Evaluation of procurement processes and its operational performance in the public sector of Ghana: A case study of Kumasi South Hospital
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Date
September, 2015
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Abstract
In this era of globalization, procurement has remained a key function of every organization whether private or public. All procurement process regardless of their complexity follows a laid down procedure that requires proper management to maintain the integrity and sanctity of the procurement process. The study sought to evaluate the procurement process and its operational performance of Kumasi South Hospital. A quantitative method approach was adopted and a semi-structured questionnaire was used to collect data from 65 procurement and management staff of Kumasi South Hospital. Using descriptive statistics, it was revealed that the hospital practices some aspects of procurement such as request for tenders, tender opening, tender evaluation and inspection of deliveries that are conforms to PPA requirements. It was discovered that electronic is being utilized in the procurement process of the hospital at a small extent. Most of the respondents strongly believed that e-procurement system would lead to quality purchase, less time of procurement process and less costly. The study revealed that procurement process affect procurement performance in terms of cost, time, and quality. It emerged that labour productivity, resource/equipment utilization and reduced cost are significant (p=0.000) in influencing the procurement efficiency. The study also revealed that challenges such as bureaucracy and its related problems like corruption is a major problem as far as procurement process of the hospital is concerned, delay in payment (55.4%). It was realized that, the activities of the procurement process ensures performance in the hospital as a whole, however, for an organization to attain operational efficiency in the procurement system such organization needs to adopt a system that minimizes redundancy, cost and wastage while leveraging the resources that contributes to success and utilizing the best of its technical knowhow, workforce, quality, cost and flexible business process. The study therefore recommended that the government should review the existing procurement law to reduce bureaucracy to meet each organizational needs. Bureaucracy delays procurement efficiency and affects operational performance of hospitals; this review should be done so that hospitals will have some policies to streamline their operations.
Description
A thesis submitted to the School of Business in the partial fulfillment of the requirements for the award of Masters of Business Administration in
Logistics and supply chain management