MOUNT KENYA UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

DEPT. OF MANAGEMENT
BBM PROCUREMENT MANAGENT.

1. FELIX OBIERO- BOP /2021/ 96001

2. PETER MICHIRA- BOP /2021/ 96128
3. DENNIS MUIRU- BOP /2021/ 80359
4. ANGEL MANOTI- BOP /2021/
5. JOHN MUTETI-BOP/2021/95082
6. REAGAN AKOLO BOP /2021/ 94411
7. SOSPETER NYAMOHANGA- BOP /2021/ 95806
8. NAFTALI MBOYA- BOP /2021/ 95466
9. ANGELA NYAGUTHII BOP /2022 /53072
10. JIBRIL ABDULLAHI- BOP/2021/94650
11. BRIAN ORURU- BOP /2022/ 50282

DETERMINATION OF REQUIREMENTS
Determining what materials and services to purchase.
Specification
A statement of needs. It defines what the purchaser wants to buy and consequently what the
supplier is required to provide.
A good specification should
i. State the requirement clearly, concisely, and logically in functional and performance
unless specific technical requirements are needed.
ii. Contain enough information for offerors to decide and cost the goods or services they
will offer and at what level of quality.
iii. Provide equal opportunity for all potential suppliers to offer goods and services which
satisfies the needs of the user.
iv. Not over specify requirements nor contain features that directly or indirectly discriminate
against any supplier. etc.
Types of Specifications.
1. Brand or Trade Name
This is the simplest way to describe what to purchase. A brand name is used to distinguish a
product from another. Brand and trade names used as specifications refer to the practice of
specifying a particular brand or trade name of a product or component in the project or
procurement specifications. Instead of providing generic descriptions or requirements, the
specifications explicitly mention a specific brand or trade name as the preferred choice.
They are typically used when the client has a specific preference based on previous positive
experiences, reputation, or specific features of a particular brand
Advantages
 Quality Assurance- Specifying a well-known brand or trade name can provide
assurance of quality and reliability.
 Compatibility- Specifying a specific brand ensures compatibility with existing
systems or components.
 Performance Assurance-Brands with established reputations often have proven
performance records, ensuring that the desired performance criteria are met.
 Time and Effort Saving- Using brand or trade names can simplify the selection
process by narrowing down options and reducing the need for extensive research.
 Reduced Risk-Specifying a trusted brand can help mitigate the risk associated
with unknown or untested alternatives.
Disadvantages
 Limited Competition-Specifying specific brands can limit competition and
potentially result in higher prices.
 Reduced Innovation- Narrowly specifying a brand may discourage suppliers from
proposing alternative solutions or innovations.
 Market Bias- Specifying a particular brand might exclude equally suitable
products from other manufacturers, creating an unfair advantage.
 Cost Limitations- Specifying a premium brand may exceed budget constraints,
limiting options for cost-effective alternatives.

2. Samples
Samples used in specifications refer to the practice of requesting or providing physical samples
of products or materials to be used as references or benchmarks during the procurement or
development process. Samples allow stakeholders to visually inspect, assess, and compare the
desired characteristics of the final product or material.
Samples are physical representations of the product or material that provide a tangible reference
for evaluation and comparison.
They can include prototypes, physical models, material swatches, or previously manufactured
products.

Advantages
 Visual and Tactile Evaluation- Samples allow stakeholders to visually inspect and
physically examine the product or material, ensuring it meets their expectations.
 Quality Assurance- Comparing samples against the desired characteristics helps
verify the quality and suitability of the final product.
 Specification Confirmation- Samples serve as a concrete reference to ensure that
the specified requirements are accurately understood and implemented.
 Decision Making- Samples facilitate informed decision-making by providing a
tangible representation of the product or material's appearance, texture, and other
attributes.

Disadvantages
 Subjectivity-Evaluation of samples can be subjective, as individual perceptions
and preferences may vary.
 Limited Representation-Samples might not fully represent the entire product or
material, potentially leading to deviations in certain aspects.
 Cost and Time Constraints-Developing or acquiring samples can incur additional
costs and time delays in the procurement or development process.
 Inconsistency- Samples may vary due to production variations or limitations

3. Standard specifications
Also known as industry or regulatory standards, are widely recognized and accepted sets
of specifications that define the requirements and characteristics of products, materials, or
processes within a specific industry or field. They are developed and maintained by
standardization organizations, regulatory bodies, or industry associations. Standard
specifications provide a universally accepted reference for quality, performance, and
safety requirements within a specific industry or field. They ensure consistency,
interoperability, and compliance with established norms.
Advantages
 Quality Assurance- Standard specifications help ensure that products or materials
meet predetermined quality standards.
 Safety and Reliability- Standards often incorporate safety guidelines, ensuring
that products or materials meet established safety requirements.
 Streamlined Procurement- Standards simplify the procurement process by
providing clear guidelines, reducing the need for extensive research and
evaluation.
 Market Access- Compliance with recognized standards can facilitate market
access and enhance product credibility and acceptance.

Disadvantages.
 Limiting Innovation- Strict adherence to standards might hinder the adoption of
new technologies or innovative approaches.
 Lack of Flexibility- Standards may not account for specific project requirements
or unique circumstances, limiting customization options.
 Cost Implications- Compliance with standards may require additional investments
in equipment, materials, or testing to meet the specified requirements.
 Outdated or Inconsistent Standards- Standards may become outdated or differ
between regions or jurisdictions, leading to confusion or inefficiencies.

4. Design specifications
Refer to the detailed requirements that outline the specific design characteristics,
dimensions, materials, components, and manufacturing processes of a product or system.
They provide explicit instructions for the design and construction of the desired product
or system.
Design specifications provide specific guidelines and requirements for the design and
development of a product or system.
They cover dimensions, materials, components, manufacturing processes, and other design-
related details.

Advantages
 Clarity and Precision- Design specifications provide clear and precise
instructions, leaving little room for ambiguity or misinterpretation.
  Consistency- They ensure uniformity in the design and construction of the
product or system across different suppliers or manufacturers.
 Quality Control- Design specifications enable effective quality control by
specifying the required materials, dimensions, and manufacturing processes.
 Customization- Design specifications allow for customization to meet specific
project requirements or unique needs.

Disadvantages
 Lack of Flexibility- Design specifications can limit innovation and creative
solutions by prescribing specific design elements.
 Time and Cost Constraints- Developing detailed design specifications requires
additional time, resources, and expertise.
 Risk of Overlooking Alternatives- Strict adherence to design specifications may
result in missed opportunities to explore more cost-effective or efficient solutions.
 Design Complexity- Design specifications can be complex and require technical
expertise to understand and implement accurately.
 Potential for Outdated Requirements-Design specifications may become outdated
over time, requiring regular updates to align with evolving technologies or
standards.

5. Performance Specification
Performance specification is a type of specification used in various fields to define the
desired performance characteristics or outcomes of a product, system, or service. Instead
of detailing specific design features or materials, performance specifications focus on the
desired results or functional requirements that need to be met.

Advantages
 Performance-driven- By focusing on performance requirements, rather than
prescribing specific design details, performance specifications encourage a
results-oriented approach. This allows for optimization and customization of
solutions to meet specific project needs.
 Competitive Bidding-Performance specifications facilitate competitive bidding
processes. Since they do not favor specific brands or proprietary solutions,
multiple vendors can propose their own approaches to meet the performance
requirements, leading to increased competition and potentially lower costs.
  Future-proofing- Performance specifications can help future-proof projects by
setting performance standards that anticipate technological advancements and
industry developments. This ensures that the specified outcomes remain relevant
and achievable over time.

Disadvantages
 Lack of specific guidance- Performance specifications may lack specific guidance
on design features, materials, or construction methods. This can lead to ambiguity
and subjective interpretation, potentially resulting in variations in the final
product or service.
 Limited control over quality- With performance specifications, the focus is on the
end result rather than the process or specific components. This can make it
challenging to ensure consistent quality across different implementations, as the
approaches may vary significantly.
 Difficulty in comparison- Evaluating and comparing proposals based on
performance specifications can be more complex than when using prescriptive
specifications. Different vendors may propose diverse solutions, making it
challenging to compare apples to apples and select the best option.
 Potential for disputes- Performance specifications may give rise to disputes if the
defined performance outcomes are not clearly measurable or if there are
disagreements on whether the requirements have been adequately met. This can
lead to delays, legal complications, and added costs.

Procedure of developing Specification.

i. Planning and Analysis- Key people involved in the planning and analysis are
purchasing staff, technical officer, managers etc. It is important when developing
complex requirements.

ii. Information gathering- This involves consultations with various stakeholders who
may provide important information that will aid in the developing of
specification. It may also involve consulting other departments or agencies,
Industry other users of the goods and services etc.

iii. Writing- Here using simple language, avoiding ambiguity, be concise, etc.

iv. Vetting specifications and obtaining approval- Seek approval from the relevant
personnel e.g., managers, departmental manager, and other user departments.
 v. Issuing specification- Should be issued as part of the Invitation to offer document.
It should target suppliers capable of meeting the specification.

vi. Managing amendments to the specification- Should need arise. The amendment
should be authorized by relevant personnel.

vii. Revising and storing the specification- The specification should be reviewed at
the end of the phase to ensure it effectively the goods and services that were
bought.

Standardization.
A standard is a model or general agreement or a rule established by authority, consensus, created
and used by various levels of interest.
Standardization is the process of formulating and applying rules for a beneficial and orderly
approach to specify activity.

Benefits of Standardization.
1. Consistency and Uniformity-Standardization ensures consistency and uniformity in the
requirements across different projects, products, or systems. It provides a common
framework and language for capturing and communicating requirements, reducing
confusion and enhancing clarity.
2. Improved Communication- Standardized requirements enable effective communication
among stakeholders, including project teams, designers, engineers, suppliers, and
customers. By using a common set of standards and terminology, misunderstandings and
misinterpretations can be minimized, fostering better collaboration and understanding.

3. Increased Efficiency and Productivity- Standardization streamlines the requirements

development process by providing predefined templates, guidelines, and best practices.
This eliminates the need to start from scratch for every project and accelerates the
generation of requirements. It also reduces rework and ensures efficient resource
allocation.
4. Quality Assurance- Standardization helps enforce quality standards and best practices in
requirements development. By following established standards, organizations can ensure
that the specified requirements are comprehensive, accurate, and aligned with industry
norms. This promotes quality assurance and reduces the risk of errors or omissions.
5. Regulatory Compliance- Many industries have regulatory bodies or governing authorities
that require adherence to specific standards and guidelines. By standardizing
 requirements, organizations can ensure compliance with regulatory requirements,
reducing the risk of penalties, legal issues, and delays in project implementation.
6. Knowledge Sharing and Learning-Standardization promotes knowledge sharing and
learning within an organization or across industries. By adopting and implementing
standardized requirements, organizations can benefit from the collective expertise and
experiences of others. This helps in continuous improvement, innovation, and the
dissemination of best practices.

Variety Reduction
Variety reduction, also known as variety management or variety control, is a strategic approach
aimed at reducing the number of variations or options within a product or service required. It
involves streamlining and rationalizing the range of choices available to purchasers, thereby
simplifying processes, increasing efficiency, and improving overall performance.
i. Improved supplier relationships- By reducing the number of suppliers,
organizations can develop stronger relationships with key suppliers. This allows
closer collaboration, better communication, and increased focus on strategic
partnerships.

ii. Quality Control- Dealing with a limited number of suppliers ensures adherence to
specifications and standards. It simplifies the process of monitoring and
evaluating supplier performance.

iii. Inventory management- Variety reduction helps optimize inventory levels by

focusing on a smaller set of standardized products or components. It reduces the
risk of obsolete or excess inventory.

iv. Cost savings- Allows companies to negotiate better pricing and volume discounts
with a smaller pool of suppliers.

v. Efficiency in procurement process- By reducing the variety, the process of

procurement is simplified since specification writing is done with ease, and
requirement are easily identified.