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ROLE OF PURCHASING IN QUALITY DETERMINATION AND CONTROL IN AN ORGANIZATION

ABSTRACT

This project work is discussed the role of purchasing in quality determination.  Chapter one deals with the introductory part of the project, it also touched the backg0orund of study, statement of problem, objective of study, scope of the study etc. Chapter two discusses the literature review, which dealt with the definition of purchasing role in an organization and how quality is determined in an organization. Chapter tree went into the research methodology, discussing the sources of data, sample size and others. Chapter four emphasized an the data presentation analysis and interpretation, it also touched the test of hypothesis. Chapter five is the last chapter. It discussed the summary of findings, conclusions, recommendations and also the areas of further research.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO STUDY

purchasing is a managerial function with the main aim of obtaining the right quality of material in the right quantity at the right time from the right source and at the right price. These must be done in the most economic manner so as to off value for money. The determination of quality is where the purchasing department have a vital role to play. Buyers have a management right and responsibility to challenge specified quality standards where they consider them to be unrealistic, but have not right to change them without consulting the designer or the user or the customer where there is need. To change means to request for a consideration of the quality stipulation in relation to cost availability and reliability of the item. Purchasing can also contribute in determining quality in many ways.

(a) It can be a member of [committee concern with specifying needs.

(b) It can advice on cost and can suggest alternative materials 

(c) It can advice an availability of material to specified quality and on continuous basis.

(d) Purchasing can also advice on the suitability of item requisitioned for particular purpose.

The Anambra motor manufacturing company plc was established in July 1980 by the Federal government of Nigeria in conjunction with over government and other states, such as Anambra, Rivers, Imo as well as private individuals who owns shared in the company. The first managing director was Mr. Hoh, while the first chairman was sir Joe Nwankwo. The objective of the company was to produce Benz (MB) trucks and buses. But recently ANAMMCO as it was fondly called also diversified into the production of uniquely specified vehicles like price fighting vehicles and refuse disposal vehicles, troop carriers, billion vans etc.

The company has create jobs for a lot of unemployed people in the state and the country at large Some of the company’s greatest problems includes the managing of forcing exchange allocation, the popularly known as tokunbo or Belgium, which large cheaper than Mercedes Benz (MB) vehicles, the stingests of economic measures to cope with and finally the global economic melt down. In fact, purchasing objectives have originally been seen as the procurement of goods and services in the right quality, in the right quantity, at the right time from the right sources and at the right price. Especially in the manufacturing industry which are receiving more attention than before all in a bid to avoid waste arising from wrong purchasing.

In this context, quality, quantity, source, time and price are of prime importance because quality is fundamental. In other words, price are determined when the issue of quality, time and source had been ascertained.
There some factors to be considered when a firm wants to keep its specification afloat. First is to decide and state in simple but clear terms, what exactly is needed or required taken into consideration the intended application must have gotten the purchaser or specification as required without unnecessary alteration tosuit its suppliers. Secondly, a good specification must be correctlywritten to suppliers. It therefore becomes necessary that the chosen supplier should be informed of the specification the company wants.  Thirdly, a follow up if the specification must be made knowing too well that mistakes may occur during the process. This will go a long way to check the suppliers output ad decrease supply if bad or defective products. Fourthly, is the monitoring of the physical supply which is the duty of purchasing personnel. But is some organization that aims at upgrading its own quality insists that quality is everybody’s responsibility.

However, it is still good to appoint one person as the quality control manager (QCM) whose responsibility it is to inspect and give report on every good supplied to the company,, to known if they meet with the company’s specification. All these are put in place to make sure that a suppliers supplies the best quality. A useful guide was practices was issued in December 1984, by the British standard institution as BS5779 “A good to the operation and evaluation of quality assurance system”. this was based on the special problem of vehicle manufacturing wishing to sell their products in U.S.A. it creates specialty for the industrial purchasing of goods and services.

It could be also be used as a distribution of a firms asset in assuring the quality of goods and services bought to their spcfoication to cope with. This range of application the standard is issued in three separate parts dealing respectively with: Part one-deals with final inspection system. Part two: Deals with comprehensive inspection system that is complex materials. Part three: Explains the comprehensive make up of quality control system and the simplest system and the least cost to Cooperate is the final inspection system covered in part one.

1.2 STATEMENT OF PROBLEMS

Industries are charged with the responsibility of producing goods of high quality and standard at a very reduced and affordable cost the citizen can afford. Materials in this respect becomes so vital that no result could be achieved without a good procurement procedure, at this instance, the purchasing department must have a good knowledge of quality control and better understanding of its specification requirement. The researcher faced with the problem of working out modalities for the improvement of the purchase of the right quality in three industries conducted the research to find out what the role of purchasing should be in determining quality, knowing that professional purchasing should have a lot to offer under a situation like this. The research associated part of the problem with unprofessionalism in purchasing function. 

Some of the questions that need to be asked and evaluated are therefore, as follows:

(a) What are the right quality materials brought at right time to meet the need?

(b) How is quality measured?

(c) Who has the final say in quality? Purchasing or engineering or users department.

(d) Are those in charge of quality control expert in the field?

(e) Is quality task computerized?

1.3 OBJECTIVES OF THE STUDY

This study is undertaken in order to explore academic excellence in relation to classroom theory and what in particularly obtained in industries and government establishment. Hence the carefulness in choosing this project topic.

1.4 RESEARCH QUESTIONS

The researcher in order to know the role of purchasing in quality determination and control in manufacturing industry, put these questions forth.

(a) How is quality measured? 

(b) Are those in charge of quality experts in the field?

(c) How can the right quality materials be bought at the right time to meet the need of the organization?

(d) Who has the final say in quality?

(e) Doe quality encourage profit in manufacturing industry? 

(f) What are forces that move industries to manufacture the best quality materials?

(g) What are the stages involved in controlling the quality in coming materials and components parts?

(h) Must quality be integrated throughout the organizations system? 

(i) Is quality task computerized?

(j) In a manufacturing industry quality is procurement 

How are the measures put in the place to check quality control?

1.5 SIGNIFICANCE IF THE STUDY

In view of the huge expenditure on purchase of materials used in organizations, it becomes imperative for the role f purchasing to be clearly spelt out in the determination of quality. The relevance of this study is to make a viable and purposeful rectification so as to clearly identify what the role of purchasing should be in relation to quality matters in any organization. It is also relevance in this study to raise consciousness on the benefit of professional Purchasing in our industries. Furthermore, to encourage the striking pof correlation between established institutional red tapes in purchasing and professional purchasing practices. This study is also aimed at showing how effective purchasing is involved quality matters. It is also meant to view the way quality is being measured in ANAMMCO.

1.6 SCOPE OF THE STUDY

The scope if the study is supposed to cove at least one third of the total number of industries in the state (Anambra) like Nigeria Bottling company (NBC) Onitsha, General Cotton Mill (GCM) Onitsha, Liver brothers industry Onitsha, etc but due to financial and time constraint, the researcher use only the notable industry in Anambra now Enugu state, where the researcher knows very well.

1.7 LIMITATIONS OF THE STUDY

This research work us handicapped by a number of factors of which if available would be boosted this project work and make it more reliable such factors are as follows;

(a) Time: This is one of the factor that affected this project work. The time with which to complete this work is relatively small and does not allow for detailed investigation of research.

(b) Finance: The researcher is a student, therefore he has to limit himself to the available researcher and has do structurally adjust the project work.

(c) Transportation: This is another thing that limits the researcher from carrying out his research very well. At times the researcher will board a bus from Owerri to Enugu and the likewise to make his research work a dream come true thereby posing himself to risk

1.8 DEFINITION OF TERMS 

Purchasing: This is the department which is concerned with the process of defining needs, selecting suppliers, agreeing on terms, placing orders, receiving goods and services.

Quality: this means the ability of bought items to serve the intended purpose of function accounting to specification.

Store: Store can be said to be a place where one can keep items or materials for future use.

Placing of order: Placing of order in purchasing is the term used by the buyer to tell his suppliers the type of product or item they have to supply to him. It appears in paper form like invoice or receipts.

Negotiation: This is the art of rising common understanding through Belgium on the essential of a conduct such as delivery. Specific price and form of the materials.

Procurement: This is a purchasing term that is used for buying and selling, it is usually seen in the exporting and importing

Vendors: These are the sellers of small articles, which can be carried around in a cart, or the likewise. E.g. a man selling newspapers or magazines is a vendor.

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