• Evidence exists that thought and careful study have been given to the need and the ways in which it may be satisfied.
• A standard is established for measuring and checking materials as supplied, preventing delay and waste that would occur otherwise.
• An opportunity exists to purchase identical requirements from a number of different sources of supply.
• The potential exists for healthy competition; however the buyer must be sure that the suppliers are quoting for exactly the same material or service.
• The seller will be responsible for performance when the buyer specifies performance.
However there are also many limitations to specifications:.
• There are many items for which it is practically impossible to draw adequate specifications.
• Although a saving may sometimes be made in the long run, the use of specs adds to the immediate cost.
• Compared with purchase by brand the immediate cost is also increased by the necessary aspect of testing to ensure all specifications have been met.
• The minimum specs set by the buyer are likely to be the maximum given by the supplier.
Total quality management is a philosophy and system of management focused on customer satisfaction. In TQM the customer can be internal or external and is anyone in the supply chain who receives materials from a previous step in the chain. Four features of TQM are: .
• Quality must be integrated throughout the organisations activities.
• There must be employee commitment to continuous improvement.
• The goal of customer satisfaction is what drives TQM.
• Suppliers are partners in the TQM process.
TQM stresses quality as the integrating force in the organisation, for TQM to work all stages in the production process must conform to specifications that are driven by the needs and wants of the end customer.