background to the stud1
Post on 08-Apr-2018
220 Views
Preview:
TRANSCRIPT
-
8/7/2019 Background to the Stud1
1/22
Background to the Study
Top industries was incorporated in 1975.With over 30years experience, it is the leader
of manufacturing household plastic wares and fertilizer sacks in Ghana.
The firm has over 500 employees and 20 plastic engineers. The head office is located at
North Industrial Area Accra.
Statement of the Problem
Early suppliers represent an important element used by most firms to provide the
necessary information needed in the new product development. This study is undertaken
to assess the impact of early suppliers involvement in new product development. The
importance of early suppliers cannot be over emphasized hence no firm can do away
with.
Purpose of the StudyConsumer satisfaction is paramount in ensuring profit maximization and increase market
share. The following justifies the purpose or objectives of the study.
a) to determine the impact of early supplier involvement in new product development.
b) to determine the extent to which early suppliers involvement has been utilized by top
industries in new product development.
Relevance of the StudyThis is in partial fulfillment of the academic requirement for the award of marks as part
my continuous assessment. This research study may offer top industries a competitive
edge over its competitors.
Research Questions
This questionnaire is developed for employees to provide the necessary information.
1. Age.
2. Sex, male/Female
3. Educational background
4. Your position in the company
5. How often do you involve early suppliers ..
6. What impact does have on the company?............
-
8/7/2019 Background to the Stud1
2/22
Literature Review
Suppliers are individuals or businesses that provide goods or services tovendors return
for the agreed upon compensation .As sent they do not interact with consumers directly.
Wholesale suppliers are very common inn retail industry when they are likely to
manufacture and deliver large quantities of product to their client. Suppliers who have
proved in the past to be best in the class are 9invited to participate in the companys
development project at an early stage especially during designing and specification
writing .In this way they are able to criticize future designs ,suggest alternative
materials ,and come up with ideas for more efficient manufacturing etc,at a stage where
engineering changes can be made without severe lost consequences .Early suppliers
involvement has important benefit for companies .The suppliers will be able to advice the
company in the following.
Development of Ideas
Materials to be used in the production.
Appropriate methods of methods.
Availability of materials.
Alternative materials.
Present and predicted materials cost.
Source of appropriate manufacturing capability.
Extent of competing demands for parts.
Information in patents, copyrights and other production of design.
Short term Benefits
These result from improved quality, reduction of product costs, and reduction of
development costs. These benefits results from the suppliers in -depth knowledge of
components and technologies which enable them to match component designs better with
their manufacturing capabilities.
-
8/7/2019 Background to the Stud1
3/22
Long-term Benefits
i. More efficient and effective collaboration in future new product development projects.
ii. The alignment of future technology strategies.
iii. A better access to the technology resources of the supplier.
iv. Contribution of suppliers to product differentiation.
Disadvantages of Early Supplier Involvement
i. Supplier develop a complacent view as preferred source.
ii. Risk of leakage of commercial or technical confidential information ,companies may
be afraid of loosing crucial products or process knowledge and skills.
iii. The fear of becoming locked into a specific suppliers technology which may make
them totally dependent on him in the future, eliminating or reducing competition.
iv. Some large companies expect that early suppliers involvement will lead to higher
relationship costs, since they need to meet and discuss with the suppliers intensively and
frequently.
v. The fear that the ESI will actually slow down development project.
vi. Risk is perceived to result from diverging objectives and levels of commitment to the
overcome of the project.
vii Potential valuable innovation from other sours may be unavailable.
To drive a mutually beneficial relationship in ESI, the following issues have to be
considered:
-
8/7/2019 Background to the Stud1
4/22
i . The presence of mutual interest is an important incentive to remain committed to the
inter-organizational relationship.
ii. The involved supply will be part of the customer team and the developing valve
stream and supply chain philosophy requires a close bonding between companies.This
bonding requires mutual involvement.
iii .The expectations of the customer and the supplier about the way collaboration takes
place and its outcome may change over time and they may even end up I conflict with
each other .Regular review meetings between supplier and buyer are therefore necessary
to make sure perception and expectations between the parties involved are still in tune.
iv. For a successful ESI in new product development, the company needs to develop a
long term view on their make or buy policies, supplier selection and other strategic
supply process. Moreover, they should be experienced I applying modern project
management techniques. They should be able to develop partnership relationships with
the supplier that go far beyond the traditional buyer seller relationship.
Stages in ESI
Early involvement of and collaboration between sepply function, suppliers and the rest of
the design team might involve the following stages.
1. Identification of relevant stakeholders in the design and product development
development activity .The stakeholders may be :
Engineering
Production
Marketing supply department
Supplier(s)
2. Organize cross-functional activities between relevant internal stakeholders to
examine such questions as :
-
8/7/2019 Background to the Stud1
5/22
Commercial feasibility
Technical feasibility
Time requirement
Quality issues
Customer wishes and needs etc.
3. Involve external stakeholders, including trusted suppliers, working with on
technical and issues relating to product development.
4. Work together to consider the development t of appropriate information systems
and the use of re-commerce approach so that planning, scheduling and deliveryof materials can be harmonized with the customers manufacturing programme.
HYPOTHESIS
A hypothesis is a tentative assumption to be tested by research. For the purpose of this
study, the hypothesis will be of to folds:
A) Null Hypothesis
The early supplier does not necessarily help to support a firms product effectivelyand efficiently by educating and persuading the target vendors.
METHODOLOGY
It is a set of method needed to study an action in a particular subject as in education of
science. The possesses that one goes through in educating a researcher is known as
methodology.
POPULATIONIt refers to the number of people living a geographical area of a period of time.
The population determines the amount of goods or product to be supplied.
SAMPLE SIZE
-
8/7/2019 Background to the Stud1
6/22
The sample size refer to the number of element chosen from the sample frame.In this
study, it covered over 500 employer including management am=nd 20 technical
engineers.
SAMPLE PROCEDURE
The sampling method used in this research is the judgment sampling.Judgement samplingis where the researchers use their judgment to select person that they feel are
representative of the population as have particular expertise or knowledge which makes
them suitable. This sample method was used because of the small sample size.
RESEARCH INSTRUMENT
The data collection method used by the researcher was appropriate under the
circumstances because it gave the researcher a thorough and a fair representation of thetarget population. It also presented a high degree of accuracy in the data conversation,
quickly responses such as the personal interviews and conversation; quickly responses
were received from respondents. Way ward responses are avoided and long
surroundings .But people were less likely to answer sensitive questions. Analysis of
such information was also slow .This was due to the difficulties in collecting the data
from management staff, employees and customers o r consumers .With respect to the
sampling nethod,judgement sampling was used because it is commonly used with small
sample size and cost it also low but there is a high likelihood of bids. Both open and
ended questions have particular sequence of answers to enable an easier analysis to be
made.
REFERENCE:
Sobek Ward and Liker, 1999
LaBahn, D.W. 2004
-
8/7/2019 Background to the Stud1
7/22
UNIVERSITY COLLEGE OF MANAGEMENT STUDIES
DEPARTMENT OF PROCUREMENT
EARLY SUPPLIER INVOVLEMENT IN NEW PRODUCT DEVELOMENT
(A CASE STUDY OF TOP INDUSTRIES)
BY
ANGILINA TIWAA BOAKYE
A PROJECT WORK SBMITTED TO THE PROCUREMENT DEPARTMENT
FOR AWARD OF MARKS
JANUARY, 2011
-
8/7/2019 Background to the Stud1
8/22
DEDICATION
First of all I dedicate this project work to the Almighty God for the wisdom, Knowledge
and understanding He has give me throughout the beginning of this project work .I also
dedicate this to my supervisor in the person of Mr. Ofori Mensah for taking his time in
going through. I finally dedicate it to my mother and all my loved ones.
God richly bless you for all your assistance.
-
8/7/2019 Background to the Stud1
9/22
ACKNOWLEDGEMENT
My premier thanks and dedication got o the Almighty God for the wisdom, strength,
knowledge and understanding in writing this project work.
My second thanks go to my supervisor in the person of Mr. Ofori Mensah for his time in
going through this project work. May the Almighty God bless you in his own kindness.
-
8/7/2019 Background to the Stud1
10/22
TABLE OF CONTENT
DECLARATION.I
DEDICATION.II
ACKNOWLEDGEIII
CONTENTSIV
LIST OF TABLES..V
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
1.1 STATEMENT OF THE PROBLEM
1.2 PURPOSE OF THE STUDY
1.3 RELEVANCE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 LIMITATION OF THE STUDY
1.6 OPERATION DEFINITIONS
1.7 ORGANIZATION OF THE STUDY
-
8/7/2019 Background to the Stud1
11/22
-
8/7/2019 Background to the Stud1
12/22
CHAPTER ONE
1.1 Introduction
Production, it is said, cannot be complete until the output reaches the final consumer .As
soon as goods are handled to the ultimate consumer or industrial user the process of
production comes to completion.
In actual fact this is the aim of every manufacturer. The manufacturer therefore decides
how best to supply them in a manner best designed to benefit the manufacturer, thedistributor or supplier and the consumer. For this reason, the involvement of early
supplier in essential in the new product development of the firm.
Competition is strong g and dynamic in most markets. A manufacturer must there keep
developing new products as well as modifying its current products to meet changing
customer needs and competitors actions.
In product development, the emphasis is on designing, maintaining an d improving the
quality of products to make it acceptable to the whole sales as well as customers. As
result, the supplier will be able to advise the firm on the following:
Development of ideas
Material to be used in the production
Appropriate methods of manufacture
Availability of materials
Alternative materials
Methods of manufacturing and supplying
Present and predicted materials cost
Extent of competing demands for parts ,etc
Information on patents, copyrights and other protection of designs
-
8/7/2019 Background to the Stud1
13/22
1.4 Background to the StudyTop industries was incorporated in 1975.With over 30years experience, it is the leader
of manufacturing household plastic wares and fertilizer sawdust in Ghana.
The firm has over 500 employees and 20 plastic engineers. The head office is located at
North Industrial Area Accra.
1.5 LIMITATIONS OF THE STUDY
There is no research project that can be under taken without the researcher facing any
challenge as the economist will say there is no free lunch.
The study had to be done at a time when serious academic work was in session.
Data from management and employees were very difficult to come by. Despite all these
limitations the researcher believes strongly that the study covered enough grounds for
decision making and accuracy of the data.
1.6 ORGANIZATION OF THE STUDY
This study is structured into five chapters. The first chapter deals with introduction,
background, statement of the problem, purpose, relevance, research questions,
limitations, operational definition and organization of the study.
The second chapter deals with the theoretical frame work and literature review.
The third chapter covers the methodology of data in the form of introduction, population,
sample size, sampling procedure, research instrument, analysis tools and organizational
profile.
The fourth chapter deals with data analysis and discussion findings.
Finally, chapter five summarizes the results of the study, recommendations and
conclusions.
-
8/7/2019 Background to the Stud1
14/22
CHAPTER TWO
2.0 LITERATURE REVIEW
Suppliers are individuals or businesses that provide goods or services tovendors return
for the agreed upon compensation .As sent they do not interact with consumers directly.
Wholesale suppliers are very common inn retail industry when they are likely to
manufacture and deliver large quantities of product to their client. Suppliers who have
proved in the past to be best in the class are 9invited to participate in the companys
development project at an early stage especially during designing and specification
writing .In this way they are able to criticize future designs ,suggest alternative
materials ,and come up with ideas for more efficient manufacturing etc,at a stage where
engineering changes can be made without severe lost consequences .Early suppliers
involvement has important benefit for companies .The suppliers will be able to advice the
company in the following.
Development of Ideas Materials to be used in the production.
Appropriate methods of methods.
Availability of materials.
Alternative materials.
Present and predicted materials cost.
Source of appropriate manufacturing capability.
Extent of competing demands for parts.
Information in patents, copyrights and other production of design.
Short term Benefits
-
8/7/2019 Background to the Stud1
15/22
These result from improved quality, reduction of product costs, and reduction of
development costs. These benefits results from the suppliers in -depth knowledge of
components and technologies which enable them to match component designs better with
their manufacturing capabilities.
Long-term Benefits
i. More efficient and effective collaboration in future new product development projects.
ii. The alignment of future technology strategies.
iii. A better access to the technology resources of the supplier.
iv. Contribution of suppliers to product differentiation.
Disadvantages of Early Supplier Involvement
i. Supplier develops a complacent view as preferred source.
ii. Risk of leakage of commercial or technical confidential information, companies may
be afraid of loosing crucial products or process knowledge and skills.
iii. The fear of becoming locked into a specific suppliers technology which may make
them totally dependent on him in the future, eliminating or reducing competition.
iv. Some large companies expect that early suppliers involvement will lead to higher
relationship costs, since they need to meet and discuss with the suppliers intensively and
frequently.
v. The fear that the ESI will actually slow down development project.
vi. Risk is perceived to result from diverging objectives and levels of commitment to the
overcome of the project.
-
8/7/2019 Background to the Stud1
16/22
vii Potential valuable innovation from other sours may be unavailable.
To drive a mutually beneficial relationship in ESI, the following issues have to be
considered:
i. The presence of mutual interest is an important incentive to remain committed to the
inter-organizational relationship.
ii. The involved supply will be part of the customer team and the developing valve
stream and supply chain philosophy requires a close bonding between companies. This
bonding requires mutual involvement.
iii .The expectations of the customer and the supplier about the way collaboration takes
place and its outcome may change over time and they may even end up I conflict with
each other .Regular review meetings between supplier and buyer are therefore necessary
to make sure perception and expectations between the parties involved are still in tune.
iv. For a successful ESI in new product development, the company needs to develop a
long term view on their make or buy policies, supplier selection and other strategic
supply process. Moreover, they should be experienced I applying modern project
management techniques. They should be able to develop partnership relationships with
the supplier that go far beyond the traditional buyer seller relationship.
Stages in ESI
Early involvement of and collaboration between sepply function, suppliers and the rest of
the design team might involve the following stages.
5. Identification of relevant stakeholders in the design and product development
activity .The stakeholders may be :
Engineering
-
8/7/2019 Background to the Stud1
17/22
Production
Marketing supply department
Supplier(s)
6. Organize cross-functional activities between relevant internal stakeholders toexamine such questions as :
Commercial feasibility
Technical feasibility
Time requirement
Quality issues
Customer wishes and needs etc.
7. Involve external stakeholders, including trusted suppliers, working with on
technical and issues relating to product development.
8. Work together to consider the development t of appropriate information systems
and the use of re-commerce approach so that planning, scheduling and delivery
of materials can be harmonized with the customers manufacturing programme.
.
-
8/7/2019 Background to the Stud1
18/22
CHAPTER THREE
METHODOLOGY
3.0 INTRODUCTION
Methodology is a set of methods needed to study an action in a particular subject as in
education of science .The process one goes through in conducting a research is known as
research methodology.
3.1 POPULATION
It refers to the number of people living a geographical area of a period of time.The population determines the amount of goods or product to be supplied.
3.2 SAMPLE SIZE
The sample size refers to the number of element chosen from the sample frame. In this
study, it covered over 500 employer including management and 20 technical engineers.
3.3SAMPLE PROCEDURE
The sampling method used in this research is the judgment sampling.Judgement sampling
is where the researchers use their judgment to select person that they feel are
representative of the population as have particular expertise or knowledge which makes
them suitable. This sample method was used because of the small sample size.
3.4 RESEARCH INSTRUMENT
The data collection method used by the researcher was appropriate under the
circumstances because it gave the researcher a thorough and a fair representation of the
target population. It also presented a high degree of accuracy in the data conversation,
quickly responses such as the personal interviews and conversation; quickly responses
were received from respondents. Way ward responses are avoided and long
surroundings .But people were less likely to answer sensitive questions. Analysis of
such information was also slow .This was due to the difficulties in collecting the data
from management staff, employees and customers or consumers .With respect to the
-
8/7/2019 Background to the Stud1
19/22
sampling method,judgement sampling was used because it is commonly used with small
sample size and cost it also low but there is a high likelihood of bids. Both open and
ended questions have particular sequence of answers to enable an easier analysis to be
made.
3.5 ANALYSIS TOOLS
In undertaking a research, there is the need to gather and collect information using
various tools with the intension to analyze into actionable information for decision
making.
3.6 ORGANIZATIONAL PROFILE
Top industries was incorporated in 1975 .It is the leader in manufacturing household
plastic ware and fertilizer sacks in Ghana. The company manufactures over 100 different
items ranging from ice chests, vacuum flasks to plastic chairs and PVC pipe fittings. The
company has over 500 employees and 20 technical engineers.
-
8/7/2019 Background to the Stud1
20/22
CHAPTER FOUR
DATA ANALYSIS AN D DISCUSSION OF FINDINGS
DATA PRESENTATION ON MANAGEMENT AND STAFF
Questions Answers Frequency Percentage
What item or
product is largely
produced
Ice chests 10 50
Vacuum flask 4 20
Plastic chairs 5 25PVC pipe fitting 1 5
20 100
Graphical Presentation of Data
0
2
4
6
8
10
12
ice chest vacuum flask plastic chairs pvc pipe fiiting
Answers
Frequency
-
8/7/2019 Background to the Stud1
21/22
From the table and the graph, ice chests are largely manufactured representing 50% out
of the total products.20% for vacuum flasks, 25% represent the quantity of plastic chairs
and 5% for PVC pipe fittings respectively.
CHAPTER FIVE
SUMMARY
The involvement of the supplier is only aimed at how often the company uses early
supplier and as well as the impact of early supplier involvement in new product
development.
RECOMMENDATION
I recommend that the idea of early supplier should be strongly received or adapted .
Secondly the firm should embark on more sponsorship programs like social actives like
the Homowo festival, the Ghana premier league etc.
Thirdly, the management should review the prices of their products so as to make more
affordable and at the same time generate reasonable profit.
CONCLUSION
At the end of the study, I found d out that early suppliers involvement really has great
impact in new product development.
-
8/7/2019 Background to the Stud1
22/22
REFERENCE:
Sobek Ward and Liker, 1999
LaBahn, D.W. 2004
top related