DEBREBERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN

MANAGEMENT

SUMMER PRACTICAL ATTCHMENT IN DEBREBERHAN

FINANCE AND ECONOMICS DEVELOPMENT.

IN DEPARTMENT OF PURCHESING MANAGEMENT

BY: ASEGIDEW TEFERA

ID/NO: 0518/10

SUBMITTED TO: LSCM DEP’T.

SUBMITTED DATE: 01/03/2012.

 Acknowledgment

First of all I would like to Thanks my God to giving me spiritual fulfillment and moral
strength to complete this practical attachment. Next I would like to thanks Debreberhan
University College of Business and Economics Department of Logistics and Supply
Chain Management to give me this opportunity and also I would like to thanks all
members of purchasing department of in Debreberhan university fiancé and economic
development those who are facilitating my practical attachment especially mulukn fikre
(purchasing manager), and others who are supervisors of some department.

Abstract
This summer practical attachment was conducted. To analyze the real working
environment with that field of study. It focuses to identify for the purchasing system
from the heist level up to lowest level of organization structure. In Ethiopia government
policy purchasing system is mixed economy. But,The main objective of this report was
to investigate the challenges of purchasing management in Debreberehan university and
identifying the existing problem of the organization and describe the possible alternative
solution that can alleviate the existing challenges in the company operation.

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 Table of content page
Acknowledgments……………………………………………………………………………………2
Abstract……………………………………………………………………………………………..2
Table content……………………………………………………………………………………….3-4
CHAPTER ONE………………………………………………………………………………5
1. Background of the organization ……………………………………………………………5
1.1 Cardinal issues………………………………………………………………………………5
1.2 Mission…………………………………………………………………………………5
1.3 Vision…………………………………………………………………………………5
1.4 Values…………………………………………………………………………………5
1.5 Objective………………………………………………………………………………6
1.6 Organizational Structure…………………………………………………………….6-7
1.7 Responsibility of Some specific Department………………………………………..7
1.8 Administrative department …………………………………………………...7
1.9 Purchasing department ………………………………………………………..8
1. 2.1 SOWT Analysis……………………………………………………………….8
1.2.2 Strength………………………………………………………………………...8
1.2.3 Weakness……………………………………………………………………….8
1.2.4 Opportunity…………………………………………………………………….9
1.2.5 Threats………………………………………………………………………….9
1.2.6 The problem I observed in organization …………………………………….9
1.2.7 possible solution for those problem …………………………………………..10
CHAPTER TWO…………………………………………………………………………..10
2 Activity report……………………………………………………………………………10
2.1 Background of the department……………………………………………………….10
2.2 Objective and major responsibility of the department as well as activity………….11
2.3 My responsibility and major activity as member of department……………………12
2.4 Performance evolution of my activity………………………………………………….12
2.5 Problem encountered on job and remedial I have taken ………………………….. 13
2.6 Problem of division or department and suggested solution ………………………….14
CHAPTER THREE…………………………………………………………………...15
3 Attachment of evaluation ………………………………………………………………...15
3.1 Rational of practical attachment ……………………………………………………..15
3.2 Significance of practical attachment …………………………………………………15
3.3 major problems during attachment ………………………………………………….16
3.4 suggested solution and way forward for attachment ………………………………..16
3.5 Relevance of organization and my activity to my study……………………………..17

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3.6 The real world practical attachment………………………………………………….17
CHAPTER FOUR………………………………………………………………………….17
4 conclusion and Recommendation………………………………………………………..17
4.1 conclusion ……………………………………………………………………………….17
4.2 Recommendation ………………………………………………………………………..18
4.3 Reference……………………………………………………………………………........19

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CHAPTER ONE

INTRODACTON

1. BACKGROUND OF THE ORGANIZATION

Debreberhan university procurement and property administration directorate is located in

amahra regional state, North Shao zone with the distance about 130km from capital city
of Addis Abeba. The finance and economic development of the Debreberhan university
were established in 1999 E.C right from the establishment, the procurement manage the
economic resource of the Debreberhan university for the sustained resource availability
of the university. Now a day this department; procurement and property administration
development of Deberberhan university is at good stage or somewhat stabled.

1.1 CARDINAL ISSUE

1.2 Mission

 Producing efficient graduates by offering research assisted quality

education
 Undertaking a problem solving research based on national need and
benefiting the community with the
Outcome
 Offering government and community centered training consultancy
service ,transferring technology and undertaking innovation

1.3 Vision
 Aspires to be the best university in Ethiopia by 2020
1.4 Values
 Shared vision
 Quality service
 Attention to cross-cutting issues

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  Diversity
 Professionalism
 Equality effectiveness
 Democracy

1.5 Objective
 reduce the gap between supply and demand of the reordered in the
organization.
 Reports every purchase activity of the week, and in the early days
in the first month of the year.
 Planning in consideration of regional development
 Minimizing the cost of the organization with maximum quality.
 Recording pad code and sending timely report to the concerned
person.
 Controlling government resource and property.

1.6 ORGANIZATIONAL STRUCTURES

Organizational structure means the chain of the authority from higher level to
lower level. The mean important of the organizational structure is to accomplish
the activity planned in efficient and effective manner at it is the crucial part for
the office to achieve its objective.

In generally, there are faive major departments such as: - budgeting and planning
department, auditing and inspection department,administration and purchasing
department. Each of the department is responsible for their respective duties and
accountable for their customers. The organizational structures of the Finance
Office of Debreberhan University were summarizing as the following diagram.

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 BOARD

President

Academic vice Research and Business and Administration and student

president community service development service vice president
vice presidant vice presidant

Procurement and Government

Human resource Finance
property administration service director
management development

Procurement Property
team administration
team

1.7. Responsibility of some specific department

1.8. Administrative department

 This is the main department of the sector.

 It is responsible to lead the information.
 It insures the proper and efficient execution of the activities of each
department.
 Supervise the work of employ under the division.

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1.9. Purchasing department

 Make purchase announcement in order to purchase particular material used

to run the organization activities.
 Maintaining and administering the in and out flow material of the
organization.
 Maintaining and controlling office employees that is checking or following
each employs when it is get office at a time or not.

1.2.1SWOT analysis (strength, weakness, opportunity and treaties)

1.2.2 Strength

The strength of the organization internally can describe as follows.

• Smooth relationship between employees and management to achieve the overall

goal of the finance

• Employees Promotion and transfer depend up on their experience and

performance
• Employees have the habit of team work in finance
• The finance provides service for it employees
• Employees have ability to serve customers
• Keeping the organizational policy or behavior
• It gives highly morale for its workers
1.2.3. Weakness

The weakness of the organization can be representing as follows.

• No proper plan

• In ability of doing their activity effectively

• Shortage of guiding written document which base for new comer
• Some of the employees not respect the office hour

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 • Using office materials for their own purpose

1.2.4. Opportunities
There is transparency and willingness to office of workers.

• High chance to be employed depends on level of education and experience

• Conductive environment work in the organization
• Access to have information about organization
• Presence of plenty of resources

1.2.5 Threats

These are unfavorable condition that exists outside the organization which negatively
affects the performance of the finance. These include the following

 The customer of organization may not get enough service because some workers
are not punctual
 Using of government resource for personal use
 Excess and unlimited meeting which takes much of the work times

1.2.6 The problem I observed in the organization

There are many problems I had observed in the office of finance and economic
development of Debreberhan University in my 30 days. There are many points that
influence the achievement of the organization objectives and mission.

Some of them are as follows:-

 Absence of the right person at right position because of this disagreement created
between employees at some position
 Lack of punctuality of many employees
 Shortage of written documentation like different vouchers

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  Weak internet connection because of this IBEX (integral budget and expenditure
system) is not working most employees unable to do their responsibility

1.2.7 Possible solution for those problems

 Solving the disagreements by making the right person at right position though
discussion
 Take possible measurement for unpunctual employee
 Protect documents by modernized way or mechanism like using computer
 Make IBEX active connection though using wireless
 Assign the qualified and experienced person for the organization
 Allocating enough budgets for office material
 The budget should be allocate according to planned and budget carefully

CHAPTER TWO

2. Activity report
2.1 Background of department

In Debreberhan University procurement and property administration directorate I was

conducted my attachment in purchasing department. This department is one of
Debreberhan university procurement and property administration directorate division
and at the time of the establishment of the organization in 1999.The responsibility of this
department is buying material for sectors that found in zone. It has four employees the
first one is market survey, the second one is market coordinator and two employees are
purchaser .finally the department play great role for the achievement of the organization
and even for growth of country.

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2.2 Objective and major responsibility of the department as well as its
activity.

As mentioned above the main objective of purchasing department is that buying material
for different sector found in this zone. Buying method is based on purchasing quality
material at lowest price ,at right time, at right place, at right quality for all sectors. Before
conducting their purchasing activity the department make announcement for competitor
or supplier with the following criteria:

 Trade license
 Address of supplier
 Period of Paying tax

The major responsibility assign to the department include:

 Preparing purchasing plan

 Preparing bidding document
 Purchasing material by bidding
 Checking whether the price that the supplier set is in accordance with exist market
situation or not
 Works to make the payment system effective and efficiency
 Identify the winner from the supplier

Purchasing procedures of this organization

• mission of the need

• Selection of source of supply and evaluation of suppliers
• Prepare and placement the purchase order
• Receive and inspect the material

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Activity of the department

The major activity involves six major steps:

 Collecting need
 Purchasing plan
 Bidding
 Purchasing
 Deliver to store
 Distribute to concerning sector after recognized by finance administration
body

2.3 My responsibility and major activity as member of the department

During my stay in organization I have done some activity. Me have performed includes
arranging bidding document, receiving need documents from different sector and also I
have organized some recorded data.

To improve the performance of organization I have mentioned some useful idea

especially for purchasing department.

My overall responsibility as member of department

 I was supported department staff in preparation of documents which related to

purchasing
 I consider myself as staff and worked all in which I’m assigned by my supervisor
 Developed harmonious relationship with department staff and also which that of
other department

2.4. Performance evaluation of my activity

While I was in organization I can say that I have performed activity assigned to me
effectively and efficiently. I have used my time, effort and property accurately and

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respect the command of senior worker and try to do what they ordered me. As the
member of purchasing department during my internship period I accomplished a lot of
activities as to level of my understanding I performed the task assigned to me honestly
actively, efficiently and effectively I also learned a lot from my practice I was punctual
and image every possible effort to get knowledge and skills by practicing in real world
situation.

2.5. Problem encountered on the job and remedial I have taken

Some problems were faced me during my internship these are

 Lack of organized documentation

 Problem of getting rapid response for my request.
 Problem of speed and confusion.
 Unwillingness of senior workers to provide information.

Remedial measures taken

 I tried to originally translate sentence into English rather consuming my time

 I tried to consult different staff from different department to access information.
 I try to communicate employees about the purpose of attachment in good
manner.
 I try to approach to employee in former or polite way.

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2.6. Problem of division or department and suggested solution.

The main problem that faced the purchasing department includes the following.

 Lack of punctuality.
 Poor of computer and electronics material
 Lack of electronics maintenance

Suggested solution

 Changing the labor working system into computerized system.

 Motivating the worker by giving rewards.
 Bringing electronic material.
 Allocating enough budgets for market survey.
 Bringing well skilled man power.

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CHAPTER THREE:
3 .ATTECHMENT EVALUATION

3.1. RATIONALE OF PRACTICAL ATTACHMENT

This attachment has great importance behind it. It is primarily planned to check how the
theoretically learned courses and gained knowledge and skills are applied in real world
environment. It is also aimed of evaluating how relevant and applicable theoretically
courses learned are in real world it also looks into challenge and opportunities’ prevailing
in the real world and; to suggest some possible solution in the real world. The main and
decisive purposes internship and practical training program is to give practical
professional training to the students. The major significance are mentioned below as
follows.

 It helps students to relate theoretically learned course and gained knowledge

and skills with working environment.
 It helps students to know working environment which they will join after
graduation.
 Its greater chance for students to develop knowledge and skills become
practice oriented professional in his / her work after graduation.
 It is an opportunity student to evaluate themselves with what theoretically
learned and how to change in to work.
 It makes the student to be more experienced and creative.
 It is device which tells the students to aware what is expected from them
tomorrow.
 It measured the ability and cooperativeness students.

3.2. Significance of practical attachment

 Helps to easily understand the theoretical though and improve analytical ability.
 Families with the working environment
 To know more the working system.

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  How to be punctual in work place
 How to solve problems through discussion
Some other significance of attachment
 it enable the students to easily identify problems and pass challenges
 it helps to identify the students how they are sensitive to execute their
responsibility
 the students should be also understand that theories are applicable
 It increase confident of the student

3.3Major problems during attachment

 Shortage of information due to scarcity of documentation.

 Absence of willingness to get information from some employees
 Problem of translating document written by Amharic Language into English
Language

Generally, practical attachment is very significant to change theoretical based on

Students’ practical attachment.

3.4. Suggested solution and way forward for attachment

In order to overrun the above mentioned problem the following solution will be
forwarded

 Enough data have to be available regarding the organization

 The organization should recorded its document in English as much as possible
 Bringing electronics material and computer in office
 Students have to treated as other senior workers

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 3.5. Relevance of organization and my activity to my study

The task I performed in the organization and my activity is related greatly with my study
but not all i.e. to some extent for example purchasing department doing about cost
minimization and buying quality product at right time from right supplier, in addition
managing material flow effectively .more over the activity I performed In the
organization encourage me to highly pay attention to my study more and refer back
again what I learned in the pass.

3.6. The real world practical attachment

It is obvious that the knowledge I had get in class help me while I was conducting my
practical attachment I have observed some course concept during my view in the
organization.

Some of these course concepts are:

 payroll preparation related with principle of accounting two

 purchasing system related with principle of procurement
 statistics is related with statistics for business course and other statistics courses
 Planning, organizing, controlling and leading is related with introduction to
management

CHAPTER FOUR

4. Conclusion and Recommendation

4.1 conclusions

Debreberhan University procurement and property administration directorate is found in

Amhara regions. The office has its own rule, regulation, plan, vision, structure, mission
and objectives. SWOT analysis-the organization have also its own strength and
opportunity also its weakness and treat which hinders the organization to perform its
activity in normal way.

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Debreberhan university procurement and property administration is one of the
organizational divisions which has its own working strategic plan and perform purchase
administration related activities. In addition to this the organization has certain strength,
weakness, opportunity and treats which I have seen from different perspective. Besides
this the organization process it activity in fair and active manner in order to serve
financial and non-financial problems of the organization. Finally I would focus and look
the above problems in Debreberhan university procurement and property administration
directorate I recommended my solution and suggestions.

4.2 Recommendations

In the proceeding of parts of the paper I have discussed about debreberhan university
administration bureau of finance and economic development. After analyzing all the
proceeding condition and facts at hand I recommend the following point for the better
performance of the sector and its contribution to the bureau of purchase department
development of the Debreberhan university .

 The bureau of procurement purchase should arrange condition for the supply of
educated man power.
 The organization should have to established network to control the task of each
worker.
 The purchase should give training and development for each worker to put their
skill on the work.
 The department has to prove necessary facilities for the employees to increase
their motivation and intention towards accomplishing the organizational
objectives
 There should be necessary interaction or interconnection between the
employees. This will create an opportunity for the employees to share
experience and for improvement necessary performance of the sector as whole.

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4.3 RFERENCES

 weekly and monthly reports

 Employees and supervisors ideas
 Website of the organization
 Different written documents
 From other materials

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