an evaluation of the impact of procurement planning on service delivery in 3rd level hospitals

RESEARCH TITLE

AN EVALUATION OF THE IMPACT OF PROCUREMENT PLANNING ON SERVICE DELIVERY IN 3RD LEVEL

HOSPITALS

A RESEARCH REPORT SUBMITTED TO THE COPPERBELT

UNIVERSITY IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE

IN PURCHASING AND SUPPLY

I

DECLARATION

I Nyondo Saviour, do hereby declare to the best of my ability that this report is as a result of my

own, and that all work of the other Authors has been fully acknowledged and that to the best of

my knowledge, this work has not been presented before at The Copperbelt University or any other

institution for the similar purposes.

Author’s Signature: ……………………………………………………………………………….

Supervisor’s signature: ……………………………………………………………………………

On this …………………….………..day…………………….…………………………….. 2014

II

DEDICATION

I dedicate this report to my late father Matthias Nyondo and my late mother Agness Bwalya

Nyondo who have laid for me an academic foundation that has led me to this level, my siblings

Christine Nyondo, Annie Nyondo, Mary Nyondo, Nelson Nyondo, Frank Nyondo, Medrine

Nyondo, Marvis Nyondo, Marjory Nyondo, Memory Chisela, Mr. Tresford Chisela and all my

family members for their motivation and developmental ideas.

III

ACKNOWLEDGEMENTS

I would like to extend my sincere gratitude to the Almighty God who gave me life, knowledge and

has always been with me throughout my studies.

I greatly extend my thanks to my supervisor Dr. B. Maliti for his guidance throughout the research

process. His support has enabled me to produce this work.

I would also like to extend my gratitude to the project coordinator Mr. Sikombe for the ultimate

help he had rendered towards the completion of this project.

The respondents who took part in this study especially the procurement officer from Kitwe Central

Hospital Mrs. C Kansamba for the major interest, courage, commitment she had shown in my

project and the exceptional pioneering spirit she gave.

I also thank Mr. and Mrs. Sikazwe and Mr. T. Chisela for the morale, academic as well as financial

help they rendered to me. I would have not reached this far with my education without your love

and care. May the almighty God replace were I took from.

I also extend my special thanks to my family members afore mentioned, my campus friends and

my roommates Ohluwye Mwiinga, Kayamba Mapulanga and Akabiwa Akatama for the support

they rendered.

Lastly, I express my great appreciation to Kafula Bwalya, my one and only. You have been such

a great and amazing person in my life and has always encouraged and helped me to do my best in

life. I thank you for having contributed towards the completion of this project and for being who

you are in my life. May the almighty God richly bless you.

To all others who might not have been mentioned above, appreciation and acknowledgement are

here by expressed.

IV

LIST OF FIGURES

Figure 3.1 ……………………………………..……………………………………………….36

Figure 5.1 ……………………………………..……………………………………………….41

Figure 5.2 ……………………………………..……………………………………………….42

Figure 5.3 ……………………………………..……………………………………………….43

Figure 5.4 ……………………………………..……………………………………………….44

Figure 5.5 ……………………………………..……………………………………………….45

Figure 5.6 ……………………………………..……………………………………………….46

Figure 5.7 ……………………………………..……………………………………………….47

Figure 5.8 ……………………………………..……………………………………………….48

Figure 5.9 ……………………………………..……………………………………………….49

Figure 5.10 …………………………………………………………………………………….50

Figure 5.11 …………………………………………………………………………………….51

Figure 5.12 …………………………………………………………………………………….52

Figure 5.13 …………………………………………………………………………………….54

Figure 5.14 …………………………………………………………………………………….55

Figure 5.15 …………………………………………………………………………………….56

Figure 5.16 …………………………………………………………………………………….57

V

LIST OF TABLES

Table 2.1 ……………………………………………………………………………………….20

Table 4.1 ……………………………………………………………………………………….37

Table 5.1 ……………………………………………………………………………………….42

Table 5.2 …………………………..….……………………………………………………….43

Table 5.3 …………………………..…….…………………………………………………….44

Table 5.4 …………………………..……….………………………………………………….45

Table 5.5 …………………………..………….……………………………………………….46

Table 5.6 …………………………..…………….…………………………………………….47

Table 5.7 …………………………..……………….………………………………………….48

Table 5.8 …………………………..………………….……………………………………….49

Table 5.9 …………………………..…………………….…………………………………….50

Table 5.10 …………………………..…………………………………………………………51

Table 5.11 …………………………..…………………………………………………………52

Table 5.12 …………………………..…………………………………………………………53

Table 5.13 …………………………..…………………………………………………………56

Table 5.14 ……………………………………………………………………………………...57

Table 5.15 ……………………………………………………………………………………...58

Table 6.1 ………………………………………………….…………………………………....61

Table 6.2 …………………………..……………………………………………………………62

VI

ABSTRACT

Service delivery in Public Health is vital to enhance the quality of life and reach the needs of its

beneficiaries. To satisfy these needs an organisation needs to plan its procurement system in the

most efficient manner. Therefore, this research will investigate the impact of procurement planning

and on service delivery (provision for public health care) in 3rd Level Hospitals. It will strive to

establish the relationship between procurement planning and service delivery.

Data shall be collected by use of questionnaires, interviews and available published records such

as textbooks, journals, magazines, manuals and internet.

TABLE OF CONTENTS

DECLARATION…………………………………………………………………………....……. I

DEDICATION ………………………………………………………………………...…………II

ACKNOWLEDGEMENT……………………………………………………………...………..III

LIST OF FIGURES………………………………………………………………………..…….IV

LIST OF TABLES……………………………………………………………………………….V

ABSTRACT……………………………………………………………………………….……VI

1.0 INTRODUCTION ............................................................................................................... 5

1.1 BACKGROUND .............................................................................................................. 5

1.1.1 About 3rd Level Hospitals ......................................................................................... 7

1.1.2 Services Provided in 3rd Level Hospitals .................................................................. 7

1.2 PROBLEM STATEMENT .............................................................................................. 8

1.3 PURPOSE OF THE STUDY ........................................................................................... 8

1.4 RESEARCH OBJECTIVES ............................................................................................ 9

1.5 RESEARCH QUESTIONS .............................................................................................. 9

1.6 HYPOTHESIS ................................................................................................................. 9

1.7 SCOPE OF THE STUDY ................................................................................................ 9

1.7.1 Conceptual Scope...................................................................................................... 9

1.7.2 Geographical Scope .................................................................................................. 9

1.8 SIGNIFICANCE ............................................................................................................ 10

2.0 LITERATURE REVIEW .................................................................................................. 11

2.1 INTRODUCTION .......................................................................................................... 11

2.2 PROCUREMENT PLANNING ..................................................................................... 11

2.2.1 Steps in preparing a procurement plan according to ZPPA .................................... 12

2.2.2 Considerations in procurement planning (ZPPA) ................................................... 13

2.2.3 The importance of procurement planning ............................................................... 13

2.2.4 Procurement plan Template .................................................................................... 14

2.3 ROLE UNDERTAKEN BY THE PROCURERING ENTITY IN PROCUREMENT

PLANNING .............................................................................................................................. 15

2.3.1 Annual procurement planning and publication ....................................................... 15

2.3.2 Defining procurement requirements for an entity ................................................... 15

2.3.3 Aggregation of requirements .................................................................................. 16

2.3.4 Dividing requirements into lots .............................................................................. 17

2.3.5 Choosing of procurement method ........................................................................... 18

2.3.6 Emergency procurement ......................................................................................... 18

2.3.7 Selection of bid submission method ....................................................................... 19

2.4 SERVICE DELIVERY .................................................................................................. 19

2.4.1 Factors affecting Service Delivery.......................................................................... 19

2.4.2 Indicators of quality Service Delivery .................................................................... 21

2.5 RELATIONSHIP BETWEEN PROCUREMENT PLANNING AND SERVICE

DELIVERY............................................................................................................................... 23

3.0 CONCEPTUAL FRAMEWORK ...................................................................................... 24

3.1 INTRODUCTION .......................................................................................................... 24

3.2 PROCUREMENT PLANNING AND SERVICE DELIVERY .................................... 25

3.2.1 Financial Resource Availability .............................................................................. 25

3.2.2 Service Delivery Standard setting ........................................................................... 26

3.2.3 Monitoring and Evaluation of service delivered ..................................................... 27

3.2.4 PROCUREMENT POLICY ................................................................................... 29

4.0 RESEARCH METHODOLOGY AND DESIGN ............................................................. 30

4.1.1 Introduction ............................................................................................................. 30

4.1.2 Research design ...................................................................................................... 30

4.1.3 Sampling Design ..................................................................................................... 30

4.1.4 Study Population and Sample Size ......................................................................... 30

4.2 DATA SOURCES AND TYPES ................................................................................... 31

4.2.1 Secondary Data ....................................................................................................... 31

4.2.2 Primary Data ........................................................................................................... 32

4.3 METHODS OF DATA COLLECTION ........................................................................ 32

4.3.1 Questionnaire Method ............................................................................................. 32

4.3.2 Interviews ................................................................................................................ 33

4.3.3 Measurement of Variables ...................................................................................... 33

4.3.4 Limitations .............................................................................................................. 33

5.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF RESEARCH FINDINGS

35

5.1 Introduction .................................................................................................................... 35

5.2 Name of Organisation .................................................................................................... 35

5.3 Level of education of the respondents............................................................................ 35

5.4 Roles undertaken by different stakeholders during procurement planning .................... 37

5.5 Factors affecting Service Delivery ................................................................................. 43

5.6 To determine how procurement planning has impacted the shortages of drugs, vaccines

and surgical instruments and hence the provision of public health care................................... 46

5.6.1 Ndola Central Hospital ........................................................................................... 48

5.6.2 Kitwe Central Hospital ........................................................................................... 49

5.7 Relationship between Procurement Planning and Service Delivery .............................. 51

5.8 Hypothesis ...................................................................................................................... 52

6.0 SUMMERY OF FINDINGS CONCLUSIONS AND RECOMMENDATIONS ............. 54

6.1 Introduction .................................................................................................................... 54

6.2 Summary of Findings ..................................................................................................... 54

6.2.1 Role under taken by different stakeholders ............................................................ 54

6.2.2 Factors affecting provision of health care service in 3rd Level Hospital ................ 56

6.2.3 How Procurement Planning has impacted the shortages of drugs, vaccines and

surgical instruments and hence the provision of public health care ..................................... 57

6.3 Conclusion ...................................................................................................................... 57

6.4 Recommendations .......................................................................................................... 57

6.5 Suggested Further Research ........................................................................................... 58

7.0 REFERENCES .................................................................................................................. 59

APPENDIX 1 ……………………………………………………………………………………63

APPENDIX 2 ……………………………………………………………………………………73

5

CHAPTER ONE

1.0 INTRODUCTION

Zambia recognises health as one of the priority sectors that contribute to the well-being of the

nation and, therefore, remains committed to providing quality health services to all its citizens.

Recognizing that a healthy population is critical to improved production and productivity, Zambia

will continue investing in the health sector, in order to ensure sustainability of the nation’s human

capital base, required for sustainable economic growth (Ministry of Health Action Plan, 2011-

2015). In providing quality health services, efficient procurement planning is needed. Successful

completion of a Procurement Plan requires action from multiple agencies and departments within

an organisation, ministry or the wider public sector depending on the type and nature of

procurement (Guyana, 2010).

The regulations of the procurement of goods, works and services in the Zambian public sector is

done by the Zambia Public Procurement Authority (ZPPA). It has in place the Public Procurement

Act of 2008, which requires every public procuring entity to annually plan its procurement in a

rational manner and submit such plans to ZPPA. Government procurement activities for goods,

works and services are based on the principles of fair and open public sector procurement. This

research will therefore establish the effectiveness of the procurement planning and its impact on

the provision of health care service.

1.1 BACKGROUND

"Procurement" according to section 2 of the Public Procurement Act means acquisition by

purchase, rental, lease, hire purchase, license, tenancy, franchise, or any or any combination

thereof (Government of Zambia, 2008). In Zambia, procurement planning is part and parcel and

already of the customary planning and already familiar in local governments. It is a requirement

by the Law of Zambia to Plan Procurement. The mandate for planning in Zambia is governed by

Section 42 of the Zambia Public Procurement Act of 2008, which stipulates that a procuring entity

is required to annually plan its procurement in a rational manner (Government of Zambia, 2008).

Therefore every Public Procuring enterprise is supposes to plan for procurement and submit such

plans to the Zambia Public Procurement Authority (ZPPA). The Zambia Public Procurement

Authority (ZPPA) defines procurement planning as the process of identifying and consolidating

6

requirements and determining the timeframes for their procurement with the aim of having them

as and when they are required. Procurement planning is undertaken as part of the program or

service planning process. The public sector is expected to use procurement planning as an

opportunity to evaluate or review the entire procurement process so that sound judgments and good

decision making will facilitate the success of the overall project implementation in the procurement

of goods, works and services (Guyana, 2010).Thus a mistake in procurement planning may

culminate into diverse implications in the organization that may deter its progress.

Since 1992, the Zambian Government has been implementing significant health sector reforms,

aimed at strengthening health service delivery in order to improve the health status of Zambians.

The reforms have yielded significant results in form of strengthened health systems, improved

access to health care and improved health outcomes as reported in the 2007 Zambia Demographic

Health Survey. However, these achievements are yet to put Zambia on course to achieve the

Millennium Development Goals (MDGs) by 2015. The country has remained under significant

pressure to further improve the health status of Zambians. Honorable Dr. Joseph Kasonde, MP

Minister of Health (Ministry of Health Action Plan, 2011-2015)

During the period from 2006 to 2010, the main objective for the health sector was to “ensure equity

of access to cost-effective, quality health services, as close to the family as possible”. However,

even though significant progress was reported, service delivery also continued to experience major

constraints and challenges, which negatively affected performance (Ministry of Health Action

Plan, 2011-2015). The public service is the main implementing machinery for national

development programs and specifically, the delivery of public services. It is therefore very

important for the public service to monitor and evaluate the delivery of public services and to

obtain feedback from service recipients, regarding their efficiency and effectiveness. The Local

Government Association of Zambia (LGAZ) has been institutionalized as a key instrument to that

effect. It gathers local authorities from all 72 districts of Zambia. Setting forth a series of

differentiated tools, it promotes the adoption of successful practices and encourages local

authorities to come up with innovative ideas to improve their service delivery (Local Government

Association of Zambia, 2009-2012).

Strengthening service delivery is a key strategy to achieve the Millennium Development Goals.

This includes the delivery of interventions to reduce child mortality, maternal mortality, and the

7

burden to HIV/AIDS, tuberculosis and malaria1. Service provision or delivery is an immediate

output of the inputs into the health system, such as health workforce, procurement and supplies

and finances. Increased inputs should lead to improved service delivery and enhanced access to

services. Ensuring availability and access to health services is one of the main functions of a health

system. Such services should meet a minimum quality standard (World Health Organisation, 2008)

1.1.1 About 3rd Level Hospitals

Third level hospitals in Zambia include Kitwe Central Hospital, Ndola Central Hospital and

University Teaching Hospital. These hospital are based in Kitwe, Ndola and Lusaka respectively.

These hospitals are the 3 top largest in Zambia and they procure drugs, vaccines and surgical

instrument to suffice those received from the medical stores and their core business of the hospitals

is the provision of public health care which happens to be their major service delivery. The

departments that they have in common include:

Department of Internal Medicine

Department of Obstetrics and Gynecology

Department of Pediatrics

Department of Surgery (under which Anesthesia also falls)

Ophthalmology Department

Dental Department

ENT department

Radiology department

Pathology department

Pharmacy department

Physiotherapy department

Blood Bank

1.1.2 Services Provided in 3rd Level Hospitals

The primary objective of Third Level Hospitals is to provide comprehensive quality health care.

These Hospitals provides the following services;

Obstetrics and Gynecology, Surgery, Pediatrics, Internal medicines, Orthopedics, Dental,

Ophthalmology, Ear, Nose and Throat, Psychiatry and Physiotherapy. These services are

8

supported by the Pathology, Laboratory, Anesthesia, Nutrition, Pharmacy and Radiology in the

provision of clinical care. The clinical areas are facilitated by the strong support service in the

areas of Purchasing and Supplies, Engineering, Laundry, Catering, Mortuary services and

Cleaning.

1.2 PROBLEM STATEMENT

Since 1992, the Zambian Government has been implementing significant health sector reforms

aimed at strengthening health service delivery in order to improve the health status of Zambians.

The public health care service however remains inadequate. Zambia is a country of extreme

poverty, and very poor health care, save for those who can afford private medicine (Pallot, 2014).

Many expats requiring serious medical attention will find themselves evacuated to another country,

such as South Africa, where there are better medical facilities (Expat Arivals). 3rd Level Hospital

in Zambia are experiencing erratic supply of drugs and medical supplies (The The Tropical Health

and Education Trust in Conjunction with the Ministry of Health, 2007). There is a greater need of

an improved public health service in public health facilities in Zambia.

Kitwe Central Hospital and Ndola Central Hospital are among the 3rd Level hospitals that have

been experiencing shortages of the drugs and vaccines, surgical instruments like sutures and other

lab supplies, regularly. Procurement Planning has been implemented both at Kitwe Central

Hospital and Ndola Central Hospital in efforts of trying to mitigate these shortages. The health

sector is particularly an important area of public procurement system due to the main reason that

health care service impacts directly on the population of the country.

1.3 PURPOSE OF THE STUDY

The importance of procurement planning in the service industry cannot be over emphasized.

Effective and efficient procurement planning plays an important role in ensuring satisfactory

service provision. It enables an organisation to manage its resources in the most efficient manner

in order to meet the demands of its beneficiaries. The study aimed at evaluating the impact of

procurement planning on provision of public health care in 3rd Level Hospitals.

9

1.4 RESEARCH OBJECTIVES

1. To examine the roles undertaken by different stakeholders during procurement planning

2. To establish factors affecting service delivery

3. To determine how procurement planning has impacted the shortages of drugs, vaccines and

surgical instruments and hence the provision of public health care

1.5 RESEARCH QUESTIONS

1. What are the roles undertaken by different stakeholders during procurement planning?

2. What factors are affecting service delivery?

3. How has procurement planning impacted the shortages of drugs, vaccines and surgical

instruments and hence the provision of public health care?

1.6 HYPOTHESIS

Ho: There is no relationship between Procurement Planning and Service delivery

Ha: There is a relationship between Procurement Planning and Service delivery

1.7 SCOPE OF THE STUDY

The proportion of the research covered the conceptual scope and the geographical scope.

1.7.1 Conceptual Scope

The study will focus on procurement planning which involves the roles undertaken during the

procurement planning process, factors affecting public health service delivery and the impact of

procurement planning on the public health service. The researcher has acknowledged that there

are many factors affecting the delivery or provision of quality health care service. This study

however endeavors to evaluate the impact of procurement planning on the provision of public

health care.

1.7.2 Geographical Scope

This research will be carried out at Kitwe Central Hospital (KCH) and Ndola Central Hospital

(NCH). This is because University Teaching Hospital (UTH) is required to make procurement

10

plans and has in the same manner implemented the Procurement plan and experience lower rate of

shortages as compared from the two.

1.8 SIGNIFICANCE

Firstly, the findings of this study will specifically help KCH and NCH understand the extent to

which the implementation of the procurement plan has impacted the provision of public health

care in the organisation and if at all they will need to revisit their procurement planning if they are

to improve on service delivery.

Secondly, it will help policy makers to formulate ways on how to improve the public health service

delivery in the economy. The study will also act as a basis for further research to other researchers

in field of Public health Service Delivery and procurement planning in Zambia.

Lastly, the research is important to the researcher as it is a requirement for the completion of the

degree in Purchasing and Supply. Additionally, the researcher will acquire research skills such as

developing questionnaires, conducting interviews, gathering and analyzing the required

information.

11

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

Different scholars have written differently about procurement planning and how it impact service

delivery. This chapter shows what other scholars have written about the same. It looks at the

literature review and the conceptual framework that support this study.

Literature review looks at the portions of studies that other authors have made on the procurement

planning and its impact on service delivery in an organisation. The theoretical framework includes

definitions and descriptions of the key or pivotal terms and concepts which are;

1. Procurement Planning

2. Service delivery

2.2 PROCUREMENT PLANNING

Planning both as a concept and function is probably one of the extensively talked about concepts

in the management literature. It is a function that forms the foundation for the rest of management

functions. When planning is properly conceived and implemented, it can serve as an important

mechanism for extracting, distributing and allocating resources (James, 2004). Planning generally

enhances the gathering, evaluating and interpreting of essential data and information in order to

produce knowledge relevant to good policy making. In many African countries, planning has not

arrived at the level of achieving the aims described because of problems related to human and

technical capacities and financial resources. .In management literature planning implies that

managers think through their goals and actions in advance and that their actions are based on some

method, plan or logic rather than on a hunch (Stoner, Freeman& Gilbert, 1995). The planning

function encompasses defining an organization’s goals, establishing an overall strategy for

achieving those goals, and developing a comprehensive hierarchy of plans to integrate and

coordinate the activities (Robbins, 2001).Procurement is a process of acquiring goods, works and

services covering both acquisitions from third parties and from in-house providers (Lysons &

Farington, 2012). Procurement planning is the process of assessing and projecting the procurement

needs of the organization, program or project in order to determine its procurement strategy.

12

Developing a strategic approach to procurement through appropriate procurement planning is a

key element for successful acquisition of goods, services and civil works necessary for timely

implementation of projects or operations (Sustainable Procurement Practice Group, 2014).

(Economic Commission of Africa, 2003) Defines procurement planning as the purchasing function

through which organization obtain products and services from external suppliers. Being a

requirement by the laws of Zambia, a public procuring entity shall annually plan its procurement

and submit such plans to ZPPA.

A good procurement plan will go one step further by describing the process you will go through

to appoint those suppliers contractually. Whether you are embarking on a project procurement or

organizational procurement planning exercise, the steps will be the same. First, define the items

you need to procure. Next, define the process for acquiring those items. And finally, schedule the

timeframes for delivery. Procurement is thus one part of the commissioning process. It refers to a

specific method of purchasing services which involves tendering for a contract. Sometimes it is

more appropriate for a public body to fund a service through the provision of a grant, but then it

will have less control over the precise outcomes to be delivered (Wogube, June 2011).

Below are; the steps in preparing a procurement plan, considerations in procurement planning, the

importance, and the template of the procurement plan as highlighted by the Zambia Public

Procurement Authority (ZPPA).

2.2.1 Steps in preparing a procurement plan according to ZPPA

1. Identify requirements (good, services, works)

2. Determine quantities and estimate costs

3. Determine when the requirements shall be needed for use

4. Identify the relationship between and among requirements

5. Consolidate similar requirements

6. Identify appropriate procurement method and process

7. Schedule lead times for each package

8. Prepare an implementation table identifying key dates for each process

13

2.2.2 Considerations in procurement planning (ZPPA)

1. Annual planning should be integrated with applicable budget processes and based on

indicative and approved budgets.

2. Procuring entities should revise and update their procurement plans, as appropriate during

the course of each year.

2.2.3 The importance of procurement planning

1. It is a prerequisite for a successful project implementation

2. It highlights the steps involved in the procurement process

3. It enhances transparency and predictability

4. It provides a basis for monitoring

5. It improves compliance with agreed procurement procedures

6. It facilitate efficient and effective treasury management. It spreads out annual procurement

activities consistent with the needs and resources available

7. It is a key function in public institutions in helping to achieve social and economic

objectives

8. It helps to anticipate the risk associated with the procurement and how to mitigate them

Procurement planning is the primary function that sets the stage for subsequent procurement

activities. It ‘fuels and then ignites’ the engine of the procurement process. Therefore, a mistake

in procurement planning therefore has wide implications for organisation and on its attainment of

goals. Public procurement is different from private procurement because in public procurement,

the economic results must be measured against more complex and long term criteria and it must

be transacted with other considerations-accountability, non-discrimination among potential

suppliers and respect for international obligations- in mind besides the economy (Odhiambo &

Kamau, 2003).The basic tenet of public procurement is to acquire the right item at the right time,

and at the right price, to support government actions.

14

2.2.4 Procurement plan Template

Descr

iption

Qua

ntity

Am

oun

t

Procur

ement

metho

d

No

Obje

ction

Bid

invit

ation

date

Bid

closing/

opening

Subm

ission

of

evalu

ation

report

Author

isation

Awar

d

notifi

cation

Con

tract

sign

ing

Deli

very

date

1 Pla

n

Ac

tua

l

2 Pla

n

Ac

tua

l

Table 2.1: Procurement Plan template

Source: Author

15

2.3 ROLE UNDERTAKEN BY THE PROCURERING ENTITY IN

PROCUREMENT PLANNING

There is now very limited doubt among policy makers, managers, professionals and academicians

about the role of public procurement planning in facilitating government operations in both

developed and developing countries (Goh, et al., 1999). Public procurement is increasingly

recognized as a profession that plays a significant role in the successful management of public

resources. According to Public Procurement Regulations Act, 2011, Regulation 26-27, the

following should be undertaken during Public Procurement Planning in the government of Zambia:

2.3.1 Annual procurement planning and publication

Public Procurement Regulations Act, Regulation 26 (Government of Zambia, 2011)

(1) A Procurement Unit shall, in consultation with a user department, prepare a procurement

plan for the procuring entity, for each financial year, containing the information required

under Regulation 27.

(2) A procuring entity shall integrate its annual procurement planning with the budget

processes and shall base the plan on the indicative or approved budget of the procuring

entity, as appropriate.

(3) A procuring entity shall revise or update its procurement plan, as appropriate, after the

approval of the budget for that financial year or during the course of each financial year.

(4) A procuring entity shall publish, in at least one daily newspaper of general circulation in

Zambia or post on the procuring entity’s website and on the procuring entity’s notice board,

certain information relating to the procurement plan, such as the following:

(a) source of the funding; and

(b) expected publication and execution dates.

2.3.2 Defining procurement requirements for an entity

Every procuring entity is required to prepare annual procurement plans outlining the procurement

activities for that year. According to Public Procurement Regulation 27, an annual procurement

plan for each procuring entity shall include:

16

(a) a detailed breakdown of the goods, works and services required, the procuring agency’s

priorities and an indication as to whether it will be necessary to carry out a prior study for

tenders of works;

(b) a schedule of the delivery, implementation or completion dates for all goods, works and

services required;

(c) an indication of which items can be aggregated for procurement as a single package or for

procurement through any applicable arrangements for common use items;

(d) an estimate of the value of each package of goods, works and services required and details

of the budget available and sources of funding;

(e) an indication of the rules applicable to the procurement, where any procurement is not

subject to these Regulations;

(f) an indication of the anticipated procurement method for each procurement requirement,

including any need for prequalification, and the anticipated time for the complete

procurement cycle, taking into account the applicable approval requirements;

(g) an indication of whether the goods, works or services will be procured by the Procurement

Unit, any special agency designated to procure common use items or any other body;

(h) an indication of the resources available for managing the procurement workload;

(i) an induction whether there will be local or regional preferences for certain types of tender;

(j) a specification of whether there is a requirement for non-objection for an award of contract;

(k) a specification of planning schedules under which different processes for tendering shall

be undertaken;

(l) a specification of schedules for the execution of contracts; and

(m) the details of any committed or planned procurement expenditure under existing multiyear

contracts.

2.3.3 Aggregation of requirements

According to Regulation 28 of the Public Procurement Regulations Act, A procuring entity shall

aggregate procurement requirements, where appropriate, in order to achieve economies of scale

and shall in deciding where aggregation is appropriate, consider all relevant factors, including:

(a) which items are of a similar nature and likely to attract the same bidders;

17

(b) which items shall be ready for bidding at the same time and when delivery, implementation

or completion is required;

(c) the optimum size and type of contract to attract the greatest and most responsive

competition, taking into account the market structure for the items required;

(d) the need to apply any applicable measures to promote the participation of national suppliers

or other target groups;

(e) which items will be subject to the same bidding requirements and conditions of contract;

and

(f) the potential to realise savings in time, transaction costs or facilitate contracts management

by the procuring entity.

2.3.4 Dividing requirements into lots

Regulation 29 of the Public Procurement Regulations Act of 2011 stipulates that:

1. Notwithstanding the prohibition on disaggregation of procurement requirements, a

procuring entity may divide a procurement requirement, which could be procured as a

single contract, into a package, consisting of several lots which are to be tendered together,

where it is anticipated that the award of several separate contracts may result in the best

overall value for the procuring entity.

2. A procurement entity may divide a requirement into a package of separate lots where it is

likely to increase the number of responsive bids by enabling the participation of:

(a) bidders who are able to bid for some, but not all, types of item; or

(b) small suppliers who would not be qualified to bid for the complete package as a single

contract.

3. A procuring entity shall not divide requirement into lots:

(a) for the sole purpose of avoiding thresholds or levels of authority;

(b) where the award of several separate contracts would create problems of compatibility or

interchangeability between items purchased as separate lots;

(c) where the award of several separate contracts would invalidate or otherwise restrict any

supplier’s warranty or liability; or

(d) where the award of several separate contracts would increase the costs of servicing

maintenance or similar requirements.

18

4. Where a procuring entity divides a requirement into lots, which may result in separate

contracts, the selection of the procurement method shall be determined by the estimated

total value of all the lots.

5. Where a procuring entity divides a requirement which could be procured as a single

contract into lots, the procuring entity shall:

(a) permit bidders to bid for a single lot, any combination of lots or all lots; and

(b) demonstrate, prior to contract award, that the recommended contract award or combination

of contract awards offers the best overall value for the procuring entity.

2.3.5 Choosing of procurement method

Regulation 37 of the Public Procurement Regulations Act of 2011 stipulates that:

1. A procuring entity shall select the most appropriate method of procurement for each

requirement, as part of the procurement planning process.

2. The choice of procurement method shall take into account:

(a) the estimated value of the procurement in accordance with the thresholds for that kind of

procurement as specified in the Second Schedule;

(b) the potential sources for the procurement, in accordance with these Regulations;

(c) the nature of the goods, works or services required; and

(d) the circumstances surrounding the procurement, such as the existence of an emergency

need.

3. A procuring entity shall clearly state in the procurement record, the reasons for the selection

of a procurement method other than open bidding or open selection.

4. A procuring entity shall obtain the prior authorisation of the approvals authority, for the

use of:

(a) limited bidding or limited selection; or

(b) direct bidding, except where the method is used on grounds of low value, in accordance

with these Regulations.

2.3.6 Emergency procurement

Where an emergency situation affects the choice of procurement method, the procuring entity shall

not automatically exclude competitive methods of procurement but shall obtain competition to the

19

maximum extent practical in the circumstances. Where the procuring entity uses limited bidding,

limited selection or direct bidding on grounds of an emergency situation, the procuring entity shall

limit the procurement to the quantity needed to deal with the emergency. This is in accordance

with regulation 39 of the Public Procurement Regulation Act of 2011.

2.3.7 Selection of bid submission method

A procuring entity shall select the most appropriate bid submission method for each requirement,

as part of the procurement planning process. A selection of a bid submission method shall take

into account the evaluation methodology to be used and the circumstances of the procurement

requirement in accordance with regulation 41 of the Public Procurement Regulations Act of 2011.

2.4 SERVICE DELIVERY

Shaw defines a service as a deed performed by one person for another (Shaw, 1990). He further

points out that a customer cannot “keep” a service after it has been provided. A service is rather

experienced used or consumed. As far as the Local Government Act, the constitution and any other

statutes that are studied, there is no definition of the phrase (service delivery) either deliberately

or ignorantly (Oboth, 2001).The same situation applies to Zambia. However he said, Service is a

system or arrangement that supplies public needs. Whereas delivery is periodical performance of

a service. Therefore service delivery is a system or arrangement of periodical performance of

supplying public needs. Helmsing in his study defines service delivery as a deliberate obligatory

decision by the elected or appointed officials to serve or deliver goods and services to the recipients

(Helmsing. A, 1995). Heskett (1987) defines service delivery as an attitudinal or dispositional

sense, referring to the internationalization of even service values and norms.

2.4.1 Factors affecting Service Delivery

2.4.1.1 Corruption

Corruption can as well be called perversion of integrity. Corruption is the misuse of public power

(by elected politician or appointed civil servant) for private gain (Corruptie.Org).Public

procurement, at the local government level, is believed to be one of the principle areas where

corruption in in Zambia takes place the most. Corruption is disastrous to the sound functioning of

any government department. Corruption has been an intractable problem in many developing

20

countries; especially where it has become systematic to the point where many in government have

a stake. It diverts decision-making and the provision of services from those who need them to those

who can afford them (Langseth, et al, 1997). Corruption has been rampant among the senior civil

bureaucrats to whom the public funds meant for developmental purposes are entrusted. Generally,

wide-scale embezzlement by officials of the grassroots has made the needed development of the

grassroots a tall dream and has rendered them financially incapable to discharge their

constitutionally assigned responsibilities hence compromising service delivery (Lawal, 2000).

2.4.1.2 Lack of Enough Finance

Despite the increase in the total amount of funds available to local government in Uganda, its

economic and financial profile is still poor as compared to the development program it is expected

to carry out. This situation is not unconnected to the mismanagement and embezzlement of these

funds by the local councils (Bailey, et al., 1998)

Many local governments, however, are unable to deliver services to residents. He said this might

be because of lack of finances or lack of capacity to provide a good service at an affordable price.

So local governments should find other ways to ensure that the services are improved and reach to

the people most in need of them (Ahmed, et al., 2005).

2.4.1.3 The Availability and Shortage of the required skill

Skills deficit within local governments remains a major challenge. A significant number of local

governments do not have the managerial, administrative, financial and institutional capacity to

meet the rising needs of local people. This situation is exacerbated by the decline of municipal

professional and poor linkages between local government and tertiary education sector. As a result

these local governments cannot meet their required performance standards hence impacting

adversely on the delivery of services (Parasuraman, et al., 1996).

2.4.1.4 Misplaced Priority

Hard-earned and limited resources accrued to and raised by local government are always

mismanaged. Priorities are misplaced; projects are done not according to or as demanded by the

people but regrettably in tune with the selfish end and aggrandizement of the political leadership

in collaboration with the senior bureaucrats at the local government level of administration (Johan,

2006)

21

2.4.1.5 General Indiscipline

Indiscipline is rampantly perceived and well pronounced among the workers in local government.

They further said that senior officers who travel to their families away from their offices on Friday

return very late the following Monday or may decide to stay back till Tuesday; and the junior

members of staff who directly or indirectly observe this more often than not are in the habit of

playing truant with their jobs. Little or no commitment to duty has become a rule rather than an

exception (Hernon & Whitman, 2001).

2.4.1.6 Poor Infrastructure

The provision of better infrastructures has lagged behind over the past years in developing

countries (Wogube, June 2011). Zambia is one of the developing countries experiencing poor

infrastructure as can be evidenced from poor roads inadequate water and electricity supply (load

shedding) and hence Zambia still stands in need of better infrastructures.

2.4.1.7 Risk of Integrity

At every stage of public procurement, there are risks of integrity. During the pre-bidding period;

starting from needs assessment, common risks include lack of adequate needs assessment,

planning and budgeting of public procurement, requirements that are not adequately or objectively

defined, an inadequate or irregular choice of the procedure and a timeframe for the preparation of

the bid that is insufficient or not consistently applied across bidders (Organisation for Economic

co-operation and development, 2007). All these concern the function of procurement planning.

Should the organisation’s procurement system fail to manage these risks, accountability and

eventual service delivery is seriously threatened (Wogube, June 2011).

2.4.2 Indicators of quality Service Delivery

Indicators of service delivery according to (Parasuraman, et al., 1996)include reliability,

Timeliness, conformance, completeness, safety, responsiveness, accessibility, and empathy as

discussed below:

22

2.4.2.1 Reliability

This is the probability of a service failing within a specified time period. Among the common

measures of reliability are the average time to first failure, the average time between failures, and

the failure rate per unit time (Balunywa, 2004).

2.4.2.2 Timeliness

Services which are delivered in time are said to of good service and those that are not delivered in

time are said to have poor service (Wogube, June 2011).

2.4.2.3 Conformance

This is the degree to which a service design and operating characteristics meet established

standards. Good service is therefore equated with operation within a tolerance degree (Balunywa,

2004). The question here is that can the service achieve the core purpose for which it is intended?

If the service performs as expected and intended it will be considered good service offered

(Wogube, June 2011).

2.4.2.4 Safety

How safe is it to use the service? Does it protect users before, during and after use? Certain services

like roads may be a problem when being used. Some services are also not very safe when being used

as they easily cause harm to the users. Services that are not safe to use are considered poor services

and those that are safe to use are looked at as expected services (Wogube, June 2011).

2.4.2.5 Responsiveness

This is the willingness to provide prompt service and to help customers.

2.4.2.6 Accessibility

Services that are not accessible are regarded as being of poor quality and those that can be easily

accessible are regarded as high quality services (Wogube, June 2011).

2.4.2.7 Empathy

This entails easy access, communication and understanding the customer. It also includes caring

and giving individualized attention to customers.

23

2.5 RELATIONSHIP BETWEEN PROCUREMENT PLANNING

AND SERVICE DELIVERY

According to Johan, he who fails to plan for service delivery, plans to fail delivering services to

the public. And if it cannot be measured, it cannot be improved. If we only plan to comply with

regulations, we are not managers, we are robots. What we plan we must implement. What we

implement, we must monitor. We should not be afraid to ask the customer (citizens). They really

do know best what they need and what they get. It is not always the same thing (Johan, 2006).

Basheka argues that procurement planning is one of the primary functions of procurement with a

potential to contribute to the success of local government operations and improved service

delivery. It is a function that sets in motion the entire acquisition/procurement process of acquiring

services in local governments (Basheka, 2004).

procurement planning drives different expected results which are different from business as usual

such as: reduction in the number of overall contract awards, understanding and managing total cost

of ownership, more purchasing options (lease vs. buy), data-driven decision making, improved

risk mitigation prior to award, more identification of opportunities where suppliers can add value,

improved relationships with suppliers which leads to improved service delivery (Procurement

Policy Manual, 2009).

Wogube stressed out that Procurement planning sets in motion the entire procurement process of

acquiring services in local government, it also facilitates efficient and effective service delivery in

public sector organization (Wogube, June 2011).

Effective procurement planning is an important route towards securing the right service to be

delivered to the public, and also maximizing the level of service provision which can be achieved

within the local Supporting People. A procurement plan helps Procuring Entities to achieve

maximum value for expenditures on services to be delivered and enables the entities to identify

and address all relevant issues pertaining to a particular procurement before they publicize their

procurement notices to potential suppliers of goods, works and services (Mawhood, 1983).

24

CHAPTER THREE

3.0 CONCEPTUAL FRAMEWORK

3.1 INTRODUCTION

The conceptual framework explains the relationship between the dependent and the independent

variables in the study. In this study, the dependent variable is improved quality of service delivered.

It is considered dependent since an improvement in the quality of a service delivered depends on

the outcomes from several factors. Several single factors acting individually have a collective

impact on the improved quality of a service delivered in a service organisation. The independent

variables in this case is the successful implementation of the procurement plan which is as a result

of resource availability, Service delivery standard settings, Monitoring and evaluation of service

delivered and an organisations procurement policy.

H

Figure 3.1: Research framework

Source: Author

PROCUREMENT

PLANNING SUCCESS

Financial

Resource

availability

Service delivery

standard setting

Monitoring and

evaluation of

service delivered

Procurement

policy

IMPROVED QUALITY

OF SERVICE

DELIVERED

25

3.2 PROCUREMENT PLANNING AND SERVICE DELIVERY

Successful procurement planning which has been done effectively and successfully

implementation improves the quality of service delivered as seen by Johan who said “he who fails

to plan for service delivery, plans to fail delivering services to the public” (Johan, 2006), Basheka

who argued that “procurement planning is one of the primary functions of procurement with a

potential to contribute to the success of local government operations and improved service

delivery” (Basheka, 2004), and Mawhood who further added that “effective procurement planning

is an important route towards securing the right service to be delivered to the public, and also

maximizing the level of service provision which can be achieved within the local Supporting

People” (Mawhood, 1983).

The following according to (Chepkoech, 2013) need to be considered for the successful

implementation of the procurement plan.

3.2.1 Financial Resource Availability

When planning for procurement, it is important to look at the resource capability of a firm

especially financial resources. Financial resource involves the money available to a business for

spending in the form of cash, liquid securities and credit lines (Business Dictionary, 2014). An

organisation needs to know the maximum amount of expenditure they needs to spend on a project

in order to be able to operate efficiently and sufficiently well to promote success.

Why is managing Financial Resources key to your organisation

Managing financial resources is about getting the most from the resources you have available. It

involves implementing resource management procedures and controls and can include managing

costs and maximizing opportunities (Funding Central, 2010).

Ideas and intentions can often outweigh the availability of resources within an organisation.

Reviewing your “wish list” against financial and strategic plans will enable your organisation

to:

identify what financial resources are available now and required in the future

prioritize these resources against objectives and goals

implement evaluation procedures to ensure resources are maximized

26

plan for potential changes that may lay ahead; e.g. change of staff, access to

funding, beneficiary need, organisational growth

This process will ensure that strategic goals and budgets are realistic and achievable whilst

maintaining some flexibility. As with any process, this should involve a range of people in your

organisation. A conflict often exists between those responsible for carrying out the charitable

mission and those responsible for ensuring the financial stability of the organisation (Funding

Central, 2010).

3.2.2 Service Delivery Standard setting

How to set Service Standards

Service standards should be client driven and reflect what the client wants, but also what the

organization can currently afford. Standards are a way of managing expectations. They tell your

clients what you can provide and they can expect. Service satisfaction is related to expectations.

Managing expectations well is an important part of service improvement (Treasury Board of

Canada Secretariat, 2002).

It is important as an organisation to look at the standards in other similar operations that have high

levels of client satisfaction. What is the 'industry standard'? Discuss these with your staff, to find

out what it would take to meet them. Review what level of service you are now providing.

Determine what standard you can achieve now, and what standards you will strive for in the longer

term (Treasury Board of Canada Secretariat, 2002).

Steps to take

The steps you take will vary according to your structure and organizational culture. But here are

eleven steps that offer guidance according to (Treasury Board of Canada Secretariat, 2002).

Throughout, ensure that staff are actively involved in the process and support the targets that are

set.

Review the data you gathered about client priorities.

Divide the priorities into two areas: access (including the ability to find the service); and

service performance (including the main drivers of satisfaction).

27

Use the Service Improvement Team or subgroups to deal with each area. Decide what

standard of service is appropriate in each area.

Present the management committee of the organization with a complete list of proposed

service standards and satisfaction targets.

Reach organization-wide agreement on service standards; select the most important few to

focus on while keeping in mind the different service delivery channels.

Ensure the government-wide target of a minimum 10% improvement in client/citizen

satisfaction over five years is translated into specific annual targets for each service or

program area and that these targets are reflected in accountability agreements.

Ensure that a strong service culture is being developed to complement client satisfaction

target setting. This will help make the targets achievable if the organizational culture

supports and promotes the delivery of good service.

Continue to regularly measure client expectations, priorities and satisfaction and anchor

your planning process in this data.

Ensure a client complaint redress mechanism is in place.

Make sure that for any satisfaction target or service standard the results can be (and are)

measured, benchmarked, monitored, reported and used to guide management decisions.

Ensure the results-based service improvement planning and implementation process is

integrated with the annual business planning process, for ongoing monitoring and updating

of targets. Standards and targets are not static, but dynamic. Monitoring and updating for

continuous improvement is a never-ending process.

Establishing priorities for improvement, and setting standards and targets, further refines where

the organization wants to be. These should be woven into the fabric of the organization's planning

process (including the Report on Plans and Priorities), and even deserving of a special

improvement plan specific to this initiative (Treasury Board of Canada Secretariat, 2002).

3.2.3 Monitoring and Evaluation of service delivered

Monitoring

Monitoring is the systematic collection and analysis of information as a project progresses. It is

aimed at improving the efficiency and effectiveness of a project or organisation. It is based on

28

targets set and activities planned during the planning phases of work. It helps to keep the work on

track, and can let management know when things are going wrong. If done properly, it is an

invaluable tool for good management, and it provides a useful base for evaluation. It enables you

to determine whether the resources you have available are sufficient and are being well used,

whether the capacity you have is sufficient and appropriate, and whether you are doing what you

planned to do (Civicus, 2014).

Evaluation

Evaluation is the comparison of actual project impacts against the agreed strategic plans. It looks

at what you set out to do, at what you have accomplished, and how you accomplished it. It can be

formative (taking place during the life of a project or organisation, with the intention of improving

the strategy or way of functioning of the project or organisation). It can also be summative

(drawing learnings from a completed project or an organisation that I no longer functioning)

(Civicus, 2014).

What monitoring and evaluation have in common is that they are geared towards learning from

what you are doing and how you are doing it, by focusing on:

1. Efficiency

This tells you that the input into the work is appropriate in terms of the output. This could be input

in terms of money, time, staff, equipment and so on. When you run a project and are concerned

about its replicability or about going to scale, then it is very important to get the efficiency element

right (Civicus, 2014).

2. Effectiveness

This is a measure of the extent to which a development program or project achieves the specific

objectives it set. If, for example, we set out to improve the qualifications of all the high school

teachers in a particular area, did we succeed? (Civicus, 2014).

3. Impact

This tells you whether or not what you did made a difference to the problem situation you were

trying to address. In other words, was your strategy useful? Did ensuring that teachers were better

qualified improve the pass rate in the final year of school? Before you decide to get bigger, or to

29

replicate the project elsewhere, you need to be sure that what you are doing makes sense in terms

of the impact you want to achieve (Civicus, 2014).

From this it should be clear that monitoring and evaluation are best done when there has been

proper planning against which to assess progress and achievements.

3.2.4 PROCUREMENT POLICY

A procurement policy is simply the rules and regulations that are set in place to govern the process

of acquiring goods and services needed by an organization to function efficiently. The exact

process will seek to minimize expenses associated with the purchase of those goods and services

by using such strategies as volume purchasing, the establishment of a set roster of vendors, and

establishing reorder protocols that help to keep inventories low without jeopardizing the function

of the operation. Both small and large companies as well as non-profit organizations routinely

make use of some sort of procurement policy (WiseGeek, 2014).

30

CHAPTER FOUR

4.0 RESEARCH METHODOLOGY AND DESIGN

4.1.1 Introduction

The purpose of this chapter presents is to explain the research design and methodology that has

been followed to reach the conclusion of the research. It spells out the techniques and methods of

data sampling, collection, processing and analysis. The limitations and problems encountered

while carrying out the study were also highlighted.

Kitwe Central Hospital and Ndola Central Hospital was selected for the study of an Evaluation of

the Impact of Procurement Planning on Service delivery in 3rd Level Hospital

4.1.2 Research design

The research design that has been followed is of descriptive nature where I decided to collect

information and data using primary sources and secondary sources. A descriptive survey attempts

to describe or define a subject often by creating a profile of a group of problems, people or events

through the collection of data and tabulation of the frequencies on research variables or their

interaction as indicated.

4.1.3 Sampling Design

The sampling procedures used were stratified random sampling and purposive sampling where

respondents who conform to the purpose of the study were selected from different sections of

Kitwe and Ndola Central Hospital. This was done in order to select respondents with the required

information.

4.1.4 Study Population and Sample Size

A sample of 100 respondents out of the total of 180 of the study population were selected and

approached by the use of simple random sampling method and interviewed at different levels. 50

respondents were from Ndola Central Hospital and the other 50 respondents from Kitwe Central

Hospital. These included the Senior Medical Superintendent (SMS), the Purchasing and Supply

department, Accounts department, Service providers which included doctors and nurses,

31

beneficiaries of the service provided and the User departments which included Pharmacy, Surgical,

and laboratory.

Table 4.1: Showing number and category of respondents

Category of Respondents Study

Population

Sample size Percentage

(%)

Senior Medical Superintendent (CEO) 2 2 2

Purchasing and Supply Staff 9 6 6

Accounts staff 22 9 9

Budget Committee 5 3 3

Service providers 30 20 20

End users 62 34 34

Beneficiaries (residents) 50 26 26

Total 180 100 100

Source: Author

4.2 DATA SOURCES AND TYPES

The study used both Primary and Secondary Data. Primary data on the other hand was gathered in

the empirical part of this study using the aid of questionnaires and interviews prepared by the

researcher which included open-ended and closed-ended questions while secondary data were

collected from available published records such as textbooks, journals, magazines, manuals, and

the internet.

4.2.1 Secondary Data

Secondary data is the existing data that has already been collected by somebody else for a similar

or different purpose to answer the research questions. (Kervin, 1999)Stated that secondary data

32

include both quantitative and qualitative data and can applied in descriptive, exploratory and

explanatory research cited in (Saunders, 2007). Qualitative data involves words or text while

quantitative data involves numbers, statistics and financial and may often be presented in graphical

and tabular format.

Secondary data is easy to locate, less expensive and available. It provides comparative and

contextual data which may lead to unforeseen and new discoveries (Saunders, 2007). However, a

careful selection of this data will be considered as some data may not be related to the topic at

hand. The types of secondary data can be classified in the following categories:

The Paper-based data; this type of data includes books, journals, articles, periodicals,

indexes, directories, research reports, conference papers, annual reports, internal records

of organisations, newspapers and magazines

The Electronic bases; this type of secondary data on the other hand includes, using search

engine on the internet and electronic databases, videos and broadcasts.

4.2.2 Primary Data

Primary data collection method is a method of data collection which was used by the researcher

for the purpose of answering his or her research questions. In primary data collection the researcher

collects the data using different methods appropriate for the research in question. It is basically the

original sources of raw data without any interpretation, synthesis or analysis which represents a

position on a specific matter (Cooper & Schindler, 2008).

The benefit of using primary data collection is that the data is collected in a distinctive way in

order to meet the objectives of the research.

4.3 METHODS OF DATA COLLECTION

4.3.1 Questionnaire Method

The first draft of the questionnaire survey was compiled using the literature as guidance. It was

co-developed with one staff at Kitwe Central Hospital, Ndola Central Hospital and with the

guidance from my supervisor, and questions were altered in line with their comments to be more

accessible and understandable to the respondents directed to. Both Open and closed ended

33

questions were used. They were administered to 70 respondents. This helped to obtain the required

data. Only 42 questionnaires were answered by respondents and later collected by the researcher.

28 questionnaires included those that were not completed and also those that were not answered

at all. The others preferred interviewed to questionnaires.

4.3.2 Interviews

This is a primary data collection technique that is used to gain an understanding of the research

topic through reasons and people’s opinions, attitudes and behaviors. Interviews can be personal

that is on one- to- one basis or telephone (Saunders, 2007). They can be conducted at the place of

work or at an agreed location.

The interview type which was conducted in this research involved personal and face-to-face (one-

on-one) interviews with participants. These types of interviews were chosen because of their

advantages which include: good response rate, there is a serious approach from respondents hence

resulting in accurate information, can employ recording devices, the interviewer is always in

control and can help if there is a problem and there are possible in-depth questions (Tharenou,

2007).

The interviews were done with a Doctors, 2 Procurement personnel, the head of pharmacy

department, and 26 Beneficiaries of the service provided, amounting the total interviewed to 30.

The rest preferred questionnaires to interviews

4.3.3 Measurement of Variables

The study used a 5-point Likert scale to measure the variables which are procurement planning

and service delivery to come up with findings. This ranged from strongly agree to strongly disagree

(strongly agree, agree, not sure, disagree, and strongly disagree) and in some cases ranged from

very effective to not effective (very effective, effective, not sure, fair, not effective) and from very

good to very poor (very good, good, not sure, poor, very poor).

4.3.4 Limitations

The main concern or limitations that the researcher faced in conducting this research included

The unwillingness of certain respondents to receive questionnaires for this research.

Jubilee preparations prevented most people from attending to the questionnaires.

34

Insufficient time to individually meet or phone and interview certain doctors

Procurement personnel and doctors are usually busy, so appointments were made via e-

mail and phone calls.

35

CHAPTER FIVE

5.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF

RESEARCH FINDINGS

5.1 Introduction

This chapter includes the results (findings) from the study and analysis of those finding and their

discussions in relation to the objective of the study and the research questions. Of the 100

respondents who were administered questionnaires, 72 managed to respond to the questionnaires

and interviews the findings are presented in tables below.

5.2 Name of Organisation

The figure below represents the name of the organisation and the percentage of people in the

respective organisations. A majority were from Ndola Central Hospital with 56% (40/72) of

respondents who responded to questionnaires and interviews as opposed to Kitwe Central Hospital

with 44% (32/40). This shows that Ndola Central Hospital had a higher response rate.

Source: Author

5.3 Level of education of the respondents

Level of education is a very important parameter that can be used in determining the availability

of information or knowledge on any phenomenon in any society. It can be an indicator of how

informed society is. Therefore, the figures below shows how informed respondents are.

44%

56%

Figure 5.1: Showing preparation of a multi annual work plan based on the

approved budget

Kitwe Central Hospital

Ndola Central Hospital

36

Table 5.1: Showing respondent’s level of education

Source: Author

Source: Author

From the table above, the highest percentage that is 27.8% (20/72) of the respondents had not

attained any level of education and these were found among the beneficiaries of the services

provided, these were followed by 26.4% (19/72) with diplomas, 20.8% (15/72) who had attained

degrees, 19.4% (14/72) had certificates and lastly 5.6% (4/72) with masters these were mostly the

workers in Hospitals. This implies that the workers had acquired some skills to work in the

Hospital.

certificate diploma degree masters non above

Series1 14 19 15 4 20

0

5

10

15

20

25

FREQ

UEN

CY

Figure 5.2: Respodent's level of education

Frequency Percent Cumulative Percent

Certificate 14 19.4 19.4

Diploma 19 26.4 45.8

Degree 15 20.8 66.7

Masters 4 5.6 72.2

non above 20 27.8 100.0

Total 72 100.0

37

5.4 Roles undertaken by different stakeholders during procurement

planning

Table 5.2: Showing preparation of a multi annual work plan based on the approved budget


strongly disagree 0 0 0

disagree 0 0 0

not sure 7 15.2 15.2

agree 22 47.8 63.0

strongly agree 17 37.0 100.0

Total 46 100.0

Source: Author

Source: Author

From the table above, 47.8% and 37% of the respondents agreed and strongly agreed respectively

that each user department prepares a multi annual work plan based on the approved. 7% were

however not sure about this task. Basing on the highest percentage (47.8%) of respondents, the

study concludes that each user department is responsible for preparing its work plan so that it can

be integrated into the annual and multi-annual sector expenditure program to enhance financial

predictability, accounting and control over procurement budgets. This is also supported by

Regulation 26 of the Public Procurement Regulations Act, 2011.

stronglydisagree

disagree not sure agree strongly agree

Series1 0 0 7 22 17

0

5

10

15

20

25

FREQ

UEN

CY

Figure 5.3: Showing preparation of a multi annual work plan based on the

approved budget

38

Table 5.3: Showing each user department at the hospital defines its procurement requirements



disagree 7 15.2 15.2

not sure 0 0 0

agree 22 47.8 63.0


Total 46 100.0

Source: Author

Source: Author

Table 5.3 and figure 5.4 above indicates that 47.8% and 37% of the respondent agreed and strongly

agreed respectively that each user department at the hospital defines its procurement requirements,

15.2% of the respondents disagreed that each user department at the hospital defines its

procurement requirements. Basing on the highest percentage (47.8%) of the respondents the study

concludes that it is the role of each user department at the hospital to define its procurement

requirements so as to create a sound financial justification for procuring them.

srtonglydisagree

disagree not sure agree stronly agree

Series1 0 7 0 22 17

0

5

10

15

20

25

FREQ

UEN

CY

Figure 5.4: Showing each user department at the hospital defines its procurement requirements

39

Table 5.4: Showing the hospital procures drugs, vaccines and surgical instruments to suffice those

received from medical stores



disagree 0 0 0

not sure 1 2.2 2.2

agree 40 87.0 89.1


Total 46 100.0

Source: Author

Source: Author

Table 5.4 and figure 5.5 indicates that 87% and 10.9% of the respondent agreed and strongly

agreed respectively that the hospital procures drugs, vaccines and surgical instruments to suffice

those received from medical stores. 2.2% of the respondents, which amounted to only 1 respondent

was however not sure of this. It can be therefore be safely concluded that the hospital procures

drugs, vaccines and surgical instruments to suffice those received from medical stores.

stronglydisagree


Series1 0 0 1 40 5

05

1015202530354045

Fre

qu

ency

Figure 5.5: Showing the hospital procures drugs, vaccines and surgical instruments to suffice those received from medical

stores

40

Table 5.5: Showing Dividing of Requirements allocated to the Procuring unit



disagree 0 0 0

not sure 8 17.4 17.4

agree 38 82.6 100.0

strongly agree 0 0 0

Total 46 100.0

Source: Author

Source: Author

From table 5.5 and figure 5.6 above, the highest percentage of the respondents that is 82.6% agreed

that the procuring unit at the hospital is responsible for dividing requirements allocated to a single

procurement process into separate lots. These were followed by 17.4% who were not sure.

Management indicated that this is done where they anticipate that the award of several separate

contracts would result in the best overall value for the procuring department.

stronglydisagree


Series1 0 0 8 38 0

05

10152025303540

Freq

uen

cy

Figure 5.6: Showing Dividing of Requirements allocated to the

Procuring unit

41

Table 5.6: Showing Integration of the diverse decision and activities

Source: Author

Source: Author

From the table 5.6 and figure 5.7 above, 19.6% and 69.6% strongly agreed and agreed respectively

that a procuring unit brings about integration of the diverse decision and activities during

procurement planning. (Mawhood, 1983) stressed out that the integration of diverse decision helps

to come up with an acceptable decision for implementation.

stronglydisagree

disagree not sure agreestrongly

agree

Series1 0 5 0 32 9

0

5

10

15

20

25

30

35

Freq

uen

cy

Figure 5.7: Showing Integration of the diverse decision and

activities



disagree 5 10.9 10.9

not sure 0 0 0

agree 32 69.6 80.4


Total 46 100.0

42

Table 5.7: Showing the Accounting Officer’s role



disagree 0 0 0

not sure 5 10.9 10.9

agree 23 50.0 60.9


Total 46 100.0

Source: Author

Source: Author

Table 5.7 and figure 5.8 indicates that 50% and 39.1% of the respondents agreed and strongly

agreed respectively that the accounting officer ensures availability of sufficient funds to run the

plans and that it is budgeted for, only 10.9% were not sure. This therefore shows that the

accounting officer ensures that sufficient funds are budgeted for the planned framework contracts

every financial year, to cover the full cumulative cost of call off orders anticipated for each year

for a framework contract.

stronglydisagree


Series1 0 0 5 23 18

05

10152025

Freq

uen

cy

Figure 5.8: Showing the Accounting Officer’s role

43

5.5 Factors affecting Service Delivery

Table 5.8: Showing the provision of adequate health care service at the Hospital is hampered by

shortages of most drugs and vaccines, surgical instruments



disagree 0 0 0

not sure 0 0 0

agree 10 21.7 21.7


Total 46 100.0

Source: Author

Source: Author

From the above table and figure, 78.3% and 21.7% of the respondents agreed and strongly agreed

respectively that the provision of adequate health care service at the Hospital is hampered by

shortages of most drugs and vaccines, surgical instruments. Shortages in such items are the most

setbacks and disturbing factor in hospitals as their core business is provision of public health care.

strongly disagree disagree not sure agree strongly agree

Series1 0 0 0 10 36

0

10

20

30

40

Freq

uen

cy

Figure 5.9: Showing the provision of adequate health care service at the

Hospital is hampered by shortages of most drugs and vaccines, surgical

instruments

44

Table 5.9: Showing the provision of adequate health care services to people at these Hospitals is

hampered by inadequate finances to buy the all the required medical drugs

Source: Author

Source: Author

Table 5.9 and figure 5.10 indicates that the highest percentage that is 87% and 13% of the

respondents strongly agreed and agreed respectively that the 3rd Level Hospitals are unable to

deliver services to residents because of lack of finances to buy sufficient drugs, vaccines and

surgical instruments for adequate provision of the health care service. This implies that the funds

available are not enough to help in buying of services hence hampering the delivery of service.


Series1 0 0 0 6 40

0

10

20

30

40

50

Freq

uen

cy

Figure 5.10: Showing the provision of adequate health care services to people at these Hospital is hampered by inadequate finances to buy the all the required

medical drugs



disagree 0 0 0

not sure 0 0 0

agree 6 13.0 13.0


Total 46 100.0

45

Table 5.10: Showing untimely finances hampers the provision of adequate health care services to

people at these Hospitals because the required medical drugs are procured late

Source: Author

Source: Author

Table 5.10 and figure 5.11 indicates that the highest percentage that is 87% and 13% of the

respondents strongly agreed and agreed respectively that the 3rd Level Hospitals are unable to

deliver services to residents because of untimely finances from the government because required

drugs, vaccines and surgical instruments to suffice those received from medical stores are usually

procured late. This leads to shortages in this requirements that are essential for adequate provision

of service.


Series1 0 0 0 6 40

0

10

20

30

40

50

Freq

uen

cy

Figure 5.11: Showing untimely finances hampers the provision of adequate health care services to people at these Hospitals because the

required medical drugs are procured late



disagree 0 0 0

not sure 0 0 0

agree 6 13.0 13.0


Total 46 100.0

46

5.6 To determine how procurement planning has impacted the

shortages of drugs, vaccines and surgical instruments and hence

the provision of public health care

Procurement Planning has been implemented at both Ndola Central Hospital and Kitwe Central

Hospital and was implemented January 2012 and January 2014 respectively. These hospitals

usually receive drugs, vaccines and surgical instruments from medical stores in Lusaka which are

procured centrally by the Ministry of Health (MOH). However these drugs procured and

distributed by medical stores are not sufficiently enough to cater all the public hospitals and hence,

the government has put in a system of providing funding these institutions by means of the grant

to facilitate the operations of these institutions. The hospitals also generates some funds from the

high cost operations. Therefore, even before the procurement plan was introduced at these

hospitals, they procured some drugs, vaccines and surgical instruments as seen from the figure

below to suffice those that are received from medical stores in Lusaka.

Table 5.11: Showing the mode of procurement of drugs, vaccines and surgical instruments in 3rd

level hospitals before and after the implementation of the procurement plan

Source: Author

Source: Author

Centralised Decentralisedboth centralised and

decentralised

Series1 0 0 46

0

20

40

60

FREQ

UEN

CY

Figure 5.12: Showing the mode of procurement of drugs, vaccines and surgical

instruments in 3rd level hospitals before and after the implementation of the

procurement plan


Centralised 0 0 0

Decentralised 0 0 0

Both Centralised and Decentralised

46

100.0

100.0

Total 46 100

47

Despite this, these hospitals still face shortages. In trying to mitigate the shortages in these items

procured, the Procurement plan has been implemented in these organisations. Although this plan

has been implemented, the hospitals still faces shortages as seen from table 14 below.

Table 5.12: Showing the frequency of shortages before and after the implementation of the

procurement plan respective of Ndola Central Hospital and Kitwe Central Hospital.

statements LOW MEDIUM HIGH

KITWE CENTRAL HOSPITAL

Shortage frequency rate of drugs, vaccines and

surgical instruments before the implementation of

the procurement plan

Rate of

Response 0 10 22

Percentage 0 31.3% 68.8%


surgical instruments after the implementation of


Rate of

Response 0 10 22

Percentage 0 31.3% 68.8%

NDOLA CENTRAL HOSPITAL


surgical instruments before the implementation of


Rate of

Response 0 8 32

Percentage 0 20% 80%


surgical instruments after the implementation of


Rate of

Response 5 25 10

Percentage 12.5% 62.5% 25%

Source: Author

48

5.6.1 Ndola Central Hospital

From table 5.12 above, it can be seen that the frequency of shortages in drugs, vaccines and surgical

instruments at Ndola Central Hospital has reduced after the implementation of the procurement

plan. A large percentage, 80% (32/40) of the respondents agreed that the shortage rate was high

before 2012. After 2012, 62.5% (25/40) said that the frequency of shortages has gone to medium

and 12.5% (5/40) stated that the shortage frequency had actually gone low. However, 25% (10/40)

felt that the frequency of shortages where still high stating that the financing had not been stable.

Figure 5.13 below shows the percentage of the respondents who agreed that the introduction and

implementation of the procurement plan has mitigated or reduced the frequency of shortages in

drugs, vaccine and surgical instruments.

Source: Author

From the above chart, 75% of the respondents agreed that the introduction and implementation of

the procurement plan has mitigated or reduced the frequency of shortages in drugs, vaccine and

surgical instruments at Ndola Central Hospital. This truly reflects the sum of 12.5% and 62.5%

who said the shortages have been low and medium respectively after the implementation of the

procurement plan. They stated that organisation’s procurement plan has brought a positive impact

on the provision of public health care. These people described the organisation’s procurement plan

as being effective. Although 25% of the respondent disagreed that the introduction and

implementation of the procurement plan has mitigated or reduced the frequency of shortages in

drugs, vaccine and surgical instruments, and that it has not impacted on the provision of public

health care, they described the organisation’s procurement plan to be fair.

75%

25%

Figure 5.13

yes

no

49

5.6.2 Kitwe Central Hospital

It is however a different case for Kitwe Central Hospital. From table 5.12 above, it can be seen

that 68.8% (22/32) of the respondents at Kitwe Central Hospital stated that high shortages were

experienced before 2014 were as the rest, who amounted to 31.3% (10/32) stated that it was

medium. Unfortunately, the same results have been yielded after January, 2014 implying that the

shortage rates have been constant and that nothing has changed.

This means that the frequency of shortages in drugs, vaccines and surgical instruments at Kitwe

Central Hospital has not reduced after the implementation of the procurement plan. The

respondents added on to say this is due to the fact the plan was just initiated in January, 2014, and

that monthly grants have not been stable for the year 2014. Therefore, it has been extremely

difficult to fully follow the procurement plan. The procurement plan at Kitwe Central Hospital was

described as seen from the figure below.

Source: Author

From the above figure, it can be seen that a large percentage of 47% stated that Kitwe Central

Hospital’s procurement plan was not effective. These respondents disagreed that the introduction

and implementation of the procurement plan has mitigated or reduced the frequency of shortages

in drugs, vaccine and surgical instruments, and that it has impacted on the provision of public

health care though some of these agreed that procurement planning has a positive impact on service

delivery. They added on to say it was just an academic exercise as it was difficult for them to

follow it. 34% stated that it was fair and 19% were not sure.

47%

34%

19%

Figure 5.14

not effective

fair

not sure

50

These results were assessed on overall using Statistical Package for Social Sciences Software

(SPSS) and the resulting impact of the procurement plan on overall is shown below.

Table 5.13: Showing the overall nature of impact

Frequency Percent

Cumulative

Percent

positive 35 76.0 76.0

Negative 11 24.0 100.0

Total 46 100.0

Source: Author

Source: Author

The table 5.13 and figure 5.15 above, it shows that 76% (35/46) of the respondents agreed that

procurement panning has an impact the shortages of drugs, vaccines and surgical instruments and

hence the provision of public health care while 24% (11/46) contented that procurement panning

has not impacted the shortages of drugs, vaccines and surgical instruments and hence the provision

of public health care public. Basically the research found out that Procurement Planning has a

positive impact on the shortages of drugs, vaccines and surgical instruments and hence the

provision of public health care.

76%

24%

Figure 5.15

positive

Negative

51

5.7 Relationship between Procurement Planning and Service

Delivery

Table 5.14: Showing the relationship between procurement planning and service delivery



disagree 0 0 0

not sure 0 0 0

agree 10 21.7 21.7


Total 46 100.0

Source: Author

Source: Author

From table 5.14 and Figure 5.16 above, 78.3% of the respondents strongly agreed that there is a

relationship between procurement planning and service delivery, these were followed by 21.7%

who also agreed. Therefore the study concludes that there is a relationship between procurement

planning and service delivery. This is in agreement with Johan, (2006) who came up with slogans

like; “he who fails to plan for service delivery, plans to fail delivering services to the public.”

stronglydisagree


Series1 0 0 0 10 36

0

10

20

30

40

Fre

quen

cy

Figure 5.16: Showing the relationship between procurement planning and

service delivery

52

5.8 Hypothesis

Ho: There is no relationship between Procurement Planning and Service Delivery

Ha: There is a relationship between Procurement Planning and Service Delivery

Table 5.15: Showing Pearson’s correlation between procurement planning and service delivery

Correlations

Procurement Planning Service Delivery

Procurement

Planning

Pearson

Correlation 1 .829**

Sig. (2-tailed) .000

N 46 46

Service Delivery

Pearson

Correlation .829** 1

Sig. (2-tailed) .000

N 46 46

**. Correlation is significant at the 0.01 level (2-tailed).

Using the rating level of;

0 to -+0.3= Weak Relationship

-+0.4 to -+0.6= Moderate/ Average Relationship

-+0.7 to -+0.9= Very Strong Relationship

53

From the results obtained it can be seen from table 5.15 that r =0.829** this simply show that there

is a strong positive relationship between Procurement Planning and Service Delivery which is

significant at the 0.01 level (2-tailed). The coefficient of determinant of r² = 0.687 suggests 69%

of the variability in procurement Planning is explained by Service Delivered. This implies that

good procurement planning improves on service delivery. It was therefore concluded that at 99%

level of confidence there is a strong positive relationship between Procurement Planning and

Service Delivery, hence, we reject the Null hypothesis (Ho).

Mullins (2003) and Wogube (2011) also found out that there is strong positive relationship

between procurement planning and service delivery.

54

6.0 SUMMERY OF FINDINGS CONCLUSIONS AND

RECOMMENDATIONS

6.1 Introduction

This chapter summarizes all findings reported in chapter four according to questions of the study,

draws conclusions, suggests recommendations and also proposes some areas for further study.

6.2 Summary of Findings

6.2.1 Role under taken by different stakeholders

The study found out that; Each user department prepares a multi annual work plan based on the

approved budget, Each user department at the Hospital defines its procurement requirements, The

procuring unit at the Hospital is responsible for procuring most drugs and vaccines, surgical

instruments like sutures and other lab supplies, The procuring unit at the Hospital is responsible

for dividing requirements allocated to a single procurement process into separate lots, The

procuring unit at the Hospital brings about integration of the diverse decision and activities during

procurement planning and the accounting officer at the hospital ensures availability of funds to run

the plans and that it is budgeted for. The findings are summarized in table below.

55

Table 6.1

Scale

statements SDA D NS A SA

Each user department prepares a multi

annual work plan based on the

approved budget

Rate of

Response 0 0 7 22 17

Percentage 0 0 15.2% 47.8% 37%

Each user department at the Hospital

defines its procurement requirements.

Rate of

Response O 7 0 22 17

Percentage O 15.2% 0 47.8% 37%

The procuring unit at the Hospital is

responsible for procuring most drugs

and vaccines, surgical instruments like

sutures and other lab supplies.

Rate of

Response 0 0 1 40 5

Percentage 0 0 2.2% 87% 10.9%

The procuring unit at the Hospital is

responsible for dividing requirements

allocated to a single procurement

process into separate lots.

Rate of

Response 0 0 8 38 O

Percentage 0 0 17.4% 82.6% O

The procuring unit at the Hospital

brings about integration of the diverse

decision and activities during

procurement planning.

Rate of

Response 0 5 0 32 9

Percentage 0 10.9% 0 69.8% 19.8%

The accounting officer at the hospital

ensures availability of funds to run the

plans and that it is budgeted for.

Rate of

Response 0 0 5 23 18

Percentage 0 0 10.9% 50% 31.9%

Source: Author

56

6.2.2 Factors affecting provision of health care service in 3rd Level Hospital

There are a number of factors affecting service delivery or provision of public health care in 3rd

Level hospitals. In relevance to this study, it was discovered that the provision of adequate health

care service in these Hospitals is hampered by shortages of most drugs, vaccines and surgical

instruments like sutures. It was also found that the provision of adequate health care services to

people in these Hospitals is hampered by inadequate finances to buy the all the required medical

drugs, vaccines and surgical instruments. Untimely finances also hampers the provision of

adequate health care services to people in these Hospitals because the required medical drugs are

procured late.

Table 6.2

Scale

statements SDA D NS A SA

The provision of adequate health care

service at the Hospital is hampered by

shortages of most drugs and vaccines,

surgical instruments

Rate of

Response 0 0 0 6 40

Percentage 0 0 0 13% 87%

The provision of adequate health care

services to people at Hospital is

hampered by inadequate finances to buy

the all the required medical drugs.

Rate of

Response 0 0 0 6 40

Percentage 0 0 0 13% 87%

Untimely finances hampers the

provision of adequate health care

services to people at the Hospital

because the required medical drugs are

procured late

Rate of

Response 0 0 0 5 41

Percentage

0 0 0 10.9% 89.1%

Source: Author

57

6.2.3 How Procurement Planning has impacted the shortages of drugs,

vaccines and surgical instruments and hence the provision of public

health care

The frequency of shortages in drugs, vaccines and surgical instruments at Ndola Central Hospital

has reduced after the implementation of the procurement plan from high to medium. This shows

that proper implementation of the plan and following it reduces the frequency of shortages in drugs,

vaccines and surgical instrument. A good procurement plan bring about positive results in an

organisation on dealing with shortages and delivering adequate service to the beneficiaries of it.

Kitwe Central hospital is yet seen these results.

6.3 Conclusion

In conclusion, there is a strong positive relationship between Procurement Planning and Service

Delivery at r=0.827 which is significant at 0.01 level of confidence. The coefficient of determinant

of r² = 0.687 suggests 69% of the variability in procurement Planning is explained by Service

Delivered. This implies that good procurement planning improves on service delivery. It was

therefore concluded that at 99% level of confidence there is a strong positive relationship between

Procurement Planning and Service Delivery. Hence, a better procurement plan leads to better

delivery of services while poor planning hampers the delivery of services. Procurement planning

is therefore one of the primary functions of procurement with a potential to contribute to the

success of 3rd level hospital operations and improved service delivery.

Procurement planning is essential as it has been found to mitigate the major shortages in drugs,

vaccines and surgical instruments that have been seen to be suffered by Ndola Central Hospital

and Kitwe Central Hospital in particular.

Without adequate financial resources, It has also been discovered that it is however difficult to

fully implement and follow this plan. This results in the procurement plan being just an academic

exercise which is not followed by the procuring unit.

6.4 Recommendations

Looking at everything that this research has uncovered, the government need to make a priority in

providing adequate funds for the health sector. The health of the citizens in the country impact

58

directly on its population and improvement of this sector should always be the priority of the

government. These funds should be provided at the time when they are required in order enable a

procuring entity to adequately plan and achieve its plans accordingly.

Because the Ministry of Health does the major part of the job by providing the required drugs,

vaccines and surgical instruments, they should make it a priority to make accurate deliveries of

these requirements in order to minimize on the rate of shortages.

Like the University Teaching Hospital (UTH), Ndola Central Hospital and Kitwe Central Hospital

should consider establishing health Links with counterpart institutions in foreign countries.

Through such Links, medical experts from foreign countries have visited these institutions to

provide services, teaching or service development, on a gap filling basis. In some cases, these

institutions have also received significant technical, material and financial support, through the

same links.

6.5 Suggested Further Research

Further research should carried out on the Ministry of Health Medical Store. There is need to assess

and examine the major problems they face that causes late delivery of health requirements and

suggesting solutions to the same problems.

59

7.0 REFERENCES

1. Agaba, E. & N, S., 2007. Public Procurement Reforms in Developing Countries: The

Ugandan Experience. Boca Raton FL, Accademic Press.

2. Ahmed, J., Devarajan, S., Khemani, S. & Shah, S., 2005. Decentralisation and Service

Delivery (World Bank Policy Research Paper 3603). Washington DC, World Bank.

3. Bailey, P., Farmer, D., Jessop, D. & Jones, D., 1998. Purchasing Principles and

management. 8th ed. Prentice Hall. Financial Times: Great Britain.

4. Balunywa, M., 2004. Decentralisation and service Delivery in Uganda: The Case of

Contracting out Road Construction Services in Jinja District. Kampala, Makerere

University Library.

5. Basheka, B., 2004. Procurement Planning and Local Governace: A Factor Analysis

Approach, Kampala: Uganda Management Institute.

6. Basheka, B., 2004. Procurement Planning and Local Governace: A Factor Analysis

Approach, Kampala: Uganda Management Institute.

7. Business Dictionary, 2014. Financial Resources: Business Dictionary. [Online]

Available at: http://m.businessdictionary.com/definition/financial-resources.html

[Accessed 12 October 2014].

8. Bwalya, E., 2009. Improving Health care Delivery in Copperbelt Province Based Hospitals

through outsourcing, Kitwe: The Copperbelt University School of Business.

9. Chepkoech, R. E., 2013. Procurement Planning and Service Delivery in State Corporation

in Kenya, Nairobi: Department of Management Science, School of Business, University of

Nairobi.

10. Civicus, 2014. World Alliance for Citizen Participation. [Online]

Available at: http://www.civicus.org/new/media/Monitoring%20and%20Evaluation.pdf


11. Cooper & Schindler, 2008. Business Research Methods, London: Hill Highier Education.

60

12. Corruptie.Org, 2014. Corruptie.Org. [Online]

Available at: http://www.corruptie.org/en/corruption/what-is-corruption/

[Accessed 16th May 2014].

13. Economic Commission of Africa, 2003. Public Sector management Reforms in Africa.

Addis Ababa, Ethiopia, Author.

14. Expat Arivals, 2014. Expat Arivals. [Online]

Available at: http://www.expatarrivals.com/zambia/healthcare-in-zambia

[Accessed 16th May 2014].

15. Funding Central, 2010. Funding Central: Know your Facts. [Online]

Available at: http://www.fundingcentral.org.uk/Page.aspx?SP=6064


16. Goh, M., Lau, G. T. & Neo, L., 1999. Strategic Role and Contibution of Purchasing in

Singapore: A Survey of CEOs. Journal of Supply Chain Management, 35(3), pp. 12-23.

17. Government of Zambia, 2008. Public Arocurement Act. Lusaka, Zambia, Government of

Zambia.

18. Government of Zambia, 2011. Public Regulations Act. Lusaka, Zambia, Government of

Zambia.

19. Guyana, 2010. Procurement Planning Manual, Guyan.

20. Helmsing. A, H. J., 1995. Local Government Central Finance. An introduction. New York,

USA.

21. Hernon, P. & Whitman, J. R., 2001. Delivering Satisfaction and Service Quality: A

Customer Based Approach for Libraries. Chicago, American Library association.

22. James, U. V., 2004. Public Policy and the African Environment: An Examination of the

theory and Practice of the Planning Process of the Continent. In Kalu, A.K. (ED). Agenda

Setting and Public Setting in Africa, England: Ashagte.

23. Johan, N., 2006. Planning for Service Delivery Improvement. S D R, 15(2), pp. 105-109.

61

24. Johan, N., 2006. Planning for Service Delivery Improvement. S D R, Vol 15(No. 2), pp.

105-109.

25. Kervin, J., 1999. Methods for Business Research, New york: McGraw Hill.

26. Lawal, S., 2000. Local Government Administration in Nigeria: A prctical Approach.

27. Lenox, C., 2012. An Analysis of The Impact of Procurement Practices on the Performance

of a Public Health care Provider: A case od Kitwe Central Hospital, Kitwe: The

Copperbelt University School of Business.

28. Local Government Association of Zambia, 2009-2012. EuropeAid.

29. Lysons, K. & Farington, B., 2009. Puchasing and Supply Chain Management. 7th ed. Great

Britain: FT Prntice Hall.

30. Lysons, K. & Farington, B., 2012. In: Purchasing and Supply Chain Management: Pearson

Education Limited, p. 6.

31. Mawhood, P., 1983. The expirience of Tropical Africa. Local Government in the Third

World, 58(02), pp. 247-249.

32. Ministry of Health Action Plan, 2011-2015. National Health Strategic Plan, Lusaka:

Zambia.

33. Oboth, M. J., 2001. Decentralisation and Service Delivery: Constraints and Controversies,

Kampala: Makerere University Library.

34. Odhiambo, W. & Kamau, P., 2003. Public Procurement: Lessons from Kenya, Tanzania

and Uganda. OECD Working Paper NO. 208.. s.l., OECD Development Centre.

35. Pallot, P., 2014. Expat Guide to Zambia: Health and Care. [Online]

Available at: http://www.telegraph.co.uk/health/expathealth/8946046/Expat-guide-to-

Zambia-healthcare.html

[Accessed 2 September 2014].

36. Parasuraman, et al., 1996. The Behavioural Consquence of Service Quality. Financial

Times.

62

37. Procurement Policy Manual, 2009. IT Procurement Planning and Strategic Sourcing.

Virginia, Information Technologies Agency.

38. Saunders, M. L. P. a. T. A., 2007. Research Methods for Business students, prentice hall:

financial times.

39. Shaw, C. J., 1990. The Service Forcus. 4th ed. Jones Irwin.

40. Sustainable Procurement Practice Group, 2014. UNOPS Procurement Manual Revision 5.

41. Tharenou, 2007. Management Research Methods, Cambridge: University Press.

42. The The Tropical Health and Education Trust in Conjunction with the Ministry of Health,

2007. Mapping of Health Links in Zambian Health Services and Associated accademic

Institutions under the Ministry of Health, Lusaka: CAN Investments Limited.

43. Treasury Board of Canada Secretariat, 2002. Service Improvement Initiative. [Online]

Available at: http://www.tbs-sct.gc.ca/si-as/howto-comment/howto-comment07-eng.asp


44. WiseGeek, 2014. wiseGEEK: What Is Procurement Policy?. [Online]

Available at: http://m.wisegeek.com/what-is-procurement-policy.htm

[Accessed 13 october 2014].

45. Wogube, S. G., June 2011. Procurement Planning and Service Delivery in Public

enterprise: Case Study of Sironko Town Council, Kampala: Makerere University.

46. World Health Organisation, 2008. Service Delivery. June, p. 1.

63

APPENDIX 1

THE COPPERBELT UNIVERSITY

SCHOOL OF BUSINESS

DEPARTMENT OF OPERATIONS AND SUPPLY CHAIN MANAGEMENT

Dear respondents, I am a final year student of the above mentioned university pursuing a Bachelor

of Science degree in Purchasing and Supply. It is the requirement of the University that I carry out

an independent academic research project as a partial fulfillment for the award of the degree. My

research title is: An evaluation of the Impact of Procurement Planning on Service Delivery in

3rd Level Hospitals.

I humbly request you to spare some few minutes of your time and answer these questions below.

The study is strictly for academic purposes and all the information provided will be treated with

utmost confidentiality. Your cooperation is highly appreciated.

Yours faithfully,

Saviour Nyondo

The Copperbelt University,

P.O. BOX 21692,

Kitwe,

Zambia.

+260-974848 498

+260-965 980 699

64

INSTRUCTIONS

Please tick your appropriate answer (s). Where required please provide your explanations.

SECTION A

Name of organisation…………………………………………………………………….

Personal data

1. Gender of the respondents

a) Male

b) Female

2. Respondents level of education

a) Certificate

b) Diploma

c) Degree

d) Masters

e) None of the above

3. Title of the respondent (position)...................................................................................

4. Years in service on this title...........................................................................................

65

SECTION B: TO DETERMINE HOW PROCUREMENT PLANNING HAS IMPACTED

PROVISION FOR PUBLIC HEALTH CARE IN TERMS OF SHORTAGES OF DRUGS

1. Has procurement planning been implemented in your organisation?

YES NO

2. If yes in (1) above, when was procurement planning implemented in your organisation?

……………………………………………………………………………………………

3. How was procurement of drugs, vaccines and surgical instruments before the introduction

and implementation of the plan in your organisation?

A. CENTRALISED

B. DECENTRALISE

C. BOTH CENTRALISED AND DECENTRALISED

D. OTHER SPECIFY

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

If your answer in (3) above is other than (D), briefly explain

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

4. How is procurement of drugs, vaccines and surgical instruments after the implementation

of the plan in your organisation?

A. CENTRALISED

B. DECENTRALISED

C. BOTH CENTRALISED AND DECENTRALISED

D. OTHER SPPECIFY

………………………………………………………………………………………………

………………………………………………………………………………………………

66

If your answer in (4) above is other than (D), explain briefly

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

5. Does the hospital procure drugs, vaccines and surgical instruments?

YES NO

6. If yes in (5) above, is it all the drugs, vaccines and surgical instruments that are procured

by the hospital? Briefly explain

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

7. If yes in (5) above, does the hospital experience shortages in the drugs, vaccines and

surgical instruments it procures?

YES NO

8. Did you experience shortages of drugs, vaccines and surgical instruments before the

introduction and implementation of the procurement plan in your organisation?

YES NO

9. If yes in (8) above, how can you rate the frequency of shortages of drugs before the

introduction and implementation of the procurement plan in your organisation?

HIGH MEDIUM LOW

10. Do you still experience shortages of drugs after the implementation of the procurement

plan?

YES NO

67

11. If yes in (10) above, how can you rate the frequency of shortages of drugs after the

implementation of the procurement plan in your organisation?

HIGH MEDIUM LOW

12. Do you think the introduction and implementation of the procurement plan has mitigated

or reduced the frequency shortages of drugs, vaccines and surgical instruments in your

organisation?

YES NO

13. How effective has procurement planning been in mitigating the frequency of these

shortages?

NOT EFFECTIVE

FAIR

NOT SURE

EFFECTIVE

VERY EFFECTIVE

14. Do you think procurement planning has impacted on the provision of public health care in

your organisation?

YES NO

15. If yes in (14) above, how can you describe this impact?

POSITIVE NEGATIVE

16. briefly explain your answer on (15) above

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

68

17. How would you describe your organisation’s procurement plan?

VERY GOOD

GOOD

NOT SURE

POOR

VERY POOR

18. Briefly explain your answer in (17) above

………………………………………………………………………………………………

………………………………………………………………………………………………

SECTION C: ROLES UNDER TAKEN BY DIFFERENT STAKE HOLDERS

Procurement Planning is a process of identifying and consolidating requirements and determining

the time frame for their procurement, in order to have them as and when then are required.

Please tick where appropriate if the following are done when planning for procurement in your

organisation.

The following abbreviations will be used:

Strongly agree (SA), Agree (A), Not Sure (NS), Disagree (DA), and Strongly Disagree (SDA)

Statements SA A NS DA SDA

1. Each user department prepares a multi annual work

plan based on the approved budget.

2. Each user department at the Hospital defines its

procurement requirements.

3. The procuring unit at the Hospital is responsible for

procuring most drugs and vaccines, surgical

instruments like sutures and other lab supplies.

69

4. The procuring unit at the Hospital is responsible for

dividing requirements allocated to a single procurement

process into separate lots.

5. The procuring unit at the Hospital brings about

integration of the diverse decision and activities during

procurement planning.

6. The accounting officer at the hospital ensures

availability of funds to run the plans and that it is

budgeted for.

70

SECTION D: FACTORS AFFECTING SERVICE DELIVERY

Service delivery is a system or arrangement of periodical performance of supplying public needs.

1. What is your core business or the service you provide?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

2. How would you rate the quality of service provided by your organisation?

VERY GOOD

GOOD

NOT SURE

POOR

VERY POOR

3. Do you think the implementation and management procurement planning has anything to

do with your answer in (2) above?

YES NO

4. Briefly explain on your answer in (3) above

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

71

Please tick where appropriate on the factors that affect service delivery or provision of public

health care and feel free to comment on your answers overleaf the table.



Statement SA A NS DA SDA

1. The provision of adequate health care service at the

Hospital is hampered by shortages of most drugs and

vaccines, surgical instruments like sutures and other lab

supplies

2. The provision of adequate health care services to people

at Hospital is hampered by inadequate finances to buy

the all the required medical drugs.

3. Untimely finances hampers the provision of adequate

health care services to people at the Hospital because the

required medical drugs are procured late

72

SECTION E: RELATIONSHIP BETWEEN PROCUREMENT PLANNING AND

SERVICE DELIVERY.



Statements SA A NS DA SDA

1. Procurement planning sets in motion the entire

procurement process of acquiring most drugs and

vaccines, surgical instruments like sutures and

other lab supplies at the Hospital

2. Procurement planning facilitates efficient and

effective provision of public health care at the

Hospital

3. Procurement planning helps to achieve the

maximum value for expenditures on drugs and

vaccines, surgical instruments like sutures and other

lab supplies at the Hospital to be procured and

hence, the services to be delivered.

4. Procurement planning has improved service

delivery (provision for public health care) at the

Hospital.

5. Procurement planning has NOT improved on

service delivery (provision for public health

care) at the Hospital.

6. There is a relationship between procurement

planning and service delivery.

7. Financial Resource availability has an impact

on the quality of service delivered

8. Service delivery standard setting has an

impact on the quality of service delivered

9. Monitoring and evaluation of service

delivered has an impact on the quality of

service delivered

10. Procurement policy of the organisation has an

impact on the quality of service delivered

73

APPENDIX 2

INTERVIEW QUESTIONS FOR THE BENEFICAIRIES OF THE SERVICE

1. Is the hospital able to provide all the necessary drugs you need that has been prescribed for

you?

2. Do you think the hospital is doing better in terms of availability of medical drugs of late?

(after 2012 and 2014 respective of Ndola and Kitwe Central Hospital)

3. Do you think the current situation has improved the provision of public health care?

INTERVIEW QUESTIONS FOR THE HEALTH CARE SERVICE PROVIDERS

1. Has procurement planning brought positive changes on provision of public health care?

2. If yes, what are some of the changes that it has brought about in the organisation?

3. Does your organisation still face shortages of the drugs that are procured locally?

4. How can you rate the shortages of drugs after the implementation of the procurement plan

as compared to before

High Low Medium

5. If yes to (3), can you mention some of the drugs

6. Has procurement planning helped in reducing shortages of medical drug in your

organisation?

7. Do you think there is a relationship between procurement planning and service delivery?

8. If yes, is the relationship positive or negative?

9. Can you then conclude that procurement planning has improved provision of public health

care in your organisation?

an evaluation of the impact of procurement planning on service delivery in 3rd level hospitals

Documents