Top Banner
0 Republic of the Philippines Department of Education PUBLIC TECHNICAL -VOCATIONAL HIGH SCHOOLS
29

Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Oct 24, 2014

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Unit of Competency : Perform Purchasing and Inventory of Production Materials

Module No. 3Module Title : Performing Purchasing and Inventory

of Production Materials

0

Republic of the PhilippinesDepartment of Education

PUBLIC TECHNICAL -VOCATIONALHIGH SCHOOLS

Page 2: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

HOW TO USE THIS MODULE

Welcome to the Module “: Performing Purchasing and Inventory of Production Materials”. This module contains instructional materials and activities for you to complete.

The unit of competency, Perform Purchasing and Inventory of Production Materials contains the knowledge, skills and attitudes required for the course Entrepreneurship.

You are required to go through a series of learning activities in order to complete each of the learning outcomes of the module. Follow these activities on your own and answer the Self-Check at the end of each learning activity.

If you have questions, don’t hesitate to ask your teacher for assistance.

1

Page 3: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

COURSE : ENTREPRENEURSHIP IV

UNIT OF COMPETENCY : Perform Purchasing and Inventory of Production Materials

MODULE TITLE : Performing Purchasing and Inventory of Production Materials

MODULE DESCRIPTION : This module covers the knowledge, skills and attitude required to perform the purchase of production materials.

SUGGESTED DURATION : 10 Hours

SUMMARY OF LEARNING OUTCOMES:

At the end of this module, you are expected to:

L.O.1. identify criteria in purchasing production materials; andL.O.2. utilize standard inventory control of the production materials.

2

Page 4: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

WHAT WILL YOU LEARN?

At the end of this module, you are expected to: learn the criteria in purchasing production materials; and utilizing standard inventory control of the production

material.

WHAT DO YOU ALREADY KNOW?

Directions: Let us find out how much you already know in identifying criteria in purchasing production materials and utilizing standard inventory control of the production materials. Answer the questions below honestly and write the letter of the corresponding answer in your activity notebook.

1. Apple, cucumber, carrots, tomatoes and corn are examples of what products?

a. grown productsb. manufactured productsc. processed products

2. The dresses we have, bags we use and shoes we wear, are examples of what products?

a. grown productsb. manufactured productsc. processed products

3. The maximized use of the natural resources, nurturing entrepreneurial skills of the Filipino people and additional income of the government through tax collection are examples of what purchasing activity?

a. benefits of purchasing activityb. factors in purchasing goods and servicesc. guidelines in purchasing process

4. Assessing the profile of the producers and customers and checking the track record of the suppliers are examples of what purchasing activity?

a. benefits of purchasing activityb. factors in purchasing goods and servicesc. guidelines in purchasing process

5. These are stock files of materials for the inputs of production.a. finished-goods-inventoryb. raw-materials-inventory

3

Page 5: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

c. work-in-process inventory

6. These are partially completed products requiring further processing including sets of unfinished goods for production process.

a. finished-goods-inventoryb. raw-materials-inventoryc. work-in-process inventory

7. These are the final outputs of production ready for delivery to the customers.

a. finished-goods-inventoryb. raw-materials-inventoryc. work-in-process inventory

8. Stock card #1 has information and data that are categorized in

what cluster of items?a. collectiveb. groupc. individual

9. Stock card #2 has information and data that are categorized in what cluster of items?

a. collectiveb. groupc. individual

10. When you need to purchase or avail of goods and services without the

need to leave the country, how do you classify these resources?a. export resourcesb. imported resourcesc. local resources

4

Page 6: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

LESSON 1

IDENTIFY CRITERIA IN PURCHASING

PRODUCTION MATERIALS

WHAT IS THE LESSON ABOUT?

This lesson will teach you how to identify criteria in the purchase of production materials. It will guide you on how to

utilize a stock card for inventory control of production materials necessary in the continuous operation of the business.

WHAT WILL YOU LEARN?

At the end of the lesson, you are expected to:1. learn the benefits and factors in purchasing goods

and services by using the set of criteria cited in this lesson;

2. use a stock card for the inventory control of the production materials; and 3. identify local sources necessary in the purchase of production of materials.

LET US STUDY

WORDS TO STUDYSourcing is a complete process of obtaining goods and services from preparation and processing of a requisition to receipt and approval of the invoice for payment.Services are intangible products that are not goods (tangible products), such as accounting, banking, cleaning, consultancy, education, insurance, know how, medical treatment, transportation.Stockpile is a comparatively large stock of essential goods or materials, built up to withstand long holdups or scarcity due to natural calamities, strikes, or war.Inventory is an itemized catalog or list of tangible goods or property,

5

Page 7: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

or the intangible attributes or qualities.

PURCHASING OF GOODS AND SERVICES FROM THE LOCAL SOURCES

We are very lucky nowadays enjoying and benefiting from the advantages that technology brings to our life. When we go to the supermarkets and department stores, lots of goods and services are there available for your needs. With various shopping malls we have in the entire Philippines, you will not think of going abroad to purchase the things that you want.

As an entrepreneur, you must realize that there are things that are grown like the fruits, plants, vegetables and other natural resources. Other things made and manufactured according to the needs and wants of our target market or customers. Likewise, the services are also made and created according to the felt need of the community. Service is more delicate to manage because it is a work that someone has to provide to others with satisfaction.

Why do you prefer to purchase from local sources? Purchasing local goods and services is patronizing our own products resulting to some of the following benefits:

it stops the value of colonial mentality not only among young children;

it gives additional income to the government through tax collection;

it maximizes the use of our natural resources from raw materials to the finished products;

it develops the skills of the Filipino people making them more innovative, creative and productive; and

it gives affordable price for seasonal and quality products, fruits and vegetables.

Factors do you consider when purchasing goods and services from the local sources? Whether you sell PRODUCTS or sell SERVICES as part of your business, skillful, careful and wise purchasing is an important part of your business. It can determine whether or not you will make a profit. Here are some important points to consider when purchasing goods and services:

study the profile of the local producers research on the daily average consumption of the

customers know your customers find out the right place to buy

6

Page 8: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

determine how much to procure check the track record of each supplier get the behavior of the patrons towards the

products and services ensure the sustainability of the items

LET US REMEMBER

In the purchasing activity of the business, the supply of goods and services are vital factors to consider. Supply is the amount of

something the customers can avail from the producers who make or grow goods and services.

LET US APPLY WHAT YOU HAVE LEARNED

Directions: Find out the available goods and services in your community and compare them with other communities using the Venn diagram in any of the following categories:

1. Profile of the Producers 5. Determine How Much to Procure2. Customer’s Average Consumption 6. Check the Track record3. Profile of the Customers 7. Behavior of the Patrons4. Right Place to Buy 8. Sustainability of the items

VENN DIAGRAM

7

SIMILARITIES

DIFFERENCESDIFFERENCES

Page 9: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

HOW MUCH HAVE YOU LEARNED FROM THIS LESSON?

Directions: Write capital letter “B” for benefits and “F” for factors in purchasing activity. Copy and answer this evaluation activity on your quiz notebook.

CRITERIA IN PURCHASING MATERIALS RESPONSE

1. Knowing the customers you are prospecting

2. Having more tax collections

3. Checking the profile of the suppliers

4. Becoming more productive and creative

5. Maximizing the use of the resources

As a young entrepreneur, how can you show the responsible ways of purchasing activities on any of the possible situations you may consider? Write your answer on the blank sheets below.

1. _________________________________________________________________________________________________________________________

2. __________________________________________________________________________________________________________________________

3. __________________________________________________________________________________________________________________________

4. __________________________________________________________________________________________________________________________

5. __________________________________________________________________________________________________________________________

8

Page 10: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

LESSON 2

UTILIZE STANDARD INVENTORY CONTROL OF THE PRODUCTION MATERIAL

WHAT IS THIS LESSON ABOUT?

This lesson deals with the inventory control of production resources. You will learn some ways on how to do the controlling function of a business to ensure enough resources in the making of goods and services.

WHAT WILL YOU LEARN?

At the end of the lesson you should be able to:

1. Determine the correct use of the business stock cards;2. Conduct inventory control of the production materials

for the goods and services businesses using stock card.

LET US STUDY

WORDS TO STUDY Control is an approach or strategy that checks and balance resources needed in the continuous operation of the business.

9

Page 11: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Inventories are stocks of goods and materials available for production or manufacturing.Process refers to the step – by - step manner of operation making product from raw materials into finished outputs.Stocks are the inventory itself in various forms.

CONDUCTING INVENTORY CONTROL OF GOODS AND SERVICES

One delicate task of an entrepreneur is to maintain an inventory control of goods and services. There must be an assurance that the owner will not run out of stock in the production phase of his business. These are much accounted for from raw materials to the finished expected outputs. All related activities of purchasing require control management. There must be no shortages of materials since sources and supplies are locally checked and available for the business.

How do you control inventory of goods and services? It is imperative to determine your production ability, capacity and responsibility. An enterprise must have reliable data about purchasing and manufacturing. A production chart on daily, weekly, monthly, quarterly and yearly basis would help to feed information as basis of parallel consumption of the materials.

The use of stock card is a good strategy to control records of stocks of goods and materials. There are three types of inventories described below:

1. Raw-Materials Inventory (RMI). These are stockpile of materials for

inputs of production. (Examples are textile in roll and threads in boxes stocked in a warehouse for the garment industry.)

2. Work-In-Process Inventory (WIPI). These are partially completed

products requiring further processing including sets of unfinished goods for production process. These unfinished items are for fabrication or for further processing stocked in buffer storage. (Examples are the baby dress garments with body parts only waiting for the sleeve and collar sewing operations)

3. Finished-Goods Inventory. These are the final outputs of production ready for delivery to the market or customers.

10

Page 12: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

(Examples are bags, shoes, t-shirts, computers, calculators, books and others.)

To control is not only to check physically but to list down stocks and balances on a stock card before deciding to do the purchasing activity. It is important to declare the minimum and maximum stock of every item needed in the business operation. The important sources like the suppliers and stores (including business places) are reflected in the stock card including the date of purchase and the price as reference.

In this stock card, it is important to update the daily record to tally the actual stocks against what is reflected on the stock card. This would help an entrepreneur to know what, when, where and how many items are to be purchased at a time to sustain the inventory of goods and services. Every stock card must be a reliable piece of reference. All items received and used should be updated at all times.

Below are examples of stock cards that you may use. Of course, you may also design your own stock card. The stock card-1 is for itemized inventory record per item or individual; while stock card – 2 is for the collective inventory record of all the files of stock card - 1.

TENEZA’S MEAT & FISH PRODUCT COMPANY

S T O C K C A R D - 1(Individual/Per Item)

Stock Card No. Min. Stock Supplier:Item: Max. Stock Re-Order Stock

Date+

Deliveries(qty./units)

- Withdrawals(qty./units)

BALANCE(qty./units)

Withdrawn by:(Person/Department)

TENEZA’S MEAT & FISH PRODUCT COMPANY

S T O C K C A R D - 2(Collective Items from Stock card – 1)

11

Page 13: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Operation Year: ________

Month ItemBeginning Balance

+Total Deliveries-Total Withdrawals

CumulativeBalance

Below is an example of a filled-up stock card,

TENEZA’S MEAT & FISH PRODUCT COMPANY

S T O C K C A R D - 1(Individual/Per Item)

Stock Card No. 1 Min. Stock: 3 bags Supplier: MVC CompanyItem: TVP/Textured Vegetable Protein

Max. Stock: 25 bags Re-Order Stock: 20 bags

Date+

Deliveries(qty./units)

- Withdrawals(qty./units)

BALANCE(qty./units)

Withdrawn by:(Person/Department)

Balance Forwarded 20 bags Ms. Sol Saldivar

2009May 25 5 bags 15 Mr. Rene Delfino

26 8 7 Jun (Mixing Section) 27 4 3 Reynaldo (Receiving Sec)28 20 bags (OR#1221, P750/bag) 23 Leony (MVC Co.)29 5 18 Perchy (DepEd)

June 2 16 2 Marian (Packaging Dept)3 20 bags (OR#1221, P750/bag) 22 Leony (MVC CO.)4 1 21 Jenny (Shipping Dept.)

10 2 19 Via (Manufacturing Dept)11 2 17 Jun (Mixing Section)12 2 15 Reynaldo (Receiving Sec)13 1 14 Via (Manufacturing Dept)14 1 13 Reynaldo (Receiving Sec)15 1 12 Jun (Mixing Section)1617181920

12

Page 14: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

LET US REMEMBER

In the successful inventory control management, always remember to take note of the date, items received and withdrawn, supplier sources, minimum and maximum stocks, re-order stock, the price and other data important in the inventory control. The stock card should always be maintained as a tool or basis to control inventory.

LET US APPLY WHAT YOU HAVE LEARNED

Directions: Following the Stock Card No. 1 (above) for Textured Vegetable Protein of Teneza’s Meat & Fish Product Company, assume business operation and consider your own business reflecting data on the appropriate columns available. Copy the stock card on your activity notebook and use it on your business now.

Name of your business: ________________________________________

S T O C K C A R D - 1(Individual/Per Item)

Stock Card No. Min. Stock: Supplier: Item: Max. Stock: Re-Order Stock:

Date+

Deliveries(qty./units)

- Withdrawals(qty./units)

BALANCE(qty./units)

Withdrawn by:(Person/Department)

Balance Forwarded

HOW MUCH HAVE YOU LEARNED FROM THIS LESSON

Directions: Choose the correct answers from the ITEM BANK below and write your answers on your quiz notebook.

ITEM BANKFinished-Goods Inventory Stock Card – 1Inventory of Goods and Services Stock Card – 2Inventory of Services Stock Card - 3Raw-Materials Inventory Stock Card - 3Work-In-Process Inventory Stock Card – 3

13

Page 15: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

1. These are stockpile of materials for inputs of production. 2. These are partially completed products requiring further processing including sets of unfinished goods for production process. 3. These are the final outputs of production ready for delivery to the

market or customers. 4. This is the stock card for the collective items of stocks.5. It is an inventory tool designed for individual item of stocks.

POST-TEST

Directions: Let us find out how much you already know about production cost and pricing of products or services. Answer the questions below honestly and write the letter of the corresponding answer in your activity notebook.

1. Things or products like apple, cucumber, carrots, tomatoes and corn are examples of what products?

a. grown productsb. manufactured productsc. processed products

2. The dresses we have, bags we use and shoes we wear, are examples of what products?

a. grown productsb. manufactured productsc. processed products

3. Maximized use of the natural resources, nurturing entrepreneurial skills of the Filipino people and additional income of the government through tax collection are examples of what in purchasing activity?

a. benefits of purchasing activityb. factors in purchasing goods and servicesc. guidelines in purchasing process

4. Assessing the profile of the producers and customers and checking the track record of the suppliers are examples of what in purchasing activity?

a. benefits of purchasing activity

14

Page 16: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

b. factors in purchasing goods and servicesc. guidelines in purchasing process

5. These are stock files of materials for the inputs of production.a. finished-goods-inventoryb. raw-materials-inventoryc. work-in-process inventory

6. These are partially completed products requiring further processing including sets of unfinished goods for production process.

a. finished-goods-inventoryb. raw-materials-inventoryc. work-in-process inventory

7. These are the final outputs of production ready for delivery to the customers.

a. finished-goods-inventoryb. raw-materials-inventoryc. work-in-process inventory

8. Stock card #1 has information and data that are categorized in what

cluster of items?a. collectiveb. groupc. individual

9. Stock card #2 has information and data that are categorized in what cluster of items?

a. collectiveb. groupc. individual

10. When you need to purchase or avail of goods and services without the need to leave the country, how do you classify these resources?

a. export resourcesb. imported resourcesc. local resources

15

Page 17: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

RESOURCES:

Individual Stock Card for Inventory Purpose Stock Card for the Collective Items

REFERENCES:

Fajardo, Feliciano R., Entrepreneurship

Jorge A. Camposano, Jorge A., MBA, Ph.D., Entrepreneurship for Modern Business

San Gabriel, Nati C., Business Finance and Business Firms

SEDP, Business Management

Teneza, Celedonia T., Ed.D., Worktext in Technology & Livelihood Education in Business Management III, published by Shekinah Publishing and Printing Press Co., Copyright, 2006

Teneza, Celedonia T., Ed.D., & Baes, Ma. Gradiva S., Worktext in Technology & Livelihood Education in Business Management IV, published by Shekinah Publishing and Printing Press Co., Copyright, 2006

Villanueva, Cristina R. & Rojo, Luz V., Technology & Livelihood Education

Internet Sources:www.wikipedia.comwww.econolib.org

16

Page 18: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

www.brittanica.com

MODULE 3

Engaging in the Purchase of Goods and Services

PRE-TEST/POST-TEST

KEY TO CORRECTION

1. A

2. B

3. A

4. B

5. B

6. C

7. A

17

Page 19: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

8. C

9. A

10. C

ACKNOWLEDGMENT

Copyright Department of Education 2009

This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, May 25 – 30, 2009

This learning instrument was developed by the following personnel:

Dr. Reynaldo M. Valdez

Jones Rural SchoolGroup Leader

Dr. Celedonia T. Teneza

Benigno Aquino High School

Mr. Gilbert CamayangCabrroguiz National School of Arts and Trade

Mr. Alfonso P. Rodriguez Jr.Muntinlupa Business High School

Mr. Fernando C. AgustinBukig National Arts and Trade School

Mrs. Leona M. TomasSan Pedro National High School

18

Page 20: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Writer/Facilitator:

Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Dr. Estrellita Evangelista

Encoder: Mrs. Marisol E. Saldivar

Funding: Department of Education

ACKNOWLEDGMENT

Copyright Department of Education 2009

This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, June 5 -7, 2009

This learning instrument was developed by the following personnel:

Dr. Reynaldo M. Valdez

Jones Rural SchoolGroup Leader

Dr. Celedonia T. Teneza

Benigno Aquino High School

Mr. Alfonso P. Rodriguez Jr.Muntinlupa Business High School

Writer/Facilitator:

Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Dr. Estrellita Evangelista

Encoder: Mrs. Marisol E. Saldivar

19

Page 21: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Funding: Department of Education

ACKNOWLEDGMENT

Copyright Department of Education 2009

This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, July 1to 5, 2009

This learning instrument was developed by the following personnel:

Dr. Reynaldo M. Valdez

Jones Rural SchoolGroup Leader

Dr. Celedonia T. Teneza

Benigno Aquino High School

Writer/Facilitator:

Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Carolina F. Chavez, Aida T. Galuran, Beatriz A. Adriano & Dr. Corazon C. Echano

Encoder: Mrs. Marisol E. Saldivar

20

Page 22: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

Funding: Department of Education

TABLE OF CONTENTS

Module Title: Determining Production Cost Page

and Price of Products and ServiceHow to Use This Module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of Learning Outcome . . . . . . . . . . . . . . . . . . . . . . . . . 2

What Will You Learn What Do You Already Know Pre – Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Lesson 1: Identify Criteria in Purchasing Production Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

What is this Lesson About What Will You Learn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Let Us Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Let Us RememberLet Us Apply What You Have Learned . . . . . . . . . . . . . . . . . . . . 7

How Much Have You Learned . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Lesson 2: Utilize Standard Inventory Control of the Production Materials . . . . . . . . . . . . . . . . . . . . 9

Let Us Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Let Us Remember . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Let Us Apply What You Have Learned . . . . . . . . . . . . . . . . . . . . . 13

21

Page 23: Fnal - Module 3 Engaging in the Purchasing of Goods or Services

How Much Have You Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Post – Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Key to Correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

22