-verge Agencies Ltd.

Pandey,  M. (2002).  Financial Management (8^th Ed). New Delhi publishers

Schonsleben, P. (2000). Integral logistics Management, planning & control of comprehensive Business processes, The St-Lucie Press/AIPCS Series.

 

 

 

 

 

 

 

APPENDICES

APPENDIX I: QUESTIONNAIRE FOR THE COMPANY WORKERS

I am a 3^rd year student pursuing a Bachelor of Procurement Logistics and Management at Kyambogo University carry out a study on the “Effect of effective stores management on organizational performance”, a case study of New Vision. Your feedback is very important as your inputs will be used for academic purposes only. I greatly appreciate if you could take a few minutes to provide me with information. Your response will be kept confidential and it will not be divulged to any person or institution outside this corporation.

 

Yours faithfully

 

Masibo Sharon

 

SECTION A: BIOGRAPHIC DATA

(N.B Answer by Ticking where applicable)

1. Gender

(1). Female                                                             (2). Male

 

2. Age in years

(1) 25-30                                                                   (2) 31-36

(3) 36-40                                                                   (4) Above 40

 

3. Education Level

(1) Diploma                                                             (2) Bachelor

(3)  Postgraduate                                                      (4) Masters

4. Number of years in Service
5. 1-5years
6. 6-10years
7. 11-15years
8. Above 15years

 

 

SECTION B: THE EFFECT OF JUST IN TIME ON THE EFFECTIVE PERFORMANCE OF AN ORGANIZATION

In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D). SD=1, D=2, NS=3, A=4, SA=5

Statement	1	2	3	4	5
Materials arrive at the right time
Holding costs have reduced
Products are produced in right amounts
Waste have reduced
Production costs have reduced
Numbers of suppliers have reduced
Inspecting and ordering costs have reduced
Cleaning costs have reduced
General storage costs have reduced

 

 

SECTION C: THE EFFECT OF INVENTORY CONTROL ON THE EFFECTIVE PERFORMANCE

In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D). SD=1, D=2, NS=3, A=4, SA=5

Statement	1	2	3	4	5
Inventory control helps in inventory planning and scheduling
All store staffs are highly skilled
Cost reduction is a result of inventory management practices
A responsible official authorizes purchase
Maximum attention is paid to inventories whose value is highest
The organization experiences under stocks situations
The company gets damaged goods from its stored

 

 

 

 

 

SECTION D: THE RELATIONSHIP BETWEEN STORES MANAGEMENT AND PERFORMANCE

In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D). SD=1, D=2, NS=3, A=4, SA=5

Statement	1	2	3	4	5
The performance is as a result of a responsible official who authorizes purchase
The performance is as a result of the skills of store staffs
The performance of New Vision is as a result of maximum attention paid to those inventories whose value is highest
The performance of New Vision is as a result of limited damaged goods from its store
As a result of Goods inspected on receipt, the performance of New Vision has improved

 

 

 

THANK YOU FOR YOUR TIME