Chapter – 3

3. Data analysis and findings

3.1. Introduction
The data collection method used in this paper is based on the questionnaires filled by employees.
And different reports, and the Hawassa tabor ceramic factory inventory manual and secondary
data the employees records show that there are around 50 ERCA tax audit worker was found the
sample respondent was divide in to three categories .

- Finance staff members

- Store department members
- Work unit who most of the time served by store.

The questionnaires was disturbed randomly selected employees found at ERCA southern region
Hawassa branch the questionnaires is designed and developed in consideration to the skill and
knowledge of members attempts was made to make questions easily understand able to the
respondent.

Finding of the study

A total of 15(5 was from finance staff, 3 store department and 7 from work unit who was most
served by store department, questionnaires was distributed and all was filled and reformed by
workers of Ethiopian revenue and custom authority of southern region of Hawassa branch).

Table 1: based on age education

No Item sex Age education

1 Sex Male female Total
10 5 15
no
67% 33% 100%
percentage
2 Age in year 20.25 26.30 31.35,36-40
3 9 2,1,15
No
20% 60% 14%6% 100%
Percent
 3 Educational level 12thgreced less Diploma Degree
0 2 13,15
No
0% 13% 87%,100%
Percent age
Source: survey study

Shows in table 1,among the sample population size 15,10(67%)was male and the remain
5(33%)was female most of the workers was male due to the nature and types of work demand
male employees. To summarize the above table, Males can perform labor work than females.
And it is advantage to the institution.

Item number”2”of table “15”hows, 9(60%)of male employees 26.30year old. 2(14%)was
femal31-35 years old and 1(6%)36-40 and male and 3(20%)female 20-25year old. From this the
majority of respondent are found at middle age.

Item number”3”of table shows the sample population of 2(13%)diploma 13(87%)was degree and
12th grade less 0(0%)most of the workers status are degree.

3.2. Identification of the main problems of hawassa tabor ceramic factory.

Table 2: respondent reply on stock control

No Item Number Percentage

3 Do you think that is
their adequate stock
control system in your
organization?
Yes 6 40%
No 9 60%
Total 15 100%
Source: survey study

According to the respondent says that 6(40%) replied that yes and 9(60%)replied that from the
above response was say that the region have no adequate control of stock.

Stock records (control cards)

Stock record card are usually together in one place, it is difficult to generalize on this point but
there is much to be said for holding the record in or very near to the store house building. If this
is done contract between the clerks keeping the records and the store house staff responsible for
receipts, issues and stock taking is easy. And furies or mistakes can be settled quickly with out
need of written inquiries and explanation.

Table 3: How do you evaluate the system efficiency for disposal of unused or deprecated
material?

No Item No Percentage
How do you evaluate the system
efficiency for disposal of unused or
deprecated material?
2

High - -
Medium 3 20%
Low 12 80%
Total 15 100%
Source: survey study

According to the respondents 12(80%) replied that the systems efficiently for disposal or un used
deprecated materials is low. Only three respondents replied the system efficiency as medium.

For this that the region system efficiency for disposal of surplus un used materials is too low so
corrective measures must be taken to dispose surplus materials on time according to the rules and
regulations.

Disposal of scrap materials

According to the hawassa tabor ceramic factory inventory management manual surplus material
will be identified least annually, then surplus materials have been identified by branch and
regulations should inform to the concerned bodies.

Normal physical receiving storage control and protection procedures were apply to surplus
materials whether at stores division or other location.

Table 4:the respondent reply on comparison of the stores they handle against the materials
 No Item No Percentage
What is the level of the capacities of
the storage to hold the materials?

v. Adequate 2 13%
4 Adequate 4 27%
In adequate 9 80%
Total 15 100%
Source: survey study

According to the respondents only 9(60%) respond that the store is not enough to accommodate
the material the region have to hold. 4(27%)of the respondent respond that there is adequate
place for the material and only 2(13%)verify that there is very adequate place besides this in may
observation the organization have to construct better store which accommodate buffer quantity.

Materials handling

Material handling is a technique to move transport. Store or distribute materials with or with out
the aid of mechanical appliances, which is a majority activity in store hoses if in a costly
operation and fore the methods and equipment should be efficient.

Benefits of proper materials handing carefully planned and operate material handing policies can
result in.

- Reduce handling cost

- Reduce risk of damages stocks
- Reduce labor requirement

Questions number 5.hwo do you affect the customer service? from the respondent most says that
conclude and summarized, if such inventories are out of stock (e.g.)material different kind of
writ cables, breakers etc. may our customers suffer our service in time and cost etc.

Table 5: respondent replay on material deliveries from store department using requisition

No Item No Percentage
 What is the frequency of delivery of
product from the store department
made by requisition?
5

All ways 13 86.67%

Some times 2 13.33%
Noting requisition all - -
Total 15 100%
Source: survey study

According to the respondents 13(86.67%)said deliveries from the stores department made all
ways in requisition, 2(13.33%)of the respondent said delivered from the store department mad in
requisition some times. None of the respondent said it is made with of requisitionat all from this
that can understand that the corporation uses requisition to issue material user department. for
materials to be delivered to the concerned departments requisition procedures should be strictly
observed.

According to hawassa tabor ceramic factory, materials management manual around the store
there are many material that need protection of them is stock yard because they are electrical
equipment and materials such as electrical insulators cable varies etc. which they may deteriorate
due to sun light. Purchasing unit the store staffed this leads to un proper purchasing and the store
rapiers what so ever is purchasing by the purchase no more inspection precludes would not be
implemented this may impose to stock items that do not fit the required jobs.

1.3. Identification of the skill and knowledge of the workers of the inventory management in
the organization.

Table 6: respondent replay on evaluate of inventory management

No Item No Percentage
 How did you evaluate the inventory
management control system of the
corporation?
6

V, good 2 13.33%
good 12 80.00%
Fair 0 -
Poor 0 -
Need improvement 0.1 6.67%
Total 15 100%
Source: survey study

According to the respondent 2(13.33%)responded that the inventory management control of the
corporation v, good and also 12(80%)responded that if was good and 1(6.67%)of the respondent
that the corporation need improvement.

Inventory element

Order quantity (Q) and order frequency are inversely related large orders result in less frequent
ordering and smaller orders result in more frequent ordering.

Holding hosts (carrying costs)are the costs of holding the inventory. Opportunity costs is the
minimum retouch on investment (role)required by organization.

Table 7: the respondent reply on techniques used to inventory management properly.

No Item Number Percentage

7 Do you believe that
the technique used to
 inventory manage
properly?
Yes 14 93%
No 1 7%
Total 15 100%
Source: survey study

According to the respondent 14(93%) responded was yes and 1(7%)was no from this would be
that the organization used technique for inventory management properly.

Inventory and store management

A wide variety of inventory management techniques exist which will be directly affects the
inventory management in arranging its day to day activities staffing from the simplest to the
sophisticated methods. Each technique is specially designed for controlling a given inventory
situations. Considering such variable factors as the degree of un certainty of demand for supply
of inventory, the cost of developing and maintain the system and the inventory accuracy
requirement.

Table 8: To what extent the inventory control system of your organization affect the customer
services

No Item No Percentage
To what extent the inventory control
system of your organization affect the
customer services?
 8 V, high 0 -
High 2 13.33%
Medium 12 80%
Low 01 6.67%
V, low 0 -
Total 15 100%
Source: survey study

According to the respondent 2(13.33%) responded that the service given by the store persons
was high and 12(80%) responded that if is medium and 1(6.67%)of the respondent said that the
service as low. Form this region was gives service to users at medium level.

Table 9: respondent replay find management system of inventory to meet the organizations
operation efficient and effectiveness.

No Item No Percentage
How do you find management system
of inventory to meet the organization
operational efficient and effectiveness?
9 V, good 4 26%
good 9 60%
Fair 0 -
Poor 0 -
Need improvement 2 14%
Total 15 100%
Source: survey study

According to the respondent 4(26%) responded was v, good and 9(60%)good from this and
2(14%)responded need improvement from this the organization was on good condition.

3.4. Identification explains the types of inventory management used by organization.

Table 10: What kind of inventory system used in your organization

No Item No Percentage
 What kind of inventory system used in
your organization

10

Periodic 14 93,333,333,33
Perpetual 1 6.666,666,67
Others 0 -
Total 15 100%
Source: survey study

According to the respondent says that 14(93.7%)was periodic and 1(6.7%)was perpetual from
this the organization was used periodic inventory system.

The periodic inventory system

As the name implies when the periodic inventory system is used the amount of inventory on
hand is determined only periodically. All inventory acquired during an accounting period is
recorded by debiting the purchases account. The dollar amount in the purchase account at the end
of the accounting period is added to the inventory on hand at the beginning of the period to
determine the total.

Table 11: Do you think modern inventory management system exists in your organization

No Item No Percentage
Do you think modern inventory
management system exists in your
organization?
Strongly agree 0 -
 11 Strong disagree 9 60%
Agree 3 20%
Disagree 3 20%
Total 15 100%
Source: survey study

According respondent only 9(60%) responded that the strongly disagree 3(20%)of the responded
that the agree and 3(20%)of the respondent that agree and 3(20%)is disagree from the above
response says that the organization strong disagree.

Table 12: respondent reply on what is the modern management system

No Item No Percentage
the answer for question no9 is agree
what is the modern management
system is in your organization?
12
Economic order - -
Record level 3 20%
Material require meat place - -
Total 15 100%
Source: survey study

According to the respondent says that only 3(20%)is agree there is record level used in the
hawassa tabor ceramic factory , the stock record head extracts SR and forward them to the
respective head for permission and approval as per the priority level.

- level item high value (sensitive expensive )

- item to the store division regional and project manager
- Level item moderate value item to the ware house section head or regional administration
manager.

Question 13: if your answer to question no 12periodic why?

- In order to save frequently cost of physical counting the availability of many types of
stock and others.

Question 14: add some other point which you think that have impact on the inventory
management system that the company supply?