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)

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)

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.

Table Of Content

Approval page
Dedication
Acknowledgement
Abstract
Table of contentsCHAPTER 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

Chapter One

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?

1.5 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.

Chapter Five

SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
This research which studies the purchasing role in quality determination (a case study of ANAMMCO) revealed some data. The analysis and interpretation of data collected, and the final answer to the following findings,
(a) It was found out that the internal procurement of the organization is handled by the professional but with the influence of non-professionals (e.g. management and vendors).
(b) It was also discovered that another section within the purchasing department handles the overseas procurement in conjunction with their hand quarters.
(c) It was observed that the organizations purchasing department handles only purchases within the range of N5, 000 to N250, 000 internally. It was also confirmed during interview that all procurement above N250, 000 are handled by the organization management.
(d) The specification of items required are based solely in the recommendation of the user department and where the buyer deviate from this specification, the item will be rejected upon specification.
(e) The organization has good logistic infrastructures, hence there is no problem in the movement of raw materials and finished products.
(f) Due to interference from top management on the purchasing duties, it has caused the organizations some huge losses, which are available if the purchasing department was given the free hand to run the department.5.2 CONCLUSION
Having examines the purchasing role in determining quality and having observed the above findings, these conclusions are quite obvious.
The organizations does not recognize the importance of purchasing role in determining quality regardless of its enormous purchasing duties. Although the organization has a well established purchasing department but the buyer employed are kept far from taking some purchasing decisions especially while it has to do with quality or technical items, therefore, the functions are kept in the hand of non professionals who know little or noting about professional purchasing of the right materials.
These non-professionals learn through train and error. As a result in the process, the company keeps on recording losses that could have been avoided through the adoption and the establishment of a good quality control measures. The fact that an employee is a senior officer does not give him that capacity of performing well outside his field of specialization. The board of directors most a times based the appointment of officials procurement committee only on the fact that they are senior staff and not on the usefulness to such body or to the job to be pursued. This also happens when a non-professionals handles the procurement of a company.
Since specification of procured materials are based on the recommendations of the users department of the company, it can be assumed that procurement of right quality ma9terials can easily be achieved.

5.3 RECOMMENDATIONS
Based on the findings of this research, the researcher deems it necessary to take the following recommendations:
The organizations should be positively affected if the companies purchasing functions should be undertaken by a specialized department.
This department should be headed by the Chief procurement officer (CPO) or the purchasing manager (PM) as time case may be. Who will be trained a purchaser? Preferably a holder of the institute of purchasing and supplies professionals qualification. This officer should be in the grade level fourteen of fifteen. The department so stop should work hand 0in hand with the heads of other section in their procurement of materials.
However, they should handle all commercial respons0ibilities while other sectional head should pay advisory role by giving him all information about the technicalities of all required materials.

Work Description
Chapter One of Role Of Purchasing In Quality Determination And Control In An Organization . Order and download complete “Role Of Purchasing In Quality Determination And Control In An Organization ” project work if you need chapter one to chapter five of this work. Chapter One of Role Of Purchasing In Quality Determination And Control In An Organization contains: Introduction, Background Of The Study, Statement Of The Problem, Objectives Of The Study, Research Questions, Significance Of The Study, Scope Of The Study, Limitation Of The Study And Definitions Of Terms
Chapter Two of Role Of Purchasing In Quality Determination And Control In An Organization is available. Order and download complete “Role Of Purchasing In Quality Determination And Control In An Organization ” project work if you need chapter two of this work. Chapter Two of Role Of Purchasing In Quality Determination And Control In An Organization contains: Literature Review, Introduction, What Is Quality, How Quality Is Determined, The Contribution Of Purchasing To Quality, Quality Assurance And Quality Control , Inspection Methods, Rejection Procedure , Purchasing The Right Quality, How Quality Is Determined And Management Of Responsibility In Quality Determination
Chapter Three of Role Of Purchasing In Quality Determination And Control In An Organization is available. Order and download complete “Role Of Purchasing In Quality Determination And Control In An Organization ” project work if you need chapter three of this work. Chapter Three of Role Of Purchasing In Quality Determination And Control In An Organization contains: Research Design And Methodology, Introduction, Sources/Methods Of Data Collection, Population And Sample Size, Sample Techniques , Validity And Reliability Of Measuring Instrument And Method Of Data Analysis
Chapter Four of Role Of Purchasing In Quality Determination And Control In An Organization is available. Order and download complete “Role Of Purchasing In Quality Determination And Control In An Organization ” project work if you need chapter four of this work. Chapter Four of Role Of Purchasing In Quality Determination And Control In An Organization contains: Presentation And Analysis Of Data , Introduction And Presentation Of Data
Chapter Five of Role Of Purchasing In Quality Determination And Control In An Organization is also included in the full work. Order and download complete “Role Of Purchasing In Quality Determination And Control In An Organization ” project work including chapter five. Chapter Five of Role Of Purchasing In Quality Determination And Control In An Organization contains: Introduction, Summary Of Findings, Conclusion, Recommendation, References And Appendix

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