INDUSRIAL ATTACHMENT REPORT: A CASE STUDY OF NAIROBI

CITY COUNTY

BY

NAME: AMOS MUTISO WILLIAM

REG NO.: TU01-BE211-0201/2016

UNIVERSITY: TAITA TAVETA UNIVERSITY

DEPARTMENT: BUSINESS MANAGEMENT SCIENCE

A REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE IN PURCHASING AND SUPPLY CHAIN

MANAGEMENT SUBMITTED TO TAITA TAVETA UNIVERSITY.

DECLARATION
Declaration by the Student
This industrial attachment report is my original work and has not been presented to any other examination body. No part
of this research should be reproduced without my consent or that of the Taita Taveta University.

Name............................................................................. Signature................................. Date........................................

Lecturer Supervising
This industrial attachment report has been submitted for registration with my approval as the Taita Taveta University.

Name………………………........................................ Signature................................. Date.............................

Declaration by the Supervisor

Name............................................................................. Signature............................... Date.............................

Branch Manager, Nairobi City County

DEDICATION
This report is dedicated to my parents Josephine and William for the humble time and prayers, and whose support both
informational and emotional ensured that this report is successful.
 ACKNOWLEDGEMENT

My gratitude and regards goes to the management of Taita Taveta University for giving me this opportunity and chance to
go and be able to carry out my practical learning so as to be able to apply the theoretically learnt lessons in actions within
the procurement department.

I would also like to thank Nairobi City County for giving me this opportunity to work and learn in their organization. I
have greatly natured and improved my skills in the industry of Purchase and Supplies Management.

I would like to express my sincere gratitude to all the staff members of the procurement department for their cooperation
and willingness to help me in the department as an attaché. Thanks a lot for the information given to me anytime I
requested and the training, experience and the direction. My sincere gratitude goes to the supervisor of Taita Taveta
University, Madam Mercy……who gave me direction and support anytime I called on her, also my supervisor at Nairobi
City County for his day-to-day kind support and for always being there for me when I needed assistance all through my
attachment period.

Wish to thank all mighty God for his protection and guidance he has given me throughout this period of this study and in
my daily activities.
 ABSTRACT
Generally, this industrial attachment report is projected to show what I have learned and experienced in the procurement
department of Nairobi City County and also the contributions that I have made in the organization. The report begins with
an introduction, and then the body which shows where and what I did. It also has observations of every section. The report
ends with a conclusion and recommendations.

The attachment is meant to give an intern experience and other management skills which are required in the actual
workplaces. The attachment was eight weeks as was required. I covered several sections including: procurement
overview, raising of LPO/LSOs, processing invoices, stores management physical storage of goods in general, health club
and stores; disposal of surplus stocks, opening tenders and ticket processing.

Thus the report gives what I observed at Nairobi City County and gives conclusion on what is done and finalizes with
recommendations. This report is specific enough to give true reflection on all activities undertaken while in the
organization.
 TABLE OF CONTENTS

LIST OF ABBREVIATIONS....................................................................................................................... Vii

OPERATIONAL DEFINITION OF TERMS ................................................................................................ ix

SECTION ONE: INTRODUCTION
1.1 Introduction.............................................................................................................................................. 1

1.2 Procurement Department ......................................................................................................................... 2

SECTION TWO: ATTACHMENT EXPERIENCE

2.1 General Activities Undertaken................................................................................................................. 5
2.2 Specific Activities Undertaken................................................................................................................. 7
2.3 Analysis of knowledge and skills acquired............................................................................................... 9
2.4 Skills and competence gained .................................................................................................................. 9
2.5 Observations and critique........................................................................................................................ 10

2.6 Strategy for Utilization of Contracts established During Attachment .....................................................11

SECTION THREE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

3.1 Summary................................................................................................................................................. 12

3.2 Conclusion .............................................................................................................................................. 12

3.3 Recommendations................................................................................................................................... 13
ABBREVIATIONS
LPO : Local Purchase Order

LSO : Local Service Order

ERP : Enterprise Resource Planning

RLPO : Requisition for local purchase order

SRS : Stores received statement

 SECTION ONE
INTRODUCTION
1.1 Introduction
The purpose of the report is to demonstrate details, responsibilities and experience i have gained during
my attachment period and also to translate the theoretical learnt lessons in class into practical. The report
is a partial fulfillment of Taita Taveta University attachment program. The report focuses largely on the
responsibilities handled, achievements, and working environment and challenges that I encounter when
conducting various errands assigned to me by the organization through my supervisor. The attachment
period was of a maximum of eight weeks as from 15th July, 2019 to 13th Sept 2019, during which I
acquired additional practical experience to supplement the course of study in the institute.

1.1.2 Company Attached; Nairobi City County

Nairobi City County (NCC) refers to the body of the local government in the city. The city is classified
into 75 wards and each of these wards has a counselor. The head of the councilor is the Mayor of the city
and it is the councilors who vote him to post. The City County of Nairobi is elected for a term of five
years and during this time the council is expected to look after the welfare of the city infrastructure of
Nairobi. Some of the wards of Nairobi include Kangemi, South Nairobi, Ofafa, Lumumba or Hamza,
Viwandani, Ziwani, Mbotela, Pumwani, Makongeni, Eastleigh North, Eastleigh, Central, Muthurwa,
Kimathi, Kibera, Karen, Laini Saba, Kenyatta, Mugumo-ini,Kasarani,Njiru,Clay City,Lucky Summer to
name a few.

For smoother administration, the Nairobi City County maintains different departments. The following are
the names of these Nairobi City County Departments: Education Department, Human Resources
Department (HRD), City Treasury, Town Clerk, Water and sewerage The National Association of
Regional Council of Nairobi brings about the development in several aspects of city, such as the sewerage
system, the development of roads and public transportation, street illumination, rehabilitation of roadside
dwellers and the likes.
 Figure 1.1 Organization Structure of Nairobi City
County. County Governor

City Treasury

Education Human Finance Contract Logistics

1
Department Resource Manager Certification Manager
Department DePartmeant

Accounting
City Inspectorate
Training Manager
Manager

Quality Inspectorate

Transport
Manager

Source: Nairobi City County (2019)

1.1.3 Nairobi City County departments

Nairobi City County boast of a robust management team with high level of skills and knowledge heading
different departments of the company as per their line of specialization professionally. These department
includes: Procurement Department, Sales & Marketing Department, Finance Department, Administration
Department, Human Resource Department, Accounts Department, Information Technology Department,
Stores Department, Technical Department, Logistic Department and Audit Department.
1.4 Procurement Department
The procurement department is one of the many departments found within the organization. It is given the
mandate of handling all procurements and logistics of the organization. The procurement and logistics
handling are meant for efficient and effective running of the organization. All the procurement operations
are done according to the Public Procurement and Disposal Regulation, 2010 requirements. The
procurement department is mandated by the Act to: Advice the accounting officer on all the procurement
matters in the organization, Assist the procuring entity in maintaining and safeguarding procurement and
disposal documents and records as provided by the Act and Assist in preparing, publishing and
distributing procurement and disposal opportunities including invitations for expressions of interest.

This department is headed by a senior professionally and highly skilled procurement manager. Under the
head of this department is the procurement officer, assistant procurement officer and the procurement
clerk. The department has several duties including: stock control, tender committee secretariat,
procurement, procurement secretariat and procurement planning.

Stock Control
This entails stores and warehousing where the raw materials used for production and then later on
processed, packed and then arranged ready for shipments are stored and warehoused. This docket is
manned by a professional procurement assistant. Stock is controlled using several documents such as
Inventory Note, Quality Checklist, and Inventory card, S3, S11 and S13.

S3 is a stock ledger and stock control card where whatever comes in and goes out is recorded manually.
S11 is a counter requisition voucher in which a user department has to fill whenever they got to pick
things from the stores. S13 is a counter receipt voucher which is filled by the store’s manager whenever
they receive anything over the counter.

Nairobi City County is working on a single ERP system, WFX-ERP-II. This unifies all the departments
working. WFX Web ERP II - a new breed of Enterprise Resource Planning (ERP) software, which
extends beyond a company's internal processes and connects to suppliers and buyers. It maintains the
functionality of inward looking core ERP Apparel systems, and allows for features and functionality that
can connect our entire value chain.
Tender Committee
The company has a tender committee whose main function is to: Review, verify and ascertain that all
procurement and disposal has been undertaken in accordance with the Act and regulations, Award
procurement contracts in accordance with thresholds, Undertake any other functions or duties as may be
provided under the Act and the regulations and Ensure that the procuring entity does not pay in excess of
prevailing market prices.

Composition of the Tender Committee

The committee comprises of a 9 members team lead by procurement manager as the chairperson. The
nine (9) members are appointed by accounting officer from various departments of the organization.
Procurement unit acts as the secretary. The procurement unit consists of all procurement officers of
Nairobi City County.

Disposal committee
The main function of the disposal committee is to recommend the disposal of unserviceable, obsolete and
supply of items and equipment’s.

Inspection and acceptance committee

Whose main aim is to inspect goods, works and services delivered like: Inspect, test the goods received
and ensure that they comply with the terms and specifications of the contract, Ensure that correct quantity
has been received. Ensure that goods works/services meet the technical standards defined in the contract.

Procurement and Logistic

This is where the Local purchase orders, International purchase orders, Consignment Receiving Note,
Consignment Shipment Note, GRN creation, GIN creation, System

Quality Assurance and Local service orders are raised. Bookings are also done here. Quotations are
always invited and opened here. This section is managed by a procurement officer.

Procurement Planning
This is headed by the senior procurement officer who ensures that procurement plan is in place for
efficient running of the procurement department. This is prepared every financial year.
 SECTION TWO
ATTACHMENT EXPERIENCES
2.1 General activities undertaken
As an attachés, I undertook very many activities in the company in different departments, generally, I
took part in: General clerical duties like typing, filling and routine procedural processing, Providing
technical advice to members of staff and other department on procurement, Dispatch of letter of awards of
prequalification and Maintaining of various records for the department and programmed as a whole.

2.2 Specific activities undertaken

Arranging and updating the stores ledger and stores control card
I frequently updated the stores ledger book by arranging the ledgers according to the dates they follow
each other and update them i.e. recording the items which were issued, the quantity issued and the amount
then put the S13 number of the counter requisition and issue voucher for easy reference and filled the S11
form i.e. Counter Requisition and Issue Voucher. They are usually filled in triplicates.S13 form i.e.

Counter Receipt Voucher. They are filled in duplicates

Sealing and binding of the tender documents

I took part in binding the tender document pre- qualifications using the binding machine and seal it to the
bidders according to the tender document they have bought e.g. Nairobi City County 15/5/2013 after
confirming that they have really bought the document using the receipt from the cashier then they would
write the company’s, name sign the register and then issue them with the document.

Opening of tenders
I got the privilege of being involved in the opening of tender document which occurs weekly depending
on each departments. All bidders are assembled at the conference room and all the tender documents are
also box while still in the company tender box for opening in the witness of all bidders who have
participated. They are then classified according to the required items that the bidders had applied in order
to supply the organization i.e. EC15/07/2018- EN15/07/2018. The documents are separated i.e. original
document from the copies and originals are numbered and stamped and the name of the company, the
letter of bid and price schedule are highlighted using the yellow stickers and the chairman ,secretary and
two officers from the committee sign the highlighted parts. After the names were written and bidders
signed in order to confirm that that was the number of bidders who had applied in order to avoid
misunderstandings in future.

Preparing of LPOs and LSOs

It is usually prepared in quadruplicate. I would address it to the supplier am procuring from type the
account number of the item, the cost and then print the document so that it can be signed with the head of
procuring department and user department. LPO contains a list of products together with their
specifications to be ordered from the specified external supplier(s). LSO is a list of services that have to
be ordered from the specified external supplier. They are filled in quadruplicates.

Preparing of payment voucher

I used to address this document to the payee (the person being paid) in the particulars and indicate why
the payments are being done and then insert the lpo/lso number the account number of the item and
invoice number and calculate the VAT if the amount is taxable and put the amount both in words and
figures.

Preparing of price schedule analysis

This involves comparing different prices of different suppliers and recording the lowest price .this is done
by looking for the item in the register which contains the items, the name of the firm unit cost and the
total cost and then divide the total cost and the quantity to get the price of one item this helps the ministry
to budget properly to ensure there is no deficit and surplus.

Preparation of procurement minutes

This is done to show how the committee decided to award the contract to suppliers either on award of
tenders or quotation for the supply of goods in the ministry.

Disposal of Goods
This involves the inspection of obsolete items in different departments within the ministry, clearance of
the obsolete, unserviceable, inbound goods through public action.
2.2 An Analysis of learnt knowledge and applied skills
During the attachment I was able to acquire knowledge and skills that will help me as an individual in
future in applying my responsibilities and duties assigned at the work place and to develop purchasing
and supplies management and also helped me apply the knowledge acquired from Nairobi City County.

Technical Skills
I was able to apply most of the computer packages for example Microsoft Word, Access and Excel in
dealing with some of the organizations activities such as data entry, stock taking, GRN and GIN creation
and also quality assurance confirmation through the system. It made dealing with certain transactions
easier and more efficient.

Accounting Skills
The accounting and financial knowledge that I had made it easier for me to be able to record, post and
analyze most of the stores transactions without supervision by using sage applications and epic or
applications.

Stock Management
The strategic inventory management knowledge that I had helped a lot in the stores and warehouse
management hence lead to some changes in stores management i.e. applying FIFO and LIFO on the stores
ledger cards, stocktaking and stock checking and stock control. This involves stores and warehousing
where the products are stored and warehoused. This is managed by a procurement officer. Stock is
controlled using S3, S11 and S13.S3 is a stock ledger and stock control card where whatever comes in
and goes out is recorded manually. S11 is a counter requisition voucher in which a user department has to
fill whenever they got to pick things from the stores. S13 is a counter receipt voucher which is filled by
the store’s manager whenever they receive anything over the counter.

Enterprise Resource Planning

This is the electronic way of managing and monitoring of activities in the stores for sufficient and
effectiveness of an organization.

Problem Solving
There are ways and approaches to solve problems that arise in the stores and purchasing office and how to
choose the best alternative solution to effective learning activity.
Dealing with emergency cases
These are cases where someone requires knowledge to manage emergency orders and how to work on
them without causing problems to the whole system.

Leadership skills
A manager requires leadership skills in order to be able to learn his/her managerial activities. Some of the
skills are coordinating, controlling, directing and integrity.

Integrative Skills
In an organization one requires the integration of departments and personnel to achieve its goals.
Purchasing and stores department integrates with other departments like Human Resource department,
housekeeping department, information technology department, security, transport, finance and others to
operate effectively.

Communication Skills
Interpersonal relationship in an organization is enhanced by communication skills applied in an
organization which should be applied and exercised through a formal channel used in the organization.

Negotiation skills
Negotiation should be fair between the supplier and client. Negotiation is said to be fair when there is a
win situation between the supplier and customer. The two should feel they have won the business.

Customer - supplier Relationship

There should be sound relationship between supplier and customer in order to work and do business
together. Sound customer and supplier relationship helps the customer and supplier to adhere the codes
and ethics when doing business.

Conceptual Skills
Conceptual skill relates to the managers ability to think in abstract. Abstract means creating ideas from
nothing. It is the ability to see opportunities others cannot see. A manager should be able to foresee any
anticipated price rise or shortages of certain stocks and take collective measures in advance.
2.3 Profile of skills and competencies gained
Results-focused
The ability and drive for achieving and surpassing targets against an internal or external standards of
excellence. This is about showing a passion for improving the delivery of services with a commitment to
continuous improvement in your procurement process.

Professionalism
The ability to think carefully about the likely effects on others of your words, actions, appearance, and
mode of behavior. The consummate professional selects the words and actions most likely to have the
desired effect on the group or individual in question.

Strategic industry management

Establishing long range business plans which can anticipate the global market. This is particularly
important for commodity procurement.

Category management
Arranging or categorizing your spend according to specific goods or services (direct & indirect); and
keeping in mind quality, service, risk and cost.

Project management
Driving the procurement process by designing, implementing and managing projects to a successful
conclusion. Establishing accountability, establishing timelines and establishing goals are paramount.

Analytical skills
The ability to visualize, articulate, and solve both complex and uncomplicated problems and concepts and
make decisions that make sense based on all available information. Particularly important in the selection
of vendors
2.4 Observations and Critiques.
Observations
The work I was tasked with does truly allow creativity and innovation in that one is expected to come up
with new ideas and ways of effectively managing the resources of the institution in order to meet the
targets of the institution and efficiency of the institution.
I liked the way the institution cared for the social needs of their employees. The institution has set up a
medical scheme for all its employees whether permanent or on contract.

The institution gives meals to their employees. I liked this because it showed the institution’s commitment
to their employee’s needs. Also there was good flow of document from the stores to purchasing, Accounts
and claims departments. There central registry is well functioning and documents kept neatly for
customers references and their employees.

2.5. Critiques
Since the organization has many building, each building is networked on its own thus making it difficult
in communications for different departments in the organization. The offloading and loading of inventory
is done by people and this results in some goods being damaged. There is no team building exercised like
parties, retreats to reexamine what they have achieved, share personal experiences and ideas and learn to
appreciate the importance of teamwork at work. The procurement managers are not applying the
Procurement and Disposal Act 2005 and Procurement and Disposal Regulations to perform their day to
day duties. The procurement managers are performing their duties in different building in the organization
and this leads to time wastage through the movements from one building to the other when performing
follow-ups.

The organization takes long time duration to pay its suppliers, these has caused predicaments between
procurement department and finance department. Most of the suppliers have discard to supply in fear of
the late payment, it has also been very hectic to bring new suppliers on board. There is no checkups at the
gate by the security guards when vehicles and people come in and go out of the go down. When the
important documents like the tax compliance certificate, business permit, national hospital insurance fund
certificate and the national social security fund certificate expires it takes time for them to be renewed
thus making the tendering process invalid when compiling the tender documents.

When the tendering process is completed the junior staffs in the procurement department are not informed
about the results for the entire process thus making it difficult for them to improve on their competence,
efficiency and effectiveness in the tendering process.

2.6 Strategy for Utilization of Contacts Established during Attachment During my attachment period I
was exposed to head of supply chain management, senior head of supply chain and procurement officers
in levels 1-4. They were supportive and friendly during the period. They advised me on how to advance
my career and they encouraged me to pursue a degree in purchasing in future and other related field like
accounting and information technology. I acquired knowledge practically which will enable me to pursue
my degree comfortably having known what procurement entails.
 SECTION THREEE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter highlights observation made, conclusion and possible recommendations by the attaché.

3.1 Summary
There is a lot of work at Nairobi City County procurement department involving a lot of logistics and
people. Since all the departments are not under one roof, so many movements are involved between the
buildings meaning that some work times are being wasted since the distances are long.

Procurement department has four officers headed by senior procurement manager. There is neither
discrimination nor prejudice for attaches. They perform the same duties as the other officers and they are
given the same authority to handle those duties the same way. Most of the procurement of goods and
services are done in the local markets in the country.

3.2 Conclusion
As attaché in the purchasing and supply management department of Nairobi City County I confirmed that
industrial attachment is vital and very crucial in any students course work. I was able to appreciate the
importance of human relationships and work attitudes, understand the constraints of working life and
functional relationships within the organization.

I became more orientated towards work processes since I was able to apply theoretical concepts and
school based skills to practice. Additionally I had an opportunity to develop work attitudes like
curiousness, self-confidence, maturity and self-reliance hence obtaining knowledge of potential careers
and developing new areas of interest.

I would like to thank the management of Nairobi City County for enabling me to do my attachment at
their place. Also I would like to thank the entire staff for their cooperation and assistance that they gave
me to enabled me to learn new skills that are needed in today’s world.

The compulsory supervised industrial attachment of the institute gives students the opportunity to apply
knowledge in real work, exposing students to work methods not taught in the institute and provide access
to products equipment not available in the institute as well as assessing students interest in the occupation
he or she plans to undertake, the program should therefore be maintained and the period extended.
I confirmed that at Nairobi City County one can learn so much not only on procurement but also about
other departments. This is because procurement cannot work without other departments. One is also able
to know more about the organization. Thus in conclusion, Nairobi City County is a better place for
learning: Interpersonal skill determines the performance of individuals and the organization at large,
Integration of department helps in effective operation of activities, Modern technology is a factor that
determines the effectiveness, efficiency and smooth operation of an organization, Effective
communication promotes efficiency and eliminates communication barriers, Knowledge and skills
acquired in class should be well exercised to practical work in an organization, An organization is
considered as a system and to achieve its goal it must coordinate with its core parts i.e. departments and
the interaction with the suppliers enables the attachee to gain some experience on the negotiation
techniques when purchasing goods and services.

3.3 Recommendations
All the Procurement Managers should be put to perform their duties under one roof to avoid time wastage
on movements from one building to the other and for ease of follow-up. All the procurement Managers
should be acquainted with the Procurement and Disposal Act 2005 and Procurement and Disposal
Regulations so that they apply them in their day to day duties.

This will give staff time to re-examine what they have achieved so far, share personal experiences and
ideas and learn to appreciate the importance of teamwork at work. The finance department should take
shorter duration to pay its suppliers so that the can get the goods requested in time to improve the
organization’s effectiveness and efficiency. There should be checkups at the gate when vehicles and
people go out and come in at the go down to avoid security threats.
Important documents like the tax compliance certificate, business permit, national hospital insurance fund
certificate and the national social security fund certificate should be applied for renewal before their
expiry dates thus making the tendering process valid when compiling the tender documents. When the
tendering process is completed the junior staffs in the procurement department should be informed about
the results for the entire process so that they can rectify where they made a problem, improve on their
competence, efficiency and effectiveness in the tendering process.

It is recommended that the organization should fully participate in social corporate responsibility by
engaging the public and also considering the social needs of their clients and people they support through
the organization.
It was recommended that the organization gives meals to their employees as well as the clients arrive
when meals are ready, for this will encourage motivation more so to the employees to stick with the
organization.

It is recommend that the organization should consider the course a student is taking, so that they can be
assigned to the department that they really studying for, for them to deeply understand and advance the
level of what they learnt in class.

It is recommended that the management should take keen attention to punctuality of employees as
opposed to the value the employee is going to add in the organization. For instance, an employee could be
late and deliver more than the employee who came in well before time and the organization proceeds to
punish the employee for being late for five minutes.

Procurement department is the backbone of every business and the organization at large, and in this
respect the department should be efficient in its operation to enhance effective functions within the
organization. This can be achieved by employing staff that have the following characteristics the ability to
serve customers cheerfully, courteously and efficiently, multi-tasking skills, good health, good grooming,
the ability to work as part of a team, the ability to work with little supervision, good verbal
communication skills and sensitivity to customer needs, the ability to work calmly under minimal
supervision.

Improved communication within an organization can increase productivity. An operations manager is

responsible for making sure that the tools necessary to facilitate efficient communication within the
organization are in place.

It is recommended that organization set up an adequate computer accounting system that calculates
current inventory and sends that information to the finance and economic planning.