Planing for quality – organization and responsibillity for purchasing
Very few organizations are totally self – contained to the extent that their products and
services are all generated at one location, from basic materials. The total cost of
bought-in material and/or services usually forms a large proportion of the final selling
price of an organizations products or services.Consequently,purchasing is an
exstremely important, specialized function which should never be underestimated. The
make or buy decision refers to the problem encountered by an organization when
deciding whether a product or service should be purchased from outside sources or
generated interlay. Often make or buy decisions and the suppliers are based on price,
but this is a dangerous criterion with which to evaluate these strategic decisions.
Purchasing is an important feature of just-in time (JIT) methods of inventory control.
The development of long-term relationships with a faw suppliers, rather than short-term
ones with many, leads to the concert of coproduces in networks of trust providing
dependable quality and delivery of goods and services. Each organization in the chain
of supply is encouraged to extend JIT methods to its suppliers.