QUALITY CONTROL AND INSPECTION OF PURCHASED MATERIALS

(A CASE STUDY OF EVANS MEDICAL PLC, LAGOS)

By

ASADU NNEKA .E

Presented To

Department of Purchasing and Supply

61 Pages 9,611 Words 2,856 Views Microsoft Word Format No. of Chapters: 1 to 5 Chapters

ABSTRACT

The application of the principal of quality control and inspection of a product is essential to any companyâ€™s future development and it is of increasing important if a company is to survive under increasing competitor and constant demand for more consistent and reliable product. The progressive manufacturing industries realign the contribution of quality control of quality of materials purchased.

Therefore, it is essential controlling the quality of materials supplier since the helps to a great extent in increasing the profitability of the firm. This is because if materials supplied do not measure up to the specification wanted and if the faults are not detected before feeding them into the reproduction plants, the will affects the quality of materials manufacture by the company. This will not only mean waste of money but also disruption in production lines, reductions of sales. Lowering of the reputation of the company concerned, and the items require may be in short supplier this will obviously affect the company adversely.

Knowing the right quality material required, the specification and standardization, selecting the right supplier for the quality required; inspecting the materials purchase and a list of there are important in controlling quality of martial purchased.

This will deals with in detail in chapter one which is the introductory part of the review of the related literature of the work chapter two is concerned with the review of the related literature of work the chapter thee is the methodology it discuss the method of data collection chapter four the analysis of the data collected and data discussion while chapter five is the summary, conclusion and recommendation.

ASADU NNEKA .E

TABLE OF CONTENTS

Title page i

Dedication ii

Acknowledgement iii

Preface iv

Table of content vii

List of table/figure ix

List of abbreviations/definitions x

CHAPTER ONE

11 Background of the study

12 Statement of problem

13 The purpose of study

14 Research questions

15 Significance of the study

16 Slope and declamation of the study

17 Limitation of the study

CHAPTER TWO

Literature review

11 Responsibility for quality control and inspection

12 Quality control

121 Description of quality

122 Quality determination and control

123 Selecting supplier for quality

13 Inspection

131 Inspection classification

132 The degree of inspection

133 Receiving and inspection procedure

CHAPTER THREE

Research methodology

11 Introduction

12 Research design

13 The questionnaire design

14 Multiple question

141 Dichotomous question

15 Sampling and selection of respond

16 The survey

161 Observation

17 Data sources

171 Primary source

172 Secondary source

18 Data analysis method

CHAPTER FOUR

41 Presentation and analysis of data

42 Oral interview

43 Discussion finding

CHAPTER FIVE

Summary recommendations and conclusion

51 Summary

52 Conclusion

53 Recommendation

Bibliography

LIST OF TABLE

Table 41 Whether the company has equality control section

Table 42 Whether there is a chief inspector

Table 43 Whether there is a quality controller

Table 44 Whether there is a designed progrmme to control quality of materials

Table 45 If there was any thing to eject material

Tale 46 The treatment tot eh rejected material

Table 4 7 The defiled quilt standard of product defined

Table 48 Source of raw materials

Table 49 Quality control technique

Table 410 If inspection department is centrally controlled

Table 411 Gain of quality control

Table 412 Percentage of he company budgets repented by measurement of materiality

CHAPTER ONE

INTRODUCTION

11 BACKGROUND OF THE STUDY

Quality control and inspection of materials is becoming of vital importance in every pharmaceutical industry today become of the hung sum of money involved in the procurement of materials

It is known that over half of every pharmaceutical companyâ€™s budget is on materials It is therefore necessary that materials which meet the quality required are purchased

The buyer, as a specialist, must function in one of the more sensitive areas of quality control and inspection since he represents his organization in the definition, negotiation and implementation of a legal contact- the purchase order

Quality is a basic concept in modern buying and selling and is taking a high degree of priority in materials requirement

In many application, the performance specification is very rigid and call for careful quality control and by inspection by both the buying company and the selling company

Quality control and inspection of materials includes among other things

1 The organization and procedure through which a producer measures and control the quality of the product manufactured
2 The on-site checking of the manufacturing process
3 The inspection and acceptance of the party materials and spares
4 The assurance of compliance on the part of the supplier with specified quality levels
5 Co-operating with vendors on quality problems
6 The handing of rejects materials
7 The final and accounting aspect of rejection

Quality control and inspection is the responsibility to some degree of the user department in an organization

However, the buyer has the basic responsibility of adequately and

accountably specifying the quality requirement of materials purchased especially when material concerted are not too technical in nature

In turn, the supplier has the basic responsibility of satisfying the quality requirement in conformance with the mutual agreed price and time schedule

The British standard institution defines quality more precisely as:- â€�“The totality of features and characteristics of a product or services that bear on its ability to satisfy a given needâ€Â�

Deniability is an extension of quality it the ability of an item to perform required function under stated conditions for a stated period of item Reliability can be expressed as a probability that a product will operate satisfactorily for the stated period of time

In the case of both quality and reliability, the first need is to specify precisely the characteristics required, then to ensure that the material and manufacturing process used result in product which conform to the specification Thus two distinct attribute of quality are evident

1 Quality of design: the| quality defined by the specification and a measure of the extent to which this meet the needs of the users

2 Quality of conformance ( quality of manufacturer) the extended to which a manufactured product conforms to the stated specification

Thus, quality control is a system for regulating a supply process or product in order to maintain the required quality It is concerned with defect detention or correction It involves the application of inspection techniques to the products purchased and during the course of manufacture assembly or conversion

12 STATEMENT OF THE PROBLEMS

The improvement of the quality of purchased materials and component is of vital importance to very company whether large or small Some of the problems facing the industries worth nothing for they can have an influence on quality control inspection of purchased materials through the following is not meant to be a complete list Is does identify some of the major difficulties

Extensive and expensive legally enforced manufacturing practices
Restriction of selling price of ethical (or prescription only) drugs
Long and expensive period of time to develop safe drugs
Short product life
Patent infringement especially form overseas manufacture
Control in advertising its products
The product of the industry can broadly be divided into two categories
Those social over the counter, mainly in chemist shop but also some products in grocery outlets
Those which are available only against prescription form a doctor or dentist (mainly called ethanolâ€™s)

Some product need little description for we are all buyers in this area at ones time or another In the main, these are sample remedies suitable for home medication with analysis, cough preparation and medicated confectionary being the most important group

Ethical drugs available only if prescribed by only qualified medical practitioner, are the results of millions of naira spent on research and the most important one are antibiotics, antidepressants and those concerned with the treatment of learnt discuss

The industry is difficult from most others in that its mayor customers for ethical is the government for example ,the national health services commission in 1982/83 paid over N15 millions for its drugs and national government throughout the world generally the industry largest customers

The cost of poor quality is the industry, transport, haunting and the inconvenience to customers is very heavy

This research paper is therefore concerned with identifying the main faults and of controlling the quality of purchased materials in EVANS MEDICAL PLC

The researcher is therefore concerned with ensuring that good quality materials are purchased and that the number of rejection is reduced through better inspection and better training and above all, through greater awareness d a greater management and staff

13 THE PURPOSE OF STUDY

The background study through brief will assist in a better understanding of the industry itself and it is suggested that such knowledge is essential to successful quality control, inspection of purchased materials needed by the industry

There are many response for control of quality of purchased materials, all of which will add up to profit for the buyers companies one important reason is that it avoided confusion between purchases and suppliers in determine what is required

Production requirements are met in time and in needed quality of materials are parts which meet the qualify of specifications This can only be achieved with the use of quality control and inspection programme High cost which always result form rejection of supplies, resultant products delays excessive quality specification, extra handling of rejection and replacements, lowered quality of finished items made form or with poor quality in the company

There can be legal responsibility on the part of the buyer if the supplier supplies under an honest company may find itself responsible for all or part of the defective goods if the quality requirements on the purchase order was incomplete or not met

To enhance the need for the control of quality of materials and components, the researcher has decided to conduct and investigate the following

(a) The department(s) responsible for the control of the quality of materials supplied in Evans medical PLC
(b) The functions of the purchasing department as regards to controlling the quality of items purchased
(c) Whether the firm has an inspection departments and the function fo such department
(d) The method of selecting new suppliers(s) in case of the former supplier is not measuring up to expectation
(e) The method used in inspection an incoming materials before acceptance in the warehouse
(f) The method used in inspection an incoming materials before acceptance into the warehouse
(g) The action to be taken if materials supplied falls to measure up to specification
(h) The actions that can be taken to control the percentage of effectiveness of materials supplied

14 SIGNIFICANCE OF STUDY

The researcher believe that the project will succeed in throwing a lot of light on the subject matter and in picking the conscience of all who have or assumed responsibility on quality control of purchases materials in pharmaceutical/ manufacturing industries

15 RESEARCH QUESTIONS/ HYPOTHESIS

Inevitable, the pharmaceutical industry is greatly concerns with the quality standards necessary for it to produce safe and effective product I was able to investigate the ways in which Evans medical PLC can achieve this by carefully coming out with the following research questions: they are:-

(a) what department (s) is responsible for the control of the quality of material supplied ?
(2) what is the method use to describe the quality of materials ordered by the organization
(3) what type of standard materials are used in the organization;
(4) what are the methods of inspection of purchased material
(5) What are the relationship; between purchasing and quality control department?

16 SCOPE OF STUDY

The quality of bought â€" in items or manufactured products must therefore be controlled to ensure that they met the users requirement and continued to do so for a given period of time while avoiding escessive cost due to necessary high quality

As a result, this paper will cover only the effective quality control of purchased materials/ items as related to Evans medical PLC Lagos

61 Pages 9,611 Words 2,856 Views Microsoft Word Format No. of Chapters: 1 to 5 Chapters

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