An Evaluation Of The Need For Quality Control And Inspection On Materials Purchase (A Case Study Of New Idea Construction Company Port-Harcourt Road Owerri)

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An Evaluation Of The Need For Quality Control And Inspection On Materials Purchase (A Case Study Of New Idea Construction Company Port-Harcourt Road Owerri)


Abstract


This research work which focused on the need for quality control and inspection on materials purchase which tends to unveil the need and vitality of having a bound inspection on materials purchase and ensuring that quality is controlled from the point of purchase to production to profitability goals of the organization.

In the course of the study research the researcher found out that most organizations have no good equipments to conduct a proper inspection on some highly technical materials some do not accept that quality stout from the point of purchase but focuses on product process while some depend on the warrantee by the supplier thereby poorly priories inspection.

After all findings and analysis, the researcher recommended that a proper training should be given to purchasing and inspection personnel’s and place inspection at the top priority ensuring that quality goals are effective from the point of delivery.

In this stage, the researcher concluded that a proper education should be giving to vendors on the quality requirement of organization. Furthermore, clear specification and adequate inspection will definitely boost the profitability goals of the organization


Table Of Contents


Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background Of The Study
  • 1.2 Statement Of Problems
  • 1.3 The Objectives Of The Study
  • 1.4 The Relevance Of The Study
  • 1.5 Research Questions
  • 1.6 Hypothesis Of The Study
  • 1.7 The Scope Of The Study
  • 1.8 The Limitation Of The Study
  • 1.9 Definition Of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Responsibility For Quality Control And Inspection
  • 2.2 Description Of Quality
  • 2.3 Dimension Of Quality
  • 2.4 Selective The Supplier
  • 2.5 Inspection
  • 2.6 Methods Of Inspection
  • 2.7 Rejection

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Area Of Study
  • 3.3 Method Of Data Collection
  • 3.3.1 Primary Source
  • 3.3.2 Secondary Source
  • 3.4 Population/ Sample Size
  • 3.5 Sample Technique/ Procedure
  • 3.6 Method Of Data Analysis

Chapter Four

4.0 Presentation And Analysis Of Data

  • 4.1 Presentation Of Data
  • 4.2 Analysis Of Data
  • 4.3 Testing Of Hypothesis

Chapter Five

5.0 Summary, Conclusion And Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One


1.0 Introduction

1.1 Background Of The Study

Materials represent cash which demand extent care and control, also demands sound knowledge of the buyer to ensure effective and efficient procurement, inspection handling and quality control. a critical evaluation of the need for materials purchase in various organizations have proved them so indispensable because of the huge sum of money involved. It has been observed that over 60% of many organizations budget is in materials purchase. It is therefore necessary that materials which meet the required quality are purchased.

Prior to industrial revolution and stand the operation of quality control and inspection should be left in the hands of qualified responsive and aggressive personnel quality is now the responsibility of organizations, consequently quality specification must be designed in a clear and accurate terms such that they are understandable by the broad spectrum of specialist.

Inspection as a complement to quality control on materials purchase must not be dispensed in ensuring and maintaining end term quality.

The buyer as a specialist must function in one of the more sensible areas of quality control and inspection in negotiation and implementation of legal contract and purchase order.

New idea Construction Company Ltd km 16 Owerri-Port-Harcourt Road Obinze Owerri, Imo State with a sister Asphalt plant at plot 36 industrial layout Eneme road Enugu State. And it’s head office at Ada-Jeorge road Port-Harcourt, River State.

The company specializes in road capacity building and budgie construction the plant deals on highly technical raw materials like granites, driller, and funk lift double basin trucks etc also has about 52 personnel’s 60% of the raw materials are locally obtained and 40% sourced abroad.


1.2 Statement Of Problems

Ranging from small, medium and large organizations, public and private firms, the problems of quality control and inspection have been found enormously common in their operation. Based on information obtained in some visited firms and the organization case study, quality control and inspection on purchase materials encounter many shortcomings such as

  1. Lack of adequate inspection equipments.
  2. Lack of commitment to operate a 100% check on materials before acceptance by the operators /personnel.
  3. Jumping of inspection procedure due to
    1. Lack of skills
    2. Fatigue of personnel as a result of poor working environment.
  4. In proper definition of quality required
  5. The nature of the materials

Problems of quality control and inspection has rendered some organizations unstable I their area of operation as a result of not fully implementing and ensuring that quality is maintained from procurement to output. As gathered so far from interviews and surveys, many firms solely depends on the guarantee given to them by the producers or suppliers which sometimes fail at their own peril.

While some does not deem it necessary to intensify inspection before acceptance intensify inspection indicates that information also indicates that some organizations quality goals but were just there for writing sake, measures for implementation, while some concentrate in product processing, instead of conducting inspection before imputing the materials into production process.

The most problem obtained so far in some organizations is that they consider quality control as impossible and not necessary and also regard inspection as a waste of time and resource they believe that, so long as your product is presented to the market and gained acceptance, counting quality and inspection is not necessary.

So far, it has been obtained that the problem of quality control and inspection, to lack of qualified personnel’s, lack of commitment and implementation and final no proper provision for the control of quality and inspection.


1.3 The Objectives Of The Study

The researcher having found out some problems faced by small and large organizations in the course of this research therefore tends to:

  1. Draw the attention of organizations and new organization to the need for quality control and inspection of material purchase.
  2. To reduce cost of rejection and waste incurred by organizations as a result of lack of inspection programmes.
  3. To address the misconception of turning inferior materials into superior products during production stages process.
  4. To provide solutions to the statement of problems of this research work.
  5. To proffer suggestions for sound inspection and quality controlling equipments to some organizations that make use of highly technical materials like new idea construction company ltd.

In fact, the need for specialization cannot be over emphasized in those departments concerned with quality control and inspection to ensure qualitative and qualitative output (product) profitably


1.4 The Relevance Of The Study

The researcher aims to benefit the small, medium and large organization through this work by exposing the responsibility for quality, re-focusing managers, from shallow regards given to quality control from the point of purchase to the need for quality control and inspection at first in purchasing and every stage of production.

This work will also benefit the new organization to be cognizance and acquainted with measures factors and techniques of controlling quality and methods and process of inspection. Understanding this will lead to effective lost reduction and profit maximization.

In a nutshell, this study will benefit the both the buying and selling organization whether small or large.


1.5 Research Questions

In the process of research and investigation on this project work the researcher has been able to conduct this research questions.

  1. Does your company have a separate quality control department?
  2. Is it true that inspection of materials before receipt is a waste of time?
  3. Do you have specified inspection method or procedures?
  4. Does quality control measure applied in all departments of your organization like marketing, production and purchasing?
  5. Does the quality control department involved in inspection? Or inspection exercise had done by the user department.
  6. Does inspection ensures quality product and burst profitability.

1.6 Hypothesis Of The Study

In carrying out this research work the researcher make use of the Null (Ho) and alternative (Hi) hypothesis to investigation whether them is need for quality control and there is need on materials purchase and it’s implication to profitability and quality output.

In trying to evaluate the objective of this research work it is hypothesized as follows:

  1. Ho: Quality control of inspection on materials purchase does not contribute to total quality management.
    Hi: Quality control and inspection on materials purchase contribute to total quality management.
  2. Ho: Quality control and inspection on materials purchase have no implication to quality output and profitability.
    Hi: Quality control and inspection on materials purchase have no implication to quality output and profitability.

1.7 The Scope Of The Study

This study is not only focused on the need for quality control and inspection on materials purchase but will equally look on the areas of organization of management structure, and financial capacity as a basis for quality controlling and inspection level responsibility and system.

This work will also uncover requirements measure and importance of quality control and inspection to faster quality output and increase revenue in mostly manufacturing and construction organizations with major concentration on new idea construction company Owerri.


1.8 The Limitation Of The Study

While carrying out this research, the researcher was confronted with a number of constrains while includes of adequate textbooks to use as seconding source information further mere the research encountered limitation such as

  1. Financial constraint prevalent today.
  2. The time needed have run round information data.
  3. Non-chalant attitude of people (respondents) in regards to questionnaire not been important, as a result of this some questionnaire were not returned, some returned without complying with the instructions of the research questionnaire. This militates adversely against the progress of this work.
  4. Company policy there was a lot of delay before attention was given to the questionnaire just to obtain permission from the headquarters/supervise.
  5. Power failure: the inconsonant power supply really militates against the progress of this work during data assessment, analysis and presentation.

1.9 Definition Of Terms

Bidder / Vendor:

This is also known as the supplier or the seller.

Defect:

Damage or a material below standard or specification

Defect:

Existing damage fault a inferior materials yet to notice or discover

J I T:

Just-in-time

P R C:

Purchase Record Card

M R P:

Material Requirement Planning

Quarantine:

This is a period of time in which damaged or inferior goods or (animal with decease) are kept away to avoid them been missed up with others.

Inspection:

A proper check on materials based on specification

Excavator:

This is a heavy machine used for digging hole and removing the layers of the earth for construction purpose

Grader:

A heavy machine used for smoothing, leveling and widening a road

Fuck Lift:

This is also a heavy machine for lifting heavy materials and stacked goods in buck or single.

Truck:

It is a heavy machine motor with space at the back called bucket or basin for carrying sand, concert, and other materials/goods.


Chapter Five


5.0 Summary, Conclusion And Recommendation

5.1 Summary

At this stage in this work, it has been unveiled that for an organization to achieve its quality and profitability goals there is need for effective quality control and proper inspection on materials purchase.

As widely seen from chapter one that every firms main objectives is to make profit through quality products to maintain its customers satisfaction. That is to say that only material that meets required quality specification should be bought. Qualified purchasers and inspection personnel must be employed along side of reliable selected supplier to foster every aspect of quality required and ensure a sound method of inspection as x-rayed in chapter two. In chapter three and four of this research work, the researcher used mathematical method to analyze and present his data and findings from New Idea Construction Company ltd as a case study. The mathematical calculations are used to present responses to the researcher’s questions and to enable the researcher to test the hypothesis. From the test of hypothesis the following hypothesis was accepted.

Ho of hypothesis 1:

Quality control and inspection on materials purchase does not contribute to total quality management.

Hi of hypothesis 2:

Quality control and inspection on materials purchase have no implication to quality output and profitability.


5.2 Conclusion

This research work dealt on the need for quality control and implication on materials purchase. Considering the fact that more than 50% of organizational resources is spent on materials purchase which represent cash, therefore, it is necessary that organizations should focus on those materials that meet quality specification to reduce waste, cost of rejection, low quality output and increase profitability. This orientation will in no doubt help firms to achieve their goals. The vendor should be educated as to the quality required. There is no doubt it that vendor education, clear specification of quality required and adequate information of incoming materials is the answer and solution to achieving quality and profitability goals of organization.


5.3 Recommendation

While carrying out investigation on the topic, the researcher discovered so many problem solutions to quality control and inspection in organizations using New Idea Construction Company a reference and hereby recommends the following;

  1. Organizations should ensure that only suppliers who are capable of meeting the quality needed are selected, to avoid frequent rejections which may result in disruption of production schedule and to also avoid too much money and time being spent in the inspection and re-inspection of materials supplied.
  2. Organizations should train their inspectors so as to have full knowledge of inspection procedures for each type of material. Also should build a tolerance limit and standards of materials.
  3. Purchasing department should be standardized and separated from administration or accounting department as the case may be in some firms to ensure effective and efficient purchasing performance evaluation and contribution as a profit multiplier.
  4. Qualified personnel should be employed in the departments concerned in procurement and inspection including production.
  5. There should be harmonized relationship between purchasing department and other department as quality insurance does not end at procurement and inspection, it continues to materials handling, production process and packaging.
  6. Inspection should be placed at a high level priority and ensure that quality rings first in selection, negotiation and awarding of a contract to any supplier.

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