1

ASSESMENT OF QUALITY ASSURANCE ON PUBLIC

PROCUREMENT: A CASE OF MINISTRY OF AGRICULTURE,

FOOD SECURITY AND COOPERATIVES

2

ASSESMENT OF QUALITY ASSURANCE ON PUBLIC

PROCUREMENT: A CASE OF MINISTRY OF AGRICULTURE,

FOOD SECURITY AND COOPERATIVES

By

Nyakato Laurent

A Dissertation Submitted in Partial Fulfillment of the Requirements for the

Award of the Master of Science in Procurement and Supply Chain Management

(MSc-PSCM) of Mzumbe University.

2013

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CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for

acceptance by the Mzumbe University, a dissertation titled Assessment of Quality

Assurance in Public Procurement : The Case of Ministry of Agriculture Food

Security and Cooperatives (MAFSC), in partial fulfillment of the requirements for

award of the degree of Masters of Science in Procurement and Supply Chain

Management of Mzumbe University.

……………………………………..

Major Supervisor

………………………………….

Internal Examiner

………………………………

External Examiner

Accepted for the Board of MUDCC

…………………………………………………………

CHAIRPERSON, FACULTY/DIRECTORATE BOARD

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DECLARATION AND COPYRIGHT

I, , declare that this dissertation is my own original work and that it has not been

presented and will not be presented to any other university for a similar or any other

degree award.

Signature………………………………………

Date ……………………………………………

©2013

This dissertation is a copyright material protected under the Berne convention, the

copyright Act 1999 and other international and national enactments, in that behalf,

on intellectual property. It may not be reproduced by any means in full or in part,

except for short extracts in fair dealing, for research or private study, critical

scholarly review or discourse with an acknowledgement, without the written

permission of Mzumbe University, on behalf of the author.

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ACKNOWLEDGEMENTS

This work could not be accomplished without contribution of different people. In

this regard I wish to thank my supervisor, Ms. Mary Rutenge for the support she

accorded me during this work. More thanks are extended to all the Lectures at

Mzumbe University who in one way or another contributed to the successful

completion of my course work and hence lead to this study completion. Last but not

least I wish to thank my family members lead by my Father Lawrence Kalugira and

my Msc.PSCM classmates for their sincere encouragement during my studies at

Mzumbe University.

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DEDICATION

This work is dedicated to My Mother Angelina Kalugira, My Twin Sister Leticia

Kabanza, My Young Sisters Yasinta, Hellen, Upendo, Florence, my young brothers

Fredric, Fidelis, Antidius, my children Neema, Kokubanza, Kemilembe, Kelvin. and

the family of Mr & Mrs Gasper Urassa. May our almighty God be with you and

guide you to grow up and succeed in your life.

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ABBREVIATIONS AND ACRONYMS

AICC Arusha International Conference Centre

CAG Controller and Auditor General

CPOs Chief Procurement Officers

EPA The Environmental Protection Agency

ICT Information and Communication Technology

LGAs Local Government Authorities

MAFSC Ministry of Agriculture, Food Security and Cooperatives

OSHA The Occupational Safety and Health Administration

PMU Procurement Management Unit

PPA Public Procurement Act

PPRA Public Procurement Regulatory Authority

PSPTB Procurement and Supplies Professionals and Technicians Board

QA Quality Assurance

QC Quality Control

QMS Quality Management System

SCARs Streamlined Corrective Actions

SPC Statistical process control

UNICEF The United Nations Children’s Fund

USA United States of America

WHO The World Health Organization

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ABSTRACT

The Government Institutions to procure quality goods and services needs to have

quality assurance plan and policies in place to ensure there is compliance in quality

assurance on procured goods. Although efforts are made by different procuring

entities yet there are difficulties and challenges encountered by user departments to

meet their needs. Inadequate and poorly written specifications are the root causes of

procuring poor quality of goods.

The objective of this dissertation is to scrutinize Quality Assurance on Procured

Goods in Public Procurement at Ministry of Agriculture, Food Security and

Cooperatives

The study adopted a qualitative case study design. A judgmental sampling technique

which is a non probability sampling procedure was used to determine sample unit of

32 respondents. Data were collected by the use of interview, questioner and

observation. On the basis of the respondents views reliable inputs were

comprehensively analyzed by using tables, graphs and pie charts.

This paper concludes that though the Ministry has experienced, qualified, and skilled

staffs, there is less compliance on procuring quality products as per findings obtained

by a researcher when analyzing the data. Among factors which contribute to this are

inadequate knowledge of purchasing personnel and user department in preparing

technical specifications especially for technical products and there is no quality

assurance plan is in place.

Conclusion and recommendation proposed by researcher is that, the PMU has to

identify the improvements that are needed to reduce the risk of errors which cause

poor quality of procured goods, Training would be a part of this initiative and

Human resources should first be targeted at addressing the human resources issues

affecting QA; this will facilitate to ensure sufficient, well-trained staff to support the

Ministry on attaining QA matters.

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TABLE OF CONTENTS

CERTIFICATION ...................................................................................................... i

DECLARATION AND COPYRIGHT .................................................................... ii

ACKNOWLEDGEMENTS...................................................................................... iii

DEDICATION........................................................................................................... iv

ABBREVIATIONS AND ACRONYMS.................................................................. v

ABSTRACT............................................................................................................... vi

TABLE OF CONTENTS......................................................................................... vii

LIST OF TABLES .................................................................................................... ix

LIST OF FIGURES ................................................................................................... x

CHAPTER ONE ........................................................................................................ 1

PROBLEM SETTING............................................................................................... 1

1.1 Introduction ............................................................................................................ 1

1.2 The Background of the Study ................................................................................ 1

1.3 Statement of the Problem ....................................................................................... 3

1.4 Research Objectives ............................................................................................... 4

1.4.1General Objectives ............................................................................................... 4

1.4.2 Specific objectives .............................................................................................. 4

1.5 Research Questions ................................................................................................ 4

1.5.1 General Research Question ................................................................................. 4

1.5.2 Specific Research Questions ............................................................................... 4

CHAPTER TWO ....................................................................................................... 7

LITERATURE REVIEW.......................................................................................... 7

2.1 Introduction ............................................................................................................ 7

2.2 Definitions of key terms......................................................................................... 7

2.3 Theories and Concepts ........................................................................................... 8

2.3.1Cost caused by Poor Quality Assurance .............................................................. 8

2.3.2Quality assurance aspect .................................................................................... 10

2.3.3 The significance of quality................................................................................ 12

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2.3.4 Ways to specifying desired quality ................................................................... 14

2.3.5The cost of Quality Assurance ........................................................................... 15

2.3.6The Nature of Quality Control ........................................................................... 15

2.3.7 Introducing Quality Management ..................................................................... 16

2.3.8 Statistical process control in Managing Quality of Goods and Services .......... 17

2.3.9 Quality Assurance Concept............................................................................... 18

2.3.10 Policy and Objectives...................................................................................... 18

2.3.11 Quality Planning ............................................................................................. 19

2.3.12 Management Review/support and Internal Audit ........................................... 19

2.3.13 Contract Review.............................................................................................. 20

2.3.14 Design Control ............................................................................................... 21

2.3.15 Documentation Control & Change Control .................................................... 22

2.3.16 Purchasing ....................................................................................................... 23

2.3.17 Customer Supplied Items ................................................................................ 23

2.3.18 Process Control ............................................................................................... 23

2.3.19 Receiving and Inspection ............................................................................... 24

2.3.20 Inspection and Testing ................................................................................... 24

2.3.21 Production & Measuring Equipments ............................................................. 24

2.3.22 Indication of Inspection Status........................................................................ 25

2.3.23 Non-Conforming Items, Preventive & Corrective Action .............................. 25

2.3.24 Training ........................................................................................................... 25

2.3.25 Ways that can be used to monitor success in achieving quality ..................... 26

2.3.26 Action to improve quality ............................................................................... 26

2.3.27Why is it important for the organization to get its customers assessment for the

quality it provides? ..................................................................................................... 27

2.3.28 Does the customer have expertise to assess the quality of goods? ................. 28

2.3.29 In what ways could the company monitor its success in achieving quality? .. 28

2.3.30 Goal to provide quality products..................................................................... 30

2.3.31 How to build a culture of quality in organizations.......................................... 31

2.4 Empirical Studies ................................................................................................. 31

2.4.1 Tanzania case .................................................................................................... 31

2.4.2 America Case .................................................................................................... 34

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2.5 onceptual Framework........................................................................................... 36

CHAPTER THREE ................................................................................................. 38

RESEARCH METHODOLOGY ........................................................................... 38

3.1 Introduction .......................................................................................................... 38

3.2 Research Design................................................................................................... 38

3.3 Area of the Study ................................................................................................. 38

3.4 Population of the Study ........................................................................................ 39

3.5 Sample size and sampling techniques ................................................................. 39

3.6 Data collection Method ........................................................................................ 40

3.6.1 Questionnaires................................................................................................... 40

3.6.2 Observations...................................................................................................... 41

3.6.3 Interviewing ...................................................................................................... 41

3.6.4Documentary Review......................................................................................... 41

3.7 Data Analysis and Presentation............................................................................ 42

CHAPTER FOUR.................................................................................................... 43

DATA PRESENTATIONS, ANALYSIS AND DISCUSSION ............................ 43

4.1 Introduction .......................................................................................................... 43

4.2 Users/ customers satisfaction with the quality of procured Goods……………...43

4.3 Staffs qualification at Procurement Management Unit ........................................ 44

4.4 Compliance of procurement procedures at PMU................................................. 46

4.5 Performance of Procurement department ............................................................ 48

4.6. Existence management support regarding quality assurance of goods acquired 50

4.7. Policies and procedures used to govern quality assurance of procured goods. .. 51

4.8. How users involved in preparation of technical specifications........................... 53

4.9. User if attended any course related to quality assurance. ................................... 54

4.10. Existence management support regarding quality assurance of goods acquired56

4.11. How long user departments being in the post? ................................................. 56

4.12. Users if they satisfied with the quality of procured goods................................ 58

4.13. Measures taken to solve problems in relation to quality assurance issues....... 60

4.14. The procurement department if they are staffed by qualified staffs ................. 60

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4.15 How quality assurance is done at the Ministry ................................................ 62

CHAPTER FIVE...................................................................................................... 64

SUMMARY, CONCLUSION AND POLICY IMPLICATION .......................... 64

5.0 Introduction .......................................................................................................... 64

5.2 General Summary................................................................................................. 64

5.3 Conclusion ........................................................................................................... 66

5.4 Policy Implication ................................................................................................ 67

REERENCE……………………………………………………………………......71

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LIST OF TABLES

Table 4.1: Summary of Responses............................................................................. 44

Table 4.2: Summary of Responses............................................................................. 46

Table 4.3: Summary of Responses............................................................................. 48

Table 4.4: Summary of Responses............................................................................. 51

Table 4.5: Summary of Responses............................................................................. 53

Table 4.6: Summary of Responses............................................................................. 54

Table 4.7: Summary of Responses............................................................................. 56

Table 4.8: Summary of Responses............................................................................. 58

Table 4.09: Summary of Responses…………………………………………………61

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LIST OF FIGURES

Figure 2.1: Conceptual Framework Model ................................................................ 37

Figure 4.1: Summary of Responses……………………………………………...45

Figure 4.2: Summary of Responses……………………………………………...47

Figure 4.3: Summary of Responses…………………………………………… 49

Figure 4.4: Summary of Responses…………………………………………… 52

Figure 4.6: Summary of Responses…………………………………………… 55

Figure 4.7: Summary of Responses…………………………………………… 57

Figure 4.8: Summary of Responses……………………………………………..59

Figure 4.09: Summary of Responses……………………………………………..61

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CHAPTER ONE

PROBLEM SETTING

1.1 Introduction

Quality assurance (QA) is the use of a monitoring system to measure performance

against quality standard. Effective quality assurance can be achieved through a

continuous self-improvement and outcome assessment of performance.

In this case, it is all of the actions that you have planned in order to work safely and

reliably, and to provide confidence that the bought out goods or services will perform

as planned (Herget, 1995)

In the modern business competitive environment many organizations are realizing

the importance of procuring the highest level of quality of goods and services so as to

meet customers or end users satisfaction. One of the challenges of many

organizations is how to manage their quality of which it contributes to the great

impact to customer satisfaction. In order to ensure growth and survival of the public

institutions key players involved in procurement are required to procure quality

goods and services so as to achieve the corporate goal of the enterprise (Anderson

and Sullivan, 1993)

1.2 The Background of the Study

The Ministry of Agriculture, Food Security and Cooperative was established

December 25th 2005. The Ministry’s responsibilities is to facilitate the development

of sustainable Agriculture for increase of productivity and profitability in

undertaking its mandates role of emphasis in improving efficiency and effective

agriculture sector in order to meet the requirement of the stakeholder by enabling

them to contribute to National development. Many goods and services are procured

without considering QA, this habit causes costs to buying organizations, poor

customer service level and consequently loose of customer‘s goodwill. Managing

quality on procured goods must be adhered because big sum of money are committed

in various procurements, therefore quality management must be prioritized and

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sensitized to all key staffs involved. Supplies staff is concerned with quality

assurance for two points of view: Have specified the right material for the job, and

have communicated the requirement to the supplier in a clear and unambiguous way.

Has the supplier provided material in accordance with the specifications? Usually

establish the answer to this question by inspection. To ensure effective QA will

enable to build and maintain customer’s relationship which is the key success in the

firm’s core business (Sing, 2002) in order to satisfy customer’s needs, many firms

need to ensure quality compliance of procured goods during delivery and inspection

before accepting them into the storage area. The high quality of goods and services

will enable achievement of big market share and better returns (Slu & Mou, 2003).

The MAFSC substantially have been spending a lot of its budgets in procuring of

both consultancy services, works – construction projects and also procurement of

tangible items (goods). Procurement as one of the functions of the MAFSC is facing

many challenges from both suppliers and even procurement specialists.

Specifically the objective of public procurement principles among others is to ensure

the procuring entities consider achieving effective quality assurance to whatsoever

they will procure, it’s from this base there is also high emphasis from both

Procurement and Supplies Professionals and Technicians Board (PPSTB) and Public

Procurement Regulatory Authority (PPRA) on the need for the public institutions to

employ qualified Procurement and Supplies Officers who can contribute towards

preparing appropriate specifications which will enable their institutions avoid loses.

The Ministry of Agricultures, Food Security and Cooperatives can not escape from

this objective of public procurement principles.

Many goods and services are procured without considering QA, this habit causes

costs to buying organizations, poor customer service level and consequently loose of

customer‘s goodwill. Managing quality on procured goods must be adhered because

big sum of money are committed in various procurements, therefore quality

management must be prioritized and sensitized to all key staffs involved. Supplies

staff is concerned with quality assurance for two points of view: Have specified the

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right material for the job, and have communicated the requirement to the supplier in

a clear and unambiguous way. Has the supplier provided material in accordance with

the specifications? Usually establish the answer to this question by inspection. To

ensure effective QA will enable to build and maintain customer’s relationship which

is the key success in the firm’s core business (Sing, 2002) in order to satisfy

customer’s needs, many firms need to ensure quality compliance of procured goods

during delivery and inspection before accepting them into the storage area. The high

quality of goods and services will enable achievement of big market share and better

returns (Slu & Mou, 2003).

1.3 Statement of the Problem

Quality assurance is a wide-ranging concept which covers all matters that

individually or collectively influence the quality of a product. It is the totality of the

arrangements made to ensure that products are of the quality required for their

intended use. Quality assurance therefore incorporates several factors and it is an

integral part of all key activities in procurement (Bally & Farmer, 2008).

Therefore the researcher was highly interested to examine quality assurance on

public procurement specifically in the MAFSC as there has been negligence in

preparing adequate specifications thus making the Ministry getting inferior or

unwanted goods such as computer, Tractors and its Implements etc, excessive

materials and unnecessary delays. In the procurement audit conducted by PPRA on

financial year 2009/10 the ministry was assessed to have attained a compliance level

of 40% on quality assurance and on financial year 2011/12 the ministry have

attained a compliance level of 60% . In this intended study the researcher scrutinized

how users are satisfied with the quality of procured goods throughout achieving their

intended strategic objective.

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1.4 Research Objectives

1.4.1 General Objectives

The extensive objective of this research work was to gain better understanding of

compliance of quality assurance of procured goods in Public Organization

specifically at the ministry of agriculture, food security and cooperatives

1.4.2 Specific objectives

i. To establish the relationship between quality of procured goods and

the level of customer services in the MAFSC

ii. To determine how training on quality assurance in procurement

influence customer service?

iii. To find out the existence of organizational support for efficient

quality assurance on procured goods.

1.5 Research Questions

1.5.1 General Research Question

What are causes of poor quality assurance on procured goods in the Ministry of

Agriculture, Food Security and Cooperatives?

1.5.2 Specific Research Questions

What is the relationship between quality of goods procured and the level of

customer service in the MAFSC?

How does training on quality assurance in procurement influence customer

service?

How does the existence of organizational support which leads to efficient

quality assurance on procured goods?

1.6 Significance of the Study

The importance of this research work to the researcher has enabled to discover the

relevant findings which disclose new areas of study and in addition the study have

added knowledge to the researcher. Furthermore the study it is useful to the Ministry

of agriculture, food security and cooperatives Management and the community at

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large, it helps them on how they can manage quality assurance on procured goods,

also findings of this research will provide a good reference to other procurement

specialist in understanding strategic issues in order to ensure quality assurance is

conducted professionally and at best practice. Last but not least, the findings of this

study contributes to the existing body of knowledge and close the existing gap of

knowledge in relation to quality assurance both in Public and Private Organizations

1.7 Scope of the Study

The study only covered the assessment of quality assurance in public procurement

basing at the Ministry of agriculture, Food Security and Cooperatives Dar es salaam

Head Quarter. The study covers assessment of quality assurance in public

procurement challenges facing the compliance of quality assurance in public

procurement and finally was to recommend the best way to solve the shortcomings or

ineffectiveness observed from the study.

The study comprises of preliminary pages followed with five chapters. Preliminary

pages consists of cover page, title page, declaration and copyright, abbreviation and

acronyms, table of contents, list of tables, and list of figures. The first chapter

explained about the overview of the study, the second chapter consisted of literature

review , the third chapter explained on the research methodology, chapter four will

consisted of presentation of findings, analysis and discussion, chapter five consisted

of conclusion and recommendations.

The outcomes of the study was limited only on the data gathered from the various

reports and journal and from the primary data gathered from the results of questioner,

interview and observation conducted by the researcher.

Since the research had to be completed in relatively short period of time, other

factors and variables were not considered. This might have brought an impact on the

results of the study.

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1.8 Limitation of the Study

The researcher had little time, inadequate financial resources necessary to conduct

this study. Thereby the researcher has used personal interview, observation and

questionnaire.

The researcher works in the same organization therefore data collection was often

done after working hours and over the weekends because during working hours some

of respondents were busy with official obligations.

Time available for data collection was limited due to Mzumbe University academic

calendar, only two months for data collection are not enough to complete collection

if the source of data to be collected are scattered in different departments.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

The researcher under this chapter have defined key terms used in this research so as

to facilitate ease understanding to readers, theories and concepts which are relevant

to this research topic, also the researcher have provided empirical studies both in

Tanzania and abroad and finally the conceptual frame work have been provided

which shows how effectively and practically quality assurance of procured goods is

done in order to satisfy users requirements profitably

2.2 Definitions of key terms

Ministry of Agriculture, Food Security and Cooperatives (MAFSC)

Means a body corporate

Quality

A measure of excellence or a state of being free from defects, deficiencies, and

significant variations, brought about by the strict and consistent adherence to

measurable and verifiable standards to achieve uniformity of output that satisfies

specific customer or user requirements.

Quality assurance

Quality assurance is any systematic process of checking to see whether a product or

service being developed is meeting specified requirements.

Government institution

Is any structure or mechanism of social order and cooperation governing the

behavior of a set of individuals within a given human community. Institutions are

identified with a social purpose and permanence, transcending individual human

lives and intentions, and with the making and enforcing of rules governing

cooperative human behavior.

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(Stivers, B 2006)

Procurement

Is the acquisition of goods or services? It is favorable that the goods/services are

appropriate and that they are procured at the best possible cost to meet the needs of

the purchaser in terms of quality and quantity, time, and location. Corporations and

public bodies often define processes intended to promote fair and open competition

for their business while minimizing exposure to fraud and collusion (Wynstra, F et

al, 2008)

Procured goods

These are goods which have been purchased from different sources in order to

support functioning of the buying organization. This ranges from equipments, ICT

facilities, furniture, stationeries, books, brochures etc

2.3 Theories and Concepts

Inspection activities can be classified as quality control processes, along with the

other activities that involve monitoring to ensure that defective are spotted. Quality

assurance can be contrasted with control in that assurance includes all activities

connected with attainment of quality, including: Design, including proving and

testing Specification which must be clear and unambiguous, Assessment of suppliers

to ensure that they can perform, Motivation of all staffs concerned, Education and

training of supplies staff, Inspection and testing and feedback to ensure that all

measures are effective.

(Bally and Farmer, 2005)

2.3.1 Cost caused by Poor Quality Assurance

Supplier quality issues like non-conformance management, product recalls and

product failures are proving fatal for global organizations. More than ever,

companies need to proactively address their supplier quality issues before they can

damage businesses operations and cause serious supply chain risks and financial

losses; especially when current business conditions are unfavorable. Most companies

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are already feeling the heat of the current financial meltdown, putting Chief

Procurement Officers (CPOs) and their teams under intense pressure to reduce costs

and improve cash flow while simultaneously managing an increasingly vulnerable

supply base. As recession starts to bite, there is no place left for supply chain

disruptions; any discrepancy in supplier quality can significantly reduce company’s

revenue, impact market share, increase production cost, threaten brand image and

reputation, and lead to high Cost of Poor quality According to a recent AMR survey,

almost 67% of the cost of poor quality can be attributed to supplier failure. In an

ATS commissioned survey1, the average cost of poor quality calibration costs

manufacturers $1,734,000 each year; especially for large companies with revenues of

more than $1 billion, the cost inflates to an average of $4,000,000 annually.

Organizations can attain systematic reductions in the cost of poor quality by

implementing a Quality Management System (QMS) that provides an integrated and

closed loop corrective action process.

Supplier Quality Management Measures: Preventing Supply Chain Disruptions

According to AMR, supplier quality plays a critical role attributing to almost 52% of

the overall manufacturing performance. In such a scenario, the need to implement

streamlined supplier quality management measures can never be over emphasized.

Some of the measures employed by leading global manufacturers include:

Supplier Site Inspections: Ensuring that all supplier components and materials are

sampled, examined, tested, and authenticated before being shipped. It includes

tracking supplier nonconformance issues in real-time by establishing consistent

procedures for components and lots that do not conform to specifications.

Streamlined Corrective Actions: Implementing a proactive approach to supplier

corrective action requests (SCARs) or corrective/preventive action requests (CAPAs)

across the supply-base by following a common methodology for performing root

cause analysis, assigning follow up actions while effectively tracking and routing

cases from initiation to closure.

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Supplier Charge-backs: Charging cost of poor quality back to the supplier for the

costs incurred by a manufacturer due to nonconforming components, materials, and

late deliveries in order to introduce business discipline and accountability into the

supply chain.

Supplier Scorecards: Monitoring supplier performance on scorecards to proactively

identify and implement timely corrective actions to improve supplier performance.

Scorecards measure key performance indicators (KPI) in real-time and track

improvements over time supporting sound decision-making based on data.

Supplier Audits: Conducting supplier audits to ensure that suppliers meet the

established product and process quality requirements and the audit process drives

continuous improvement.

However, the best way to control quality is to prevent non-conformity at the source.

Following this adage, most organizations today are spending a little more time

upfront to identify the discrepancies, non-conformances in manufacturing and quality

process at the supplier’s site itself (Gartner, 2011)

2.3.2 Quality assurance aspect

In this aspect of quality assurance features and characteristics of a product implies

the ability to identify which quality aspect can be measured, controlled or constitute

an acceptable quality level and ability to satisfy the given needs relates to the value

of the product or service to the customer including economic values as well as safety

, reliability, maintainability and other related features.

Garvin for example has identified five approaches of quality assurance:

i. The transcendent approach: quality is absolute and universally recognizable.

The concept is loosely related to a comparison of a product attributes and

characteristics

ii. The product based approach-quality is precisely and measurable variable. In

this approach differences in quality reflect differences in the quantity of some

product characteristics.

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iii. The use based approach-quality is defined in terms of fitness for use, or how

well the product fulfill its intended functions

iv. The manufacturing based approach-quality is conformance to specifications

ie targets and tolerances determined by product designers

v. The value based approach-quality is considered in terms of cost and prices.

Here, a quality product is one that provides performance at an acceptable

price or conformance at an acceptable cost (Kenneth, Lysons and Gilliham,

2003)

Eight dimensions of quality

i. Performance –the product operating characteristics

ii. Reliability-the probability of a product surviving over a specified period of

time under stated condition of use

iii. Serviceability-the speed, accessibility and easy of repairing the item or

having it repaired

iv. Conformance-the degree to which delivered products meet the

predetermined standard

v. Durability-measures the projected use available from the product over its

intended operating cycle before it deteriorates

vi. Features-the bells and whistles or secondary characteristics which

supplement the product’s basic function

vii. Aesthetics-personal judgement of how products looks, feel, sounds, tastes or

smells

viii. Perceived quality-closely identified with the reputation of the producer. Like

aesthetics is a personal evaluation. (Kenneth and Gilliham, 2003)

While the relative importance attached to any of the above characteristics depends on

the particular item, the most important factor in commercial or industrial purchasing

decisions probably be performance, conformance, availability and serviceability.

Other factors that determine the right quality for a particular product application

include; Price, since the competitive selling price of the product in which the item is

12

to be incorporated and determine the price paid for bought out items (Kenneth,

Lysons and Gilliham, 2003)

Customer specification or those lay down by statutory or similar organization

Durability also influence quality specifications for components eg if the expected life

of the final product is only three years is little point in incorporating a component

with a life of five years where cheaper alternatives are available. The reputation of

the product is however, be of paramount consideration (Kenneth, Lysons and

Gilliham, 2003)

2.3.3 The significance of quality

In this day and age, product quality has become a major competitive weapon. As a

matter of fact, Japanese firms’ obsession has with quality has been a key to their

success worldwide, prompting international quality competition. , the quality of

products offered in the market place has not always been a primary concern.

Oriented towards the achievement of short term profits, they are often given

precedence to cost management of most companies has routinely expressed a

commitment to supply quality items, buyer experience with a broad array of products

all to often demonstrated the awareness of this commitment. The appearance of

automobiles models for resistance has been a dependable as the autumnal equinox.

But so, too, has unfortunately been the respect that a large proportion of these new

cars contain a variety of inconvenient bags, and programs are not symbols of a

commitment to quality but rather indicators of its absence.

(Smith, 2002)

In recent years, however, the concern of product quality compliance has increasingly

attained a more significant role in American corporations. Major elements in this

gradual but ever more pervasive trend have been the market share gains of foreign

competitors based on the perception of superior quality of foreign made goods and

the growing awareness and the instance of consumers upon quality of in the items

that they purchase. The market place has taught management a lesson: buyers are as

interested in quality as they are in price of a product.. Indeed many consumers are

willing to pay more for an item that satisfies them and will shun a cheaper item that

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disappoints them. As product experience shapes the image of the company in the

mind of the buying public, the company or product with a reputation for superior

quality has a competitive edge in the market place. Firms that stands behind their

product unconditionally (satisfaction guaranteed or life time unlimited warranty) like

cross pens or sears craftsman tools have many royal customers (Lee, 2000)

In confronting the growing consumer demand the product quality adherence,

corporate managers have been compelled to re-consider their traditional concern for

the bottom line as well their ingrained perception that quality costs money, and

therefore detracts from profits. This mistaken impression that the achievement of

superior quality is a costly undertaking rests largely on an image of quality control as

a technique that applies various inspection methods to sort out bad products forms a

firms output. This approach in fact, characterized the quality programs of American

companies for decades. As it was, indeed expensive, for it involve not only labor and

equipment cost required to inspect the product but also took for granted the

production of substantial quantities of bad products that has to be reworked, repaired,

or scrapped at a considerable additional cost. This outlook has become a way of life

in American industry (Johnson, 1985)

When corporate America began to examine the methods for its increasingly

successful foreign competitors, however, it discovered that they achieve consistent

quality in a very different way. Rather than sorting good units from bad ones at the

end of production line and assuming a substantial cost related to inspection, rework,

repair, and scrap, these competitors had developed manufacturing techniques that

minimize and sometimes virtually eliminate the fabrication of bad products. This

approach simultaneously reduces cost and enhances quality. The importance of doing

it right the first time has been emphasized by the following statement: quality is not

right, it is free. And is not only free, it is the most profitable product line we have. As

will be discussed shortly, it is the absence of quality not its presence that is costly to

the company (Weber, 1985)

14

2.3.4 Ways to specifying desired quality

To satisfy customer expectations and be successful in the long run, a firm must first

determine what those expectations are and define them as explicitly as possible. The

identification of customer expectation is the task of marketing, research, although

many consumers experience difficult in articulating quality and its requirements. The

resultant documentation of customer expectation and requirement is referred to as

specification.

This document clearly describes customer requirement and define the explicity detail

the materials, the manufacturing, operations and testing procedures to be utilized in

the manufacturing operations and the testing procedures to be utilized in measuring

the fulfillment of these requirements. The completeness and accuracy of a

specification and absolete adherence to each requirement that it contains are to the

achievement of product quality. A product that exactly conform to its specification in

every detail will fully satisfy the requirement of the customer (Ishikawa, 1985)

While purchasing has to communicate the desired quality level to suppliers,

responsibly for the accuracy of a specification may rest with the firms ‘engineering

department or an industrial customer.

Whether a specification is developed by a customer or by a producer with the help of

input from the market place , it is essential that its provisions reflect a complete and

accurate understanding of the requirement of those who will ultimately use the

product. Every specification should be jointly reviewed by prepares and users before

production commences to ensure that such understanding prevail.

Once quality requirement it is successful communicated to supplier or manufacturer,

the procurement and supplies management department must insure they inspect

quality compliance of delivered goods before accepting them to storage area

(Ishikawa, 1985)

.

15

2.3.5 The cost of Quality Assurance

Achieving quality assurance on a consistent basis does cost money. The realization

of this goal requires a method for ensuring that only quality materials are used in

making a product and a system for checking conformance to specification in its

production. Essentially, these costs could be reviewed as the costs of quality

assurance or the cost of prevention of quality problems. Such problems can result

from three types of causes that must accordingly be controlled:

i. Poor materials

ii. Variation in machine performance

iii. Inadequate operator performance

Although the factors of controlling these factors are necessary, they must be

optimized to remain competitive. While the consequences of materials related defects

could be minimized by using only superior materials, such a remedy is hardly

appropriate, since the additional cost would not add sufficient value to be recouped

in the selling price. Instead of excessive or best quality, purchasing has to obtain the

best right quality in the purchased materials and satisfy itself that this level is present

at all deliveries (Garvin, 1983)

2.3.6 The Nature of Quality Control

Quality control is the function of making sure that a firms’ output meets customer’s

requirements on a consistent basis. Traditionally, responsibility for quality control

has been vested in a specialized department, staffed by engineers, and tucked away at

every low level in the some obscure corner of the organization chart. The

consequences are fairly obvious.

As a study of the room air conditioning industry reported, at the poorest performing

plants in the industry, the quality control manager invariably reported to the director

of manufacturing or engineering. Access to top management came, if at all, through

these goals between, who often had very different priorities from those of the quality

control manager. Under this arrangement, quality control engineers inspect products

16

at the end of production line on a sampling basis and approve or reject entire lots on

the spot.

Management achieving quality requires the involvement of everyone responsible for

any segment of making and presenting and presenting a product. While a quality

function continues to exist, focus has shifted from detection and correction to the

prevention of defects. This new orientation is an outgrowth of the recognition of

quality defects are avoidable and that their occurrence is largely the result of fault

system or poor Hand in hand with the broadening of quality responsibility has gone

an up –grading of the organizational status of quality function, at times to the highest

levels of management (Jones, 2010)

2.3.7 Introducing Quality Management

A firm that recognized the importance of quality and has made a commitment to its

faces the challenging task of designing and implementing a comprehensive quality

management system. The execution of this task invariably requires not only moral

support but the continuous active participation of top management. Without this

relentless involvement of the firms’ leadership, a companywide quality program

cannot succeed.

Introducing quality management into a company and its supplier pool is largely an

educational task. Since the firm level of quality is principally the result of employees

and vendors attitude toward quality, the main challenge is to change the outlook of

all concerned to a zero defects mentality.

Simultaneously, a fundamental shift should be affected from a reliance on end of the

line inspection to in process application of statistical control techniques. These

involve continuous monitoring of the production process and enable early detection

of process problems, thus prompting appropriate corrective action before the process

veers out of control (Holmberg, 2000)

17

Quality Control (QC) is a system of routine technical activities, to measure and

control the quality of the inventory as it is being developed. The QC system is

designed to:

i. Provide routine and consistent checks to ensure data integrity, correctness,

and completeness;

ii. Identify and address errors and omissions;

iii. Document and archive inventory material and record all QC activities.

QC activities include general methods such as accuracy checks on data acquisition

and calculations and the use of approved standardized procedures for emission

calculations, measurements, estimating uncertainties, archiving information and

reporting. Higher tier QC activities include technical reviews of source categories,

activity and emission factor data, and methods.

Quality Assurance (QA) activities include a planned system of review procedures

conducted by personnel not directly involved in the inventory

compilation/development process. Reviews, preferably by independent third parties,

should be performed upon a finalized inventory following the implementation of QC

procedures. Reviews verify that data quality objectives were met, ensure that the

inventory represents the best possible estimates of emissions and sinks given the

current state of scientific knowledge and data available, and support the effectiveness

of the QC programme ( ISO 9000, 1977)

2.3.8 Statistical process control in Managing Quality of Goods and Services

Statistical process control (SPC), an aspect of quality management, is often seen as a

key part of quality strategy. Basically, the idea is that statistical methods are

employed to ensure that a quality capability is possessed by an organization and that

quality is maintained by monitoring, feedback and adjustment system. Statistical

process control is not, however, just a set of techniques. The idea is that a proactive

approach is taken to the prevention of defective material or service, than the reactive

“correcting” approach of seeking to identify defective work already done.

18

A high concentration of effort on inspection or checking at the end of a process is

indicative that attempts are being made to inspect quality in. if the inputs and process

are coordinated properly, the outputs will meet the specification. This fact is of

particular significance to the procurement function to ensure quality compliance on

procured goods.

The goods and services acquired as inputs for the organization are, of course,

somebody else’s out puts. If the supplier complies with the required quality as per

terms and condition of the contract, then, we can have confidence that our inputs will

be in accordance with the technical specification and requirement agreed upon

(Bally, David and Jones, 2008)

2.3.9 Quality Assurance Concept

Net Work Systems Service was formed in 1984 to satisfy customer requirements for

data networking products. This business has developed well and is expanding

successfully. Additional capabilities have been added to the organization to include

technical assistance and support, installation, maintenance of products and systems,

and design of systems. The company is now engaged in including design,

engineering, stocking and distribution, installation, commissioning and maintenance

of equipment and systems. This Quality System relates to the full range of company

activities (Khalifa and Liu, 2003)

2.3.10 Policy and Objectives

Net Work Systems' quality policy is to achieve sustained, profitable growth by

providing services which consistently satisfy the needs and expectations of its

customers. This level of quality is achieved through adoption of a system of

procedures that reflect the competence of the Company to existing customers,

potential customers, and independent auditing authorities. Achievement of this policy

involves all staff, who are individually responsible for the quality of their work,

resulting in a continually improving working environment for all. This policy is

provided and explained to each employee by the Managing Director or Quality

Manager. To achieve and maintain the required level of assurance the Managing

19

Director retains responsibility for the Quality System with routine operation

controlled by the Quality Manager.

The objectives of the Quality Assurance System are:

i. To maintain an effective Quality Assurance System complying with

International Standard ISO9001 (Quality Systems).

ii. To achieve and maintain a level of quality which enhances the Company's

reputation with customers.

iii. To ensure compliance with relevant statutory and safety requirements.

iv. To endeavor, at all times, to maximize customer satisfaction with the services

provided by Net Work Systems ( Oliva and Oliver,1992)

2.3.11 Quality Planning

As the Company operates a standard type and range of services, customer

satisfaction and quality are achieved by operation in accordance with the documented

quality system. Specific customer requirements are identified and documented during

the contract review process, allowing these requirements to be communicated and

achieved, ensuring satisfaction of all customer declared needs (Barry and David,

2010)

2.3.12 Management Review/support and Internal Audit

Management review of the suitability and effectiveness of the Quality System take

place at least twice per year. During the management meetings actions are allocated

and minute to record the development of the Company's management system. The

objectives of Management Review are:

i. To establish that the Quality (Management) System is achieving the expected

results and meeting the Company's requirements, continuing to conform to

the Standard, continuing to satisfy the customer’s needs and expectations, and

functioning in accordance with the established Operating Procedures.

ii. To expose irregularities or defects in the System, identify weaknesses and

evaluate possible improvements.

20

iii. To review the effectiveness of previous corrective actions, and to review the

adequacy and suitability of the management system for current and future

operations of the Company.

iv. To review any complaints received, identify the cause and recommend

corrective action if required.

v. To review the finding of internal/ external audits and identify any areas of

recurring problems or potential improvements.

vi. To review the reports of nonconforming items and trend information to

identify possible improvements.

Internal audits of the Quality System are undertaken at least once per annum to

confirm that the function concerned is adhering to the Company's Procedures. A

comprehensive Audit programme is compiled at least a year in advance however,

should particular needs be identified, and the frequency of audit may be increased at

the discretion of the Quality Manager.

Audits are undertaken by auditors who are trained in auditing and not directly

responsible for the functions being audited within that Company. Nonconformance

observed is brought to the attention of the person responsible, and is recorded,

documented and subject to timely corrective action to ensure full rectification

(Wynstra & et al. 1999)

2.3.13 Contract Review

The Company offers both standard products and specialist services to meet each

customer's needs. Standard products are displayed in a catalogue for customer

selection. Specialist service requirements differ from one customer to another (and

from one contract to another), therefore each tends to be quoted for the specific

contract.

Once a proposal is accepted by the customer, or an order is placed, it is recorded and

reviewed to establish that the requirements of the order are adequately defined and

21

documented, any differences from the proposal are resolved, and the Company is

capable of fully satisfying the customers’ requirements.

In addition to the original order/ contract specification the customer may also request

addition/ variation work to be undertaken by the Company. In these circumstances

the work content is documented and agreed with the customer prior to execution to

ensure that no ambiguity exists. The Company operates on a computerized order

processing system to ensure rapid fulfillment of customer orders (Disney, 1994)

2.3.14 Design Control

All Design activities are strictly controlled to ensure that the design output

information complies with customer/ contract requirements, and all design input

data.

Design activities are planned and normally executed by specialists and are subject to

regular management, review and verification by the Sales Director, and where

relevant, agreement with the Customer.

The design input and output items are documented, and where ambiguity exists, will

be clarified and documented. All items of design documentation and notes are

recorded in a design project file. Design output documentation is produced and

reviewed to ensure that it: meets the design input, references the design input or

appropriate criteria, and identifies all of the characteristics which are critical to the

safe and effective operation of the system(s).

Design output is reviewed and approved by the Sales Director, and is also provided

to the Customer for approval prior to use. Validation of the design is achieved during

commissioning of the system to confirm compliance to the customer's requirements.

The designer is required to specify any inspections or tests which may verify the

design, by practical means, at the earliest possible stage of development. All changes

to the design criteria, input or output are subject to strict review and documentation

control procedures (Call, 1993)

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2.3.15 Documentation Control & Change Control

All documentation utilized within the Company related to the management system

itself, or to the execution of individual customer contracts is controlled to ensure that

it is issued to the appropriate personnel, under the correct level of authority, is

revised and reissued as necessary, and all obsolete versions are removed from the

point of use.

Such documentation typically includes:

i. Specifications, Customer Orders, Plans/ Drawings, Quality Assurance

Manual/ Operating Procedures, National/ International Standards and Codes

of Practice.

ii. The Quality Assurance Manual, Procedures and Quality Plans are maintained

by the Quality Manager who ensures that the appropriate items, at the correct

revision levels, are issued to all who need them within the Company.

iii. National/ International Standards, Codes of Practice are maintained by the

Support Engineers who ensure that appropriate documents are available

within the Company, and are issued at the correct revision levels. External

suppliers of documentation are contacted regularly to ascertain that the

documents held remain current.

iv. The distribution of standard documents is controlled and recorded on

Distribution Lists, which also show the current issue status. The Distribution

Lists are reviewed and updated as changes occur .All changes to documents

are reviewed and approved by the person responsible for the original issue

and, where appropriate, the nature of the change is indicated on the

document. Master copies of the revised documents are retained as records of

the changes and renewed as necessary to ensure clarity. Each contract has a

File which contains all relevant information. Information is also held on the

company's computer system for ease of access and manipulation (Jessep and

Jones, 2000)

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2.3.16 Purchasing

Suppliers of products, materials and services, where unspecified by a customer

contract, are selected on their ability to meet the company's requirements given due

consideration to the quality, statutory obligations, timescale and cost. A list of

approved suppliers and sub-contractors is maintained which is compiled on the

following criteria:- Previous performance in supplying to similar specifications and

requirements, Stocking of high volume standard items conforming to a relevant

British Standard, or supplied with a statement of conformity.

i. Compliance with an approved third party product/ quality registration

scheme.

ii. Recommendation by other similar purchasers or manufacturers of equipment.

iii. A trial order and evaluation of performance.

All supplies and sub-contracts are subject to an authorized Purchase Order providing

full clarification of the type and extent of supply. Should a supplier, not appearing on

the Approved Suppliers List be proposed, they will be analyzed by capability and

subject to acceptance on the authority of a Director.

2.3.17 Customer Supplied Items

Goods received from customers (i.e. free issue items or equipment being serviced)

are always visually inspected at the receipt stage, with any un-declared non-

conformance being immediately reported to the customer (Calvi & et-all, 2001)

2.3.18 Process Control

All productive work is planned and undertaken in accordance with the company's

procedures, and any specific documents agreed for individual contracts (e.g. contract

specifications).

Work instructions are provided by the agreed contract specification and any

documents referenced therein, alternatively work is performed in accordance with

24

nationally accepted codes of practice in order to ensure the level of quality if is

achieved at targeted by engineers (Emmett, 2005).

2.3.19 Receiving and Inspection

All stores areas are maintained as secure as practical. All items received by the

Company are identified and verified in accordance with the requirements of the

Delivery Note and Purchase Order, and are inspected for correct identity, quantity

and any signs of damage.

All goods received are documented and, in the event of non-conformance, the items

are placed in a reject area or labelled to ensure identification. The extent of the non-

conformance is noted and subject to disposition review by nominated personnel.

(Bally and Fammer, 2005)

2.3.20 Inspection and Testing

Inspection and testing is carried out on completion of installation and maintenance

activities, with results being documented. Should items not be acceptable against the

agreed contract criteria have been repaired, replaced or identified for a subsequent

evaluation and decision? All repaired items are subject to a re-inspection to ensure

acceptability.

On completion of installation and maintenance works, the customer is also invited to

check the work performed to ensure full acceptability (Department of Trade and

Industry, 1995)

2.3.21 Production & Measuring Equipments

Production and measuring equipment held is maintained in good condition, and

capable of safe and effective operation within a specified tolerance of accuracy. Test

and measuring equipment is regularly inspected or calibrated to ensure that it is

capable of accurate operation, by comparison with external sources traceable back to

National Standards.

25

Electrostatic protection equipment is utilized when handling sensitive components

and this equipment is regularly checked to ensure that it remains fully functional.

2.3.22 Indication of Inspection Status

As goods are inspected, the status is defined by location in stores, with all non-

conforming items being placed in a reject area or marked as reject for review. The

status of work in progress is established by markings or associated documentation

recording the inspections undertaken and their acceptability (Jackson and Ashton,

1993)

2.3.23 Non-Conforming Items, Preventive & Corrective Action

Once non-conforming items have been noticed they are identified by location,

associated documents, or specific markings to prevent their inadvertent use. All non-

conforming items and customer complaints are subject to review and rectification by

nominated personnel. The type and extent of non-conformity is documented in order

to establish trends and identify possible areas for improvement.

The corrective action required to prevent recurrence is evaluated, documented, and

its effective implementation is monitored. All rectification is subsequently re-

inspected to ensure complete customer satisfaction.

All employees are encouraged to suggest improvements in methods, materials,

suppliers, and sub-contractors. The Company has established procedures for review

of all activities in order to identify and evaluate all possible improvements in

methods/ materials and its procedures (Plank, 1991)

2.3.24 Training

The policy of the company is to ensure that all personnel are trained and experienced

to the extent necessary to undertake their assigned activities and responsibilities

effectively. The company generally procures and recruits employees capable of

meeting the technical, skill, experience and educational requirements of the

company's activities.

26

All staff and senior employees are responsible for recommending the training needs

of others and for ensuring that all employees allocated specific tasks are suitably

qualified and experienced to execute those tasks. Once training needs are identified

these are provided under the responsibility of the Directors.

Full records are maintained of all training undertaken by employees who concerned

in managing quality of the procured goods (Erridge et-all, 2001)

2.3.25 Ways that can be used to monitor success in achieving quality

Any measurement of quality should therefore be defined in the way it is able to

satisfy the expressed and the implicit need of the process. There are many ways that

company can use to measure quality aspects of its operations. One of such way

would be through the assessment of the external quality which in this case refers to

customer satisfaction. Customer satisfaction can be assessed through various means

using the financial and non-financial attributes.

The overall satisfaction of the consumer is expressed in their reaction towards the

product or services offered. A simple survey using a questionnaire can be used to

collect data about the satisfaction of the customer. The increase or decrease in the

number of customer served can also be used to assess the satisfaction of customer

and therefore the improvement in quality (Drucker, 2004).

The other way can be through the assessment of the internal quality marked by the

efficiency of the internal operation of a company. This can be assessed by the way in

which company function in scheduling of jobs, reduction in internal conflicts,

reduced complains from the customers. These are some of the way that can be used

to assess internal quality improvement. But the generally the delivery of services to

customers will be the best way that will be used to assess improvement in quality of

goods and services (Drucker, 2004).

2.3.26 Action to improve quality

The purpose of any quality improvement procedure been to ensure that a company

charges the way it had been operating before and it adapts a new way of operation

27

which will improve the delivery of services as compared to the way it had been done

before. It is one thing to talk about improving quality and another thing to improve

quality. Therefore for a company that really intends to improve quality, there has to

be actions that are specifically directed to address the issue. There has to be

assessment of the current quality in the company and coming up with new plans to

improve quality of goods and service.

There has to be setting of standards of quality that will act as benchmark for the

company to gauge its improvement. These standards can be sought from other

companies or they can be set according to the capability of the company. Once there

is a plan in place and standards for gauging its operation, the company must then put

the plan into actions. This should be followed by continuous monitoring process that

enables strategically to implement changes that are needed in course of the operation.

From time to time there has to be evaluation of the plan according to the standards

that were set (Gilbert,Veloutsou and Goode, 2004).

2.3.27 Why is it important for the organization to get its customers assessment

for the quality it provides?

For organization growth and development, customers feedback/ assessment is

important, customer assessment helps to contribute long-term loyalty since from

customers feedback mistakes can be corrected. Through organization effort to

improve its market share involves efforts by company to satisfy the needs of the

customers.

Customer satisfaction is the major key to boosting sales and profitability and for this

reason many businesses are attempting to redefine their traditional practices of

generating quality customer service.

It is important also because customers of today have grand expectations for a variety

of products and with the contemporary focus on state-of-the-art products in their

minds. Client relationship are nurtured through more frequent contacts that help to

better understand client needs and deliver them cost effectively.

28

Importance of customer’s assessment:

(i.) Providing solution to customers problem

Through customer’s assessment / feedback the company can manage to provide

solution to customer’s problems that is by improving the current situation example

improving customer care and after service feedback. The company needs to improve

the customer care service since when you call then for help; their line is not

reachable or is busy

(ii.) Customer assessment creates satisfaction

Improving quality of product or service Produce a work environment that, Helps

people live better treats people with dignity this can be effective by involves people

in the planning of work that affects them to maximize the pride and joy they derive

from their work (Deming, 2010)

2.3.28 Does the customer have expertise to assess the quality of goods?

Service quality is judged in the basis of whether it meets expectations of the

customer. Through the whole process of provision of services customers can note

how well the service was designated and produced to them. They also can sense that

the service given is complete or incomplete and be able to judge the quality of the

service given.

Length of the service also can make the customer know the quality of the service he

is given for example if he has been served for a long time with simple demand to him

this is automatically poor service.

2.3.29 In what ways could the company monitor its success in achieving quality?

Most businesses achieve success not because they bring a truly innovative idea to

market, but rather because they dazzle customers with excellent products. Yet a

focus on superior execution that is, on quality is easier said than done. To be

successful project to project over a period of years, a company has to develop habits

that instill a passion for quality in all corners of the organizations. Here are five

29

habits of organizations that focus on quality. Would you say that your business has

developed them?

(i.) By setting clear expectations.

To achieve quality, you have to define it, and you have to make sure that definition is

disseminated throughout the rank and file. "It's the job of any business owner to be

clear about the company's nonnegotiable core values.

(ii.) By collecting and analyzing data effectively:

Collecting data is more common than ever, particularly with the advent of Web

analytics. But companies that focus on quality have long stood out thanks to their

passion for data. Moreover, the metrics they track go above and beyond either web or

financial information. Customer surveys play a major role in the company's growth,

through the information collected at all kinds of intervals, and results to be shared

within organization.

(iii.) By invest in capacity:

An organization stretched thin on resources will never be able to over deliver, and

quality depends somewhat on the ability of a company to exceed expectations. By

making sure that all customers are accommodated and served well under good

surrounding not in a queue or congested environment so quality should be on every

aspect of organization that customer comes into contact with during service

provision.

(iv.) By promoting from within:

Hiring can be a crapshoot, even with the most formidable screening systems in place.

So companies with a focus on quality know that one of the keys to success is to

develop talent from within. Begin by looking for current employees who possess the

characteristics of your best performers, and create mentoring relationships and

employee training programs to bring them along. Recruiting employees from within

has the added benefit that they will already understand your company's products and

30

services. And promoting from within tends to help you reduce your overall turnover

rate, which will in turn help you achieve ever higher standards of execution.

(v.) They celebrate victories:

When you survey your customers/users on the quality of product, make sure that

everyone, from the top down, knows of the results and receives recognition for the

things that are going well. Behavioral research has shown that you get more of the

behavior you reward. So don't make the mistake that many quality-minded managers

make, which is harping on only the areas of poor performance; make sure you

highlight those employees and teams who are doing exceptionally well, and involve

all employees in brainstorming ways to improve the things that are unsatisfactory.

However all the above have to be achieved by applying all the ten management

decision with the emphasis on quality within each of them. Every decision should

focus on quality management and quality products and service to customers (Juran

and Deming, 2008)

2.3.30 Goal to provide quality products

What customers would expect from these organizations is the following:

Its services to be of high quality but under low cost just like what we see on leader

companies who providing quality services and products under a low cost whereby we

see all people of all status can have access to its products. (Stivers, B. 2006)

Their services should have some differentiation features which can note be seen on

other competitors providing the same services. Taking an example of leader

companies its products are very cheap when compared to other companies, those

companies have a lot of promotions that attract a lot of customers in all parts of the

markets. (Stivers, B. 2006)

(i.) Competent staff

Here I would expect all staff to be competent in their position in serving customers.

All staff to know the organizational strategies and all the ten decisions and know

31

how to apply them effectively so as to produce quality products to customers

(Stivers, B. 2006)

(ii.) Quick response

Organizations like the above are expected to have the ability to rapid response to

customer queries and the ability to solve customers’ problems beyond customer’s

satisfaction. Also whenever happen that something is not right within the

organization management has to have quick response when it comes to make certain

changes which will benefit the company as a whole and one that will meet the

company’s strategy of producing quality services (Stivers, B. 2006)

Also any organization with the focus of quality service should put quality as their

main item among so many in their organizations strategies. Quality attributes should

be indicated in the strategy and there should be clearly known tactics to be used so as

to reach the goal of quality service provision (Stivers, B. 2006)

2.3.31 How to build a culture of quality in organizations

For the company to build a culture of quality they should do the following:

Building quality into the services to be a spirit of all the staffs. All staff must be

aware of the goals of a company which among many will be to provide quality

services to its customers; they should strive to learn new things including new

products, services so as to increase their competence in the process of performing

quality services to customer. (Wynstra, et-al, 1999)

2.4 Empirical Studies

2.4.1 Tanzania case

Prime Minister, Mizengo Pinda said that when made the remarks in Arusha on 14th

December, 2011 to the 2nd Procurement and Supplies Professionals and Technicians

Annual Conference at the Arusha International Conference Centre (AICC), the

Government have no longer tolerated losses incurred in local councils, other public

institutions and private sector through malpractices that are conducted by

procurement and supplies professionals.

32

He said public procurement expenditure in Tanzania, like in other developing

countries, accounts for nearly 80 percent of total Nation’s Development Budget

especially in provision of goods, works, services and advisory services popularly

known as consultancies.

He said for quite some time, the country has witnessed poor quality materials and

goods being procured, partial or non-deliveries of procured goods, over-invoicing,

damaged goods, stolen and misappropriated materials, poor recording and storage of

materials, dubious procurement contracts and corrupt practices in procurement and

materials management functions

.

“Such weakness therefore cannot be tolerated. As I said earlier, materials and

contract works consume about 80 percent of Nation’s development budget… Such

losses therefore, are working against our efforts to hasten economic growth on

poverty reduction and improvement of welfare of our citizens,” he stressed.

He told the participants that a recent procurement audit conducted by PPRA in 174

procurement entities of which 63 were ministries, regions, independent departments

and agencies, 60 were parastatals and 51 local government authorities (LGA’s)

revealed that, the level of compliance to the public procurement act 2004 was low as

only 68 percent of those audited complied.

He told them that 39 entities scored above 80 percent, 115 recorded an average level

between 50 and 80 percent while 20 scored below 50 percent. He said the areas that

had poor performance were: Procurement Planning, Establishment of Procurement

Monitoring Unit (PMU), Quality Assurance, Contract Management as well as

Publication of Awards.

The report which also included value for money audits in 136 construction projects

including 81 road projects, 33 building projects, 13 irrigation projects and seven

bridge projects revealed that only 61 projects which is 44.9 percent were

implemented in adherence to the Law.

33

On the other hand, Premier Pinda added that 59 projects which is equivalent to 43.4

percent had an average level of performance while 16 projects or 11.8 percent

projects were poorly implemented.

Furthermore, the Premier said, the immediate effect of inefficiency and malpractices

in the Management of Procurement and Materials is excessive Government

expenditure. He cited some dubious transactions in some procurement entities where

a total of 238.84 million shillings was paid for non-existing works in District

Councils of Bahi, Geita, Magu, Mvomero and Sengerema.

Premier Pinda said the Controller and Auditor General’s (CAG) reports on the other

hand have revealed huge losses that the Government incurs year after year through

Procurement.

“For the financial year ending 30th June 2010, for Central Government Ministries

and Departments, the CAG cited instances for non- compliance with Public

Procurement Act, 2004 specifically on four areas namely: Frequent Procurement

purchases based on direct shopping or quotations, instead of competitive tendering;

Lack of planning for procurement projects; Ineffective Tender Boards e.g. failure to

meet regularly and inadequate records keeping on procurement proceedings.

“The report indicated that there was a non-execution or delay in completion of

contracted works in a number of capital projects and contracts to a total of Tanzanian

Shillings 1.5 billion. These were caused by inadequate supervision and monitoring,

inadequate plan, and design of poor works at initial stage of the Contract or Project,”

he said.

“The need for efficient, transparent and cost effective procurement system in the

country cannot be over-emphasized. In this regard, I urge PPRA to work together

with CAG to help the Government address the problem of non -compliance to the

Public Procurement Act that causes heavy losses of Public Funds.

34

He said the planned level of compliance to the Law by the Government is aimed at

achieving 80 percent compliance by the year 2013/2014. He urged all Government

Procurement Entities (PE’s) to make sure that they reach that target (www. the

habari.com, 14th Dec, 2011)

2.4.2 America Case

A quality assurance technician reviews products and services to make sure they meet

certain standards of quality. In many companies here in America, the quality

assurance/quality control (QC) labor department is a focal point of the corporate

mission and administration. Because of the importance of quality, a quality assurance

technician must often be highly educated and experienced in the particular

manufacturing methods and products him or her deals with.

Quality assurance is accomplished by a variety of methods depending upon the

product or service to be assessed. Such methods include, among many other things,

taste-testing, visual and physical inspection, micrometer measurements, liquid level

measurements, viscometer testing and, in the case of service providers, listening in

on or being present at sales presentations and customer interaction.

The quality assurance technician, often assuming the role of quality control, not only

performs individual checks and/or tests on various products and services, but is also

responsible for maintaining the long-term continuity of production and service

quality. Thus, attention to paperwork, computer data and any other necessary

documentation is vital in affirming and raising quality standards over the long term.

In addition to helping respond to customer queries, such documentation provides

production personnel a measurable quality goal to efficiently sustain and, hopefully,

exceed. It is essential that production people are aware of the quality standards

expected of them. Therefore, another function of quality assurance personnel is the

education of production personnel regarding changes in quality standards and

procedures. A quality assurance technician, especially in the field of manufacturing,

ought to be familiar with all of the various safety procedures and manufacturing

methods in their work environment. He or she must also stay current with trends and

35

changes that might affect the quality of the products or services they are responsible

for.

Testing and inspection are also required on various products and methods so that a

manufacturer will remain in compliance with the multitude of safety and

environmental regulations. The Occupational Safety and Health Administration

(OSHA), the Environmental Protection Agency (EPA), and various other federal and

state regulatory agencies have all instituted rules and regulations governing

manufacturing practices and products. In large measure, it is the responsibility of the

quality assurance department to maintain compliance with these regulations.

Responsibility for reporting lapses in or serious breaches of quality standards to the

proper supervisory personnel is an important step in controlling and assuring the

maintenance of expected quality levels. Failure to do so would result in continuation

of lapsed practices and the eventual failure of the business in the world markets.

Quality Assurance

Outstanding quality it's no accident…Amazing as it might sound, it’s not the

incredible selection of products & formulations that we produce each year for

numerous clients that makes us most proud. It’s the quality control standards we

have set up and follow through every phase of product development. From the

moment the raw materials enter our plant, until finished products appear in your

warehouse, we ensure every product meets our incredibly high standard of

excellence. (Oxford University Press, 2011)

In today's competitive marketplace it’s more critical than ever before that you protect

your brand at all costs. That’s why we produce all products using manufacturing

standards which are higher than those required for nutritional supplements. Even

though our strict guidelines are not required by law, we believe following them

makes our products far superior, while also providing our customers with an added

measure of assurance. (Oxford University Press, 2011)

36

Materials Testing

We receive raw materials from all around the world. To ensure we’re starting out

with the very best ingredients, each batch of material undergoes rigorous scientific

testing by our quality control experts.

While most companies only randomly test samples of the raw materials they receive,

we test every barrel that comes in every time. Each material is sampled and

quarantined until it is completely approved. (Oxford University Press, 2011)

Next, we perform full Microbiological testing. This assures that every product meets

required standards. We also screen materials by using modern equipment of high

technology no adulterated material will ever pass our lab! (Oxford University Press,

2011)

Once all testing is complete and approved, each ingredient is issued a Certificate of

Analysis. This our first line defense to guarantee that our ultra strict purity, safety

and potency standards will be met.

All of this is made possible thanks to highly qualified personnel who care about your

finished product, and by heavily investing in the most advanced lab equipment

available today.(Oxford University Press, 2011)

In fact, we are the first in producing drugs, ICT equipment, automobiles and

electrical goods of high quality in the world market and our esteemed customers have

approved and accepted our products (Oxford University Press, 2011)

2.5 Conceptual Framework

The target of the Ministry of Agriculture, Food Security and Cooperatives is to

satisfy their customers and user departments through offering timely and quality

services. In order to achieve this intended end state MAFSC need a strategic

procedures and policies, qualified procurement personnel and adherence to technical

specifications which will provide effective and efficient quality assurance so as to

achieve the organization’s goals.

37

Figure 2.1: Conceptual Framework Model

Source, Gartner, (2011)

Figure 2.1 shows that an existence of qualified procurement personnel, procurement

policy and procedures and adherence to technical specifications leads to users or

customers satisfaction with the quality of goods or services being procured but non -

existence of the said above is vice versa and therefore highlighted the importance of

training, seminars and workshop to the procurement personnel in order to improve

quality of goods or services procured.

38

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter represents research methodology used in this study to collect relevant

information regarding compliance of quality assurance. Furthermore this chapter

present detailed idea about how the research conducted, this include research design,

population of the study where research conducted, sample size, sampling technique,

data collection method and data analysis techniques.

3.2 Research Design

Saunders et. al, 2003 defines a research design as “a basic plan that guides data

collection and analysis phase of the research project”. This was a case study on

Quality assurance on procured goods in Government Institutions the case of Ministry

of Agriculture, Food Security and Cooperatives. A case study is an empirical inquiry

that investigates a contemporary phenomenon within its real life context, especially

when the boundaries between the phenomenon and context are not clearly evident

(Robson, 2002). By using the case study the researcher gained a rich understanding

of the context of the research. The data collection method in case study may include

questionnaires, interviews, observation and documentary analysis (Saunders et. Al,

2003).

3.3 Area of the Study

The study has been conducted at the Ministry of Agriculture, Food Security and

Cooperatives Head Quarter office located in Dar es Salaam (along Mandela Road).

The section of the study area based on the reasons that almost all data available at

headquarters and is the ideal area to the researcher due to financial and time

constraints.

39

3.4 Population of the Study

Adam, (2006) defines that Population is the totality of the objects under the

investigation. Population of this study consisted of employees of the MAFSC; the

number of people to be inquired was determined by the role of the part concerned in

the ministry which are user department and PMU staff with regard to the nature of

the topic, the inquiry was focused on members of the MAFSC whose tasks in one

way or another are related to procurement. Researcher at the moment has visited

different officers of different departments including officers in Procurement

Department.

3.5 Sample size and sampling techniques

Blank (1984) define a sample as “a subset or portion of the total population”.

Information was drawn from six departments basing on the judgmental sampling

technique; the sample size of 32 persons was drawn from a targeted population from

each of the respective departments and sections/units.

The researcher went about the number above due to the number of organization

departments which were to be involved in this research study with their procurement

departments concerned. Sixth members from the tender board, sixth members from

the PMU and sixteenth members from User departments, four members from tender

board and Accounting/chief departments, the researcher came about this number due

to the willingness and availability of respondents to be attended the questionnaire

and interviews from each department. The researcher involved the following staff in

data collections, the stores officer, establishment’s officers, suppliers officers,

departments of procurement information’s others were the head of tender board, head

of PMU, as well as head of user departments.

The researcher used non probability sampling technique because it has been easier to

select units from a population that are interested in the study as well as less time

consuming and it was inexpensive to gather the required data. Bickle, R., &

Papaginnis, G. (2001) contend that“the advantage of non-probability samples is that

they are less complicated and more economical than probability samples.”

40

A core characteristic of this method is that, non-probability sampling provides a

range of alternative techniques to select samples based on the subjective judgment of

the researcher (Saunders et. Al, 2003 ).

3.6 Types of Data

In conducting this study; both qualitative and quantitative methods have been

employed during the data collection. This, as a matter of fact, implies that both

primary and secondary data have been collected. On account of using primary data,

the researcher used interviews, questionnaires and observation as major means of

gathering primary information from the respective sampling procedures.

On the other hand, the researcher obtained secondary data by means of reviewing

published reports, tender documents, books, journals, and statistical year books etc

obtained from respective offices, libraries, internet and previous conducted

researches. Secondary data include both qualitative and quantitative data and they are

used principally in both descriptive and explanatory research. (Kervin 1999)

3.7 Data collection Method

The choice of data collection tools was depended on how best they can serve the

purpose of the study. In conducting the study the researcher has used the following

methods:-

3.7.1 Questionnaires

The researcher constructed questionnaires and distribute to all directorate of the

Ministry which receive services from the Procurement Management Unit including

PMU itself. This has enabled the researcher to draw up the conclusion in the study.

The researcher has used both open and closed ended questions form where by the

open ended questions form required the respondents to give their own answer and

closed ended questions the researcher provided answers from which the respondents

have choose. The researcher adopted this type due to its simplicity and coverage in

the sense that a wide number of respondents were covered as you compared to other

41

methods of data collections which required a small number of respondents,

documents and time to attend to.

3.7.2 Observations

The researcher went physically at the procurement department with her presence so

as to investigate compliance of quality assurance on procured goods this known as

participant observation, the researcher also requested inspection reports and tender

documents and all other related solicitation document for the financial year of

2010/11 and 2011/2012. White (2002) outlines some of the important factors to be

observed for the success of observations which are accurate reporting and description

of the topic under investigation, free access to all aspects of the investigation and

plenty of time for the observation to take place.

3.7.3 Interviewing

This refers to the collection of information just through a live, oral or verbal

communication between the researcher and the respondent(s).Under this method the

researcher have formulated pertinent questions which gave relevant answers from

respondents. This method added value to the researcher it has been simplest and

served time and costs. The method used to collect information from different staffs

of different departments in the organization as far as the study was concerned.

The interview was designed and conducted in professional manner and was the

useful way of exchanging views, exploring perception and therefore seeking opinions

from the respondents on various issues pertaining to the quality problems.

3.7.4 Documentary Review

Basically, this technique was used to get information from various documents. In this

study, the researcher was managed to review as many documents as possible such as

evaluation committee reports, award notification files and advertisement files,

auditor reports thus are PPRA Audit Reports and CAG Audit Report., library

materials, rules and regulations pertaining to the study.

42

The researcher intended to observe how the needs for the materials were recognized,

how the requirements were determined, how Specifications for each item were spelt

out, how the need was transmitted to the purchase department. The rationale for

adopting this technique was that the researcher was in a position to extract some

important related information confined to the subject matter of the research.

4.0 Data Analysis and Presentation.

The data generated from the above mentioned techniques were both qualitative and

quantitative. They are presented in a form of tables, Pie charts and graphs. The

qualitative data obtained from the source was subjected to the content analysis.

While on the other hand, fact-findings from quantitative data was quantified in

percentages thereby calculated and, thereafter, was tabulated for ease interpretation

and analysis. However, the bases for interpretation were gained from the literature

review in relations to the research questions established before.

The researcher used-non profitability judgment sampling to target a group of people

believed to be reliable for the study or which was thought typical of universe with

regard to the characteristics under investigations. This is due to the following

reasons, it is very easy to draw, it is less costly and involves less field work since

those units selected were close to each other, and it was more representative of

typical conditions.

43

CHAPTER FOUR

DATA PRESENTATIONS, ANALYSIS AND DISCUSSION

4.1 Introduction

This chapter presents data that has been collected through observations, interviews

and questionnaires from thirty-two (32) MAFSC staffs. Qualitative data have been

presented according to the research questions and the variables identified in the

frame of reference along with the detailed descriptions to help the reader to get a

detailed idea about every key issues raised in the interview and questionnaires, the

participants were informed about the purpose of the study and how the interview

would be conducted. They also got informed of the general goals of the study by

introduction letter. Hereunder are findings of the study:

4.2 Users/ customers satisfaction with the quality of procured Goods

The researcher found that, the quality of procured goods in financial year 2011/12

more than 60% the quality of procured goods was good but 40% of procured goods

its quality was not good. The tenders advertised were 125 in accordance with the

MAFSC approved annual procurement plan though only 70 tenders were awarded.

For example the contract for Supply of ICT Equipment for MITS section. In this

contract the researcher found that, the users of the MITS Section they provided

technical specification which is high above their requirement. Hence, the delivered

servers have big capacity compared to the work to be used. Reason for this the

researcher found that, users are not competent in specifying what they want and

cause big sum of money to be committed in procurement of over specified items.

Another example is the contract for printing of books for agribusiness Training, the

contract complied with procurement procedures but the awarded supplier delivered

poor quality of books. In this matter the researcher discovered that after being

provided with the evaluation report, the team appointed didn’t evaluate the bids as

per evaluation criteria as set out in the ITB, the reason for delivering poor quality of

44

goods is that, the supplier doesn’t have an experience on printing works. Even users

witnessed that the printer after being given corrections still printed books with the

same mistake and some pages was skipped. This is in agreement with Farrel (2008)

who pointed out that customer satisfaction in Ireland based on determining needs and

wants of customers and delivers their satisfaction at maximum more than competitors

can do.

Procurement department must collaborate with user department in specifying their

requirements in order to achieve clear goal and meet specified needs of users. This

will facilitate quality goods to be supplied which suits intended applications.

4.3 Staffs qualification at Procurement Management Unit

In this question the researcher wanted to know the qualifications of staffs in

procurement Management Unit.

Table 4.1: Summary of Responses

Frequency Percent Valid percent Cumulative percent

Non

professional

0 0 0 0

Certificate 0 0 0 0

Diploma 5 17.86 17.86 17.86

Degree 23 82.14 82.14 100

Total 28 100.00 100

Source: Research Findings, 2013

This can be presented in the following figure:

45

Figure 4.1: Summary of Responses

Source: Research Findings, 2013

Table 4.2 shows the qualification of staffs available at Procurement department at

MAFSC

The above table shows 0% of staffs in the procurement department are non

professional

The above table shows 0% of staffs in the procurement department are

holder’s of basic certificates in procurement

The above table shows 17.86% staffs in procurement have diploma

qualifications

The above table shows 82.14% of staffs in procurement department have

degree qualifications.

Due to this results obtained it implies that, staffs in procurement have degree

qualifications because it has got high score compared to other category of

qualifications; hence staffs involved are professionally competent.

46

Procurement department performance depends on qualification of recruited staffs

that have necessary skills and experience to carryout procurement efficiently. This is

of importance because procurement needs appropriate control in place to ensure

procurement complies with relevant legislation. For the organisations to ensure

themselves by performance of procurement departments there must be mechanism in

place to evaluate performance of that department (Violette, 2009).

4.4 Compliance of procurement procedures at PMU

In this question the researcher wanted to know compliance of procurement

procedures at PMU, the answers obtained are as indicated in the table below:

Table 4.2: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 20 71.43 71.43 71.43

No 8 28.57 28.57 100

Total 28 100.00 100

Source: Research Findings, 2013

This is depicted in the following pie chart:

47

Figure 4.2: Summary of Responses

Source: Research Findings, 201

The table above shows the compliance of procurement procedures at PMU so as to

facilitate procurement of quality goods

In the table above witness that 71.43% of respondent agreed that procurement

procedures is well followed at the MAFSC.

And another hand 28.57% answered that procurement procedures it is not

followed at the MAFSC

With regard to the above findings the results witness that there is good procurement

procedures at the MAFSC, the researcher also observed that, in the audit report of

financial year 2011/12 conducted by PPRA observed that the component of

Procurement Procedures/Use of standard tender/contract documents:

This indicator aimed at establishing whether standard tender/contract documents

issued by PPRA were used as stipulated. MAFSC used standard Quotation

documents for Goods, Standard LPOs, evaluation Guidelines, Contract Document

48

and procedural documents issued by PPRA for all procurement processes in

accordance with Regulation 83 (3) of GN No. 97 of 2005. However, non standard

procedural forms were used for Minor Value procurement. MAFSC use form No. 3

issued by PPRA, minute sheets was used for communication, evaluation and

approval.

The score on use of Procurement procedures/standard tender/contract documents is

100%.

Compliance with procurement procedures is a significant predictor of compliance

with procurement regulations. The implication is that the more procurement

personnel are familiar with the regulations, the more compliant they will be. This

finding is in agreement with Gelderman et al., (2006) who in his study on the causes

of non-compliance with European Union procurement directives established that

familiarity with procurement regulations improves compliance. According to

Howsam (1985), “some of the indicators of professionalism include skills based on

theoretical knowledge, existence of a professional association, extensive period of

education, testing of competence, institutional training, licensed practitioners, work

autonomy, code of professional ethics, self-regulation, legal recognition, control of

pay and high status and rewards.

4.5 Performance of Procurement department

In this question the researcher wanted to know the performance of procurement

department, the answers obtained are as indicated in the table below:

Table 4.3: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 17 60.71 60.71 60.71

No 11 39.29 39.29 100

Total 28 100.00 100

Source: Research Findings, 2013

49

The below graphs it shows the responses of the above questionnaire.

Figure 4.3: Summary of Responses

Source: Research Findings, 2013

Table 4.5 shows the answers of performance of PMU at MAFSC

60.71% of respondents answered there is good performance in PMU

39.29% respondents answered that the performance of the department it is not

good

Due to the answers obtained above it shows there is good performance in the

procurement department. The researcher observed that the procurement audit

conducted by PPRA on financial year 2009/10 the entity was assessed to have

attained a compliance level of 80% and on financial year 2011/12 the attained level

of compliance is 86% Due to the answers obtained above it shows there is good

performance in the procurement department.

Procurement performance depends on well-organized department which staffed with

employees who have required skills with experience to carryout procurement

50

functions. The departments must have procurement strategies which support strategic

plan of the organisation. This is in accordance with the PPDA Act (2008) which

stresses that the performance of procurement function/unit needs to be benchmarked

with other procurement units in different organisations in different stages of

procurement so as to improve value for money in public entities.

4.6. Existence management support regarding quality assurance of goods

acquired

The researcher examined formation and function of inspection and acceptance

committee for goods and project managers for non consultancy contracts. Pursuant to

Regulation 127 of GN No. of 2005. A procuring entity is required to form goods

inspection and acceptance committees and projects managers for works and non

consultancy contracts to inspect and prepare final inspection report.

Reviewed contracts showed that Inspection Committee was appointed by Permanent

Secretary (PS), goods received were inspected and Inspection Report prepared.

The researcher also observed that, in the audit report of financial year 2011/12

conducted by PPRA observed that the component of Quality Assurance there was no

quality assurance plan in place and members appointed are permanent members

which is not in accordance with procurement regulations which requires members to

inspect goods must be appointed in each contract because the inspectors must have

experience and qualifications which suits with the nature of items to be inspected

this can cause incorrect goods to be received.

(Sauber et al, 2008) said that for the manufacturing company who strive to achieve

the highest manufacturing standards, clearly defined business processes and well-

trained employees and Quality Management it highly needs management efforts for

the company to meet their desired objective. Therefore, the management focus

should be on implementing quality operating standards for products and services,

human resources management and providing continuous feedback on the effects of

quality management of the company.

51

4.7. Policies and procedures used to govern quality assurance of procured goods

In this question the researcher wanted to know policies and procedures used to

govern quality assurance of procured goods, the answers obtained are as indicated in

the table below:

Table 4.4: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 11 39.29 39.29 39.29

No 17 60.71 60.71 100

Total 28 100.00 100

Source: Research Findings, 2013

The below pie chart shows for the above responses:

Figure 4.4: Summary of Responses

Source: Research Findings, 2013

52

Due to the responses shown above there is 39.29% of respondents who

witnessed that there is policies and procedures used to govern quality

assurance of procured goods.

60.71% of respondents said that there is no policies and procedures used to

govern quality assurance of procured goods at the Ministry.

With due regards to the results obtained above there is no policies and procedures

used to govern quality assurance of procured goods, the researcher through

interviewing with the procurement department have examined there is no policies

and procedures in place to be used as a tool for monitoring quality of procured

goods. What they do is that, A procuring entity is appointing goods inspection and

acceptance committees and projects managers Pursuant to Regulation 127 of GN No.

of 2005 to inspect and prepare final inspection report. Therefore in this case incorrect

goods can be accepted because there are no quality assurance policies and procedures

in place. For example the contract for supply of fumigant, ICT equipment, tractors

and its implements, printing of books there were no any clauses in solicitation

documents which stipulate the inspection procedures during delivery of goods or

services. Also for the contract of works that is constructions of irrigations schemes

and building, there were no evidence on appointment of qualified Project manager.

Below is a pie chart for the above analysis.

With regard to the above analysis, Basheka also said that: An organization have to

establish a guidelines on quality assurance, all key staffs have to comply with the

established and approved guidelines, in this document, guidelines on quality for

policy services and products refers to set of expectations or specifications that are

established by central Government and/or departments for departments to use in

delivering policy services and products so as to meet origination’s expectations

(Basheka, B ( 2008)

53

4.8. How users involved in preparation of technical specifications

In this question the researcher wanted to know if users are involved in preparation of

technical specifications. The answers obtained are as indicated in the table

hereunder:

Table 4.5: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

No 3 10.71 10.71 10.71

Yes 25 89.29 89.29 100

Total 28 100.00 100

Source: Research Findings, 2013

As per answers obtained above there is 10.71% of respondents who

responded that users are not involved in preparation of technical

specifications.

And 25 respondents which is equal to 89.29% responded that users are

involved in preparation of technical information.

Due to the above results it shows that users are involved in preparation of technical

information which is the key significant foundation to procure quality goods and

services. With due regards to PPA2004 and its Regulation there is five key players

in Public Procurement and user are required to act independent and prepare their own

technical specifications for goods which will meet there expectations but user

departments added that they didn’t attend any course which will enable them to

prepare technical specifications.

If necessary the procuring entity may need to use external assistance to provide

technical expertise. The specification is defined and documented during the planning

phase of the purchase. This is vital as it assist the organization in acquiring the right

and required products at a particular point in time, because users plays a big role in

54

making sure that their expectation are met through that procurement. The

specification is usually defined in conjunction with the following tasks:

Market Research: You need to know what the user's requirements are before you

research the market, and the findings from your market research may result in

changes to the specification and

Developing the evaluation criteria: Evaluation criteria are used to assess whether,

and how well, an offer meets the user's requirements. The specification may need to

be clarified if it is found that it is not possible to develop evaluation criteria that

allow for offers to be adequately evaluated (Agaba and Shipman 2008)

4.9. User if attended any course related to quality assurance.

In this question the researcher wanted to know if users have been attended any

course related to quality assurance. The answers obtained are as indicated in the table

hereunder:

Table 4.6: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 0 0 0 0

No 28 100 100 100

Total 28 100.00 100

Source: Research Findings, 2013

The summary of the above responses the researcher illustrates in the below bar chart:

55

Figure 4.6: Summary of Responses

Source: Research Findings, 2013

There is zero percent of respondents who answered this question

There is 28 respondents who responded to this question which is equal to

100%

This result implies that user department didn’t attend any course, workshop or

seminar related to quality assurance in procurement even PMU staff did not attend

any course related to quality assurance. The researcher through the study noted that

staffs have been sent in various short courses but not related to quality assurance in

Procurement.

Quality control and quality assurance tailor made course is of paramount advantage

in the manufacturing, commercial and public sectors, this courses assists staffs with

skills improvements and gaining experience in their field of their specialization

towards ensuring that the quality of goods and services meet predetermined

national and international quality standards.(Mead, 1996)

56

4.10. Existence management support regarding quality assurance of goods

acquired

All respondents to this question answered that there is no any existence management

support regarding quality assurance of procured goods. Also they added that they

didn’t attend any training or short courses in quality assurance. But through

interviewing the researcher discovered that staffs in the ministry attended various

course but in quality assurance in Procurement did not prioritize, furthermore all

respondents said that even management did not support the PMU so as to comply

with procurement of quality goods because through interviewing the researcher noted

that PMU have attended other courses but in its course contents there is no issues

related to quality assurance.

According to the above facts it implies that there is no any existence management

support regarding quality assurance in procured goods to the Ministry. Most

Management need to encouragement their staffs so as to be active and participate in

their work successfully and performs a variety of assigned tasks. So-called

"management support" is "the systematic provision of education and supportive

interventions by management to its employees to increase skills and confidence in

managing their duties and problems, including regular assessment of progress and

problems (Johnson, 1985)

4.11. How long user departments being in the post?

The results are as follows below:

Table 4.7: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

One year 2 7.14 7.14 7.14

Two years 11 39.29 39.29 46.43

Less than a year 0 0 0 46.43

More than two years 15 53.57 53.57 100

Total 28 100.00 100

Source: Research Findings, 2013

The above analysis is shown in the below pie chart:

57

Figure 4.7: Summary of Responses

Source: Research Findings, 2013

2 respondents which is equal to 7.14% of all respondents answered that they

works with the Ministry for one year.

11 respondents which is equal to 39.29% of all respondents answered that

they worked with the ministry for two years.

No any respondents who answered that they worked with the Ministry less

than a year.

15 respondents which is equal to 53.57 answered that they worked with this

Ministry more than two years.

Due to the answers obtained above it implies that many respondents worked with the

Ministry more than two years hence they know much about facts in quality assurance

of procured goods in this Ministry.

Employees who worked in the department for many years entailed excellent

experience in the areas of their specialization. The eye and ear of the firm is highly

contributed by human resources, for the firm to maintain its survival and achieving

58

growth in their core business it depends much with working and work experiences of

its employees, this is according to Arrowsmith T (2003)

4.12. Users if they satisfied with the quality of procured goods

The results are as follows below:

Table 4.8: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 15 53.57 53.57 53.57

No 13 46.43 46.43 100

Total 28 100.00 100

Source: Research Findings, 2013

The hereunder histogram represents the above responses:

59

Figure 4.8: Summary of Responses

Source: Research Findings, 2013

15 respondents which is about 53.57% of respondents said they are satisfied

with the quality of procured goods

13 respondents which is about 46.43% 0f returned questionnaire answered

they are not satisfied with the quality of procured goods.

Due to the above obtained results it witness that users are satisfied with the quality of

procured goods because the score to this question who are satisfied by the quality is

big compared with those who are not satisfied. Also they reported that this change of

good quality assurance is experienced from financial year 2009 to date after

recruitment of professional’s in Procurement and Supplies Management staffs.

60

User satisfaction is the overall performance of the purchasing department, it is

natural to focus on user satisfaction as an overall evaluation of the purchasing

department rather than a particular individual evaluation of a specific transaction

Boulding et al (1993) ,Johnson and Fornell (1991), Fornell et al (1996) overall users

satisfaction should be more fundamental indicator of the firms’ performance due to

its links to behavior and economic consequences beneficial to the firm Anderson et al

(1994)

4.13. Measures taken to solve problems in relation to quality assurance issues

32 questionnaires were distributed and 28 responded which makes 87.5% of the

returned questionnaires. Respondents said that members in the evaluation committee

must be carefully when evaluating solicitation documents of bidders so that they can

recommend suppliers and service providers who are qualified, experienced and

competent in the particular field of specialization, they added that users must specify

well their needs to avoid over or under specifying their requirements and lastly they

said inspection committee must have enough knowledge and experience to inspect

goods.

For the above analysis by virtue of Public Procurement Act No. 4 of 2004 regulation

127.Duties and responsibilities as member of the Goods Inspection committee will

be as follows; inspect the goods delivered at the Ministry, receiving officer or the site

specified in the contract for MAFSC use, Inspect and count the goods in order to

ascertain whether they are correct and complete in accordance with the agreement or

order placed. Accept the goods when found correct and complete, hand over the

goods to the storekeeper and /or user department and inspect and accept the goods

within the time specified in contract or order placed.

4.14. The procurement department if they are staffed by qualified staffs

Respondents to this question are as follows:

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Table 4.09: Summary of Responses

Frequency Percent Valid percent Cumulative

percent

Yes 28 100 100 100

No 0 0 0 100

Total 28 100.00 100

Source: Research Findings, 2013

Below is the summary of the responses:

Figure 4.09: Summary of Responses

Source: Research Findings, 2013

28 respondents which makes the total of 100% of the returned questionnaire

have answered that procurement department have staffed with qualified

staffs. Through interviewing by the researcher respondents they further said

that at the beginning the PMU was not staffed by qualified staff but starting

from 2009, the Ministry have employed competent, experienced and qualified

staff in PMU, all the weakness which were experienced now are no longer

existing.

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No any respondent who said that procurement department staffed by

unqualified staff.

Therefore due to this fact it witness that PMU is staffed by competent and qualified

staff.

Qualifications of employees is important for the success and growth of the company,

the human resources managers have to recruit the qualified, trained, skilled and

competent candidates. These managers have to recruit the right candidate in the right

post with necessary required qualifications which suits with the post (Luke, 2005)

4.15 How quality assurance is done at the Ministry

Respondents to this question have answered that the quality assurance is done with

appointed inspection and acceptance committee by comparing information provided

in the contract document against the tax invoice submitted by the supplier/contractor.

The researcher through the observations had noted that the team appointed to inspect

goods some members don’t have skills to inspect some of delivered goods which

needs technical expertise for example the contract for supply of ICT equipment

(servers) the researcher through interviewing had discovered that goods were

inspected by members who doesn’t have skills in ICT. This can cause acceptance of

inferior quality of delivered goods to the Ministry. Furthermore respondents said that

they satisfied with the quality of procured goods but inferior quality deliverance can

happen very rare.

A quality assurance specialist is tasked with ensuring a product does what it is

supposed to do. These specialists work with products at all stages of production,

from development to testing, and make sure products are safe for consumers. For the

incoming material from outside sources, the quality assurance department they must

have in place a quality assurance plan, this plan it shows the procedures how the

quality will be inspected. The task of these experts is to marry up the information as

per quality plan against with suppliers’ compliance with provided quality

63

requirement. Therefore goods delivered shall be inspected, sampled and tested by

inspection and acceptance experts and shall not accepted unless they comply with the

stipulations of the contract. Contracts shall contain a clause that the supplier shall be

responsible for all costs and expenses incurred due to justified rejection of his goods

on the ground that they do not comply with the stipulations of the contract (PPA,

2004 Section 126).

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CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Introduction

This chapter gives the summary of the main research questions, methodology applied

by researcher and key findings, conclusion and policy implication.

In this chapter the researcher wishes to express the conclusion and policy implication

on the findings concerning what ways of quality assurance as applied at the Ministry

as they have been presented.

5.2 General Summary

The study was on assessment of quality assurance on public procurement case study

Ministry of Agriculture, Food Security and Cooperatives. The main research

objective was to gain better understanding of compliance of quality assurance of

procured goods in public organization.

A sample of 32 respondents was selected. Data were collected through interview,

questionnaires, documentary evidences and observation. Out of 32 questionnaires

distributed 28 respondents about 87.5 percent of the questionnaires were properly

filled and used for data analysis, and the collected data were screened, coded and

analyzed quantitatively.

The first objective of the study was to establish the relationship between quality of

procured goods and the level of customer services in the MAFCS. 15 respondents

which is about 53.57% of respondents said they are satisfied with the quality of

procured goods and 13 respondents which is about 46.43% 0f returned questionnaire

answered they are not satisfied with the quality of procured goods.

User satisfaction is the overall performance of the purchasing department, it is

natural to focus on user satisfaction as an overall evaluation of the purchasing

65

department rather than a particular individual evaluation of a specific transaction

Boulding et al (1993) ,Johnson and Fornell (1991), Fornell et al (1996) overall users

satisfaction should be more fundamental indicator of the firms’ performance due to

its links to behavior and economic consequences beneficial to the firm. Anderson et

al (1994).

Due to the obtained results it witness that users are satisfied with the quality of

procured goods because the score to this question who are satisfied by the quality is

big compared with those who are not satisfied. Also they reported that this change of

good quality assurance is experienced from financial year 2009 to date after

recruitment of professional’s in Procurement and Supplies Management staffs.

The second objective was to determine how training on quality assurance in

procurement influence customer service. All 28 respondents which are 100% of the

respondent answered that; they did not attend any course related on quality

assurance. This result implies that user department didn’t attend any course,

workshop or seminar related to quality assurance in procurement even PMU staff did

not attend any course related to quality assurance. The researcher through the study

noted that staffs have been sent in various short courses but not related to quality

assurance in Procurement.

According to Mead, (1996), quality control and quality assurance tailor made course

is of paramount advantage in the manufacturing, commercial and public sectors, this

courses assists staffs with skills improvements and gaining experience in their field

of their specialization towards ensuring that the quality of goods and services meet

predetermined national and international quality standards.

The third objective of this study was to find out the existence of organizational

support for efficient quality assurance on procured goods. All respondents answered

that there is no any existence management support regarding quality assurance of

procured goods. Also they added that they didn’t attend any training or short courses

in quality assurance. But through interviewing the researcher discovered that staffs in

66

the ministry attended various course but in quality assurance in Procurement did not

prioritize, furthermore all respondents said that even management did not support the

PMU so as to comply with procurement of quality goods because through

interviewing the researcher noted that PMU have attended other courses but in its

course contents there is no issues related to quality assurance.

According to the above facts it implies that there is no any existence management

support regarding quality assurance in procured goods to the Ministry. Most

Management need to encouragement their staffs so as to be active and participate in

their work successfully and performs a variety of assigned tasks. So-called

"management support" is "the systematic provision of education and supportive

interventions by management to its employees to increase skills and confidence in

managing their duties and problems, including regular assessment of progress and

problems (Johnson, 1985).

5.3 Conclusion

This research has been conducted at the Ministry of Agriculture, Food Security and

Cooperatives. Researcher proposed as per research findings of the study is that;-the

Ministry has to appoint inspection committee members who have required/necessary

skills to inspect delivered goods as per their field of specialization. The Ministry’s

management must integrate their organizational support existence of efficient quality

assurance of procured goods in order to achieve the intended organization corporate

goals, to establish and implement quality assurance plan in order to bring the desired

impact to the Ministry specifically in the area of quality assurance of procured goods,

the management must plan to have in house training and short courses for users and

PMU to improve their skills in the area of quality assurance.

This is a good tool to staffs of which will be easy for the management to establish

performance targets to each staff with consistent performance evaluation for each

work performed by them so as to ascertain compliance of quality assurance plan/and

or procedures. The MAFSC PMU has to identify the improvements that are needed

to reduce the risk of errors which cause poor quality of procured goods, PMU should

67

develop a formal Quality Incident Response Plan containing standard procedure for

dealing with data quality incidents, whether before or after data release. Training

would be a part of this initiative and lastly the Human resources should first be

targeted at addressing the human resources issues affecting QA; this will facilitate to

ensure sufficient, well-trained staff to support the MAFSC on attaining QA matters.

Through this feature encourage staffs to work on fulfilling the organization’s policy

on helping their members to build their future. It is important that ministry should

improve efficiency on quality assurance.

5.4 Recommendation

The ministry has justified its existence basing on its strategies of quality assurance.

However in order for the institution to reach the optimal and meet their expected

objectives, the following mechanisms can be applied to minimize or remove all the

shortcomings or ineffectiveness observed from the study:

An assessment to employer’s contribution to effective managing

quality of procured goods in Government Institutions.

Importance of internal control systems for effective and efficient QA

on procured goods/works and or services in public entities.

The ministry should have constant principle on each and every

activity available, such as on inspection and other activities. Also the

organization should keep on following the PPA 2005 for guidance on

its activities.

The Ministry has to appoint inspection committee members who have

required/necessary skills to inspect delivered goods as per their field

of specialization.

The Ministry’s management must integrate their organizational

support existence of efficient quality assurance of procured goods in

order to achieve the intended organization corporate goals.

68

The management must plan to have in house training and short

courses for users and PMU to improve their skills in the area of

quality assurance on procurement

69

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