Project Management

LA-2

STORES
ADMINISTRATION

By:

Durvesh Naresh Patil

(2019BTEEN00035)

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CONTENTS
1. What is store management?

2. Objectives of store management

3. Functions of store departments

4. Types of stores

5. Centralised & Decentralised stores

6. Importance of stores

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1. What is store management
● According to Maynard, “Store management is to receive materials, to protect them while in storage from
damage and unauthorized removal, to issue the materials in the right quantities, at the right time to the
right place and to provide these services promptly and at minimum cost”

● Basic function is to receive the materials, recognize, place the same and issue the raw materials on the
requisition made by the respective department

● Managing the stores ensures that every project, no matter how large or small is properly managed.

● Objective behind stores is the continuous supply and production of goods and services

● Ensures that all the various activities involved during the process of storekeeping are carried out
economically and efficiently

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2. Objectives of store management

● Minimizing the cost of production

● Maintaining the worth of stock

● Services to Organization

● Establishing Co-ordination with other Departments

● Advising Material Manager

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3. Functions of store departments

● Receipt ● Verification

● Storage ● Coordination and cooperation

● Retrieval ● Surplus stock

● Issue ● Housekeeping

● Records

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4. Types of stores

● Main or Centralized stores

● Branch or Decentralized stores

● Central store with sub-stores

● Tool and Miscellaneous stores

● Warehouses

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5. Centralized stores

● Main store that is responsible for providing supplies for the other stores, the sub, stores

● Receiving the materials, equipment, and tools.

● Issue of materials to the departments and the branch stores

● Taking remedial measures for stock replenishment

● Helps in keeping the inventory in one common place

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5.1. Advantages - Centralized stores

● A small location is enough to meet the requirements of different users for different goods

● As the capacity of the store is limited, less inventory is required. As a result, less money will be invested in
inventory

● The amount of manpower required is reduced

● Materials can be manipulated a lot better

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5.2. Disadvantages - Centralized stores
● This system is not appropriate for big manufacturing concerns

● The number of people needed to transport the material to various locations is large

● This system is distinguished by material scarcity and waste

● If the stores are large, it requires adequate safety measures for the inventory

● It is hard to manage records

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6. Decentralized stores
● Manufacturing units which are large in size have their own decentralized stores to cater to the needs of
the respective plants

● Saves time and money and is an easy method to use in decentralized stores

● Departments may set up their own stores to fulfill their requirements

● Centralized stores have certain constraints and they are removed under this system

● Setting up different stores requires huge investment and operational costs, this makes the decentralized
store system unpopular

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6.1. Advantages - Decentralized stores

● The costs of material handling and associated costs are reduced

● Bottlenecks have been reduced considerably

● The damage caused by fire and theft has been reduced

● Early delivery of materials to the departments.

● Time and money saved on transportation

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6.2. Disadvantages - Decentralized stores

● The inventory cost increases as there is a duplication of inventory

● Human and manpower resources are underutilized

● Accounting and clerical functions have also grown in importance

● There is a problem with managing and coordinating different stores

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7. Importance of stores
● Minimum Investment

● Continuous flow of material

● Protection and Preservation

● Good quality at minimum cost

● Proper storage for improved output

● Minimum wastage

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THANK YOU!

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