THE ROLE OF PURCHASING IN HEALTH SERVICE INSTITUTION (A CASE STUDY OF FEDERAL MEDICAL CENTER OWERRI)
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This research work intend to identify the role of purchasing in health services institutions that is the importance of purchasing function in the over all performances of an organization. Through the health service institution, it will help to make careful and planned purchase activity through cost reduction techniques, value analysis, effective negotiation practice, competitive buying and accurate stores and inventory management, and also identify the over-all purchasing objectives; to buy the right quality, from the right time and at the right price, thereby ensuring a steady flow of material for the smooth running of the operation of the hospital.
CHAPTER ONE: INTRODUCTION
Looking at the topic, the role of purchasing in health service institution. To be candid in every enterprise, no matter how small management will not like huge sums of money due to ineffective purchasing. Therefore, the role of purchasing department in health service institution is aimed at identifying the importance of the purchasing function in the over all performance of an organization.
In every organization, be it profit or non-profit oriented, purchasing department handles about 75% of the organization capital in form of material. A careful and planned purchasing will invariable reap in an appreciable percentage through cost reduction techniques, value analysis, effective negotiation practice, competitive buying and accurate stores and inventory management. I felt the department should be placed in its rightful position, where they have little or no knowledge of purchasing.
The over all purchasing activities can be summarized in the following ways: to buy right quality of materials and equipment in the right quantity, from the right source, delivered at the right price, thereby ensuring a steady flow of materials and equipments for the smooth running of the operation of the hospital. In developing a system to appraise and control the performance of the department, the organization should assign responsibilities to each group, which should be examined to determine has impact that each of the operating department have upon the attainment of the organizations objectives. The purchasing and supply functions is a specialized area of management which required special training and staff development just as any other professional discipline.
All public organizations and department have to make significant reduction in their annual budget to reflect the reduction in revenue. This has lead to substantial cut down on public service over the year for example, government has drastically reduced subsides on findings of education and health service which were consuming, not less than 40% of the annual budget of both federal and state government.
These measures constitute challenges to the professional buyers in making significant saving without further cording the social fabire. The purchasing function, exist as a means to an end, that is, it exist to provide service to users and in doing so, must manage the costs, it is responsible for the degree of contractual risks it place on the organization maintain an ethnical approach to purchasing. Advice on the formation of policies affecting procurement across the federal medical centre assists other department information and advice and the suitability and availability of supply to satisfy their needs.
1.1 BACKGROUND OF THE STUDY
The essence of this research is to reflect the procedure being used for purchasing in health service institution. The research is therefore aimed at identifying the needs or otherwise the solution to the problem of inefficiency and unwise purchasing system.
The investigation will help to discover whether an organization requires the service of a qualified purchasing specialist, whose work is to explore the depth of all procurement matters and problems, thereby offering solutions and or advices where necessary.
1.2 STATEMENT OF THE PROBLEM
The principle problem being investigated is to determine how efficiency, effectively and wisely purchasing activities is being carried out in health service institution. If one should ask, do federal medical centers or private medical center carry out their purchasing functions or activities efficiently and wisely?
Simply put, this question relates to whether or not the hospital are using the right procedure and rules in making their purchases as regards materials and equipment, thereby ensuring efficiency in the entire organization.
1.3 OBJECTIVE OF THE STUDY
To achieve advantage as a result of the use of purchasing department and or professional purchases.
The possibility to buy wisely which lead to reduction in costs and as a result increase savings in the organization. To identify the needs or otherwise the solution to the problem of inefficiency and unwise purchasing system. To know the roles purchasing department play in health service institutions, so that to actualize the intended purpose.
To know if there must be the right quality, right quantity, right source, at the right time and the right price.
1.4 SCOPE OF THE STUDY
The research work is designed to give and insight into the ways of carrying out the nations purchasing activities, purchasing techniques in health service institutions such as Federal Medical Center Owerri.
1.5 RESEARCH QUESTION
- Enumerate the fundamental objectives of the purchasing department.
- State reasons why purchasing function should be a top management function in an organization where materials are purchased to produce its own end product.
- What are the various role the purchasing department play in an organization, so that to actualize the intended purpose?
- What are the costs involved in holding stocks in an organization?
1.6SIGNIFICANCE OF THE STUDY
The research work on the roles of purchasing in health service institution is designed mainly for purchasing personnel administrators and policy formulators in the public sectors.
The main importance of this research is identifying the problems in health service institutions and drawing out a solution to the problem; be it in the aspect of wrong supplier, wrong standard quality, wrong time, wrong price, etc. All these factors need to be solved in health service institution can achieve its objective and satisfy the needs of the public with the 5R’s of purchasing as related to this study.
1.7 LIMITATIONS OF THE STUDY
In actual sense, this study involve the study of some of Federal Medical Center Owerri., but because of the distance of these service institutions, it was not practicable for me being the researcher t carryout research work of these health service institutions.
Time and financial constraints stands as factors that made it impracticable for me to go to Federal Medical Center Owerri.
However, bearing these constraints, researcher has made effort to ensure that no stone was left unturned in the search for materials and evidence necessary for the purpose of carrying out this research successfully.
Time of the FMC staff tends to be very limited and as such tight schedules was the order of the day. By the time the researcher tries to locate one officer, it will be late to meet the other in the office.
In essence, it required patience and courage to make several journeys before one was able to secure the attention of senior personnel whom I felt were in better position to give more factual information.