Role Of Purchasing In Quality Determination
(A Case Study Of Nigerian Boyyling Company Owerri Imo State)
The role of purchasing in determining the quality of products and services is undeniably significant, encompassing a spectrum of responsibilities that directly impact the overall quality assurance within an organization. Procurement, as a pivotal function, plays a crucial role in selecting suppliers, negotiating contracts, and managing the entire supply chain. Effective purchasing involves meticulous evaluation and scrutiny of potential suppliers, considering factors such as reliability, compliance with industry standards, and a history of delivering high-quality goods. Moreover, the procurement process involves the establishment of stringent quality standards and the continuous monitoring of supplier performance to ensure adherence. A well-executed procurement strategy integrates quality assurance seamlessly, reinforcing the commitment to delivering excellence. The purchasing function is not merely transactional but rather an integral part of the quality management system, influencing the end product or service’s excellence.
Title page
Approval page
Dedication
Acknowledgment
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 question
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms
CHAPTER TWO
Literature review
2.0 What is purchasing
2.1 Definition of quality
2.2 Determination of right quality
2.3 Dimensions of quality
2.4 Management responsibility of purchasing in quality determination
2.5 The contribution of purchasing to quality determination
2.6 The right quality materials
2.7 Specification
2.8 Quality assurance
2.9 Quality control
CHAPTER THREE
3.0 Research and method logy
3.1 Introduction
3.2 Research design
3.3 Source of data collection
3.4 Population and sample size
3.5 Sample technique
3.6 Validity and reliability
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
4.4 Test of hypothesis
4.5 Interpretation of result
CHAPTER FIVE
5.0 Summary
5.1 Conclusion
5.2 Recommendation
5.3 References
5.4 Appendix
1.0 INTRODUCTION
In any organization, big or small, considers quality as the most important thing that determines the efficiency and effectiveness of its product and services.
Quality now becomes the point of view of every purchases (procurement) section of a firm.
The meaning of quality by dictionary defines quality as “ fitness, merit, excellence. According to Oyeoku (2005:pg 72) he sees quality as a set of specification, governing shape, dimensions workmanship, colour, and finish.
Quality is the therefore meaningful only in relation to the purpose and end use of the product.
“ Good quality” then is attained when a product or services purchase fully satisfies the purpose for which it is designed. To determine the right for a given application, a number of factor are considered
(a) Price consideration
(b) Specifications of customers
(c) The expected life of the produce in which purchased items will put
(d) The required reliability of the item purchased. But quality here is different in meaning (industrial and institutional purchasing, quality here is all about suitability and cost not price) with a close reference to the Nigerian bottling company PLC Owerri, the meaning of quality is very vital as it determines the extent of services rendered to the customers which have a direct relationship with the level of profit made through the marketing of goods and rendering of services in such a competitive business environment.
It has been a problem to many organization to discovers the source of their poor quality performance consequently, many organization have come to know the problems caused by poor quality. Infact, the purchasing objective have the original content, seen as the procurement of goods and services in the right source and at the right price. Quality and price are very important to any organization most to the purchaser, because quality is the fundamental have to decide and state in a simple but dear terms what exactly is needed or requisition from either the user department or from the purchasing office. The supplier should follow the application as required without alternation to suit him, this will go a long way to avoid problems and too many rejects.
Quality performance of a suppliers is measured by the numbers of rejects during inspection of the goods and this is rated according to the supplier performance during this process of examining the items, proper care has to be taken to ensure that no defective item which include food item, drinks, spares, house keeping wares is accepted, as this will gravelly affect the quality of goods served and performance of the floating bars and the rest of the mechanically operated machineries.
1.1 BACKGROUND OF STUDY
The Nigeria Bottling company PLC, producers of soft drinks or minerals in one of the numerous groups of companies owned by events Nigeria limited with their headquarters at Ikeja in Lagos state, which is controlled by an over all general manager.
The Owerri plant, which is the area of concentration, is located along Owerri- Onitsha road, off control post round about. The company produces assorted types of soft drinks ranging from coca- cola, fanta orange, fanta to nic, gingerale, club sock, spirt and krest bitter lemon.
The organization does not have a centralized purchasing department, the operate a decentralized system of purchasing. It has four different purchasing store limit as follows:
(1) The various raw materials section
(2) The spare and equipment section
(3) The various stationery section
(4) The finish product store.
The Chief raw material are sugar, chemical, crown cork and concentrates.
The company started operation in 1982 with single production line, producing only fanta orange and later an added six different products being the current number of products.
The company sales coverage in 10 states
The plant produced and average of 27 thousand creates of minerals per day and work on two shifts.
ADMINISTRATIVE
The company is made of five sections namely the production, the works section, the personnel section the account section and the finished/ sales section which is headed by a plant manger as the administrative officer.
The purchasing personnel does a lot of work on quality determination in Nigerian bottling company by inspecting the physical supply, by making sure that quality control procedures are applied, which checks the suppliers out put, defects are sorted out during this time especially on edible items assurance exercise.
The purchasing managers of Nigerian bottling company ensures that the ordering level of items are well maintained to avoid over stocking which leads to tiring down capital in stock, spoilage, linkage and also quick expiriting.
The also participate in making buying decision in the company.
1.2 STATEMENT OF THE PROBLEM
Quality determination should be regarded as the key activity that demands key attention. But un professional and low status accorded to purchasing in quality determination is some organization has put a lot of pressures and problem arising from the inadequate of many firms to meet the needs of their customers. The researches faced with the modalities for the improvement of the purchase of the right quality in these organization, is conducting the research to find out what the role of purchasing should be in determing quality knowing professionally, that purchasing should have a lot to offer in a situation such as this.
The research associates part of the problems with un professionalism in purchasing functions. Some of the question needs to be answered.
1.3 THE OBJECTIVE OF THE STUDY
The objective of this study is to prove that purchasing contributes in the achievement and growth of an organization and it should not be seen as all comers affairs where anybody can come and do anything the way he want it.
In many organization, such as Nigerian Bottling company Owerri, purchasing plays vital role in quality determination of materials, because every procurement job falls on it.
The research therefore presents the point that purchasing should strongly be involved in decision making on the quality of materials to be procured.
1.4 THE RESEARCH QUESTION
(1) Does purchasing has any role to play in the organization?
(2) Is purchasing contributing to the profit of the organization?
(3) Is purchasing recognized in this organization?
(4) Is the purchasing manager solely responsible for buy materials and other items for you organization?
(5) Is the purchasing manager professional qualified in such area or is he/she just qualified through job experience?
1.5 SIGNIFICANCE OF THE STUDY
This study intends to be beneficial to three main categories of people that is the organization the student and researcher.
TO THE ORGANIZATION: The findings of this study will acquaint it and shall also discover through this study a competent and well trained professional who can effectively manage and handle the task of buying or purchasing in the most economic manner hereby increasing the achievement and growth of the organization and reducing waste.
TO STUDENT: The finding of this study will enable the student to appreciate the course the more it will also make them to be more economical, whenever they are to purchase material they must purchase materials of high quality, but at low cost.
TO RESEARCH: The findings of this study will help the researcher the more, the advantages, achievement of purchasing supply to an organization. To know or to identify problems area in purchasing role function and develop strategies to solve them. The data gotten can be used for reference purposes.
1.6 THE SCOPE OF THE STUDY
The study is on the role of purchasing in quality determination of Nigerian Bottling company Owerri, Among many companies, Nigerian Bottling company was chosen because it is located at Owerri, due to time and other resources constraints, the staffs of the company whose works relate to this topic were interviewed.
1.7 THE LIMITATION OF TH STUDY
The time factor is limited for visit, revisits to the place of concern and write ups. The limited time is also coupled with none other course some with more credit loans than others. There is no way all of them can be combined without cheapting some financial problem involved is exorbitant which adversely affected the project.
For to get the necessary information needed, so many procedures were passed which hindered the smooth writing of this project and also Nigerian feel so reluctant to give out information to avoid their competitors form surveying them it become vigorous since there is no data bank where one can easily go for the collection of such information.
1.8 DEFINITION OF TERMS
PURCHASING: That function which is responsible for obtaining by purchase, lease or other legal means equipment materials, supplies and services required by an under- taking for use production
QUALITY: Is fitness, merit, excellence
RIGHT QUALITY: It is defined as the degree or grade of excellence which is appropriate for a particular purpose.
BEST QUALITY: It is highest quality or the highest grade of a particular item
DETERMINATION: The quality that makes you continue trying to do something even when it is difficult
Role Of Purchasing In Quality Determination:
The role of purchasing in quality determination is significant in various industries and organizations. Purchasing, also known as procurement, plays a crucial role in ensuring that the products and services acquired meet or exceed the desired quality standards. Here are some key aspects of how purchasing influences and contributes to quality determination:
Supplier Selection: The purchasing department is responsible for identifying and selecting suppliers. Choosing reliable and reputable suppliers with a history of delivering high-quality products and services is essential. The quality of inputs and materials provided by suppliers directly impacts the quality of the final product.
Quality Specifications: Purchasing professionals work closely with other departments, such as quality control and engineering, to define and communicate the required quality specifications for the goods and services they are procuring. These specifications serve as the basis for evaluating supplier offerings.
Supplier Auditing and Assessment: Purchasing teams often conduct supplier audits and assessments to evaluate a supplier’s capabilities, quality management systems, and adherence to quality standards. These assessments help in determining the supplier’s ability to consistently deliver quality products or services.
Negotiating Quality Terms: During contract negotiations, purchasing professionals often negotiate quality-related terms and conditions, including quality control processes, product inspection requirements, and quality assurance measures. Clear and well-defined quality terms are crucial to ensuring that suppliers meet the desired quality standards.
Quality Assurance and Control: Purchasing departments are responsible for monitoring and ensuring that suppliers adhere to agreed-upon quality standards throughout the procurement process. This may involve ongoing communication, inspections, and performance evaluations.
Continuous Improvement: Purchasing plays a role in fostering a culture of continuous improvement within the organization. They can collaborate with suppliers to identify opportunities for quality improvement, cost reduction, and innovation in product or service offerings.
Risk Management: Purchasing professionals are also responsible for identifying and mitigating risks that could impact product or service quality. This includes assessing the financial stability of suppliers, evaluating geopolitical risks, and planning for contingencies.
Cost-Quality Trade-offs: Purchasing decisions often involve trade-offs between cost and quality. Purchasing professionals must strike a balance between acquiring quality products or services while managing costs effectively.
Communication: Effective communication between the purchasing department and other departments, such as production, quality control, and product development, is essential to ensure that everyone is aligned on quality standards and expectations.
Supplier Development: In some cases, purchasing teams may work closely with suppliers to help them improve their processes and quality standards. Supplier development programs can lead to long-term improvements in product or service quality.
In summary, the purchasing department plays a crucial role in determining and maintaining the quality of products and services within an organization. Their responsibilities include selecting reliable suppliers, defining quality specifications, monitoring supplier performance, and driving continuous improvement efforts to ensure that quality standards are met or exceeded. Effective collaboration between purchasing and other departments is essential to achieving and maintaining high-quality standards throughout the supply chain.