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In a typical
R & D set up, the following characteristics are easily
visible w.r.t. an R&D (research) project:
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# a particular project is
pursued only once or rarely more than once
# the project duration is small enough to provide the
results at the earliest for use
# project conceiving may or may not be predetermined. It
may be sudden and resultant of the brain wave of a
scientist
# Project findings may get early implementation for
commercial production
# Projects ,mostly, are of pilot nature i.e. of
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low value and less time duration. Many
projects may need materials as tools for diagnosis ,
tests and trials. Obviously, based on the above
characteristics which are essentially a way of working
for any industrial R & D set up, the material
requirement too is peculiar with the following
characteristics:
# Item is not repetitive, it
may be required only once
# Purchase function should ensure speedy procurement
# Element of proper planning w.r.t. timely raising of
indent , exact specification, correct estimated price
may be missing
# Quantity of items to be purchased is small
# Sourcing may not be easy as items are developmental in
nature, mostly new
Often,
the requirement of materials and the nature of purchases
are at cross purpose.
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For example, an item is required
urgently but the exact specification is not available,
quantity is too small for the vendors to show interest,
item is new and the sources are not known etc.
These and
other situations eventually become the limiting factors
for the purchase man who wants to reduce the Lead time
in purchasing.
It is a fact of life for the Purchase man that the
delivery gets delayed, sometimes enormously, as despite
of the agreed |
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delivery schedule the vendor could
not complete the job solely because the item was of
developmental nature and the time it took for completion
could not be assessed precisely in the begining. |
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R & D purchases, therefore, are significantly different from
those done in a manufacturing unit where there is enough
control on the variables. At least, specification of an item
, that determines the item to be purchased is frozen. Sources,
to a great extent, are also known and therefore constant in
nature. The only variables can be price and delivery
schedule. As against it, in an R&D set up there is lack of
adequate information on sources, likely price and a
justified delivery schedule. Specification often remains a
variable until just prior to placement of order.
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Considering that urgent need to procure the material that
too on , say short notices at times is of primary concern in
an R & D set up what should be the procurement system or put
in other words, can there be a procurement system that can
take care of urgent needs where exact specification, sources
and likely delivery schedule are difficult propositions ?? |
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