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QUALITY DETERMINATION AND CONTROL THE CONTRIBUTION OF PURCHASING

ABSTRACT

The study was investigated on “Quality Determination and control the contribution of purchasing” A case study of star paper mills limited Aba for the purpose of quick reading and comprehension, the study report been classified into five chapters. The first chapter, take of with introduction which present the general overview of the study, statement of problems, purpose of study, research question, significance of the study, statement of hypothesis, scope of study, limitation of the study and definition of terms. Chapter two deals with the literature review of the study with emphasis on the research topic. Basic contribution of purchasing in an organisation sourcing and selection of suppliers following-up and Expedition / progressing the order determination of Quality, Determination of price, Acceptance of goods ordered and payment for them, the contributions of purchasing to quality, cost consideration in quality management responsibility of purchasing in quality determination. Chapter three presents the methodology employed the research design, the questionnaires design, sampling and selection of respondents, other methods used, survery observation, data sources, secondary data, primary data , data analysis method. Chapter four makes the presentation analysis of data collected and testing of hypothesis. 
Chapter five summarized the finding made recommendation and concluded the research work. The aim of this research is to develop frame work considering the purchasing contribution in an industries. Most industries will find that research work very useful and believe that this work will be beneficial and equally make an interesting reading to any one who can look into it. 

CHAPTER ONE

INTRODUCTION

1.1 GENERAL OVERVIEW OF THE STUDY 

In every organization no matter how small the management will not waste time and efforts in making or arranging for the supply of the wrong quality goods. This is one of the reason procurement in most organization, more especially in the manufacturing industries; they are receiving more attention than before, all in the bid to avoid waste arising from wrong purchase In fact purchasing objective have originally been seen as the procurement of goods and services of the right quantity and at the time, from the right suppliers at the right price price was put last, not because of its importance. It would necessarily be the least, but because it would often depend on the rest of the package, the specification, the quality, and so on quality was put first because it is fundamental. In absolute terms quality is function of excellence intrinsic values or grade as determined overtime by society generally or by designated bodies in specialized fields. In business and industrial activities generally quality is first defined as terms of relationship to a need or a function, in these cases, the important thing is not the obsolete quality of an item. but the suitability of the items is satisfying the particular need at hand. 

Quality can be also defined very simple as conformance with the stated requirements. Buyer responsibility and a supplier’s job is to deliver materials whose quality conforms satisfactorily with specification requirement.  The contribution of purchasing in determining quality is normally expended as the procurement of the right quality material on the right quantity, at the right time from the right suppliers at the right source and at the most economical manner so as to offer value for money.  In this second consideration, the contribution of purchasing department is clearly defend as having the contribution for responsibility for the determination of economic consideration for quality. This Means that the purchasing should try to determine whether the selected material can be purchasing on a timely and regular basis and from alternative source on competitive basis. 

According to Oyeoku (2001:112) a question may be asked if quality can be determine by one function those literate will determine the standard perhaps to the detriment of the others. It follows therefore that quality must be the responsibility for every one in the company for instance design, production, purchasing department and sales department and also users department. But generally, to ensure that goods supplied are 100% right quality goods.  The following factors must be born in mind. The first factor to be considered must be decided and stated in a simple but clear form what exactly is needed or required .Taking in to consideration the indented application this means that the purchasing or the organization must have gotten a clear specification in addition the suppliers should follow the specification as required without unnecessary alteration to suit him (suppliers). This will go a long way in avoiding production stoppage redundancy marketing problem and too much rejects etc which are associated with wrong supply of materials. 

The second factor to be considered is that a goods specification must be correctly written. It therefore becomes necessary that after specification the chosen supplier must be informed of the specification and supplier must be informed of the specification and their capability to comply with it must be ascertained The third consideration is to expedite the specification knowing too well that misstakes are made and processes started can be out of specification this helps to check the suppliers output and could normally sorted out from bad during this time and remedial action should be initiated if the proportion of defective products getting out of control.  The final consideration is the monitoring of the physics supply which where the purchasing personal does a lot of job but in some organization like star paper mill limited Aba. It aims at upgrading by adding its own quality and that quality is every body’s responsibly. However, it is still good to appoint one person as the quality control manager, but to assign to him the responsibility for everything affecting product quality is to give him much task to perform.  Increasingly, purchasing quality assurances is seen as a systematic attempted by the purchasing to measure that a supplier has the intention and capability for complying with his responsibility to assure the quality of what he supplies.

1.2 STATEMENT OF THE PROBLEMS 

Nigeria as a nation is blessed with so many in industries and academic institutions whose service the nation cannot do without, these industries are changed with the responsibility of production goods If high quality and standard at a very reduce and affordable cost for the citizens. Material in this aspect became so vital that no result could be achieved without a good producer.  At this instance, the purchasing department must have a good knowledge of quality control and better understanding of its specification requirements. The researcher is faced with the problem of working out modalities for the improvement of the purchase of right quality in this organization, conducting the research to find out what the contribution of purchasing should being determining quality, knowing that professional purchasing should have a lot to offer under a situation like this. The researcher associate part of the problems with unprofessional purchasing function. The issue of effective quality determination and control has not been made due to poor quality production which most at times leads to some risks between suppliers and purchasers those risk are, supplier 

 Loss of reputation 

 Waste of human and financial resources 

 Loss of market share 

 Claims 

 Liability

 Dissatisfaction with production and service procured 

 Health and safety lizards

 Marketing claims a loss of confidence. Therefore this research work is aimed at solving the problem of quality determination and how to control the products.

1.3 OBJECTIVE OF THE STUDY 

This research work is to consider the quality determination and control the contribution of purchasing and also how to resolve the common conflicts that are common in design and engineering department of any organisation. The following objective will be achieved for this study:

i. To increase sales of better quality product and Increase or enhance customer satisfaction .

ii. It ensures maintenance of adequate to quality 
necessary of satisfy customers and to meet the competition of final produces. 

Iii. Ensuring that essential information regarding required quality is communicated to the supplier especially during negotiation. 

vi. To ensure that definite reference to quality is made in purchase orders and conditions of purchase.

1.4 SIGNIFICANCE OF THE STUDY 

The findings of this research work which is based on quality determination and control. The contribution of purchasing is principally structured to encourage proper determination of quality product of an organisation  The funding also provides the ways by which problems of wrong quality products encounter in most organisation are wisely treated be of greater benefits to star paper mill it at but also to other organisation to aid them to effectively determine their products quality and also control them.

1.5 RESEARCH QUESTIONS 

For the purpose of this research work, the following questions are formulated:

1. Which department is responsibly for the control of quality of material supply in the company? 

2. What is the function of purchasing department as regards to controlling the quality of items required? 

3. What method is used in the specification of the quality of materials requied? 

4. What methods are been used in selection new supplies for the supply of a given material?

5. How is quality determined?

1.6 HYPOTHESIS

The following hypothesis has been formulated and will be tested scientifically at the appropriate and will be tested scientifically at the appropriate section of this work.

Ho: There is no relationship between purchasing department and quality control. 

H1: There is a relationship between purchasing departments and quality control.

Ho: Purchasing and supply department of every organization is not responsible for quality control of all in coming materials.

Hi: Purchasing and supply department of every organization is responsible for quality control of all coming material

1.7 SCOPE OF THE STUDY 

The scope of this study is suppose to cover at least one third of the total number of notable manufacturing companies but due to financial and time constraints the researcher was limited to only the star paper mills limited Aba, hence that is where the research is based, the result obtained will be used for generalization

1.8 LIMITATIONS OF THE STUDY 

This research work is hand capped by a number of factors as follows 
a. Finance 
b. Time 
c. Insufficient literature materials 
d. Poor responses. 
a. France: In a project work like this, there are bound to 
Be some hindrances and obstacles posing a threat to the progress of the project especially in this are of structural Adjustment programmed (SAP). As we all know money is not easy to come by, so the researcher has to limit herself to the available financial resources and has to structurally adjust the project.

b. Time: Time facts was one of the limiting factors that affected this project work that is the time limit within which to complete this work is relatively small and does not allow for a datable in visitations of the factors wanted by the research.  c. Insufficient literature materials: The greatest incident Literature materials for this work to be effective carried out by the research. In the whole of my department (purchasing and supply) there is no sufficient work that has been does on the role of purchasing in quality determination and quality control up to data and the researcher is the first person to sorry our field work in what the role of purchasing should be in deterring quality and to control in an organization this affected the project work. d. Poor responses: The response of the people during interview was very poor and there were some question asked and their reposed could be that they were competent to spent in such issues or they would tell you that it is convictional with information was not let not easily. 

There are also the risks of running up and down to collect the necessary data for the project as they could not be collected once.  There was also this transport problem one had to face in the course of which we are subjected to study is very poor and the researcher had to attend her lectures at the same time as she is doing other assignments together with carrying out of this project work. However these do not affective the figures and facts inside are accurate accents based on the best of my knowledge.

1.9 DEFINITION OF TERMS

1. Quality: this is the acceptability of materials or components for a given purpose 

2. Purchasing: According to Oyeoku (2001) this is the process involving planning and it is a strategy designed to obtain value fro money spend, 

3. Reliability: It is the probability of a product perfuming without failure a specified function under given condition for a specified period of time. 

4. Conformance quality: This is the extent to which the supplier succeeds in meeting our specification 

5. Quality control: Oyeoku (2001) said that department has a very important contribution play in quality control mainly in relation to the quality and performance of the goods and service being purchasing on behalf of the organization 

6. Store: According to Uzor (2006) it includes all movable property purchasing from public funds of otherwise acquired by government. 

7. Specification: This is a description of any object material or process in sufficient detail to enable its miniature and further identical production 

8. Quality determination: Oyeoku (2001) days that the determination of quality is not a one function responsibility and the best advantage is obtained by blenching the basic requirements of the various functions involved in the operation. 

9. Rejects: These are products that have been rejected become they are faulty or something is working with them. 

10. Right quantity: It refers to the value or amount of material that can be most economically purchased at a particular time. 

11. Research: A research is a systematic in designation for the purpose of gaining new knowledge in other words it is any study that leads to fresh knowledge. 

12. Questionnaire: This is the list of questions to be answered by a group of people especially to get facts or information for a survey (Advance learner Dictionary). 

13. Primary Data: This is data collected by the investigator himself for a particular statistical equity. 

14. Secondary Data: Secondary data are data taken as second-hand information from figures originally collected by someone else.

15. Data: This is defined a the gathering of information either from primary source or secondary source.

16. Hypothesis: This is defined as a conjectural statement which a researcher make ahead of his study and which must be subjected to test to be accepted or rejected.

17. Null hypothesis (Ho): This is an ascertain that the population parameter is not different from which if it is suppose to be or what it have been in the past.

18. Alternative hypothesis (Ha): This specifies a population parameter that is different from the status.

19. Test statistics: It is a simple statistics computed from the data. The value of test statistics is determining whether or not a null hypothesis is rejected.

20. Acceptance region: This is the set of sample value that will lead to the acceptance of Ho, while rejection region is the set of sample value dealing to the rejection Ho.

21. Decision rule: Decision rule is a rule that simplify the condition under which a null hypothesis may be rejected.

22. The Observation techniques: This is fact finding activity designed to recognize and note facts as t hey occur.

23. Test of significance: This is the probability of committing type one error i.e. the probability of the Ho when the fact should be accepted. It represents the highest probability.

24. Critical Value: This is the value against which the actual sample value is compared. 

25. Degree of freedom: This refers to the number of independent observation one can make in order to account for the rest of the data.

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