NAME: VICTOR KIGEN

REG.NO: HDE222-1107/2017
COURSE:BACHELOR OF PROCUREMENT AND CONTRACT MANAGEMENT
UNIT CODE:HPS 2107
UNIT NAME:MANAGING PURCHASING AND SUPPLY RELATIONS
CAT 1
1.TRADITIONAL MANUFACTURING
Refers to manufacturing principles whereby more focus is put into producing a certain set
number of products each period and holding a reserve incase of unexpected demand. In
traditional manufacturing, costing is a vital process for charting production expenses; costing is
the act of assigning costs to particular production activities and steps. The goal is to assign costs
to the parts of production that actually produce related value, known as the matching principle.
In this situation, costs are typically categorized by department or stage, with one cost being
assigned for all resources, all labor and so forth.
2.LEAN MANUFACTURING
This is a manufacturing principle which emphasizes on minimizing costs in the manufacturing
process. In lean manufacturing, the traditional methods of costing create problems. Lean
manufacturing tends to use techniques like work cells in order to easily adapt to new product
needs and rapidly shifting production amounts. With a variety of different work cells, each often
requiring its own types of labor, resources and machines, broad costing procedures do not work
as well to represent production expenses.
3.AGILE MANUFACTURING
This is a term applied to an organization that has created the processes, tools, and training to
enable it to respond quickly to customer needs and market changes while still controlling costs
and quality. Agile manufacturing is an approach to manufacturing which is focused on meeting
the needs of customers while maintaining high standards of quality and controlling the overall
costs involved in the production of a particular product. This approach is geared towards
companies working in a highly competitive environment, where small variations in performance
and product delivery can make a huge difference in the long term to a company's survival and
reputation among consumers.
Explain how procurement sector inter relates with other sections in an organization.

1.Procurement-Stores

Procurement department in an organization inter relates with the stores department in availing
space for storage of existing and ordered goods.

2.Procurement-Finance

Procurement inter-relates with the finance department in matters pertaining acquisition of

goods,payment of ordered goods ,clearing of invoices and budgeting.

3.Procurement-logistics

Procurement inter-relates with the logistics department in the physical handling of goods,routing
of vehicles transporting goods,scheduling and transportation of goods ordered.

4.Procurement-Information Technology

Involves recording of materials and transactions,preparation of purchase orders,online

reacquisition and order processing.

5.Procurement-Human resources

Involves the recruitment of procuring officials,employee compensation and also employee

discipline in an organization.