CONTROL AND ADMINISTRATION OF RAW MATERIALS

CONTROL AND ADMINISTRATION OF RAW MATERIALS:
The need for management and control of raw materials is due to the fact that
very important to ensure that the objectives of the organization concerning the management of
The materials are concerned are affected. One of the main objectives of management is
produce cement at the lowest possible cost while achieving the best possible performance
investment To achieve this laudable goal, effective control is required
system, from the acquisition of raw materials to the final stage of production.
The store department of the company is responsible for managing and
control raw materials and inventory of finished products to ensure effective and efficient management
and appropriate use to minimize waste that leads to reduced benefits of the organization. To this end, the following internal control measures are adopted:
at. Arrangement of the control of the stock of materials establishing the maximum
and minimum quantity limits through independent registration in stock
control general ledger accounts as well as continuous recording.
second. Physical checks of stocks to determine the exact amount of inventory
and then reconcile the same with the stock accounts.
do. Continuous stock accumulation: this form of inventory goes far in
placing greater moral controls on store department staff with
with respect to theft or misappropriation of goods or products.
re. All inventory issues for factories and stores are supported by duly authorized personnel
requisitions.
In addition, to minimize waste, the management of the Nigerian Cement Company, Nkalagu
ensures that only the exact quantity of raw material is supplied daily to the factory
base The method of issuing raw materials to the production department is based on
last to enter first (LIFO). None of the raw materials is perishable, so it is not necessary
for special storage arrangements.
PURCHASES AND DISTRIBUTION OF RAW MATERIALS:
The company’s board of directors is the main body of policy formulation. The advice is
led by the President Elect.
The power to purchase and control inventory is in the purchasing divisions; which
the store as one of its units. This function is delegated to the Procurement Officer and is
after receiving the request from each departmental manager. Accountability
department ensures that payments for purchased raw materials are made and needed
Saved Records At the Cement Company of Nigeria, there is an established procedure for the stock
acquisition and management. This is indicated in the box below:
Department of production + stores – + purchases