February 8, 2022

Sample Projects In Information Technology, Computer science 1. DESIGN AND IMPLEMENTATION OF A COMPUTERISED HOSTEL ALLOCATION SYSTEM 2. DESIGN AND IMPLEMENTATION OF AN ICT ASSISTED DATABASE FOR SENIOR CITIZENS IN RIVERS STATE, NIGERIA 3. DESIGN AND IMPLEMENTATION OF A COMPUTERISED LIBRARY STOCK CONTROL SYSTEM 4. DESIGN AND IMPLEMENTATION OF A COMPUTERISED ONLINE BANK VERIFICATION NUMBER (BVN) SYSTEM 5. DESIGN AND IMPLEMENTATION OF A COMPUTERISED ONLINE EXAMINATION SYSTEM FOR STAFF RECRUITMENT 6. DESIGN AND IMPLEMENTATION OF A COMPUTERISED STUDENTS ADMISSION SYSTEM 7. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED AIRLINE RESERVATION SYSTEM 8. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED HOTEL MANAGEMENT SYSTEM 9. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED INSURANCE APPLICATION AND REGISTRATION SYSTEM 10. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED RECRUITMENT MANAGEMENT SYSTEM 11. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED STUDENT RESEARCH PROJECT SEARCH ENGINE SYSTEM 12. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED STUDENTS ID-CARD PROCESSING SYSTEM 13. DESIGN AND IMPLEMENTATION OF A COMPUTERIZED VISITOR MANAGEMENT SYSTEM 14. DESIGN AND IMPLEMENTATION OF A FOOD MENU DIRECTORATE SYSTEM 15. DESIGN AND IMPLEMENTATION OF AN AUTOMATED VEHICLE IDENTIFICATION SYSTEM 16. DESIGN AND IMPLEMENTATION OF AN INTEGRATED TOURISM MULTIMEDIA SYSTEM 17. DESIGN AND IMPLEMENTATION OF AUTOMATED LIBRARY SYSTEM 18. DESIGN AND IMPLEMENTATION OF DATA BASE MANAGEMENT MODEL FOR INTERNAL REVENUE GENERATION 19. DESIGN AND IMPLEMENTATION OF ELECTRONIC DIAGNOSIS SYSTEM 20. DESIGN AND IMPLEMENTATION OF ESTATE VALUATION MODELLING SYSTEM 21. DESIGN OF EXAMINATION TIMETABLING SOFTWARE USING GENERIC ALGORITHMS AND SIMULATED ANNEALING

Factors to consider when choosing a research topic in Information Technology 1. Identifying a research problem is made easier if you stick to your area of study/specialization. 2. Shy away from topics that have been extensively studied (difficult to throw new light). 3. Eschew controversial areas unless you are experienced. 4. Try to identify unresolved problems (have long term plans in your choice of research topic. That which makes you an authority is preferable). 5. Avoid too narrow or vague a problem, and choose research topic bearing in mind the resources available at your disposal, time inclusive Other factors include: ✓ Interest ✓ Resources ✓ Measurement of concepts ✓ Level of expertise ✓ Relevance ✓ Availability of data ✓ Ethical issues Ways of identifying research problem ✓ Conducting literature review ✓ Discussion with experts ✓ Replication ✓ Previous research studies ✓ Media ✓ Personal experience Defining a research problem can be seen to follow sequentially the following pattern: (i) General statement of the problem ➔ (ii) Understanding the nature of the problem, e.g. through discussion with those knowledgeable ➔ (iii) Survey available literature ➔ (iv) Refine or rephrase the research problem (more specific formulation e.g., having objectives that are Specific, Measurable, Achievable, Realistic and Time bound (SMART) Topics that Computer Science Researchers Address These fall the following major categories: 1. Problem-solving concepts (e.g., algorithms, AI, Mathematics/computational science) 2. Computer concepts (e.g., Computer/hardware principles/architecture, Inter-computer communication, Operating systems, etc) 3. Systems/software concepts (e.g., System architecture/engineering; Programming languages; Methods/techniques; Tools (including compilers, debuggers); Human–computer interaction; System security) 4. Data/information concepts (e.g., Data/file structures; Data base/warehouse/mart organization; Information retrieval; Data analysis; Data security) 1. Problem-domain-specific concepts (Computer graphics/pattern analysis; Information systems; Scientific/engineering (including bio-informatics)) 2. Systems/software management concepts (Project/product management (including risk management)) 3. Organizational concepts (Technology transfer (including innovation, acceptance, adoption, diffusion); Management of ‘‘computing’’ function) Example of Research Topics: A framework to support study group formation using Online Social media- the case of twitter Application of Multi-agent Technology to Information Systems: An Agent-based Design Architecture for Decision Support Systems (haolan Zhang) A Model-Driven Approach to Accessing Managerial Information: The Development of a Repository-Based Executive Information System (Minder Chen)

Introduction Natural resources are resources that exist without any actions of humankind. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. On Earth, it includes sunlight, atmosphere, water, land, all minerals along with all vegetation, and animal life. Natural resources can be part of our natural heritage or protected in nature reserves. Particular areas (such as the rainforest in Fatu-Hiva) often feature biodiversity and geo-diversity in their ecosystems. Natural resources may be classified in different ways. Natural resources are materials and components (something that can be used) that can be found within the environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh water, air, as well as any living organism such as a fish, or it may be transformed by extractives industries into an economically useful form that must be processed to obtain the resource such as metal ores, rare-earth elements, petroleum, timber and most forms of energy. Some resources are renewable resource, which means that they can be used at a certain rate and natural processes will restore them, whereas many extractive industries rely heavily on non-renewable resources that can only be extracted once. Natural-resource allocations can be at the center of many economic and political confrontations both within and between countries. This is particularly true during periods of increasing scarcity and shortages (depletion and overconsumption of resources). Resource extraction is also a major source of human rights violations and environmental damage. The sustainable development goals and other international development agendas frequently focus on creating more sustainable resource extraction, with some scholars and researchers focused on creating economic models, such as circular economy, that rely less on resource extraction, and more on reuse, recycling and renewable resources that can be sustainably managed. Forests Forests are a valuable resource providing food, shelter, wildlife habitat, fuel, and daily supplies such as medicinal ingredients and paper. Forests play an important role in balancing the Earth’s CO2 supply and exchange, acting as a key link between the atmosphere, geosphere, and hydrosphere. Tropical rainforests, in particular, house an immense diversity of species, more capable of adapting to, and therefore surviving, changing environmental conditions than monoculture forests. This diversity also provides habitat for numerous animal species and is an important source of medicinal ingredients. The main issues concerning forest management are depletion due to natural causes (fires and infestations) or human activity (clear-cutting, burning, land conversion), and monitoring of health and growth for effective commercial exploitation and conservation. Threats to the Forest Agriculture A major cause of deforestation around kikuyu area is as a result of local subsistence activities by farmers and villagers who rely on forestlands for agriculture and fuel wood. Logging largely exasperates this issue as farmers and colonists are able to gain access to previously impenetrable forest by following logging roads. Furthermore, with increasing human population densities, agricultural cultivation is expanding in the forests of the near kikuyu, which often results in complete deforestation. Pollution Human activities pollute ecosystems around the world and so is kikuyu area. Pollution (and chemical dumping) is likely to cause adverse effects on the environment due to weak environmental protection and pollution controls, coupled with the increase in urbanization and industrialization having it that Kikuyu is part of the larger Nairobi metropolitan area. Toxic chemicals and metals that enter the environment can have detrimental effects. Organisms may absorb them through their skin or ingest them in their food or water. Animals higher in the food chain accumulate these toxins in ever increasing concentrations. As a result, top predators such as birds, fish and mammals will have high level of toxins in their bodies, which increases the risk of disease, birth defects and genetic mutation. Population increase & Urbanization Increased human population is the root cause of any threat to the forest, due to the increased demand for natural resources. With such rapid population increase predicted around Nairobi and particularly kikuyu Increased waste, sanitation and pollution, as a result of urbanization, indirectly threaten the forest. This is a particular threat given that the services in many cities are unable to deal with the population growth. This inevitably leads to increased environmental issues. Lack of good governance and institutional capacity Corruption and lack of good governance can seriously hinder any progress towards policy changes, conservation or sustainable natural resource management in the forests. In addition, poor governance can leave to corruption, particularly with regard to the granting of logging concessions. This contributes to poor business practices and lack of incentive to move towards sustainable forestry. As a result, the above generally leads to limited government budgets for conservation, which in turn leads to insufficient staff numbers, poor training and low morale at forestry and wildlife departments rendering them ineffective. Solution Coming up with strategies to protect the forests would be one of the best solution to the forests around kikuyu, Forest ecosystems are made up of dozens of species and life forms, with sometimes complex patterns of vertical and horizontal structure. Across a large landscape, forest ecosystems are managed in a variety of ways and have many levels of human activity.  Eco-forestry Eco-forestry is a move on saving the worlds forest. It acknowledges that sometimes, the use of trees for various human activities or reasons can be inevitable. Per se, eco-forestry underscores the need of cutting down trees in an environmentally friendly manner. It is where only cautiously selected trees are fell and transported with the least possible damage to the area. Also, eco-forestry not only calls for the preservation of the forest regions ecosystem but also allows for controlled and green timber extraction. Law and Regulations Due to the nature and extent of forest destruction, efforts to stop the human activities can be complemented by laws and regulation at governmental and organizational levels. As much as people increasingly become aware of deforestation consequences, some people focus more on the immediate economic gains at

Many companies attempt to track down new technologies and product through systematic market research. The results of this research are usually translated by the marketing department into several new products idea which are then discussed with research and development and the engineering department. These discussions are often the starting point for projects aimed at improving current products or the developments of new ones. The process of new product development Depending on the nature of the product and the type of company the development process, starting with conceptualization and ending with introduction to the market will pass through several stages Products development. In this phase the idea supplied by the marketing department are translated into a few concrete, but still relatively abstract. Functional design. Such designs describe the functions that the product to be developed will have to fulfill for the user. From these functional designs, the most promising design is selected to be elaborated further. Product design. In this phase the functional design is worked out in detail – proposals are made about the materials to be used. The physical properties that the product must satisfy. E t c. Often several products designs are produced which meet the functional design and these can be presented to potential clients at an early stage. In order to get the first reaction and impressions concept testing. This information enables the engineers to focus on the most promising design. Subsequently the product design is elaborated in the form of prototype can also be presented to potential buyers and users. Production planning. The manufacturability of the product has already been considered during the product design stage the production requirements are taken into account. After the prototype has been approved. Preparation for production can be started. If it concerns a technically complex products this phase may take a lot of time and it may be necessary to purchase new production equipment. The capacity requirements of this new equipment will have to be determined based on. Among other things, Market exploration and sale forecasts. Production planning frequently ends with a number of production series Start of the production. Products from the pre production series are subjected to through examination: based on the result of this examination the product design or the setting of the machines might be adopted so as to limit future production and quality problems to a minimum. One of the problems that might occur in this phase is changing the specifications. Every change is documented in a change – order send by the engineering department to the purchasing department in order to discuss this with the supplier. This phase means a lot of work for the purchaser involved in the project. Every change in the specification has to be approved by the supplier, the consequences for the total costs have to be analyzed, the change product needs to be tested again, etc. This is one of the reason why it takes so long for a new product to become available for customers. Only when the problem have been taken care of, can actual production commence. It goes without saying it is possible to refine this sequence of steps, depending on the nature of the product and the type of company. As the development process advances, the specifications become more rigid and it becomes more difficult to introduce changes. The consequence for purchasing is that its latitude decreases and the cost of technical changes introduces at a later stage in the process become higher. Once a suitable material or construction has been found, tested and approved, the willingness to consider any alternatives (in the form of a different material, component or a substitute product from another supplier) will be limited at a later stage. Any alternative will have to be tested and approved again, which implies not only a lot of work but also risks. This desire to reduce technical risk may result in specific components being channeled in the direction of one particular supplier because of positive experiences with this supplier in the past. The buyer is put in a difficult situation since it is awkward to negotiate with such suppliers. Based on his job perceptions, a buyer will always attempt to have more than one supplier to fall back on. For the buyer to go out into the market, the product preferably must be described in terms of functional specifications rather than in terms of supplier or brand specifications. There exists therefore, a kind of natural conflicts in the way the engineers and buyers operate which can only be solved by cross functional development teams. Communications between buyers and first tier suppliers Large manufacturers communicate with their first tier suppliers in product development as follows: Purchasing engineering. This is a specialist function to provide the liaison between the engineering department and the purchasing department. Purchasing engineers are members of the design teams, where they will evaluate designs against purchasing-specific criteria. It is their task to bring in specific supply market knowledge and new supplier at an early stage of design. Early supplier involvement (ESI) suppliers who have proved in the past to be ‘best-inclass’ are invited to participate in the company’s development projects at an early stage. In this way they are able to criticize future designs, suggest alternative materials, come up with ideas for more efficient manufacturing, etc as a stage where engineering changes can be made without severe cost consequences. Residential engineering. A next step is to co-locate engineers from the suppler on a more or less permanent basis within the organization in order to work on design or. benefits of early supplier involvement In accessing the benefits of early supplier involvement, companies need to differentiate between short-term and long-term benefits (Van Echtelt, 2004). Short-term benefits may result from improved product quality, reduction of product cost, reduction of development time and reduction of development cost. These benefits result from the supplier’s in-depth knowledge of components and technologies, which enables them to match component designs better with their manufacturing capabilities. Long-term

During the strategic phase three essential questions have to be answered: The question relates to the objective of the firm with regard to its intent to outsource a certain activity. what activities are considered for outsourcing. what qualifications a supplier should be able to meet in order to qualify as a potential future partner for providing the activity concerned must be answered. The decision to outsource should support and enable the company’s overall strategy. The motives that are cited most are: 1. Focus on core competence. 2. Focus on cost efficiency/effectiveness and 3. Focus on service This motives and that strategy of the outsourcing company should be aligned. These three motives and the outsourced activities should contribute to this strategy. The second question relates to what should be outsourced. Two important approaches are used to answer this question; The transaction cost approach and The core competence approach. The transaction cost approach is based on the idea of finding a governance structure aimed at arriving at the lowest cost possible for each transaction that is made. Transaction cost is defined as the costs that are associated with an exchange between two parties. The assumptions of the transaction costs approach is that an exchange with an external party is based upon a contract. The (potential) costs associated with establishing, Monitoring and enforcing the contract, as well as the costs associated with managing the relationship with the external party, are all considered to be part of the transaction costs as well as the costs associated with the transaction itself. Therefore all of these costs should be taken into account when deciding between make or buy options. The level of the transaction costs depends upon three important factors. These factors are: frequency of the transaction, the level of the transaction specific investments and the external and internal uncertainty. The frequency of the transaction is an important factor because the more frequently exchanges occur between partners, the higher the total costs that are involved. The level of the transaction specific investments also determines the level of transaction costs, because transaction-specific investments are investments that are more or less unique to a specific buyer-supplier relationship. Examples are investments in specific supplier tooling (such as molds and dies) by a large automotive manufacturer and the change costs involved when choosing a new accountant (internal staff need to get accustomed to the new accountant, the new accountant needs to be thoroughly briefed to get acquainted with the company etc.). These examples show that investments are made in assets as well as in human capital. Obviously the higher these investments are, the higher the transaction cost will be. The last factor that determines the transaction costs is the external and internal uncertainty. Uncertainty is a normal parameter in the decision-making process. It can be defined as the inability to predict contingencies that may occur. The higher these uncertainties, the more slack a supplier wants to have in presenting his proposal and rates, and the more difficult it will be to make a fixed price or lump sum contract that deals with all uncertainties beforehand. Therefore, the higher the level of uncertainty, the higher the transaction costs will be. The other approach on which an outsourcing decision can be based is the core competence approach. This theory is based, among others, on the work of Quinn and Hilmer (1994). The core competence approach is based on the assumption that, in order to create a sustainable competitive advantage, a company should concentrate its resources on a set of core competencies where it can achieve definable pre-eminence and provide a unique value for customers … (hence it should) strategically outsource all other activities’ (Quinn and Hilmer, 1994 p43). The important question to be answered here is what are the firm’s core competence. Characteristics of core competence are; Skills or knowledge sets, not products or functions Flexible, long term platforms that are capable of adaptation Limited in number; generally two or three Unique sources of leverage in the value chain Areas where the company can dominate Elements important to the customer in the long run Embedded in the organization’s system The competencies that satisfy these requirements are the core competencies and provide the firm with its long-term competitive advantage. These competencies must be closely protected and are not to be outsourced. All other activities should be procured from the markets if these markets are totally reliable and efficient. Long and Vickers-Koch (1992) distinguish five categories of a firm’s activities, instead of two categories, core or non-core, (Quinn and Hilmer 1994). These five categories are; Cutting edge activities. The activities that determine the competitiveness of the organization from a long term perspective. Core activities. The activities that create the foundation and main process for the organization and its possible competitive advantages. Support activities. Those activities that are directly connected to the core competences. Separate activities. The activities that are part of the main process, but easily separated from that process and not related to the core competences. Peripheral activities. The activities that do not concern the main process. Anorld (2000) also makes a further distinction in a firms activities. He distinguishes between: Company core activities. Activities that are directly to the core activities. Close-core activities. The activities that are directly related to the core activities. Core distinct activities. The supporting activities. Disposable activities. Activities with general availability. Both studies imply that the outsourcing decision framework based upon the work of Quinn and Hilmer (1994) needs adjustment. Anold (2000) has developed a general model for whom the function should be outsourced. After the decision to outsource has it is essential that the right supplier is chosen. A suppler has to be selected who has the necessary technical and managerial capabilities to deliver the expected and required level of performance. Also the supplier should be able to understand and be committed to these requirements. The supplier selection process is key to the success of the buyer-supplier relationship. Companies that make extensive use of supplier selection

This is the strategic use of resources to perform activities traditionally handled by international staff and their resources. An alternative definition is the buying in of components, sub – assemblers finished products and service from outside suppliers rather than supplying them internally. It is strategy by which an org outstand. The term “outsourcing” probably refers to buying materials or components from suppliers instead of making then in-house. It also refers to buying materials or components that were previously made in-house. In recent years, the trend has been moving toward outsourcing combined with the creation of supply chain relationships, although traditionally firms preferred the make option by using backward and forward vertical integration. Backward vertical integration refers to acquiring upstream suppliers, whereas forward vertical integration refers to acquiring downstream customers. For example, an end-product manufacturer acquiring a supplier’s operations that supplied component parts is an example of backward integration. Acquiring a distributor or other outbound logistic providers would be an example of forward integration. Whether to make or buy materials or components is a strategic decision that can impact an organization’s competitive position. It is obvious that most organizations buy their MRO and office suppliers rather than make the items themselves. Similarly, seafood restaurants usually buy their fresh seafood from fish market. However, the decision on whether to make or buy technically advanced engineering parts tat impact the firm’s competitive position is a complicated one. Traditionally, cost has been the major driver when making sourcing decisions. However, organizations today focus more on the strategic impact of the sourcing decision on the firm’s competitive advantage. Generally, organizations outsourcing noncore activities while focusing on core competencies. Finally, the make-or-buy decision is not an exclusive either-or option. Firms can always choose to make some components or services in-house and buy the rest from suppliers. Reasons for buying or Outsourcing Organizations buy or outsource materials, components, and/or services from suppliers for many reasons. 1. Cost advantage: For many firms, cost is an important reason for buying or outsourcing, especially for supplies and components that are nonvital to the organization’s operations and competitive advantage. This is usually true for standardized or generic supplies and materials for which suppliers may have the advantage of economies of scale because they supply the same items to multiple users. In most outsourcing cases, the quantity needed is to small that it does not justify the investment in capital equipment to make the item. Some foreign suppliers may also offer cost advantage because of lower labour and/or materials costs. 2. Insufficient capacity: A firm may be running at or near capacity, making it unable to produce the components in-house. This can happen when demand grows faster than anticipated or when expansion strategies fail to meet demand. The firm buys parts or components to free up capacity in the short term to focus on vital operations. Firms may even subcontract vital components and/or operations under very strict terms and conditions in order to meet demand. When managed properly, subcontracting, instead of buying, is a more effective means to expand short –term capacity because the buying firm can exert better control over the manufacturing process and other requirements of the component parts or end products. 3. Lack of expertise: The firm may not have the necessary technology and expertise to manufacture the item. Maintaining long term technological and economical viability for noncore activities may be affecting the firm’s ability to focus on core competencies. Suppliers may hold the patent to the process or product in question, thus precluding the make option, or the firm may not be able to meet environmental and safety standards to manufacture the item. 4. Quality: Purchased components may be superior in quality because suppliers have better technology, process, skilled labor and the advantage of economies of scale. Suppliers may be investing more in research and development. Suppliers’ superior quality may help firms stay on top of product and process technology, especially in high-technology industries with rapid innovation and short product life cycles. An organization also makes its own materials, components, service and/or equipment in-house for many reasons. Let us briefly review these reasons; 1. Protect proprietary technology: A major reason for the make option is to protect proprietary technology. A firm may have developed an equipment, product, or process that needs to be protected for the sake of competitive advantage. Firms may choose not to reveal the technology by asking suppliers to make it, even if it is patent. An advantage of not revealing the technology is to be able to surprise competitors and bring new products to market ahead of competition, allowing the firm to charge a price premium. 2. No competent supplier: If the component does not exist, or suppliers do not have the technology or capability to produce it, the firm may have no choice but to make an item inhouse, at least for the short term. The firm may use suppliers development strategies to work with a new or existing supplier to produce the component in the future as a long-term strategy. 3. Better quality control: If the firm is capable, the make option allows for the most direct control over the design, manufacturing process, labour and other inputs to ensure that high quality components are built. The firm may be so experienced and efficient in manufacturing the component that suppliers are unable to meet its exact specifications and requirements. On the other hand, suppliers may have better technology and processes to produce better quality components. Thus, the sourcing option ensuring a higher quality level is a debatable question and must be investigated thoroughly. 4. Use existing idle capacity: A short term solution for a firm with excess idle capacity is to use the excess capacity to make some of its components. This strategy is valuable for firms that produces seasonal products. It avoids laying off skilled workers and, when business picks up, the capacity is readily available to meet the demand. 5. Control of lead-time, transpiration, and warehousing cost: The make option

Some firms make and buy critical nonstandard items to ensure that a reliable second source is available in case of difficulty with the supplier. Such a policy also provides data that are useful in reviewing internal production and management efficiency. Making the Decision Make-or-buy decisions can have a critical effect on the economic health of a firm, even on its survival. Frequently, these decisions are made at too low a level in the organization. On many occasions, no conscious decision appears to have been made. Things just happen! The decision to make is often weaker than the decision to buy because buy costs are known whereas make costs are estimates. Obviously, the amount of time and effort and the level of managerial attention appropriate are functions of the amount of money involved and the criticality of the item to the firm’s well-being. Normally several departments should be interested and involved in make-or-buy decisions: Production, Purchasing, Engineering, Finance, and Marketing. Any of the following situations should precipitate a make-or-buy analysis: New product development and modification. Every major component should be reviewed. Unsatisfactory supplier performance. If purchasing is unable to develop reliable sources for an item, the item should be reviewed and analyzed to ensure that the specified quantity level is essential and to ensure that suitable substitutes are not available. If the item, as specified, passes these reviews, it becomes a candidate for in-house sourcing. Changes in sales. Sales demand that exceeds capacity calls for a make-or buy review of those items produced in house that contribute the lowest ROI. Declines in sales and production should prompt a review of candidates for in-house production. Periodic review of previous decisions. Changing costs and other considerations can convert a good make-or-buy decision into a bad one very quickly. Major make-or-buy decisions should be reviewed as a component of the firm’s annual planning process.

The Strategic issues “What kind of an organization do we want to be?” This issue is the first, and perhaps most critical, to be addressed. Pride or purely emotional reasoning plays a major part in many decisions. Pride in Self-sufficiency can become a dominant factor that can lead to many problems. While self sufficiency in some areas is desirable or even necessary, it is impossible for even a large firm to become entirely self-sufficient. These decisions influence the firms manufacturing operation shape and capacity by determining; What product to make What investments to make in plant and equipment The framework for short term tactical and component decisions. Development of new products. Tactical make or buy decisions This deal with the issue of temporary imbalance in manufacturing capacity e.g. changes in demand may make it possible to make everything in house. Component make or buy decisions Made at the design stage, these decisions have to do with whether a particular component should be made in – house or is bought. Costs Two keys prerequisites are essential to a thorough and sound analysis of the cost considerations of a make-or-buy decision. Cost must be segregated between fixed costs and variable or incremental ones. Such cost figures must include all relevant costs, both direct and indirect, near term and anticipated changes. Realistic estimates of in-house production costs must include expected rejection rates and spoilage. These estimates also should consider the likely effects of learning resulting from long production runs. Accurate and realistic data must be available on the investment required to make or to buy an item. Frequently, the working capital required in the manufacture of an item can equal and even exceed the investment required for facilities and equipment. It is essential to consider both the facilities and the working capital components of an investment. Cost factor in make or buy decisions often require the application of marginal costing and break – even analysis 1.marginal costing this is a principle whereby valuable costs are charged to cost units and the fixed costs attributable to the relevant period written off in full against the contributions for that period contribution = purchase price – vc per them The major elements of the cost considerations are: Materials and labour costs Follow on costs stemming from quality related problem Incremental inventory carry on costs Incremental factory overhead costs Incremental management costs Incremental purchase costs Incremental costs of capital Desire to integrate plant operations Reproductive use of excess plant capacity to help absorb fixed costs Need to exert direct control over production and /or quality. Design secrecy required Unreliable suppliers Desire to maintain a stable work force (in periods of low sales ) Potential lead time reduction Exchange rate risk Greater purchasing power with bulk purchase of materials. Quality When there is a significant difference in quality between items produced internally and items purchased or when a specified quality cannot be purchased, then management must consider these quality considerations in the make-or-buy decision. One argument for making over buying is the so-called impossibility of finding a supplier capable or willing to manufacture the item to the desired specifications. But further investigation should be conducted before this argument can be accepted. Why are these specifications so much more rigid than those of the rest of the industry? The Manufacturer should reexamine the specifications and make every effort to secure the cooperation of potential suppliers to ensure that the quality specifications are realistic and that no satisfactory product is available. Frequently, suppliers can suggest alternatives that are just as dependable if they know the intended purpose of the item. On the other hand, the firm may desire a level of quality below that commercially available. Suppliers may be selling only a quality far above that which would fully satisfy the need in question and may, at the same time, have so satisfactory a volume at the higher level as to have no interest in a lower quality product. If this is the case, the user may be justified in manufacturing the item. Frequently, it is claimed that in-house production may better satisfy manufacturing’s quality requirements. The user of an item usually better understands the operational intricacies involved in the item’s use. With a make decision, a better degree of coordination will probably exist between those responsible for producing the item and those responsible for assembling it. Communications between the two groups are facilitated compared with the situation in which the item is furnished by an outside supplier. If the firm has a weak purchasing department, such assumptions may be true. But with a professional purchasing operation, the flow of information and coordination between purchaser and supplier should result in no more problems than between two production activities of the same firm. Since quality must be controlled in either the purchased or manufactured items, a competent quality assurance staff and a TQM (total quality management) program must be employed. The purchase order may state that the purchaser’s quality assurance inspectors have access to the supplier’s manufacturing, inspection, and shipping departments. Thus, the purchaser can maintain significant control and still not incur the additional cost resulting from manufacturing the item. Quantity One of the most frequent reasons for making over buying is that a requirement may be too small to interest suppliers. Small volume requirements of unique, nonstandard items may be difficult to purchase. The firm may feel that it is forced to make such items; however, it may be economically imprudent to do so. The costs of planning, tooling, setup, and purchase of required raw materials may be exorbitant. It may be far more cost effective to purchase the required item in larger quantities or to identify a suitable substitute. If a large quantity of an item is required on a repetitive basis, then the analysis described in the Cost section should be made. The company should have a high degree of confidence that its requirements for the item will continue to the point that it receives a satisfactory

Many chief executives consider the make-or-buy decision to be among the most critical and most difficult confronting their organizations. Not only are billions of dollars needlessly wasted if the wrong decision is made, but scarce management resources frequently are stretched past the breaking point. Outsourcing is a term being used in relation to services such as accounting, maintenance, security, promotion, stocking, and the like. The basic issues are the same concerning the question of doing it yourself or contracting with an independent outside the buying firm. The strategic issue requires the firm to identify its core competencies-the things that differentiate it and make it viable. If an item or service at or near the heart of the firm’s core competencies is to be outsourced, it should only be supplied by a carefully selected supplier under a tightly woven strategic alliance. Top management has the ultimate responsibility for make-or-buy decisions. In most cases, this responsibility can be satisfied through operating procedures that develop and pool all relevant information surrounding a make-or-buy issue. Purchasing is a source of much of this information. Also, Purchasing frequently should identify candidates for a make-or-buy analysis. Five major problems are common in the make-or-buy area namely: 1. Make-or-buy decisions are made at too low a level in the organization. 2. Not all factors are considered when conducting a make-or-buy analysis. 3. Decisions are not reviewed on a periodic basis. Circumstances change! 4. The estimates underlying the cost of making are less objective and accurate than the purchase facts. 5. Members of the buying company assume they know more than the supplier about the material or service.

When ever published standards are available from outside sources the same can be applied. The frequency distribution of demand for each type and size of an item in terms of quantity of materials purchased/used /or products sold, would be an excellent starting point for standardization and variety reduction in an organization. For instance, consider the example where the diameters in millimeters of pipes are 5.0, 5.1, 5.2, 5.3, 5.4 and the past pattern shows that only two sizes 5.1 and 5.4 are often used. Then the orders for the remaining three dimensions can be gradually discontinued if these items are not critical from performance and safety angles. The preferred number series-a series of standard sizes is suitable steps used in the bulbs and currency-developed by Renaud and known as R-5, R-10, R-29, R-40 etc is another way of stating the standardization process. Simplification Simplifications refers to reduction of the number of the company, supplier, or standard materials used in the product or process during product design. For example, an engine starter manufacture could design all of its starter model to use a single type of housing or solenoid. Thus, simplification can further reduce the number of small value purchases while reducing storage space requirements, as well as allowing for quantity purchase discounts. Simplification can achieved as follows;  Accumulating Small Order to Create a Large Order Number small orders can be accumulated and mixed into a large order, especially if the material request is not urgent. Otherwise, purchasing can simply increase the order quantity if the ordering cost exceed the inventory holding cost. Larger orders also reduce the purchase price and unit transportation cost. Using a fixed order interval for specific categories of materials/supplies Another effective way to control small orders is to group materials and supplies into categories and then set fixed order intervals for each category. Order intervals can be set as biweekly or monthly depending on usage. Instead of requesting individual materials or supplies, users request the appropriate quantity of each item in the category on a single requisition to be purchased from a supplier. This increases the dollar value and decreases the number of small orders. Benefit of standardization The warehousing and inventory manager must have an unambiguous nomenclature for identifying the terms, in order to serve the customer promptly. In this process, standardization which reduces the variety plays a vital role by reducing the number of varieties of the same item held in the warehouse. More than any other executive, the stores in charge comes into direct contact with a variety of materials. He can gain knowledge on the uses of materials in the store and can contribute significantly to achieve standardization. Standardization enables one to concentrate on large quantity of fewer items. It is possible to place economic order quantity or orders of staggered deliveries with bulk discount. Economic lot size at manufacturing will not be a problem as items can as items can be manufactured with the same set up timings for standard items. Since the inventory is likely to be less, the working capital commitment of the organization will also be less. The items can be easily identified by all persons in stores as the bin location can also be standardized. Standardization reduce the time involve in negotiation process with the suppliers as communication is better with prompt delivery schedule. The procurement lead time gets reduce as everyone knows the item clearly. The buyer-seller relations can be improved as all dimensions including price analysis. Specifications lead time etc, are standardized without scope for disputes. Standardization promotes healthy competition amongst vendor as standard items can be bought by several companies. Standardization minimizes obsolescence. It is possible to have rate running contracts for standardized items. Standardization reduces design time by concentrating on fewer parts.  It minimizes draft time through respective of standard drawings. It expands the engineers list of known and power items. It reduces specification writing by repetitive use of standard specifications. Interchangeability of parts is assured through standardization. Lower cost of production through continuous manufacturing run with less material handling problems and increased capacity utilization is achieved by standardization. The workers at all levels and departments become more efficient by repeated handling of items and it is possible to utilize less skilled workers for standard operations. Standardization enables reduced inspections and quality control burden. Since methods are standardized, it ensures safety to all. Standardization directly reduces the variety and improves the information system of the warehouse manager. Standardization enables reduced number of maintenance tools and improves maintenance practices. Standardization aims at maximum variety of finished product with minimum categories of assemblies, sub assemblies and components. In general, standardization result in simple operations, minimum paper work, improve inter departmental coordination, ease of computer application and pinpoints areas involving inefficiency. In short, standardization is a means to faster and better understood communication, with fewer mistakes and hence smoother life. Roadblock to standardization Standardizations should not lead to monotony and prohibit innovations. For instance, it is not possible to introduce standardizations of end products in job shops, but assemblies/parts constituting a final product may be standardized. Similarly, it is possible to standardize items like shoes in terms of seven, or eight sizes. Standardizations must not lead to rigidity in design or restrict technical development. Standardizations is also based on previous practices. In summary, the following points should be borne in mind; Identify the relevance of standardizations in warehousing and inventory management Discuss the benefit of standardization to different departments in the organizations Explain how you will identify the items of standardizations Describe the procedures for standardizations Enumerate the pitfalls of standardization Elucidate the applications of the concept of frequency distributions to standardizations Clarify the concepts of preferred number series in relations to standardization Specify the interrelationship between standardizations ,simplifications and specification Explain the role of Kenya bureau of standards in development of standards Examine the scope of standardizations in job shop, office and administrations.

The task force, responsible for standardization must follow procedure to get the items standardized. They should get all relevant facts from the concerned executive. They should develop standards which are easy to understand and to implement. There should be a constant reviewing, updating and monitoring committee so that best benefits accrue to the company. The process of standardization can be conceived on a three dimensional plane. To include factors such as levels, aspect, subject and there interrelation . the level includes individual, departments, company, industry, nation, international, and universe. While the aspects may include forms, ethics, code of conducts procedures, contracts, inspection, testing sampling, agreements or reporting, notes etc. The third dimension, namely the subjects, encompasses industry, education, agriculture, communication, transport, mining, trade, commerce, energy, family planning, construction and administration. The standardization process may take the form of a document containing a set of conditions to be fulfilled, a fundamental unit or physical constant or an object for physical comparison. The apex body of standards in Kenya is the Kenya bureau of standards (KeBS). At international level, international standard organization is based in Geneva. Items to be standardized The warehouse and inventory manager should involve executives from design, maintenance, inspections, operations and costing department in order to ensure that the recommended standards are implemented. This team should update its knowledge on the latest available technological development to effectively implement the process of standardization. If the standard is approved as a company standard, the standard department should make necessary reproduction and distribute copies as mandatory to all concerned. We have the kilogram as standard of weight, meters as the standard of length. Keeping to the right as the standard of the road, motors are made only in certain ratings, bulbs only in specific voltages, etc. Procedures, formats, reporting system, sampling inspections plans, letter heads, operating manual, standard costing method, etc. are the examples one comes across in the field of standardization. It is advantageous to tackle non critical high value, easily available item for standardization, as otherwise there will be opposition from design department. MRO-maintenance, repair and operation items like fasteners, hardware items, maintenance, etc. are a good starting point to impose standardization.

Standards may be classified in numerous ways. Standards can be differentiated based on purpose. A basic standard has a broad ranging effect in a particular field, such as a standard for metal which affects a range of products from cars down to screws. Terminology standards (or standardized nomenclature) define words permitting representatives of an industry or parties to a transaction to use a common, clearly understood language. Test and measurement standards define the methods to be used to assess the performance or other characteristics of a product or process. Product standards establish qualities or requirements for a product (or related group of products) to assure that it will serve its purpose effectively. Process standards specify requirements to be met by a process, such as an assembly line operation, in order to function effectively. Service standards, such as for repairing a car, establish requirements to be met in order to achieve the designated purpose effectively. Interface standards, such as the point of connection between a telephone and a computer terminal, are concerned with the compatibility of products. Standards on data to be provided contain lists of characteristics for which values or other data are to be stated for specifying the product, process or service. International Standards have been developed through a process that is open to participation by representatives of all interested countries, transparent, consensus-based, and subject to due process. The existence of non-harmonized standards for similar products, processes, and services in different countries or regions can create barriers to trade. Therefore, export-minded countries and industries have recognized the need for internationally accepted standards to help rationalize the international trading process. Standards may also be classified by the intended user group. Some examples include: Company standards are meant for use by a single industrial organization and usually are developed internally. International standards are developed and promulgated by international governmental and non-governmental organizations, such as the North Atlantic Treaty Organization (NATO) or the International Organization for Standardization (ISO). Harmonized standards can be either an attempt by a country to make its standard compatible with an international, regional or other standard or it can be an agreement by two or more nations on the content and application of a standard, the latter of which tends to be mandatory. Industry standards are developed and promulgated by an industry for materials and products related to that industry. Government standards are developed and promulgated by Federal, State, and local agencies to address needs or applications peculiar to their missions and functions. Another distinction among standards is the manner in which they specify requirements. Performance standards describe how a product is supposed to function. A performance standard for water pipe might set requirements for the pressure per square inch that a pipe must withstand, along with a test method to determine if a specimen meets the requirement. Design standards define characteristics or how the product is to be built. The specification that a pipe be made of a given gage of copper would characterize a design standard. Government agencies are encouraged to write technical regulations and standards in terms of performance, rather than design characteristics. Still another classification scheme distinguishes between voluntary standards, which by themselves impose no obligations regarding use, and mandatory standards. A mandatory standard is generally published as part of a code, rule or regulation by a regulatory government body and imposes an obligation on specified parties to conform to it. However, the distinction between these two categories may be lost when voluntary consensus standards are referenced in government regulations, effectively making them mandatory” standards. It is clear, then, that standards cover a broad range of types and serve a wide variety of purposes. Where appropriate purchasing should work with design, engineering, and operation to seek opportunities to standardize materials, components and supplies to increase the usage of standardize items. For example, a car manufacture could design different models of automobiles to use the same starter mechanism, thus increasing its usage and reducing the need for multiple items storage space. While allowing for large quantity price documents. This will also reduce the number of small value purchases for less frequently used items