background to the stud1

8/7/2019 Background to the Stud1

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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?............


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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.


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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:


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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 :


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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


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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


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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


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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.


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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.


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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


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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


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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.


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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


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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.


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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


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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.

.


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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


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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.


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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


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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.


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REFERENCE:

Sobek Ward and Liker, 1999

LaBahn, D.W. 2004

background to the stud1

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