CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Nigerian Breweries Plc. incorporated in 1946 is the pioneer and largest

brewing company in Nigeria. Its first bottle of beer STAR Lager rolled off the

bottling lines of its Lagos Brewery in June 1949. Other breweries were

subsequently commissioned by the company including Aba Brewery in 1957

Kaduna Brewery in 1963 and Ibadan Brewery in 1982. In September 1993 the

company acquired its fifth brewery in Enugu state and in October 2003 its

sixth brewery sited at Ama in Enugu. Ama Brewery is the largest brewery in

Nigeria and one of the most modern worldwide. Operations at Enugu brewery

were discontinued in 2004 leaving the company with five operational breweries.

The company has a portfolio of high-quality brands including Star Lager Beer

(launched in 1949); Gulder Lager Beer (1970); Maltina (1976); Legend Extra

Stout (1992); and Amstel Malta (1994). The company also re-launched

Heineken Lager into the Nigerian market in June 1998.

Justifiably the company has the problem of keeping adequate record of goods

transfer and since it is done manually associated problems of insecurity high

cost of operation and delay in supply arise. Data processing in Nigerian

Breweries PLC is presently carried out using people pens and paper to control

stock and inventory therefore I decided to embark on this project to design

automated inventory control system software that will help eradicate these ugly

measures

An inventory control system contains a list of orders to be filled and then

prompts workers to pick the necessary items and provides them with packaging

and shipping information. Inventory control may be used to automate a sales

order fulfilment process and also manage in and outward material of hardware.

Automation is the replacement of human workers by technology. For optimal

sales and inventory management process robust functionality is needed for

managing logistics facilities. Warehouse management functions for inventory

control cover internal warehouse movements and storage and its support helps

in the recording and tracking of materials on basis of both quantity and value.

This application takes care of all supply orders reducing cost for warehousing

transportation while improving customer service. It significantly improves

inventory turns optimizes flow of goods and shortens routes within warehouse

and distribution centres. It also improves cash flow visibility and decision

making providing efficient execution of tasks using this fast and reliable

computerised method.

The design and development of an automated inventory control system for the

Nigerian Breweries PLC will no doubt bring immeasurable relief from the

problems associated with the manual system.

1.2 STATEMENT OF THE PROBLEMS

The Nigerian Breweries PLC is to an extent manually operated and reveals a

number of problems.

 The recording of sales and cash received are done manually on a book

that appears rough. Thus the books are exposed to physical damage

information can be lost and dust particles are accumulated.

 The long list of supply orders waiting to be attended to on daily basis.

 The control system is time consuming less accurate and less efficient

and the environment is not user friendly.

 Inaccuracies often ensue from human error.

The manual system is quite tedious and can be reduced or eliminated with the

introduction of the proposed system.

1.3 AIMS/OBJECTIVES OF THE PROJECT

The purpose of this study is to improve current operational process in the

Nigerian Breweries PLC to its full capacity by developing efficient computer

software that can handle inventory in a computerised fashion.

1.4 JUSTIFICATION FOR THE PROJECT

This study is primarily aimed at increasing efficiency in operations reducing

maintenance and running cost monitoring the supply of goods and its

distribution and increase profit in the Nigerian Breweries PLC by introducing

an automated inventory control system.

The new system will among other things help to;

 Maintain accuracy in database handling.

 Improve flexibility.

 Increase efficiency and reliability of the system.

 Provide a user friendly interface.

 Save time manpower and paperwork.

These no doubt will possibly affect the quality of services rendered to

customers.

1.5 OBJECTIVES OF THE PROJECT

The main objective of this study is to develop a computerised inventory control

management system. Others include;

i. To provide total asset visibility.

ii. To allow reduced inventory stocking levels giving full inventory history.

iii. To reduce lead time shelf space and errors due to damage fatigue of

staff and overall cost of operations.

iv. To facilitate “just in time” deliveries.

v. To provide full process control for products.

vi. To provide higher level security as the system would be passworded to

prevent unauthorised access.

vii. To shorten cross docking time and speeds up sort/pick up rate.

viii. To help the management plan monitor optimize resources and ascertain

their financial position at any time.

1.6 SCOPE OF THE PROJECT

The scope of the project covers the development of a computer based database

application for use by the three sections (Automation – Packaging Utilities and

Brewhouse) at the Ama brewery to replace their old paper notebook recording

system.

The requirements include designing a user interface for the application and

providing options for a user to log into the application by supplying the correct

username and password combination; register new customers and view a list of

already registered customers; to keep track of stock going out and coming into

the company’s warehouse; view users registered on the database; create delete

or edit the information for a user etc. It also covers writing the background

programming to ensure that the interface works with the database through the

underlying codes to perform the required actions. If also involves the testing

improvement and optimization of the application.

1.7 DEFINITION OF BASIC CONCEPTS

Automation: This is the use of technology or computers to control and process

data reducing the need for human intervention.

Database: This refers to a large store of related data on a computer that a user

can access and modify.

Password: This is a secret code that must be entered into a computer to enable

access to its applications. It is made up of numbers letters special characters or

a combination of any of the above categories.

Inventory Control System: A list of orders to be filled and prompts workers

to pick the necessary items and provides them with packaging and shipping

information.

Computerization: This is the conversion of a manually operated system to a

controlled organized and automated system.

Research: A careful study of a subject to discover facts establish a theory or

develop a plan of action based on the facts discovered.

System: A set of computer components functioning together.

Technology: The study of techniques of mobilizing resources such as

information for accomplishing objectives that benefit man and his environment.

Software: A computer program or set of instructions that direct a computer to

perform processing functions.

Information System: A collection of procedures people instructions and

equipments to produce information in a useful form.

Processing: This is dealing with something according to an established

procedure.

1.8 Project Report Organization

This report is organized into five chapters. The first chapter takes care of

introduction: background aims and objectives justification and scope of the

project.