store and store keeping

7/27/2019 Store and Store Keeping

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Presented By:-GROUP 2 Priya Chandran (38)

Fathimathul Hasna Ali E.V (14) Mohamed Jaseem V K (26)

Abdul Muhsin (2)

Shafin (50)


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STORES AND STORES

KEEPING


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STORE KEEPINGA store refers to raw materials, work-in-progress and

finished goods remaining in stock.

The store is a service department headed by a store-

keeper who is responsible for a proper storage,protection and issue of all kinds of materials.

Store-keeping means the activities relating topurchasing, issuing, protecting, storing and recording

of the materials. Store-keeping includes the receipts and issues of

materials, their recording, movements in and out ofthe store and safeguarding of materials.


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STORE KEEPING Storekeeping may be defined as a function of

receiving, storing of raw materials, tools sparesconsumables etc...

It is serving facility, inside an organization, responsiblefor proper storage of the material and then issuing it torespective departments on proper requisition.

Afford and Beatty describes store keeping as thataspect of material control concerned with the physicalstorage ofgoods


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Categories of StoresStores are generally of the following categories: Raw material or consumable materials stores. Inflammable materials stores like petrol, diesel,

kerosene, oil coke etc.. Tools stores. Chemical stores like sulphuric acid, carbide etc.. Furniture.

Stationery stores. Unserviceable material stores.


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CNTN Foundry stores.

Electrical goods stores.

Scrap. Finished goods store.

Empties and package stores etc..

Finished products ready for sale are generallycalled stock and the place where they are kept (untilthey are sold) is called STOCK ROOM.


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OBJECTIVES OF STORE-KEEPING Easy location of the items in store.

Proper identification of items.

Speedy issue of material. Efficient utilization of space.

Reduction in need of material handling equipment.

To avoid over and under-stocking of materials.

To maintain systematic record of materials.

To protect materials from losses and damages.

To minimize the storage cost of materials.


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DUTIES OF STORE-KEEPER Systematic planning of stores.

To maintain record of materials neat and clean.

To maintain record of materials along with their costs. To ensure that the materials are issued against

authorized requisition only.

To keep up-to-date record of materials issued, received

and balance in stock.


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To plan and execute the stock checking activities fromtime to time so that no discrepancy occurs in stores.

To prevent leakage, theft, wastage, and deterioration

etc.. To communicate with purchase department.

To provide efficient and effective service to theorganization.

To prevent unauthorized entry in stores. To arrange for periodical stock-taking and stock

verification.


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STORE SYSTEM(TYPES OF STORES)Stores can be broadly classified into two categories:

A closed store.

An open store.


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STORE SYSTEMCLOSED STORE OPEN STORE

All items are stored in a closedand controlled area.

No other person except the storespersonnel is permitted to enter

this area. The materials enter or leave the

store room only whenaccompanied with the authorizeddocuments.

This system ensures maximumphysical security.

Tight accounting control of items. Small and costly items that are

easy to handle and liable to be lostare kept in these types of stores.

Materials are stored as close as possibleto the point of use. There is no specificstorage area.

Every individual has access to any storagefacility.

After the receipt of the material it isdelivered to the respective departmentsto expedite the production activity.

Chances of pilferage , damage etc. arehigh.

Less emphasis on accounting control ofthe materials.

This system is justifiable in fast movingproduction where consumption is veryhigh , like iron ore , coke , limestone ,sand , bricks etc.


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ORGANIZATION OF STORES

Dept./storekeeper

Store keeper(raw materials)

Asstt. S.K.

(Raw material)

Asstt. S.K.

(Tools andequipment)

Storekeeper(stock)

Asstt. Storekeeper (stock)

STOREOFFICER

Asstt. S.K.

(Stationery)


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LOCATION AND LAYOUT OF STORES The location of the storage facility is important

because it directly affects the material handling costand the periodicity of the operating cycle .

It is also considered in relation to the receiving pointof the raw materials and shipping point of the finishedgoods.

The storage facilities should be located near theoperating departments. However, a reasonabledistance must be maintained between the stores andthe plants.


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The availability of total space and location of materialsinside the store room should be taken intoconsideration while planning the layout of stores. Thetotal space is decided on the basis of available floorarea, containers, cabinets, racks, shelves bins etc..


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Centralized Stores The basic principle of the journey distances and avoid

back-tracking .In small industries, it is desirable tocentralize the materials so that they may be brought

under the control of one storekeeper. In this system the store room is located very near to

the place of use .If there are number of manufacturingdepartments, the store-room should be situated such

that it is near to all the departments . This will reduce handling and enable to eliminate lot

of manual operations .These types of stores are calledcentralized stores .


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Advantages of Centralized store: Large number of items can be purchased in one order,

therefore, the firm can get quantity discount and thereis a reduction in transportation cost.

Possibility of standardization of materials reducing thevariety of items stored.

Less manpower is required which reduces

administrative costs.


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Better security arrangements can be made to safeguardagainst pilferage and theft.

Less storage space is required. Optimum stores can be maintained.

Better layout of stores is possible.

Better supervision and control is possible.


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Disadvantages: There is an increase in material handling cost.

There are chances of bottlenecks and resultant delays.

More exposure to loss due to natural calamities likefire, rain, dust etc.

Possibility of communication gap between the user ofthe item and its supplier.


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Decentralized Stores Decentralized stores are preferred in large factories,

having different departments using different kinds ofmaterials.

In such cases it is always beneficial to maintaindifferent stores in different sections.

For example ,electrical stores near electricalmaintenance section ,tools and equipment stores near

tool room ,spare parts near maintenance section. Similarly ,raw materials like sand ,limestone ,coke

,iron ore and pig iron should be kept near the foundryshop.


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Advantages of Decentralized store Reduced material handling and associated costs.

Less chances of bottlenecks and delays.

Less risk of loss by theft or fire. Convenient for every department to draw materials.


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LAYOUT OF STORES Physical arrangement of storage facilities for efficient

receipt, storage and issue of materials is called aslayout of stores.

In a properly arranged store, the materials are properlymaintained. It involves minimum of handling andoptimum utilization of space.


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The following basic factors must be considered

while laying out of the stores:

Type of Stock.

Volume of Stock.

Availability of Space.

Physical factors.


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Basic principles of layout of

stores: The store room layout should minimize the handling

and transportation costs.

It should be such that it provides for easy receipt,storage and disbursement of materials, preferablynearest to the point of use.

Materials must be accessible for handling equipment

and personnel. There should be optimum utilization of floor space

and ceiling height.


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The store room layout should be flexible enough to suitthe changing requirements of the future.

Shelves, racks, bins, etc.. Should be situated in clearly

defined lames so that items are quickly stored and easilylocated.

Storage space should be well protected against fire,wastes, deterioration, damage and pilferage.

A pace for storing materials should be decideddepending upon their characteristics.

Heavy and bulky items should be stored as far aspossible.


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Store layout should make it possible to use modernmaterial handling equipments such as fork-dift truck,conveyors, gravity feed racks etc

Inflammable materials like oil, wood, cotton waste,kerosene etc.. Should be stored separately away fromsources of fire.

Storage space should be clearly marked to ensure easyand quick identification.


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FUNCTIONS OF STORES Identification of Materials:

When large number of different items arestocked in the store room, it is essential to codify them

for their quick identification. there should be a placefor everything and everything should be in its place.

Receipt:

Materials, tools, equipment are shipped by the

supplier along with the necessary documents andpacking slip. The store keeper unloads the goods andverifies the contents with the packing slip and thepurchase order.


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Storage of Materials:

The most important function of the storedepartment is to store and preserve the materials,equipments, tools, supplies etc..till they are issued tothe production departments.

Issue of Materials:

Materials should be issued by thestorekeeper only on the presentation of an indentknown as Stores Issue Requisition.


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Record Keeping:

In order to maintain an efficient record of stores,the following books and records will be required andthese are maintained separately for different types ofmaterials :

Bin card.

Stores record card.Material transfer note.

Material return note.


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STORES BIN CARD Card No. Part

No. DescriptionLocation

Date The bin card contains up-to-date information

about the receipts, issues and balance of therespective item in the store.


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STORES CONTROL Protection of goods from fire.

Protection of goods from dust.

Protection from weather conditions. Protection against deterioration.

Protection against theft.

Maintenance of the level of the inventories.


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THANK YOU

store and store keeping

Documents