Project Materials

ROLE OF PURCHASING IN QUALITY DETERMINATION AND CONTROL IN AN ORGANIZATION

ABSTRACT

This project effort focusses on the role of purchasing in quality determination. Chapter one covers the project’s introduction, including the background of study, statement of problem, purpose of study, scope of investigation, and so on. The second chapter examines the literature review, which focused on the definition of the purchasing role in an organisation and how quality is decided in an organisation. The chapter tree delves into research technique, covering data sources, sample size, and other topics. The fourth chapter emphasised data presentation, analysis, and interpretation, as well as hypothesis testing. Chapter five is the final chapter. It covered the summary of findings, conclusions, recommendations, and potential areas for future research.

Chapter one

INTRODUCTION

1.1 Background of the Study

Purchasing is a managerial job whose primary goal is to receive the correct quality of material in the right quantity, at the right time, from the right source, at the right price. These must be completed in the most economical manner possible in order to provide the best value for money.

The purchasing department plays an important role in determining quality. Buyers have the management right and obligation to dispute defined quality standards when they believe they are unachievable, but they do not have the right to change them without engaging the designer, user, or customer where necessary.

Change involves requesting that the quality stipulation be considered in respect to the item’s cost, availability, and reliability. Purchasing can help determine quality in a variety of ways.

(a) It could be a member of [the committee in charge of specifying needs].

(b) It can advise on costs and offer alternative materials.

(c) It can provide advice on the availability of materials of specified quality and on a continual basis.

(d) Purchasing can also provide advice on the suitability of the item requested for a specific purpose.

The Anambra Motor Manufacturing Company plc was founded in July 1980 by the Federal Government of Nigeria in collaboration with various governments and states, including Anambra, Rivers, and Imo, as well as private persons who own shares in the business.

Mr. Hoh was the inaugural managing director, and Sir Joe Nwankwo served as the first chairman. The company’s goal was to make Mercedes (MB) trucks and buses.

However, ANAMMCO, as it was fondly known, has recently expanded into the construction of individually specialised vehicles such as price fighting and garbage disposal vehicles, troop carriers, billion vans, and so on.

The enterprise has created jobs for many unemployed people in the state and the country as a whole. Some of the company’s most serious issues include the management of forced exchange allocation, also known as tokunbo or Belgium, which is significantly cheaper than Mercedes-Benz (MB) vehicles, the most stringent economic measures to deal with, and eventually, the global economic meltdown.

In fact, purchasing objectives were initially defined as the acquisition of goods and services of the appropriate quality, quantity, timing, origin, and cost. Especially in the manufacturing industry, which is receiving more attention than ever in an effort to reduce waste caused by improper purchasing.

In this context, quality, quantity, source, time, and price are all important since quality is essential. In other words, pricing is established after the issues of quality, timing, and source have been resolved.

There are various elements to consider when a company wishes to keep its standard alive. The first step is to decide and express in simple but clear terms what is wanted or required.

Taking into account the intended application, the purchaser or specification must have been obtained without unnecessary changes to suit its providers

. Second, a good specification should be accurately prepared for vendors. As a result, the chosen supplier must be made aware of the specifications that the organisation requires. Third, if the specification must be made, keep in mind that errors may arise during the procedure.

This will help to monitor the supplier’s output and reduce delivery of faulty or defective products. Fourth, purchasing professionals are responsible for monitoring the physical supply chain. However, some organisations that want to improve their own quality claim that quality is everyone’s duty.

However, it is still advisable to choose one person as the quality control manager (QCM), whose role it is to inspect and report on all goods delivered to the company to determine whether they fit the company’s specifications.

All of these measures are put in place to ensure that a provider provides the highest quality. The British Standard Institution produced BS5779 “A good to the operation and evaluation of quality assurance system” in December 1984 as a useful guide to practices. This was founded on the unique difficulty of car manufacturers desiring to sell their products in the United States of America, and it provides a specialised market for industrial goods and services.

It could also be used to distribute a company’s assets in order to ensure the quality of goods and services purchased for their organisation to deal with. The standard is issued in three independent parts, each dealing with: Part one deals with the final inspection system. Part two deals with a complete examination method for complicated materials. Part three: Explains the entire structure of the quality control system, with the final inspection system outlined in part one being the easiest and least expensive to implement.

1.2 Statement of the Problem

Industries are responsible for providing high-quality goods at a low cost that citizens may purchase. Materials are so important in this regard that no result could be reached without a good procurement system;

therefore, the purchasing department must have a solid grasp of quality control and a better awareness of its specification requirements.

The researcher, faced with the challenge of developing modalities for improving the purchase of the right quality in three industries, conducted research to determine what the role of purchasing should be in determining quality, knowing that professional purchasing should have a lot to offer in such a situation. The analysis linked part of the problem to unprofessionalism in the purchasing function.

Some of the questions that must be asked and evaluated are as follows:

(a) What are the proper quality materials delivered at the right time to meet the demand?

(b) How is quality measured?

(c) Who has final say on quality? Purchasing, engineering, or user departments.

(d) Are the people in charge of quality control experts in the field?

(e) Are quality tasks computerised?

1.3 GOALS OF THE STUDY

This study is being conducted to investigate academic excellence in relation to classroom theory and what is specifically attained in industries and government establishments. As a result, the project topic was carefully chosen.

1.4 RESEARCH QUESTIONS

In order to understand the role of purchasing in quality determination and control in the manufacturing business, the researcher posed these questions.

(a) How is quality measured?

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

(c) How can high-quality resources be purchased at the appropriate time to suit the organization’s needs?

(d) Who has final say on quality?

(e) Does quality increase profit in the manufacturing industry?

(f) What forces drive industries to produce the highest grade materials?

(g) What phases are involved in ensuring the quality of incoming materials and component parts?

(h) Must quality be included into the organization’s system?

(i) Are quality tasks computerised?

(j) In the industrial industry, quality is procurement.

How are procedures put in place to ensure quality control?

1.5 Significance of the Study

Given the significant expenditure on materials used in organisations, it is critical that the role of purchasing be clearly defined in the determination of quality.

The objective of this study is to produce a viable and meaningful correction in order to clearly determine what the function of purchasing should be in connection to quality issues in any organisation.

It is also important in this study to raise awareness about the advantages of professional purchasing in our industry. Furthermore, to foster a strong association between established institutional purchasing red tape and professional purchasing methods.

This study also aims to demonstrate how effective purchasing involves quality considerations. It is also intended to show how quality is measured in ANAMMCO.

1.6 SCOPE OF THE STUDY

The study’s scope is supposed to include at least one-third of the total number of industries in the state (Anambra), such as Nigeria Bottling Company (NBC) Onitsha, General Cotton Mill (GCM) Onitsha, Liver Brothers Industry Onitsha, and so on; however, due to financial and time constraints, the researcher used only the notable industries in Anambra, now Enugu state, which the researcher is very familiar with.

1.7 Limitations of the Study

This research effort is handicapped by a number of factors, which, if available, would increase this project work and make it more dependable. These factors are as follows:

(a) Time: This is one of the factors that influenced the project’s outcome. The time available to do this work is limited and does not allow for a thorough analysis of research.

(b) Finance: Because the researcher is a student, he must limit himself to available researchers and structure the project work.

(c) Transportation: This is another factor that prevents the researcher from carrying out his research effectively. At times, the researcher may board a bus from Owerri to Enugu and vice versa to make his study job a dream come true, exposing himself to risk.

1.8 Definition of Terms

Purchasing: This department is responsible for defining needs, finding suppliers, agreeing on terms, placing orders, and receiving products and services.

Quality refers to an item’s ability to serve its intended purpose or function in accordance with specifications.

A store is a location where objects or resources can be stored for later use.

Placing of order: In purchasing, the buyer uses the term “placing of order” to inform his suppliers of the type of product or item that he requires. It appears on paper in the form of an invoice or receipt.

Negotiation: This is the skill of gaining a common understanding throughout Belgium on the importance of a behaviour such as delivery. Specific material pricing and form.

Procurement is a purchasing term that is used for buying and selling. It is usually used in the exporting and importing.

Vendors are those who sell little items that can be transported in a cart or something similar. For example, a man who sells newspapers or periodicals is a vendor.