Belev, George (1991, ASQC) General Electric Company, Schenectady, NY
This abstract is an edited version of the author's original.
The standard statement of the overall objectives of the purchasing function is that it should obtain the "right materials" (meeting quality requirements) in the "right quantity" for delivery at the "right time" and in the "right place" from the "right source" (a vendor who is reliable and will meet its commitments in a timely fashion), with the "right service" (both before and after sale, and at the "right price."
Purchasing professionals often make trade-off decisions to obtain the optimum mix of these seven, often conflicting, "rights". Trade-off implies compromise, which is inconsistent with a purchasing Statement of Values based on a commitment to quality. Failure by a vendor to meet any one of these "rights" compromises the quality of the product or service acquired.
Typically, the purchasing organization is given the responsibility of ensuring vendor conformance to contract requirements, through enforcement and administration of the terms and conditions of purchase. It is essential that the purchasing and engineering organizations develop a partnership. A successful purchasing-engineering partnership exerts a pronounced influence on the finished product's quality, cost and delivery. An unsuccessful relationship, on the other hand, can seriously jeopardize the acquisition process and result in total program failure.
Engineering,Product quality,Procurement,Electronics industry