NEED FOR EFFECTIVE PLANNING AND CONTROL IN PURCHASING ACTIVITIES (A CASE STUDY OF ROKANNA INDUSTRIES)
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Abstract
And the reader will find the analyses very logical which will portray the state of procurements on the entire organization or company. This work is arranged in five chapter, chapter one introduction the works background, objective, scope, etc. chapter two contains the review of related literature of other authors, chapter three is the method use to gather, information for this research work, chapter four analyses and presentation the data for this project.
Finally, chapter of this work contains the summary of finding conclusion and recommendations.
Table Of Content
Approval page
Dedication
Acknowledgment
Abstract
Table of contentCHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problems
1.3 Objective of the study
1.4 Research question
1.5 Statement of hypothesis
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Definition of terms
CHAPTER TWO
2.0 literature review
2.1 Definition of planning and why it is used purchasing activities
2.2 Reason fro planning and control and control
2.3 Why purchasing should be involved in planning and control
2.4 The need fro planning and control in purchasing
2.5 Steps in planning/decision making in purchasing
2.6 Benefit of planning and control in purchasing activities organization
2.7 Coordination of efforts
2.8 Preparation fro change
2.9 Development of performance standard
2.10 Development of manager
2.11 Why planning and control is necessary
2.12 Roles of purchasing in corporate and control
2.13 Roles of purchasing in corporate and planning
2.14 Why plans fails
CHAPTER THREE
3.0 Research methodology
3.1 Introduction
3.2 The research design
3.3 The questionnaire design
3.4 Population/sample selection
3.5 Source of data
3.6 Primary source
3.7 Data collection techniques
3.8 The survey
3.9 Observation
3.10 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Data analysis
4.3 Hypothesis testing
CHAPTER FIVE
5.0 Summary, conclusion and recommendation
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
References
Appendix
Chapter One
1.1 BACKGROUND OF THE STUDY
The need for effective planning and control in purchasing activities in any business organization be it small or, large. In any purchasing activities effective planning and control is the fundamental and primary managerial function for any specific operation which made it essential for successful strategy.
Implementation and strategy evaluation because all other element of management depend upon good planning.PLANNING AND CONTROL CONCEPT
The only thing certain for the future of any organization is change and planning, is the essential bride between present and there future.
Planning consist essentially of deciding in advance what you want to do and the w ay you are to do it. Planning is the application of rational with the aim of making effective and efficient to the need and goals of the organization. On the other hand, control as a management function that concerns itself with taking the necessary preventive or corrective activities to ensure that the organization effectively and efficiently as possible. The main objective of planning and control is to ensure that the operations effectively and produces and services needed by the organization to carryout this objectives are available, in the right quality, at the right time and at the right level of quality. Every organization requires planning and control but the level of control and planning very from one organization to another.
Planning and control activities the system, procedures and decisions which bring these entities together. In other words, planning and control connect up the resources of the firm that are capable of supplying goods and services with the demands place upon the firm. Normally, they do this, through a set of systems, procedures and decision methods which products managers can see in the on going running of their firms operations.
1.2 STATEMENT OF THE PROBLEM
The need for effective planning and control in purchasing activities has not been fully understood and carried out by many services oriented transport companies. It is in this study of how, Rokana industries limited in terms of effective planning and control system.
Some of the problem encountered by the industries are as follows.
1. Late delivery of materials to the sub- store form the central stores. This is because the purchasing units located at different sub store were not given the authority to buy most of the spare parts needed accept minor and less costly ones.
2. Non- employment of professional in the field, the staff of the company stores has no professionals who can be highly competent. In the execution of the Job. This is due to the fact that there exist no professional who read purchasing and supply management.
3. The economic situation in the country has serious effect on the quality of planning and control in the organization.
4. Many Organization lack the knowledge of work station design and equipment selection in prosecution.
5. Most firms depot the concept of I will\” when you lose attitude this result into poor project execution.
1.3 OBJECTIVE OF THE STUDY
In the light of the statement of the problems this study aim at a achieving the following objective.
1. To create serious awareness in the mind of firms and their employees on the serious need for effective planning and control in purchasing activities.
2. To make people appreciate the importance of effective planning and control in purchasing activities in organization.
3. To see whether the need for effective planning and control in purchasing activities can be improved through empowerment.
4. To suggest other ways of improving the need fro planning and control in purchasing activities.
5. To investigate the impact of the economic on the need for effective planning and control in purchasing activities.
6. To create the necessary awareness on the importance of empowering those who are involved in the planning and control in purchasing activities through treating seminars etc.
1.4 RESEARCH QUESTION
1. Does effective planning and control in purchasing activities
2. Does effective planning and control in purchasing helps to achieve purchasing objective?
3. Is planning and control important in purchasing?
4. Will setting up of a separate section for planning and control activities lead to more efficient management of the purchasing activities?
5. Will the use of goods step in planning and control improve the purchasing of materials?
1.5 STATEMENT OF HYPOTHESIS
A hypothesis may be defined declaration statement of a relationship between two or more variable used for better understanding of the problems of the study.
The null and alternation hypothesis has been select by the research to find ways of solving the problems and in carry oil this research, the research is using both (H0) and alterative (H1) to find out the role or the need for effective planning and control in purchasing activities, the assumption include the following.
H0: Effective planning and control purchasing activities does not help in achieving purchasing objective
H1: effective planning and control in purchasing activities help in achieving purposing objective.
H0: There is no need planning and control in purchasing
H1: There is need for planning and control purchasing
16. SIGNIFICANCE OF THE STUDY
The primary significance of this study is for partial fulfillment of the requirement for the award of higher national Diploma (NHD) in purchasing and supply.
The secondary significance is also geared towards exploring the academic relationship between classroom, theory and what is practically attainable in carefulness in choosing the research topic .
The third significance of the is to help and guide the younger ones on what to do when writing project or carrying out any research.
The forth significance of the project is to guide industrial purchases to effective and efficient of planning and control to enable them to obtain the\” best buy which is the ultimate goal of the purchasing function.
1.7 SCOPE OF THE STUDY
This study was executed in Rokana industries Plc Nekede Owerri. Data and information were obtained from the manger and supervisor.
There is no intention in this research work to cover all of Rokana industries plc and their method of operations as such will be above the scope of this study.
In this study we will concentrate on the effective planning and control in purchasing activities of the Rokana industries Plc, identifying alternative ways of planning and control emphasizing its needs in the purchasing areas and finding the areas that will generate higher profit and goods sources of materials.
1.8 LIMITATION OF THE STUDY
Infact, there cannot be any successful research of this magnitude without encountering some difficulties. This project work is surrounded by some limitation, which indicates that it was not hitch free.
The following were some problem that was encountered in carrying out the following work.
1. Difficulties in securing some vital documents containing some valid information relating to the subject mater of the research.
2. The lukewarm attitude of some offices who were supposed to attend and give reasonable response.
Some of these interviews failed to give adequate information believing that it will reveal their lapses and loopholes.
3. The degree of time consumed at the expenses of lectures and other important assignments. This cannot be over emphasized.
4. Finally, finance was another-constraint for the researcher, Normally, a considerable amount of money, for the gathering of information, typing of manuscripts.
1.9 DEFINITION OF TERM
Some of the major terms used in this project work necessary because these terms have their own professional meaning in purchasing other than the grammatical definition.
1. Material: these are the parts or items used in the production of their material or product.
2. Quality: This is a goods materials or product that person or company need.
3. Quantity: This is the amount or volume to produce or it is the demand for products by users.
4. Planning: This is the art of arranging thing in order to achieve its purpose.
5. Control: This is to ensure that operation run effectively and produces product and services.
6. Purchasing: This is the art of buying materials from the market.
7. Supplier: Individual who main work is to supply goods and materials to the buyers.
8. Company: A group of firm that engaged in the some business.
9. Plant: The actually of production business
10. Cost: The total amount of money that need to be spending in the organization.
11. Time: This may be defined as specifically controlled through work scheduling in organization
12. Procurement: The include claries perform by purchasing as well as additional function materials supervisor and management, inventory control receiving inspection and sewage operation.
13. Price: The may includes all the sacrifice made to acquire a given product both monetary and monetary.
14. Pricing: This is the activates involved in setting the price for which a product will be said or deciding how much to a change fro something i.e we say that it is an on going activities that can hardly be completed.
15. Vendor: An outside suppliers of raw material suppliers equipment or services needed in the operation of an organization
16. Strength: It is the determination of the basic long term objective of enterprise and adaptation of course of action and allocation of resources necessary to achieve these goals no the organization presented means or approach to achieving its objectives.
17. Acceptance: This may be defined as promise to lonour and obligation to pay or to deliver.
18. Competition: A person or an organization that competes against other especially in business.
19. Contract: To make a legal agreement with somebody, fro them to do work for you or provide you with services.
20. Management: This may be defined as the act of running and controlling a business or similar organization.
21. Production: this is the art of transforming or converting raw materials into finished product or finished goods
22. Fixed: Saying the some not changing or able to change.
23. Value: It is a professional judgement about how much money or something is worth. It could also be the quality of being useful to important
24. Competition: A situation in which people or organization with each other for something that not everyone can have or to find out who is best
25. Organization: Is it a group of people from a business, club together in other to achieve a particular aim
Chapter Five
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 INTRODUCTION
This chapter has been described as the most intellectually demanding part of the whole research.
This is because evaluate solution and objectives and stated there. In view of this, the research has therefore, exercise reasonable care in drawing.
Conclusion, making recommendation and summarizing the project as follows.5.2 SUMMARY
This research was preoccupied with an in depth examination of the need of effective planning and control in purchasing activities.
Rokana was used as a case study and the primary data that was used was gotten from questionnaire, personnel interviews and observation at Rokana.
From this research, it is obvious that.
– Effective planning and control of purchasing is the only way a company can fulfill their objective
– Setting up separate section for planning and control activities will go a long way to the effective management of the purchasing activities.
– With the help planning option will be written down and strategies will be selected for the attainment of these objective.
-Planning forces a firm to link its decision making process to its super ordinate values and mission and to establish goals and objectives.
– With careful planning and control a firm can both anticipate and influence up coming events.
– Planning and control enables an organization relate effective with environment.
5.3 CONCLUSION
My mainly effort through the in depth research of the need for effective planning and control in purchasing activities case study of Rokana Nigerian limited Owerri has given me the view to say that success of any organization or company depend on the perfect role effectives planning and control enables a company to relate effectively with its environment.
Effective planning and control is a continuous function that is necessary in a company because it eliminate or reduce managers inclination to guesses rule thumb inches in decision making and instead related them with logic, reason and rationality.
Finally, in conclusion and control is a leading function of management. This is because planning and control determine the premise and direction of activities in the organization. TO assist managers enhance their planning skill management experts have recommend among other the application of scientific decision making process and understanding that planning and control is a continuous exercise which has to be follow in systematic objective and step by step manner, and that is the main role that effective planning and control has to give to any business organization. I therefore put forward the following recommendation.
1. The above finding on the problem of the for effective planning and control in purchasing activities are that of non recognition. The purchasing function was deemed so common and unimportant that it was merged with the administration department. During the effective planning control preparation and execution of effective process is entrusted in the hands of non- professional.
2. In Rokana Company, the purchasing department should be in change of all the negotiation to the extent that it will required qualified contract and purchasing officers.
3. Instructions needed fro effective operation of store are got from administration department instead of from the purchasing department until the need to employ adequately trained staff to handle the purchasing and store functions is recognized in Rokana industry company limited. The system will continue to be poor.
4. This result form the fact the identification of areas of improvement in any organization is usually perpetrated from capable staff at all levels of management Negotiator and supplier appraisal can be explored by hailed negotiation to improve profitability.
5. In view of this, effort were made by the researcher during the finding to look into this project work, in which he finds out that the need for effective planning and control is one of the major tools usual by many organization to determine a reasonable purchasing contact
6. In view of the improper application of the need for effective planning and control in purchasing activities the necessary effort has been made by the researcher to took into various issue on oversee such as poor effective in all the effectively planning and control from the finding of the hypothesis poor effective affect the need fro effective planning and control in purchasing activities.
7. Finally, it is important to note that the need for effective planning and control is very important in every organization who involve in any purchasing activities. The need for effective planning and control enable the parties resolve to have fill discussion on relevance matters which require a proper conclusion before engaging into purchasing activities.
8. In all organization that have not giving due required to purchasing unit should also by developing an adequate standard purchasing unit who will be responsible to perform the required function of determining the best need for the effective planning and control that will assist in the profitability objective of the organization.
5.4 RECOMMENDATION
Long term forwards and planning and control enables managers to adequate prepare to deal with rapid changes in their business environment. The present d ay business leaders must be able to anticipate changes and their direction and in addition develop strategies to handle each situation as they occur to create threats or opportunities for the business. With this view and by the effort of the research some recommendations have to be stated in accordance with the activities of the Rokana Nigeria limited
In some company or organization effective planning and control and decision making becomes very difficult for some managers with this instance the researcher herby make those recommendation.
1. Managers ever those that are low in skill must be properly educated and trained in the area of planning and control making right decision.
2. Management should apply necessary steps when planning and deciding between alternative as decision making is a creative think requiring exceptional diligence
3. Simplification of procedure improved rules of procedure should be established.
3. Simplification of procedure improved rule of procedure should be established.
3. Management value system should be improved in which enough patience should bulk into their decision
5. Many managers are impatient this is the reason behind the that no new decision is given time enough to bear fruit they have to avoid that.
6. When a decision is taken, one has chance of succeeding but if you don\’t take a decision you have already failed. This will help to ensure continuous of the business and assists to grow higher to a large scales level.
7. The company should have a good purchasing department so that they can consider the necessary to adopt efficient method solving the problems of the company.
8 Finally the researcher is of the opinion that centralization of purchasing function should be the best potion fro the Rokana industry company limited despite its many braches. This is essential for the attainment of both optimum operation efficiency and maximum profit.
