Effect Of Material Inspection On Product Quality In Power Holding Company Of Nigeria (PHCN), Kaduna

Project and Seminar Material for Purchasing and Supply PS

Effect Of Material Inspection On Product Quality In Power Holding Company Of Nigeria (PHCN), Kaduna

Table of Contents

Chapter One:


  • 1.1 Background of the Study
  • 1.2 Statement of the Problems
  • 1.3 Objectives of the Study
  • 1.4 Significance of the Study
  • 1.5 Scope of the Study
  • 1.6 Research Questions
  • 1.7 Definition of Terms

Chapter Two:

Literature Review

  • 2.1 The Concepts of Specification and Standardization
  • 2.2 Objectives of Specification and Standardization
  • 2.3 Developing an Effective Specification
  • 2.4 Inspection as a Mechanism for Service Assurance
  • 2.5 Types of Inspections
  • 2.6 Defective Materials Prevention Approach
  • 2.7 The Concept of Quality Products / Service
  • 2.8 The Effects of Inspection on Quality Products and Services

Chapter Three:

Research Methodology

  • 3.1 Area of the Study
  • 3.2 Research Design
  • 3.3 Population of the Study
  • 3.4 Sample and Sampling Procedure
  • 3.5 Instrument for Data Collection
  • 3.6 Administration of the Instrument
  • 3.7 Techniques for Analyzing Data

Chapter Four:

Data Presentation and Analysis

  • 4.1 Presentation of Results

Chapter Five:

Summary, Discussions, Conclusion and Recommendations

  • 5.1 Summary of Procedures
  • 5.2 Discussion of Findings
  • 5.3 Implications of Findings
  • 5.4 Conclusions
  • 5.5 Recommendations
  • 5.6 Suggestions for Further Study
  • Bibliography
  • Appendix

Chapter One


1.1 Background of the Study

Philip Crosby in his book “Quality is free” summarizes the effect of inspection in the following statement:

“A prudent company makes certain that its products and services are delivered to the customers by a management system that does not condone remake, repairs, waste or non-conformance of any sort. These are expensive problems, they must not only be detected and resolve at the earliest moment, they must be prevented from occurring at all”.

Product quality as a strategy for competitiveness has become the focus of going concerns today, be it a manufacturing or a service industry. Be that as it may, quality product or service goal in any organization will be difficult to realize without the watchful eyes of inspection. Materials outsourced or insourced as the case may be either as raw materials, components, spareparts or maintenance repairs and operation items, must be subjected to thorough examination to ensure that they are the right materials of the correct quality according to agreed standards and specifications. This is because the slightest deviation from standards, oversights of any defect in in-coming or insourced materials results to numerous and serious consequences on the life of the organization. As a result of these consequences, organizations are forced to set in place a system to ensure that only materials of quality are allowed to come into the organization. This is achieved always through the mechanism of inspection.

The responsibility for inspection in an organization differs from organization to organization depending on the nature, make up and policy of the organization in question. The purchasing or procurement or materials department however plays an important role because they are responsible for the sourcing of the materials used by the organization.

Inspection depicts the general idea and concept which signifies the ascertaining and determination of quality or conformity of sourced materials or services to established standards and specification. This, therefore brings to mind the fact that inspection and quality can hardly be discussed separately without reference to one. It is a major tool for the determination of quality. This study therefore, shall focus on specification, standardization, inspection and quality control and assurance.

1.2 Statement of the Problem

Oversights and deviation from standard for supplied materials due to the inability of organizations to closely inspect these materials remains the bane of most government agencies and parastatals failure. These problems are further exacerbated by the overall management approaches and attitudes to these issues. These has resulted to continued accurate and epileptic power supply in the state which are often blamed on the failure of installed equipments such as transformers and cables.

The choice of Power Holding Company of Nigeria (PHCN) Kaduna is to examine the issue arising from these. The question that is asked is; what measures are put in place in the organization to determine the needs for materials and specifications? Again, what mechanisms are put in place by the organization to ensure that purchased or outsourced equipment and materials are properly inspected for quality?

1.3 Objective of the Study

Because of the effect of substandard materials allowed into the organization on the quality of services rendered by the organization, the major objective of the study is built around the determination of the effectiveness of the inspection programs employed by the organization.

The study is therefore, aimed at:

  1. To determine if inspection is carried out.
  2. To determine how specification is communicated to suppliers.
  3. To determine how substandard materials are treated.
  4. To determine the method(s) of inspection.
  5. To determine the effectiveness of the procedure.

1.4 Significance of the Study

The significance of this study is enormous. First, the researcher will be the first beneficiary as it is a prerequisite requirement in partial fulfillment for the award of Higher National Diploma [HND] in the Department of Purchasing and Supply Management, Kaduna Polytechnic, without which the researcher cannot graduate.

Secondly, it will serve as a store of knowledge and guide for which future researchers can consult. Students will also benefit as it will help to expand their scope of knowledge.

It will also benefit the organization understudied, as they can utilize it to improve or ensure that defective materials, substandard materials do not enter the production process.

Finally, the general public will also gain from its depth to utilize against purchases or orders they will place from time to time since everyone buys one material, product or components or parts at times.

1.5 Scope of the Study

The focus of this research work is on the effect of inspection on the quality of services in Power Holding Company of Nigeria (PHCN), Kaduna, located in the heart of Kaduna, along Ahmadu Bello Way, Central Area Kaduna. The periods of 2009-2012 were considered and concern was given to the Material Management (Purchasing and Store), quality control and the inspection departments of the organization.

1.6 Research Questions

  1. Where in the organization are material supplied inspected?
  2. How are materials required specified ?
  3. How are substandard materials treated?
  4. What are the methods of inspection?
  5. How effective is the inspection procedure?

1.7 Definition of Terms


This means a company an organization or an individual that can agree to supply or release goods or services to a buying organization.


This is another term for a supplier.


Anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy needs.


This is a detailed description of materials needed from a supplier, which the supplied item must conform to.


This is the process of formulating and applying rules for an orderly approach to a specific activity.


A standard is the result of a particular standardization effort approved by a recognized authority.


A defect is where a component does not meet its requirement or specification and needs to be replaced or repaired.


This is the degree to which a set of inherent characteristics fulfill requirements.


This is the examination of a work product or service or materials to determine whether it conform to standards or not.


This is defined in this context as a set of processes.


This means efficient utilization of available resources at economic cost.


This is a person who acquires goods at a particular price without due consideration to the technicalities involved, but rather acquires what he wants.

Chapter Five:

Summary, Discussion, Conclusion and Recommendation

This chapter presents a summary of the entire project work to highlight the findings, discussed it and its implications, to allow for a perspective conclusion and make practicable recommendations to management.

5.1 Summary of Procedures

The title of this research is “Effect of Materials Inspection on Product Quality in Power Holding Company of Nigeria (PHCN) Kaduna”. The first chapter of the study presents a concise introduction of the subject under study; it identified problems related to the study that prompted the researcher to conduct the study to provide successful remedies. The researcher here also discussed the objectives; significance and scope of the study, research questions and definition of terms used in the research were also discussed.

The second chapter is a review of literature. It gives an overview of the written work of different scholars and authors in the field of materials management and quality gurus. A clear but concise perspective of inspection and its effect on quality of products/services were dealt with in conjunction with other terms that enhances materials inspection and quality based on the perspectives and works of some school of thoughts.

The third chapter of the research deals with the area of study. These are units in the organization where the research conducts the research work. These units are the stores, purchasing and quality control departments where the population of the study and the sample size are drawn from.

The population of the study is 100 and the sample size is 30. 50 questionnaires were distributed randomly out of which 30 were returned by the respondents. Using the likert’s four point rating scale approach with a mean score of 2.5 as cut off mark, the research analyzed the data collected from the respondents.

In chapter four, the data collected from the respondents in consonant with the research questions formulated in the first chapter were presented and analyzed. The results from the analysis are compared with the cut off point of 2.5 for the purpose of decision of either to accept or reject.

5.2 Discussion of Findings

In this section, the researcher concisely but clearly highlighted major findings in conjunction with research objectives and advancing possible interpretations of findings based on the research questions and relating them to existing literature. The responsibility of inspecting incoming (purchased) materials in Power Holding Company of Nigeria, Kaduna which stems from specification and standardizing and how to hope the quality of purchased materials alongside quality of purchased materials.

In this regard, the findings suggest that the respondents agrees that for inspection to be effective materials have to be clearly specified without ambiguity, taking into considerations standards sets at various level. It also has to be done collaboratively if effective specification will be done and if inspection will be effective.

The method of inspection used by the organization will also guarantee quality of purchased materials, however, the approach the organization adopts in treating defected or substandard materials is also crucial in achieving quality of products and services.

5.3 Implications of the Findings

In reference to the findings of the study, there are a number of implications for the organization.

The findings reveals that the organization inspect its purchased materials by itself, using its own staff at the suppliers factory and at delivery. The implication of this is that the organization gives no thoughts to imported items or incur huge cost of inspection to travel abroad to inspect the materials themselves, experts are not also involved.

The findings further reveals that specification of materials is effective although this can be further improved upon by implementing early supplier involvement, early supply management involvement for a balanced specification.
Findings also shows effectiveness in the way it treats substandard materials, however arranging with suppliers for disposal of substandard materials supplied undermines to goal of product quality as it can give room for suppliers to manipulate or undermine quality objectives.

5.4 Conclusion

In accordance with the findings above, it can be concluded that material inspection is aimed at ensuring that the right materials of the right quality at the right price are supplied in the organization. This should be done employing the right measures creating the right procedures; putting in place the right mechanisms to prevent and check the entrance of substandard materials into the production process.

The organization although still appears to be effective in producing quality services, efforts should be made to improve upon how specifications are drawn and how materials are inspected, for these two significantly affects the entire quality objectives of the organization.

5.5 Limitations

This research is not without limiting factors. This is because no matter how thorough a researcher is, no matter how sufficient his resources are, (time, finance) and other constraints are there which are capable of watering down the relevance of the work. These are:

The attitude of the respondents – If respondents although knowledgeable, but decides to give false information or if ignorant of what to choose, it can render this report a mere bogus exercise of this the researcher has no control over.

Again, the research methodology adopted, although considered the best under this circumstance for the research, it is not without its weaknesses, for example the, random sampling technique was sued, the sample size chosen to represent the entire population has the tendency of missing an entire sections of the area in which it is being sampled due to the randomness of selection.

The researcher may also be unlucky and yet samples that reflect the same result which may not be accurate of the population being sampled.

Again, because of the structured or closed ended questionnaire used to gather information, the respondents are limited to what response it could give. This also has some measure of limitation on the outcome of this research.

These issues could impede relevance of the research work, of these the researcher has no control over.

5.6 Recommendations

From the above findings, conclusion, implication, it is recommended that the management of Power Holding Company of Nigeria Kaduna should:

  1. Determine distinctly who should be responsible for inspection in the organization and employ quality purchasing professionals to lead and handle all issues relating to inspection for better quality of materials purchased.
  2. The organization should also consider the use of external bodies for inspection most especially when acquiring materials from abroad and in the case of technical equipment that the organization may not have experts to rightly determine the quality of these materials.
  3. The organization should implement a zero tolerance policy to defective materials and let suppliers know the consequences to the supplying organization in the event of any supply of substandard materials.
  4. Implementing defect preventive measures which are proactive in nature, including pre-qualification of potential suppliers, supplier selection, supplier development among others will help to stamp out or at least reduce the magnitude of defects.
  5. Finally, effective communication and mutual cooperation and understanding among various units in the organization and among suppliers of key materials should be developed so as to enable free flow of information both within and outside the organization.

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