DEBRE BERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMIC

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

SUMMER PRACTICAL ATTCHMENT IN DEBREBRIHAN TOWN FINCCE

AND ECONOMICES DEVELOPMENT. IN DEPARTMENT OF PERCHESING
MANAGEMENT

Prpard BY: Ayele Eshete

ID/NO: 2499/10

Submitted To: Logistics and SCM Dep’t.

Submitted Date: 05\02/2012

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Content page

1. Organizational report……………………………………………………………………………………………………………………………6

1.1 .background of the organization………………………………………………………………………………………………………..6

1.2. Cardinals issues…………………………………………………………………………………………………………………………………7

1.2.1. Mission…………………………………………………………………………………………………………………………………………7

1.2.2 .value…………………………………………………………………………………………………………………………………………………7

1.2.3. Vision ……………………………………………………………………………………………………………………………………………….8

1.2.3 .Objective……………………………………………………………………………………………………………………………………………8

1.3. Organization structure…………………………………………………………………………………………………………………………….8

Responsibility of some department ………………………………………………………………………………………………………..9

1 .human resource management………………………………………………………………………………………………………………….9

2 .auditing department …………………………………………………………………………………………………………………………………9

3. Purchasing ………………………………………………………………………………………………………………………………………………..-9

4 .planning and budget…………………………………………………………………………………………………………………………………….1o

1.4 .The extent to which the organization is realizing its vision mission and performance of organization in
relation to its objective……………………………………………………………………………………………………………………………………10

1.5 .strength, weakness, opportunity and threat or (SWOT) analysis of the organization …………………………………11

1.5.1. Strength of the organization …………………………………………………………………………………………………………………11

1.5.2. Weakness of organization ……………………………………………………………………………………………………………………11

1.5.3. Opportunity of organization …………………………………………………………………………………………………………………12

1.5.4 .Threat of the organization ……………………………………………………………………………………………………………………12

1.6. Problem observed and that affect the organization currently……………………………………………………................12

1.7. Suggested solution or measures to taken to solve or at least minimize the problem ………………………………13

2. Activity report……………………………………………………………………………………………………………………………………………13

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2.1. Background of department………………………………………………………………………………………………………………………13

2.2 .objective and major responsibility as well as activity of the department…………………………………………………13

The main responsibility of the department ………………………………………………………………………………………………………14

Major Activity of the department……………………………………………………………………………………………………………………14

2.3. My responsibility and major activity as member of the department…………………………………………..................15

My overall responsibility as member of department ………………………………………………………………………………………..15

2.4. Performance evaluation of activity …………………………………………………………………………………………………………..16

2.5. Problem encountered on the job and remedial I have taken ……………………………………………………………………..16

Remedial measure taken …………………………………………………………………………………………………………………………………16

2.6 .problem of division or department and suggested solution ………………………………………………………………………16

Suggested solution ………………………………………………………………………………………………………………………………………….17

3 .attachment evaluation………………………………………………………………………………………………………………………………….18

3.1. Rational of practical attachment ………………………………………………………………………………………………………………18

3.2. Significance of practical attachmet…………………………………………………………………………………………………………….18

3.3 .Relevant of organization and my activity to my study ……………………………………………………………………………....19

3.4. The real world practical attachment ………………………………………………………………………………………………………….19

3.5. Major problem that face me during the attachment ………………………………………………………………………………….19

3.6. Suggested solution and way forward for attachment …………………………………………………………………………………19

4 conclusion and recommendation …………………………………………………………………………………………………………………20

4.1 Summery and conclusion ……………………………………………………………………………………………………………………………20

4.2. Recommendation ………………………………………………………………………………………………………………………………………20

4.3. Reference…………………………………………………………………………………………………………………………………………………21

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 background
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 that debre berhan University College of Business and
Economics Department of Logistics and Supply Chain Management to give me this golden
opportunity and also I would like to thanks all members of purchasing department of in Debre
berhan town fiancé and economic development those who are facilitating my practical attachment
especially: Zeyede Getachew (purchasing manager), Demeke Tekola(auditing officer) and Girma
Gizachew(supervisors) of some department. Finally I would like to thanks my family.

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Abstract

This summer practical attachment was conducted. To analyze the real working environment with that
field of study. That is the attachment was to determine how theoretical learned course is applied in the
real world. It focuses to identify for the purchasing system from the highest level up to lowest level of
organization structure. In Ethiopia government policy purchasing system is capital economy. But, the
main objective of this report was to investigate the challenges of purchasing management in
debreberhan town 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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1. PART ONE: ORGANIZATIONAL REPORT

1.1 background of the organization

Debre berhan town finance and economic development office is found in Amhara region Semen shoa
zone in debrebeerhan town is located at 130 KM from capital city of Addis Ababa . The office was
founded in 1935

In accordance with the functions and responsibilities of the Amhara National Regional State
Government Proclamation, Proclamation and Duties Proclamation No. 91/96 of the Amhara National
Regional State, the city has completed its initial development and transformation plan by the fifth
year. Beginning with the implementation of the five-year Strategic Plan in to fill in the gaps in the
implementation plan, plan the plan with the executive and the public at various forums. By analyzing
the council to work step by entering in the 2011 fiscal year, numerous efforts mederegechewine
particularly appropriate to carry out the development activities have been the first growth in a variety
of activities in order to tirenišiforimishini years. As a result, efforts are being made to eliminate
poverty by collecting skilled land leases in 2011, collecting real estate leases, taxing the state and city
income tax for development.

. The organization has 43 employees which 24 female and 19 is male generally debre berhan finance
and economic development office was perform its activity according to the region government given
off finance and economic development full control of activity of pIan order to make the poverty
reduction mission successful, the City Council has prepared a second phase of growth and
transformation in a 5-year strategic plan and prepared for implementation and implementation
bodies at all levels.

Next, implementing the structural and operational changes in the sector, providing the required time,
energy, and cost-effective, efficient and efficient service to customers by identifying the city's mission
and identifying strategic 2011 targets and strategic goals to achieve next year's results. The plan is laid
out by setting up an

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1.2 Cardinal issues

1.2.1 Mission

 Implementing the cyborg servers report on the rules of government policies in the city
administration.
 Community access to instant service.
 Community access to fair service.
 Utilizing the resource of the public and the capacity of the government.
 Ensuring the benefit of the community by speeding up the development of the city.
 Promoting and analyzing your fiscal policies.
 Establishing an equitable wealth management system.
 Securing the financial benefits of the thamud people by promoting transparent and
accountable government accountability.

1.2.2 Value

 We are subject to the rule of law.

 We develop a clear and accountable.
 We respect gender equality.
 We protect ourselves from HIV/AIDS.
 We struggle with discrimination and stigma.
 We do support and monitoring work for the concerned parties.
 We ensure that the resources of the government and the people utilized.
 We will make society a beneficiary of rights.
 We celebrate the good tradition of the community
 We prioritize the community and benefit from the development
 We accept and apply the rules and guidelines of strategies adopted by the
government

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 1.2.3Vision

 Making our city community more informed.

 Seeing our city and community as a real city with good governance and working environment
in 2012 is a good administration that can communicate with information rich national urban
issues.

 To achieve the society present and future

1.2.4 Objective

By implementing activities in the fiscal year, we will continue to work on a wide range of activities,
developing a systematic approach to achieving its goals and setting a balanced scorecard system that
can achieve its goals. Establish a startup plan based on and review last year's performance.

 To modernize financial administration of the organization.

 To Manage the resource and income rising
 To Implement government policies and strategies the of role growth and
transformation of the counter

1.3. Organizational structure

The organizational structure of debre berhan town finance and economic development office divide in
to five divisions to achieve its objectives. Firstly there is head manager below him there is four
department supervisors in which sub departments sub division. The structure is as follows,

Head office manager

5Resp
Purchasing and
Budget Auditing Internal Financial
financial
department department audit department administration
Budgetdepartmen
Purchasing and
t head
finance
administration
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Responsibility of some department

1 Human resource management

The responsibility of human resource management include

 Participate in planning and development.

 Provide employees with career assistance.
 By helping employees with career development.
 Find and recruit employees that advance woreda objective.
 Serve as leaders of change.
 Advocate for employees.
 Provide support for domestic violence.
 Ensure no cyber bullying at work
 Hiring human resource by dealing concerning body.
 Rearranging and training for employees.
 Attending the employees in order to respect the rule of organizing

2.2.Auditing department

The role of department include

 Identifies and understand quality control issue

 Develops appropriate policies and procedure
 Implementation approved policies and procedure by disseminating manual practice advisors
and methodological guideline and tools
 Monitors the implementation and compliance with approved policies and procedures by
conducting evaluation of the audit quality control system.

3. PURCHSING

 Preparing bidding document.

 Inspecting and specifying items to be purchased.
 Arranging and implementing buying process.
 Creating favorable station with supplier for mutual benefit.

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  Gathering information regarding quality and quantity of items.

4 Planning and budget

 Based on government economic policy it set short term and long term plan of the
organization.
 Annual budgeted document report
 Right to information
 Efficiency
 Review and approve original charges all invoice and requests for payment, including any
related backup documentation.

1.4. THE extent to which the organization is realizing its vision mission and performance of
organization in relation to its objective
Debreberhan town Woreda finance and economic development bureau is one of the governmental
organization. To realize their mission and vision
The employee serving the customer fairly, they are punctual; respect each other, cooperative and
patience to handle the customer to solve their problems.

 Also they have one to five group to work and realize their vision and mission.

 By using 1 to 5 groups simplify a big task and finished within a short period of time.

 And also have performance in relation to its objectives

 They fulfill 90 percent of their work in relation to objectives and they rich 80 percent of the
organizations vision and mission.

 To satisfy their customer interest increase their service range by 30 percent from previous year.

 The manager control day to day activity and identify the main problems and give immediate
solution to the problems. this means 90 percent of the organization problems solved
immediately

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1.5. Strength, weakness, opportunity and threat or [SWOT] analysis of the organization

1.5.1 Strength of the organization

 There is availability of practical structure system of regional policy and strategy

 there is reform of financial lows

 there is purchase improvements aggrivance listener committee and town audit committee

 the implementation of big and bundle purchasing in one center

 in the case of information arrangement there is connection of information by database system

a resource or capacity the organization can use effectively to achieve its objectives.

1.5.2 Weakness of the organizations

 To be able to work seamlessly rather than co-operate and co-operate

 Access to information storage space due to lack of information management
 Projects in the fiscal year are not completed on schedule due to various reasons and lack of
quality infrastructure.
 It is a big problem of good governance as the spread of illegal activities across
Failure to properly manage and utilize limited resources at city level

 Ensure that all job seekers are integrated into the workforce through appropriate skill
development and thinking.
 To identify the investment options and to enable the investor to utilize their potential
 Disappearance of the public in the absence of rapid and efficient service delivery at all levels
 Recognize the problem of good governance and resolve it with the concerned party
 There should be sewage and dry waste in all areas without creating urban green and green
 City taxis do not operate on their assigned lines and charge out
 Inadequate inputs especially the officeative internal analysis of organizations

1.5.3 Opportunity of organization

 Reform of finance time schedule

 availability of large number of human resources

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  the increasing of private investment

 the presence of growth and transformation plane

 the designing and practice of overall country policy and strategy

 the presence of free market economy

 special focus on the decreasing of poverty

 good partnerships to other financial organization

 the development of saving habit in society

 the flourishement of financial service giving organization

1.5.4 Threat of the organization

 the presence of backward social thinking

 enhancement rural-urban flow

 sometimes the presence of local crash

 different natural and man-made problem

 budget organization guided by plane

 over flow of human power

 unsatisfactory growth of technology because of lack of skilled human power and finance

 less awareness on the continues handling and using of natural resources

1.6. Problem observed and that affect the organization currently

The organization hav many problems that makes organization difficult at current time. Among those the
major one are listed below:
technological problems

 lack of comfortable class room

 facility problems

 lack of sufficient human power

 some employee are not honest and punctual

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  turnover of employees

1.7. Suggested solutions or measures to taken to solve or at least minimize the problem
Technology is important role in the organization for the sale of speed up the work. But in the case
of this organization there is a shortage of modern technology like computer, Internet access, and
website. So those modern technologies are very important to solve such type of problem. There is also
no enough class room, so the additional class room should be needed.The organization has its own
facility problem, among those problems material problem is the main one, so suggested solution is
increasing the facility of the organization needed to perform the activities.

2. Part Two: Activity report

2.1. Background of department

Purchasing is one part of marketing management and procurement, financial and economic
development activate can be also activate of the department. Purchasing department is one of the
departments in the organization.
In the case of this I would attach practical work with purchasing department in debreberhan town
Woreda finance and economic development office specially purchasing department. When we come to
this organization it has their own rules, regulations, plans and responsibilities.

2.2 objective and major responsibility as well as Activity of the department

The major objective of the department of purchasing department have their own many objectives. From
that objective some are:-
 To give fast service to the society by preparing bidding document.
 To assessing the current market condition and purchasing the right material or service
 Perform planning and budgeting activate based on the true information.
 Follow up effectiveness of the plan and program
 To inform the system of the budget of owner.
 To prepare purchasing plan.

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The main responsibility of the department

The major responsibility assign to the department

 Determining and executing the mandate of the city's common vision and mandate to enable
integrated social and economic development
 Supporting and implementing policies to implement and support policies to guide and support
the development of the city
 Establish rules and guidelines for other activities that fall under the jurisdiction of the city
government
 Reorganizing and administering the establishment of organizations, offices, institutions,
commissions and boards of executive bodies of the city.
 Determining the organization of the judiciary in our urban issues
 Approving and administering the city budget
 To oversee the land and natural resources in the city
 Participate in the fundraising activities and receive donations and donations in the name
 To share income with the Regional Government as determined by the revenue of the State
 Borrowing from local sources with the consent of the Regional Government Council
 To direct and supervise industry and city service activities

Major Activity of the department

Purchasing department has so many activate in the business world, but I had seen the major activities
of the department. those are:
 Printing Bing report and kinds of document
 Opening bidding box and close bidding box
 Reading bidding document in front of the bidder
 Give the bidder to the winner participate.
 Prepare bidding consent document
 Give bidding payment to the winner

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  Purchasing the capital and currently use the material from the market.
 Improving the purchasing requisition form and record on the purchasing planning sheet

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

 Preparing bidding document
 To communicate one business sector to the other.
 Preparing preform invoice to send sealer
 To approve and prepare payment check document for authority.
 Record and take appropriate budget plan.
 Preparing the tendering manual document
 Record and take budget planning
 To separate permanent and perishable property
 To give code number for permanent inventory.
 Supplement of government purchasing

My overall responsibility number of department

 I was supported department staff in preparation of documents which related to purchasing.

 I talked repeated to all of the staff and shared them a more of at my observation so that the
department may be creative initialized efficient and effective.
 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.

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2.4. Performance evaluation of my activity
During the season practical attachment work I have performed activities in the organization as a
member of purchasing department, from these activities I have performed:
 Compare practical attachment of the document from one organization from other organization
to get use full information
 Punctual, sociable and good communication with workers of the department as well as
organization
 Performing activities of the department or organization by coordination with other employee
 Helping the worker preparing bidding document
 Preparing preform invoice and sending to customer
 Select the winner and write the purchasing evaluation sheet.
 Take the material requisition form from another department

2.5. Problem encountered on the job and remedial l have takn

Poor communication between purchasers officers, because of shortage of computer access for what
are there do work properly.
 Shortage of budget planning
 Poor communication between candidates and proceeding shall be not writing.
o Remedial measures taken
 Use computerized system in order to simplify or minimize work complexity.
 The organization should be assign professional employee in the field.
 Try to improve the communication between them and to make the activate together
 Try to do the activity in the short method

2.6. Problem of division or department and suggested solution.

 The main problem that faced the purchasing department includes the following.
 Miscommunication between the employees in the office

 Different activities of the department were performed by using old experience, so it was difficult
to know the working system easily.

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  Most of the employees are not graduated with purchasing department.

 Lack of computer facilitating the work effectiveness

 Shortage of computer and electronics material.

 Lack of strong market survey.
 Lack of enough man power.

Suggested solution

 The office should be assign professional employees in the field

 Use computerized system in order to simplify or minimize work complexity.

 Tray to improve the communication between them and make the activate together. and Try to
do the activate in the short method.

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 3. PART THREE: ATTACHMENT 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.
 Applying theoretical parts in practical form
 To check the understandability (clearing) of the course.
 To cheek how to use time in the organization effectively and efficiently.
 To measure the skill of student.

3.2. Significance of practical attachment

 Practical attachment with respect to the learning theory has great contribution and more
comfortable to the way for the well performance of the individual as well as student in the
real worked. So this practical attachment which I participate and work through
professionalism, so that I can become effective and productive to our respective organization
in the future and I participates work through my location has significant they are listed below.
 Apply knowledge of skill learned in the university.
 Acquire skill needed to become practice oriented professionals.
 Strength work value through an improved understanding of myself and the work
environment.
 Gain communication and interpersonal skills that promote personal growth and development

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 3.3 Relevance of organization and my activity to my study
 As its name indicate finance and economic development is one of the governmental sectors
whose responsibility is providing finance service and prepare development planning to
promote economic development through using available resource in productive way.
 Generally the practical attachment relevance to the organization and student side are
 To reduce the work load from some period of time.

 To improve the relationship between business organization and educational institution.

 To get experience for the future plan.

 To know the relationship between organization and other institution. And to adjusting
themselves for real working environment.

 3.4 The real world practical attachment

3.5 Major problems that face me during the attachment.

 At the beginning time I take a lot of time to adopt the organization environment code of
conduct rule and regulation.
 Most of employee was not free to share their experience.
 It is difficult to identify the document, because of of the presented of different document

3.6 Suggested solution and way forward for attachment

 The general manager should be given the apprentice in order to help him to adopt the
organization environmental rule and regulation.
 The document should be organized in different code system.

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4. PART FOUR CONCLUSION AND RECOMMENDATION

4.1 summary and conclusion

Budget Performance and Second Chapter Growth and Transformation Plan Review

Sector Plan for Regular and Capital Projects Fiscal Year

Fiscal Year Budget allocated to city government to the extent that it works.
The development of the city administration and the growing interest in the community

The plan has been developed with the objective of taking into account the broader
involvement of the government's small-scale development and use of resources.

In order to successful the organization forms its own mission, vision, and objective .The
organization has different division among which purchasing is one with the responsibility of
buying material for the different sectors of woreda. All departments and sub division is
working together to achieve the goal the organization. During my stay I have observed and
understand how theoretical knowledge obtained in class is put into applications. This
practical attachment enables students to get different knowledge regarding their study
because most activity of organizations related with what the students study.

To conclude, practical attachment helps students to observe the working environment and be strong
enough when they join different organization.

4.2 Recommend
As the discussion in the main part of the report there are main problem in the office as well as the
organization. By considering these problems I try to recommendation my best solution is as follow as
 Every purchaser should get training.
 The organization should be use necessary equipment in the office, like computerized system.
 government must give attention in hiring highly qualified employee in the office for the
achievement of organization objectives.
 Classified activities in different groups to act easily and work with coordination in one to five are
continued.
 The organization should be prepared detailed ethical principle, rule and regulation.
 Improve the problem regard to budget for party by making of preparing which is easily
applicable and by carrying on each country on the plan.

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REFERENCES

 Format of weekly and monthly reports

 Written document in the office


 Different employee in the organization

 From my observation in the organization

 my supervisor

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