Project Abstract

Project Overview

<p> 1.0 INTRODUCTION<br>Material Procurement can be defined as the purchase of goods or services at a<br>total cost of the optimum possible in the correct amount and quality of<br>procurement. These goods and services are also purchased at the right time and<br>location to express profit or the use of Government, business, business, or<br>individuals by signing a contract.<br>The process of acquisition of goods or services that are required as a raw<br>material (direct procurement) or for operating purposes (indirect procurement) a<br>company or a person might call acquisition. The procurement process involves<br>not only the purchase of commodities, but also the quality and quantity of<br>controls. Typically, providers are listed and pre-determined by the contracting<br>company. This makes the smoother process, the promotion of a good<br>relationship between the buyer and the supplier.<br>The synonyms for procurement, which are the gain, purchase, and acquire, can<br>shed light on the meaning of procurement. The procurement process may vary<br>from company to company, and a Government entity can have a slightly<br>different procurement process compared to a private company.<br>Acquisitions can also be defined simply as the procedure in which the goods or<br>raw materials are purchased when prices are low. Procurement is advantageous<br>if the goods are purchased in large quantities. E-procurement is another method<br>2<br>of electronic media is used for the acquisition or purchase of goods. Everything<br>is processed electronically, the search for the right bidder delivery and payment.<br>The procurement procedure may vary depending on the product and the uses of<br>the product. Health team must be efficient and reliable, and the procurement<br>process is carried out carefully in order prevent the defective equipment<br>purchase. Another important factor that usually includes definitions of the<br>procurement is the amount purchased the product. This is important because the<br>quantity of purchased goods is inversely proportional to their cost.<br>Thus, acquisition is a process that is carried out by the company almost every<br>individual and for their own personal benefit or benefits, involving the purchase<br>of commodities by choosing the appropriate provider.<br>1.1 Statement of the Problem<br>Most company’s are suffering some set backs due to their procurement system.<br>Most often low quality goods are purchased and they end up loosing money.<br>Also at times, they lack a steady supply, resulting to lack of materials for<br>production, hence the need for computerization of bill of material processing<br>system.<br>1.2 Aims and Objectives of the Study<br>The main objective is to computerized bill of material processing system of<br>business transactions. This will help the manager know when to make purchases<br>of items, ascertain the exact number of each items or stock available, to<br>3<br>ascertain the materials that are either mostly or sparsely used as well as<br>knowing the exact number of each material or items that are lacking thereby<br>helping to improve workflow in the organization. Moreover to reduce time<br>wasted in data processing and information retrieval. And finally to improve<br>management activities, which will lead to improved productivity, accountability<br>and business management of the organization.<br>1.3 Purpose of the Study<br>This purpose of this study is to design a computerized bill of material<br>processing system for a company. This will help in monitoring their material<br>procurement.<br>1.4 Significance of the Study<br>The project is aimed at designing, a new better alternative system to help the<br>organization in material procurement thereby making the management system to<br>be more effective. Also the software designed will help management to: –<br>(a) Maintain a database of materials procured.<br>(b) Safeguard data and information in the system.<br>(c) Reduced workload in the present system.<br>(d) Keep accurate record on material procurement<br>(e) Reduce time wasted in data processing.<br>4<br>1.5 Scope of Study<br>This project work is designed to cover all aspect of purchases of materials in a<br>company. The system incorporates materials procurement recording and stock<br>taking.<br>1.6 Constraints and Limitations<br>During the process of this research work some drawbacks were encountered<br>while trying to get adequate needed data and information.<br>They include the reluctance of the management of the firm under study to<br>release vital information, which they feared would jeopardize the security of the<br>organization. And secondly, time and financial constraints which had great<br>influence to this work.<br>1.7 Assumptions<br>It is assumed that all information gathered with respect to material procurement<br>management information system is correct as implemented by computers.<br>1.8 DEFINITION OF TERMS<br>Procurement: It can be defined as the purchase of goods or services at a total<br>cost of the optimum possible in the correct amount and quality of procurement.<br>5<br>Receipt: Receipt is the process of accepting from sources, all materials or items<br>used in the organization.<br>Issue: This is the process of giving out items from store to various departments<br>in the organization.<br>Computer Program: This is a set of instruction that guides the computer on the<br>action to perform.<br>Flowchart: This is graphical representation of step by step by which computer<br>can follow to execute a task <br></p>