Role Of Purchasing In Quality Determination And Control In An Organization
(A Case Study Of Tenth April Company Umudagu Mberi Mbaitoli L.G.A. Imo State)
The role of purchasing in ensuring and maintaining quality standards within an organization is integral to its overall success. Purchasing functions play a crucial part in the procurement of goods and services that directly impact the quality of the final products or services delivered by the organization. The procurement process involves meticulous evaluation and selection of suppliers, negotiation of contracts, and monitoring of supplier performance to guarantee adherence to specified quality criteria. Effective communication between the purchasing department and other relevant stakeholders, such as production and quality control teams, is paramount. This collaboration ensures that the purchased materials meet the organization’s quality standards and align with the strategic objectives. Moreover, continuous assessment of market dynamics and emerging technologies is imperative for purchasing professionals to make informed decisions that contribute to the sustained quality improvement of the organization’s offerings. In essence, the purchasing function serves as a linchpin in the quality determination and control framework, fostering a seamless integration of quality considerations throughout the procurement process.
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.
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Research questions
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definitions of terms
CHAPTER TWO
2.0 Literature review
2.1 Introduction
2.2 What is quality
2.3 How quality is determined
2.4 The contribution of Purchasing to quality
2.5 Quality assurance and quality control
2.6 Inspection methods
2.7 Rejection procedure
2.8 Purchasing the right quality
2.9 How quality is determined
2.10 Management of responsibility in quality determination
CHAPTER THREE
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Sources/methods of data collection
3.4 Population and sample size
3.5 Sample techniques
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
CHAPTER FIVE
5.0 Summary, conclusion, Recommendation
5.1 Introduction
5.2 Summary of findings
5.3 Conclusion
5.3 Recommendation
References
Appendix
1.0 INTRODUCTION
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.
1.1 BACKGROUND OF STUDY
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. T
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?
1.4 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.
Role Of Purchasing In Quality Determination And Control In An Organization:
The role of purchasing in quality determination and control in an organization is crucial and multifaceted. Effective purchasing practices can significantly impact the overall quality of products and services offered by an organization. Here are several key ways in which purchasing plays a vital role in quality determination and control:
Supplier Selection: Purchasing departments are responsible for selecting suppliers and vendors. Choosing reputable and reliable suppliers with a track record of delivering high-quality goods and services is essential to ensure consistent quality in the organization’s offerings.
Supplier Evaluation: Purchasing teams need to continually assess and evaluate suppliers’ performance. This includes monitoring their adherence to quality standards, delivery timelines, and responsiveness to quality issues.
Quality Specifications: Purchasing professionals collaborate with other departments, such as quality assurance and production, to establish clear and detailed quality specifications for the products or materials they procure. These specifications serve as a benchmark for quality control.
Negotiating Quality Agreements: Purchasing professionals negotiate contracts and agreements with suppliers that often include quality-related terms and conditions. These agreements may specify quality standards, inspection processes, and quality improvement initiatives.
Inspection and Testing: Purchasing departments are responsible for arranging inspections and quality testing of incoming materials, components, and finished products. They ensure that the purchased items meet the established quality criteria before they are accepted into the organization’s inventory or production process.
Cost-Quality Trade-off: Purchasing plays a vital role in balancing cost and quality considerations. While striving for high-quality inputs, purchasing professionals must also manage costs effectively to ensure the organization remains competitive.
Continuous Improvement: Purchasing is integral to the organization’s continuous improvement efforts. They identify areas for quality enhancement in the supply chain, work closely with suppliers to implement improvements, and contribute to the organization’s overall quality improvement initiatives.
Risk Management: Purchasing teams assess and manage risks related to the quality of purchased goods and services. They develop strategies to mitigate quality-related risks and ensure business continuity.
Supplier Development: In some cases, purchasing may collaborate with suppliers to help them improve their processes and quality standards. This can be done through joint quality improvement programs and sharing best practices.
Communication: Effective communication between purchasing and other departments, such as production, quality control, and design, is essential. This ensures that everyone is aligned on quality requirements and works together to achieve consistent quality outcomes.
Compliance and Standards: Purchasing professionals must stay updated on industry regulations and quality standards relevant to their organization’s products or services. They ensure that suppliers adhere to these standards and regulatory requirements.
In summary, purchasing plays a pivotal role in quality determination and control within an organization by selecting the right suppliers, setting quality standards, monitoring supplier performance, managing costs, and driving continuous improvement. A well-functioning purchasing department is essential for maintaining and enhancing the overall quality of an organization’s products or services.